Virtus Investment Partners, Inc. (NYSE: VRTS) today reported financial results for the three months ended June 30, 2025.

Financial Highlights (Unaudited)

(in millions, except per share data or as noted)

Three Months Ended

Three Months Ended

6/30/2025

6/30/2024

Change

3/31/2025

Change

U.S. GAAP Financial Measures

Revenues

$

210.5

$

224.4

(6

%)

$

217.9

(3

%)

Operating expenses

$

165.3

$

180.2

(8

%)

$

181.3

(9

%)

Operating income (loss)

$

45.2

$

44.2

2

%

$

36.6

23

%

Operating margin

21.5

%

19.7

%

16.8

%

Net income (loss) attributable to Virtus Investment Partners, Inc.

$

42.4

$

17.6

141

%

$

28.6

48

%

Earnings (loss) per share - diluted

$

6.12

$

2.43

152

%

$

4.05

51

%

Weighted average shares outstanding - diluted

6.922

7.242

(4

%)

7.073

(2

%)

Non-GAAP Financial Measures (1)

Revenues, as adjusted

$

191.0

$

203.0

(6

%)

$

197.6

(3

%)

Operating expenses, as adjusted

$

131.2

$

137.0

(4

%)

$

143.0

(8

%)

Operating income (loss), as adjusted

$

59.8

$

66.0

(9

%)

$

54.6

10

%

Operating margin, as adjusted

31.3

%

32.5

%

27.6

%

Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted

$

43.3

$

47.3

(8

%)

$

40.5

7

%

Earnings (loss) per share - diluted, as adjusted

$

6.25

$

6.53

(4

%)

$

5.73

9

%

(1) See the information beginning on page 10 for reconciliations to the most directly comparable U.S. GAAP measures and other important disclosures

Earnings Summary

The company presents U.S. GAAP and non-GAAP earnings information in this release. Management believes that the non-GAAP financial measures presented reflect the company’s operating results from providing investment management and related services to individuals and institutions and uses these measures to evaluate financial performance. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Non-GAAP information and reconciliations to the most comparable U.S. GAAP measures can be found beginning on page 10 of this earnings release.

Assets Under Management and Asset Flows

(in billions)

Three Months Ended

Three Months Ended

6/30/2025

6/30/2024

Change

3/31/2025

Change

Ending total assets under management

$

170.7

$

173.6

(2

%)

$

167.5

2

%

Average total assets under management

$

167.0

$

175.2

(5

%)

$

173.6

(4

%)

Total sales

$

5.6

$

6.1

(9

%)

$

6.2

(11

%)

Net flows

$

(3.9

)

$

(2.6

)

50

%

$

(3.0

)

32

%

Total assets under management of $170.7 billion at June 30, 2025 increased sequentially from $167.5 billion due to market performance and positive net flows in exchange-traded funds, partially offset by net outflows in other products. In addition, the company provided services to $1.8 billion of other fee-earning assets that are not included in assets under management.

Total sales of $5.6 billion compared with $6.2 billion in the prior quarter. Institutional sales of $1.3 billion compared with $1.5 billion as higher sales of alternative strategies were offset by lower fixed income and global equities. Retail separate account sales of $1.5 billion declined from $1.7 billion primarily due to lower small/mid-cap equity. Open-end fund sales of $2.8 billion compared with $3.0 billion as higher sales of large-cap and international were offset by other strategies.

Net flows of ($3.9) billion compared with ($3.0) billion in the prior quarter. Institutional net flows of ($2.2) billion compared with ($1.2) billion due to a higher level of redemptions primarily in large-cap growth. Retail separate account net flows of ($0.8) billion compared with ($0.7) billion with net outflows led by small/mid-cap strategies. Open-end fund net flows of ($1.0) billion were essentially unchanged from the prior quarter and were largely due to equity strategies.

GAAP Results

Operating income of $45.2 million increased from $36.6 million in the prior quarter reflecting a 9% reduction in operating expenses, partially offset by a 3% decline in revenues due to lower average assets under management. The decrease in operating expenses was primarily due to lower employment expenses which included seasonally higher expenses in the prior quarter, and a decrease in fair value of contingent consideration.

Net income attributable to Virtus Investment Partners, Inc. of $6.12 per diluted share included $0.50 and $0.32 of fair value adjustments to minority interests and contingent consideration, respectively. Net income per diluted share of $4.05 in the prior quarter included ($0.94) of realized and unrealized losses on investments partially offset by $0.35 of fair value adjustments to minority interests.

The effective tax rate of 22% decreased from 31% in the prior quarter, primarily reflecting a decrease in income tax valuation allowances for net unrealized and realized losses compared to the prior quarter.

