Latest Quarterly Results (Q4 2025)
On an adjusted basis, revenues for the quarter were $188.90 million. Adjusted operating income was $61.12 million, and adjusted net income attributable to the company was $44.55 million. Adjusted diluted earnings per share for the quarter were $6.50. The difference between GAAP and adjusted results reflected acquisition-related costs, amortization, and other non-recurring items.
Financial Trends
For the full year 2025, operating results reflected lower average assets under management compared with the prior year, partially offset by expense discipline. Assets under management at December 31, 2025, were $159.5 billion, compared with average assets under management of $165.2 billion for the year. Net flows for the quarter were negative $8.1 billion, while exchange-traded funds recorded positive net flows of $0.6 billion.
Business & Operations Update
Management reported continued progress in expanding private markets and alternative investment capabilities during the year. During the quarter, the company completed strategic investments aimed at diversifying revenue sources and strengthening long-term growth prospects. Cash and investments at period end were sufficient to support these initiatives while maintaining flexibility for capital returns. Virtus also continued share repurchase activity during the quarter, reflecting its capital allocation priorities.
M&A or Strategic Moves
During the fourth quarter, Virtus announced a majority-interest agreement to acquire Keystone National Group, with additional deferred consideration tied to performance milestones. The company also completed a minority investment in Crescent Cove Advisors. Both transactions were positioned as strategic investments designed to enhance private markets distribution and broaden product offerings.
Equity Analyst Commentary
Discussion during the earnings call focused on trends in assets under management, net flows across equity strategies, and the timing of contributions from recent acquisitions. Management addressed questions regarding integration plans, expense management, and the impact of market conditions on fee revenue.
Guidance & Outlook — what to watch for
Items to watch include the pace of asset flows, particularly within equity strategies, integration progress related to recent acquisitions, private markets fundraising activity, and the sustainability of adjusted operating margins under varying market conditions.
Performance Summary
Virtus reported GAAP revenues of $208.02 million and GAAP net income of $35.45 million for the fourth quarter. On an adjusted basis, revenues were $188.90 million, and adjusted earnings per share were $6.50. Assets under management declined year over year, and shares moved lower following the earnings release.