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

Financial Performance:

• Total revenues for the quarter were $26.6 million, compared to $25.3 million in Q2 2026 and $24.3 million in Q3 2025.
• Net income was $3.1 million, compared to $1.5 million in Q2 2026 and $3.7 million in Q3 2025.
• Diluted earnings per share (EPS) were $0.34, compared to $0.17 in Q2 2026 and $0.41 in Q3 2025.
• Non-GAAP Economic Earnings were $4.4 million, compared to $3.0 million in Q2 2026 and $5.7 million in Q3 2025.
• Non-GAAP Economic EPS was $0.48, compared to $0.33 in Q2 2026 and $0.64 in Q3 2025.
• Cash and investments held were $65.0 million as of September 30, 2026.
• Stockholders' equity totaled $129.1 million as of September 30, 2026.
• For the nine months ended September 30, 2026, total revenues were $76.9 million compared to $70.7 million in the prior year period.
• Net income for the nine months ended September 30, 2026, was $5.4 million compared to $5.2 million in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $9.0 million, compared to $10.9 million in the prior year period.

Guidance and Future Outlook:

• Management stated the firm is well-positioned to deliver long-term value for clients and shareholders, citing continued momentum in the private capital business and a robust pipeline across 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 assets under management (AUM) and $1.0 billion in assets under advisement (AUA).
• The ETF platform surpassed $430 million in assets at quarter-end.
• The firm launched PWRX, the Enhanced Power and Infrastructure ETF, as the first new ETF on the Texas Stock Exchange.
• 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.
• Private capital business closed $30 million in commitments in the quarter and nearly $200 million year-to-date.
• Defined contribution plans were funded with over $450 million in SMidCap.
• Revenue growth was driven by higher private capital distributions, continued growth in ETFs, and private energy secondaries funds.

Market and Competitive Landscape:

• The firm operates as a boutique asset management firm offering actively-managed and outcome-oriented investment strategies, along with trust and wealth services.
• The firm highlighted its origins as a woman-founded firm and its commitment to diverse insights.

Risks and Challenges:

• Q3 2026 net income was unfavorably impacted by $1.7 million in one-time severance-related compensation expenses, higher professional services expenses, and higher income taxes.
• Forward-looking statements note risks including competitive fee pressures, activist stockholder actions, return of capital distributions, regulatory changes, cyber security risks, litigation risks, and dependence on a small number of customers.

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 "client-first approach" and a "flexible and agile approach to investing" to adapt to changing markets.

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 firm will host a conference call on November 5, 2026, at 4:30 p.m. Eastern time to discuss results.
• The company is a NYSE-listed firm (Ticker: WHG).