Core Viewpoint - Abu Dhabi state oil firm ADNOC is anticipated to receive EU approval for its €14.7 billion ($17 billion) acquisition of German chemicals company Covestro in the near future [1] Group 1: Acquisition Details - ADNOC's bid for Covestro amounts to €14.7 billion, which is equivalent to $17 billion [1] - The acquisition is expected to be finalized in the coming weeks, pending EU regulatory approval [1] Group 2: Market Implications - The approval of this acquisition could signify ADNOC's strategic expansion into the chemicals sector, enhancing its portfolio and market presence [1] - Covestro, as a leading chemicals company, may provide ADNOC with valuable assets and technologies, potentially leading to increased revenue streams [1]

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Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $24.3 million, an increase from $23.1 million in Q2 2025 and $23.7 million in Q3 2024, driven by higher average assets under management [14] - Net income for Q3 2025 was $3.7 million, or $0.41 per share, compared to $1 million, or $0.12 per share in Q2 2025, and $0.1 million in Q3 2024 [15] - Economic earnings for Q3 2025 were $5.7 million, or $0.64 per share, compared to $2.8 million, or $0.32 per share in Q2 2025, and $1.1 million, or $0.13 per share in Q3 2024 [15] Business Line Data and Key Metrics Changes - The enhanced midstream income ETF, MDST, surpassed $150 million in assets under management and maintained an annualized indicated dividend yield exceeding 10% [4][10] - The Income Opportunity Fund, WHGIX, received a Morningstar ratings upgrade to four stars and maintained a top decile ranking since inception [4][6] - The private fundraising initiative exceeded the annual goal by 1.5 times through September 30, 2025 [9] Market Data and Key Metrics Changes - Year-to-date net sales improved by 17% compared to last year and by 57% compared to 2023 [8] - The institutional channel experienced negative net flows this quarter, primarily due to sub-advisory business rebalancing [8] - The intermediary channel had success with private fundraising, contributing significantly to overall performance [9] Company Strategy and Development Direction - The company is focusing on expanding its ETF platform and has launched 11 new sector funds to provide investors with more precise control over risk and sector exposure [11] - The strategy emphasizes unlocking opportunities in undervalued segments, particularly small-cap stocks and broader value styles [7] - The company aims to enhance operational efficiencies and reduce costs while evaluating paths to improve services moving into 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding investment opportunities shifting towards undervalued segments as market dynamics evolve [7] - The company anticipates continued stability with existing clients and expects to win more mandates in mid-cap for defined contribution plans [8] - Management acknowledged the disappointing outflows concentrated in the large-cap area but highlighted a strong pipeline for new business totaling $1.6 billion [22] Other Important Information - The Board of Directors approved a regular cash dividend of $0.15 per common share, payable on January 2, 2026 [17] - The company reported a solid financial position with cash and liquid investments totaling $39.2 million and a debt-free balance sheet [16] Q&A Session Summary Question: ETF Success and Future Leverage - The company has worked hard to grow its ETF business through traditional channels and is close to gaining access to one of the largest wirehouse platforms [19][20] Question: Outflows and New Business Pipeline - Management acknowledged the disappointing outflows but emphasized a strong pipeline for new business and successful private fundraising initiatives [22]

Company Overview - Westwood Holdings Group manages \$18.3 billion in AUM, including \$17.3 billion in AUM and \$1.0 billion in AUA as of September 30, 2025[7, 22] - Employees and directors own approximately 33% of the company's equity[6] - The company reported revenues of \$24.3 million and income of \$3.7 million for 3Q 2025[20] Investment Strategy & Allocation - U S Value Equity accounts for 50% of the firm's strategy breakdown[12] - Multi-Asset/Multi-Strategy represents 28% of the strategy breakdown[12] - Wealth strategy accounts for 22% of the strategy breakdown[12] Client & Account Type - Institutional Separate Accounts & Other Managed Accounts comprise 52% of assets[12] - Wealth Management accounts for 25% of assets[12] - Westwood Mutual Funds & ETFs represent 23% of assets[12] Diversity & Inclusion - Approximately 41% of Westwood's employees are women[16] - Women hold 43% of the corporate board member positions[16] - In 2024, about 38% of new team members came from diverse backgrounds[16]

