Westwood Holdings Group Reports Fourth Quarter and Full Year 2025 Results

Our expanded ETF platform now exceeds $200 million in AUM
Successful year-end close of WES II with over $300 million in commitments
Managed Investment Solutions team secured its first institutional client

DALLAS, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported fourth quarter and fiscal year 2025 earnings. Significant items include:

Investment strategies beating their primary benchmarks in the fourth quarter included Enhanced Balanced, Total Return, Income Opportunity, Multi-Asset Income, Alternative Income, MLP & Energy Infrastructure, Westwood Salient Enhanced Midstream Income ETF and Westwood Salient Enhanced Energy Income ETF.Income Opportunity posted a top quartile ranking vs. peers and Total Return posted a top decile ranking in the quarter.Quarterly revenues totaled $27.1 million versus the third quarter's $24.3 million and $25.6 million a year ago. Income of $1.9 million compared with $3.7 million in the third quarter and $2.1 million in the fourth quarter of 2024.Non-GAAP Economic Earnings of $3.3 million for the quarter compared with $5.7 million in the third quarter and $3.4 million in the fourth quarter of 2024.Westwood held $44.1 million in cash and liquid investments at December 31, 2025, up $4.5 million from September 30, 2025. Westwood's stockholders' equity totaled $125.6 million as of December 31, 2025 and we continue to have no debt.We declared a cash dividend of $0.15 per common share, payable on April 1, 2026 to stockholders of record on March 3, 2026.

Brian Casey, Westwood’s CEO, commented, "We strengthened our competitive position throughout last year, expanding our ETF platform with the launch of YLDW, our Enhanced Income Opportunity ETF, and we now have more than $200 million in ETF assets. We closed our second flagship energy secondaries fund and two co-investment funds with over $300 million in capital commitments, well above our initial target, and our Managed Investment Solutions business scored its first institutional client win. These achievements underscore our team’s disciplined execution abilities and our commitment to deliver innovative, high‑quality investment solutions for our clients. As we begin this new year, we are well‑positioned to build on these new initiatives."

Revenues increased from the third quarter due to significant investor interest in our exchange-traded funds ("ETFs") and private energy secondaries funds, along with higher performance fees. Revenues increased from 2024's fourth quarter primarily due to higher average assets under management ("AUM") and higher revenues from our ETFs and private energy secondaries funds, partially offset by lower performance fees.

Firmwide assets under management and advisement totaled $17.4 billion, consisting of $16.5 billion in AUM and assets under advisement ("AUA") of $0.9 billion.

Fourth quarter income of $1.9 million compared to $3.7 million in the third quarter due to higher performance-related incentive compensation in the fourth quarter and unrealized appreciation on strategic private investments in the third quarter, offset by higher revenues. Diluted EPS of $0.21 compared to $0.41 per share for the third quarter. Non-GAAP Economic Earnings were $3.3 million, or $0.36 per share, compared to the third quarter's $5.7 million, or $0.64 per share.

Fourth quarter income of $1.9 million compared to last year's fourth quarter of $2.1 million as a result of higher revenues and the impact in 2024 of changes in the fair value of contingent consideration, offset by higher performance-related incentive compensation expenses and additional professional service costs. Diluted EPS of $0.21 compared with $0.24 per share for 2024's fourth quarter. Non-GAAP Economic Earnings of $3.3 million, or $0.36 per share, compared to $3.4 million, or $0.39 per share, in the fourth quarter of 2024.

2025 income of $7.1 million compared to $2.2 million in 2024 on higher revenues, unrealized appreciation on strategic private investments, and the impact in 2024 of changes in the fair value of contingent consideration, offset by higher professional service and information technology costs. Diluted EPS was $0.79 per share compared with $0.26 per share for 2024. Economic EPS of $1.61 compared with $0.82 in 2024.

Economic Earnings and Economic EPS are non-GAAP performance measures that are explained and reconciled with the most comparable GAAP numbers in the attached tables.

