ASSOCIATED CAPITAL GROUP, INC. Reports Excellent Second Quarter Results
Associated Capital Group (NYSE:AC) reported strong Q2 2025 results, with their merger arbitrage strategy achieving its best first-half performance in over 25 years, returning +5.5% before expenses (+4.2% net) in Q2 and +9.4% before expenses (+7.1% net) for H1 2025.
The company's Assets Under Management (AUM) increased to $1.34 billion at June 30, 2025, up from $1.27 billion in March 2025, driven by market appreciation of $49 million, currency fluctuations of $23 million, and net inflows of $1 million. Net income for Q2 2025 was $18.6 million ($0.88 per share), compared to $3.0 million ($0.14 per share) in Q2 2024.
The Board authorized an additional repurchase of up to 150,000 shares and declared a semi-annual dividend of $0.10 per share. Book value per share increased to $43.30 from $42.51 in the previous quarter.
Associated Capital Group (NYSE:AC) ha riportato risultati solidi nel secondo trimestre del 2025, con la loro strategia di arbitraggio di fusioni che ha ottenuto la migliore performance del primo semestre in oltre 25 anni, con un rendimento del +5,5% prima delle spese (+4,2% netto) nel Q2 e del +9,4% prima delle spese (+7,1% netto) nel primo semestre 2025.
Gli Asset Under Management (AUM) della società sono saliti a 1,34 miliardi di dollari al 30 giugno 2025, rispetto a 1,27 miliardi di dollari a marzo 2025, grazie a un apprezzamento di mercato di 49 milioni di dollari, fluttuazioni valutarie di 23 milioni di dollari e afflussi netti di 1 milione di dollari. L'utile netto per il Q2 2025 è stato di 18,6 milioni di dollari (0,88 dollari per azione), rispetto a 3,0 milioni di dollari (0,14 dollari per azione) nel Q2 2024.
Il Consiglio di Amministrazione ha autorizzato un riacquisto aggiuntivo di fino a 150.000 azioni e ha dichiarato un dividendo semestrale di 0,10 dollari per azione. Il valore contabile per azione è aumentato a 43,30 dollari rispetto a 42,51 dollari nel trimestre precedente.
Associated Capital Group (NYSE:AC) reportó sólidos resultados en el segundo trimestre de 2025, con su estrategia de arbitraje de fusiones logrando su mejor desempeño en la primera mitad del año en más de 25 años, con un retorno del +5.5% antes de gastos (+4.2% neto) en el Q2 y +9.4% antes de gastos (+7.1% neto) en el primer semestre de 2025.
Los Activos Bajo Gestión (AUM) de la compañía aumentaron a $1.34 mil millones al 30 de junio de 2025, desde $1.27 mil millones en marzo de 2025, impulsados por una apreciación del mercado de $49 millones, fluctuaciones cambiarias de $23 millones y entradas netas de $1 millón. La utilidad neta para el Q2 2025 fue de $18.6 millones ($0.88 por acción), comparado con $3.0 millones ($0.14 por acción) en el Q2 2024.
La Junta autorizó una recompra adicional de hasta 150,000 acciones y declaró un dividendo semestral de $0.10 por acción. El valor contable por acción aumentó a $43.30 desde $42.51 en el trimestre anterior.
Associated Capital Group (NYSE:AC)는 2025년 2분기에 강력한 실적을 보고했으며, 그들의 합병 차익거래 전략은 25년 만에 최고 상반기 성과를 기록하여 2분기에는 비용 차감 전 +5.5%(순수익 +4.2%), 2025년 상반기에는 비용 차감 전 +9.4%(순수익 +7.1%)를 달성했습니다.
회사의 운용 자산(AUM)은 2025년 6월 30일 기준으로 13억 4천만 달러로 2025년 3월의 12억 7천만 달러에서 증가했으며, 시장 평가액 증가 4,900만 달러, 환율 변동 2,300만 달러, 순유입 100만 달러가 원인입니다. 2025년 2분기 순이익은 1,860만 달러(주당 0.88달러)로, 2024년 2분기의 300만 달러(주당 0.14달러)와 비교됩니다.
이사회는 최대 15만 주 추가 자사주 매입을 승인하고 주당 0.10달러의 반기 배당금을 선언했습니다. 주당 장부 가치는 이전 분기의 42.51달러에서 43.30달러로 상승했습니다.
