ASSOCIATED CAPITAL GROUP, INC. Reports Fourth Quarter and Full Year Results

Rhea-AI Summary

Associated Capital Group (NYSE:ACGP) reported full-year 2025 results with net income of $53.0 million (up 20% vs 2024) and year-end AUM of $1.48 billion (+19% YoY). The merger arbitrage strategy delivered strong performance, with gross returns of 16.10% (net ~12.0%) in 2025. Book value rose to $44.69 per share and the company returned $20.6 million to shareholders via repurchases and dividends in 2025. The Board declared a quarterly dividend of $0.10 per share payable March 19, 2026. The company opened an office in Zurich in January 2026 and plans acquisitions to deploy capital and broaden distribution.

Positive

• Merger arbitrage gross return of 16.10% (net ~12.0%) in 2025
• AUM increased 19% year-over-year to $1.48B at Dec 31, 2025
• Net income rose 20% to $53.0M in 2025
• Shareholder returns of $20.6M in 2025 plus dividend increase to $0.10 quarterly

Negative

• Management fee expense increased from $5.9M to $7.4M in 2025 (+25%)
• Effective tax rate rose to 22.4% in 2025 from 15.8% in 2024 (increase of 660 bps)

• Our merger arbitrage team delivered its strongest results in 25 years, with returns of 16.1% before expenses (12.0% net) in 2025 
• Year-end AUM: $1.48 billion at December 31, 2025 (+19% over the last 12 months)
• 2025 Net income of $53.0 million (+20% versus 2024)
• Returned $20.6 million to shareholders through share repurchases and dividends in 2025
• Book Value was $44.69 per share at year-end 2025 versus $42.14 per share a year ago
• Added office in Zurich, Switzerland in January 2026

GREENWICH, Conn., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Associated Capital Group, Inc. (“AC” or the “Company”), a diversified financial services company, today reported its financial results for the fourth quarter and full year-ended December 31, 2025.

Financial Highlights – GAAP basis
($’s in 000’s except AUM and per share data)
		Fourth Quarter								Full Year
(Unaudited)		2025				2024				2025				2024
AUM – end of period (in millions)		$	1,482			$	1,248			$	1,482			$	1,248
AUM – average (in millions)			1,430				1,291				1,341				1,410
Revenues			20,074				5,154				26,888				13,175
Income before income taxes			13,595				1,179				68,765				52,735
Net income			11,122				4,280				52,986				44,328
Net income per share - basic and diluted		$	0.54			$	0.20			$	2.52			$	2.08
Shares outstanding (000’s):
Class A			1,779				2,234				1,779				2,234
Class B			18,921				18,951				18,921				18,951
Total shares outstanding			20,700				21,185				20,700				21,185
Book Value per share		$	44.69			$	42.14			$	44.69			$	42.14

Fourth Quarter Financial Data

• Assets under management ended the quarter at $1.48 billion versus $1.41 billion at September 30, 2025.
  
• At December 31, 2025, book value per share was $44.69 per share compared to $44.23 per share at September 30, 2025.
  

Fourth Quarter Results

Fourth quarter revenues were $20.1 million compared to $5.2 million for the fourth quarter of 2024. The increase in revenues is driven by higher incentive fees in 2025 due to performance. Incentive fees were $17.7 million in the 2025 quarter versus $3.0 million in 2024. As in the past, incentive fees are accrued when earned, typically on an annual basis on December 31. Revenues generated by the GAMCO International SICAV – GAMCO Merger Arbitrage fund (the “SICAV”) were $9.4 million versus $1.0 million in the year ago quarter. All other revenues were $10.7 million compared to $4.2 million in the year ago quarter.

Total operating expenses, excluding management fee expense, were $15.1 million in the fourth quarter 2025 compared to $8.2 million in the comparable 2024 period. The primary driver of the increase in operating expenses was higher variable compensation in the 2025 quarter driven by higher incentive fee revenue.

Net investment and other income was $10.1 million for the fourth quarter versus $4.4 million in the year ago quarter. The primary driver of this quarter’s results was the performance of our merger arbitrage investments.

The fourth quarter of 2025 includes a management fee expense of $1.5 million versus $0.1 million in the fourth quarter of 2024. Our provision for income taxes was an expense of $2.4 million in 2025 with an effective tax rate of 17.9%. This compares to an income tax benefit of $3.1 million for the prior year quarter driven by deferred tax benefits from the sale of GAMCO shares in 2024.

