DIAMOND HILL INVESTMENT GROUP, INC. REPORTS RESULTS FOR SECOND QUARTER 2025 AND DECLARES QUARTERLY DIVIDEND
Diamond Hill Investment Group (Nasdaq: DHIL) reported Q2 2025 financial results with mixed performance. Total assets under management and advisement remained flat at $31.9 billion compared to December 2024. The company faced net client outflows of $644.0 million, contrasting with $229.0 million net inflows in Q2 2024. Revenue decreased 2% to $36.0 million, while net operating profit margin declined to 22% from 33% year-over-year.
Despite operational challenges, net income attributable to shareholders increased 92% to $15.6 million, with diluted EPS of $5.73, up from $2.93 in Q2 2024. The company announced a quarterly dividend of $1.50 per share and repurchased 59,763 shares. Additionally, Diamond Hill launched a new fixed income strategy, the Diamond Hill Securitized Total Return Fund, on July 1, 2025.
Diamond Hill Investment Group (Nasdaq: DHIL) ha riportato i risultati finanziari del secondo trimestre 2025 con performance contrastanti. Gli asset totali in gestione e consulenza sono rimasti stabili a 31,9 miliardi di dollari rispetto a dicembre 2024. La società ha registrato deflussi netti di clienti per 644,0 milioni di dollari, in netto contrasto con i flussi netti in entrata di 229,0 milioni di dollari nel secondo trimestre 2024. I ricavi sono diminuiti del 2% a 36,0 milioni di dollari, mentre il margine di profitto operativo netto è sceso al 22% dal 33% anno su anno.
Nonostante le difficoltà operative, l'utile netto attribuibile agli azionisti è aumentato del 92%, raggiungendo 15,6 milioni di dollari, con un utile diluito per azione di 5,73 dollari, in crescita rispetto ai 2,93 dollari del secondo trimestre 2024. La società ha annunciato un dividendo trimestrale di 1,50 dollari per azione e ha riacquistato 59.763 azioni. Inoltre, Diamond Hill ha lanciato una nuova strategia a reddito fisso, il Diamond Hill Securitized Total Return Fund, il 1° luglio 2025.
Diamond Hill Investment Group (Nasdaq: DHIL) reportó resultados financieros mixtos en el segundo trimestre de 2025. Los activos totales bajo gestión y asesoramiento se mantuvieron estables en 31.900 millones de dólares en comparación con diciembre de 2024. La compañía enfrentó salidas netas de clientes por 644,0 millones de dólares, en contraste con entradas netas de 229,0 millones en el segundo trimestre de 2024. Los ingresos disminuyeron un 2% hasta 36,0 millones de dólares, mientras que el margen de beneficio operativo neto cayó al 22% desde el 33% interanual.
A pesar de los desafíos operativos, el ingreso neto atribuible a los accionistas aumentó un 92%, alcanzando 15,6 millones de dólares, con ganancias diluidas por acción de 5,73 dólares, frente a los 2,93 dólares del segundo trimestre de 2024. La compañía anunció un dividendo trimestral de 1,50 dólares por acción y recompró 59.763 acciones. Además, Diamond Hill lanzó una nueva estrategia de renta fija, el Diamond Hill Securitized Total Return Fund, el 1 de julio de 2025.
Diamond Hill Investment Group (나스닥: DHIL)는 2025년 2분기 재무 실적을 발표하며 혼조된 성과를 보였습니다. 2024년 12월과 비교하여 총 운용 및 자문 자산은 319억 달러로 변동이 없었습니다. 회사는 6억 4,400만 달러의 순고객 유출을 겪었으며, 이는 2024년 2분기 2억 2,900만 달러 순유입과 대조적입니다. 매출은 2% 감소하여 3,600만 달러를 기록했고, 순영업이익률은 전년 대비 33%에서 22%로 하락했습니다.
운영상의 어려움에도 불구하고 주주 귀속 순이익은 92% 증가한 1,560만 달러를 기록했으며, 희석 주당순이익은 2024년 2분기의 2.93달러에서 5.73달러로 상승했습니다. 회사는 분기 배당금으로 주당 1.50달러를 발표했으며, 59,763주를 자사주 매입했습니다. 또한, 다이아몬드 힐은 2025년 7월 1일 새로운 고정 수익 전략인 Diamond Hill Securitized Total Return Fund를 출시했습니다.