Westwood will host a conference call to discuss fourth quarter and fiscal year 2025 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/BI07b829e2b37f4ae6966af1ad4c72fd74

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/qe4gtv6e

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, 2024 and its quarterly report on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025. 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 Forbes

Chief 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) Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024REVENUES: Advisory fees: Asset-based$20,149 $18,887 $18,025Performance-based 874 — 1,393Trust fees 5,646 5,416 5,635Trust performance-based 260 — 482Other, net 172 (14) 47Total revenues 27,101 24,289 25,582EXPENSES: Employee compensation and benefits 15,427 13,286 14,090Sales and marketing 694 633 641Westwood funds 1,303 1,101 880Information technology 2,630 2,893 2,450Professional services 2,225 1,593 717General and administrative 2,658 2,774 3,044Loss from change in fair value of contingent consideration — — 1,199Total expenses 24,937 22,280 23,021Net operating income 2,164 2,009 2,561Net change in unrealized appreciation (depreciation) on private investments — 1,932 —Net investment income 470 459 593Other income 291 292 219Income before income taxes 2,925 4,692 3,373Provision for income taxes 1,085 963 1,274Net income$1,840 $3,729 $2,099Less: income (loss) attributable to noncontrolling interest (23) 30 43Income attributable to Westwood Holdings Group, Inc.$1,863 $3,699 $2,056Earnings per share: Basic$0.22 $0.44 $0.25Diluted$0.21 $0.41 $0.24Weighted average shares outstanding: Basic 8,418,874 8,418,174 8,271,614Diluted 9,003,337 8,941,347 8,756,976Economic Earnings$3,276 $5,714 $3,377Economic EPS$0.36 $0.64 $0.39Dividends declared per share$0.15 $0.15 $0.15

WESTWOOD HOLDINGS GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share and share amounts) (unaudited) Year Ended December 31, 2025 2024 REVENUES: Advisory fees: Asset-based$74,722 $69,755 Performance-based 874 1,393 Trust fees 21,560 21,422 Trust performance-based 260 482 Other, net 346 1,669 Total revenues 97,762 94,721 EXPENSES: Employee compensation and benefits 56,686 56,011 Sales and marketing 2,744 2,668 Westwood funds 4,258 3,254 Information technology 10,894 9,662 Professional services 6,917 5,468 General and administrative 11,290 11,947 Loss from change in fair value of contingent consideration — 4,881 Total expenses 92,789 93,891 Net operating income 4,973 830 Net change in unrealized appreciation (depreciation) on private investments 1,932 — Net investment income 1,655 2,183 Other income 1,117 1,002 Income before income taxes 9,677 4,015 Income tax provision 2,600 1,804 Net income$7,077 $2,211 Less: income (loss) attributable to noncontrolling interest 19 (4)Income attributable to Westwood Holdings Group, Inc.$7,058 $2,215 Earnings per share: Basic$0.84 $0.27 Diluted$0.79 $0.26 Weighted average shares outstanding: Basic 8,374,352 8,163,465 Diluted 8,885,580 8,515,779 Economic Earnings$14,296 $6,965 Economic EPS$1.61 $0.82 Dividends declared per share$0.60 $0.60

WESTWOOD HOLDINGS GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share amounts) (unaudited) December 31, 2025 December 31, 2024ASSETS Cash and cash equivalents$26,249 $18,847 Accounts receivable 16,751 14,453 Investments at fair value (amortized cost of $19,923 and $26,788) 21,433 27,694 Investments under measurement alternative 15,697 10,747 Equity method investments 4,303 4,250 Income taxes receivable — 295 Other assets 8,453 6,780 Goodwill 39,501 39,501 Deferred income taxes 2,452 2,244 Operating lease right-of-use assets 9,676 2,559 Intangible assets, net 18,199 21,668 Property and equipment, net of accumulated depreciation of $8,952 and $8,424 536 951 Total assets$163,250 $149,989 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Accounts payable and accrued liabilities$7,584 $6,413 Dividends payable 2,701 2,466 Compensation and benefits payable 13,626 10,924 Operating lease liabilities 10,171 3,197 Income taxes payable 1,493 — Contingent consideration — 4,657 Total liabilities 35,575 27,657 Stockholders’ Equity: Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,337,758 and 12,137,080, respectively and outstanding 9,394,066 and 9,234,575, respectively 124 122 Additional paid-in capital 206,120 202,239 Treasury stock, at cost – 2,983,692 and 2,902,505 shares, respectively (89,612) (88,277)Retained earnings 8,983 6,207 Total Westwood Holdings Group, Inc. stockholders' equity 125,615 120,291 Noncontrolling interest in consolidated subsidiary 2,060 2,041 Total equity 127,675 122,332 Total liabilities and stockholders’ equity$163,250 $149,989