Full Year Results

Revenues for the year ended 2025 were $26.9 million compared to $13.2 million in 2024. Revenues generated by the SICAV were $12.5 million versus $5.0 million in the prior year period. All other revenues were $14.4 million compared to $8.2 million in the year ago period.   

For 2025, the operating loss before management fee expense was $9.0 million compared to $12.9 million in 2024.

The full year 2025 net investment and other income was $85.2 million versus $71.5 million in 2024. The primary driver of 2025’s results was the performance of our merger arbitrage investments.

In 2025, management fee expense was $7.4 million compared to $5.9 million in 2024.

Our income tax rate for the year was 22.4% compared to 15.8% for the prior year. The higher rate in 2025 is primarily driven by deferred tax benefits from the 2024 sale of GAMCO shares that reduced the prior period’s effective tax rate.

Charitable Contributions

Since our inception as a public company in 2015, the shareholders of AC have donated approximately $42 million to over 200 501(c)(3) organizations that address a broad range of local, national and international concerns through the shareholder designated charitable contribution program. Our charitable giving program continues today with the Associated Capital Foundation, a private foundation, established in October 2025. In November 2025, the Company contributed approximately $4 million to the private foundation.

Assets Under Management (AUM)

Assets under management ended the year at $1.48 billion, $234 million higher than year-end 2024, reflecting market performance of $154 million, net inflows of $51 million and the positive impact of currency fluctuations in non-US dollar denominated classes of investment funds of $29 million.

		December 31,
($ in millions)		2025				2024					2020					2015
Merger Arbitrage		$	1,156			$	1,003				$	1,126				$	869
Long/Short Value(a)			289				209					180					145
Other			37				36					45					66
Total AUM		$	1,482			$	1,248				$	1,351				$	1,080

(a) Assets under management represent the assets invested in this strategy that are attributable to AC.

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 funds using strategies focused on fundamental, active, event-driven and special situations investing.

Merger Arbitrage

Since its inception in 1985, our longest continuously offered fund in the merger arbitrage strategy has consistently outperformed the return on 90-day T-Bills. The summary historical performance is as follows:

Merger Arbitrage(1)
Percent Return (%)
Year	Gross Return		Net Return		90 Day T-Bills
2025	16.10		11.97		4.40
2024	5.83		3.82		5.45
2023	5.49		3.56		5.26
2022	4.47		2.75		1.50
2021	10.81		7.78		0.05
2020	9.45		6.70		0.58
2019	8.55		5.98		2.25
2018	4.35		2.65		1.86
2017	4.69		2.92		0.84
2016	9.13		6.44		0.27
2015	5.33		3.43		0.03
2014	3.89		2.29		0.03
2013	5.33		3.43		0.05
2012	4.32		2.63		0.07
2011	4.89		3.07		0.08
2010	9.07		6.35		0.13
2009	12.40		9.15		0.16
2008	0.06		-0.94		1.80
2007	6.39		4.26		4.74
2006	12.39		8.96		4.76
2005	9.40		6.63		3.00
2004	5.49		3.69		1.24
2003	8.90		6.26		1.07
2002	4.56		2.45		1.70
2001	7.11		4.56		4.09
2000	18.10		13.57		5.96
1999	16.61		12.31		4.74
1998	10.10		7.21		5.06
1997	12.69		9.21		5.25
1996	12.14		8.84		5.25
1995	14.06		10.27		5.75
1994	7.90		5.53		4.24
1993	12.29		8.91		3.09
1992	7.05		4.78		3.62
1991	12.00		8.76		5.75
1990	9.43		6.67		7.92
1989	23.00		17.55		8.63
1988	45.84		35.66		6.76
1987(2)	-13.67		-14.54		5.90
1986(2)	33.40		26.14		6.24
1985(2)	30.47		22.64		7.82
Average	10.48		7.42		3.35

(1) The performance above refers to our longest continuously offered fund in the merger arbitrage strategy (net and gross returns). Net returns are net of management and incentive fees. Individual investment returns may differ due to timing of investment and other factors. Past performance is not indicative of future results.

(2) The fiscal year end for each of 1985 through 1987 was October 31^st. The returns for these years have been calculated on a calendar year basis to conform with the subsequent years in this chart.

