Virtus Investment Partners Reports Decline in Revenue and Income in Q1 2026

Virtus Investment Partners, Inc. reported a decline in financial performance for the first quarter of 2026, with total revenues of $199.5 million, down 8.4% from $217.9 million in the same period last year. The decrease was primarily attributed to a reduction in average assets under management, which fell to $149.0 billion, a decline of 11.0% year-over-year. Operating income also decreased significantly, dropping 57.8% to $15.4 million from $36.6 million in the prior year. Net income attributable to Virtus was $7.1 million, or $1.05 per diluted share, compared to $28.6 million, or $4.05 per diluted share, in the first quarter of 2025.

The company experienced notable changes in its balance sheet, with total assets increasing to $4.56 billion as of March 31, 2026, up from $4.29 billion at the end of 2025. This increase was driven by the acquisition of a 56% stake in Keystone National Group, an investment manager specializing in asset-centric private credit, for a total purchase price of $308.2 million. The acquisition added $2.3 billion in assets under management and introduced new capabilities in private markets. However, the company also saw a significant rise in contingent consideration liabilities, which increased to $126.3 million from $39.1 million, reflecting the acquisition's impact.

Operationally, Virtus reported a decrease in investment management fees, which totaled $169.1 million, down 9.1% from the previous year. The decline was primarily due to lower average assets under management across various product lines, including open-end and retail separate accounts. The company also faced net outflows of $8.4 billion during the quarter, compared to net outflows of $3.0 billion in the first quarter of 2025. Despite these challenges, the company noted an increase in other income and fees, which rose 34.9% to $1.5 million, driven by higher marketing fees from ETFs.

Looking ahead, Virtus Investment Partners anticipates continued challenges in the market, particularly with net asset flows and overall market performance. The company is focused on integrating Keystone into its operations and leveraging the new capabilities to enhance its product offerings. Management remains cautious about the impact of market conditions on future performance, emphasizing the need for strategic adjustments to navigate the evolving investment landscape. The company plans to continue monitoring its financial health and operational efficiency as it adapts to these changes.