WESTWOOD HOLDINGS GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Year ended December 31, 2025 2024 Cash flows from operating activities: Net income$7,077 $2,211 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 501 602 Amortization of intangible assets 3,945 4,148 Net change in unrealized (appreciation) depreciation on investments (1,999) (790)Stock-based compensation expense 5,148 5,537 Deferred income taxes (208) (1,518)Non-cash lease expense 1,015 1,115 Fair value change of contingent consideration — 4,881 Changes in operating assets and liabilities: Accounts receivable (2,298) (59)Other assets (1,673) (1,227)Accounts payable and accrued liabilities 1,171 283 Compensation and benefits payable 2,702 1,385 Income taxes receivable and payable 1,788 (90)Other liabilities (1,148) (1,402)Net sales of trading securities 6,390 6,046 Contingent consideration (4,442) — Net cash provided by operating activities 17,969 21,122 Cash flows from investing activities: Purchases of investments (3,131) (3,500)Purchases of property and equipment (86) (109)Additions to internally developed software (449) (1,004)Net cash used in investing activities (3,666) (4,613)Cash flows from financing activities: Purchases of treasury stock — (1,348)Restricted stock returned for payment of taxes (1,335) (939)Payment of contingent consideration in acquisition (201) (10,357)Cash dividends (5,365) (5,440)Net cash used in financing activities (6,901) (18,084)Net change in cash and cash equivalents 7,402 (1,575)Cash and cash equivalents, beginning of period 18,847 20,422 Cash and cash equivalents, end of period$26,249 $18,847 Supplemental cash flow information: Cash paid during the period for income taxes$1,019 $3,431 Right-of-use assets obtained in exchange for operating lease liabilities$8,133 $— Accrued dividends$2,701 $2,466

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. Although gains and losses from changes in the fair value of contingent consideration are non-cash, we do not add or subtract those back when calculating Economic earnings because gains and losses on changes in the fair value of contingent consideration are considered regular following an acquisition. 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.

Three Months Ended December 31,
2025 September 30,
2025 December 31,
2024Income attributable to Westwood Holdings Group, Inc.$1,863 $3,699 $2,056 Stock-based compensation expense 1,223 1,303 1,216 Intangible amortization 802 1,061 1,063 Tax benefit from goodwill amortization 136 136 (97)Tax impact of adjustments to GAAP income (748) (485) (861)Economic Earnings$3,276 $5,714 $3,377 Earnings per share$0.21 $0.41 $0.23 Stock-based compensation expense 0.14 0.15 0.14 Intangible amortization 0.07 0.11 0.13 Tax benefit from goodwill amortization 0.02 0.02 (0.01)Tax impact of adjustments to GAAP income (0.08) (0.05) (0.10)Economic EPS$0.36 $0.64 $0.39 Diluted weighted average shares 9,003,337 8,941,347 8,756,976

Year Ended December 31, 2025 2024 Income attributable to Westwood Holdings Group, Inc.$7,058 $2,215 Stock-based compensation expense 5,148 5,537 Intangible amortization 3,945 4,148 Tax benefit from goodwill amortization 533 340 Tax impact of adjustments to GAAP income (2,388) (5,275)Economic Earnings$14,296 $6,965 Earnings per share$0.79 $0.26 Stock-based compensation expense 0.58 0.65 Intangible amortization 0.45 0.49 Tax benefit from goodwill amortization 0.06 0.04 Tax impact of adjustments to GAAP income (0.27) (0.62)Economic EPS$1.61 $0.82 Diluted weighted average shares 8,885,580 8,515,779