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Westwood Holdings Group Inc (WHG)
NYSE:WHG
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Westwood Holdings Group
(NYSE:WHG)
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Rating:70Outperform
Price Target:
$19.50
▲(15.25% Upside)
Action:ReiteratedDate:02/16/26
The score is primarily supported by improved profitability and a conservatively positioned, debt-free balance sheet, alongside constructive earnings-call highlights on product and distribution momentum. Offsetting this are historically volatile earnings/cash flows, meaningful net outflows, and only mixed near-term technical momentum; valuation is reasonable with dividend support but not notably cheap.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet with meaningful cash/liquids and stable equity gives long-term financial flexibility. It supports dividend payments, funds product launches and platform approvals, and provides a buffer versus market-driven AUM swings, reducing refinancing and solvency risk.
Private funds fundraising success
Strong fundraising in energy secondaries and co-investments diversifies fee streams into higher-margin private strategies. Successful closings validate product-market fit, expand recurring management and carried-fee potential, and deepen institutional relationships that can produce durable revenue.
Distribution & sales momentum
Consistent multi-channel sales growth and a pipeline of large commitments (new $200M client; $450M DC plan) enhance AUM scalability and reduce reliance on any single channel. Durable distribution traction supports steady fee income and the ability to cross-sell new products like ETFs.
Negative Factors
Net AUM outflows
Sustained net outflows materially erode the fee base and make revenue highly sensitive to retention and new sales. Recovering lost AUM requires persistent distribution and performance; absent it, outflows can pressure margins and reduce scale economics over multiple quarters.
Earnings & cash-flow volatility
Volatile earnings and intermittent negative cash flow undermine predictability for investments, dividends, and hiring. This cyclicality increases reliance on fundraising and market appreciation to smooth results, limiting confidence in sustained profit and free-cash-flow generation over the medium term.
Client/product concentration risk
A large portion of outflows tied to one product and a single client signals concentration vulnerability. Such client dependence can cause abrupt AUM and revenue declines if relationships or product performance falter, weakening durable fee stability until diversification progresses.
Westwood Holdings Group (WHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$162.48M
Dividend Yield3.32%
Average Volume (3M)12.79K
Price to Earnings (P/E)21.2
Beta (1Y)0.55
Revenue Growth4.03%
EPS Growth151.19%
CountryUS
Employees151
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.21
Shares Outstanding9,408,130
10 Day Avg. Volume22,890
30 Day Avg. Volume12,791
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.15
Price to Sales (P/S)1.47
P/FCF Ratio8.06
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue1.47
Enterprise Value/Gross Profit1.70
Enterprise Value/Ebitda10.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Westwood Holdings Group Business Overview & Revenue Model
Company DescriptionWestwood Holdings Group, Inc., through its subsidiaries, manages investment assets and provides services for its clients. The company operates in two segments, Advisory and Trust. The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, and the Westwood Funds; and investment sub-advisory services to mutual funds, pooled investment vehicles, and its Trust segment. The Trust segment offers trust and custodial services; and participates in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Holdings Group, Inc. was founded in 1983 and is based in Dallas, Texas.
How the Company Makes MoneyWestwood Holdings Group generates revenue primarily through management fees charged on assets under management (AUM) and performance fees linked to the investment returns of its funds. The company earns management fees as a percentage of the total AUM across its various investment strategies, which can fluctuate based on market conditions and client inflows or outflows. Performance fees are earned when investment returns exceed predetermined benchmarks, providing an additional revenue stream when portfolios perform well. Additionally, WHG may engage in strategic partnerships with other financial institutions and investment platforms, enhancing its distribution capabilities and potentially broadening its client base. Factors contributing to its earnings include market performance, asset allocation strategies, and the company’s reputation for delivering consistent investment results.
