Westwood Holdings Group (WHG) Q3 2024 earnings summary

Executive summary

• Assets under management reached $17.7 billion, the highest in six years, with a robust $2 billion pipeline and strong institutional growth flows over $1 billion year-to-date.

• Revenues increased 8% year-over-year for Q3 2024 to $23.7 million, driven by higher average AUM.

• Net income attributable to shareholders was $0.1 million for Q3 2024, down from $3.4 million in Q3 2023, mainly due to lower other income and higher contingent consideration losses.

• Successful launch and growth of two energy ETFs, with MDST crossing $54 million in AUM, and formation of the Westwood Engineered Beta (WEBs) joint venture to expand ETF offerings.

• Leadership change in wealth management, with Leah Bennett stepping down and executive responsibility reassumed by Brian Casey.

Financial highlights

• Q3 2024 revenues were $23.7 million, up from $22.7 million in Q2 and $21.9 million in Q3 2023.

• Comprehensive income was $0.1 million ($0.01 per share), compared to a $2.2 million loss in Q2 and $3.4 million income in Q3 2023.

• Non-GAAP Economic Earnings were $1.1 million ($0.13 per share), versus a $0.5 million loss in Q2 and $6.5 million in Q3 2023.

• Cash and short-term investments totaled $48.3 million, with a debt-free balance sheet.

• Regular cash dividend of $0.15 per share declared, payable January 3, 2025.

Outlook and guidance

• Management remains confident in current positioning and future growth potential, citing a robust pipeline in SMID and small-cap U.S. value strategies and ongoing product innovation.

• Anticipate continued growth in ETF and custom index solutions, targeting first Managed Investment Solutions client soon.

• Expect continued uncertainty due to political and market concerns but remain focused on high-quality, cash-generative business.