WHG

Image source: The Motley Fool. Saturday, Aug. 8, 2026 at 4:30 p.m. ET Managing Director, Head of Legal and of Compliance - John Ehinger Chief Executive Officer - Brian Casey Chief Financial Officer - Terry Forbes Operator: Good day. Thank you for standing by. Welcome to the second quarter 2026 Westwood Holdings Group earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentations, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one again. Please be advised that today's conference call is being recorded. I would now like to turn the conference over to your first speaker today, John Ehinger, Managing Director, Head of Legal and of Compliance. John Ehinger: Thank you. Welcome to our second quarter 2026 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 10-Q for the quarter ended June 30th, 2026, that will be filed with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You are cautioned not to place undue reliance on forward-looking statements. In addition, in accordance with SEC rules concerning non-GAAP financial measures, the reconciliation of our economic earnings and economic earnings per share to the most comparable GAAP measure is included at the end of our press release issued earlier today. On the call today, we have Brian Casey, our Chief Executive Officer, and Terry Forbes, our Chief Financial Officer. I will now turn the call over to Brian Casey. Brian Casey: Good afternoon. Thanks for joining us for Westwood's second quarter 2026 earnings call. I'm very pleased to share our results and key developments from the past quarter, as well as our outlook for the remainder of the year. Before we dive into the details, I'd like to highlight several key points from the quarter. Our ETF platform surpassed $400 million in assets in July. We closed $147 million in new private capital commitments. The multi-asset and wealth team strategies posted strong long-term rankings. We're celebrating our 24th anniversary as a public company. After a shaky start, equity markets rebounded sharply in the second quarter, with the S&P 500 gaining more than 15%, its second strongest quarterly advance since 2020. The Russell 2000 rose more than 21%. Mega cap technology and AI infrastructure stocks led much of the advance in April and May, though market leadership broadened out later on to include industrials, healthcare, and financials. A remarkably resilient economy with a 2.1% GDP growth and historically low unemployment rate bolstered investor sentiment even as inflation, driven largely by rising energy prices tied to the Middle East conflict, reemerged as the key concern and pushed bond yields higher. Turning to long-term performance, our results over the three-year and longer periods are mixed across strategies with some notable bright spots. Within our U.S. value strategies, results have been mixed over longer periods and softer over recent periods. However, our midcap strategy ranked in the top third over three- and five-year periods among institutional peers. Our since inception performance and peer rankings remain intact for large cap, midcap, and small cap. Our multi-asset strategies have delivered strong long-term results with more than half of them ranking in the top third or better against peers over three-year and longer periods. Multi-Asset Income scores 12% or better peer rankings for trailing three- and five-year periods, and in the top 1% for seven- and 10-year periods. Our Income Opportunity strategy ranked in the top third among peers over multiple periods. Our MLP focus strategies have done particularly well with MLP SMA and MLP and energy infrastructure achieving top half or better peer rankings over longer-term periods, including a top decile ranking since inception for MLP SMA. Wealth team strategies have also performed well long term, with enhanced balance ranking in the top third over multiple periods, and thematic innovation and growth has achieved a top 13% ranking since inception. Despite U.S. Value's recent short-term underperformance, we believe in the durability of our investment approach regardless of the macro backdrop. Valuations have risen from levels seen earlier in the year, equity leadership continues to broaden beyond mega cap technology into more defensive, quality-oriented sectors such as industrials, healthcare, and financials. Whether corporate earnings and economic growth surprise to the upside or inflation concerns and geopolitical developments cause investors to reassess their appetite for risk, we believe our disciplined focus on high-quality businesses, those with strong free cash flow, recurring earnings, low leverage, and attractive valuations positions us well to deliver strong long-term results. This is particularly true within the small cap space, where limited sell side coverage continues to reward fundamental bottom-up stock selection. Westwood experienced net outflows this quarter, notably from U.S. value institutional clients. These were anticipated as core equity allocations continued to evolve toward lower fee passive options such as ETFs. To take advantage of this shift in investor preference, we have been strategically positioning the firm for a number of years by investing in three growth areas: ETFs, alternatives, and Managed Investment Solutions. I'm very pleased to report that we're seeing meaningful pipeline growth across all three of these areas. Our institutional channel, which includes our private capital business, generated $382 million in gross sales during the quarter, with net outflows of $1.3 billion. Outflows were concentrated in our legacy large cap value business, which has been impacted by performance challenges and industry dynamics as investors increasingly shift to passive ETFs. Small cap value also experienced outflows. These were primarily related to a single client consolidating its small- and mid-cap allocations into a combined SMID cap mandate. As a result, assets were redeemed from small cap value in June. Our client has already funded a significantly larger allocation into our SMID cap strategy in July. Managed Investment Solutions clients funded new accounts during the quarter, which brings year-to-date flows to $350 million. Our institutional pipeline remains robust across value and energy strategies, with a significant increase in Managed Investment Solutions, where four new opportunities were added in the second quarter alone. Private Capital completed a very successful co-investment fundraising effort of nearly $147 million for the quarter. Our private markets platform is attracting substantial interest across RIAs, family offices, and independent advisors, building on the brand recognition established through previous successful fundraisers. Looking ahead, our private capital platform is well-positioned to attract institutional investors following recent enhancements to our personnel and organizational structure. We anticipate receiving continued mandates in SMID cap for defined contribution plans driven by the largest national consultants. We continue to have constructive conversations regarding our Managed Investment Solutions capability with consultants and prospective investors. Our mutual fund and ETF flows for the quarter included $168 million in gross sales and net outflows of $165 million. Our Enhanced Midstream, MDST, and Enhanced Energy Income, WEEI ETFs, exceed $370 million in combined assets and continue to win approvals from major national platforms. While our Enhanced Income Opportunity ETF, YLDW, is approaching $35 million in assets and is also beginning to gain platform approvals. Midstream Income also posted a strong Morningstar peer ranking of 20th percentile for the period. Energy and real asset strategies actually led the firm in both gross and net sales during the quarter. Our ETF suite continues to gain momentum. We expect our platform availability to increase as assets grow. Finally, our broad market strategies are also gaining momentum as investors refocus on risk mitigation amid increased market volatility. Our wealth management team continues to build momentum as we strengthen our multifamily office platform. Client engagement remained elevated through the first half of this year, especially over the summer months, which reflects ongoing market uncertainty and continued demand for proactive planning and thoughtful portfolio oversight. Our advisors have maintained a disciplined, long-term approach to asset allocation, which has helped reinforce client confidence during periods of volatility, while conversations with clients increasingly focus on holistic planning, including tax positioning, liquidity management, and coordination with trust structures, areas where our integrated model continues to resonate. Operationally, we made further progress on process standardization and