Westwood Holdings Group (NYSE:WHG) executives highlighted growth in the firm’s exchange-traded fund platform, a successful close for its second energy secondaries private equity fund, and improved full-year earnings during the company’s fourth-quarter 2025 earnings call, while also acknowledging that fourth-quarter outflows—primarily tied to one large-cap value mandate—were a disappointment.
Business milestones and product updates
Chief Executive Officer Brian Casey said the company’s ETF franchise ended 2025 with more than $200 million in assets, including the late-quarter launch of the Westwood Enhanced Income Opportunity ETF (ticker YLDW). Casey said initial acceptance for the new ETF “has been strong.”
In alternatives, Casey said Westwood closed its second oversubscribed private equity fund, Westwood Energy Secondaries Fund II, on Dec. 31, with over $300 million in commitments across the fund and two related co-investment funds—double its initial goal. He added that since launching the firm’s first energy secondaries fund in 2023, Westwood has raised nearly $350 million and invested more than $250 million across its energy secondaries flagship funds and three co-investment funds.
Market backdrop and investment performance commentary
Casey described 2025 as a year in which major equity indices posted records, but investor sentiment shifted in the fourth quarter. He noted the S&P 500 rose less than 3% during the quarter while ending the year up 18%, and he cited consumer confidence “remaining near all-time lows.” Casey said the Federal Reserve cut short-term rates by 75 basis points from September through December amid weakening labor market conditions, while bond markets generated positive total returns for the year as yields declined.
On strategy performance, Casey said several offerings showed resilience across time horizons and asset classes. He cited the firm’s U.S. mid-cap value strategy as “performing well,” with top-third rankings over three-year rolling periods, and said Multi-Asset strategies showed “exceptional long-term strength.” He also highlighted Credit Opportunities as ranking in the top decile among peers over three- and five-year periods, while Income Opportunity posted “competitive peer rankings” and consistent income. In real assets, he said Real Estate Income ranked in the top third over rolling three years, and that the firm’s MLP and midstream strategies delivered strong absolute returns in an environment favorable to energy infrastructure.
Looking ahead, Casey said the company anticipated continued market uncertainty driven by economic indicators and policy developments, and argued that high-quality companies with low debt and strong returns on invested capital could be viewed favorably as investors broaden their focus beyond mega-cap technology.
Distribution results and pipeline
Casey said Westwood’s distribution teams delivered strong results in 2025, pointing to full-year gross sales of $2.5 billion versus $2.1 billion in the prior year, an increase of 20%.
In the institutional channel, he said gross sales grew 36% year over year, with traction across multiple strategies, “particularly in SMID-Cap and Small-Cap Value.” He also referenced defined contribution plans moving through the pipeline with major national consultants.
In the intermediary channel, Casey said full-year gross sales grew 32% versus 2024, which he characterized as the team’s strongest annual performance in several years. He said energy and real asset products resonated with advisors and clients seeking income and diversification, and noted that MDST had reached the asset scale required for approval on major broker-dealer platforms, with additional platform additions expected in 2026.
Casey added that the Managed Investment Solutions team secured its first institutional client, and said the team was holding “constructive conversations” regarding customized solutions, with expectations for additional wins early in 2026.
Wealth division review and service model changes
Casey said Westwood conducted a “deep dive” within its wealth division in 2025 to better align services with industry direction and the firm’s positioning. He said multigenerational families are seeking integrated guidance spanning investments, planning, trust, and legacy needs—an opportunity he said aligns with Westwood’s trust company capabilities and history serving complex Texas families.
He said the firm clarified the wealth division’s purpose and vision, rethought its service model, and began transitioning to a more coordinated, team-based delivery structure aimed at enhancing consistency and scalability. He also said Westwood assessed its competitive position and identified opportunities to strengthen long-term economics by attracting new ultra-high-net-worth families, deepening relationships, and aligning pricing with market standards, calling the effort the early phase of a disciplined, multiyear evolution.
Financial results, AUM, and dividend
Chief Financial Officer Terry Forbes reported fourth-quarter 2025 total revenues of $27.1 million, up from $24.3 million in the third quarter and $25.6 million in the year-ago period. Forbes attributed the sequential increase to “significant investor interest” in ETFs and private energy secondaries funds, along with higher performance fees. Year over year, he said revenues rose primarily due to higher average assets under management and higher revenues from ETFs and private energy secondaries funds, partially offset by lower performance fees.
For full-year 2025, Forbes reported total revenues of $97.8 million compared to $94.7 million in 2024, driven by higher average assets under management and higher revenues from ETFs and private energy secondaries funds.
Forbes said fourth-quarter income was $1.9 million, or $0.21 per share, compared with $3.7 million, or $0.41 per share, in the third quarter. He cited higher performance-related incentive compensation in the fourth quarter and unrealized appreciation on strategic private investments in the third quarter, partially offset by higher revenues. Non-GAAP economic earnings were $3.3 million, or $0.36 per share, versus $5.7 million, or $0.64 per share, in the third quarter.
Compared with the fourth quarter of 2024, Forbes said income declined from $2.1 million, or $0.24 per share, to $1.9 million, or $0.21 per share, as higher revenues and the impact in 2024 of changes in the fair value of contingent consideration were offset by higher performance-related incentive compensation expenses and additional professional services costs. Economic earnings were $3.3 million, or $0.36 per share, versus $3.4 million, or $0.39 per share, in the prior-year quarter.
For the full year, Forbes reported income of $7.1 million compared with $2.2 million in 2024, citing higher revenues, unrealized appreciation on strategic private investments, and the 2024 impact of changes in the fair value of contingent consideration, offset by higher professional service and information technology costs. Economic earnings for 2025 were $14.3 million, or $1.61 per share, compared with $7.0 million, or $0.82 per share, in 2024.
Firm-wide assets under management and advisement totaled $17.4 billion at quarter end, including $16.5 billion of AUM and $0.9 billion of assets under advisement. Forbes said AUM included $8.3 billion in institutional assets (50% of total), $4.3 billion in wealth management assets (26%), and $3.9 billion in mutual fund assets (24%). Over the year, he said AUM experienced net outflows of $1.0 billion and market appreciation of $1.0 billion, while assets under advisement had net outflows of $18 million.
Forbes also said the company ended the quarter with $44.1 million in cash and liquid investments and a debt-free balance sheet. He announced the board approved a regular cash dividend of $0.15 per common share, payable April 1, 2026, to stockholders of record on March 3, 2026.
In closing, Casey acknowledged fourth-quarter outflows, saying more than 80% came from the firm’s Large Cap Value product, which he said has struggled in a “very narrow, low-quality market environment.” He added that more than 80% of those large-cap outflows were tied to a single sub-advisory client with a fee “of less than 20 basis points,” which he said reduced the revenue impact despite the size of the redemption. Casey also said the firm added a new client with $200 million, with another $100 million to $200 million expected over the next couple of months, and that a new defined contribution plan was expected to fund at quarter-end in the first quarter with $450 million into the firm’s SMID strategy.
About Westwood Holdings Group (NYSE:WHG)
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.
