[Management View]
Westwood Holdings Group reported total revenues of $24.3 million for Q3 2025, driven by higher average assets under management. The firm emphasized its strategic priorities, including expanding its ETF platform, achieving significant milestones in private fundraising, and launching new sector ETFs.

[Outlook]
The company provided performance guidance indicating strong momentum in its ETF and private fundraising businesses. Future plans include expanding distribution channels, particularly gaining access to a major wirehouse platform, and continuing to focus on cost control and operational efficiencies.

[Financial Performance]
Westwood Holdings Group reported a YoY increase in total revenues to $24.3 million from $23.7 million and a QoQ increase from $23.1 million. Net income rose to $3.7 million, or $0.41 per share, compared to $1 million, or $0.12 per share, in the prior quarter. Non-GAAP economic earnings were $5.7 million, or $0.64 per share, versus $2.8 million, or $0.32 per share, in the second quarter.

[Q&A Highlights]
Question 1: Oh, good afternoon, gentlemen, and congratulations on the ETF success. My question is, if you could just talk about how you're leaning into the success to leverage it further at this point? It seems like you're accelerating your inflows. So what are you doing to make that even more fruitful? And is there any capacity constraint with respect to the capital coming in and investing it?
Answer: Good afternoon, Macrae. Thanks for your question. Yeah, so we have worked really hard to grow our ETF business, and we've done it through a lot of the traditional channels. And as you know, each of the various platforms have different thresholds that you have to meet in order to get your ETF onto the platform. And some of them have fairly low bars where you need $25 million in assets, a certain number of shares traded per day. And some have very high bars with a high level of assets and a lot of shares traded per day. So we've been doing it that way, and we've got, of course, our distribution team is out calling on both RIAs and the platforms. So we've had some success there, and I'm really pleased to report that we are very close to gaining access to one of the largest wirehouse platforms in the world. And we've worked really hard to get there, and we feel confident that will happen over the next month or two.

[Sentiment Analysis]
The tone of the analysts was positive, focusing on the success of the ETF business and future growth prospects. Management expressed confidence in their strategic initiatives and the strength of their forward pipeline.

[Quarterly Comparison]
| Key Metrics | Q3 2025 | Q2 2025 | Q3 2024 |
|----------------------------|---------------|---------------|---------------|
| Total Revenues | $24.3 million | $23.1 million | $23.7 million |
| Net Income | $3.7 million | $1 million | $100,000 |
| Non-GAAP Economic Earnings | $5.7 million | $2.8 million | $1.1 million |
| AUM | $17.3 billion | - | - |
| AUA | $1 billion | - | - |

[Risks and Concerns]
Management acknowledged disappointing outflows concentrated in lower-fee, large-cap strategies. Institutional channel had negative net flows due to sub-advisory business rebalancing.

[Final Takeaway]
Westwood Holdings Group demonstrated strong financial performance in Q3 2025, driven by higher average assets under management and significant gains in their ETF and private fundraising businesses. Despite some outflows in lower-fee strategies, the company remains optimistic about its growth prospects, supported by a robust pipeline and strategic expansion initiatives. The firm’s focus on cost control and operational efficiencies is expected to underpin future performance.