cross-functional alignment across our advisory, client service, and trust teams, improving scalability while enhancing the overall client experience. We're also evaluating our technology to ensure that we have a solid foundation going forward. Business activity remains steady. We continue to prioritize high-quality relationships with long-term potential. Looking ahead, we're focused on refining internal processes, enhancing reporting and communication, and strengthening collaboration to support sustainable growth. We've just entered into a strategic partnership with ETF Capital Markets Advisors, led by Nicholas Phillips, to provide dedicated capital markets consulting in support of our growing ETF platform. Nicholas has more than 25 years of ETF market making and capital markets experience and will advise on trading, execution, and market structure across our ETF lineup, including our Enhanced Income Series and WEBs Defined Volatility ETFs, with the goal of enhancing liquidity, pricing, and execution quality for our investors. We are very pleased with our success with our Enhanced Income Series ETFs. They have received tremendous interest from advisors and investors, and we are naturally very excited that our ETF platform has just crossed $400 million in assets under management. Our ETFs offer investors attractive income, combining dividend yield and options premiums from covered calls, while also offering the potential for asset appreciation. Our latest edition, the Enhanced Income Opportunity ETF, YLDW, which we launched at the end of 2025, offers investors current income and capital appreciation from a variety of asset classes and has gotten off to a great start. We currently have three ETFs in the Enhanced Income Series. The next edition of the series, the Westwood Salient Enhanced Power & Infrastructure ETF, or PWRX, Power-X, will be truly historic in that it will be the first new ETF to list on the Texas Stock Exchange in mid-September. We believe that the TXSE, located right in our own backyard in Dallas, Texas, is the ideal exchange to list our fund. Texas is widely regarded as the energy capital of the world. Our PWRX investment team, located in Houston, has decades of combined experience in managing investments along the energy value chain and deep relationships with key players in the energy space. Texas is on track to be one of the largest data center hubs in the U.S. due to its vast land availability, favorable tax incentives, and robust energy infrastructure. We have a front row seat to witness the convergence of the explosive growth in AI data center capacity and the resulting tailwinds for power demand. Westwood has deep roots in Texas, and many of the Power-X ETF holdings will be companies we know well and in which we have invested in for years. The opportunity to bring the Power-X ETF to market with our partners at TXSE was a logical choice. TXSE has built its exchange from the ground up, and they've developed an industry-leading lead market maker program, offering significant incentives that will lead to excellent market quality, liquidity, and better execution outcomes for investors in PWRX. Our private capital business has closed $147 million in new commitments across our energy secondaries co-investment platform. We've added four new members to our energy secondaries investment team and three members to our private capital operations team. We continue to build out our private capital infrastructure, including new vendor and technology relationships. Finally, this quarter marks Westwood's 24th anniversary as a publicly traded company. We're very grateful to our shareholders, many of whom have supported us for years, for their continued confidence and partnership as we build for the future. To summarize, Westwood continued to execute against our long-term strategy, growing our ETF and private capital platforms, while our multi-asset and wealth team strategies posted strong results. While we saw outflows in select institutional value strategies, our pipeline across Managed Investment Solutions, energy, and selected value strategies remains robust. As we mark our 24th anniversary as a public company, we remain confident that we have positioned Westwood well to deliver long-term value for our clients and shareholders. Thank you for your continued support and confidence in Westwood. I'll now turn the call over to our CFO, Terry Forbes. Terry Forbes: Thanks, Brian, good afternoon, everyone. Today, we reported total revenues of $25.3 million for the second quarter of 2026, compared to $25 million in the first quarter and $23.1 million in the prior year's second quarter. Second quarter revenues were consistent with the first quarter. Second quarter revenues were higher than last year's second quarter due to continued growth in our business, particularly from our ETF and private energy secondaries funds. Our second quarter income of $1.5 million, or $0.17 per share, compared with $0.8 million or $0.09 per share in the first quarter on lower compensation expenses, offset by higher income taxes and first quarter recognition of gains from our investment in a private bank. Non-GAAP economic earnings were $3 million, or $0.33 per share in the current quarter versus $2.8 million or $0.31 per share in the first quarter. Our second quarter income of $1.5 million or $0.17 per share compared favorably to last year's second quarter of $1 million or $0.12 per share due to higher revenues, partially offset by higher compensation and professional services expenses and higher income taxes. Economic earnings for the quarter were $3 million, or $0.33 per share, compared with $2.8 million or $0.32 per share in the second quarter of 2025. Firm-wide assets under management and advisement totaled $17.9 billion at quarter end, consisting of assets under management of $17 billion and assets under advisement of $1 billion. Assets under management consisted of institutional assets of $8.3 billion or 49% of the total, wealth management assets of $4.5 billion or 26% of the total, and mutual fund and ETF assets of $4.2 billion or 25% of the total. Over the quarter, our assets under management experienced net outflows of $1.6 billion and market appreciation of $1.2 billion, and our assets under advisement experienced market appreciation of $53 million and net outflows of $4 million. At quarter end, we had cash and investments totaling $56.5 million. Happy to announce that our Board of Directors approved a regular cash dividend of $0.15 per common share, payable on October 1st, 2026, to stockholders of record on September 1st, 2026. That brings our prepared comments to a close. We encourage you to review our investor presentation we have posted on our website reflecting quarterly highlights as well as discussion of our business, product development, and longer-term trends in revenues and earnings. We thank you for your interest in our company, we'll open the line to questions. Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please stand by while we compile the Q and A roster. Our first question is from Mac Sykes of Gabelli Funds. Your line is now open. Mac Sykes: Oh, good afternoon, and congrats on the product innovation. Brian Casey: Thanks, Mac. Terry Forbes: Thanks, Mac. Mac Sykes: I guess I'd like to get your thoughts a little bit more on the trend in your average fee rate for the firm. I mean, AUM is essentially flat, but you seem to be adding nicely to the ETF bucket, the private capital. Within that mix, it does seem to be additive to the overall fee rate. I was sort of curious where you could see that going and the lift there, as the mix gets more beneficial. For my second question, if you could just remind us, is there embedded carry or performance fees in the secondaries business, and is there locks associated with that in Q4 or is that kind of on a rolling basis? Thank you. Brian Casey: Great. Well, first of all, on the fees, we have traditionally had asset-based fees over the course of 41 years. Over the last couple of years, we have added both ETFs and private capital to the mix. ETFs, in fact, carry a little bit higher fee. When you're building those businesses and building those ETFs, they have to get to a point of scale where you begin to realize that full fee. In the early years, you'll have some fee waivers in order to keep the expense ratio down. I expect as we grow the ETF assets, that average fee will grow as well. As far as the private capital, we could not be more excited about where we are today. We are over half a billion in commitments now to our private capital funds, and those carry an annual management fee of at least 1% and as high as 1.5%. More importantly, down the road, we hope to achieve carry, and the carry is 10% over an 8% pref or 15% over an 8% pref. So far, the investments