Outflows pressure Virtus Investment Partners (NYSE: VRTS) in Q4 2025
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Virtus Investment Partners reported weaker fourth-quarter 2025 revenue but higher GAAP earnings per share. Revenue was $208.0 million, down 11% from a year earlier and 4% from the prior quarter, as average assets under management declined.
Diluted EPS rose to $5.17 from $4.66 a year ago, while diluted EPS, as adjusted, fell to $6.50 from $7.50. Assets under management were $159.5 billion at December 31, 2025, down from $169.3 billion in the prior quarter, with net outflows of $8.1 billion driven mainly by equity strategies. The company ended the quarter with $386.5 million of cash, repurchased 60,292 shares for $10.0 million, and reported net debt of $12.5 million, or 0.0x EBITDA.
Positive
- None.
Negative
- Significant net outflows and AUM decline: Net flows were ($8.1) billion in Q4 2025 versus ($3.9) billion in the prior quarter, and assets under management fell to $159.5 billion from $169.3 billion, driven largely by outflows from equity strategies.
Insights
Virtus shows solid EPS but faces significant AUM pressure from equity outflows.
Virtus Investment Partners delivered mixed fourth-quarter 2025 results. GAAP diluted EPS increased to
However, core trends softened. Revenues declined 11% year over year to
Business momentum in assets was notably weak. Ending assets under management fell to
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
(800 ) 248-7971
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02 Results of Operations and Financial Condition.
On February 6, 2026, Virtus Investment Partners, Inc. (the “Company”) issued a press release reporting results for the quarter ended December 31, 2025. A copy of this press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this report, including the exhibits hereto, (i) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and (ii) shall not be incorporated by reference into any filing of the Company with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filings (unless the Company specifically states that the information or exhibits in this particular report are incorporated by reference).
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release of Virtus Investment Partners, Inc., dated February 6, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VIRTUS INVESTMENT PARTNERS, INC. | ||||||||||||||
| Dated: | February 6, 2026 | By: | /s/ Michael A. Angerthal | |||||||||||
| Name: | Michael A. Angerthal | |||||||||||||
| Title: | Chief Financial Officer | |||||||||||||
 | News Release | ||||
Virtus Investment Partners Announces Financial Results for Fourth Quarter 2025
▪Earnings Per Share - Diluted of $5.17; Earnings Per Share - Diluted, as Adjusted, of $6.50
▪Total Sales of $5.3B; Net Flows of ($8.1B); Assets Under Management of $159.5B
Hartford, CT, February 6, 2026 - Virtus Investment Partners, Inc. (NYSE: VRTS) today reported financial results for the three months ended December 31, 2025.
Financial Highlights (Unaudited)
(in millions, except per share data or as noted)
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
| 12/31/2025 | 12/31/2024 | Change | 9/30/2025 | Change | |||||||||||||||||||||||||
| U.S. GAAP Financial Measures | |||||||||||||||||||||||||||||
| Revenues | $ | 208.0 | $ | 233.5 | (11 | %) | $ | 216.4 | (4 | %) | |||||||||||||||||||
| Operating expenses | $ | 168.2 | $ | 182.8 | (8 | %) | $ | 169.3 | (1 | %) | |||||||||||||||||||
| Operating income (loss) | $ | 39.8 | $ | 50.7 | (21 | %) | $ | 47.1 | (15 | %) | |||||||||||||||||||
| Operating margin | 19.1 | % | 21.7 | % | 21.7 | % | |||||||||||||||||||||||
| Net income (loss) attributable to Virtus Investment Partners, Inc. | $ | 35.5 | $ | 33.3 | 7 | % | $ | 31.9 | 11 | % | |||||||||||||||||||
| Earnings (loss) per share - diluted | $ | 5.17 | $ | 4.66 | 11 | % | $ | 4.65 | 11 | % | |||||||||||||||||||
| Weighted average shares outstanding - diluted | 6.857 | 7.139 | (4 | %) | 6.867 | — | % | ||||||||||||||||||||||
| Non-GAAP Financial Measures (1) | |||||||||||||||||||||||||||||
| Revenues, as adjusted | $ | 188.9 | $ | 212.0 | (11 | %) | $ | 196.7 | (4 | %) | |||||||||||||||||||
| Operating expenses, as adjusted | $ | 127.8 | $ | 137.6 | (7 | %) | $ | 131.7 | (3 | %) | |||||||||||||||||||
| Operating income (loss), as adjusted | $ | 61.1 | $ | 74.5 | (18 | %) | $ | 65.0 | (6 | %) | |||||||||||||||||||
| Operating margin, as adjusted | 32.4 | % | 35.1 | % | 33.0 | % | |||||||||||||||||||||||
| Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted | $ | 44.5 | $ | 53.5 | (17 | %) | $ | 45.9 | (3 | %) | |||||||||||||||||||
| Earnings (loss) per share - diluted, as adjusted | $ | 6.50 | $ | 7.50 | (13 | %) | $ | 6.69 | (3 | %) | |||||||||||||||||||
(1) See the information beginning on page 10 for reconciliations to the most directly comparable U.S. GAAP measures and other important disclosures
Earnings Summary
The company presents U.S. GAAP and non-GAAP earnings information in this release. Management believes that the non-GAAP financial measures presented reflect the company’s operating results from providing investment management and related services to individuals and institutions and uses these measures to evaluate financial performance. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Non-GAAP information and reconciliations to the most comparable U.S. GAAP measures can be found beginning on page 10 of this earnings release.
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 2.
Assets Under Management and Asset Flows
(in billions)
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
| 12/31/2025 | 12/31/2024 | Change | 9/30/2025 | Change | |||||||||||||||||||||||||
| Ending total assets under management | $ | 159.5 | $ | 175.0 | (9 | %) | $ | 169.3 | (6 | %) | |||||||||||||||||||
| Average total assets under management | $ | 165.2 | $ | 182.1 | (9 | %) | $ | 170.3 | (3 | %) | |||||||||||||||||||
| Total sales | $ | 5.3 | $ | 6.4 | (17 | %) | $ | 6.3 | (15 | %) | |||||||||||||||||||
| Net flows | $ | (8.1) | $ | (4.8) | 67 | % | $ | (3.9) | 110 | % | |||||||||||||||||||
Total assets under management of $159.5 billion at December 31, 2025 compared with $169.3 billion in the prior quarter due to market performance and net outflows in U.S. retail funds, institutional, and retail separate accounts partially offset by positive net flows in exchange-traded funds (ETFs). In addition, the company provided services to $1.8 billion of other fee-earning assets that are not included in assets under management.
