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Nov 5, 2026, 4:13 PM ETFinancial Services

Westwood Holdings Group, Inc. — Third Quarter 2026 Earnings Summary

WESTWOWESTWOOD HOLDINGS GROUP INC
Source

Financial Performance

  • Quarterly revenues totaled $26.6 million, compared to $25.3 million in the second quarter of 2026 and $24.3 million in the third quarter of 2025.
  • Net income was $3.1 million, compared to $1.5 million in the second quarter of 2026 and $3.7 million in the third quarter of 2025.
  • Diluted earnings per share (EPS) were $0.34, compared to $0.17 in the second quarter of 2026 and $0.41 in the third quarter of 2025.
  • Non-GAAP Economic Earnings were $4.4 million ($0.48 per share), compared to $3.0 million ($0.33 per share) in the second quarter of 2026 and $5.7 million ($0.64 per share) in the third quarter of 2025.
  • For the nine months ended September 30, 2026, total revenues were $76.9 million, compared to $70.7 million for the same period in 2025.
  • Net income for the nine months ended September 30, 2026, was $5.4 million, compared to $5.2 million in the prior year period.
  • Non-GAAP Economic Earnings for the nine months ended September 30, 2026, were $10.2 million ($1.12 per share), compared to $11.0 million ($1.25 per share) in the prior year period.
  • Cash and investments held were $65.0 million as of September 30, 2026.
  • Stockholders' equity totaled $129.1 million as of September 30, 2026.
  • Total expenses for the quarter were $25.2 million, driven by employee compensation of $15.6 million and professional services of $2.4 million.
  • Net cash provided by operating activities for the nine months ended September 30, 2026, was $9.0 million.

Guidance and Future Outlook

  • Management stated the firm is well-positioned to deliver long-term value for clients and shareholders.
  • The company cited continued momentum in its private capital business and a robust pipeline across its Value, Managed Investment Solutions, and Energy strategies.

Business Segments and Product Lines

  • Firmwide assets under management and advisement totaled $17.1 billion, consisting of $16.1 billion in AUM and $1.0 billion in AUA.
  • The ETF platform surpassed $430 million in assets at quarter-end.
  • The company launched PWRX, the Enhanced Power and Infrastructure ETF, noted as the first new ETF on the Texas Stock Exchange.
  • The company closed $30 million in private capital commitments for the quarter and nearly $200 million year-to-date.
  • Defined contribution plans were funded with over $450 million in SMidCap investments.
  • Investment strategies beating their primary benchmarks included Select Equity, Multi-Asset Income, Real Estate Income, and Tactical Growth SMA.
  • AllCap Value, Select Equity, and Multi-Asset Income posted top quartile rankings versus peers; Real Estate Income posted top decile rankings versus peers.
  • Revenue growth was driven by higher private capital distributions, continued growth in ETFs, and private energy secondaries funds.

Market and Competitive Landscape

  • The firm highlighted its status as a woman-founded firm with a focus on diverse insights.
  • The company noted competition in the investment management industry as a risk factor.
  • The firm operates as a boutique asset management firm serving institutional, intermediary, and private wealth clients.

Risks and Challenges

  • Net income for the quarter was impacted by $1.7 million in one-time severance-related compensation expenses.
  • Higher professional services expenses and higher income taxes contributed to the year-over-year decline in net income.
  • Forward-looking statements note risks including competitive fee pressures, risks associated with activist stockholders, and the potential for returns of capital in dividends.
  • Other risks include concentration of revenues in a small number of customers, thin trading of the stock, and dependence on subsidiary operations.

Management Commentary and Tone

  • Brian Casey, CEO, expressed pride in the quarter's progress, specifically highlighting the PWRX launch and the ETF platform surpassing $430 million in assets.
  • Management emphasized a "firm-first approach" and a commitment to delivering bespoke investment strategies.
  • The tone reflected confidence in the firm's positioning to deliver long-term value despite one-time expenses.

Other Key Points

  • A cash dividend of $0.15 per common share was declared, payable on January 4, 2027, to stockholders of record on December 1, 2026.
  • The company will host a conference call at 4:30 p.m. Eastern time on November 5, 2026, to discuss results.
  • Stock-based compensation expense for the quarter was $1.0 million.
  • The company reported a net change in unrealized appreciation on private investments of $2.9 million for the quarter.
  • Total assets were $162.8 million as of September 30, 2026, compared to $162.3 million as of December 31, 2025.