Q2 2026 Westwood Holdings Group Inc Earnings Call Transcript
Key Points
- Westwood Holdings Group Inc (WHG) reported strong revenue growth in Q3 2025, with total revenues of $24.3 million, up from $23.1 million in Q2 and $23.7 million in the prior year.
- The company's Enhanced Midstream Income ETF (MDST) surpassed $150 million in AUM, becoming the second best-selling midstream fund in September and capturing about 30% of midstream product ETF flows.
- Westwood Holdings Group Inc (WHG) launched 11 new sector ETFs through its Webb's Investments platform, expanding its product suite and demonstrating innovation in volatility-managed strategies.
- The company's private fundraising initiative exceeded its 2025 annual goal by 1.5 times through September 30, indicating strong demand for its private investment offerings.
- Westwood Holdings Group Inc (WHG) reported solid long-term performance across multiple strategies, including top-third rankings for SMID cap and multi-asset strategies, and a Morningstar ratings upgrade to four stars for its Income Opportunity Fund.
- The company's balance sheet remains solid with $39.2 million in cash and liquid investments and no debt, supporting financial stability and shareholder returns through a regular cash dividend.
- Westwood Holdings Group Inc (WHG) experienced net outflows of $0.7 billion in AUM during Q3 2025, primarily driven by sub-advisory business rebalancing in the institutional channel.
- The company's large-cap area, which is its lowest fee product, was the main source of outflows, potentially impacting future revenue growth.
- Westwood Holdings Group Inc (WHG) faces challenges from a market environment characterized by below-trend growth, sticky inflation, and elevated valuations concentrated in a few mega-cap tech stocks.
- The company's wealth management business is only on track to meet client retention goals, not growth, indicating potential stagnation in that segment.
- Westwood Holdings Group Inc (WHG) reported a decline in net income from $3.7 million in Q3 2025 to $1 million in Q2 2025, despite higher revenues, due to unrealized depreciation on private investments and higher income taxes.
- The company's ETF platform, while growing, still faces hurdles in gaining access to major wirehouse platforms, with one large platform approval expected only in the next month or two.
Thank you for standing by and welcome to Westwood Holding Group's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. I would now like to hand the call over to Jill Meyer, chief legal counsel. Please go ahead.
Thank you, and welcome to our third quarter 2025 earnings conference call. The following discussion will include forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors which may cause actual results to be materially different from those contemplated by the forward-looking statements. Additional information concerning the factors that could cause such a difference is included in our press release issued earlier today, as well as in our Form
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