Total sales of $5.3 billion compared with $6.3 billion in the prior quarter. Institutional sales of $1.4 billion decreased from $2.0 billion, which included the issuance of a $0.4 billion collateralized loan obligation (CLO). Retail separate account sales of $1.2 billion compared with $1.4 billion as higher wealth management sales were more than offset by intermediary sold. Open-end fund sales, including $0.8 billion of ETF sales, were $2.8 billion and essentially unchanged.
Net flows of ($8.1) billion compared with ($3.9) billion in the prior quarter and were driven by quality-oriented equity strategies. Institutional net flows of ($3.0) billion compared with ($1.5) billion and were primarily due to net outflows in large-cap growth strategies. Retail separate account net flows of ($2.5) billion compared with ($1.2) billion with net outflows led by small- and small/mid-cap strategies. Open-end fund net flows, which included $0.6 billion of positive ETF net flows, were ($2.5) billion primarily due to net outflows in equities and compared with ($1.1) billion in the prior quarter.
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 3.
GAAP Results
Operating income of $39.8 million decreased from $47.1 million in the prior quarter reflecting a 4% decline in revenues due to lower average assets under management, partially offset by a 1% decline in operating expenses. Lower operating expenses were primarily due to a decline in employment expenses due to lower variable incentive compensation, as other operating expenses were essentially unchanged.
Net income attributable to Virtus Investment Partners, Inc. of $5.17 per diluted share included ($0.40) of CLO expenses, ($0.26) of realized and unrealized losses on investments, ($0.24) of acquisition and integration costs, and ($0.09) of fair value adjustments to contingent consideration, partially offset by $0.53 of fair value adjustments to minority interests and $0.16 of discrete tax adjustments. Net income per diluted share of $4.65 in the prior quarter included ($1.54) of realized and unrealized losses on investments and ($0.05) of acquisition and integration costs, partially offset by $0.42 of fair value adjustments to minority interests.
The effective tax rate of 28% compared with 29% in the prior quarter, primarily reflecting a decrease in income tax valuation allowances for net unrealized and realized losses compared to the prior quarter.
Non-GAAP Results
Revenues, as adjusted, of $188.9 million decreased 4% from $196.7 million in the prior quarter primarily due to lower average assets under management.
Employment expenses, as adjusted, of $95.8 million declined 3% due to lower variable incentive compensation. Other operating expenses, as adjusted, of $30.2 million decreased from $31.1 million in the prior quarter, which included discrete business initiative expenses of $1.0 million.
Operating income, as adjusted, of $61.1 million and the related margin of 32.4% compared with $65.0 million and 33.0%, respectively, due to lower revenues partially offset by a 3% decline in total operating expenses.
Net income attributable to Virtus Investment Partners, Inc., as adjusted, per diluted share was $6.50 and compared with $6.69 in the prior quarter. The sequential decrease primarily reflected lower average assets.
The effective tax rate, as adjusted, of 25% decreased from 26% in the prior quarter due to a lower state tax rate.
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 4.
Select Balance Sheet Items and Metrics (Unaudited)
(in millions)
| As of | As of | ||||||||||||||||||||||||||||
| Select Balance Sheet Items | 12/31/2025 | 12/31/2024 | Change | 9/30/2025 | Change | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 386.5 | $ | 265.9 | 45 | % | $ | 370.6 | 4 | % | |||||||||||||||||||
| Gross debt (1) | $ | 399.0 | $ | 236.1 | 69 | % | $ | 400.0 | — | % | |||||||||||||||||||
| Contingent consideration (2) | $ | 39.1 | $ | 63.5 | (38 | %) | $ | 37.4 | 5 | % | |||||||||||||||||||
| Redeemable noncontrolling interests (3) | $ | 26.8 | $ | 61.6 | (57 | %) | $ | 38.7 | (31 | %) | |||||||||||||||||||
| Total equity exc. noncontrolling interests | $ | 934.1 | $ | 897.5 | 4 | % | $ | 918.7 | 2 | % | |||||||||||||||||||
| Other Metrics | |||||||||||||||||||||||||||||
| Working capital (4) | $ | 254.0 | $ | 134.5 | 89 | % | $ | 288.4 | (12 | %) | |||||||||||||||||||
| Net debt (cash) (5) | $ | 12.5 | $ | (29.8) | N/M | $ | 29.4 | (57 | %) | ||||||||||||||||||||
N/M - Not Meaningful
(1)Excludes deferred financing costs of $9.0 million, $3.9 million, and $9.4 million, as of December 31, 2025, December 31, 2024, and September 30, 2025, respectively
(2)Represents estimated revenue participation and other contingent payments
(3)Excludes redeemable noncontrolling interests of consolidated investment products of $76.2 million, $45.7 million, and $64.5 million as of December 31, 2025, December 31, 2024, and September 30, 2025, respectively
(4)Defined as cash and cash equivalents plus accounts receivable, net, and deferred compensation related investments less accrued compensation and benefits (excluding those of minority interests), accounts payable and accrued liabilities, dividends payable, as well as debt principal payments and revenue participation obligations due within 12 months
(5)Defined as gross debt less cash and cash equivalents in accordance with the company's credit agreement
Cash and equivalents at December 31, 2025 were $386.5 million, up 4% from the prior quarter as cash earnings were primarily offset by the previously-announced minority investment in Crescent Cove for $40.0 million and return of capital to shareholders. Working capital at December 31, 2025 was $254.0 million.
During the quarter, the company repurchased 60,292 shares for $10.0 million.
Gross debt at December 31, 2025 was $399.0 million. Net debt was $12.5 million, or 0.0x EBITDA.
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 5.
Conference Call and Investor Presentation
Management will host an investor conference call and webcast on Friday, February 6, 2026, at 10 a.m. Eastern to discuss these financial results and related matters. The presentation that will accompany the conference call is available in the Investor Relations section of virtus.com. A replay of the call will be available in the Investor Relations section for at least one year. We routinely post important information for investors on the Investor Relations section of our website and may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. We may also use social media channels to communicate with our investors and the public about our company, our products and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.
| Investor Relations Contact | Media Relations Contact | ||||
Sean Rourke (860) 263-4709 sean.rourke@virtus.com | Laura Parsons (860) 503-1382 laura.parsons@virtus.com | ||||
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 6.