Non-GAAP Results

Revenues, as adjusted, of $191.0 million decreased 3% from $197.6 million in the prior quarter primarily due to a 4% decrease in average assets under management.

Employment expenses, as adjusted, of $97.2 million decreased from $109.4 million due to prior quarter seasonal expenses and lower variable incentive compensation. Other operating expenses, as adjusted, of $32.0 million increased from $31.3 million due to the $0.9 million annual equity grant to the Board of Directors.

Operating income, as adjusted, of $59.8 million and the related margin of 31.3% increased from $54.6 million and 27.6%, respectively, primarily due to the prior quarter seasonal expenses.

Net income attributable to Virtus Investment Partners, Inc., as adjusted, per diluted share was $6.25, a 9% increase from $5.73 in the prior quarter. The increase primarily reflected the impact of prior quarter seasonal employment expenses.

The effective tax rate, as adjusted, of 26% was essentially unchanged from the prior quarter.

Select Balance Sheet Items and Metrics (Unaudited)

(in millions)

As of

As of

Select Balance Sheet Items

6/30/2025

6/30/2024

Change

3/31/2025

Change

Cash and cash equivalents

$

172.2

$

183.0

(6

%)

$

135.4

27

%

Gross debt (1)

$

234.7

$

252.4

(7

%)

$

235.4

—

%

Contingent consideration (2)

$

37.4

$

63.4

(41

%)

$

40.4

(7

%)

Redeemable noncontrolling interests (3)

$

56.3

$

84.7

(34

%)

$

59.0

(5

%)

Total equity exc. noncontrolling interests

$

896.4

$

868.7

3

%

$

893.7

—

%

Other Metrics

Working capital (4)

$

144.0

$

143.0

1

%

$

137.2

5

%

Net debt (cash) (5)

$

62.5

$

69.4

(11

%)

$

100.0

(38

%)

(1)

Excludes deferred financing costs of $3.4 million, $4.8 million, and $3.7 million, as of June 30, 2025, June 30, 2024, and March 31, 2025, respectively

(2)

Represents estimated revenue participation and other contingent payments

(3)

Excludes redeemable noncontrolling interests of consolidated investment products of $66.8 million, $44.7 million, and $61.6 million as of June 30, 2025, June 30, 2024, and March 31, 2025, respectively

(4)

Defined as cash and cash equivalents plus accounts receivable, net, and deferred compensation related investments less accrued compensation and benefits (excluding those of minority interests), accounts payable and accrued liabilities, dividends payable, as well as debt principal payments and revenue participation obligations due within 12 months

(5)

Defined as gross debt less cash and cash equivalents in accordance with the company's credit agreement

Working capital of $144.0 million at June 30, 2025 increased from $137.2 million at March 31, 2025, as cash earnings more than offset return of capital.

During the quarter, the company repurchased 175,872 shares for $30.0 million.

Gross debt at June 30, 2025 was $234.7 million. Net debt was $62.5 million, or 0.2x EBITDA.

Conference Call and Investor Presentation

Management will host an investor conference call and webcast on Friday, July 25, 2025, at 10 a.m. Eastern to discuss these financial results and related matters. The presentation that will accompany the conference call is available in the Investor Relations section of virtus.com. A replay of the call will be available in the Investor Relations section for at least one year. We routinely post important information for investors on the Investor Relations section of our website and may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. We may also use social media channels to communicate with our investors and the public about our company, our products and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.

U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

Three Months Ended

Three Months Ended

Six Months Ended

6/30/2025

6/30/2024

Change

3/31/2025

Change

6/30/2025

6/30/2024

Change

Revenues

Investment management fees

$

179,476

$

191,652

(6

%)

$

186,091

(4

%)

$

365,567

$

380,012

(4

%)

Distribution and service fees

11,968

13,410

(11

%)

12,753

(6

%)

24,721

27,440

(10

%)

Administration and shareholder service fees

18,048

18,308

(1

%)

18,007

—

%

36,055

36,986

(3

%)

Other income and fees

1,033

1,014

2

%

1,081

(4

%)

2,114

1,988

6

%

Total revenues

210,525

224,384

(6

%)

217,932

(3

%)

428,457

446,426

(4

%)

Operating Expenses

Employment expenses

98,030

105,667

(7

%)

109,093

(10

%)

207,123

220,830

(6

%)

Distribution and other asset-based expenses

21,975

23,695

(7

%)

22,896

(4

%)

44,871

48,043

(7

%)

Other operating expenses

32,564

33,050

(1

%)

33,059

(1

%)

65,623

64,425

2

%

Operating expenses of consolidated investment products

810

2,909

(72

%)

1,000

(19

%)

1,810

3,599

(50

%)

Restructuring expense

—

690

(100

%)

—

N/M

—

1,487

(100

%)

