Silvercrest Asset Management Reports Revenue Growth but Declining Profitability in Q3 2025

Silvercrest Asset Management Group Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a modest increase in revenue but a notable decline in profitability compared to the previous year. For the three months ended September 30, 2025, total revenue reached $31.3 million, a 2.9% increase from $30.4 million in the same period of 2024. The growth was primarily driven by a 2.3% rise in management and advisory fees, which totaled $30.1 million, and a 17.6% increase in family office services revenue, amounting to $1.2 million. However, net income attributable to Silvercrest fell to $618,000, down from $2.3 million in the prior year, reflecting a net income margin of 3.5%, compared to 12.3% in 2024.

In the nine-month period ending September 30, 2025, total revenue increased by 1.8% to $93.4 million, up from $91.7 million in 2024. Management and advisory fees contributed $89.9 million, a 1.6% increase year-over-year, while family office services revenue rose by 8.2% to $3.5 million. Despite this revenue growth, net income for the nine months decreased to $5 million from $7.9 million in 2024, indicating a decline in profitability amid rising operational costs.

Operationally, Silvercrest's assets under management (AUM) increased by 7.1% to $37.6 billion as of September 30, 2025, compared to $35.1 billion a year earlier. This growth was attributed to market appreciation of $2.3 billion and client inflows of $5.6 billion, although it was partially offset by outflows of $5.4 billion. The firm reported a total of 8,240,149 Class A shares outstanding, a decrease from 9,503,000 shares a year prior, primarily due to share repurchase activities.

The company’s expenses also rose significantly, with total expenses for the third quarter increasing by 15.4% to $30 million, driven by a 16.8% rise in compensation and benefits expenses, which totaled $21.7 million. For the nine-month period, total expenses increased by 9.4% to $83.2 million, with compensation and benefits expenses accounting for a substantial portion of this increase. The firm noted that the rise in expenses was largely due to merit-based salary increases and higher bonus accruals.

Looking ahead, Silvercrest remains focused on enhancing its investment strategies and client services to attract new clients and retain existing ones. The firm anticipates that its ongoing operational improvements and strategic initiatives will support future growth in AUM and revenue, despite the challenges posed by market conditions and competitive pressures.