Associated Capital Group, Inc. reported its financial results for the second quarter and first half of 2025, revealing a decline in revenues and an increase in net income compared to the same periods in 2024. For the three months ended June 30, 2025, total revenues were $2.2 million, down from $2.6 million in the prior year. The company generated $4.3 million in total revenues for the first half of 2025, compared to $5.6 million for the same period in 2024. Despite the revenue decline, net income attributable to shareholders increased significantly to $18.6 million, or $0.88 per share, from $3.0 million, or $0.14 per share, in the second quarter of 2024. For the first half of 2025, net income was $26.3 million, up from $16.8 million in the previous year.
The company's financial performance was impacted by a notable increase in investment gains, which reached $27.1 million in the second quarter of 2025, compared to a loss of $0.2 million in the same quarter of 2024. This increase was primarily driven by the performance of investments in merger arbitrage funds. However, investment advisory and incentive fees decreased, reflecting lower average assets under management (AUM), which were $1.3 billion at the end of June 2025, down from $1.4 billion at the end of 2024. The decline in AUM was attributed to market conditions and lower investor inflows.
In terms of operational developments, Associated Capital Group's total expenses rose to $10.2 million in the second quarter of 2025, compared to $6.3 million in the same quarter of 2024. This increase was largely due to higher compensation expenses, which amounted to $5.3 million, driven by variable compensation linked to management and incentive fee revenues. The company also reported a management fee expense of $2.8 million for the second quarter, a significant increase from $0.4 million in the prior year, reflecting the variable nature of this expense tied to performance.
Looking ahead, Associated Capital Group remains focused on leveraging its financial resources to pursue strategic objectives, including potential acquisitions and the development of new investment strategies. The company ended the second quarter with approximately $899.2 million in cash and investments, providing a solid foundation for future growth. The management expressed optimism about the potential for increased revenues as market conditions stabilize and investment performance improves, although they acknowledged the ongoing uncertainty in the global economic landscape.
About Associated Capital Group, Inc.
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