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Virtus Investment Partners (VRTS)
NYSE:VRTS
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Virtus Investment Partners
(NYSE:VRTS)
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Rating:70Neutral
Price Target:
$179.00
▲(21.84% Upside)
Action:ReiteratedDate:12/19/25
Virtus Investment Partners shows a solid financial position with strong profitability and cash flow improvements. However, high leverage and revenue decline pose risks. The stock's low valuation and high dividend yield are attractive, while recent corporate events and strategic acquisitions provide a positive outlook. Technical indicators suggest neutral momentum, and the earnings call reflects a balanced view of strengths and challenges.
Positive Factors
ETF Segment Growth
The significant growth in the ETF segment indicates strong market demand and effective product offerings, contributing to long-term revenue stability.
Strategic Acquisitions
The acquisition of Keystone National Group expands Virtus' offerings into private markets, enhancing its capabilities and potentially driving future earnings growth.
Improving Cash Flow
Improved cash flow growth enhances liquidity, providing the company with greater financial flexibility to invest in growth opportunities and manage debt.
Negative Factors
High Leverage
High leverage can increase financial risk and limit the company's ability to invest in growth, potentially impacting long-term financial stability.
Revenue Decline
Declining revenue growth indicates challenges in maintaining market share and could pressure profitability if not addressed.
Net Outflows
Significant net outflows suggest challenges in retaining assets under management, which could affect future revenue and growth prospects.
Virtus Investment Partners (VRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$956.83M
Dividend Yield5.41%
Average Volume (3M)73.11K
Price to Earnings (P/E)7.1
Beta (1Y)0.99
Revenue Growth-3.07%
EPS Growth18.00%
CountryUS
Employees805
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)6.50
Shares Outstanding6,754,405
10 Day Avg. Volume101,810
30 Day Avg. Volume73,110
Financial Highlights & Ratios
PEG Ratio-2.79
Price to Book (P/B)1.74
Price to Sales (P/S)1.73
P/FCF Ratio-408.51
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit2.02
Enterprise Value/Ebitda2.20
Forecast
1Y Price Target
$164.50Price Target Upside11.97% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Virtus Investment Partners Business Overview & Revenue Model
Company DescriptionVirtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.
How the Company Makes MoneyVirtus Investment Partners generates revenue primarily through management fees, which are charged based on the assets under management (AUM) in its investment products. These fees are typically a percentage of the AUM and vary depending on the type and performance of the funds. Additionally, the company earns performance fees on certain investment products that exceed specified benchmarks. Another revenue stream includes distribution fees and commissions from sales of its mutual funds and ETFs. Strategic partnerships with investment managers enhance its product offerings and can lead to increased AUM, further driving revenue. Overall, the combination of management and performance fees, along with distribution revenues, forms the core of Virtus's financial performance.
Virtus Investment Partners Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Neutral
The call reflected a mixed picture: significant near-term challenges from large net outflows and equity style headwinds materially reduced AUM and pressured quarterly earnings metrics, but the firm demonstrated offsetting strengths — robust ETF momentum, product launches, strategic private-market investments (Keystone and Crescent Cove), disciplined expense control, share repurchases, and a strong liquidity position. Management emphasized long-term conviction in its quality strategies and diversification efforts while noting encouraging early Q1 flow signals in ETFs and fixed income.Q4-2025 Updates
Positive Updates
ETF Growth and Strong ETF Flows
ETF AUM rose to $5.2 billion, up $500 million sequentially and up 72% year-over-year; ETFs generated $600 million of positive net flows in the quarter and continue to show double-digit organic growth.
Product Innovation and Distribution Expansion
Launched three new actively managed ETFs in the quarter (including growth opportunities and dividend strategies), now have 25 ETFs total, with additional active ETF launches planned (Stone Harbor, Duff & Phelps, Silvent) and filings for interval funds and retail SMAs.
Strategic M&A into Private Markets
Announced pending acquisition of 56% of Keystone National (asset-based private credit, ~$2.5 billion AUM) and completed a 35% minority investment in Crescent Cove (venture growth/venture debt, >$1 billion AUM) to broaden private market capabilities and distribution opportunities.
Solid Balance Sheet and Liquidity
Ended quarter with $386 million cash & equivalents, an undrawn $250 million revolver, de minimis net leverage ($13 million net debt) and gross debt/EBITDA of 1.3x; anticipating ~1.2x net leverage at March 31 after Keystone closing.
Share Repurchases and Capital Return
Repurchased ~60,000 shares for $10 million in the quarter and $60 million for the full year (347,000 shares, ~5% of beginning shares), demonstrating ongoing share repurchase activity alongside dividend policy.