that we have made in our funds have performed exceptionally well. You have to remember that what we are buying in a lot of these funds are energy secondaries, where we are trying to buy 70% LP interests and 30% GP-led and co-investments at, on average, $0.70 on the dollar. We're taking fresh capital and putting it into something that is already at a nice discount. We have an energy team in Houston that has been managing energy assets for two decades, so they're able to evaluate quickly the opportunities that are presented to us. We have had some great success in the investments that we've chosen thus far, and we're very much excited about the upcoming years in terms of carry. Mac Sykes: Great. Thank you. Terry Forbes: Mac, just to further on that, there is no carry currently reflected in the financials. We are trending in that direction, but there's nothing that we are reflecting yet. Brian Casey: Does that answer your question, Mac? Mac Sykes: Yep. Perfect. Thank you. Operator: I'm showing no further questions at this time. I would now like to turn it back to Brian Casey, CEO, for closing remarks. Brian Casey: Well, great. In closing, I really want to express my sincere gratitude to those who've supported Westwood over the past 24 years as a public company. In particular, I want to recognize a couple of investing legends, Mario Gabelli and Luther King. Your friendship, counsel, and steadfast support have meant a great deal to me personally and to our entire firm. I'd also like to thank our long-term institutional shareholders, including Allspring and NorthStar, whose confidence and partnership over many years has been invaluable. We really appreciate your continued support of Westwood and our strategic vision. As we look ahead, we remain focused on innovation and growth. It's particularly encouraging to see that three businesses that did not exist three years ago, Managed Investment Solutions, ETFs, and Private Capital, have each grown to approximately $500 million in assets or more. These emerging platforms reflect our ability to identify opportunities, execute with discipline, and build for the future. Our goal in the year ahead is ambitious but achievable, that's to surpass $1 billion in assets within each of these business lines and continue delivering value for our clients and shareholders. We're really excited about the upcoming launch of PWRX, Power-X, on the Texas Stock Exchange next month. Power-X is designed to provide investors with access to a portfolio of carefully researched companies that are helping power the growth of artificial intelligence, an area we believe will remain a significant driver of innovation and economic value creation for years to come. Finally, our transformation of the wealth and trust business is progressing well and remains a key strategic priority. We've been encouraged by the feedback from pilot clients regarding our multifamily office offering, which has been overwhelmingly positive. As we continue refining and expanding this model, we believe it'll further strengthen our ability to serve both existing and prospective clients with a highly customized, high-value solution. On behalf of everyone at Westwood, thank you for your continued trust and support. We're energized by the opportunities ahead. We remain committed to building a stronger, more diversified, and more valuable company for all stakeholders. If you have any follow-up questions or you want to learn more about Westwood, please reach out to me or Terry. We look forward to speaking to you. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Westwood Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Westwood Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Westwood Holdings (WHG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Westwood Holdings Group Inc? Here are five stocks we like better. Second-quarter results improved: Revenue rose to $25.3 million from $23.1 million a year earlier, while net income increased to $1.5 million, or $0.17 per share. Non-GAAP economic earnings reached $3 million, or $0.33 per share. Outflows remained a challenge: Westwood reported $1.6 billion in net asset-management outflows, concentrated in legacy large-cap value and certain small-cap institutional mandates. Firmwide assets under management and advisement totaled $17.9 billion at June 30. Growth initiatives expanded: The ETF platform surpassed $400 million in assets in July, private capital commitments exceeded $500 million, and the company plans to launch the PWRX power-and-infrastructure ETF in September. Westwood aims to exceed $1 billion in assets across ETFs, private capital and Managed Investment Solutions within the next year. Westwood Holdings Group (NYSE:WHG) reported second-quarter 2026 revenue of $25.3 million, up from $23.1 million a year earlier and roughly level with $25 million in the first quarter, as growth in its exchange-traded fund and private energy secondaries businesses supported results. Net income totaled $1.5 million, or $0.17 per share, compared with $0.8 million, or $0.09 per share, in the first quarter and $1 million, or $0.12 per share, in the year-ago quarter. Chief Financial Officer Terry Forbes said the sequential improvement reflected lower compensation expenses, partly offset by higher income taxes and the first-quarter recognition of gains from Westwood's investment in a private bank. → No Hangover: Revisiting Microsoft One Week After Earnings Non-GAAP economic earnings were $3 million, or $0.33 per share, compared with $2.8 million, or $0.31 per share, in the preceding quarter. The company said year-over-year earnings benefited from higher revenue but faced partially offsetting increases in compensation, professional services expenses and income taxes. Firmwide assets under management and advisement stood at $17.9 billion at June 30, including $17 billion in assets under management and $1 billion in assets under advisement. Institutional assets accounted for $8.3 billion of assets under management, while wealth management represented $4.5 billion and mutual fund and ETF assets totaled $4.2 billion. → MarketBeat Week in Review – 08/03 - 08/07 Westwood recorded $1.6 billion in net outflows from assets under management during the quarter, while market appreciation added $1.2 billion. Assets under advisement had $53 million of market appreciation and $4 million of net outflows. Chief Executive Officer Brian Casey said outflows were concentrated in the company’s legacy large-cap value institutional business, where performance challenges and an industry shift toward lower-fee passive investment options weighed on flows. Small-cap value also saw redemptions tied primarily to one client consolidating small- and mid-cap allocations into a combined SMID-cap mandate, he said. That client subsequently funded a larger allocation to Westwood’s SMID-cap strategy in July. → Why the Landlord of the AI Boom Could Outlast the Chipmakers The institutional channel, including private capital, generated $382 million in gross sales and $1.3 billion in net outflows during the quarter. Mutual fund and ETF products generated $168 million in gross sales and $165 million in net outflows. Casey said Westwood is investing in ETFs, alternatives and Managed Investment Solutions as it seeks to diversify from traditional asset-based fee businesses. Managed Investment Solutions clients funded new accounts during the quarter, bringing year-to-date flows to $350 million, according to the company. Westwood’s ETF platform surpassed $400 million in assets during July. Its Enhanced Midstream ETF, trading under the ticker MDST, and Enhanced Energy Income ETF, trading under the ticker WEEI, held more than $370 million in combined assets. The company’s Enhanced Income Opportunity ETF, YLDW, was approaching $35 million in assets, Casey said. The company also announced a strategic partnership with ETF Capital Markets Advisors, led by Nicholas Phillips, to provide capital-markets consulting related to ETF trading, execution and market structure. Westwood plans to launch the Westwood Salient Enhanced Power & Infrastructure ETF, PWRX, on the Texas Stock Exchange in mid-September. Casey said the ETF is intended to invest in companies positioned to benefit from power demand associated with artificial intelligence data-center growth. Private capital closed nearly $147 million in new commitments during the quarter across its energy secondaries co-investment platform. Casey said Westwood had surpassed $500 million in commitments to its private capital funds and had added four members to its energy secondaries investment team and three private-capital operations employees. During the question-and-answer session, Casey said private capital funds carry annual management fees ranging from at least 1% to as much as 1.5%. He