For the fourth quarter of 2025, our longest continuously offered fund in the merger arbitrage strategy generated gross returns of 2.02% (1.45% net of fees). For the full year, gross returns were 16.10% (11.97% net of fees), adding to its historical record of positive net returns in 39 of the last 41 years. A summary of the performance is as follows:

													Full Year
Performance%(a)		4Q '25				4Q '24						2025				2024				2023				2022				2021				5 Year(b)				Since 1985(b)(c)
Merger Arb
Gross			2.02				0.95						16.10				5.83				5.49				4.47				10.81				8.45				10.13
Net			1.45				0.57						11.97				3.82				3.56				2.75				7.78				5.92				7.17

(a) Net performance is net of fees and expenses, unless otherwise noted. Performance shown is 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 December 31, 2025

(c) Inception Date: February 1985

M&A activity remained vibrant in December, and propelled deal activity to $4.6 trillion for 2025, an increase of 49% compared to $3.2 trillion in 2024. The U.S. remained the preferred venue for dealmaking with $2.3 trillion of deals, an increase of 57% versus 2024 volume of $1.4 trillion, and US targets represented 50% of all dealmaking in 2025. Private Equity accounted for 20% of dealmaking in 2025, a decline from 23% during 2024. However, the dollar volume of PE deals increased from $706 billion in 2024 to $920 billion in 2025, an increase of 30%. Technology was the most active sector with $843 billion of deals, accounting for 18% of total deal volume, followed by Industrials and Financials. Meanwhile, cross-border M&A increased 40% to $1.4 trillion. It appears dealmaking momentum will continue in 2026 driven by a more accommodative global regulatory environment, increased CEO optimism and confidence, AI-driven dealmaking, resilient economic growth and record levels of private equity dry powder.

Furthermore, 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 should provide a more favorable environment for merger arbitrage investing.

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 in 2017 to launch a private equity business, somewhat akin to the success of a related 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.

Shareholder Compensation

Since our inception in 2015, AC has returned $200.6 million to shareholders through share repurchases, exchange offers and dividends of $87.4 million.

On February 3, 2026, the Board of Directors declared a quarterly dividend of $0.10 per share which will be paid on March 19, 2026 to shareholders of record on March 5, 2026. As previously announced, in November 2025 the Boad of Directors approved a 100% increase in the Company’s regular cash dividend whereby the quarterly dividend rate will be set at $0.10 per share, compared to the historical semi-annual rate of $0.10 per share paid semi-annually.

During the fourth quarter of 2025, AC repurchased 63,306 Class A shares, for $2.3 million, at an average price of $36.56 per share. For the full year 2025, AC repurchased 484,866 Class A shares, for $16.4 million, at an average price of $33.76 per share. 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.

At December 31, 2025, there were 20.700 million shares outstanding, consisting of 1.779 million Class A shares and 18.921 million Class B shares outstanding.

About Associated Capital Group, Inc.

Associated Capital Group, Inc. (OTCQX:ACGP), 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 $150 million of authorized capital as a “fund-less” sponsor. We also created Gabelli Principal Strategies Group, LLC (“GPS”) in December 2015 to pursue strategic operating initiatives.

Operating Income/(Loss) Before Management Fee

Operating income/(loss) before management fee 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.

		Three Months Ended								Year Ended
		December 31,								December 31,
($ in 000's)		2025				2024				2025				2024
Operating income/(loss) - GAAP		$	3,467			$	(3,193	)		$	(16,457	)		$	(18,753	)
Add: management fee expense(1)			1,476				134				7,449				5,870
Operating income/(loss) before management fee - Non-GAAP		$	4,943			$	(3,059	)		$	(9,008	)		$	(12,883	)

(1) Management fee expense is incentive-based and is equal to 10% of Income before management fee and income taxes and excludes the impact of consolidating entities. For the three months ended December 31, 2025 and 2024, Income before management fee, income taxes and excluding consolidated entities was income of $14,757 and $1,340, respectively. As a result, $1,476 and $134 was accrued for the 10% management fee expense in the 2025 and 2024 periods, respectively.

For the year ended December 31, 2025 and 2024, Income before management fee, income taxes and excluding consolidated entities was income of $74,488 and $58,699, respectively. As a result, $7,449 and $5,870 was accrued for the 10% management fee expense in 2025 and 2024, respectively.