Associated Capital Group (NYSE:AC) a publié de solides résultats pour le deuxième trimestre 2025, avec leur stratégie d'arbitrage de fusion réalisant sa meilleure performance sur le premier semestre en plus de 25 ans, affichant un rendement de +5,5 % avant frais (+4,2 % net) au T2 et +9,4 % avant frais (+7,1 % net) pour le premier semestre 2025.
Les Actifs Sous Gestion (AUM) de la société ont augmenté pour atteindre 1,34 milliard de dollars au 30 juin 2025, contre 1,27 milliard de dollars en mars 2025, grâce à une appréciation de marché de 49 millions de dollars, des fluctuations monétaires de 23 millions de dollars et des flux nets entrants de 1 million de dollars. Le bénéfice net pour le T2 2025 s’est élevé à 18,6 millions de dollars (0,88 dollar par action), contre 3,0 millions de dollars (0,14 dollar par action) au T2 2024.
Le Conseil d’administration a autorisé un rachat supplémentaire pouvant aller jusqu’à 150 000 actions et a déclaré un dividende semestriel de 0,10 dollar par action. La valeur comptable par action a augmenté à 43,30 dollars contre 42,51 dollars au trimestre précédent.
Associated Capital Group (NYSE:AC) meldete starke Ergebnisse für das zweite Quartal 2025, wobei ihre Merger-Arbitrage-Strategie die beste erste Halbjahresperformance seit über 25 Jahren erzielte und im Q2 vor Kosten +5,5 % (+4,2 % netto) sowie im ersten Halbjahr 2025 vor Kosten +9,4 % (+7,1 % netto) zurückgab.
Das verwaltete Vermögen (AUM) des Unternehmens stieg zum 30. Juni 2025 auf 1,34 Milliarden US-Dollar, gegenüber 1,27 Milliarden US-Dollar im März 2025, getrieben durch eine Marktbewertung von 49 Millionen US-Dollar, Währungsschwankungen von 23 Millionen US-Dollar und Nettozuflüsse von 1 Million US-Dollar. Der Nettogewinn für das zweite Quartal 2025 betrug 18,6 Millionen US-Dollar (0,88 US-Dollar je Aktie) gegenüber 3,0 Millionen US-Dollar (0,14 US-Dollar je Aktie) im zweiten Quartal 2024.
Der Vorstand genehmigte einen zusätzlichen Rückkauf von bis zu 150.000 Aktien und erklärte eine halbjährliche Dividende von 0,10 US-Dollar je Aktie. Der Buchwert je Aktie stieg von 42,51 US-Dollar im Vorquartal auf 43,30 US-Dollar.
- Merger arbitrage strategy achieved best first-half performance in 25+ years with +9.4% return before expenses
- AUM increased to $1.34 billion from $1.27 billion quarter-over-quarter
- Net income surged to $18.6 million from $3.0 million year-over-year
- Investment and non-operating income grew significantly to $32.9 million from $7.3 million YoY
- Board authorized additional 150,000 share repurchase program
- Total revenues declined to $2.2 million from $2.6 million year-over-year
- Operating expenses increased to $7.4 million from $5.8 million YoY
- SICAV revenues decreased to $1.0 million from $1.3 million in prior year
Insights
AC reported strong Q2 results with exceptional merger arbitrage performance, rising AUM, and substantial investment income driving solid profitability despite operating losses.
Associated Capital Group delivered exceptional performance in their flagship merger arbitrage strategy, which returned
The firm's assets under management increased to
While total revenues declined year-over-year to
The operating loss widening was mainly attributed to
Management's outlook for M&A activity remains optimistic, citing regulatory tailwinds including more accommodative antitrust leadership at the FTC, DOJ, and FCC. Their strategic focus includes accelerating capital deployment through acquisitions and launching private equity initiatives targeting family-owned businesses.
- Our merger arbitrage strategy returned +
- Expect vibrant M&A activity over the balance of the year
- Assets Under Management (“AUM”):
- Book Value per share ended the quarter at
- Board authorized the repurchase of up to an additional 150,000 shares
GREENWICH, Conn., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Associated Capital Group, Inc. (“AC” or the “Company”), a diversified financial services company, today reported its financial results for the second quarter of 2025.