said the business could generate carried interest in the future, structured as 10% above an 8% preferred return or 15% above an 8% preferred return, depending on the fund. Forbes said no carried interest is currently reflected in the company’s financial statements. Casey said longer-term investment performance was mixed across Westwood’s strategies, though the company cited several areas of relative strength. The mid-cap strategy ranked in the top third among institutional peers over three- and five-year periods, while more than half of its multi-asset strategies ranked in the top third or better over periods of three years and longer. Westwood’s Multi-Asset Income strategy ranked in the top 12% of peers over trailing three- and five-year periods and in the top 1% over seven- and 10-year periods, according to Casey. The company also cited long-term strength in MLP-focused strategies and in select wealth management strategies. The wealth management team continued to develop a multifamily office platform, with client discussions increasingly focused on tax positioning, liquidity management and trust coordination, Casey said. The company is also working on process standardization, cross-functional alignment and technology evaluation to support scalability. Westwood ended the quarter with $56.5 million in cash and investments. Its board approved a regular quarterly cash dividend of $0.15 per common share, payable Oct. 1 to shareholders of record as of Sept. 1. Looking ahead, Casey said Managed Investment Solutions, ETFs and private capital—businesses that did not exist three years ago—have each grown to about $500 million or more in assets. Westwood’s stated objective for the coming year is to exceed $1 billion in assets in each of those business lines. Westwood Holdings Group, Inc is an independent, publicly traded asset management firm founded in 1983 and headquartered in Kansas City, Missouri. Through its wholly owned subsidiaries, the company offers a range of investment advisory services tailored to institutional, retail, and high-net-worth clients. Westwood's disciplined, value-oriented approach guides its research process across equity and fixed-income markets, with an emphasis on fundamental analysis and long-term risk management. The firm's product lineup includes U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Westwood Holdings Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is intentionally shifting the firm's focus toward three high-growth areas—ETFs, Private Capital, and Managed Investment Solutions—to offset the industry-wide migration from active value strategies to passive options. Institutional net outflows of $1.3 billion were primarily driven by legacy large-cap value performance challenges and a single client's consolidation of small-cap assets into a SMID-cap mandate. The ETF platform surpassed $400 million in assets, benefiting from increased platform approvals and the successful launch of the Enhanced Income Series which combines dividend yields with option premiums. Private Capital growth is being fueled by strong interest in energy secondaries, where the firm leverages its Houston-based team to acquire LP interests at an average price of $0.70 on the dollar. Wealth Management momentum is supported by a transition toward a multi-family office model and a focus on holistic planning, including tax and liquidity management, to maintain client confidence during market volatility. The firm noted that equity market leadership has broadened beyond mega-cap technology into industrials, healthcare, and financials, while its own growth is being driven by the expansion of its ETF, alternatives, and Managed Investment Solutions platforms., which aligns with Westwood's quality-oriented investment approach. Management has set an ambitious goal to scale each of its three new business lines—ETFs, Private Capital, and Managed Investment Solutions—to over $1 billion in assets. The firm plans to list the first-ever ETF on the Texas Stock Exchange (TXSE) in mid-September, targeting the convergence of AI data center growth and energy infrastructure demand. A new partnership with ETF Capital Markets Advisors is expected to enhance liquidity and execution quality across the ETF lineup through dedicated capital markets consulting. Management anticipates continued mandates in the SMID-cap space for defined contribution plans, supported by relationships with large national consultants. Future profitability is expected to benefit from the expiration of fee waivers as ETFs reach scale and the potential realization of performance-based 'carry' in the private capital business. The firm closed $147 million in new private capital commitments during the quarter, specifically for the energy secondaries co-investment platform. Westwood is currently evaluating its technology foundation to improve scalability and reporting across advisory and trust teams. The Board of Directors approved a regular cash dividend of $0.15 per common share, maintaining its commitment to shareholder returns as it marks 24 years as a public company. Significant personnel expansion occurred within the private capital segment, adding four members to the energy secondaries investment team and three to operations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the average fee rate to grow as ETFs reach scale and fee waivers are removed. Private capital mandates carry higher base management fees of 1% to 1.5% compared to traditional asset-based fees. The private capital business features a carry structure of 10% to 15% over an 8% preferred return, though no carry is currently reflected in the financial results. Management noted that current investments are performing well, but the realization of carry is a long-term objective.

This article first appeared on GuruFocus. Total Revenues: $25.3 million in Q2 2026, compared to $25 million in Q1 2026 and $23.1 million in Q2 2025. GAAP Net Income: $1.5 million, or $0.17 per share, versus $0.8 million ($0.09 per share) in Q1 2026 and $1 million ($0.12 per share) in Q2 2025. Economic Earnings (Non-GAAP): $3 million, or $0.33 per share, in Q2 2026, compared to $2.8 million ($0.31 per share) in Q1 2026 and $2.8 million ($0.32 per share) in Q2 2025. Assets Under Management and Advisement: $17.9 billion at quarter end, comprising $17 billion in AUM and $1 billion in assets under advisement. Institutional Assets: $8.3 billion, representing 49% of total AUM. Wealth Management Assets: $4.5 billion, representing 26% of total AUM. Mutual Fund and ETF Assets: $4.2 billion, representing 25% of total AUM. Net Flows: AUM experienced net outflows of $1.6 billion and market appreciation of $1.2 billion during the quarter. Cash and Investments: $56.5 million at quarter end. Dividend: Board approved a regular cash dividend of $0.15 per common share, payable October 1, 2026. ETF Platform Assets: Surpassed $400 million in assets in July, with combined assets of $370 million for Enhanced Midstream (MDST) and Enhanced Energy Income (WEEI) ETFs. Private Capital (Trades, Portfolio) Commitments: Closed $147 million in new private capital commitments during the quarter. Managed Investment Solutions Flows: Year-to-date flows reached $350 million. Warning! GuruFocus has detected 8 Warning Sign with WHG. Is WHG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Westwood Holdings Group Inc (NYSE:WHG) reported strong growth in its ETF platform, surpassing $400 million in assets under management in July, with the Enhanced Income Series ETFs gaining significant advisor and investor interest. The company closed $147 million in new private capital commitments during the quarter, bringing total commitments to over half a billion dollars, which carry management fees of 1% to 1.5% and potential future carry. Multi-asset and wealth team strategies posted strong long-term performance, with more than half of multi-asset strategies ranking in the top third or better against peers over three-year and longer periods. The company is strategically positioned for growth with three emerging business linesmanaged investment solutions, ETFs, and private capitaleach having grown to approximately $500 million in assets, with a goal to surpass $1 billion in each. Westwood Holdings Group Inc (NYSE:WHG) announced a strategic partnership with ETF Capital Markets Advisors to enhance liquidity, pricing, and execution quality for its growing ETF lineup, and is set to launch the PWRX ETF on the Texas Stock Exchange in mid-September. The company reported a favorable comparison in GAAP income, with second quarter income of $1.5 million or $0.17 per share, up from $0.8 million or $0.09 per share in the first quarter, and economic earnings of $3 million or $0.33 per share. Westwood Holdings Group Inc (NYSE:WHG) experienced significant net