Diamond Hill Investment Group (Nasdaq : DHIL) a publié des résultats financiers mitigés pour le deuxième trimestre 2025. Les actifs totaux sous gestion et conseil sont restés stables à 31,9 milliards de dollars par rapport à décembre 2024. La société a enregistré des sorties nettes de clients de 644,0 millions de dollars, contrastant avec des entrées nettes de 229,0 millions de dollars au T2 2024. Le chiffre d'affaires a diminué de 2 % pour atteindre 36,0 millions de dollars, tandis que la marge opérationnelle nette a chuté à 22 % contre 33 % en glissement annuel.
Malgré les défis opérationnels, le bénéfice net attribuable aux actionnaires a augmenté de 92 % pour atteindre 15,6 millions de dollars, avec un BPA dilué de 5,73 dollars, contre 2,93 dollars au T2 2024. La société a annoncé un dividende trimestriel de 1,50 dollar par action et a racheté 59 763 actions. De plus, Diamond Hill a lancé une nouvelle stratégie à revenu fixe, le Diamond Hill Securitized Total Return Fund, le 1er juillet 2025.
Diamond Hill Investment Group (Nasdaq: DHIL) meldete gemischte Finanzergebnisse für das zweite Quartal 2025. Die verwalteten und beratenden Gesamtvermögenswerte blieben im Vergleich zu Dezember 2024 mit 31,9 Milliarden US-Dollar unverändert. Das Unternehmen verzeichnete netto Kundenabflüsse von 644,0 Millionen US-Dollar, im Gegensatz zu Nettozuflüssen von 229,0 Millionen US-Dollar im zweiten Quartal 2024. Der Umsatz sank um 2 % auf 36,0 Millionen US-Dollar, während die Nettobetriebsmarge von 33 % auf 22 % im Jahresvergleich zurückging.
Trotz operativer Herausforderungen stieg der den Aktionären zurechenbare Nettogewinn um 92 % auf 15,6 Millionen US-Dollar, mit einem verwässerten Ergebnis je Aktie von 5,73 US-Dollar gegenüber 2,93 US-Dollar im zweiten Quartal 2024. Das Unternehmen kündigte eine vierteljährliche Dividende von 1,50 US-Dollar pro Aktie an und kaufte 59.763 Aktien zurück. Zudem startete Diamond Hill am 1. Juli 2025 eine neue festverzinsliche Strategie, den Diamond Hill Securitized Total Return Fund.
- None.
- Net client outflows of $644.0 million versus $229.0 million inflows in Q2 2024
- Revenue declined 2% to $36.0 million year-over-year
- Net operating profit margin decreased to 22% from 33% in Q2 2024
- Operating expenses increased 15% year-over-year
- Equity strategies experienced net outflows of $896 million in Q2 2025
Insights
Diamond Hill reported mixed Q2 results with net outflows and margin pressure, offset by strong investment income driving EPS growth.
Diamond Hill Investment Group's Q2 2025 results reveal a company navigating challenging market conditions. The firm reported
Despite market appreciation of
Revenue declined
What stands out in these results is the substantial
The company maintained its capital return program, distributing
The launch of the new Diamond Hill Securitized Total Return Fund on July 1, 2025, represents management's strategic focus on expanding fixed income offerings to offset equity outflows. However, the persistent outflows in the firm's equity strategies remain a significant challenge that will need to be addressed for long-term growth.
The following are selected highlights for the quarter ended June 30, 2025:
- Assets under management ("AUM") and assets under advisement ("AUA") combined were
$31.9 billion $31.9 billion $31.1 billion - Average AUM and AUA combined were
$31.0 billion $31.1 billion - Net client outflows were
$644.0 million $229.0 million - Revenue was
$36.0 million $36.7 million - Net operating profit margin was
22% , compared to33% for the second quarter of 2024. - Adjusted net operating profit margin1 was
30% for the second quarter of 2025 and31% for the second quarter of 2024. - Investment income was
$14.6 million $0.7 million - Net income attributable to common shareholders was
$15.6 million $8.1 million - Earnings per share attributable to common shareholders - diluted was
$5.73 $2.93 - Adjusted earnings per share attributable to common shareholders - diluted2 was
$2.86 $2.88 - The Company returned approximately
$12.3 million $8.3 million $4.0 million $1.50
"Steep market volatility at the start of the quarter created opportunities for investors with a long-term discipline like ours," said Heather Brilliant, CEO. "We remain focused on building lasting value through consistent execution, disciplined capital allocation, and continued investment in areas of competitive strength. As part of this commitment, we are excited to launch our new fixed income strategy, the Diamond Hill Securitized Total Return Fund, which launched on July 1, 2025."