Change in fair value of contingent consideration

(3,014

)

(3,300

)

(9

%)

—

N/M

(3,014

)

(3,300

)

(9

%)

Depreciation expense

2,006

2,270

(12

%)

2,345

(14

%)

4,351

4,298

1

%

Amortization expense

12,944

15,198

(15

%)

12,944

—

%

25,888

30,533

(15

%)

Total operating expenses

165,315

180,179

(8

%)

181,337

(9

%)

346,652

369,915

(6

%)

Operating Income (Loss)

45,210

44,205

2

%

36,595

24

%

81,805

76,511

7

%

Other Income (Expense)

Realized and unrealized gain (loss) on investments, net

3,971

(1,553

)

N/M

(991

)

N/M

2,980

1,863

60

%

Realized and unrealized gain (loss) of consolidated investment products, net

(5,204

)

(12,936

)

(60

%)

(7,649

)

(32

%)

(12,853

)

(11,401

)

13

%

Other income (expense), net

1,137

597

90

%

998

14

%

2,135

1,147

86

%

Total other income (expense), net

(96

)

(13,892

)

(99

%)

(7,642

)

(99

%)

(7,738

)

(8,391

)

(8

%)

Interest Income (Expense)

Interest expense

(4,582

)

(5,611

)

(18

%)

(4,561

)

—

%

(9,143

)

(11,292

)

(19

%)

Interest and dividend income

2,054

2,643

(22

%)

3,016

(32

%)

5,070

6,112

(17

%)

Interest and dividend income of investments of consolidated investment products

46,037

52,385

(12

%)

47,553

(3

%)

93,590

103,500

(10

%)

Interest expense of consolidated investment products

(33,477

)

(41,960

)

(20

%)

(34,559

)

(3

%)

(68,036

)

(81,972

)

(17

%)

Total interest income (expense), net

10,032

7,457

35

%

11,449

(12

%)

21,481

16,348

31

%

Income (Loss) Before Income Taxes

55,146

37,770

46

%

40,402

36

%

95,548

84,468

13

%

Income tax expense (benefit)

12,403

11,748

6

%

12,350

—

%

24,753

20,579

20

%

Net Income (Loss)

42,743

26,022

64

%

28,052

52

%

70,795

63,889

11

%

Noncontrolling interests

(370

)

(8,408

)

(96

%)

595

N/M

225

(16,417

)

N/M

Net Income (Loss) Attributable to Virtus Investment Partners, Inc.

$

42,373

$

17,614

141

%

$

28,647

48

%

$

71,020

$

47,472

50

%

Earnings (Loss) Per Share - Basic

$

6.18

$

2.47

150

%

$

4.12

50

%

$

10.29

$

6.66

55

%

Earnings (Loss) Per Share - Diluted

$

6.12

$

2.43

152

%

$

4.05

51

%

$

10.15

$

6.54

55

%

Cash Dividends Declared Per Common Share

$

2.25

$

1.90

18

%

$

2.25

—

%

$

4.50

$

3.80

18

%

Weighted Average Shares Outstanding - Basic

6,855

7,127

(4

%)

6,955

(1

%)

6,905

7,123

(3

%)

Weighted Average Shares Outstanding - Diluted

6,922

7,242

(4

%)

7,073

(2

%)

6,997

7,264

(4

%)

N/M - Not Meaningful

Assets Under Management - Product and Asset Class

(in millions)

Three Months Ended

6/30/2024

9/30/2024

12/31/2024

3/31/2025

6/30/2025

By Product (period end):

Open-End Funds (1)

$

55,852

$

58,100

$

56,073

$

53,608

$

55,653

Closed-End Funds

9,915

10,432

10,225

10,273

10,481

Retail Separate Accounts (2)

45,672

50,610

49,536

46,920

47,445

Institutional Accounts (3)

62,146

64,600

59,167

56,662

57,131

Total

$

173,585

$

183,742

$

175,001

$

167,463

$

170,710

By Product (average) (4)

Open-End Funds (1)

$

56,692

$

56,731

$

57,905

$

56,104

$

53,742

Closed-End Funds

9,894

10,159

10,452

10,288

10,183

Retail Separate Accounts (2)

46,816

45,672

50,610

49,321

46,637

Institutional Accounts (3)

61,773

63,428

63,121

57,877

56,397

Total

$

175,175

$

175,990

$

182,088

$

173,590

$

166,959

By Asset Class (period end):

Equity

$

99,224

$

106,784

$

100,792

$

93,624

$

96,232

Fixed Income

36,970

39,014

37,696

37,930

38,594

Multi-Asset (5)

21,060

21,619

21,174

20,834

21,430

Alternatives (6)