Financial Highlights
($ in 000's except AUM and per share data)
| (Unaudited) | Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| AUM - end of period (in millions) | $ | 1,342 | $ | 1,362 | $ | 1,342 | $ | 1,362 | ||||||||
| AUM - average (in millions) | 1,298 | 1,446 | 1,280 | 1,501 | ||||||||||||
| Revenues | 2,207 | 2,595 | 4,336 | 5,606 | ||||||||||||
| Operating loss before management fee (Non-GAAP) | (5,220 | ) | (3,232 | ) | (9,405 | ) | (6,220 | ) | ||||||||
| Investment and other non-operating income, net | 32,866 | 7,252 | 48,700 | 29,877 | ||||||||||||
| Income before income taxes | 24,889 | 3,578 | 35,435 | 21,233 | ||||||||||||
| Net income | $ | 18,584 | $ | 2,985 | $ | 26,253 | $ | 16,806 | ||||||||
| Net income per share-basic and diluted | $ | 0.88 | $ | 0.14 | $ | 1.24 | $ | 0.78 | ||||||||
| Shares outstanding (000's): | ||||||||||||||||
| Class A | 2,203 | 2,404 | 2,203 | 2,404 | ||||||||||||
| Class B | 18,921 | 18,951 | 18,921 | 18,951 | ||||||||||||
| Total shares outstanding | 21,124 | 21,355 | 21,124 | 21,355 | ||||||||||||
Second Quarter Financial Data
- Assets under management ended the quarter at
- Book value was
Second Quarter Results
Total revenues in the second quarter were
Total operating expenses, excluding management fee, were
Net investment and other non-operating income was
For the quarter ended June 30, 2025, the management fee was
The effective tax rate applied to our pre-tax income for the quarter ended June 30, 2025 was
Assets Under Management (AUM)
Assets under management at June 30, 2025 were
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| 2025 | 2025 | 2024 | 2024 | |||||||||||||
| ($ in millions) | ||||||||||||||||
| Merger Arbitrage(a) | $ | 1,078 | $ | 1,012 | $ | 1,003 | $ | 1,127 | ||||||||
| Long/Short Value(b) | 228 | 221 | 209 | 199 | ||||||||||||
| Other | 36 | 36 | 36 | 36 | ||||||||||||
| Total AUM | $ | 1,342 | $ | 1,269 | $ | 1,248 | $ | 1,362 | ||||||||
(a) Includes
(b) Assets under management represent the assets invested in this strategy that are attributable to Associated Capital Group, Inc.
Alternative Investment Management
Our alternative investment offerings center around our merger arbitrage strategy, which seeks absolute return independent of the broad equity and fixed income markets through a proven strategy of investing in global announced corporate mergers and acquisitions. We also manage strategies focused on fundamental, active, event-driven and special situations investing.
Merger Arbitrage
For the second quarter of 2025, the longest continuously offered fund in the merger arbitrage strategy generated gross returns of +
| Performance%(a) | 2Q '25 | 2Q '24 | YTD '25 | YTD '24 | Since 1985(b)(c) | |||||||||||||||
| Merger Arbitrage | ||||||||||||||||||||
| Gross | 5.45 | -1.37 | 9.43 | -0.05 | 10.10 | |||||||||||||||
| Net | 4.19 | -1.40 | 7.12 | -0.55 | 7.15 | |||||||||||||||
(a) Net performance is net of fees and expenses, unless otherwise noted. Performance shown for an actual fund in this strategy. The performance of other funds in this strategy may vary. Past performance is no guarantee of future results.
(b) Represents annualized returns through June 30, 2025
(c) Inception Date: February 1985
Global M&A activity resumed its positive momentum in the second quarter after a brief air pocket for new deal activity in April when the Trump Administration surprised the market with tariffs that were substantially higher than the market had been expecting. Following a pause on the implementation of tariffs, and the negotiation of country-specific trade deals, the market regained a sense of confidence and clarity, particularly after Treasury Secretary Scott Bessent’s détente with China in Switzerland. As a result, dealmaking resumed its upward trajectory and powered second quarter M&A to over
M&A Outlook
A more accommodative antitrust environment and pent-up demand from acquirers should be supportive of ongoing M&A activity. Furthermore, recent regulatory shifts both in the U.S. and abroad, as summarized in the table below, should provide a more favorable environment for merger arbitrage investing.
Regulatory Tailwinds
| Jurisdiction | Agency | Now | Before | Net (a) | ||||
| US | Federal Trade Commission ("FTC") | Andrew Ferguson | Lina Khan | + | ||||
| US | Department of Justice ("DOJ") | Gail Slater | Jonathan Kanter | + | ||||
| US | Federal Communications Commission ("FCC") | Brendan Carr | Jessica Rosenworcel | + | ||||
| International: | ||||||||
| UK | Competition and Markets Authority ("CMA") | Doug Gurr | Marcus Bokkerink | + | ||||
| EU | European Commission ("EC") | Teresa Ribera | Margrethe Vestager | ? |
(a) “Net” reflects our assessment of each regulatory change’s impact on merger arbitrage: (+) favorable, (–) unfavorable, and (?) uncertain or neutral.