Assets Under Management (AUM) - As of September 30, 2025, the firm-wide assets under management (AUM) totaled approximately $18.3 billion, consisting of $17.3 billion in AUM and $1.0 billion in assets under administration (AUA) [81] - AUM increased by $0.5 billion, or 4%, from $16.8 billion at September 30, 2024, with an average AUM of $17.3 billion for Q3 2025 compared to $16.3 billion for Q3 2024 [97] - Institutional AUM rose by 7% to $9.032 billion from $8.454 billion year-over-year, while Wealth Management AUM decreased by 1% to $4.323 billion, and Mutual Funds AUM increased by 2% to $3.994 billion [98] - For the nine months ended September 30, 2025, AUM increased by $0.7 billion due to market appreciation of $1.0 billion, despite net outflows of $0.3 billion [103] Financial Performance - Total revenues for the three months ended September 30, 2025, increased by 2% to $24.3 million compared to $23.7 million in the same period of 2024 [108] - Net income for the three months ended September 30, 2025, was $3.7 million, a significant increase of 2,245% from $159,000 in the same period of 2024 [108] - Economic Earnings for the three months ended September 30, 2025, were $5.7 million, up 427% from $1.1 million in the same period of 2024 [121] - Economic Earnings per share for the three months ended September 30, 2025, was $0.64, a 392% increase from $0.13 in the same period of 2024 [121] Cash Flow and Liquidity - Cash flow provided by operating activities for the nine months ended September 30, 2025, was $10.9 million, compared to $12.2 million in the same period of 2024 [124] - The company had no debt as of September 30, 2025, maintaining a strong liquidity position with cash and liquid investments of $39.2 million [122] - Future liquidity and capital requirements will depend on various factors, including operational results and capital expenditures, with current cash and short-term investments expected to meet operational needs for at least the next twelve months [129] Expenses and Costs - Employee compensation and benefits expenses decreased by 2% to $13.3 million for the three months ended September 30, 2025, compared to $13.6 million in the same period of 2024 [108] - Westwood fund expenses increased by 38% to $1.1 million for the three months ended September 30, 2025, primarily due to higher administration and distribution expenses related to ETFs [110] Tax and Regulatory Compliance - The effective income tax rate for the three months ended September 30, 2025, approximated the 21% statutory rate [112] - Westwood Trust is required to maintain a minimum restricted capital of $4.0 million as per the Texas Finance Code [127] - As of September 30, 2025, Westwood Trust had approximately $13.6 million in excess of its minimum capital requirement [128] Investment Strategy and Team - The company has established a track record of delivering competitive, risk-adjusted returns for clients, focusing on a "value" investment style [82] - The investment team has an average experience of over 20 years, supporting the firm's investment strategies [82] Market and Accounting Disclosures - There have been no significant changes in critical accounting policies and estimates since December 31, 2024 [130] - Recent accounting guidance is detailed in the Condensed Consolidated Financial Statements included in the Quarterly Report on Form 10-Q [131] - No significant changes in market risk disclosures have occurred since the last Annual Report on Form 10-K for the year ended December 31, 2024 [132] Advisory and Trust Fees - Advisory fees are primarily based on a percentage of AUM and AUA, with performance-based fees generating additional revenues if benchmarks are outperformed [84] - Trust fees are negotiated separately and are generally based on a percentage of AUM, with revenue fully recognized within the quarter [85] Assets Under Advisement - Assets Under Advisement at the end of September 30, 2025, were $966 million, showing a net change of $27 million from the previous quarter [105] Net Outflows and Market Appreciation - For the three months ended September 30, 2025, net outflows were $0.671 billion, primarily related to the LargeCap Value strategy, offset by market appreciation of $0.679 billion [102]