U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
N/M - Not Meaningful
| Three Months Ended | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2025 | 12/31/2024 | Change | 9/30/2025 | Change | 12/31/2025 | 12/31/2024 | Change | ||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment management fees | $ | 175,710 | $ | 199,975 | (12 | %) | $ | 183,762 | (4 | %) | $ | 725,039 | $ | 773,830 | (6 | %) | |||||||||||||||||||||||||||||||
| Distribution and service fees | 12,341 | 13,685 | (10 | %) | 12,517 | (1 | %) | 49,579 | 54,692 | (9 | %) | ||||||||||||||||||||||||||||||||||||
| Administration and shareholder service fees | 18,351 | 18,748 | (2 | %) | 18,869 | (3 | %) | 73,275 | 74,294 | (1 | %) | ||||||||||||||||||||||||||||||||||||
| Other income and fees | 1,621 | 1,086 | 49 | % | 1,237 | 31 | % | 4,972 | 4,133 | 20 | % | ||||||||||||||||||||||||||||||||||||
| Total revenues | 208,023 | 233,494 | (11 | %) | 216,385 | (4 | %) | 852,865 | 906,949 | (6 | %) | ||||||||||||||||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||||||||||||||||||||
| Employment expenses | 94,790 | 106,202 | (11 | %) | 98,807 | (4 | %) | 400,720 | 432,587 | (7 | %) | ||||||||||||||||||||||||||||||||||||
| Distribution and other asset-based expenses | 22,142 | 24,005 | (8 | %) | 22,034 | — | % | 89,047 | 96,223 | (7 | %) | ||||||||||||||||||||||||||||||||||||
| Other operating expenses | 32,307 | 32,738 | (1 | %) | 32,428 | — | % | 130,358 | 127,526 | 2 | % | ||||||||||||||||||||||||||||||||||||
| Operating expenses of consolidated investment products | 3,506 | 2,923 | 20 | % | 496 | N/M | 5,812 | 6,987 | (17 | %) | |||||||||||||||||||||||||||||||||||||
| Restructuring expense | — | — | N/M | 693 | (100 | %) | 693 | 1,487 | (53 | %) | |||||||||||||||||||||||||||||||||||||
| Change in fair value of contingent consideration | 800 | 1,692 | (53 | %) | — | N/M | (2,214) | (5,608) | (61 | %) | |||||||||||||||||||||||||||||||||||||
| Depreciation expense | 1,719 | 2,330 | (26 | %) | 1,922 | (11 | %) | 7,992 | 8,958 | (11 | %) | ||||||||||||||||||||||||||||||||||||
| Amortization expense | 12,944 | 12,883 | — | % | 12,945 | — | % | 51,777 | 56,299 | (8 | %) | ||||||||||||||||||||||||||||||||||||
| Total operating expenses | 168,208 | 182,773 | (8 | %) | 169,325 | (1 | %) | 684,185 | 724,459 | (6 | %) | ||||||||||||||||||||||||||||||||||||
| Operating Income (Loss) | 39,815 | 50,721 | (22 | %) | 47,060 | (15 | %) | 168,680 | 182,490 | (8 | %) | ||||||||||||||||||||||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||||||||||||||||||||||||||
| Realized and unrealized gain (loss) on investments, net | 586 | (2,501) | N/M | 2,257 | (74 | %) | 5,823 | 3,914 | 49 | % | |||||||||||||||||||||||||||||||||||||
| Realized and unrealized gain (loss) of consolidated investment products, net | (337) | 2,069 | N/M | (14,913) | (98 | %) | (28,103) | (14,460) | 94 | % | |||||||||||||||||||||||||||||||||||||
| Other income (expense), net | 802 | 341 | 135 | % | 536 | 50 | % | 3,473 | 2,036 | 71 | % | ||||||||||||||||||||||||||||||||||||
| Total other income (expense), net | 1,051 | (91) | N/M | (12,120) | N/M | (18,807) | (8,510) | 121 | % | ||||||||||||||||||||||||||||||||||||||
| Interest Income (Expense) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (7,029) | (5,033) | 40 | % | (5,299) | 33 | % | (21,471) | (22,132) | (3 | %) | ||||||||||||||||||||||||||||||||||||
| Interest and dividend income | 5,033 | 3,463 | 45 | % | 2,200 | 129 | % | 12,303 | 12,488 | (1 | %) | ||||||||||||||||||||||||||||||||||||
| Interest and dividend income of investments of consolidated investment products | 47,944 | 50,604 | (5 | %) | 45,918 | 4 | % | 187,452 | 204,732 | (8 | %) | ||||||||||||||||||||||||||||||||||||
| Interest expense of consolidated investment products | (39,562) | (41,157) | (4 | %) | (33,310) | 19 | % | (140,908) | (161,192) | (13 | %) | ||||||||||||||||||||||||||||||||||||
| Total interest income (expense), net | 6,386 | 7,877 | (19 | %) | 9,509 | (33 | %) | 37,376 | 33,896 | 10 | % | ||||||||||||||||||||||||||||||||||||
| Income (Loss) Before Income Taxes | 47,252 | 58,507 | (19 | %) | 44,449 | 6 | % | 187,249 | 207,876 | (10 | %) | ||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 13,400 | 19,047 | (30 | %) | 13,108 | 2 | % | 51,261 | 55,423 | (8 | %) | ||||||||||||||||||||||||||||||||||||
| Net Income (Loss) | 33,852 | 39,460 | (14 | %) | 31,341 | 8 | % | 135,988 | 152,453 | (11 | %) | ||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | 1,598 | (6,166) | N/M | 585 | 173 | % | 2,408 | (30,707) | N/M | ||||||||||||||||||||||||||||||||||||||
| Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | $ | 35,450 | $ | 33,294 | 6 | % | $ | 31,926 | 11 | % | $ | 138,396 | $ | 121,746 | 14 | % | |||||||||||||||||||||||||||||||
| Earnings (Loss) Per Share - Basic | $ | 5.25 | $ | 4.75 | 11 | % | $ | 4.73 | 11 | % | $ | 20.27 | $ | 17.19 | 18 | % | |||||||||||||||||||||||||||||||
| Earnings (Loss) Per Share - Diluted | $ | 5.17 | $ | 4.66 | 11 | % | $ | 4.65 | 11 | % | $ | 19.97 | $ | 16.89 | 18 | % | |||||||||||||||||||||||||||||||
| Cash Dividends Declared Per Common Share | $ | 2.40 | $ | 2.25 | 7 | % | $ | 2.40 | — | % | $ | 9.30 | $ | 8.30 | 12 | % | |||||||||||||||||||||||||||||||
| Weighted Average Shares Outstanding - Basic | 6,752 | 7,012 | (4 | %) | 6,757 | — | % | 6,829 | 7,082 | (4 | %) | ||||||||||||||||||||||||||||||||||||
| Weighted Average Shares Outstanding - Diluted | 6,857 | 7,139 | (4 | %) | 6,867 | — | % | 6,929 | 7,210 | (4 | %) | ||||||||||||||||||||||||||||||||||||
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 7.
