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Brian Casey, Westwood’s CEO, commented, "We delivered exceptional progress this quarter with assets under management growing to $18.3 billion from $16.8 billion a year ago while achieving several significant milestones including our addition to the Russell 2000 index, thereby enhancing our institutional accessibility, and our MDST ETF surpassed the $100 million threshold. These achievements, combined with our strongest intermediary sales quarter since 2022 and strong performance by numerous investment strategies, demonstrate continued momentum across our diversified platform."

While revenues were flat compared to the first quarter, second quarter net income of $1.0 million compared to the first quarter's net income of $0.5 million on lower operating expenses, primarily related to the timing of compensation and benefits payments. Diluted earnings per share ("EPS") of $0.12 compared to $0.05 for the first quarter. Non-GAAP Economic Earnings of $2.8 million, or $0.32 per share, compared with $2.5 million, or $0.29 per share, in the first quarter.

Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood’s client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors’ short and long-term needs.

Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values - integrity, reliability, responsiveness, adaptability, teamwork and driving results - and underpin our constant pursuit of excellence.

Statements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as “anticipate,” “believe,” “expect,” “could,” and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation: the composition and market value of our AUM and AUA; our ability to maintain our fee structure in light of competitive fee pressures; risks associated with actions of activist stockholders; distributions to our common stockholders have included and may in the future include a return of capital; inclusion of foreign company investments in our AUM; regulations adversely affecting the financial services industry; our ability to maintain effective cyber security; litigation risks; our ability to develop and market new investment strategies successfully; our reputation and our relationships with current and potential customers; our ability to attract and retain qualified personnel; our ability to perform operational tasks; our ability to select and oversee third-party vendors; our dependence on the operations and funds of our

subsidiaries; our ability to maintain effective information systems; our ability to prevent misuse of assets and information in the possession of our employees and third-party vendors, which could damage our reputation and result in costly litigation and liability for our clients and us; our stock is thinly traded and may be subject to volatility; competition in the investment management industry; our ability to avoid termination of client agreements and the related investment redemptions; the significant concentration of our revenues in a small number of customers; we have made and may continue to make business combinations as a part of our business strategy, which may present certain risks and uncertainties; our relationships with investment consulting firms; our ability to identify and execute on our strategic initiatives; our ability to declare and pay dividends; our ability to fund future capital requirements on favorable terms; our ability to properly address conflicts of interest; our ability to maintain adequate insurance coverage; our ability to maintain an effective system of internal controls; and the other risks detailed from time to time in Westwood’s SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2024 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, Westwood is not obligated to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.


	Three Months Ended
	June 30, 2025		March 31, 2025		June 30, 2024
REVENUES:
Advisory fees:
Asset-based	$	17,955	$	17,731	$	17,139

Trust fees	5,069		5,429		5,227

Other, net	96		92		322
Total revenues	23,120		23,252		22,688
EXPENSES:
Employee compensation and benefits	13,472		14,501		13,638
Sales and marketing	657		760		755
Westwood mutual funds	957		897		855
Information technology	2,704		2,667		2,350
Professional services	1,486		1,613		1,450
General and administrative	2,976		2,882		3,011

Loss from change in fair value of contingent consideration	—		—		4,807

Total expenses	22,252		23,320		26,866
Net operating income (loss)	868		(68)		(4,178)


Net investment income	343		383		548
Other income	257		277		224

Income (loss) before income taxes	1,468		592		(3,406)
Income tax provision	437		115		(1,193)
Net income (loss)	$	1,031	$	477	$	(2,213)




Less: income (loss) attributable to noncontrolling interest	12		(1)		30
Income (loss) attributable to Westwood Holdings Group, Inc.	$	1,019	$	478	$	(2,243)
Earnings (loss) per Westwood Holdings Group, Inc. share:
Basic	$	0.12	$	0.06	$	(0.27)
Diluted	$	0.12	$	0.05	$	(0.27)
Weighted average shares outstanding:
Basic	8,404,859		8,253,912		8,218,596
Diluted	8,813,606		8,781,743		8,218,596
Economic Earnings	$	2,792	$	2,514	$	(508)
Economic EPS	$	0.32	$	0.29	$	(0.06)
Dividends declared per share	$	0.15	$	0.15	$	0.15


	Six Months Ended
	June 30, 2025		June 30, 2024
REVENUES:
Advisory fees:
Asset-based	$	35,686	$	33,956

Trust fees	10,498		10,340

Other, net	188		1,124
Total revenues	46,372		45,420
EXPENSES:
Employee compensation and benefits	27,973		28,349
Sales and marketing	1,417		1,383
Westwood mutual funds	1,854		1,576
Information technology	5,371		4,640
Professional services	3,099		2,939
General and administrative	5,858		5,912

Loss from change in fair value of contingent consideration	—		1,858

Total expenses	45,572		46,657
Net operating income (loss)	800		(1,237)


Net investment income	726		1,003
Other income	534		409

Income before income taxes	2,060		175
Income tax provision	552		222
Net income (loss)	$	1,508	$	(47)




Less: income (loss) attributable to noncontrolling interest	11		(100)
Income attributable to Westwood Holdings Group, Inc.	$	1,497	$	53
Earnings per share:
Basic	$	0.18	$	0.01
Diluted	$	0.17	$	0.01
Weighted average shares outstanding:
Basic	8,329,803		8,158,812
Diluted	8,798,092		8,438,431
Economic Earnings	$	5,306	$	2,504
Economic EPS	$	0.60	$	0.30
Dividends declared per share	$	0.30	$	0.30

(unaudited)