_____________________________________________
1 Adjusts the financial measure calculated in accordance with
2 Adjusts the financial measure calculated in accordance with GAAP for the impact of the Consolidated Fund(s) and investment income related to certain other investments. See the reconciliation to the comparable GAAP financial measure at the end of this earnings release.
Capital Allocation:
The Company's board of directors approved the payment of a regular quarterly cash dividend of
Selected Income Statement Data
Three Months Ended June 30, | |||||
2025 | 2024 | % Change | |||
Revenue | $ 36,025,931 | $ 36,661,333 | (2) % | ||
Compensation and related costs, excluding deferred compensation | 17,685,228 | 18,330,666 | (4) % | ||
Deferred compensation expense (benefit) | 3,041,906 | (869,135) | NM | ||
Other expenses | 7,533,733 | 7,067,191 | 7 % | ||
Total operating expenses | 28,260,867 | 24,528,722 | 15 % | ||
Net operating income | 7,765,064 | 12,132,611 | (36) % | ||
Investment income (loss), net | 14,554,685 | (654,591) | NM | ||
Net income before taxes | 22,319,749 | 11,478,020 | 94 % | ||
Income tax expense | (6,161,321) | (3,352,180) | 84 % | ||
Net income | 16,158,428 | 8,125,840 | 99 % | ||
Net income attributable to redeemable noncontrolling interest | (587,851) | — | NM | ||
Net income attributable to common shareholders | $ 15,570,577 | $ 8,125,840 | 92 % | ||
Earnings per share attributable to common shareholders - diluted | $ 5.73 | $ 2.93 | 96 % | ||
Weighted average shares outstanding - diluted | 2,719,610 | 2,769,427 | (2) % | ||
Six Months Ended June 30, | |||||
2025 | 2024 | % Change | |||
Revenue | $ 73,142,141 | $ 72,956,263 | — % | ||
Compensation and related costs, excluding deferred compensation | 35,891,876 | 36,478,131 | (2) % | ||
Deferred compensation expense | 2,077,251 | 2,321,228 | (11) % | ||
Other expenses | 14,344,051 | 13,721,467 | 5 % | ||
Total operating expenses | 52,313,178 | 52,520,826 | — % | ||
Net operating income | 20,828,963 | 20,435,437 | 2 % | ||
Investment income, net | 15,674,654 | 8,711,087 | 80 % | ||
Net income before taxes | 36,503,617 | 29,146,524 | 25 % | ||
Income tax expense | (9,972,339) | (8,004,751) | 25 % | ||
Net income | 26,531,278 | 21,141,773 | 25 % | ||
Net income attributable to redeemable noncontrolling interest | (598,438) | — | NM | ||
Net income attributable to common shareholders | $ 25,932,840 | $ 21,141,773 | 23 % | ||
Earnings per share attributable to common shareholders - diluted | $ 9.49 | $ 7.57 | 25 % | ||
Weighted average shares outstanding - diluted | 2,734,009 | 2,793,133 | (2) % | ||
Selected Assets Under Management and Assets Under Advisement Data
Change in AUM and AUA | |||
For the Three Months Ended June 30, | |||
(in millions) | 2025 | 2024 | |
AUM at beginning of period | $ 29,792 | $ 29,979 | |
Net cash inflows (outflows) | |||
Proprietary Funds | (146) | 117 | |
Separately managed accounts | (273) | (185) | |
Collective investment trusts | (256) | 247 | |
Other pooled vehicles | 31 | 50 | |
(644) | 229 | ||
Net market appreciation (depreciation) and income | 923 | (917) | |
Increase (decrease) during period | 279 | (688) | |
AUM at end of period | 30,071 | 29,291 | |
AUA at end of period | 1,788 | 1,843 | |
Total AUM and AUA at end of period | $ 31,859 | $ 31,134 | |
Average AUM during period | $ 29,216 | $ 29,206 | |
Average AUA during period | 1,758 | 1,866 | |
Total average AUM and AUA during period | $ 30,974 | $ 31,072 | |
Change in AUM and AUA | |||
For the Six Months Ended June 30, | |||
(in millions) | 2025 | 2024 | |
AUM at beginning of period | $ 30,012 | $ 27,418 | |
Net cash inflows (outflows) | |||
Proprietary Funds | 241 | 209 | |
Separately managed accounts | (722) | (347) | |
Collective investment trusts | (560) | 417 | |
Other pooled vehicles | (131) | 68 | |
(1,172) | 347 | ||
Net market appreciation and income | 1,231 | 1,526 | |
Increase during period | 59 | 1,873 | |
AUM at end of period | 30,071 | 29,291 | |
AUA at end of period | 1,788 | 1,843 | |
Total AUM and AUA at end of period | $ 31,859 | $ 31,134 | |
Average AUM during period | $ 29,818 | $ 28,652 | |
Average AUA during period | 1,841 | 1,833 | |
Total average AUM and AUA during period | $ 31,659 | $ 30,485 | |
Net Cash Inflows (Outflows) Further Breakdown | |||||||
For the Three Months Ended | For the Six Months Ended | ||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | |||
Net cash inflows (outflows) | |||||||
Equity | $ (896) | $ (345) | $ (2,184) | $ (722) | |||