Assets Under Management - Product and Asset Class
(in millions)
| Three Months Ended | |||||||||||||||||||||||||||||
| 12/31/2024 | 3/31/2025 | 6/30/2025 | 9/30/2025 | 12/31/2025 | |||||||||||||||||||||||||
| By Product (period end): | |||||||||||||||||||||||||||||
| Open-End Funds (1) | $ | 56,073 | $ | 53,608 | $ | 55,653 | $ | 55,724 | $ | 52,759 | |||||||||||||||||||
| Closed-End Funds | 10,225 | 10,273 | 10,481 | 10,867 | 10,635 | ||||||||||||||||||||||||
| Retail Separate Accounts (2) | 49,536 | 46,920 | 47,445 | 46,798 | 43,091 | ||||||||||||||||||||||||
| Institutional Accounts (3) | 59,167 | 56,662 | 57,131 | 55,936 | 53,008 | ||||||||||||||||||||||||
| Total | $ | 175,001 | $ | 167,463 | $ | 170,710 | $ | 169,325 | $ | 159,493 | |||||||||||||||||||
By Product (average) (4) | |||||||||||||||||||||||||||||
| Open-End Funds (1) | $ | 57,905 | $ | 56,104 | $ | 53,742 | $ | 55,889 | $ | 54,502 | |||||||||||||||||||
| Closed-End Funds | 10,452 | 10,288 | 10,183 | 10,598 | 10,828 | ||||||||||||||||||||||||
| Retail Separate Accounts (2) | 50,610 | 49,321 | 46,637 | 47,363 | 46,287 | ||||||||||||||||||||||||
| Institutional Accounts (3) | 63,121 | 57,877 | 56,397 | 56,426 | 53,603 | ||||||||||||||||||||||||
| Total | $ | 182,088 | $ | 173,590 | $ | 166,959 | $ | 170,276 | $ | 165,220 | |||||||||||||||||||
| By Asset Class (period end): | |||||||||||||||||||||||||||||
| Equity | $ | 100,792 | $ | 93,624 | $ | 96,232 | $ | 92,066 | $ | 82,584 | |||||||||||||||||||
| Fixed Income | 37,696 | 37,930 | 38,594 | 39,750 | 39,879 | ||||||||||||||||||||||||
| Multi-Asset (5) | 21,174 | 20,834 | 21,430 | 22,078 | 21,617 | ||||||||||||||||||||||||
| Alternatives (6) | 15,339 | 15,075 | 14,454 | 15,431 | 15,413 | ||||||||||||||||||||||||
| Total | $ | 175,001 | $ | 167,463 | $ | 170,710 | $ | 169,325 | $ | 159,493 | |||||||||||||||||||
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 8.
Assets Under Management - Average Management Fees Earned (7)
(in basis points)
| Three Months Ended | |||||||||||||||||||||||||||||
| 12/31/2024 | 3/31/2025 | 6/30/2025 | 9/30/2025 | 12/31/2025 | |||||||||||||||||||||||||
| By Product: | |||||||||||||||||||||||||||||
| Open-End Funds (1) | 49.5 | 47.8 | 46.7 | 47.0 | 44.7 | ||||||||||||||||||||||||
| Closed-End Funds | 58.8 | 58.5 | 58.6 | 58.5 | 58.4 | ||||||||||||||||||||||||
| Retail Separate Accounts (2) | 42.6 | 42.9 | 42.9 | 41.8 | 42.0 | ||||||||||||||||||||||||
| Institutional Accounts (3)(8) | 31.9 | 31.8 | 31.8 | 31.6 | 31.5 | ||||||||||||||||||||||||
All Products (8) | 42.0 | 41.7 | 41.3 | 41.2 | 40.6 | ||||||||||||||||||||||||
(1) Represents assets under management of U.S. retail funds, global funds, and exchange-traded funds
(2) Includes investment models provided to managed account sponsors
(3) Represents assets under management of institutional separate and commingled accounts including structured products
(4) Calculated according to revenue earning basis that includes average daily, weekly, monthly beginning balance, monthly ending balance, or quarter beginning and ending balance, as well as quarter beginning or ending spot balance
(5) Consists of multi-asset offerings not included in equity, fixed income, and alternatives
(6) Consists of real estate securities, managed futures, event-driven, infrastructure, and other strategies
(7) Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude the impact of consolidated investment products and are net of revenue-related adjustments. Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed through to third-party client intermediaries for services to investors in sponsored investment products
(8) Includes performance-related fees, in basis points, earned during the three months ended as follows:
| 12/31/2024 | 3/31/2025 | 6/30/2025 | 9/30/2025 | 12/31/2025 | |||||||||||||||||||||||||
| Institutional Accounts | 1.0 | 0.2 | 0.7 | 0.2 | 0.1 | ||||||||||||||||||||||||
| All Products | 0.3 | 0.1 | 0.2 | 0.1 | — | ||||||||||||||||||||||||
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 9.