Westwood Holdings Group Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strategic and commercial achievements—ETF and private fund milestones, strong distribution momentum (20% full-year sales growth; institutional +36%, intermediary +32%), improved full-year economic earnings and GAAP income, a debt-free balance sheet, and a growing pipeline of large client opportunities. However, the year included notable net outflows of $1.0B (concentrated in Large Cap Value), a weaker fourth quarter versus Q3 driven by incentive compensation and higher professional/IT costs, and modest quarter-over-quarter declines in earnings metrics. On balance, the company demonstrated meaningful progress on strategic initiatives and year-over-year financial improvement while acknowledging short-term flow and quarterly earnings headwinds.Q4-2025 Updates
Positive Updates
ETF Franchise & Product Milestones
ETF franchise exceeded $200,000,000 following the late-quarter launch of Westwood Enhanced Income Opportunity (YLDW). MDST (Enhanced Midstream Income) surpassed $170,000,000 earlier and crossed $200,000,000 by the time of the close, enabling pending approvals on major broker-dealer platforms.
Private Fundraising Success
Closed Westwood Energy Secondaries Fund II with more than $300,000,000 in commitments (double the initial goal). Since 2023, nearly $350,000,000 has been raised across energy secondary funds and ~ $250,000,000+ has been invested across flagship funds and co-investments.
Strong Distribution & Sales Growth
Full-year sales grew to $2,500,000,000 from $2,100,000,000, up 20% year-over-year. Institutional channel gross sales grew 36% vs prior year; intermediary channel gross sales grew 32% vs 2024.
Revenue and Annual Financial Improvement
Fiscal 2025 total revenues were $97,800,000 vs $94,700,000 in 2024 (increase of ~3.3%). Q4 revenues were $27,100,000 (up from Q3 $24,300,000, +11.5% quarter-over-quarter, and up vs prior-year Q4 $25,600,000, +5.9%).
Material Increase in Economic Earnings and Net Income Year-Over-Year
Fiscal 2025 economic earnings totaled $14,300,000, or $1.61 per share, vs $7,000,000, or $0.82 per share in 2024 (economic EPS up ~96%). GAAP income for 2025 was $7,100,000 vs $2,200,000 in 2024 (increase of ~223%).
Scale of Assets Under Management and Strong Balance Sheet
Firm-wide AUM/A totaled $17,400,000,000 (AUM $16,500,000,000; AUA $900,000,000). AUM composition: Institutional $8,300,000,000 (50%), Wealth $4,300,000,000 (26%), Mutual funds $3,900,000,000 (24%). Cash and liquid investments totaled $44,100,000 and the balance sheet is debt-free.
Product Performance & Competitive Positioning
Multiple strategies showed durable performance: SMID Cap in top-third over three-year rolling periods; Credit Opportunities ranked in the top decile over three- and five-year periods; Real Estate Income ranked in the top third; Income Opportunity produced competitive returns while delivering income.
Client Wins and Pipeline Momentum
New client commitments include a $200,000,000 client (with $100–200M additional expected) and a defined contribution plan funding $450,000,000 into SMID, which will bring SMID AUM close to a $2,000,000,000 threshold. Management emphasized a strong pipeline and expected further platform approvals for MDST.
Shareholder Return Action
Board approved a regular cash dividend of $0.15 per common share, payable 04/01/2026 (record date 03/03/2026).
Negative Updates
Fourth Quarter Earnings Weakness vs Prior Quarter
GAAP Q4 net income was $1,900,000, or $0.21 per share, down from Q3 income of $3,700,000, or $0.41 per share (a decrease of ~48.8% in EPS quarter-over-quarter). Non-GAAP economic earnings in Q4 were $3,300,000, or $0.36 per share, down from $5,700,000, or $0.64 per share in Q3 (decline of ~42.2%).
Concentrated Large Cap Value Outflows
More than 80% of the fourth-quarter outflows were from the Large Cap Value product, with the majority coming from a single sub-advisory client (fee <20 basis points). Management noted the product has struggled against a narrow, low-quality market environment, creating short-term AUM pressure.
Higher Costs and Compensation Pressure
The quarter saw higher performance-related incentive compensation and increased professional services and information technology costs, which reduced GAAP and economic earnings relative to prior periods. Q4 results were also impacted by timing and unrealized valuation differences compared with Q3.