Fixed Income | 252 | 574 | 1,012 | 1,069 | |||
$ (644) | $ 229 | $ (1,172) | $ 347 | ||||
About Diamond Hill:
Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment. An independent active asset manager with significant employee ownership, Diamond Hill's investment strategies include differentiated
Non-GAAP Financial Measures and Reconciliation
As supplemental information, the Company is providing certain financial measures that are based on methodologies other than GAAP ("non-GAAP"). Management believes the non-GAAP financial measures below are useful measures of the Company's core business activities, are important metrics in estimating the value of an asset management business, and help facilitate comparisons to Company operating performance across periods. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be used as a substitute for financial measures calculated in accordance with GAAP and may be calculated differently from similarly titled non-GAAP measures used by other companies. The following schedules reconcile the differences between financial measures calculated in accordance with GAAP and non-GAAP financial measures for the three-month and six-month periods ended June 30, 2025 and 2024, respectively. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, as well as the Company's condensed consolidated financial statements and related notes in its quarterly report on Form 10-Q for the quarter ended June 30, 2025.
Three Months Ended June 30, 2025 | |||||||||||||
(in thousands, except percentages | Total | Net | Total | Income tax | Net income | Earnings per | Net | ||||||
GAAP Basis | $ 28,261 | $ 7,765 | $ 14,555 | $ 6,161 | $ 15,571 | $ 5.73 | 22 % | ||||||
Non-GAAP Adjustments: | |||||||||||||
Deferred compensation liability(1) | (3,042) | 3,042 | (3,042) | — | — | — | 8 % | ||||||
Consolidated Funds(2) | — | 66 | (1,168) | (146) | (368) | (0.13) | — | ||||||
Other investment income(3) | — | — | (10,345) | (2,933) | (7,412) | (2.74) | — | ||||||
Adjusted Non-GAAP basis | $ 25,219 | $ 10,873 | $ — | $ 3,082 | $ 7,791 | $ 2.86 | 30 % | ||||||
Three Months Ended June 30, 2024 | |||||||||||||
(in thousands, except percentages | Total | Net | Total | Income tax | Net income | Earnings per | Net | ||||||
GAAP Basis | $ 24,529 | $ 12,133 | $ (655) | $ 3,352 | $ 8,126 | $ 2.93 | 33 % | ||||||
Non-GAAP Adjustments: | |||||||||||||
Deferred compensation liability(1) | 869 | (869) | 869 | — | — | — | (2) % | ||||||
Other investment income(3) | — | — | (214) | (62) | (152) | (0.05) | — | ||||||
Adjusted Non-GAAP basis | $ 25,398 | $ 11,264 | $ — | $ 3,290 | $ 7,974 | $ 2.88 | 31 % | ||||||
Six Months Ended June 30, 2025 | |||||||||||||
(in thousands, except percentages | Total | Net | Total | Income tax | Net income | Earnings per | Net | ||||||
GAAP Basis | $ 52,313 | $ 20,829 | $ 15,675 | $ 9,972 | $ 25,933 | $ 9.49 | 28 % | ||||||
Non-GAAP Adjustments: | |||||||||||||
Deferred compensation liability(1) | (2,077) | 2,077 | (2,077) | — | — | — | 3 % | ||||||
Consolidated Funds(2) | — | 106 | (2,287) | (440) | (1,143) | (0.42) | — % | ||||||
Other investment income(3) | — | — | (11,311) | (3,141) | (8,170) | (2.99) | — | ||||||
Adjusted Non-GAAP basis | $ 50,236 | $ 23,012 | $ — | $ 6,391 | $ 16,620 | $ 6.08 | 31 % | ||||||
Six Months Ended June 30, 2024 | |||||||||||||
(in thousands, except percentages | Total | Net | Total | Income tax | Net income | Earnings per | Net | ||||||
GAAP Basis | $ 52,521 | $ 20,435 | $ 8,711 | $ 8,005 | $ 21,142 | $ 7.57 | 28 % | ||||||
Non-GAAP Adjustments: | |||||||||||||
Deferred compensation liability (1) | (2,321) | 2,321 | (2,321) | — | — | — | 3 % | ||||||
Other investment income(3) | — | — | (6,390) | (1,757) | (4,633) | (1.66) | — | ||||||
Adjusted Non-GAAP basis | $ 50,200 | $ 22,756 | $ — | $ 6,248 | $ 16,509 | $ 5.91 | 31 % | ||||||
(1) This non-GAAP adjustment removes the compensation expense resulting from market valuation changes in the Company's deferred compensation plans' liability and the related net gains/losses on investments designated as an economic hedge against the related liability. Amounts deferred under the deferred compensation plans are adjusted for appreciation/depreciation of investments chosen by participants. The Company believes it is useful to offset the non-operating investment income or loss realized on the hedges against the related compensation expense and remove the net impact to help readers understand the Company's core operating results and to improve comparability from period to period.
