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Silvercrest Asset Management Group Inc. Reports Q3 2025 Results

globenewswire.com
SAMG The company's discretionary assets under management increased, and they added new client accounts, indicating a positive outlook.

NEW YORK, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter ended September 30, 2025.

Business Update

Discretionary assets under management (“AUM”), which primarily drives the firm’s top-line revenue, increased $687 million during the third quarter, primarily due to beneficial equity markets. Silvercrest added $46.4 million in organic new client accounts during the third quarter and has added $564 million in new client accounts through the third quarter of 2025. Despite overall negative flows during the quarter, closed accounts were immaterial, and new client account flows remain on pace to register one of the stronger levels of organic new client flows over the past several years. Silvercrest has added approximately $2.0 billion in organic new client accounts year-over-year. We are primarily focused on organic new client acquisition and discretionary AUM as a result of our previously announced and ongoing heavy investments in growing the business.

Discretionary AUM now stands at $24.3 billion, which is a 3% sequential quarterly increase and an increase of 8% year-over-year. Assuming supportive markets and continued business development, we hope discretionary AUM will exceed all-time highs in the coming quarters. Total AUM at the end of the third quarter did hit a new high for the firm at $37.6 billion. Of that total, reported non-discretionary AUM at quarter-end comprised $13.3 billion. These non-discretionary AUM are associated with only 4% of total revenue, mostly comprising fixed fee reporting and family-office services. These assets have more than doubled over the past few years, which artificially lowers the apparent average basis points we receive for advising on AUM. To better relay the average basis points of our asset management and advisory businesses, we expect in 2026 to adjust how the firm reports non-discretionary AUM. This will substantially lower our non-discretionary AUM on a one-time basis without any revenue effect, providing a clearer picture of the business.

Barring short-term market volatility, the increase in AUM bodes well for future revenue, as Silvercrest primarily bills quarterly in advance. As previously announced and emphasized, Silvercrest has embarked on significant strategic investments to promote growth opportunities. As it takes time for those investments – primarily in intellectual capital and head count -- to bear fruit, our earnings and Adjusted EBITDA 1 are substantially lower than the steady-state business and reflect our concerted effort to invest capital to support long-term strategic priorities.

Our strategic initiatives highlight Silvercrest in both the institutional and wealth markets. The firm continues to invest in talent across the firm to drive new growth and successfully transition the business toward the next generation. Our new business pipeline remains robust, in particular with regards to our new Global Value Equity strategy.

Also as previously discussed, Silvercrest will continue to adjust our interim compensation ratio to match important investments in the business as long as we have compelling opportunities to organically grow the firm and build our return on invested capital. With important initiatives for marketing in Europe, Oceania, and Asia, as well as in U.S.-based personnel, our compensation ratio will remain elevated over the foreseeable future.

We previously announced a new buyback program of $25.0 million on May 23, 2025. As of the end of the third quarter of 2025, we have repurchased approximately $16 million worth of shares. Our strong balance sheet supports ongoing capital returns, our substantial dividend, as well as our growth initiatives. Silvercrest also previously received shareholder approval to increase the number of shares issuable under our equity incentive plan. We expect to begin rewarding shares to further motivate our professionals in the near future.

On October 29, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.21 per share of Class A common stock. The dividend will be paid on or about December 19, 2025 to stockholders of record as of the close of business on December 12, 2025.

Third Quarter 2025 Highlights

The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.

AUM at $37.6 Billion

Silvercrest’s discretionary AUM increased by $1.7 billion, or 7.5%, to $24.3 billion at September 30, 2025, from $22.6 billion at September 30, 2024. Silvercrest’s total AUM increased by $2.5 billion, or 7.1%, to $37.6 billion at September 30, 2025, from $35.1 billion at September 30, 2024. The increase in total AUM was attributable to market appreciation of $2.3 billion and net client inflows of $0.2 billion.

Silvercrest’s discretionary assets under management increased by $0.6 billion, or 2.5%, to $24.3 billion at September 30, 2025, from $23.7 billion at June 30, 2025. The increase was attributable to market appreciation of $1.0 billion partially offset by net client outflows of $0.4 billion. Silvercrest’s total AUM increased by $0.9 billion, or 2.5%, to $37.6 billion at September 30, 2025, from $36.7 billion at June 30, 2025. The increase was attributable to market appreciation of $1.5 billion partially offset by net client outflows of $0.6 billion.

Third Quarter 2025 vs. Third Quarter 2024

Revenue increased by $0.9 million, or 2.9%, to $31.3 million for the three months ended September 30, 2025 from $30.4 million for the three months ended September 30, 2024. This increase was driven by market appreciation partially offset by net client outflows.

