Westwood Holdings Group Inc (WHG) Q4 2025 Earnings Call Highlights: Strong Sales Growth Amidst …

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Sat, February 14, 2026 at 2:00 PM GMT+9 3 min read

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Release Date: February 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Westwood Holdings Group Inc (NYSE:WHG) achieved strong full-year sales growth, increasing from $2.1 billion to $2.5 billion, marking a 20% rise.

The company's ETF franchise exceeded $200 million, with the launch of the Enhanced Income Opportunity ETF contributing to this milestone.

Westwood Holdings Group Inc (NYSE:WHG) closed its second oversubscribed private equity fund, Westwood Energy Secondaries Fund 2, with over $300 million in commitments.

The managed investment solutions team secured its first institutional client, indicating growth in institutional engagement.

The company's multi-asset strategies, such as Credit Opportunities and Income Opportunity, demonstrated exceptional long-term strength, ranking in the top decile among peers.

Negative Points

Westwood Holdings Group Inc (NYSE:WHG) experienced net outflows of $1 billion in assets under management over the year.

The large cap value product struggled, contributing to more than 80% of the outflows, reflecting challenges in a narrow, low-quality market environment.

Fourth quarter income decreased to $1.9 million from $3.7 million in the third quarter, impacted by higher performance-related incentive compensation.

Economic earnings per share decreased from $0.64 in the third quarter to $0.36 in the fourth quarter.

Despite revenue growth, the company faced higher professional service and information technology costs, impacting overall profitability.

Q & A Highlights

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Q: Can you provide more details on the outflows experienced in the fourth quarter? A: Brian Casey, CEO: More than 80% of the outflows were from our large cap value product, which has struggled in recent years due to a narrow, low-quality market environment. Most of these outflows were from one subadvisory client with a fee of less than 20 basis points, so the revenue impact is minimal. We have new clients coming in, including a $200 million client and a $450 million defined contribution plan, which will boost our SMID AUM close to $2 billion.

Q: What are the key achievements and milestones from the past year? A: Brian Casey, CEO: Our ETF franchise now exceeds $200 million, and we closed our second oversubscribed private equity fund with over $300 million in commitments. We secured our first institutional client for managed investment solutions and achieved strong full-year sales growth of 20%, reaching $2.5 billion.

Story Continues  

Q: How did the company’s financial performance fare in the fourth quarter of 2025? A: Terry Forbes, CFO: We reported total revenues of $27.1 million, up from $24.3 million in the third quarter and $25.6 million in the prior year’s fourth quarter. The increase was driven by significant investor interest in our ETFs and private energy secondaries funds. Fourth-quarter income was $1.9 million or $0.21 per share.

Q: What is the outlook for Westwood Holdings Group in 2026? A: Brian Casey, CEO: We anticipate continued market uncertainty but remain confident in our strategic positioning. Our diverse range of strategies, expanding ETF platform, and robust distribution momentum position us for continued growth. We are committed to delivering high-quality investment solutions and creating long-term value for shareholders.

Q: Can you elaborate on the company’s distribution strategy and its performance? A: Brian Casey, CEO: Our distribution team delivered exceptional results, with the institutional channel achieving 36% gross sales growth. The intermediary distribution team also posted a 32% growth, marking our strongest annual performance in several years. Our energy and real asset products resonated well with advisors and clients seeking income and diversification.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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