Assets Under Management - Asset Flows by Product
(in millions)
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2024 | 3/31/2025 | 6/30/2025 | 9/30/2025 | 12/31/2025 | 12/31/2024 | 12/31/2025 | |||||||||||||||||||||||||||||||||||
| Open-End Funds (1) | |||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 58,100 | $ | 56,073 | $ | 53,608 | $ | 55,653 | $ | 55,724 | $ | 56,062 | $ | 56,073 | |||||||||||||||||||||||||||
| Inflows | 3,049 | 3,038 | 2,825 | 2,815 | 2,760 | 12,420 | 11,438 | ||||||||||||||||||||||||||||||||||
| Outflows | (4,165) | (4,110) | (3,806) | (3,901) | (5,260) | (16,532) | (17,077) | ||||||||||||||||||||||||||||||||||
| Net flows | (1,116) | (1,072) | (981) | (1,086) | (2,500) | (4,112) | (5,639) | ||||||||||||||||||||||||||||||||||
| Market performance | (541) | (1,250) | 3,211 | 1,335 | 82 | 4,949 | 3,378 | ||||||||||||||||||||||||||||||||||
| Other (2) | (370) | (143) | (185) | (178) | (547) | (826) | (1,053) | ||||||||||||||||||||||||||||||||||
| Ending balance | $ | 56,073 | $ | 53,608 | $ | 55,653 | $ | 55,724 | $ | 52,759 | $ | 56,073 | $ | 52,759 | |||||||||||||||||||||||||||
| Closed-End Funds | |||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 10,432 | $ | 10,225 | $ | 10,273 | $ | 10,481 | $ | 10,867 | $ | 10,026 | $ | 10,225 | |||||||||||||||||||||||||||
| Inflows | 1 | 5 | 4 | 3 | — | 1 | 12 | ||||||||||||||||||||||||||||||||||
| Outflows | — | (40) | (2) | (10) | (52) | (41) | (104) | ||||||||||||||||||||||||||||||||||
| Net flows | 1 | (35) | 2 | (7) | (52) | (40) | (92) | ||||||||||||||||||||||||||||||||||
| Market performance | (55) | 257 | 378 | 581 | 52 | 1,112 | 1,268 | ||||||||||||||||||||||||||||||||||
| Other (2) | (153) | (174) | (172) | (188) | (232) | (873) | (766) | ||||||||||||||||||||||||||||||||||
| Ending balance | $ | 10,225 | $ | 10,273 | $ | 10,481 | $ | 10,867 | $ | 10,635 | $ | 10,225 | $ | 10,635 | |||||||||||||||||||||||||||
| Retail Separate Accounts (3) | |||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 50,610 | $ | 49,536 | $ | 46,920 | $ | 47,445 | $ | 46,798 | $ | 43,202 | $ | 49,536 | |||||||||||||||||||||||||||
| Inflows | 1,816 | 1,742 | 1,468 | 1,449 | 1,205 | 8,621 | 5,864 | ||||||||||||||||||||||||||||||||||
| Outflows | (1,745) | (2,410) | (2,264) | (2,666) | (3,724) | (6,957) | (11,064) | ||||||||||||||||||||||||||||||||||
| Net flows | 71 | (668) | (796) | (1,217) | (2,519) | 1,664 | (5,200) | ||||||||||||||||||||||||||||||||||
| Market performance | (1,145) | (1,947) | 1,322 | 579 | (1,187) | 4,667 | (1,233) | ||||||||||||||||||||||||||||||||||
| Other (2) | — | (1) | (1) | (9) | (1) | 3 | (12) | ||||||||||||||||||||||||||||||||||
| Ending balance | $ | 49,536 | $ | 46,920 | $ | 47,445 | $ | 46,798 | $ | 43,091 | $ | 49,536 | $ | 43,091 | |||||||||||||||||||||||||||
| Institutional Accounts (4) | |||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 64,600 | $ | 59,167 | $ | 56,662 | $ | 57,131 | $ | 55,936 | $ | 62,969 | $ | 59,167 | |||||||||||||||||||||||||||
| Inflows | 1,574 | 1,455 | 1,283 | 2,006 | 1,381 | 5,715 | 6,125 | ||||||||||||||||||||||||||||||||||
| Outflows | (5,376) | (2,659) | (3,455) | (3,548) | (4,408) | (13,660) | (14,070) | ||||||||||||||||||||||||||||||||||
| Net flows | (3,802) | (1,204) | (2,172) | (1,542) | (3,027) | (7,945) | (7,945) | ||||||||||||||||||||||||||||||||||
| Market performance | (1,141) | (1,170) | 2,844 | 498 | 274 | 5,101 | 2,446 | ||||||||||||||||||||||||||||||||||
| Other (2) | (490) | (131) | (203) | (151) | (175) | (958) | (660) | ||||||||||||||||||||||||||||||||||
| Ending balance | $ | 59,167 | $ | 56,662 | $ | 57,131 | $ | 55,936 | $ | 53,008 | $ | 59,167 | $ | 53,008 | |||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 183,742 | $ | 175,001 | $ | 167,463 | $ | 170,710 | $ | 169,325 | $ | 172,259 | $ | 175,001 | |||||||||||||||||||||||||||
| Inflows | 6,440 | 6,240 | 5,580 | 6,273 | 5,346 | 26,757 | 23,439 | ||||||||||||||||||||||||||||||||||
| Outflows | (11,286) | (9,219) | (9,527) | (10,125) | (13,444) | (37,190) | (42,315) | ||||||||||||||||||||||||||||||||||
| Net flows | (4,846) | (2,979) | (3,947) | (3,852) | (8,098) | (10,433) | (18,876) | ||||||||||||||||||||||||||||||||||
| Market performance | (2,882) | (4,110) | 7,755 | 2,993 | (779) | 15,829 | 5,859 | ||||||||||||||||||||||||||||||||||
| Other (2) | (1,013) | (449) | (561) | (526) | (955) | (2,654) | (2,491) | ||||||||||||||||||||||||||||||||||
| Ending balance | $ | 175,001 | $ | 167,463 | $ | 170,710 | $ | 169,325 | $ | 159,493 | $ | 175,001 | $ | 159,493 | |||||||||||||||||||||||||||
(1) Represents assets under management of U.S. retail funds, global funds and exchange-traded funds
(2) Represents open-end and closed-end fund distributions net of reinvestments, the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products, and the use of leverage
(3) Includes investment models provided to managed account sponsors
(4) Represents assets under management of institutional separate and commingled accounts including structured products
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 10.
Non-GAAP Information and Reconciliations
(in thousands except per share data)
The non-GAAP financial measures included in this release differ from financial measures determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earnings generated from providing investment management and related services. Management uses these measures to evaluate the company’s financial performance and operational decision-making. Management believes that these non-GAAP financial measures, when presented together with directly comparable U.S. GAAP measures, are useful to investors and other interested parties to provide additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management. Please see the Notes to Reconciliations on page 13 for additional information on how these measures reflect the company’s operating results. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Also, the non-GAAP financial measures referenced in this release may not be comparable to the similarly titled measures used by other companies.
The following are reconciliations and related notes of the most directly comparable U.S. GAAP measure to each non-GAAP measure:
| Three Months Ended | |||||||||||||||||
| Revenues | 12/31/2025 | 12/31/2024 | 9/30/2025 | ||||||||||||||
| Total revenues, GAAP | $ | 208,023 | $ | 233,494 | $ | 216,385 | |||||||||||
| Consolidated investment products revenues (1) | 3,015 | 2,524 | 2,338 | ||||||||||||||
| Investment management fees (2) | (9,798) | (10,317) | (9,514) | ||||||||||||||
| Distribution and service fees (2) | (12,344) | (13,688) | (12,520) | ||||||||||||||
| Total revenues, as adjusted | $ | 188,896 | $ | 212,013 | $ | 196,689 | |||||||||||
| Operating Expenses | |||||||||||||||||
| Total operating expenses, GAAP | $ | 168,208 | $ | 182,773 | $ | 169,325 | |||||||||||
| Consolidated investment products expenses (1) | (3,506) | (2,923) | (496) | ||||||||||||||
| Distributions to minority interests (3) | (799) | — | (815) | ||||||||||||||
| Distribution and other asset-based expenses (4) | (22,142) | (24,005) | (22,034) | ||||||||||||||
| Amortization of intangible assets (5) | (12,944) | (12,883) | (12,945) | ||||||||||||||
| Restructuring expense (6) | — | — | (693) | ||||||||||||||
| Deferred compensation and related investments (7) | (167) | 65 | (328) | ||||||||||||||
| Acquisition and integration expenses (8) | (3,013) | (2,553) | (454) | ||||||||||||||
| Other (9) | 2,136 | (2,914) | 160 | ||||||||||||||
| Total operating expenses, as adjusted | $ | 127,773 | $ | 137,560 | $ | 131,720 | |||||||||||
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 11.