16,331

16,325

15,339

15,075

14,454

Total

$

173,585

$

183,742

$

175,001

$

167,463

$

170,710

Assets Under Management - Average Management Fees Earned (7)

(in basis points)

Three Months Ended

6/30/2024

9/30/2024

12/31/2024

3/31/2025

6/30/2025

By Product:

Open-End Funds (1)

50.9

49.7

49.5

47.8

46.7

Closed-End Funds

58.6

58.5

58.8

58.5

58.6

Retail Separate Accounts (2)

43.3

43.7

42.6

42.9

42.9

Institutional Accounts (3)(8)

30.7

31.0

31.9

31.8

31.8

All Products (8)

42.2

41.9

42.0

41.7

41.3

(1)

Represents assets under management of U.S. retail funds, global funds, and exchange-traded funds

(2)

Includes investment models provided to managed account sponsors

(3)

Represents assets under management of institutional separate and commingled accounts including structured products

(4)

Calculated according to revenue earning basis that includes average daily, weekly, monthly beginning balance, monthly ending balance, or quarter beginning and ending balance, as well as quarter beginning or ending spot balance

(5)

Consists of multi-asset offerings not included in equity, fixed income, and alternatives

(6)

Consists of real estate securities, managed futures, event-driven, infrastructure, and other strategies

(7)

Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude the impact of consolidated investment products and are net of revenue-related adjustments. Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed through to third-party client intermediaries for services to investors in sponsored investment products

(8)

Includes performance-related fees, in basis points, earned during the three months ended as follows:

6/30/2024

9/30/2024

12/31/2024

3/31/2025

6/30/2025

Institutional Accounts

0.3

0.4

1.0

0.2

0.7

All Products

0.1

0.1

0.3

0.1

0.2

Assets Under Management - Asset Flows by Product

(in millions)

Three Months Ended

Six Months Ended

6/30/2024

9/30/2024

12/31/2024

3/31/2025

6/30/2025

6/30/2024

6/30/2025

Open-End Funds (1)

Beginning balance

$

57,818

$

55,852

$

58,100

$

56,073

$

53,608

$

56,062

$

56,073

Inflows

2,777

3,118

3,049

3,038

2,825

6,253

5,863

Outflows

(4,120

)

(4,143

)

(4,165

)

(4,110

)

(3,806

)

(8,224

)

(7,916

)

Net flows

(1,343

)

(1,025

)

(1,116

)

(1,072

)

(981

)

(1,971

)

(2,053

)

Market performance

(480

)

3,410

(541

)

(1,250

)

3,211

2,080

1,961

Other (2)

(143

)

(137

)

(370

)

(143

)

(185

)

(319

)

(328

)

Ending balance

$

55,852

$

58,100

$

56,073

$

53,608

$

55,653

$

55,852

$

55,653

Closed-End Funds

Beginning balance

$

10,064

$

9,915

$

10,432

$

10,225

$

10,273

$

10,026

$

10,225

Inflows

—

—

1

5

4

—

9

Outflows

(41

)

—

—

(40

)

(2

)

(41

)

(42

)

Net flows

(41

)

—

1

(35

)

2

(41

)

(33

)

Market performance

83

845

(55

)

257

378

322

635

Other (2)

(191

)

(328

)

(153

)

(174

)

(172

)

(392

)

(346

)

Ending balance

$

9,915

$

10,432

$

10,225

$

10,273

$

10,481

$

9,915

$

10,481

Retail Separate Accounts (3)

Beginning balance

$

46,816

$

45,672

$

50,610

$

49,536

$

46,920

$

43,202

$

49,536

Inflows

2,172

2,260

1,816

1,742

1,468

4,545

3,210

Outflows

(1,688

)

(1,829

)

(1,745

)

(2,410

)

(2,264

)

(3,383

)

(4,674

)

Net flows

484

431

71

(668

)

(796

)

1,162

(1,464

)

Market performance

(1,631

)

4,507

(1,145

)

(1,947

)

1,322

1,305

(625

)

Other (2)

3

—

—

(1

)

(1

)

3

(2

)

Ending balance

$

45,672

$

50,610

$

49,536

$

46,920

$

47,445

$

45,672

$

47,445

Institutional Accounts (4)

Beginning balance

$

64,613

$

62,146

$

64,600

$

59,167

$

56,662

$

62,969

$

59,167

Inflows

1,188

1,219

1,574

1,455

1,283

2,922

2,738

Outflows

(2,913

)

(2,349

)

(5,376

)

(2,659

)

(3,455

)

(5,935

)

(6,114

)

Net flows

(1,725

)

(1,130

)

(3,802

)

(1,204

)

(2,172

)

(3,013

)

(3,376

)

Market performance

(549

)

3,790

(1,141

)

(1,170

)

2,844

2,452

1,674

Other (2)

