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Virtus Investment Partners Announces Financial Results for Third Quarter 2026

VRTS
  • Virtus Investment Partners reported diluted Earnings Per Share of $3.26 for the three months ended September 30, 2026, compared to $4.65 in the prior year period.
  • Adjusted diluted Earnings Per Share reached $5.86, representing a 6% increase from $5.54 in the second quarter of 2026.
  • Total sales for the quarter were $4.3 billion, down 29% from $6.1 billion in the prior quarter, driven by declines in institutional, retail separate account, and open-end fund sales.
  • Net asset flows totaled ($6.1) billion, a widening of outflows from ($5.6) billion in the prior quarter, with significant outflows in quality-oriented equity strategies partially offset by positive flows in ETFs and tender offer funds.
  • Assets Under Management (AUM) stood at $141.4 billion at quarter-end, a 7% decrease from $152.2 billion in the prior quarter due to market performance and net outflows across retail, institutional, U.S. retail funds, and global funds.
  • GAAP operating income was $34.3 million, a 27% decline year-over-year, while adjusted operating income rose 8% sequentially to $51.8 million due to lower employment expenses.
  • GAAP operating expenses decreased 4% year-over-year to $163.2 million, primarily driven by lower employment expenses following a discrete expense item in the prior quarter.
  • Net income attributable to Virtus Investment Partners was $22.1 million ($3.26 per share), a 31% drop from $31.9 million in the same period last year.
  • Adjusted net income was $39.7 million ($5.86 per share), up 6% from the prior quarter, reflecting higher operating income despite lower interest and dividend income.
  • The effective tax rate increased to 34% from 16% in the prior quarter, reflecting a shift from unrealized gains to unrealized losses on investments.
  • Gross debt decreased to $411 million from $427 million in the prior quarter, primarily due to a $15 million repayment on the revolving credit facility.
  • The company repurchased 64,666 shares for $10.0 million during the quarter and increased its quarterly dividend by 2% to $2.45 per share.
  • Cash and cash equivalents increased to $187.2 million from $176.2 million, attributed to cash earnings exceeding shareholder returns and debt repayments.