Financial Performance - Third quarter 2025 net income was $3.7 million, a significant increase from $0.1 million in the same quarter last year, driven by higher revenues and unrealized appreciation on private investments[3]. - Total revenues for the third quarter reached $24.3 million, compared to $23.1 million in the second quarter and $23.7 million a year ago, reflecting higher average assets under management (AUM)[3]. - Diluted earnings per share (EPS) for the third quarter were $0.41, up from $0.12 in the second quarter and $0.01 in the third quarter of 2024[4]. - Non-GAAP Economic Earnings for the third quarter were $5.7 million, or $0.64 per share, compared to $2.8 million, or $0.32 per share, in the second quarter[2]. - Net income for the nine months ended September 30, 2025, was $5,237,000, a significant increase from $112,000 in the same period of 2024[15]. - Economic earnings for the nine months ended September 30, 2025, reached $11,020,000, compared to $3,588,000 for the same period in 2024, reflecting a growth of 207%[18]. - Earnings per share for the nine months ended September 30, 2025, was $1.25, up from $0.42 in the same period of 2024, indicating a 196% increase[18]. Assets and Investments - Firmwide assets under management and advisement totaled $18.3 billion, with $17.3 billion in AUM and $1.0 billion in assets under advisement (AUA)[1]. - Total assets increased to $154,046,000 as of September 30, 2025, up from $149,989,000 at December 31, 2024, representing a growth of 2.1%[14]. - Cash and cash equivalents increased to $21,604,000 at the end of the period, compared to $18,847,000 at the beginning, marking a net change of $2,757,000[15]. - Stockholders' equity rose to $125,979,000 as of September 30, 2025, compared to $122,332,000 at December 31, 2024, an increase of 3.3%[14]. - The company’s investments at fair value decreased to $19,729,000 as of September 30, 2025, from $27,694,000 at December 31, 2024, a decline of 28.8%[14]. Cash Flow and Expenses - The company reported a net cash provided by operating activities of $10,942,000 for the nine months ended September 30, 2025, down from $12,214,000 in 2024[15]. - The company incurred stock-based compensation expense of $3,925,000 for the nine months ended September 30, 2025, compared to $4,321,000 in the same period of 2024[18]. Dividends and Shareholder Returns - Westwood declared a cash dividend of $0.15 per common share, payable on January 2, 2026[3]. Investment Products and Strategies - The MDST ETF surpassed $150 million in assets and captured 30% of monthly midstream ETF flows in September[1]. - The company added eleven new Defined Volatility sector ETFs through its partnership with WEBs, enhancing its investment strategy offerings[1]. - Income Opportunity maintained its top decile ranking since inception and received a four-star Morningstar rating upgrade[1].

Core Insights - Westwood Holdings Group, Inc. reported strong performance in Q3 2025, with significant growth in private fund strategies and the MDST ETF reaching $150 million in assets, capturing 30% of monthly midstream ETF flows in September [1][2][5] - The firm surpassed its annual fundraising goal for private funds and launched eleven new Defined Volatility sector ETFs in partnership with WEBs [1][5] - Long-term performance rankings remain solid, with the Income Opportunity strategy maintaining a top decile ranking and receiving a four-star Morningstar rating upgrade [1][5] Financial Performance - Firmwide assets under management and advisement totaled $18.3 billion, with $17.3 billion in AUM and $1.0 billion in AUA [1] - Q3 2025 revenues were $24.3 million, an increase from $23.1 million in Q2 2025 and $23.7 million in Q3 2024 [5][10] - Net income for Q3 2025 was $3.7 million, significantly higher than $1.0 million in Q2 2025 and $0.1 million in Q3 2024 [2][3][5] - Diluted earnings per share (EPS) for Q3 2025 was $0.41, compared to $0.12 in Q2 2025 and $0.01 in Q3 2024 [2][3][5] Economic Earnings - Non-GAAP Economic Earnings for Q3 2025 were $5.7 million, or $0.64 per share, compared to $2.8 million, or $0.32 per share in Q2 2025 and $1.1 million, or $0.13 per share in Q3 2024 [2][3][5] - Economic earnings reflect the company's underlying operating performance and are used for evaluating resource allocation and dividend policy [17][18] Cash and Dividends - As of September 30, 2025, Westwood held $39.2 million in cash and liquid investments, an increase of $6.1 million from Q2 2025 [5] - The company declared a cash dividend of $0.15 per common share, payable on January 2, 2026, to stockholders of record on December 1, 2025 [5][10]