(193

)

(206

)

(490

)

(131

)

(203

)

(262

)

(334

)

Ending balance

$

62,146

$

64,600

$

59,167

$

56,662

$

57,131

$

62,146

$

57,131

Total

Beginning balance

$

179,311

$

173,585

$

183,742

$

175,001

$

167,463

$

172,259

$

175,001

Inflows

6,137

6,597

6,440

6,240

5,580

13,720

11,820

Outflows

(8,762

)

(8,321

)

(11,286

)

(9,219

)

(9,527

)

(17,583

)

(18,746

)

Net flows

(2,625

)

(1,724

)

(4,846

)

(2,979

)

(3,947

)

(3,863

)

(6,926

)

Market performance

(2,577

)

12,552

(2,882

)

(4,110

)

7,755

6,159

3,645

Other (2)

(524

)

(671

)

(1,013

)

(449

)

(561

)

(970

)

(1,010

)

Ending balance

$

173,585

$

183,742

$

175,001

$

167,463

$

170,710

$

173,585

$

170,710

(1)

Represents assets under management of U.S. retail funds, global funds and exchange-traded funds

(2)

Represents open-end and closed-end fund distributions net of reinvestments, the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products, and the use of leverage

(3)

Includes investment models provided to managed account sponsors

(4)

Represents assets under management of institutional separate and commingled accounts including structured products

Non-GAAP Information and Reconciliations

(in thousands except per share data)

The non-GAAP financial measures included in this release differ from financial measures determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earnings generated from providing investment management and related services. Management uses these measures to evaluate the company’s financial performance and operational decision-making. Management believes that these non-GAAP financial measures, when presented together with directly comparable U.S. GAAP measures, are useful to investors and other interested parties to provide additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management. Please see the Notes to Reconciliations on page 13 for additional information on how these measures reflect the company’s operating results. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Also, the non-GAAP financial measures referenced in this release may not be comparable to the similarly titled measures used by other companies.

The following are reconciliations and related notes of the most directly comparable U.S. GAAP measure to each non-GAAP measure:

Three Months Ended

Revenues

6/30/2025

6/30/2024

3/31/2025

Total revenues, GAAP

$

210,525

$

224,384

$

217,932

Consolidated investment products revenues (1)

2,435

2,326

2,575

Investment management fees (2)

(10,006

)

(10,282

)

(10,140

)

Distribution and service fees (2)

(11,969

)

(13,413

)

(12,756

)

Total revenues, as adjusted

$

190,985

$

203,015

$

197,611

Operating Expenses

Total operating expenses, GAAP

$

165,315

$

180,179

$

181,337

Consolidated investment products expenses (1)

(810

)

(2,909

)

(1,000

)

Distributions to minority interests (3)

(745

)

—

193

Distribution and other asset-based expenses (4)

(21,975

)

(23,695

)

(22,896

)

Amortization of intangible assets (5)

(12,944

)

(15,198

)

(12,944

)

Restructuring expense (6)

—

(690

)

—

Deferred compensation and related investments (7)

(531

)

36

107

Acquisition and integration expenses (8)

2,579

2,201

(417

)

Other (9)

325

(2,907

)

(1,359

)

Total operating expenses, as adjusted

$

131,214

$

137,017

$

143,021

Three Months Ended

Operating Income (Loss)

6/30/2025

6/30/2024

3/31/2025

Operating income (loss), GAAP

$

45,210

$

44,205

$

36,595

Consolidated investment products (earnings) losses (1)

3,245

5,235

3,575

Distributions to minority interests (3)

745

—

(193

)

Amortization of intangible assets (5)

12,944

15,198

12,944

Restructuring expense (6)

—

690

—

Deferred compensation and related investments (7)

531

(36

)

(107

)

Acquisition and integration expenses (8)

(2,579

)

(2,201

)

417

Other (9)

(325

)

2,907

1,359

Operating income (loss), as adjusted

$

59,771

$

65,998

$

54,590

Operating margin, GAAP

21.5

%

19.7

%

16.8

%

Operating margin, as adjusted

31.3

%

32.5

%

27.6

%

Income (Loss) Before Taxes

Income (loss) before taxes, GAAP

$

55,146

$

37,770

$

40,402

Consolidated investment products (earnings) losses (1)

(1,808

)

268

(18

)

Distributions to minority interests (3)

745

—

(193

)

Amortization of intangible assets (5)

12,944

15,198

12,944

Restructuring expense (6)

—

690

—

Deferred compensation and related investments (7)

(436

)

545

613

Acquisition and integration expenses (8)

(2,579

)

(2,201

)

417

Other (9)

(325

)

2,907

1,359

Seed capital and CLO investments (gains) losses (10)

(2,097

)