| Three Months Ended | |||||||||||||||||
| Operating Income (Loss) | 12/31/2025 | 12/31/2024 | 9/30/2025 | ||||||||||||||
| Operating income (loss), GAAP | $ | 39,815 | $ | 50,721 | $ | 47,060 | |||||||||||
| Consolidated investment products (earnings) losses (1) | 6,521 | 5,447 | 2,834 | ||||||||||||||
| Distributions to minority interests (3) | 799 | — | 815 | ||||||||||||||
| Amortization of intangible assets (5) | 12,944 | 12,883 | 12,945 | ||||||||||||||
| Restructuring expense (6) | — | — | 693 | ||||||||||||||
| Deferred compensation and related investments (7) | 167 | (65) | 328 | ||||||||||||||
| Acquisition and integration expenses (8) | 3,013 | 2,553 | 454 | ||||||||||||||
| Other (9) | (2,136) | 2,914 | (160) | ||||||||||||||
| Operating income (loss), as adjusted | $ | 61,123 | $ | 74,453 | $ | 64,969 | |||||||||||
| Operating margin, GAAP | 19.1 | % | 21.7 | % | 21.7 | % | |||||||||||
| Operating margin, as adjusted | 32.4 | % | 35.1 | % | 33.0 | % | |||||||||||
| Income (Loss) Before Taxes | |||||||||||||||||
| Income (loss) before taxes, GAAP | $ | 47,252 | $ | 58,507 | $ | 44,449 | |||||||||||
| Consolidated investment products (earnings) losses (1) | 245 | (235) | 4 | ||||||||||||||
| Distributions to minority interests (3) | 799 | — | 815 | ||||||||||||||
| Amortization of intangible assets (5) | 12,944 | 12,883 | 12,945 | ||||||||||||||
| Restructuring expense (6) | — | — | 693 | ||||||||||||||
| Deferred compensation and related investments (7) | 324 | 501 | 156 | ||||||||||||||
| Acquisition and integration expenses (8) | 3,013 | 2,553 | 454 | ||||||||||||||
| Other (9) | (2,136) | 2,914 | 348 | ||||||||||||||
| Seed capital and CLO investments (gains) losses (10) | (797) | (1,966) | 4,999 | ||||||||||||||
| Income (loss) before taxes, as adjusted | $ | 61,644 | $ | 75,157 | $ | 64,863 | |||||||||||
| Income Tax Expense (Benefit) | |||||||||||||||||
| Income tax expense (benefit), GAAP | $ | 13,400 | $ | 19,047 | $ | 13,108 | |||||||||||
| Tax impact of: | |||||||||||||||||
| Amortization of intangible assets (5) | 3,272 | 3,423 | 3,367 | ||||||||||||||
| Restructuring expense (6) | — | — | 180 | ||||||||||||||
| Deferred compensation and related investments (7) | 82 | 133 | 41 | ||||||||||||||
| Acquisition and integration expenses (8) | 762 | 678 | 118 | ||||||||||||||
| Other (9) | 1,971 | (124) | (11) | ||||||||||||||
| Seed capital and CLO investments (gains) losses (10) | (3,907) | (3,185) | 66 | ||||||||||||||
| Income tax expense (benefit), as adjusted | $ | 15,580 | $ | 19,972 | $ | 16,869 | |||||||||||
Effective tax rate, GAAPA | 28.4 | % | 32.6 | % | 29.5 | % | |||||||||||
Effective tax rate, as adjustedB | 25.3 | % | 26.6 | % | 26.0 | % | |||||||||||
A Reflects income tax expense (benefit), GAAP, divided by income (loss) before taxes, GAAP
B Reflects income tax expense (benefit), as adjusted, divided by income (loss) before taxes, as adjusted
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 12.
| Three Months Ended | |||||||||||||||||
| Net Income (Loss) Attributable to Virtus Investment Partners, Inc. | 12/31/2025 | 12/31/2024 | 9/30/2025 | ||||||||||||||
| Net income (loss) attributable to Virtus Investment Partners, Inc. | $ | 35,450 | $ | 33,294 | $ | 31,926 | |||||||||||
| Amortization of intangible assets, net of tax (5) | 9,655 | 9,433 | 9,554 | ||||||||||||||
| Restructuring expense, net of tax (6) | — | — | 513 | ||||||||||||||
| Deferred compensation and related investments (7) | 242 | 368 | 115 | ||||||||||||||
| Acquisition and integration expenses, net of tax (8) | 2,251 | 1,875 | 336 | ||||||||||||||
| Other, net of tax (9) | (6,163) | 7,330 | (1,436) | ||||||||||||||
| Seed capital and CLO investments (gains) losses, net of tax (10) | 3,110 | 1,219 | 4,933 | ||||||||||||||
| Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted | $ | 44,545 | $ | 53,519 | $ | 45,941 | |||||||||||
| Weighted average shares outstanding - diluted | 6,857 | 7,139 | 6,867 | ||||||||||||||
| Earnings (loss) per share - diluted, GAAP | $ | 5.17 | $ | 4.66 | $ | 4.65 | |||||||||||
| Earnings (loss) per share - diluted, as adjusted | $ | 6.50 | $ | 7.50 | $ | 6.69 | |||||||||||
| Administration and Shareholder Services Fees | |||||||||||||||||
| Administration and shareholder service fees, GAAP | $ | 18,351 | $ | 18,748 | $ | 18,869 | |||||||||||
| Consolidated investment products fees (1) | 28 | 3 | 22 | ||||||||||||||
| Administration and shareholder service fees, as adjusted | $ | 18,379 | $ | 18,751 | $ | 18,891 | |||||||||||
| Employment Expenses | |||||||||||||||||
| Employment expenses, GAAP | $ | 94,790 | $ | 106,202 | $ | 98,807 | |||||||||||
| Distributions to minority interests (3) | (799) | — | (815) | ||||||||||||||
| Deferred compensation and related investments (7) | (167) | 65 | (328) | ||||||||||||||
| Acquisition and integration expenses (8) | (116) | (861) | (454) | ||||||||||||||
| Other (9) | 2,136 | (1,141) | 1,474 | ||||||||||||||
| Employment expenses, as adjusted | $ | 95,844 | $ | 104,265 | $ | 98,684 | |||||||||||
| Other Operating Expenses | |||||||||||||||||
| Other operating expenses, GAAP | $ | 32,307 | $ | 32,738 | $ | 32,428 | |||||||||||
| Acquisition and integration expenses (8) | (2,097) | — | — | ||||||||||||||
| Other (9) | — | (1,773) | (1,314) | ||||||||||||||
| Other operating expenses, as adjusted | $ | 30,210 | $ | 30,965 | $ | 31,114 | |||||||||||
| Total Other Income (Expense), Net | |||||||||||||||||
| Total other income (expense), net GAAP | $ | 1,051 | $ | (91) | $ | (12,120) | |||||||||||
| Consolidated investment products (1) | 116 | 1,197 | 7,874 | ||||||||||||||
| Deferred compensation and related investments (7) | 419 | 812 | (148) | ||||||||||||||
| Seed capital and CLO investments (gains) losses (10) | (797) | (1,966) | 4,999 | ||||||||||||||
| Total other income (expense), net as adjusted | $ | 789 | $ | (48) | $ | 605 | |||||||||||
| Interest and Dividend Income | |||||||||||||||||
| Interest and dividend income, GAAP | $ | 5,033 | $ | 3,463 | $ | 2,200 | |||||||||||
| Consolidated investment products (1) | 1,990 | 2,568 | 1,904 | ||||||||||||||
| Deferred compensation and related investments (7) | (262) | (246) | (24) | ||||||||||||||
| Interest and dividend income, as adjusted | $ | 6,761 | $ | 5,785 | $ | 4,080 | |||||||||||
