WESTWOOD HOLDINGS GROUP INC
For the period ended Mar 31, 2026. Filed Apr 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 30, 2026
WHG$18.63+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0001165002-25-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001165002-26-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 111 previous paragraphs and 97 current paragraphs.
78 unchanged; 17 reworded; 2 added; 13 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Employee compensation and benefits. Employee compensation and benefits for the three months ended March 31, 2026 increased compared to the three months March 31, 2025 primarily due to higher incentive compensation costs.
Current report
Realized gains on private investments. Realized gains on private investments related to our first quarter 2026 sale of NBHC stock.
Removed paragraphs (13)
Previous report
(Gain) loss from change in fair value of contingent consideration
Previous report
(Gain) loss from change in fair value of contingent consideration consists of fair value adjustments related to contingent consideration from our 2022 acquisition of Salient Partners, L.P. (the "Salient Acquisition"), with gains representing reductions in value and losses representing increases in value.
Previous report
Nine months ended September 30, 2025 compared to thenine months ended September 30, 2024
Previous report
The $1.3 billion increase in AUM for the nine months ended September 30, 2024 was due to market appreciation of $1.9 billion offset by net outflows of $0.6 billion. Net outflows were primarily related to our LargeCap Value strategy.
Previous report
Westwood funds. Westwood fund expenses for the three months ended September 30, 2025 increased compared to the three months September 30, 2024 primarily due to increased administration and distribution expenses related to our ETFs, driven by higher fund assets.
Previous report
Loss from change in fair value of contingent consideration. In 2024 we recorded a loss of $1.8 million upon remeasurement of contingent consideration due to positive changes in growth projections following asset appreciation and asset flows in the period.
Previous report
Net change in unrealized appreciation (depreciation) on private investments. In 2025 we recorded an unrealized gain of approximately $2.0 million for our investment in TXSE following observable price changes.
Previous report
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024
Previous report
Westwood funds. Westwood fund expenses for the nine months ended September 30, 2025 increased compared to the three months September 30, 2024 primarily due to increased administration and distribution expenses related to our ETFs, driven by higher fund assets.
Previous report
Information technology. Information technology costs for the nine months ended September 30, 2025 increased $1.1 million compared to the nine months ended September 30, 2024 primarily due to additional investment resource tools and software licenses.
Previous report
Loss from change in fair value of contingent consideration. In 2024 we recorded a loss of $3.7 million upon remeasurement of contingent consideration from the 2022 Salient Acquisition primarily due to positive changes in growth projections and revised asset flow expectations.
Previous report
Net change in unrealized appreciation (depreciation) on private investments. In 2025 we recorded an unrealized gain of approximately $2.0 million for our investment in TXSE following observable price changes.
Previous report
Income tax provision. Our effective income tax rate nine months ended September 30, 2025 approximated the 21% statutory rate. Our effective tax rate for the nine months ended September 30, 2024 differed from the 21% statutory rate for 2024 primarily due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.
Reworded paragraphs (17)
Previous wording
We manage investment assets and provide services for our clients through our subsidiaries, Westwood Management Corp., Westwood Advisors, L.L.C. and Salient Advisors, L.P. and Broadmark Asset Management LLC (each of which is an SEC-registered investment advisor and referred to hereinafter together as "Westwood Management") and Westwood Trust. Westwood Management provides investment advisory services to institutional investors, a family of mutual funds called the Westwood Funds®, other mutual funds, individuals and clients of Westwood Trust.
Current wording
We manage investment assets and provide services for our clients through our subsidiaries, Westwood Management Corp., Westwood Advisors, L.L.C., Salient Advisors, L.P. ("Salient Advisors") and Broadmark Asset Management LLC ("Broadmark"), (each of which is a registered investment adviser ("RIA") registered with the Securities and Exchange Commission ("SEC"), and Salient Capital, L.P., ("SCLP") an SEC-registered broker-dealer and Financial Industry Regulatory Authority ("FINRA") member, collectively referred to hereinafter together as "Westwood Management") and Westwood Trust. Westwood Holdings Group, founded in 1983, through Westwood Management, provides investment advisory services to institutional investors, a family of mutual funds called the Westwood Funds®, other mutual funds, individual investors and clients of Westwood Trust. Westwood Trust, founded as a state-chartered trust company in 1974, provides trust, custodial and investment management services through the use of commingled funds and individual securities to institutions and high net worth individuals.