12,175

1,478

Income (loss) before taxes, as adjusted

$

61,590

$

67,352

$

57,002

Income Tax Expense (Benefit)

Income tax expense (benefit), GAAP

$

12,403

$

11,748

$

12,350

Tax impact of:

Amortization of intangible assets (5)

3,404

3,973

3,419

Restructuring expense (6)

—

180

—

Deferred compensation and related investments (7)

(115

)

142

162

Acquisition and integration expenses (8)

(678

)

(575

)

110

Other (9)

43

1,415

(918

)

Seed capital and CLO investments (gains) losses (10)

1,142

725

(67

)

Income tax expense (benefit), as adjusted

$

16,199

$

17,608

$

15,056

Effective tax rate, GAAPA

22.5

%

31.1

%

30.6

%

Effective tax rate, as adjustedB

26.3

%

26.1

%

26.4

%

A

Reflects income tax expense (benefit), GAAP, divided by income (loss) before taxes, GAAP

B

Reflects income tax expense (benefit), as adjusted, divided by income (loss) before taxes, as adjusted

Three Months Ended

Net Income (Loss) Attributable to Virtus Investment Partners, Inc.

6/30/2025

6/30/2024

3/31/2025

Net income (loss) attributable to Virtus Investment Partners, Inc.

$

42,373

$

17,614

$

28,647

Amortization of intangible assets, net of tax (5)

9,514

10,738

9,499

Restructuring expense, net of tax (6)

—

510

—

Deferred compensation and related investments (7)

(321

)

403

451

Acquisition and integration expenses, net of tax (8)

(1,901

)

(1,626

)

307

Other, net of tax (9)

(3,136

)

8,164

53

Seed capital and CLO investments (gains) losses, net of tax (10)

(3,239

)

11,450

1,545

Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted

$

43,290

$

47,253

$

40,502

Weighted average shares outstanding - diluted

6,922

7,242

7,073

Earnings (loss) per share - diluted, GAAP

$

6.12

$

2.43

$

4.05

Earnings (loss) per share - diluted, as adjusted

$

6.25

$

6.53

$

5.73

Administration and Shareholder Services Fees

Administration and shareholder service fees, GAAP

$

18,048

$

18,308

$

18,007

Consolidated investment products fees (1)

25

23

22

Administration and shareholder service fees, as adjusted

$

18,073

$

18,331

$

18,029

Employment Expenses

Employment expenses, GAAP

$

98,030

$

105,667

$

109,093

Distributions to minority interests (3)

(745

)

—

193

Deferred compensation and related investments (7)

(531

)

36

107

Acquisition and integration expenses (8)

(435

)

(1,099

)

(417

)

Other (9)

917

(1,134

)

414

Employment expenses, as adjusted

$

97,236

$

103,470

$

109,390

Other Operating Expenses

Other operating expenses, GAAP

$

32,564

$

33,050

$

33,059

Other (9)

(592

)

(1,773

)

(1,773

)

Other operating expenses, as adjusted

$

31,972

$

31,277

$

31,286

Total Other Income (Expense), Net

Total other income (expense), net GAAP

$

(96

)

$

(13,892

)

$

(7,642

)

Consolidated investment products (1)

4,240

1,492

6,759

Deferred compensation and related investments (7)

(945

)

611

744

Seed capital and CLO investments (gains) losses (10)

(2,097

)

12,175

1,478

Total other income (expense), net as adjusted

$

1,102

$

386

$

1,339

Interest and Dividend Income

Interest and dividend income, GAAP

$

2,054

$

2,643

$

3,016

Consolidated investment products (1)

3,267

3,966

2,642

Deferred compensation and related investments (7)

(22

)

(30

)

(24

)

Interest and dividend income, as adjusted

$

5,299

$

6,579

$

5,634

Three Months Ended

Total Noncontrolling Interests

6/30/2025

6/30/2024

3/31/2025

Total noncontrolling interests, GAAP

$

(370

)

$

(8,408

)

$

595

Consolidated investment products (1)

1,808

(268

)

18

Distributions to minority interests (3)

(745

)

—

193

Amortization of intangible assets (5)

(26

)

(487

)

(26

)

Other (9)

(2,768

)

6,672

(2,224

)

Total noncontrolling interests, as adjusted

$

(2,101

)

$

(2,491

)

$

(1,444

)

Notes to Reconciliations:

1. Consolidated investment products- Revenues and expenses generated by operating activities of mutual funds and collateralized loan obligations (CLOs) that are consolidated in the financial statements. Management believes that excluding these operating activities to reflect net revenues and expenses of the company prior to the consolidation of these products is consistent with the approach of reflecting its operating results from managing third-party client assets.