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 13.
| Three Months Ended | |||||||||||||||||
| Total Noncontrolling Interests | 12/31/2025 | 12/31/2024 | 9/30/2025 | ||||||||||||||
| Total noncontrolling interests, GAAP | $ | 1,598 | $ | (6,166) | $ | 585 | |||||||||||
| Consolidated investment products (1) | (245) | 235 | (4) | ||||||||||||||
| Distributions to minority interests (3) | (799) | — | (815) | ||||||||||||||
| Amortization of intangible assets (5) | (17) | (27) | (24) | ||||||||||||||
| Other (9) | (2,056) | 4,292 | (1,795) | ||||||||||||||
| Total noncontrolling interests, as adjusted | $ | (1,519) | $ | (1,666) | $ | (2,053) | |||||||||||
Notes to Reconciliations:
1.Consolidated investment products - Revenues and expenses generated by operating activities of mutual funds and collateralized loan obligations (CLOs) that are consolidated in the financial statements. Management believes that excluding these operating activities to reflect net revenues and expenses of the company prior to the consolidation of these products is consistent with the approach of reflecting its operating results from managing third-party client assets.
Revenue Related
2.Investment management/Distribution and service fees - Each of these revenue line items is reduced to exclude fees passed through to third-party retail client intermediaries who maintain the client relationship and are responsible for distributing company sponsored investment products and servicing the client. The amount of fees fluctuates each period, based on a predetermined percentage of the value of assets under management, and varies based on the type of investment product. The specific adjustments are as follows:
Investment management fees - Based on specific agreements, the portion of investment management fees passed through to third-party intermediaries for services to investors in sponsored investment products.
Distribution and service fees - Based on distinct arrangements, fees collected by the company then passed through to third-party client intermediaries for services to investors in sponsored investment products. The adjustment represents all of the company's distribution and service fees that are recorded as a separate line item on the condensed consolidated statements of operations.
Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries.
Expense Related
3.Distributions to minority interests - Earnings allocated and distributed to limited partners of a majority owned manager are recorded as employment expenses in the financial statements. Management believes reclassifying these earnings distributions to noncontrolling interests to reflect these payments as non-operating earnings distributions aids in comparing the company's operating results with other asset managers that do not have majority-owned managers.
4.Distribution and other asset-based expenses - Primarily payments to third-party client intermediaries for providing services to investors in sponsored investment products. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that do not utilize third-party client intermediaries.
5.Amortization of intangible assets - Non-cash amortization expense or impairment expense, if any, attributable to acquisition-related intangible assets, including any portion that is allocated to noncontrolling interests. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that have not engaged in acquisitions.
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 14.
6.Restructuring expense - Certain non-recurring expenses associated with restructuring the business, including lease abandonment-related expenses and severance costs associated with staff reductions that are not reflective of ongoing earnings generation of the business.
7.Deferred compensation and related investments - Compensation expense, gains and losses (realized and unrealized), and interest and dividend income related to deferred compensation and related balance sheet investments. Market performance of deferred compensation plans and related investments can vary significantly from period to period. Management believes that making this adjustment aids in comparing the Company's operating results with prior periods.
8.Acquisition and integration expenses - Expenses that are directly related to acquisition and integration activities. Acquisition expenses include certain transaction related employment expenses, closing costs, professional fees, and financing fees as well as any change in the fair value of contingent consideration. Integration expenses include costs incurred that are attributable to combining businesses, including compensation, restructuring and severance charges, professional fees, consulting fees, and other expenses. Management believes that making these adjustments aids in comparing the company’s operating results with other asset management firms that have not engaged in acquisitions.
Components of Acquisition and Integration Expenses for the respective periods are shown below:
| Three Months Ended | |||||||||||||||||
| Acquisition and Integration Expenses | 12/31/2025 | 12/31/2024 | 9/30/2025 | ||||||||||||||
| Employment expenses | $ | 116 | $ | 861 | $ | 454 | |||||||||||
| Other operating expenses | 2,097 | — | — | ||||||||||||||
| Change in fair value of contingent consideration | 800 | 1,692 | — | ||||||||||||||
| Total Acquisition and Integration Expenses | $ | 3,013 | $ | 2,553 | $ | 454 | |||||||||||
9.Other - Certain expenses that are not reflective of the ongoing earnings generation of the business. Employment expenses and noncontrolling interests are adjusted to exclude fair value measurements of investment manager minority interests. Other operating expenses are adjusted for non-capitalized debt issuance costs, amortization of lease termination fees and transition related expense (benefit). Interest expense is adjusted to remove gains on early extinguishment of debt and the write-off of previously capitalized costs in connection with a debt modification. Income tax expense (benefit) items are adjusted for uncertain tax positions, changes in tax law, valuation allowances, and other unusual or infrequent items not related to current operating results to reflect a normalized effective rate. Management believes that making these adjustments aids in comparing the company’s operating results with prior periods.