outflows of $1.6 billion in assets under management during the quarter, driven by outflows from US value institutional clients, particularly the legacy large cap value business. The company's US value strategies have shown mixed and softer performance over recent periods, contributing to client outflows as investors shift toward lower-fee passive options like ETFs. Small cap value experienced outflows due to a single client consolidating its small and mid-cap allocations into a combined mid-cap mandate, resulting in redemptions in June. The mutual fund and ETF flows showed net outflows of $165 million despite $168 million in gross sales, indicating continued pressure in certain product lines. The company noted that while building its ETF and private capital businesses, fee waivers are necessary in early years to keep expense ratios down, which may temper near-term revenue growth from these platforms. Inflation concerns, driven by rising energy prices tied to the Middle East conflict, have reemerged as a key concern, pushing bond yields higher and potentially impacting market conditions. Q: Can you provide more detail on the trend in the firm's average fee rate, given the growth in higher-fee areas like ETFs and private capital? Also, are there embedded carry or performance fees in the secondaries business, and when might they be recognized?A: Brian Casey (CEO) explained that while the firm has traditionally relied on asset-based fees, the addition of ETFs and private capital is expected to increase the average fee rate over time. ETFs carry higher fees but require scale before full fees are realized due to initial fee waivers. Private capital funds, now with over $500 million in commitments, carry annual management fees of 1% to 1.5%, with the potential for significant carry (20% over an 8% pref) in the future. Terry Forbes (CFO) clarified that no carry is currently reflected in the financials, but the firm is trending in that direction. Q: What is the outlook for the ETF platform, particularly regarding the upcoming launch of the PWRX ETF on the Texas Stock Exchange and the growth of the Enhanced Income Series?A: Brian Casey (CEO) highlighted that the ETF platform has surpassed $400 million in assets, with the Enhanced Income Series (including YLDW) gaining traction. The upcoming PWRX ETF, launching on the Texas Stock Exchange in mid-September, is a historic first for the exchange and is positioned to capitalize on the convergence of AI data center growth and power demand. The firm expects platform availability and assets to increase as the ETFs gain approvals from major national platforms. Q: Can you elaborate on the net outflows in the institutional channel, particularly in US value strategies, and the outlook for future flows?A: Brian Casey (CEO) noted that net outflows of $1.3 billion were concentrated in the legacy large-cap value business, impacted by performance challenges and the industry shift toward passive ETFs. However, outflows in small-cap value were tied to a single client consolidating allocations into a larger SMidCap mandate, which was funded in July. The institutional pipeline remains robust across value, energy, and Managed Investment Solutions, with four new opportunities added in Q2 alone. Q: What is the current status and growth trajectory of the private capital business, and how is it contributing to the firm's overall strategy?A: Brian Casey (CEO) reported that private capital closed $147 million in new commitments during the quarter, bringing total commitments to over $500 million. The platform is attracting interest from RIAs, family offices, and independent advisors, and the firm has added personnel to support growth. The investments, primarily in energy secondaries, are performing well, and the firm is optimistic about future carry potential. Q: How are the wealth management and Managed Investment Solutions businesses performing, and what is the outlook for growth?A: Brian Casey (CEO) stated that Managed Investment Solutions clients funded new accounts in Q2, bringing year-to-date flows to $350 million. The wealth management team is building momentum with its multifamily office platform, and client engagement remains elevated. The firm is focused on refining internal processes and enhancing collaboration to support sustainable growth in these areas. Q: Can you provide details on the financial results for the second quarter, including revenue and earnings?A: Terry Forbes (CFO) reported total revenues of $25.3 million for Q2 2026, consistent with Q1 and up from $23.1 million in Q2 2025. GAAP net income was $1.5 million ($0.17 per share), up from $0.8 million ($0.09 per share) in Q1. Non-GAAP economic earnings were $3 million ($0.33 per share), compared to $2.8 million ($0.31 per share) in Q1. The Board approved a regular cash dividend of $0.15 per share. Q: What were the key drivers of the firm's asset flows and market appreciation during the quarter?A: Terry Forbes (CFO) noted that firm-wide assets under management and advisement totaled $17.9 billion at quarter end. AUM experienced net outflows of $1.6 billion and market appreciation of $1.2 billion. Assets under advisement saw market appreciation of $53 million and net outflows of $4 million. The outflows were primarily in institutional value strategies, while ETFs and private capital saw inflows. Q: How is the firm positioning itself to capitalize on the shift toward passive ETFs and the growth of AI-related power demand?A: Brian Casey (CEO) emphasized that the firm has strategically invested in ETFs, alternatives, and managed investment solutions to adapt to investor preferences. The ETF platform, including the Enhanced Income Series and the upcoming PWRX ETF, is designed to offer attractive income and capital appreciation. The firm is leveraging its deep energy expertise to benefit from the tailwinds of AI data center growth and power demand. Q: What is the firm's long-term performance across its various strategies, and how does it plan to address recent underperformance in US value?A: Brian Casey (CEO) acknowledged mixed results in US value strategies over recent periods but highlighted strong long-term rankings in multi-asset, MLP, and wealth team strategies. The firm remains confident in its disciplined investment approach, focusing on high-quality businesses with strong free cash flow and attractive valuations. The SMidCap strategy ranked in the top third over three- and five-year periods. Q: Can you provide an update on the firm's strategic partnerships and operational initiatives?A: Brian Casey (CEO) announced a strategic partnership with ETF Capital Markets Advisors, led by Nicholas Phillips, to enhance liquidity and execution quality for the ETF lineup. The firm is also evaluating its technology infrastructure and making progress on process standardization across advisory, client service, and trust teams. These initiatives are aimed at improving scalability and client experience. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Private Capital platform surpassed $500 million in assetsManaged Investment Solutions flows reached $350 million DALLAS, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported second quarter 2026 earnings. Significant items included: Investment strategies beating their primary benchmarks included Enhanced Balanced, Alternative Income, Real Estate Income, MLP & Energy Infrastructure, Enhanced Midstream Income and Enhanced Energy Income. MLP & Energy Infrastructure, Enhanced Balanced and Enhanced Midstream Income posted top quartile rankings vs. peers and Real Estate Income posted top decile rankings vs. peers. Quarterly revenues totaled $25.3 million vs. $25.0 million in the first quarter and $23.1 million a year ago. Net income of $1.5 million compared with $0.8 million in the first quarter and $1.0 million in 2025's second quarter. Non-GAAP Economic Earnings of $3.0 million compared with $2.8 million in both the first quarter and in the second quarter of 2025. Westwood held $56.5 million in cash and investments as of June 30, 2026. Westwood's stockholders' equity totaled $126.3 million. We declared a cash dividend of $0.15 per common share, payable on October 1, 2026 to stockholders of record on September 1, 2026. Brian Casey, Westwood’s CEO, commented, "We're very proud of the momentum we built this quarter, highlighted by our ETF platform surpassing $400 million in assets and our Private Capital platform surpassing $500 million, alongside continued strength across our Multi-Asset and Wealth Team strategies. With our Private Capital business growing, our Managed Investment Solutions pipeline expanding, and the upcoming listing of our PWRX ("Power-X") ETF on the Texas Stock Exchange, we believe Westwood is well positioned to continue delivering long-term value for clients