	June 30, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	15,403	$	18,847
Accounts receivable	15,331		14,453
Investments, at fair value (amortized cost of $18,316 and $26,788)	19,768		27,694
Investments under measurement alternative	11,747		10,747
Equity method investments	4,197		4,250
Income taxes receivable	167		295
Other assets	7,076		6,780
Goodwill	39,501		39,501
Deferred income taxes	2,356		2,244
Operating lease right-of-use assets	9,997		2,559
Intangible assets, net	20,035		21,668
Property and equipment, net of accumulated depreciation of $8,716 and $8,424	701		951
Total assets	$	146,279	$	149,989
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	5,304	$	6,413
Dividends payable	2,430		2,466
Compensation and benefits payable	5,719		10,924
Operating lease liabilities	10,468		3,197


Contingent consideration	—		4,657
Total liabilities	23,921		27,657

Stockholders’ Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,391,817 and 12,137,080, respectively and outstanding 9,408,125 and 9,234,575, respectively	124		122
Additional paid-in capital	203,594		202,239
Treasury stock, at cost – 2,983,692 and 2,902,505, respectively	(89,612)		(88,277)

Retained earnings	6,200		6,207
Total Westwood Holdings Group, Inc. stockholders’ equity	120,306		120,291
Noncontrolling interest in consolidated subsidiary	2,052		2,041
Total equity	122,358		122,332
Total liabilities and stockholders’ equity	$	146,279	$	149,989


	Six Months Ended June 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	1,508	$	(47)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	257		326
Amortization of intangible assets	2,082		2,074
Net change in unrealized (appreciation) depreciation on investments	137		(1,004)

Stock-based compensation expense	2,622		2,912
Deferred income taxes	(112)		(47)
Non-cash lease expense	694		546



Fair value change of contingent consideration	—		1,858

Changes in operating assets and liabilities:
Accounts receivable	(878)		70
Other assets	(296)		2
Accounts payable and accrued liabilities	(1,139)		(814)
Compensation and benefits payable	(5,205)		(4,217)
Income taxes receivable	128		(740)
Other liabilities	(795)		(664)
Net sales of trading securities	7,842		11,430
Contingent consideration	(4,442)		—
Net cash provided by operating activities	2,403		11,685
CASH FLOWS FROM INVESTING ACTIVITIES:



Purchases of property and equipment	(6)		(24)
Purchases of investments	(1,000)		(1,500)
Additions to internally developed software	(449)		—


Net cash used in investing activities	(1,455)		(1,524)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	—		(1,075)

Restricted stock returned for payment of taxes	(1,335)		(940)

Payment of contingent consideration in acquisition	(201)		(1,815)
Cash dividends	(2,856)		(2,983)
Net cash used in financing activities	(4,392)		(6,813)

NET CHANGE IN CASH AND CASH EQUIVALENTS	(3,444)		3,348
Cash and cash equivalents, beginning of period	18,847		20,422
Cash and cash equivalents, end of period	$	15,403	$	23,770
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	$	535	$	1,008
Accrued dividends	$	2,430	$	2,176


Operating lease assets obtained in exchange for operating lease liabilities	$	8,133	$	—

As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic earnings (loss) and Economic earnings (loss) per share. We provide these measures in addition to, not as a substitute for, income attributable to Westwood Holdings Group, Inc. and earnings per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic earnings (loss) and Economic earnings (loss) per share to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP income attributable to Westwood Holdings Group, Inc. or earnings per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP.

We define Economic earnings (loss) as income (loss) attributable to Westwood Holdings Group, Inc. plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic earnings (loss) because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. Although gains and losses from changes in the fair value of contingent consideration are non-cash, we do not add or subtract those back when calculating Economic earnings (loss) because gains and losses on changes in the fair value of contingent consideration are considered regular following an acquisition. In addition, we do not adjust Economic earnings (loss) for tax deductions related to restricted stock expense or amortization of intangible assets. Economic earnings per share represents Economic earnings (loss) divided by diluted weighted average shares outstanding.


	Three Months Ended
	June 30, 2025		March 31, 2025		June 30, 2024
Income (loss) attributable to Westwood Holdings Group, Inc.	$	1,019	$	478	$	(2,243)
Stock-based compensation expense	1,295		1,327		1,397

Intangible amortization	1,037		1,045		1,032

Tax benefit from goodwill amortization	136		124		156
Tax impact of adjustments to GAAP income	(695)		(460)		(850)
Economic earnings (loss)	$	2,792	$	2,514	$	(508)
Earnings (loss) per share	$	0.12	$	0.05	$	(0.27)
Stock-based compensation expense	0.15		0.15		0.17

Intangible amortization	0.11		0.13		0.12

Tax benefit from goodwill amortization	0.02		0.01		0.02
Tax impact of adjustments to GAAP income	(0.08)		(0.05)		(0.10)
Economic earnings (loss) per share	$	0.32	$	0.29	$	(0.06)
Diluted weighted average shares	8,813,606		8,781,743		8,218,596

			Six Months Ended
			June 30, 2025		June 30, 2024
Income attributable to Westwood Holdings Group, Inc.			$	1,497	$	53
Stock-based compensation expense			2,622		2,912

Intangible amortization			2,082		2,074

Tax benefit from goodwill amortization			260		281
Tax impact of adjustments to GAAP income			(1,155)		(2,816)
Economic earnings			$	5,306	$	2,504
Earnings per share			$	0.17	$	0.01
Stock-based compensation expense			0.30		0.35

Intangible amortization			0.23		0.24

Tax benefit from goodwill amortization			0.03		0.03
Tax impact of adjustments to GAAP income			(0.13)		(0.33)
Economic earnings per share			$	0.60	$	0.30
Diluted weighted average shares			8,798,092		8,438,431