Components of Other for the respective periods are shown below:
| Three Months Ended | |||||||||||||||||
| Other | 12/31/2025 | 12/31/2024 | 9/30/2025 | ||||||||||||||
| Employment expense fair value adjustments | $ | (2,136) | $ | 1,141 | $ | (1,474) | |||||||||||
| Non-capitalized debt issuance costs | — | — | 1,314 | ||||||||||||||
| Amortization of lease termination fees | — | 1,773 | — | ||||||||||||||
| (Gain) / loss of modification of debt | — | — | 508 | ||||||||||||||
| Tax impact of adjustments | 540 | (774) | 42 | ||||||||||||||
| Other discrete tax adjustments | (2,511) | 898 | (31) | ||||||||||||||
| Manager minority interest fair value adjustments | (2,056) | 4,292 | (1,795) | ||||||||||||||
| Total Other | $ | (6,163) | $ | 7,330 | $ | (1,436) | |||||||||||
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 15.
Seed Capital and CLO Related
10.Seed capital and CLO investments (gains) losses - Gains and losses (realized and unrealized) of seed capital and CLO investments. Gains and losses (realized and unrealized) generated by seed capital and CLO investments can vary significantly from period to period and do not reflect the company’s operating results from providing investment management and related services. Management believes that making this adjustment aids in comparing the company’s operating results with prior periods and with other asset management firms that do not have meaningful seed capital and CLO investments.
Definitions:
Revenues, as adjusted, comprise the fee revenues paid by clients for investment management and related services. Revenues, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP, namely in excluding the impact of operating activities of consolidated investment products and reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing the product and servicing the client.
Operating expenses, as adjusted, is calculated to reflect expenses from ongoing continuing operations. Operating expenses, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP expenses in that they exclude amortization or impairment, if any, of intangible assets, restructuring and severance, the effect of consolidated investment products, acquisition and integration-related expenses and certain other expenses that do not reflect the ongoing earnings generation of the business.
Operating margin, as adjusted, is a metric used to evaluate efficiency represented by operating income, as adjusted, divided by revenues, as adjusted.
Earnings (loss) per share, as adjusted, represent net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted, divided by weighted average shares outstanding, as adjusted, on either a basic or diluted basis.
Forward-Looking Information
This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “intent,” “plan,” “intend,” “believe,” “anticipate,” “may,” “will,” “should,” “could,” “continue,” “project,” “opportunity,” “predict,” “would,” “potential,” “future,” “forecast,” “guarantee,” “assume,” “likely,” “target” or similar statements or variations of such terms.
Our forward-looking statements are based on a series of expectations, assumptions and projections about the company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans, and ability to borrow, for all future periods. All of our forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially.
Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report on Form 10-K, as supplemented by our periodic filings with the Securities and Exchange Commission (the "SEC"), as well as the following risks and uncertainties resulting from: (i) reduction in our assets under management; (ii) financial or business risks from strategic
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
Virtus Investment Partners, Inc. 16.
transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) lack of sufficient capital on satisfactory terms; (vii) inability to attract and retain key personnel; (viii) challenges from competition; (ix) adverse developments related to unaffiliated subadvisers; (x) negative changes in key distribution relationships; (xi) interruptions, breaches, or failures of technology systems; (xii) loss on our investments; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or unanticipated tax obligations; (xvii) impediments from certain corporate governance provisions; (xviii) losses or costs not covered by insurance; (xix) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2024 Annual Report on Form 10-K, and our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity.
Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the company’s periodic reports filed with the SEC and are available on our website at virtus.com under “Investor Relations.” You are urged to carefully consider all such factors.
The company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or affect any of the forward-looking statements contained in or accompanying this release, such statements or disclosures will be deemed to modify or supersede such statements in this release.
Virtus Investment Partners, Inc. | One Financial Plaza | Hartford, CT 06103 | virtus.com
FAQ
How did Virtus Investment Partners (VRTS) perform financially in Q4 2025?
Virtus posted Q4 2025 revenue of $208.0 million, down 11% year over year, and GAAP diluted EPS of $5.17, up from $4.66. Adjusted diluted EPS was $6.50, compared with $7.50 a year earlier, reflecting lower average assets under management.
What were Virtus Investment Partners’ assets under management at December 31, 2025?
Virtus reported $159.5 billion in assets under management at December 31, 2025, down from $169.3 billion at September 30, 2025 and $175.0 billion a year earlier. The decline was driven by market performance and net outflows in U.S. retail funds, institutional accounts, and retail separate accounts.
What drove asset flows for Virtus Investment Partners (VRTS) in Q4 2025?
Total sales were $5.3 billion, while net flows were ($8.1) billion. Outflows were led by quality-oriented equity strategies, including large-cap growth, small-cap, and small/mid-cap mandates. Open-end funds saw $0.6 billion of positive ETF net flows but still recorded overall equity outflows.
How did Virtus’ non-GAAP results compare to GAAP in Q4 2025?
On a non-GAAP basis, revenues, as adjusted, were $188.9 million and operating income, as adjusted, was $61.1 million with a 32.4% margin. Diluted EPS, as adjusted, was $6.50, down from $7.50 a year earlier, versus GAAP diluted EPS of $5.17.
What is the balance sheet position of Virtus Investment Partners at year-end 2025?
At December 31, 2025, Virtus held $386.5 million in cash and cash equivalents and reported gross debt of $399.0 million. Working capital was $254.0 million, and net debt was $12.5 million, described as 0.0x EBITDA, indicating low leverage.
Did Virtus Investment Partners return capital to shareholders in Q4 2025?
Yes. Virtus repurchased 60,292 shares for $10.0 million during Q4 2025 and declared cash dividends of $2.40 per common share for the quarter. These actions reflect ongoing capital return alongside maintaining substantial cash balances.
When is Virtus Investment Partners’ conference call discussing these results?
Management scheduled an investor conference call and webcast for February 6, 2026 at 10 a.m. Eastern to discuss the Q4 2025 financial results. An accompanying presentation and replay are available in the Investor Relations section of virtus.com.
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Feb 11, 2026
[144] VIRTUS INVESTMENT PARTNERS, INC. SEC Filing
Dec 11, 2025
[144] VIRTUS INVESTMENT PARTNERS, INC. SEC Filing