Previous wording
Our revenues are generally derived from fees based on a percentage of AUM and AUA, and Westwood Management and Westwood Trust collectively had AUM of approximately $17.3 billion and AUA of approximately $1.0 billion at September 30, 2025. We have established a track record of delivering competitive, risk-adjusted returns for our clients.
Current wording
Our revenues are generally derived from fees based on a percentage of AUM and AUA, and Westwood Management and Westwood Trust collectively had AUM of approximately $17.3 billion and AUA of approximately $0.9 billion at March 31, 2026. We have established a track record of delivering competitive, risk-adjusted returns for our clients.
Previous wording
Expenses for Westwood funds relate to our marketing, distribution and administration of the Westwood Funds®mutual funds and ETFs.
Current wording
Expenses for Westwood funds relate to our marketing, distribution and administration of the Westwood Funds®mutual funds and Westwood ETFs.
Previous wording
Firm-wide assets under management of $18.3 billion at September 30, 2025 consisted of $17.3 billion of AUM and $1.0 billion of AUA.
Current wording
Firm-wide assets under management of $18.3 billion at March 31, 2026 consisted of $17.3 billion of AUM and $0.9 billion of AUA.
Previous wording
AUM increased $0.5 billion to $17.3 billion at September 30, 2025 compared with $16.8 billion at September 30, 2024. The average of beginning and ending AUM ("average AUM") for the third quarter of 2025 was $17.3 billion compared to $16.3 billion for the third quarter of 2024.
Current wording
AUM increased $0.3 billion to $17.3 billion at March 31, 2026 compared with $17.0 billion at March 31, 2025. The average of beginning and ending AUM ("average AUM") for the first quarter of 2026 was $16.9 billion compared to $16.8 billion for the first quarter of 2025.
Previous wording
(3)Mutual Funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, institutional investors and wealth management accounts.
Current wording
(3)Mutual Funds & ETFs include the Westwood Funds®, a family of mutual funds and Westwood ETFs, for which Westwood Management or Salient Advisors serves as advisor. These funds are available to individual investors, institutional investors and wealth management accounts.
Previous wording
The change in AUM for the three months ended September 30, 2025 was due to market appreciation of $0.7 billion offset by net outflows of $0.7 billion. Net outflows were primarily related to our LargeCap Value strategy.
Current wording
The change in AUM for the three months ended March 31, 2026 was due to market appreciation of $0.8 billion offset by net outflows of $0.1 billion. Net outflows were primarily related to our SmallCap Value and LargeCap Value strategies.
Previous wording
The $0.7 billion increase in AUM for the nine months ended September 30, 2025 was due to market appreciation of $1.0 billion offset by net outflows of $0.3 billion. Net outflows were primarily related to our LargeCap Value strategy.
Current wording
The change in AUM for the three months ended March 31, 2025 was due to net inflows of $0.6 billion offset by market depreciation of $0.3 billion. Net inflows were primarily related to our SmallCap Value strategy.
Previous wording
Total revenues. Total revenues for the three months ended September 30, 2025 were higher than revenues for the three months ended September 30, 2024 due to higher average AUM.
Current wording
Total revenues. Total revenues for the three months ended March 31, 2026 were higher than revenues for the three months ended March 31, 2025 due to higher average AUM and growth from our ETFs and private energy secondaries funds.
Previous wording
Information technology. Information technology costs for the three months ended September 30, 2025 increased compared to the three months September 30, 2024 primarily due to additional software subscription fees.
Current wording
Professional services. Professional services costs for the three months ended March 31, 2026 increased compared to the three months ended March 31, 2025 primarily due to additional legal expenses.
Previous wording
Income tax provision. Our effective income tax rate three months ended September 30, 2025 approximated the 21% statutory rate. Our effective tax rate differed from the 21% statutory rate for the third quarter of 2024 primarily due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.
Current wording
Income tax provision. Our effective income tax rate differed from the 21% statutory rate for the three months ended March 31, 2026 and March 31, 2025 due to permanent differences related to executive compensation and the impact of state and local taxes.
