Westwood Holdings Group (WHG) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw net income rise to $3.7 million and revenues reach $24.3 million, with strong investment performance and several strategies achieving top quartile or decile peer rankings.

• Assets under management and advisement totaled $18.3 billion (AUM: $17.3B, AUA: $1.0B) as of September 30, 2025, with net outflows of $0.7 billion offset by market appreciation.

• MDST ETF surpassed $150 million in assets, capturing 30% of September midstream ETF flows, and private fundraising exceeded annual goals by 1.5x.

• Eleven new sector ETFs were launched, and the Income Opportunity Fund received a Morningstar upgrade to four stars.

• The firm is a founding investor in the Texas Stock Exchange and celebrated 42 years as a female-founded company.

Financial highlights

• Q3 2025 revenues were $24.3 million, up from $23.1 million in Q2 and $23.7 million in Q3 2024, driven by higher average AUM.

• Net income was $3.7 million ($0.41/share), up from $1 million ($0.12/share) in Q2 and $0.1 million in Q3 2024.

• Non-GAAP Economic Earnings were $5.7 million ($0.64/share), up 427% year-over-year.

• Advisory fees grew 6% year-over-year to $18.9 million; trust fees were flat at $5.4 million.

• Cash and liquid investments totaled $39.2 million at quarter end; no debt outstanding.

Outlook and guidance

• Management expects to win more SMidCap mandates for Defined Contribution Plans and sees continued stability with existing clients.

• Private fundraising and ETF launches are expected to drive further growth, with a focus on high-quality, value-oriented investments.

• Current cash and short-term investments plus operating cash flow are expected to be sufficient for at least the next twelve months.

• Forward-looking statements highlight expectations for future financial position and operations, with caution regarding risk factors.