Total expenses increased by $4.0 million, or 15.4%, to $30.0 million for the three months ended September 30, 2025, from $26.0 million for the three months ended September 30, 2024. Compensation and benefits expense increased by $3.1 million, or 16.8%, to $21.7 million for the three months ended September 30, 2025, from $18.6 million for the three months ended September 30, 2024. The increase was primarily attributable to increases in salaries and benefits of $1.1 million primarily as a result of merit-based increases and newly-hired staff and in the accrual for bonuses of $2.4 million, partially offset by decreases in equity-based compensation of $0.2 million and severance of $0.1 million. General and administrative expenses increased by $0.9 million, or 11.9%, to $8.2 million for the three months ended September 30, 2025, from $7.4 million for the three months ended September 30, 2024. This was primarily attributable to increases in professional fees of $0.9 million, occupancy and related costs of $0.1 million primarily related to new office space in Singapore and recruiting costs of $0.2 million, partially offset by decreases in shareholder expenses of $0.1 million and trade errors of $0.3 million.

Consolidated net income was $1.1 million, or 3.5% of revenue, for the three months ended September 30, 2025, as compared to consolidated net income of $3.7 million, or 12.3% of revenue, for the same period in the prior year. Net income attributable to Silvercrest was $0.6 million, or $0.07 per basic and diluted share, for the three months ended September 30, 2025. Our adjusted net income 1 was $2.4 million, or $0.19 per adjusted basic and diluted share 2, for the three months ended September 30, 2025.

Adjusted EBITDA 1 was $4.5 million, or 14.5% of revenue, for the three months ended September 30, 2025, as compared to $6.3 million, or 20.9% of revenue, for the same period in the prior year.

Nine Months Ended September 30, 2025 vs. Nine Months Ended September 30, 2024

Revenue increased by $1.7 million, or 1.8%, to $93.4 million for the nine months ended September 30, 2025, from $91.7 million for the nine months ended September 30, 2024. This increase was driven by market appreciation partially offset by net client outflows.

Total expenses increased by $7.1 million, or 9.4%, to $83.2 million for the nine months ended September 30, 2025, from $76.0 million for the nine months ended September 30, 2024. Compensation and benefits expense increased by $4.6 million, or 8.5%, to $59.4 million for the nine months ended September 30, 2025, from $54.8 million for the nine months ended September 30, 2024. The increase was primarily attributable to increases in salaries and benefits of $3.8 million primarily as a result of merit-based increases and newly-hired staff and in the accrual for bonuses of $1.2 million, partially offset by decreases in equity-based compensation of $0.2 million and severance expense of $0.2 million. General and administrative expenses increased by $2.5 million, or 11.7%, to $23.7 million for the nine months ended September 30, 2025, from $21.3 million for the nine months ended September 30, 2024. This was primarily attributable to increases in professional fees of $1.4 million, occupancy and related costs of $0.3 million primarily related to new office space in Singapore, portfolio and systems expense of $0.3 million, marketing and advertising costs of $0.1 million, office expenses of $0.1 million, sub-advisory and referral fees of $0.1 million, recruiting costs of $0.1 million, travel and entertainment expenses of $0.3 million and depreciation and amortization of $0.1 million, partially offset by a decrease in trade errors of $0.3 million.

Consolidated net income was $8.2 million, or 8.7% of revenue, for the nine months ended September 30, 2025, as compared to consolidated net income of $13.0 million, or 14.2% of revenue, for the same period in the prior year. Net income attributable to Silvercrest was $5.0 million, or $0.56 per basic share and $0.55 per diluted share for the nine months ended September 30, 2025. Our adjusted net income 1 was $9.6 million, or $0.77 per adjusted basic share and $0.74 per adjusted diluted share 2 for the nine months ended September 30, 2025.

Adjusted EBITDA 1 was $16.8 million, or 18.0% of revenue, for the nine months ended September 30, 2025, as compared to $21.0 million, or 22.9% of revenue, for the same period in the prior year.

Liquidity and Capital Resources

Cash and cash equivalents were $36.1 million at September 30, 2025, compared to $68.6 million at December 31, 2024. As of September 30, 2025, there was nothing outstanding under our term loan and revolving credit facility with City National Bank.

Silvercrest Asset Management Group Inc.’s total equity was $58.9 million at September 30, 2025. We had 8,240,149 shares of Class A common stock outstanding and 4,117,303 shares of Class B common stock outstanding at September 30, 2025.

Non-GAAP Financial Measures

To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

Conference Call

The Company will host a conference call on October 31, 2025, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer and President, and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723. A live, listen-only webcast will also be available via the investor relations section of www.silvercrestgroup.com. An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/.

Forward-Looking Statements

This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; our expectations with respect to deferred tax assets, adverse economic or market conditions; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2024, which is accessible on the U.S. Securities and Exchange Commission’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Silvercrest

Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors.

Silvercrest Asset Management Group Inc.

Contact: Richard Hough

212-649-0601

rhough@silvercrestgroup.com