(2) This non-GAAP adjustment removes the impact that the Consolidated Fund(s) had on the Company's GAAP consolidated statements of income. Specifically, the Company adds back the operating expenses and subtracts the investment income of the Consolidated Fund(s). The adjustment to net operating income represents the operating expenses of the Consolidated Fund(s), net of the elimination of related management and administrative fees. The adjustment to net income attributable to common shareholders represents the net income of the Consolidated Fund(s), net of redeemable non-controlling interests. The Company believes removing the impact of the Consolidated Fund(s) helps readers understand its core operating results and improves comparability from period to period.
(3) This non-GAAP adjustment represents the net gains or losses earned on the Company's non-consolidated investment portfolio that are not designated as economic hedges of the Deferred Compensation Plans' liability, non-consolidated seed investments, and other investments. The Company believes adjusting for these non-operating income or loss items helps readers understand the Company's core operating results and improves comparability from period to period.
(4) The income tax expense impacts were calculated and resulted in the overall non-GAAP effective tax rates of
The Company does not recommend that investors consider non-GAAP financial measures alone, or as a substitute for, financial information prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
Throughout this press release, the Company may make "forward-looking statements" within the meaning of the
Factors that may cause the Company's actual results or experiences to differ materially from results discussed in forward-looking statements are discussed under Part I, Item 1A (Risk Factors) and elsewhere in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as well as in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. These factors include, but are not limited to: (i) any reduction in the Company's AUM or AUA; (ii) withdrawal, renegotiation, or termination of investment advisory agreements; (iii) damage to the Company's reputation; (iv) failure to comply with investment guidelines or other contractual requirements; (v) challenges from the competition the Company faces in its business; (vi) challenges from industry trends towards lower fee strategies and model portfolio arrangements; (vii) adverse regulatory and legal developments; (viii) unfavorable changes in tax laws or limitations; (ix) interruptions in or failure to provide critical technological service by the Company or third parties; (x) adverse civil litigation and government investigations or proceedings; (xi) failure to adapt to or successfully incorporate technological changes, such as artificial intelligence ("AI"), into the Company's business; (xii) risk of loss on the Company's investments; (xiii) lack of sufficient capital on satisfactory terms; (xiv) losses or costs not covered by insurance; (xv) a decline in the performance of the Company's products; (xvi) changes in interest rates and inflation; (xvii) changes in national and local economic and political conditions; (xviii) the continuing economic uncertainty in various parts of the world; (xix) the effects of pandemics and the actions taken in connection therewith; (xx) political uncertainty caused by, among other things, political parties, economic nationalist sentiments, tensions surrounding the current socioeconomic landscape; (xxi) changes in trade policy, including new tariffs and retaliatory measures, by the
In light of the significant uncertainties in forward-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that its expectations, objectives and plans will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company and speak only as of the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect it. The Company assumes no obligation to update any forward-looking statements after the date they are made, whether as a result of new information, future events or developments or otherwise, except as required by law, although it may do so from time to time. The Company does not endorse any projections regarding future performance that may be made by third parties.
Investor Contact: |
Tom Line—Chief Financial Officer |
614-255-5989 (tline@diamond-hill.com) |
Media Contact: |
Lara Hoffmans—Managing Director-Marketing |
614-255-5550 (lhoffmans@diamond-hill.com ) |
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