Strong Long-Term Investment Performance (Fixed Income & Alternatives)
Three-year outperformance: 76% of fixed income AUM and 60% of alternatives AUM beat benchmarks; ten-year outperformance: 77% fixed income, 71% alternatives; for mutual funds ten-year: 87% of fixed income funds and 65% of equity funds beat peer median.
Expense Management
Employment expenses as adjusted decreased 3% to $95.8 million and other operating expenses as adjusted decreased to $30.2 million, helping partially offset lower average AUM.
Negative Updates
Large Net Outflows and AUM Decline
Total net outflows were $8.1 billion in Q4 versus $3.9 billion in Q3; assets under management fell to $159.5 billion at December 31 from $169 billion the prior quarter (≈5.6% decline).
Equity Style Headwinds Driving Redemptions
Outflows were almost entirely driven by quality-oriented equity strategies (represent ~50% of AUM); institutional net outflows of $3.0 billion and retail separate account net outflows of $2.5 billion were largely due to redemptions from quality domestic/global large cap and small/SMID cap equity strategies.
Operating and EPS Pressure
Operating income as adjusted declined to $61.1 million from $65.0 million; operating margin fell to 32.4% (down 60 basis points sequentially) and adjusted diluted EPS declined 3% to $6.50 from $6.69.
Fee Rate Compression and Lower Management Fees
Investment management fees as adjusted were $168.9 million, down 4% due to lower average AUM and a modestly lower average fee rate (40.6 bps vs 41.1 bps prior quarter); near-term fee rate modeling 41–42 bps.
Concentrated Partial Redemptions
75% of gross outflows in the quarter were partial redemptions rather than full terminations, indicating substantial client rebalancing away from higher-fee active/quality strategies and potential vulnerability to further outflows.
Near-Term Cash Obligations Related to M&A
First-quarter cash usage will include annual incentive payments, an expected ~$22 million revenue participation payment, and a $200 million closing payment for Keystone National, which will materially draw on available liquidity in Q1.
Retail and Institutional Headwinds Persisting into Q1
U.S. retail funds continued to face headwinds into early Q1 (although January sales and net flows showed improvement), and institutional known redemptions continue to exceed known wins, indicating uncertain near-term flow recovery.
Company Guidance
The company provided detailed modeling and near-term guidance: AUM was $159.5B at 12/31 (average AUM down 3% to $165.2B) with ETF AUM $5.2B (up $0.5B sequentially, +72% YoY); Q4 total sales were $5.3B (vs $6.3B Q3) and total net outflows $8.1B (vs $3.9B), driven largely by equity outflows (fixed income modestly negative ~$0.1B; alternatives essentially breakeven; ETFs +$0.6B). Investment management fees (adjusted) were $168.9M (avg. fee rate 40.6 bps; normalize ~40.9 bps); for modeling use 41–42 bps in Q1 and 43–45 bps thereafter (one month of Keystone in Q1). Operating income (adjusted) was $61.1M, operating margin 32.4% (down 60 bps), EPS (adjusted) $6.50; employment expense (adjusted) $95.8M (50.7% of revenues; model 49–51% in Q1, 50–52% thereafter), other opex $30.2M (model $30–32M Q1, $31–33M longer term). Balance sheet/capital items: cash & equivalents $386M, $250M revolver undrawn, gross debt/EBITDA 1.3x, net debt $13M; Q4 buybacks ~60k shares for $10M (FY buybacks $60M, ~347k shares, ~5% of beginning shares); expected Q1 cash uses include ~$22M revenue participation and the $200M Keystone closing payment, with anticipated net leverage ~1.2x EBITDA at 3/31; non‑controlling interests ~$1.5M in Q1 and an effective tax rate moving from 25.3% (Q4) to ~23–24% beginning Q2.Virtus Investment Partners Financial Statement Overview
Summary
Virtus Investment Partners demonstrates strong profitability margins and improving cash flow, but faces challenges with high leverage and declining revenue. The company needs to focus on enhancing revenue growth and managing debt levels for long-term stability.Income Statement
Virtus Investment Partners shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, but the company maintains healthy gross and net profit margins at 52.84% and 15.59%, respectively. The EBIT and EBITDA margins are strong, reflecting efficient operations. However, the negative revenue growth rate of -1.22% in the TTM period is a concern, indicating potential challenges in revenue generation.72
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.74, which suggests significant leverage and potential financial risk. However, the return on equity (ROE) is reasonable at 15.11%, indicating effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.65
Positive
Cash Flow