Revenue Related

2. Investment management/Distribution and service fees- Each of these revenue line items is reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing company sponsored investment products and servicing the client. The amount of fees fluctuates each period, based on a predetermined percentage of the value of assets under management, and varies based on the type of investment product. The specific adjustments are as follows:

Investment management fees - Based on specific agreements, the portion of investment management fees passed through to third-party intermediaries for services to investors in sponsored investment products.

Distribution and service fees - Based on distinct arrangements, fees collected by the company then passed through to third-party client intermediaries for services to investors in sponsored investment products. The adjustment represents all of the company's distribution and service fees that are recorded as a separate line item on the condensed consolidated statements of operations.

Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries.

Expense Related

3. Distributions to minority interests- Earnings allocated and paid to certain limited partners of a majority owned manager are recorded as employment expenses in the financial statements. Management believes reclassifying these earnings distributions to noncontrolling interests to reflect these payments as non-operating earnings distributions aids in comparing the company's operating results with other asset managers that do not have majority-owned managers.

4. Distribution and other asset-based expenses - Primarily payments to third-party client intermediaries for providing services to investors in sponsored investment products. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that do not utilize third-party client intermediaries.

5. Amortization of intangible assets - Non-cash amortization expense or impairment expense, if any, attributable to acquisition-related intangible assets, including any portion that is allocated to noncontrolling interests. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that have not engaged in acquisitions.

6. Restructuring expense - Certain non-recurring expenses associated with restructuring the business, including lease abandonment-related expenses and severance costs associated with staff reductions that are not reflective of ongoing earnings generation of the business.

7. Deferred compensation and related investments - Compensation expense, gains and losses (realized and unrealized), and interest and dividend income related to deferred compensation and related balance sheet investments. Market performance of deferred compensation plans and related investments can vary significantly from period to period. Management believes that making this adjustment aids in comparing the Company's operating results with prior periods.

8. Acquisition and integration expenses - Expenses that are directly related to acquisition and integration activities. Acquisition expenses include certain transaction related employment expenses, transaction closing costs, change in fair value of contingent consideration, certain professional fees, and financing fees. Integration expenses include costs incurred that are directly attributable to combining businesses, including compensation, restructuring and severance charges, professional fees, consulting fees, and other expenses. Management believes that making these adjustments aids in comparing the company’s operating results with other asset management firms that have not engaged in acquisitions.

Components of Acquisition and Integration Expenses for the respective periods are shown below:

Three Months Ended

Acquisition and Integration Expenses

6/30/2025

6/30/2024

3/31/2025

Employment expenses

$

435

$

1,099

$

417

Change in fair value of contingent consideration

(3,014

)

(3,300

)

—

Total Acquisition and Integration Expenses

$

(2,579

)

$

(2,201

)

$

417

9. Other - Certain expenses that are not reflective of the ongoing earnings generation of the business. Employment expenses and noncontrolling interests are adjusted to exclude fair value measurements of manager minority interest. Other operating expenses are adjusted for amortization of lease termination fees and transition related expense (benefit). Interest expense is adjusted to remove gains on early extinguishment of debt and the write-off of previously capitalized costs associated with the modification of debt. Income tax expense (benefit) items are adjusted for uncertain tax positions, changes in tax law, valuation allowances, and other unusual or infrequent items not related to current operating results to reflect a normalized effective rate. Management believes that making these adjustments aids in comparing the company’s operating results with prior periods.

Components of Other for the respective periods are shown below:

Three Months Ended

Other

6/30/2025

6/30/2024

3/31/2025

Employment expense fair value adjustments

$

(917

)

$

1,134

$

(414

)

Amortization of lease termination fees

592

1,773

1,773

Tax impact of adjustments

85

(760

)

(359

)

Other discrete tax adjustments

(128

)

(655

)

1,277

Manager minority interest fair value adjustments

(2,768

)

6,672

(2,224

)

Total Other

$

(3,136

)

$

8,164

$

53

Seed Capital and CLO Related

10. Seed capital and CLO investments (gains) losses - Gains and losses (realized and unrealized) of seed capital and CLO investments. Gains and losses (realized and unrealized) generated by investments in seed capital and CLO investments can vary significantly from period to period and do not reflect the company’s operating results from providing investment management and related services. Management believes that making this adjustment aids in comparing the company’s operating results with prior periods and with other asset management firms that do not have meaningful seed capital and CLO investments.

Definitions:

Revenues, as adjusted, comprise the fee revenues paid by clients for investment management and related services. Revenues, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP, namely in excluding the impact of operating activities of consolidated investment products and reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing the product and servicing the client.

Operating expenses, as adjusted, is calculated to reflect expenses from ongoing continuing operations. Operating expenses, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP expenses in that they exclude amortization or impairment, if any, of intangible assets, restructuring and severance, the effect of consolidated investment products, acquisition and integration-related expenses and certain other expenses that do not reflect the ongoing earnings generation of the business.