and shareholders as we mark our 24th anniversary as a public company." Firmwide assets under management and advisement totaled $17.9 billion, consisting of assets under management ("AUM") of $17.0 billion and assets under advisement ("AUA") of $1.0 billion. Second quarter revenues were consistent with the first quarter. Second quarter net income of $1.5 million exceeded the first quarter's net income of $0.8 million on lower compensation expenses, offset by higher income taxes and first quarter recognition of gains from our investment in a private bank. Diluted earnings per share ("EPS") of $0.17 compared to $0.09 for the first quarter. Non-GAAP Economic Earnings of $3.0 million, or $0.33 per share, compared with $2.8 million, or $0.31 per share, in the first quarter. Second quarter revenues were higher than last year's second quarter due to continued growth in our business, particularly from our ETFs and private energy secondaries funds. Second quarter net income of $1.5 million compared favorably to last year's second quarter income of $1.0 million due to higher revenues, partially offset by higher compensation and professional services expenses, and higher income taxes. Diluted EPS of $0.17 compared with $0.12 for 2025's second quarter. Non-GAAP Economic Earnings were $3.0 million, or $0.33 per share, compared with $2.8 million, or $0.32 per share, in the second quarter of 2025. Economic Earnings and Economic EPS are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers in the attached tables. Westwood will host a conference call to discuss second quarter 2026 results and other business matters at 4:30 p.m. Eastern time today. To join the conference call, please register here: https://register-conf.media-server.com/register/BI1a2ac991c5be418d80e390f6c45a05ca After registering, you will be provided with a dial-in number containing a personalized PIN. To view the webcast, please register here: https://edge.media-server.com/mmc/p/qpuoane3 Once registered, an email will be sent with important details for this conference call, as well as a unique Registrant ID. ABOUT WESTWOOD HOLDINGS GROUP Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood’s client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors’ short and long-term needs. Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values - integrity, reliability, responsiveness, adaptability, teamwork and driving results - and underpin our constant pursuit of excellence. For more information on Westwood, please visit westwoodgroup.com. Forward-looking Statements Statements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as “anticipate,” “believe,” “expect,” “could,” and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation: the composition and market value of our AUM and AUA; our ability to maintain our fee structure in light of competitive fee pressures; risks associated with actions of activist stockholders; distributions to our common stockholders have included and may in the future include a return of capital; inclusion of foreign company investments in our AUM; regulations adversely affecting the financial services industry; our ability to maintain effective cyber security; litigation risks; our ability to develop and market new investment strategies successfully; our reputation and our relationships with current and potential customers; our ability to attract and retain qualified personnel; our ability to perform operational tasks; our ability to select and oversee third-party vendors; our dependence on the operations and funds of our subsidiaries; our ability to maintain effective information systems; our ability to prevent misuse of assets and information in the possession of our employees and third-party vendors, which could damage our reputation and result in costly litigation and liability for our clients and us; our stock is thinly traded and may be subject to volatility; competition in the investment management industry; our ability to avoid termination of client agreements and the related investment redemptions; the significant concentration of our revenues in a small number of customers; we have made and may continue to make business combinations as a part of our business strategy, which may present certain risks and uncertainties; our relationships with investment consulting firms; our ability to identify and execute on our strategic initiatives; our ability to declare and pay dividends; our ability to fund future capital requirements on favorable terms; our ability to properly address conflicts of interest; our ability to maintain adequate insurance coverage; our ability to maintain an effective system of internal controls; and the other risks detailed from time to time in Westwood’s SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2025 and its quarterly report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, Westwood is not obligated to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. SOURCE: Westwood Holdings Group, Inc. (WHG-G)CONTACT:Westwood Holdings Group, Inc.Terry ForbesChief Financial Officer and Treasurer(214) 756-6900 WESTWOOD HOLDINGS GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share and share amounts)(unaudited) WESTWOOD HOLDINGS GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share and share amounts)(unaudited) WESTWOOD HOLDINGS GROUP, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except par value and share amounts)(unaudited) WESTWOOD HOLDINGS GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) WESTWOOD HOLDINGS GROUP, INC.Reconciliation of Income Attributable to Westwood Holdings Group, Inc. to Economic Earnings(in thousands, except per share and share amounts)(unaudited) As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic earnings and Economic earnings per share. We provide these measures in addition to, not as a substitute for, income attributable to Westwood Holdings Group, Inc. and earnings per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic earnings and Economic earnings per share to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP income attributable to Westwood Holdings Group, Inc. or earnings per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP. We define Economic earnings as income attributable to Westwood Holdings Group, Inc. plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic earnings because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. In addition, we do not adjust Economic earnings for tax deductions related to restricted stock expense or amortization of intangible assets. Economic earnings per share represents Economic earnings divided by diluted weighted average shares outstanding.

This article first appeared on GuruFocus. Total Revenue: $24.3 million in Q3 2025, up from $23.1 million in Q2 2025 and $23.7 million in Q3 2024. Net Income: $3.7 million, or $0.41 per share, in Q3 2025, compared with $1 million ($0.12 per share) in Q2 2025 and $0.1 million in Q3 2024. Economic Earnings (Non-GAAP): $5.7 million, or $0.64 per share, in Q3 2025, versus $2.8 million ($0.32 per share) in Q2 2025 and $1.1 million ($0.13 per share) in Q3 2024. Assets Under Management (AUM): $17.3 billion at quarter end, with net outflows of $0.7 billion and market appreciation of $0.7 billion during the quarter. Assets Under Advisement (AUA): $1 billion at quarter end, with market appreciation of $30 million and net outflows of $3 million. Total Firm-Wide Assets: $18.3 billion at quarter end, comprising institutional assets of $9 billion (52%), wealth management assets of $4.3 billion (25%), and mutual fund and ETF assets of $4 billion (23%). Cash and Liquid Investments: $39.2 million at quarter end, with a debt-free balance sheet. Dividend: Board approved a regular cash dividend of $0.15 per common share, payable on January 2, 2026. Net Sales Growth: Year-to-date net sales through September 30 improved 17% versus last year and 57% versus 2023. ETF Milestone: Enhanced Midstream Income ETF (MDST) surpassed $150 million in AUM, with an annualized indicated dividend yield exceeding 10%. New Product Launches: Launched 11 new sector ETFs under the Webb's defined volatility suite during the quarter. Warning! GuruFocus has detected 8 Warning Sign with WHG. Is WHG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Westwood Holdings Group Inc (NYSE: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 (NYSE: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 (NYSE: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 (NYSE: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 (NYSE: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 (NYSE: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. Q: How is Westwood leveraging the success of its ETF platform, particularly the Enhanced Midstream Income ETF (MDST), to drive further growth, and