The cash flow statement shows a substantial improvement in free cash flow growth at 121.31% in the TTM period, which is a positive sign for liquidity. The operating cash flow to net income ratio is low at 0.26, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 0.82, suggesting effective cash management.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 873.90M | 902.82M | 841.49M | 881.72M | 974.67M | 603.23M |
| Gross Profit | 461.77M | 470.23M | 436.74M | 510.46M | 616.44M | 335.93M |
| EBITDA | 424.71M | 460.20M | 433.77M | 325.85M | 474.08M | 300.08M |
| Net Income | 136.24M | 121.75M | 130.62M | 117.54M | 208.13M | 79.96M |
Balance Sheet | ||||||
| Total Assets | 3.91B | 3.99B | 3.68B | 3.95B | 3.93B | 3.47B |
| Cash, Cash Equivalents and Short-Term Investments | 461.33M | 399.58M | 340.33M | 588.53M | 585.54M | 333.49M |
| Total Debt | 2.52B | 2.47B | 2.25B | 2.34B | 2.30B | 2.39B |
| Total Liabilities | 2.88B | 2.99B | 2.71B | 3.02B | 2.96B | 2.63B |
| Stockholders Equity | 918.70M | 897.49M | 863.93M | 817.02M | 828.30M | 711.14M |
Cash Flow | ||||||
| Free Cash Flow | 69.57M | -3.82M | 228.34M | 126.09M | 659.89M | -227.15M |
| Operating Cash Flow | 77.44M | 1.75M | 237.16M | 132.67M | 665.73M | -226.10M |
| Investing Cash Flow | -17.56M | -16.95M | -129.73M | -27.47M | -175.03M | 8.68M |
| Financing Cash Flow | 90.21M | 74.95M | -356.11M | -102.06M | -244.40M | 235.33M |
Virtus Investment Partners Technical Analysis
Negative
146.91
Price Trends
158.92
Negative
163.13
Negative
172.25
Negative
Market Momentum
-5.60
Negative
44.11
Neutral
67.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTS, the sentiment is Negative. The current price of 146.91 is below the 20-day moving average (MA) of 150.56, below the 50-day MA of 158.92, and below the 200-day MA of 172.25, indicating a bearish trend. The MACD of -5.60 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 67.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTS.
Virtus Investment Partners Risk Analysis
Virtus Investment Partners disclosed 19 risk factors in its most recent earnings report. Virtus Investment Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Virtus Investment Partners Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.79B | 13.85 | 18.35% | 8.93% | ― | -12.92% | |
74 Outperform | $4.35B | 10.93 | 34.09% | 2.46% | 9.32% | 53.51% | |
73 Outperform | $774.75M | 25.36 | 10.40% | 4.56% | 81.45% | -26.75% | |
70 Outperform | $8.83B | 14.55 | 21.77% | 0.01% | 1.08% | 8.24% | |
70 Neutral | $956.83M | 7.09 | 15.07% | 5.41% | -3.07% | 18.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.88B | 23.86 | 7024.00% | 0.08% | 21.53% | 42.18% |
* Financial Sector Average
VRTS
Virtus Investment Partners
138.39
-32.68
-19.10%
AMG
Affiliated Managers
291.29
125.44
75.63%
AB
AllianceBernstein
38.41
3.84
11.10%
FHI
Federated Hermes
54.68
17.73
47.96%
AAMI
Acadian Asset Management
52.44
27.54
110.59%
VINP
Vinci Partners Investments
12.41
3.06
32.82%
Virtus Investment Partners Corporate Events
Business Operations and StrategyM&A Transactions
Virtus Investment Partners Acquires Stake in Crescent Cove
Positive
Dec 16, 2025
On December 16, 2025, Virtus Investment Partners acquired a 35% minority interest in Crescent Cove Advisors, a San Francisco-based firm specializing in private capital solutions for middle market technology companies. This strategic acquisition enhances Virtus’ offerings by adding a differentiated private markets capability focused on lending to high-growth technology sectors, marking a significant milestone for both companies.
The most recent analyst rating on (VRTS) stock is a Sell with a $168.31 price target. To see the full list of analyst forecasts on Virtus Investment Partners stock, see the VRTS Stock Forecast page.
Business Operations and StrategyM&A Transactions
Virtus Investment Partners Acquires Keystone National Group
Positive
Dec 5, 2025
On December 5, 2025, Virtus Investment Partners announced an agreement to acquire a majority interest in Keystone National Group, an investment manager specializing in asset-backed private credit. This acquisition, expected to close in the first quarter of 2026, will expand Virtus’ offerings into private markets, enhancing its capabilities with Keystone’s differentiated asset-backed lending strategies. The transaction, valued at $200 million with potential additional payments, is anticipated to be accretive to earnings in 2026 and will allow Keystone to maintain its investment autonomy and brand identity while leveraging Virtus’ extensive distribution network.
The most recent analyst rating on (VRTS) stock is a Hold with a $174.00 price target. To see the full list of analyst forecasts on Virtus Investment Partners stock, see the VRTS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.