Shares of Virtus Investment Partners (VRTS) plummeted 5.91% in Friday's pre-market trading session following the release of its second-quarter 2025 financial results. The investment management firm reported a decline in revenue and narrowly beat earnings expectations, but fell short of analysts' revenue forecasts.

Virtus reported adjusted earnings per share (EPS) of $6.25 for the quarter ended June 30, slightly above the mean expectation of $6.21 from four analysts. However, this figure represents a decrease from $6.53 per share in the same quarter last year. The company's revenue fell 5.9% to $191.00 million, missing analysts' expectations of $193.20 million. The decline in revenue was primarily attributed to a 4% decrease in average assets under management.

Despite the overall revenue decline, Virtus saw some positive developments. The company's net income attributable to Virtus Investment Partners, Inc. increased significantly to $42.4 million, up 141% from the previous quarter. Operating income, as adjusted, improved to $59.8 million with a margin of 31.3%, up from $54.6 million and 27.6% respectively in the prior quarter. However, these improvements were not enough to offset investor concerns about the company's top-line performance and the challenging market environment for investment managers.