Operating margin, as adjusted, is a metric used to evaluate efficiency represented by operating income, as adjusted, divided by revenues, as adjusted.

Earnings (loss) per share, as adjusted, represent net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted, divided by weighted average shares outstanding, as adjusted, on either a basic or diluted basis.

Forward-Looking Information

This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “intent,” “plan,” “intend,” “believe,” “anticipate,” “may,” “will,” “should,” “could,” “continue,” “project,” “opportunity,” “predict,” “would,” “potential,” “future,” “forecast,” “guarantee,” “assume,” “likely,” “target” or similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations, assumptions and projections about the company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans, and ability to borrow, for all future periods. All of our forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially.

Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report on Form 10-K, as supplemented by our periodic filings with the Securities and Exchange Commission (the "SEC"), as well as the following risks and uncertainties resulting from: (i) reduction in our assets under management; (ii) financial or business risks from strategic transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) lack of sufficient capital on satisfactory terms; (vii) inability to attract and retain key personnel; (viii) challenges from competition; (ix) adverse developments related to unaffiliated subadvisers; (x) negative changes in key distribution relationships; (xi) interruptions, breaches, or failures of technology systems; (xii) loss on our investments; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or unanticipated tax obligations; (xvii) impediments from certain corporate governance provisions; (xviii) losses or costs not covered by insurance; (xix) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2024 Annual Report on Form 10-K, and our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.

Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the company’s periodic reports filed with the SEC and are available on our website at virtus.com under “Investor Relations.” You are urged to carefully consider all such factors.

The company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or affect any of the forward-looking statements contained in or accompanying this release, such statements or disclosures will be deemed to modify or supersede such statements in this release.

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Federal Reserve låter som väntat styrräntan ligga kvar och böjer sig därmed inte för pressen från Trump. Splittringen inom Fed ökar däremot och framtida sänkningar hänger nu på fredagens jobbrapport. "Ska till ganska kraftiga förändringar på arbetsmarknaden", säger SEB:s Elisabet Kopelman.

Danske Banks chefekonom Susanne Spector om de sjunkande bostadspriserna i Stockholm

31 juli, 13:43

Bopriserna sjönk i huvudstaden: "Läget är skört"

Bostadspriserna i Stockholm sjönk 2,7% i juli jämfört med månaden före. Störst var nedgången för större bostäder på över 100 kvadratmeter.

Times Square i New York, USA

31 juli, 14:52

USA:s inflation steg som väntat

Index för kärninflationen i USA steg 0,3 procent i juni jämfört med föregående månad. Jämfört med samma månad året innan steg den 2,8 procent.

Bistånds- och utrikeshandelsminister Benjamin Dousa

31 juli, 11:04

Regeringen vill att EU fryser handelsavtal med Israel

Sveriges regering vill frysa EU:s handelsavtal med Israel för att öka trycket på landet så att hjälpleveranser kan släppas in i Gaza.

Saab RBS 70 NG.

31 juli, 07:54

Nätmäklarnas sparare säljer Saab – köper rapportförlorare

I rapportsäsongen visade nätmäklarnas kunder ett tydligt mönster: rapportförlorare köptes och vinnare såldes. Handelsbanken och Novo Nordisk toppade köplistan efter kursfall, medan Saab finns bland de mest sålda.

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Stockholmsbörsen nasdaq börs

Igår, 10:01

Börsen lyser rött – Astra Zeneca sjunker

Stockholmsbörsen tappar mark under fredagsmorgonen och handlas tydligt nedåt.

Corem VD Rutger Arnhult

Igår, 09:35

Rutger Arnhult miljonköper aktier i egna bolaget

Rutger Arnhult har den 28 juli genom ägarbolaget M2 Asset Management köpt 300 000 B-aktier i fastighetsbolaget Corem Property där han är vd och storägare.

Börsen aktier

31 juli, 17:56

Tung dag på börsen – Boliden föll efter Trumps tullbesked

Stockholmsbörsen handlades tydligt nedåt på torsdagen i en utveckling som speglar den på ledande europeiska börser.

Trump tullar

31 juli, 17:01

Sista chansen: Länderna som kämpar för att undvika Trump-tullar

Tullpausen är på väg att löpa ut och många av USA:s stora handelspartners står ännu utan avtal. Här är länderna som får hoppas på en sista-minuten deal under torsdagen.

Wall Street

31 juli, 15:32

Starka techrapporter lyfter terminerna på Wall Street

USA-börserna väntas öppna uppåt på torsdagen efter att starka techrapporter från kvällen innan spridit ny optimism på marknaden.