Table I

ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Amounts in thousands, except share data)
						December 31,
						2025				2024
ASSETS
Cash, cash equivalents and US Treasury Bills						$	365,342			$	367,850
Investments in securities and partnerships							520,788				487,623
Investment in GAMCO stock							8,566				16,920
Receivable from brokers							22,954				27,634
Income taxes receivable, including deferred tax assets, net							4,967				6,021
Other receivables							19,983				4,778
Property and equipment, net							23,352				16,158
Other assets							12,727				8,305
Total assets						$	978,679			$	935,289
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Payable to brokers						$	7,567			$	5,491
Income taxes payable, including deferred tax liabilities, net							6,400				-
Compensation payable							24,302				17,747
Securities sold short, not yet purchased							6,029				8,436
Accrued expenses and other liabilities							3,334				5,317
Total liabilities							47,632				36,991
Redeemable noncontrolling interests							5,908				5,592
Total Associated Capital Group, Inc. equity							925,139				892,706
Total liabilities, redeemable noncontrolling interests and equity						$	978,679			$	935,289

Notes:
(1) Certain captions include amounts related to a consolidated variable interest entity ("VIE") and voting interest entity ("VOE"). Refer to the Consolidated Financial Statements included in the annual report to be filed for the year ended December 31, 2025 for more details on the impact of consolidating these entities.

(2) Investment in GAMCO stock: 351,648 and 699,749 shares, respectively.

Table II

ASSOCIATED CAPITAL GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except share and per share data)
		Three Months Ended December 31,									Year Ended December 31,
		2025				2024					2025				2024
Investment advisory and incentive fees		$	20,009			$	5,049				$	26,445			$	12,755
Other			65				105					443				420
Total revenues			20,074				5,154					26,888				13,175
Compensation			12,912				6,316					27,774				18,293
Operating expenses			2,219				1,897					8,122				7,765
Total expenses			15,131				8,213					35,896				26,058
Operating income/(loss) before management fee			4,943				(3,059		)			(9,008	)			(12,883	)
Net investment gain/(loss)			7,501				(41		)			65,239				42,767
Dividend income from GAMCO			60				92					218				5,454
Interest and dividend income, net			6,947				7,384					24,176				26,779
Charitable contributions			(4,380	)			(3,063		)			(4,411	)			(3,512	)
Investment and other income, net			10,128				4,372					85,222				71,488
Income before management fee and income taxes			15,071				1,313					76,214				58,605
Management fee			1,476				134					7,449				5,870
Income before income taxes			13,595				1,179					68,765				52,735
Income tax expense/(benefit)			2,435				(3,108		)			15,403				8,307
Income before noncontrolling interests			11,160				4,287					53,362				44,428
Income attributable to noncontrolling interests			38				7					376				100
Net income attributable to AC’s shareholders		$	11,122			$	4,280				$	52,986			$	44,328
Net income per share attributable to AC’s shareholders:
Basic and diluted		$	0.54			$	0.20				$	2.52			$	2.08
Weighted average shares outstanding:
Basic and diluted			20,714				21,222					21,005				21,347
Total shares outstanding – end of period			20,700				21,185					20,700				21,185

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.

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/b1ab265a-9ad4-49df-bd9a-b87879041896

FAQ

What were Associated Capital Group (ACGP) full-year 2025 net income and AUM figures?

Net income for 2025 was $53.0 million, and year-end AUM was $1.48 billion. According to the company, net income rose 20% year-over-year and AUM increased by 19% versus year-end 2024.

How did ACGP's merger arbitrage fund perform in 2025 and how does that affect investors?

The merger arbitrage strategy delivered gross returns of 16.10% (net ~12.0%) in 2025. According to the company, strong fund performance drove incentive fees and materially contributed to investment income and overall profitability.

What shareholder returns did ACGP provide in 2025 and what is the current dividend?

In 2025 ACGP returned $20.6 million via share repurchases and dividends and repurchased 484,866 Class A shares. According to the company, the quarterly dividend was increased to $0.10 per share, payable March 19, 2026.

Did ACGP change its capital allocation or growth strategy in 2026?

ACGP plans to accelerate capital deployment through acquisitions and alliances to broaden offerings and distribution. According to the company, it will pursue acquisitions and direct investments to leverage research and investment capabilities.

How did ACGP's operating costs and tax rate impact 2025 results?

Management fee expense increased to $7.4M in 2025 and the effective tax rate rose to 22.4%. According to the company, higher fees and a higher tax rate partially affected year-over-year profitability comparisons.