Strategy Availability
The Merger Arbitrage strategy is available across multiple vehicles tailored to client type and mandate, including partnerships and offshore corporations serving both accredited as well as institutional investors. The strategy is also offered in separately managed accounts, a Luxembourg UCITS (Undertaking for Collective Investment in Transferrable Securities) and a London Stock Exchange-listed investment company, Gabelli Merchant Partners Plc (GMP-LN), formerly known as Gabelli Merger Plus+ Trust Plc.
Acquisitions
Associated Capital Group's plan is to accelerate the use of its capital. We intend to leverage our research and investment capabilities by pursuing acquisitions and alliances that will broaden our product offerings and add new sources of distribution. In addition, we may make direct investments in operating businesses using a variety of techniques and structures to accomplish our objectives.
Gabelli Private Equity Partners was created to launch a private equity business, somewhat akin to the success our predecessor PE firm had in the 1980s. We will continue our outreach initiatives with business owners, corporate management, and various financial sponsors. We are activating our program of buying privately owned, family started businesses, controlled and operated by the founding family.
Charitable Contributions
AC seeks to be a good corporate citizen by supporting our community through sponsoring local organizations. Since our inception as a public company in 2015, the shareholders of AC have donated approximately
Shareholder Compensation
On May 7, 2025, the Board of Directors declared a semi-annual dividend of
During the second quarter of 2025, AC repurchased 21,241 Class A shares, for
Shares may be purchased from time to time in the future, however share repurchase amounts and prices may vary after considering a variety of factors, including the Company's financial position, earnings, other alternative uses of cash, macroeconomic issues, and market conditions.
Since our inception in 2015, AC has returned
At June 30, 2025, there were 21.124 million shares outstanding, consisting of 2.203 million Class A shares and 18.921 million Class B shares outstanding.
About Associated Capital Group, Inc.
Associated Capital Group, Inc. (NYSE:AC), based in Greenwich, Connecticut, is a diversified global financial services company that provides alternative investment management through Gabelli & Company Investment Advisers, Inc. (“GCIA”). We have also earmarked proprietary capital for our direct investment business that invests in new and existing businesses. The direct investment business is developing along several core pillars including Gabelli Private Equity Partners, LLC (“GPEP”), formed in August 2017 with
Operating Loss Before Management Fee
Operating loss before management fee expense represents a non-GAAP financial measure. We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income before management fee expense, which includes non-operating items including investment gains and losses from the Company’s proprietary investment portfolio and interest expense.
| Six Months Ended | ||||||||
| June 30, | ||||||||
| ($ in 000's) | 2025 | 2024 | ||||||
| Operating loss - GAAP | $ | (13,265 | ) | $ | (8,644 | ) | ||
| Add: management fee expense (1) | 3,860 | 2,424 | ||||||
| Operating loss before management fee - Non-GAAP | $ | (9,405 | ) | $ | (6,220 | ) | ||
(1) Management fee expense is incentive-based and is equal to
Table I
| ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Amounts in thousands) | ||||||||||||
| June 30, | December 31, | June 30, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| ASSETS | ||||||||||||
| Cash, cash equivalents and US Treasury Bills(1) | $ | 392,500 | $ | 367,850 | $ | 387,377 | ||||||
| Investments in securities and partnerships(1) | 497,691 | 487,623 | 442,294 | |||||||||
| Investment in GAMCO stock(2) | 16,248 | 16,920 | 57,346 | |||||||||
| Receivable from brokers(1) | 27,373 | 27,634 | 29,298 | |||||||||
| Income taxes receivable, including deferred tax assets, net(1) | 2,108 | 6,021 | 8,370 | |||||||||
| Other receivables(1) | 2,225 | 4,778 | 1,483 | |||||||||
| Other assets(1) | 20,981 | 24,463 | 22,848 | |||||||||
| Total assets | $ | 959,126 | $ | 935,289 | $ | 949,016 | ||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||
| Payable to brokers(1) | $ | 6,886 | $ | 5,491 | $ | 6,642 | ||||||
| Income taxes payable, including deferred tax liabilities, net | 4,046 | - | - | |||||||||
| Compensation payable(1) | 18,213 | 17,747 | 12,448 | |||||||||
