Westwood Holdings Reports 2% Revenue Growth to $23.1 Million in Q2 2025

Westwood Holdings Group, Inc. reported its financial results for the second quarter of 2025, revealing total revenues of $23.1 million, a 2% increase from $22.7 million in the same period last year. For the first half of 2025, revenues reached $46.4 million, up from $45.4 million in the first half of 2024. The increase in revenue was primarily driven by a rise in average assets under management (AUM), which grew to approximately $17.3 billion as of June 30, 2025, compared to $15.8 billion a year earlier. The company also reported a net income of $1.0 million for the quarter, a significant recovery from a net loss of $2.2 million in the prior year’s quarter.

In terms of expenses, Westwood Holdings saw a notable decrease, with total expenses falling to $22.3 million from $26.9 million year-over-year. This reduction was attributed to lower employee compensation and benefits costs, which decreased by 1% to $13.5 million, and a significant drop in the loss from changes in fair value of contingent consideration, which was eliminated in the current quarter compared to a loss of $4.8 million in the previous year. The company’s effective income tax rate for the quarter was impacted by permanent differences related to executive compensation.

Operationally, Westwood Holdings reported a slight decline in trust fees, which fell to $5.1 million from $5.2 million year-over-year. However, advisory fees from asset-based services increased by 5% to $18.0 million, reflecting a strong performance in the advisory segment. The company’s AUM growth was supported by market appreciation and net inflows, particularly in its SmallCap Value strategy, which contributed to a net increase of $0.7 billion in AUM for the first half of 2025.

Looking ahead, Westwood Holdings remains focused on expanding its investment strategies and enhancing its service offerings to attract new clients. The company has emphasized its commitment to maintaining competitive, risk-adjusted returns for its clients while managing operational costs effectively. With a solid cash position of $15.4 million as of June 30, 2025, and no debt, Westwood Holdings is well-positioned to navigate market challenges and pursue growth opportunities in the investment management sector. The company declared a quarterly cash dividend of $0.15 per share, payable on October 1, 2025, reflecting its ongoing commitment to returning value to shareholders.