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- **ETF Success**: MDST ETF surpasses $150M AUM; 11 new sector ETFs launched with strong Q3 outperformance (DVSP +636bps vs SPY, DVQQ +726bps vs QQQ).
- **Revenue Growth**: Q3 2025 revenues $24.3M (+5% vs Q2, +2.6% vs 2024 Q3); Non-GAAP earnings $5.7M (+107% YoY).
- **Market Leadership**: SMidCap strategy in top third over 3 years; WHGIX upgraded to 4-star Morningstar rating.
- **Strategic Momentum**: Private fundraising exceeds 2025 goal by 1.5x; $1.6B pipeline includes $450M SMidCap mandate.
- **Financial Strength**: Debt-free balance sheet with $39.2M cash; $0.15/share dividend declared for Jan 2026.

**CEO Summary Section**
- **ETF Growth**: Enhanced Midstream Income ETF (MDST) surpassed $150M in AUM, ranking as the second-best-selling midstream ETF in September with 30% of sector flows.
- **Strategic Wins**: 11 new sector ETFs launched (WEBs Defined Volatility suite), with DVSP and DVQQ outperforming SPY and QQQ by 636 and 726 basis points, respectively, in Q3.
- **Performance Recognition**: Income Opportunity Fund (WHGIX) upgraded to 4-star Morningstar rating; SMidCap strategy in top third over 3 years.
- **Distribution Momentum**: Year-to-date net sales up 17% vs. 2024, 57% vs. 2023; private fundraising exceeds 2025 goal by 1.5x.
- **Market Positioning**: Focus on undervalued small-cap and value-style investments; 2026 operational efficiencies expected to drive early wins.

**CFO Financial Commentary**
- **Q3 2025 Results**: Revenues $24.3M (vs. $23.1M Q2, $23.7M 2024 Q3); GAAP income $3.7M ($0.41/share) vs. $1M ($0.12/share) Q2; Non-GAAP economic earnings $5.7M ($0.64/share) vs. $2.8M ($0.32/share) Q2.
- **AUM Breakdown**: Total AUM $18.3B (52% institutional, 25% wealth management, 23% mutual funds/ETFs); net outflows $0.7B, offset by market appreciation.
- **Financial Health**: Debt-free balance sheet with $39.2M cash; $0.15/share dividend declared for Jan 2, 2026.

**Q&A Highlights**
- **ETF Expansion**: Close to gaining access to a major wirehouse platform; no capacity constraints despite strong inflows.
- **Distribution Strategy**: Targeting RIAs and platforms with low asset thresholds ($25M+ AUM, 100k+ shares/day traded).

**Closing Remarks**
- **Pipeline Strength**: $1.6B pipeline, including $450M SMidCap mandate; private fundraising on track for early 2026 updates.
- **New Initiatives**: Exploring income-focused ETFs leveraging Westwood's investment capabilities; real asset product performance attracting institutional interest.
- **Compassion Note**: Acknowledgment of Rolanda Williams' legacy and contributions to the firm.

Westwood Holdings Group, Inc. (WHG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WHG

WHG fundamentals

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