Silvercrest Asset Management Group Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $32.7 million, a 4.5% increase year-over-year from $31.3 million; for the nine months ended September 30, 2026, revenue was $94.9 million, a 1.6% increase year-over-year from $93.4 million.
• Consolidated net income for the quarter was $1.2 million (3.7% margin) compared to $1.1 million (3.5% margin) in the prior year period; for the nine months, net income was $2.2 million (2.3% margin) compared to $8.2 million (8.7% margin).
• Net income attributable to Silvercrest was $0.6 million ($0.08 per share) for the quarter and $1.1 million ($0.14 per share) for the nine months.
• Adjusted EBITDA was $4.4 million (13.5% margin) for the quarter, down from $4.5 million (14.5% margin) in the prior year; for the nine months, Adjusted EBITDA was $11.6 million (12.2% margin), down from $16.8 million (18.0% margin).
• Adjusted net income was $1.9 million ($0.16 per share) for the quarter and $4.6 million ($0.38 per share) for the nine months.
• Total expenses were $30.8 million for the quarter (up 2.9% year-over-year) and $90.8 million for the nine months (up 9.2% year-over-year).
• Compensation and benefits expense was $21.3 million for the quarter (down 2.1% year-over-year) and $62.9 million for the nine months (up 5.9% year-over-year), representing 66.3% of revenue for the nine-month period.
• General and administrative expenses were $9.6 million for the quarter (up 16.0% year-over-year) and $27.8 million for the nine months (up 17.2% year-over-year).
• Cash and cash equivalents were $27.8 million at September 30, 2026, compared to $44.1 million at December 31, 2025.
• Borrowings under the credit facility were $9.0 million at September 30, 2026, compared to $4.0 million at December 31, 2025.
• Total equity was $45.5 million at September 30, 2026.

Guidance and Future Outlook:

• Management expects administrative and legal costs associated with recent infrastructure and regulatory initiatives to decline and begin contributing revenue.
• The firm plans to adjust its reporting of non-discretionary AUM at the end of the first quarter of 2027, likely eliminating the category, which will substantially lower reported non-discretionary and total AUM on a one-time basis without a revenue effect.
• The compensation ratio is expected to remain elevated as the firm's significant investment program matures.
• The firm intends to make imminent equity grants to professionals to align their long-term interests with shareholders.

Business Segments and Product Lines:

• Discretionary assets under management (AUM) decreased $939.2 million during the quarter to $23.8 billion, primarily due to weaker markets; $753.1 million of this change had a revenue effect.
• Total AUM stood at $36.2 billion, comprising $23.8 billion in discretionary AUM and $12.4 billion in non-discretionary AUM.
• Net flows for the quarter were essentially flat at $58.3 million, driven by $182.2 million in organic new client accounts (the best quarter of 2026) and a $373.0 million follow-on investment in the global value equity strategy, offset by seasonal high net worth withdrawals and institutional outflows.
• Year-to-date capital growth contributed $1.7 billion in AUM, following unusually strong second-quarter markets.
• The firm received its full MiFID license through the Central Bank of Ireland and opened its Dublin office to serve high net worth and institutional clients in Europe.
• The institutional pipeline has grown substantially, particularly in Global and International Equity strategies, which continue to deliver exceptional performance.
• The firm has achieved important third-party ratings for its strategies and vehicles and continues to seek additional ratings from major global consultants.

Market and Competitive Landscape:

• Discretionary AUM decreased 2.1% year-over-year to $23.8 billion, while total AUM decreased 3.7% year-over-year to $36.2 billion.
• The decrease in total AUM was attributable to net client outflows of $2.5 billion, partially offset by market appreciation of $1.1 billion year-to-date.
• For the quarter, total AUM decreased due to market depreciation of $0.9 billion, partially offset by net client inflows of $0.1 billion.
• Discretionary AUM decreased 3.6% sequentially to $23.8 billion, driven by market depreciation of $0.8 billion and net client outflows of $0.1 billion.
• The firm's proprietary equity strategies have shown performance against benchmarks, including the Large Cap Value Composite (11.3% 1-year annualized vs. 23.8% for Russell 1000 Value) and Global Value Opportunity Composite (26.8% 1-year annualized vs. 20.3% for MSCI ACWI Value).

Risks and Challenges:

• Forward-looking statements note risks including incurrence of net losses, fluctuations in quarterly and annual results, and adverse economic or market conditions.
• Risks include potential declines in assets under management, inflows, and outflows, as well as the ability to retain clients and maintain fee structures.
• Challenges include the cost of complying with current and future regulations, defending against investigations or litigation, and operational safeguards against data security breaches or employee misconduct.
• The firm faces risks related to the cost of implementing its growth strategy and the ability to hire and retain qualified investment professionals.

Management Commentary and Tone:

• Management stated the firm continued strategic initiatives and progress on its two-year plan.
• Management emphasized that earnings and Adjusted EBITDA reflect the deliberate cost of the most significant investment program in the firm's history.
• Management noted that intellectual capital is the firm's most important resource and that attracting and motivating professionals is fundamental to growing the firm and compounding value.
• The tone regarding the institutional pipeline was positive, describing it as "robust" and noting improved quality with more possible AUM and opportunities.

Other Key Points:

• The Board of Directors declared a quarterly dividend of $0.21 per share of Class A common stock, payable on or about December 18, 2026, to stockholders of record as of December 11, 2026.
• Shareholders approved an increase in the number of shares issuable under the equity incentive plan.
• The firm has offices in New York, Boston, Virginia, New Jersey, California, Wisconsin, Atlanta, Singapore, and Dublin.
• The firm is adjusting its reporting methodology for non-discretionary AUM to provide a clearer picture of the discretionary AUM and flows that drive the business.