are there any capacity constraints with the incoming capital?A: Brian Casey, CEO, highlighted that the firm is actively working to expand distribution by meeting the varying thresholds of different platforms. He noted that while some platforms have low barriers, others require significant assets and trading volume. The team is calling on RIAs and platforms, and they are very close to gaining access to one of the largest wirehouse platforms in the world, which they expect to finalize within the next month or two. Q: Can you provide more detail on the firm's pipeline and the specific opportunities that are expected to drive future institutional wins?A: Brian Casey, CEO, stated that the pipeline for new business remains very strong at $1.6 billion. This includes a "one but not yet funded" mandate of close to $450 million for their mid-cap product. He also mentioned that private fundraising is going exceptionally well and that they are close to landing their first institutional client for their real assets and infrastructure product, which has performed excellently for their MIS clients. Q: What were the primary drivers of the net outflows in the institutional channel during the third quarter, and what is the outlook for this segment?A: Brian Casey, CEO, explained that the negative net flows in the institutional channel were primarily driven by sub-advisory business rebalancing. However, the pipeline remains robust across value and energy strategies, with several new opportunities added during the quarter. He anticipates winning more mandates in SMIDCAP for defined contribution plans, supported by the largest national consultants, and expects continued stability with existing clients. Q: How did the newly launched Webb's defined volatility sector ETFs perform, and what is the strategy behind this expansion?A: Brian Casey, CEO, noted that Westwood and Webb's Investments launched 11 new sector funds during the quarter, applying the defined volatility strategy to individual sectors within the S&P 500. The flagship ETFs, DVSP and DVQQ, proved their worth as volatility calmed, with DVSP outperforming SPY by 636 basis points and DVQQ outperforming QQQ by 726 basis points. The strategy aims to offer investors more precise control over risk and sector exposure. Q: Can you elaborate on the financial results for the third quarter, specifically the differences between GAAP income and non-GAAP economic earnings?A: Murray Forbes, CFO, reported total revenues of $24.3 million, up from $23.1 million in Q2 and $23.7 million in the prior year, driven by higher average AUM. GAAP net income was $3.7 million ($0.41 per share), while non-GAAP economic earnings were $5.7 million ($0.64 per share). The differences were primarily due to unrealized depreciation on private investments and higher income taxes. Q: What is the current state of the firm's assets under management, and how did flows and market appreciation impact the totals?A: Murray Forbes, CFO, stated that firm-wide AUM totaled $18.3 billion, consisting of $17.3 billion in AUM and $1 billion in assets under advisement. During the quarter, AUM experienced net outflows of $0.7 billion and market appreciation of $0.7 billion. The breakdown includes institutional assets of $9 billion (52%), wealth management assets of $4.3 billion (25%), and mutual fund and ETF assets of $4 billion (23%). Q: How is the firm's wealth management business performing, and what are the cost reduction trends?A: Brian Casey, CEO, stated that the wealth management business is on track to meet client retention goals for the calendar year. The firm has reduced costs versus last year, and this trend will continue throughout the rest of the year. The operational efficiencies being built will underpin early wins in 2026, and they are evaluating the best path to enhance services moving forward. Q: What is the outlook for the energy and real asset strategies, and how are they contributing to overall sales?A: Brian Casey, CEO, noted that energy and real asset strategies continue to lead Westwood in both gross and net sales in 2025. The Enhanced Midstream Income ETF (MDST) surpassed $150 million in AUM and was the second best-selling fund compared to peer midstream funds in September, accounting for approximately 30% of midstream product ETF flows. The firm sees continued interest in energy offerings for both public and private strategies. Q: Can you provide an update on the private fundraising initiative and its success relative to goals?A: Brian Casey, CEO, highlighted that the private fundraising initiative has exceeded the 2025 annual goal by 1.5 times through September 30th. The private funds have also earned approval on several broker-dealer platforms, further expanding distribution capabilities. This success is a key driver of the intermediary channel's impressive results. Q: What is the firm's capital allocation strategy, particularly regarding dividends and the balance sheet?A: Murray Forbes, CFO, announced that the Board of Directors approved a regular cash dividend of $0.15 per common share, payable on January 2, 2026. The firm's financial position remains solid with cash and liquid investments totaling $39.2 million and a debt-free balance sheet, providing flexibility for future strategic initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

AUM rose to $18.3 billion at March 31, 2026, driven primarily by energy and real‑asset strategies and private funds; Westwood’s ETF suite and private capital grew meaningfully — MDST topped $200 million, the three Enhanced Income ETFs surpassed ~$320 million combined, and Westwood Energy Secondaries Fund II (West Two) closed with over $300 million in commitments while fundraising for West Three is underway. Q1 financials: total revenue was $25.0 million with GAAP net income of $0.8 million ($0.09/share) and non‑GAAP economic earnings of $2.8 million ($0.31/share); the sale of its Vista Bank interest generated about a $2 million gain, the firm finished the quarter debt‑free with $34.2 million in cash, and the board approved a $0.15/share regular cash dividend payable July 1, 2026. Distribution and pipeline momentum: combined gross sales were roughly $529 million (institutional $322M, intermediary $207M), including onboarding its first institutional Managed Investment Solutions client that accounted for more than $200 million in gross sales, even as net outflows were $50 million; management says the opportunity pipeline now exceeds $1 billion. Interested in Westwood Holdings Group Inc? Here are five stocks we like better. Westwood Holdings Group (NYSE:WHG) reported first-quarter 2026 results highlighting higher assets under management, continued growth in its ETF and private capital platforms, and a modest gain from the sale of its Vista Bank interest. Chief Executive Officer Brian Casey said firm-wide assets under management (AUM) increased to $18.3 billion at March 31, 2026, from $17.4 billion at year-end 2025. Casey attributed the growth primarily to energy and real asset strategies—particularly private energy funds and energy-focused ETFs—which more than offset “modest declines in U.S. value equity.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Casey emphasized that private fund AUM was a significant contributor, reflecting new commitments and capital deployment in energy secondaries and co-investment vehicles. He characterized this growth as “structural in nature rather than market dependent,” adding that the firm is seeing client allocations shift toward “income-oriented, real asset, and private market solutions,” citing factors such as energy security concerns, global infrastructure investment, and power demand tied to data centers and AI-linked infrastructure. In discussing the quarter’s market environment, Casey noted that after U.S. equities reached new highs in late January, markets reversed, and oil prices rose significantly in March following U.S. and Israeli military actions against Iran. He said the S&P 500 fell 4.3% for the quarter, while small- and mid-cap stocks were modestly positive. Energy was the standout, with S&P 500 energy stocks gaining more than 38% over the period, according to Casey. