• Total Revenue: $23.3 million for Q1 2025, compared to $25.6 million in Q4 2024 and $22.7 million in Q1 2024.
• Net Income: $0.5 million or $0.05 per share for Q1 2025, compared to $2.1 million or $0.24 per share in Q4 2024.
• Non-GAAP Economic Earnings: $2.5 million or $0.29 per share for Q1 2025, compared to losses of $3.4 million or $0.39 per share in Q4 2024.
• Assets Under Management and Advisement: $18 billion at quarter end, with $17 billion under management and $1 billion under advisement.
• Institutional Assets: $9 billion or 53% of total assets under management.
• Wealth Management Assets: $4.1 billion or 24% of total assets under management.
• Mutual Fund Assets: $3.9 billion or 23% of total assets under management.
• Net Inflows: $0.6 billion in assets under management during the quarter.
• Cash and Liquid Investments: $26.9 million at quarter end.
• Dividend: Regular cash dividend of $0.15 per common share payable on July 1, 2025.

• Warning! GuruFocus has detected 8 Warning Sign with WHG.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Westwood Holdings Group Inc (NYSE:WHG) successfully launched the Westwood LBRTY Global Equity ETF, offering a unique approach to global equity investing.
• The company's first ETF, Westwood Salient Enhanced Midstream Income, reached its 1-year anniversary with strong traction among income-seeking investors.
• WHG won a significant sub-advisory mandate with nearly $1 billion in small-cap value, enhancing its institutional channel performance.
• The Texas Stock Exchange, in which WHG is an investor, made progress with its Form 1 application for registration as a national securities exchange.
• WHG's investment strategies continue to demonstrate strength, with many ranking in the top third or top decile among peers over various periods.

Negative Points

• Total revenues for the first quarter of 2025 decreased compared to the fourth quarter of 2024 due to lower performance-based fees.
• First quarter income was significantly lower than the previous quarter, impacted by higher operating expenses.
• The US stock market experienced a sharp decline, affecting overall market sentiment and potentially impacting WHG's performance.
• WHG's Wealth Management business saw net outflows of $157 million in the first quarter of 2025.
• Despite positive developments, the company faces continued market uncertainty driven by potential policy changes and economic growth concerns.

Q & A Highlights

Q: Congratulations on the mandate win. Could you provide more details on the flows in that strategy and the opportunity going forward? Also, can this win be leveraged for other mandates? A: Brian Casey, CEO: Thank you, Mac. The win in our SmallCap product is a sub-advisory mandate with a large, well-recognized firm. Such headlines help in our marketing efforts. Our pipeline remains robust, exceeding $1 billion, particularly in our SMid product, indicating continued growth potential.

Q: On the MDST growth, you mentioned qualification for national platforms. Could you elaborate on the next steps and growth expectations for these vehicles? A: Brian Casey, CEO: We've made significant progress, now being on 4 or 5 platforms, and are in discussions with larger platforms, including a major wire. Success here could lead to exponential growth for MDST, and we're very excited about this potential.

Q: Could you discuss the impact of the first quarter's seasonal expenses and your growth pathways? A: Brian Casey, CEO: The first quarter is challenging due to taxes from stock vesting, bonuses, and other expenses, without performance fees like in Q4. However, we're optimistic about our growth pathways, including a strong pipeline, expanding ETF business, and promising MIS team prospects.

Q: What are the expectations for the ETF business and its impact on growth? A: Brian Casey, CEO: Our ETF business is gaining momentum, with MDST now on several platforms and more approvals in process. This expansion is a key growth driver, and we're seeing significant interest in our offerings, particularly in the energy sector.

Q: How is the wealth management business adapting to current market conditions? A: Brian Casey, CEO: We're enhancing our wealth management business with new technology, personnel, and processes to improve competitiveness. Despite net outflows, we're on track to meet our gross inflow targets for the year, supported by cost reductions and increased efficiency from our new CRM system.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.