Quarterly Economic Earnings Slightly Below Prior-Year Quarter
Q4 economic earnings were $3,300,000 ($0.36 per share) versus $3,400,000 ($0.39 per share) in the prior-year fourth quarter (a modest decline of ~2.9% in economic earnings and ~7.7% in economic EPS).
Net Outflows During the Year
Firm-wide assets under management experienced net outflows of $1,000,000,000 over the year (approximately 5.7% of $17.4B firm AUM), partially offset by market appreciation of $1,000,000,000. Assets under advisement had net outflows of $18,000,000.
Company Guidance
The company guided that, despite expecting continued market uncertainty, it is positioned for growth thanks to strong distribution momentum and product traction: firm-wide AUM/AUA totaled $17.4B (AUM $16.5B, AUA $0.9B) with institutional $8.3B (50%), wealth $4.3B (26%) and mutual funds $3.9B (24%); 2025 revenues were $97.8M (Q4 $27.1M), full-year net income $7.1M ($0.?), Q4 net income $1.9M ($0.21/share) and Q4 economic earnings $3.3M ($0.36/share) with annual economic earnings $14.3M ($1.61/share) vs $7.0M ($0.82) in 2024; firm saw $1.0B of net AUM outflows and $1.0B of market appreciation for the year (AUA outflows $18M), but highlighted product wins and expected inflows — a new client to add $200M now and $100–200M more, plus a defined contribution plan funding $450M in Q1 that should push SMID AUM near the $2.0B threshold — and reiterated key milestones and scale: ETF franchise >$200M (MDST crossed $200M after topping $170M), Westwood Energy Secondaries Fund II closed with >$300M of commitments (total raised since WES I nearly $350M, invested >$250M), full-year gross sales $2.5B (up 20% from $2.1B) with institutional gross sales +36% and intermediary gross sales +32%, a $0.15/share regular cash dividend payable 04/01/2026, cash and liquid investments of $44.1M and a debt-free balance sheet, and ongoing expectations for additional platform approvals and continued emphasis on high-quality, value-oriented strategies.Westwood Holdings Group Financial Statement Overview
Summary
Strong balance sheet strength (low leverage/debt-free) and a clear recovery to solid profitability in 2023–2025 support the score. Offsetting this, both earnings and cash flows have been volatile across the cycle, including periods of negative operating/free cash flow.Income Statement
Revenue has expanded meaningfully over the cycle, with strong growth in 2023 and a sharp acceleration in 2025, and profitability has recovered from losses in 2020–2022 to solidly positive earnings in 2023–2025. Margins strengthened notably in 2025 versus 2024 (higher operating and net profitability), but results have been volatile historically (loss years and wide swings in net margin), which tempers confidence in durability.72
Positive
Balance Sheet
The balance sheet is conservatively positioned with low leverage throughout the period (debt-to-equity staying modest) and a sizable equity base that has remained relatively stable. Returns on equity have improved from negative levels in 2020–2022 to positive in 2023–2025, though the return profile is still uneven year-to-year, reflecting earnings volatility rather than balance sheet stress.84
Very Positive
Cash Flow
Cash generation is generally strong in the most recent years, with robust operating cash flow and free cash flow in 2024–2025 and cash conversion close to reported earnings. However, cash flow has been inconsistent across the cycle (notably negative operating/free cash flow in 2020 and 2023), and free cash flow growth turned negative in 2025 after a strong 2024, highlighting variability.66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 97.76M | 94.72M | 89.78M | 68.68M | 73.05M |
| Gross Profit | 84.61M | 38.71M | 36.86M | 28.56M | 30.52M |
| EBITDA | 14.12M | 10.46M | 8.27M | 4.80M | 8.33M |
| Net Income | 7.08M | 2.21M | 10.57M | -4.63M | 9.76M |
Balance Sheet | |||||
| Total Assets | 163.25M | 149.99M | 155.17M | 146.43M | 139.60M |
| Cash, Cash Equivalents and Short-Term Investments | 47.68M | 46.54M | 53.10M | 39.20M | 80.23M |
| Total Debt | 10.17M | 3.20M | 9.10M | 6.07M | 6.13M |
| Total Liabilities | 35.58M | 27.66M | 32.72M | 35.78M | 21.70M |
| Stockholders Equity | 125.61M | 120.29M | 120.40M | 110.65M | 117.91M |
Cash Flow | |||||
| Free Cash Flow | 17.88M | 21.01M | -1.33M | 51.55M | 19.21M |
| Operating Cash Flow | 17.97M | 21.12M | -1.19M | 51.87M | 19.39M |
| Investing Cash Flow | -3.67M | -4.61M | 4.11M | -34.12M | 9.57M |
| Financing Cash Flow | -6.90M | -18.08M | -6.36M | -9.10M | -26.81M |
Westwood Holdings Group Technical Analysis
Positive
16.92
Price Trends
17.70
Negative
17.08
Positive
16.70
Positive
Market Momentum
-0.24
Positive
49.32
Neutral
62.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHG, the sentiment is Positive. The current price of 16.92 is below the 20-day moving average (MA) of 17.37, below the 50-day MA of 17.70, and above the 200-day MA of 16.70, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 62.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHG.