Core Insights - Cumulus Media's Westwood One has appointed Armen Williams as Executive Director of Westwood One Sports 24/7 Programming, effective November 3, 2025, to lead the development of new sports content [1][2] Company Overview - Cumulus Media is an audio-first media company reaching a quarter billion people monthly through 395 radio stations across 84 markets, offering a variety of programming including sports, news, and entertainment [5] - Westwood One Sports is the exclusive network radio partner to the NFL since 1987 and covers major sports events such as NCAA Basketball, U.S. Soccer, and The Masters [6] Leadership and Strategy - Armen Williams brings over 20 years of audio programming experience and has previously held leadership roles at Audacy, Bonneville, and Townsquare, focusing on innovative content strategies and brand presence [3] - Williams will oversee sports talk content, technical operations, social media strategy, and brand management, aiming to create compelling on-air programming with original content and fan interaction [2][4] Future Vision - Williams expressed excitement about the opportunity to build on the foundation created by partners like Audacy and BetMGM, aiming to deliver engaging and authentic sports content [4] - Bruce Gilbert, SVP of Sports / Content & Audience, emphasized Williams' vision as essential for launching a first-class all-sports network at Westwood One [4]

Core Insights - WEBs Investments Inc. has announced updated fund names for its Defined Volatility ETF suite to provide clearer insights into each fund's underlying exposure [1][3] Fund Structure and Strategy - The Defined Volatility ETFs utilize a systematic, rules-based approach that adjusts exposure to major ETFs based on real-time market volatility, increasing exposure when volatility is low and reallocating to cash equivalents or U.S. Treasuries when volatility is high [2] - This adaptive framework aims to help investors manage risk while maintaining market participation through varying conditions [2] Fund Name Changes - The following fund name changes have been implemented: - WEBs SPY Defined Volatility ETF (formerly WEBs Defined Volatility SPY ETF) - WEBs QQQ Defined Volatility ETF (formerly WEBs Defined Volatility QQQ ETF) - WEBs Real Estate XLRE Defined Volatility ETF (formerly WEBs Defined Volatility XLRE ETF) - WEBs Utilities XLU Defined Volatility ETF (formerly WEBs Defined Volatility XLU ETF) - WEBs Communication Services XLC Defined Volatility ETF (formerly WEBs Defined Volatility XLC ETF) - WEBs Technology XLK Defined Volatility ETF (formerly WEBs Defined Volatility XLK ETF) - WEBs Financial XLF Defined Volatility ETF (formerly WEBs Defined Volatility XLF ETF) - WEBs Health Care XLV Defined Volatility ETF (formerly WEBs Defined Volatility XLV ETF) - WEBs Consumer Staples XLP Defined Volatility ETF (formerly WEBs Defined Volatility XLP ETF) - WEBs Consumer Discretionary XLY Defined Volatility ETF (formerly WEBs Defined Volatility XLY ETF) - WEBs Industrials XLI Defined Volatility ETF (formerly WEBs Defined Volatility XLI ETF) - WEBs Materials XLB Defined Volatility ETF (formerly WEBs Defined Volatility XLB ETF) - WEBs Energy XLE Defined Volatility ETF (formerly WEBs Defined Volatility XLE ETF) [3] Company Background - WEBs Investments Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission, focused on developing innovative strategies to democratize access to institutional-caliber investment solutions [5] - The company was founded in 2024 by ETF industry veterans, emphasizing a commitment to innovative investment strategies [5]

Core Viewpoint - Westwood Holdings Group, Inc. is set to release its third quarter 2025 earnings on October 30, 2025, followed by a live audio webcast and conference call [1]. Group 1: Earnings Release - The earnings release will occur after the close of the New York Stock Exchange on October 30, 2025 [1]. - A live audio webcast and conference call will be hosted at 4:30 PM Eastern Time [1]. Group 2: Company Overview - Westwood Holdings Group is a boutique asset management firm offering a variety of actively-managed and outcome-oriented investment strategies, along with trust and wealth services [2]. - The firm has a client-first approach that has fostered strong, long-term relationships over its 40-year history [2]. - Westwood's investment strategies are designed to adapt to changing markets while meeting both short and long-term investor needs [2]. Group 3: Company Culture and Values - The team at Westwood comes from diverse backgrounds, reflecting its origins as a woman-founded firm [3]. - The company's core values include integrity, reliability, responsiveness, adaptability, teamwork, and a focus on driving results [3]. - Westwood is committed to incorporating diverse insights into its services and solutions [3].