| Securities sold short, not yet purchased(1) | 7,243 | 8,436 | 6,392 | |||||||||
| Accrued expenses and other liabilities(1) | 2,314 | 5,317 | 2,366 | |||||||||
| Total liabilities | $ | 38,702 | $ | 36,991 | $ | 27,848 | ||||||
| Redeemable noncontrolling interests(1) | 5,770 | 5,592 | 5,689 | |||||||||
| Total equity | 914,654 | 892,706 | 915,479 | |||||||||
| Total liabilities, redeemable noncontrolling interests and equity | $ | 959,126 | $ | 935,289 | $ | 949,016 | ||||||
| (1) Certain captions include amounts related to a consolidated variable interest entity ("VIE") and voting interest entity ("VOE"); refer to footnote 4 of the Condensed Consolidated Financial Statements included in the 10-Q report to be filed for the quarter ended June 30, 2025 for more details on the impact of consolidating these entities. (2) Investment in GAMCO stock: 672,800, 699,749 and 2,359,903 shares, respectively. | ||||||||||||
Table II
| ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Investment advisory and incentive fees | $ | 2,081 | $ | 2,489 | $ | 4,085 | $ | 5,396 | ||||||||
| Other revenues | 126 | 106 | 251 | 210 | ||||||||||||
| Total revenues | 2,207 | 2,595 | 4,336 | 5,606 | ||||||||||||
| Compensation | 5,297 | 3,942 | 9,745 | 7,762 | ||||||||||||
| Operating expenses | 2,130 | 1,885 | 3,996 | 4,064 | ||||||||||||
| Total expenses | 7,427 | 5,827 | 13,741 | 11,826 | ||||||||||||
| Operating loss before management fee | (5,220 | ) | (3,232 | ) | (9,405 | ) | (6,220 | ) | ||||||||
| Investment gain/(loss) | 27,081 | (159 | ) | 37,973 | 16,635 | |||||||||||
| Dividend income from GAMCO | 54 | 567 | 108 | 662 | ||||||||||||
| Interest and dividend income, net | 5,731 | 7,224 | 10,650 | 13,029 | ||||||||||||
| Shareholder-designated contribution | - | (380 | ) | (31 | ) | (449 | ) | |||||||||
| Investment and other non-operating income, net | 32,866 | 7,252 | 48,700 | 29,877 | ||||||||||||
| Income before management fee and income taxes | 27,646 | 4,020 | 39,295 | 23,657 | ||||||||||||
| Management fee | 2,757 | 442 | 3,860 | 2,424 | ||||||||||||
| Income before income taxes | 24,889 | 3,578 | 35,435 | 21,233 | ||||||||||||
| Income tax expense | 6,217 | 684 | 8,994 | 4,482 | ||||||||||||
| Income before noncontrolling interests | 18,672 | 2,894 | 26,441 | 16,751 | ||||||||||||
| Income/(loss) attributable to noncontrolling interests | 88 | (91 | ) | 188 | (55 | ) | ||||||||||
| Net income attributable to Associated Capital Group, Inc. | $ | 18,584 | $ | 2,985 | $ | 26,253 | $ | 16,806 | ||||||||
| Net income per share attributable to AC: | ||||||||||||||||
| Basic and diluted | $ | 0.88 | $ | 0.14 | $ | 1.24 | $ | 0.78 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic and diluted | 21,135 | 21,392 | 21,150 | 21,446 | ||||||||||||
| Total shares outstanding - end of period | 21,124 | 21,355 | 21,124 | 21,355 | ||||||||||||
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
The financial results set forth in this press release are preliminary. Our disclosure and analysis in this press release, which do not present historical information, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements convey our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, the economy and other conditions, there can be no assurance that our actual results will not differ materially from what we expect or believe. Therefore, you should proceed with caution in relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors, some of which are listed below, that are difficult to predict and could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Some of the factors that could cause our actual results to differ from our expectations or beliefs include a decline in the securities markets that adversely affect our assets under management, negative performance of our products, the failure to perform as required under our investment management agreements, and a general downturn in the economy that negatively impacts our operations. We also direct your attention to the more specific discussions of these and other risks, uncertainties and other important factors contained in our Form 10 and other public filings. Other factors that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations whether as a result of new information, future developments or otherwise, except as may be required by law.
| Contact: | Ian J. McAdams Chief Financial Officer (914) 921-5078 Associated-Capital-Group.com |
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb769477-c024-4f24-a55e-057f9b24eddf
FAQ
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