Westwood Holdings Group Risk Analysis
Westwood Holdings Group disclosed 26 risk factors in its most recent earnings report. Westwood Holdings Group 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
Westwood Holdings Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $958.82M | 6.62 | 9.64% | 0.99% | 12.52% | 16.53% | |
72 Outperform | $78.43M | 10.66 | 8.43% | ― | 8.47% | -32.22% | |
70 Outperform | $162.48M | 21.22 | 5.99% | 3.32% | 4.03% | 151.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $49.15M | 0.55 | -29.28% | ― | ― | ― | |
50 Neutral | $1.68B | 39.59 | ― | 1.62% | -12.44% | ― |
* Financial Sector Average
WHG
Westwood Holdings Group
17.27
2.45
16.53%
OPY
Oppenheimer Holdings
90.39
28.73
46.60%
SIEB
Siebert Financial
1.94
-0.55
-22.09%
DOMH
Dominari Holdings
3.03
-2.89
-48.79%
PWP
Perella Weinberg Partners
18.66
-2.12
-10.21%
Westwood Holdings Group Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Westwood Holdings Reports Strong Q4 Results, Raises Dividend
Positive
Feb 13, 2026
Westwood Holdings Group, Inc., a boutique asset manager offering actively managed strategies and white-glove wealth services to institutional, intermediary and private clients, reported firmwide assets under management and advisement of $17.4 billion as of December 31, 2025. The company maintains a debt-free balance sheet, ending the year with $44.1 million in cash and liquid investments and $125.6 million in stockholders’ equity, and its strategies such as Income Opportunity and Total Return delivered top-tier peer rankings in the fourth quarter.
On February 13, 2026, Westwood announced fourth quarter 2025 revenue of $27.1 million, up from both the prior quarter and a year earlier, with quarterly income of $1.9 million and non-GAAP Economic Earnings of $3.3 million reflecting higher revenues but also increased performance-related compensation. For full-year 2025, income rose to $7.1 million from $2.2 million in 2024 and diluted EPS tripled to $0.79, driven by stronger revenues, ETF and private energy secondaries growth, and unrealized gains on strategic private investments, and the board approved a quarterly dividend of $0.15 per share payable on April 1, 2026, underscoring improving profitability and shareholder returns.
The firm highlighted strategic milestones in 2025, including expanding its ETF platform beyond $200 million in assets with the launch of the Enhanced Income Opportunity ETF, closing its second flagship energy secondaries fund and two co-investment vehicles with more than $300 million in commitments, and securing the first institutional client for its Managed Investment Solutions business. These developments, coupled with increased investor interest in ETFs and private energy secondaries, strengthened Westwood’s competitive positioning and support management’s view that the company is well placed to leverage these initiatives in the evolving asset management landscape.
The most recent analyst rating on (WHG) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Westwood Holdings Group stock, see the WHG 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.