Previous wording
Historically we have funded our operations and cash requirements with cash generated from operating activities. We may also use cash from operations to pay dividends to our stockholders or for deferred contingent consideration payments. We had no debt as of September 30, 2025 and December 31, 2024. The changes in net cash provided by operating activities generally reflect changes in earnings plus the effects of non-cash items and changes in working capital, including liquidation of investments used to cover current liabilities. Changes in working capital, especially accounts receivable and accounts payable, are generally the result of timing differences between collection of fees billed and payment of operating expenses.
Current wording
Historically we have funded our operations and cash requirements with cash generated from operating activities. We may also use cash from operations to pay dividends to our stockholders, for deferred contingent consideration payments, or for providing seed capital for certain investments. We had no debt as of March 31, 2026 and December 31, 2025. The changes in net cash provided by operating activities generally reflect changes in earnings plus the effects of non-cash items and changes in working capital, including liquidation of investments used to cover current liabilities. Changes in working capital, especially accounts receivable and accounts payable, are generally the result of timing differences between collection of fees billed and payment of operating expenses.
Previous wording
We had cash and liquid investments of $39.2 million and $44.6 million as of September 30, 2025 and December 31, 2024, respectively.
Current wording
We had cash and liquid investments of $34.2 million and $44.1 million as of March 31, 2026 and December 31, 2025, respectively.
Previous wording
During the nine months ended September 30, 2025, cash flow provided by operating activities was $10.9 million, which included net sales of trading securities of $7.0 million, reductions in compensation and benefits payable of $2.1 million and contingent consideration of $4.4 million following the final payment for the revenue retention earn-out. During the nine months ended September 30, 2024, cash flow provided by operating activities was $12.2 million, which included net sales of trading securities of $6.3 million and a reduction in compensation and benefits payable of $1.3 million.
Current wording
During the three months ended March 31, 2026, cash flow used in operating activities included net sales of equity investments of $6.1 million and reductions in compensation and benefits payable of $9.0 million. During the three months ended March 31, 2025, cash flow used in operating activities was $4.9 million, which included net sales of investments of $8.0 million and reductions in compensation and benefits payable of $8.5 million and contingent consideration of $4.4 million following the final payment for the revenue retention earn-out.
Previous wording
Cash flow used in investing activities during the nine months ended September 30, 2025 was related to the purchase of investments and internally developed software. Cash flow used in investing activities during the nine months ended September 30, 2024 was related to the purchase of investments.
Current wording
Cash flow provided by investing activities during the three months ended March 31, 2026 was related to the net sales of investments, return of capital from investments and purchases of property and equipment. Cash flow used in investing activities during the three months ended March 31, 2025 was related to the purchase of investments and internally developed software.
Previous wording
Cash flows used in financing activities of $5.7 million for the nine months ended September 30, 2025 reflected the payment of dividends, restricted stock returned for the payment of taxes and deferred contingent consideration payments. Cash flows used in financing activities of $8.3 million for the nine months ended September 30, 2024 reflected the payment of dividends, deferred contingent consideration payments, purchases of treasury stock and restricted stock returned for the payment of taxes.
Current wording
Cash flows used in financing activities of $2.9 million for the three months ended March 31, 2026 reflected the payment of dividends and restricted stock returned for the payment of taxes. Cash flows used in financing activities of $3.1 million for the three months ended March 31, 2025 reflected the payment of dividends, deferred contingent consideration payments and restricted stock returned for the payment of taxes.
Previous wording
"Investments, at fair value" in the accompanying Condensed Consolidated Balance Sheets. At September 30, 2025, Westwood Trust had approximately $13.6 million in excess of its minimum capital requirement.
Current wording
"Investments, at fair value" in the accompanying Condensed Consolidated Balance Sheets. At March 31, 2026, Westwood Trust had approximately $8.8 million in excess of its minimum capital requirement.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Westwood Trust provides trust and custodial services and participation in common trust funds to institutions and high net worth individuals.
Previous report — wording carried elsewhere
The change in AUM for the three months ended September 30, 2024 was due to market appreciation of $1.1 billion offset by net outflows of $0.1 billion.
Previous report — wording carried elsewhere
Total revenues. Total revenues for the nine months ended September 30, 2025 were higher than revenues for the nine months ended September 30, 2024 due to higher average AUM.