Silvercrest Asset 2025 Q2 Earnings Misses Targets as Net Income Declines 28.1%

Silvercrest Asset (SAMG) reported its fiscal 2025 Q2 earnings on July 31st, 2025. Silvercrest's earnings per share (EPS) of $0.21 fell short of analysts' expectations of $0.30. The company also saw a decline in net income to $3.15 million from $4.38 million a year prior. Guidance for the upcoming quarters remains optimistic, with expectations of continued organic growth. A strategic focus on talent investments and careful interim compensation management are highlighted as key tactics for achieving this growth.

Revenue
Silvercrest Asset's total revenue for Q2 2025 was $30.67 million, reflecting a 1.0% decrease from Q2 2024’s $30.99 million. Management and advisory fees amounted to $29.52 million, while family office services contributed $1.16 million.

Earnings/Net Income
Silvercrest Asset's EPS saw a decline of 25.0% to $0.21 in 2025 Q2, from $0.28 in 2024 Q2. Net income decreased by 28.1% to $3.15 million in 2025 Q2, compared to $4.38 million in 2024 Q2. This decline indicates pressure on profitability.

Price Action
The stock price of Silvercrest Asset edged up by 1.24% during the latest trading day, decreased by 1.09% over the past week, and rose by 3.15% month-to-date.

Post-Earnings Price Action Review
The investment strategy of purchasing Silvercrest Asset shares following a quarter-over-quarter revenue increase and holding for 30 days has yielded moderate returns over the past three years. This approach resulted in an 84.14% return, slightly underperforming the benchmark by 1.43%. The strategy demonstrated a low-risk profile, evidenced by a maximum drawdown of 0.00% and a Sharpe ratio of 0.36, suggesting stable returns. The strategy's performance underscores its effectiveness in managing risk while delivering consistent returns, although it underperformed the benchmark marginally.

CEO Commentary
Silvercrest's CEO highlighted a $1.0 billion increase in discretionary assets under management during Q2 2025, driven by robust market performance. Despite negative net flows, the company secured $80.0 million in new client accounts, contributing to $2.0 billion in organic growth over the past year. The CEO remains optimistic about future organic flows and strategic investments.

Guidance
Silvercrest anticipates ongoing growth in discretionary AUM, which is expected to positively impact future revenue. The CEO expressed confidence in securing significant organic flows in the coming years, supported by strategic investments and a strong new business pipeline. The company remains committed to returning capital to shareholders while pursuing growth opportunities.

Additional News
Silvercrest Asset Management Group Inc. recently announced a $25 million stock repurchase program on May 23, 2025, following the completion of a $12 million buyback at the start of Q2. This decision reflects the company's strong balance sheet and commitment to returning capital to shareholders. Additionally, the board approved a 5% increase in the quarterly dividend, raising it from $0.20 to $0.21 per share of Class A common stock, payable on September 19, 2025, to stockholders of record as of September 12, 2025. These moves underscore Silvercrest's focus on enhancing shareholder value while continuing its growth initiatives.