Virtus Investment | 10-Q: FY2026 Q1 Revenue: USD 199.54 M

Revenue: As of FY2026 Q1, the actual value is USD 199.54 M.

EPS: As of FY2026 Q1, the actual value is USD 1.05.

EBIT: As of FY2026 Q1, the actual value is USD 4.717 M.

Segmented Revenue

• Total Revenues: Decreased by $18.4 million, or 8.4%, to $199.5 million in the first quarter of 2026, compared to $217.9 million in the first quarter of 2025.
• Investment Management Fees: Decreased by $17.0 million, or 9.1%, to $169.1 million for the three months ended March 31, 2026, compared to $186.1 million in the prior year, primarily due to decreased average AUM, partially offset by the Keystone acquisition.
  • Open-end funds: Fees decreased by $10.3 million, or 13.9%, to $63.7 million.
  • Closed-end funds: Fees increased by $5.9 million, or 40.0%, to $20.8 million.
  • Retail separate accounts: Fees decreased by $7.0 million, or 12.8%, to $47.3 million.
  • Institutional accounts: Fees decreased by $5.6 million, or 13.1%, to $37.3 million.
• Administration and Shareholder Service Fees: Decreased by $0.7 million, or 3.9%, to $17.3 million for the three months ended March 31, 2026, compared to $18.0 million in the prior year.
• Distribution and Service Fees: Decreased by $1.1 million, or 8.8%, to $11.6 million for the three months ended March 31, 2026, compared to $12.8 million in the prior year.
• Other Income and Fees: Increased by $0.4 million, or 34.9%, to $1.5 million for the three months ended March 31, 2026, compared to $1.1 million in the prior year.

Operational Metrics

• Operating Income: Decreased by $21.1 million, or 57.8%, to $15.4 million in the first quarter of 2026, compared to $36.6 million in the first quarter of 2025.
• Total Operating Expenses: Increased by $2.8 million, or 1.5%, to $184.1 million for the three months ended March 31, 2026, compared to $181.3 million in the prior year.
  • Employment Expenses: Decreased by $3.9 million, or 3.6%, to $105.2 million.
  • Distribution and Other Asset-Based Expenses: Decreased by $2.4 million, or 10.3%, to $20.5 million.
  • Other Operating Expenses: Increased by $3.1 million, or 9.5%, to $36.2 million.
  • Other Operating Expenses of Consolidated Investment Products (CIP): Increased by $1.0 million, or 101.5%, to $2.0 million.
  • Change in Fair Value of Contingent Consideration: Increased to $0.4 million from $0 in the prior year.
  • Restructuring Expense: Incurred $2.9 million in restructuring expense related to severance costs.
  • Depreciation Expense: Decreased by $0.7 million, or 28.9%, to $1.7 million.
  • Amortization Expense: Increased by $2.2 million, or 17.2%, to $15.2 million.
• Other Income (Expense), net: Totaled - $12.9 million for the three months ended March 31, 2026, compared to - $7.6 million in the prior year.
  • Realized and unrealized gain (loss) on investments, net: Changed by $1.8 million to $0.8 million.
  • Realized and unrealized gain (loss) of CIP, net: Changed by - $6.7 million to - $14.3 million.
• Interest Income (Expense), net: Totaled $10.7 million for the three months ended March 31, 2026, compared to $11.4 million in the prior year.
  • Interest expense: Increased by $2.2 million, or 48.3%, to - $6.8 million.
  • Interest and dividend income of investments of CIP: Increased by $1.1 million, or 2.3%, to $48.6 million.
  • Interest expense of CIP: Increased by $0.5 million, or 1.4%, to - $34.1 million.

Unique Metrics

• Total Assets Under Management (AUM): $149.0 billion at March 31, 2026, representing an 11.0% decrease from $167.5 billion at March 31, 2025, and a 6.6% decrease from $159.5 billion at December 31, 2025.
  • The decrease from March 31, 2025, included $24.3 billion from net outflows, partially offset by $6.1 billion from positive market performance and $2.3 billion from the Keystone acquisition.
  • The decrease from December 31, 2025, included $8.4 billion from net outflows and - $3.9 billion from negative market performance, partially offset by $2.3 billion from the Keystone acquisition.
• Total Sales: Were $5.8 billion in Q1 2026, a decrease of $0.5 billion (7.4%) from $6.2 billion in Q1 2025.
• Net Flows: Were - $8.4 billion in Q1 2026, compared to - $3.0 billion in Q1 2025.
  • Open-End Funds: Net outflows were - $1,346 million in Q1 2026, compared to - $1,072 million in Q1 2025.
  • Closed-End Funds: Net outflows were - $58 million in Q1 2026, compared to - $35 million in Q1 2025.
  • Retail Separate Accounts: Net outflows were - $3,868 million in Q1 2026, compared to - $668 million in Q1 2025.
  • Institutional Accounts: Net outflows were - $3,154 million in Q1 2026, compared to - $1,204 million in Q1 2025.
• Average Fee Rate Earned (All Products): Increased to 41.9 basis points in Q1 2026 from 41.7 basis points in Q1 2025.

Cash Flow

• Net Cash Provided by Operating Activities: $35.9 million for the three months ended March 31, 2026, a change of $39.7 million from net cash used in operating activities of - $3.8 million in the prior year.
• Net Cash Used in Investing Activities: Increased by $195.5 million to - $198.5 million for the three months ended March 31, 2026, compared to - $3.0 million in the prior year, primarily due to the Keystone acquisition.
• Net Cash Used in Financing Activities: Decreased by $133.6 million to - $40.9 million for the three months ended March 31, 2026, compared to - $174.5 million in the prior year.

Future Outlook and Strategy

Virtus Investment Partners, Inc. maintains a multi-manager, multi-style approach and a diverse product array to appeal to a broad investor base and navigate various market cycles and investor preferences. The company strategically expanded into private markets with the recent acquisition of Keystone National Group, LLC, specializing in asset-centric private credit. Virtus Investment Partners, Inc. manages capital through investments in organic growth, debt principal payments, common stock dividends, share repurchases, and technology and inorganic growth opportunities.