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Casey also noted that the Federal Reserve held the federal funds rate steady in the 3.5%–3.75% range amid 0.7% annualized fourth-quarter GDP growth and lingering inflation. Bond yields edged higher, producing modestly negative returns, he said. On investment performance, Casey acknowledged ongoing pressure in parts of the firm’s U.S. value equity strategies, while pointing to areas of strength. He said the SMidCap Value strategy ranked in the top quartile of both its investment and Morningstar peer groups over the trailing three years, and that the Large Cap Value strategy delivered “competitive results relative to peers” over a 10-year period. → These 3 AI Stocks Just Crushed Earnings: Still Time To Buy? Casey highlighted multi-asset results, saying the Multi-Asset Income Fund ranked in the top decile of its Morningstar peer category over trailing three- and five-year periods, while the Income Opportunity strategy ranked in the top third over the trailing three years. He also pointed to performance in energy and real asset strategies and said MDST and WEEI—Westwood’s Salient Enhanced Midstream Income ETF and Salient Enhanced Energy Income ETF—continued to provide “attractive yields” consistent with their objectives. Looking ahead, Casey said the firm believes conditions are evolving “in a way that increasingly favors our investment philosophy,” citing broadening market leadership beyond mega-cap technology into sectors including energy, industrials, and utilities. Casey said combined institutional and intermediary gross sales were approximately $529 million in the quarter. In the institutional channel, he reported gross sales of $322 million and net inflows of $32 million. A key development was onboarding the firm’s first institutional Managed Investment Solutions (MIS) client, which Casey said accounted for more than $200 million in gross sales. He added that the pipeline remained robust across value and energy strategies, and said the firm began SMidCap due diligence with two large national consultants, with an expectation of continued momentum in SMidCap Value for defined contribution plans. In the intermediary channel, Casey reported gross sales of $207 million, led by energy and real assets, with net outflows of $34 million. He said MDST gained approval from its first major wirehouse and continued to receive approvals from major national platforms. Casey also noted that YLDW, the firm’s Enhanced Income Opportunity ETF launched in December, was approaching $25 million in assets—describing that level as a typical threshold for platform onboarding. Casey said Westwood’s ETF suite surpassed $315 million in combined AUM during the quarter. He later added that the firm’s “three Enhanced Income Series ETFs have now surpassed $320 million in combined assets,” after MDST crossed $200 million in AUM in February—an achievement he described as a landmark for a fund “in the market for less than two years.” He said MDST maintained an annualized distribution rate of approximately 10%. On private capital, Casey said Westwood Energy Secondaries Fund II (West Two) closed with over $300 million in capital commitments, more than double its initial $150 million target. Since launching its first energy secondaries fund in 2023, he said the firm raised nearly $350 million and deployed over $250 million across two flagship funds and three co-investment vehicles. Casey said fundraising for Westwood Energy Secondaries Fund III (West Three) and a related co-investment fund was underway and expected to be marketed through early 2027, with “substantial early interest.” To support the private capital platform, Casey said the firm added team members to its private capital operations group and implemented a new AI-driven technology tool to streamline operational processes. Chief Financial Officer Murray Forbes III reported total revenues of $25.0 million for the first quarter of 2026, compared with $27.1 million in the fourth quarter and $23.3 million in the prior-year first quarter. Forbes said revenue declined sequentially due to lower average AUM and because performance fees were recognized in the fourth quarter for the prior year. Year-over-year revenue increased due to higher average AUM and growth from ETFs and private energy secondaries funds, he said. Forbes reported first-quarter net income of $0.8 million, or $0.09 per share, compared with $1.9 million, or $0.21 per share, in the prior quarter. He attributed the change primarily to lower revenues and higher compensation expenses, partially offset by a gain from the sale of an investment in a private bank and lower income taxes. Non-GAAP economic earnings were $2.8 million, or $0.31 per share, versus $3.3 million, or $0.36 per share, in the fourth quarter. Economic earnings compared with $2.5 million, or $0.29 per share, in the first quarter of 2025, Forbes said. On AUM detail, Forbes said firm-wide assets under management and advisement totaled $18.3 billion, consisting of $17.3 billion of AUM and $0.9 billion of assets under advisement. He said AUM was comprised of $9.0 billion institutional (52%), $4.2 billion wealth management (24%), and $4.1 billion mutual fund and ETF assets (24%). Over the quarter, he reported net outflows of $50 million and market appreciation of $0.8 billion within AUM. Casey also highlighted completion of the sale of Westwood’s interest in Vista Bank, which he said generated a net gain of approximately $2 million. Forbes said Westwood ended the quarter with $34.2 million in cash and liquid investments and a debt-free balance sheet. He also announced the board approved a regular cash dividend of $0.15 per common share, payable July 1, 2026, to stockholders of record on June 1, 2026. No questions were asked during the call’s Q&A session. In closing remarks, Casey said the firm’s opportunity pipeline had grown to “over $1 billion” and that the MIS pipeline was improving, with expectations to land another institutional client “in the coming months.” He also said the ETF platform was seeing strong demand and noted MDST was expected to go fully live across a major wirehouse platform the following day. Westwood Holdings Group, Inc is an independent, publicly traded asset management firm founded in 1983 and headquartered in Kansas City, Missouri. Through its wholly owned subsidiaries, the company offers a range of investment advisory services tailored to institutional, retail, and high-net-worth clients. Westwood's disciplined, value-oriented approach guides its research process across equity and fixed-income markets, with an emphasis on fundamental analysis and long-term risk management. The firm's product lineup includes U.S. The article "Westwood Holdings Group Q1 Earnings Call Highlights" was originally published by MarketBeat.

AUM growth to $18.3 billion was primarily driven by structural demand for energy and real asset strategies, which successfully offset modest declines in U.S. value equity. Management attributes the shift in client allocations to macroeconomic drivers, specifically energy security concerns and data center infrastructure demand linked to AI growth. The firm is experiencing a broadening of market leadership away from mega-cap technology toward value-oriented sectors like materials and industrials, which aligns with their active investment philosophy. Institutional growth was bolstered by the successful onboarding of the first Managed Investment Solutions (MIS) client, validating a new capability that contributed over $200 million in gross sales. Private fund AUM growth is characterized as structural rather than market-dependent, providing a durable source of diversification through energy secondaries and co-investment vehicles. Traditional U.S. value equity remains under pressure, though management noted that the pace of outflows has begun to moderate as performance in specific strategies like SMID Cap remains competitive. Fundraising for Westwood Energy Secondaries Fund 3 is underway with marketing expected to continue through early 2027, supported by early interest from RIAs and family offices. The ETF platform is expected to scale further following a major distribution milestone where the MDST fund gained approval from its first major warehouse platform. Management anticipates institutional momentum for SMID Cap Value strategies as they initiate due diligence with two of the largest national consultants. The firm is integrating AI-driven technology tools within its private capital operations to streamline processes and support the scaling of the energy secondaries platform. Future product expansion will focus on the 'Enhanced Income' series, with the YLDW ETF approaching the $25 million asset threshold required for broader platform onboarding. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed the sale of the firm's interest in Vista Bank, resulting in a net gain of approximately $2 million in the first quarter. Westwood Energy Secondaries Fund 2 closed with over $300 million in commitments, more than double the initial $150 million target. The firm marked its 43rd year in business and the 25th anniversary of the Westwood Real Estate Income Fund, emphasizing long-term stability to clients. A regular cash dividend of $0.15 per share was approved, supported by a debt-free balance sheet and $34.2 million in cash and liquid investments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.