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Sep 30, 2025
Virtus Q3 2025 Earnings Report
Virtus reported lower revenue and net income for Q3 2025, but improved sequentially due to higher average assets under management.
Key Takeaways
Virtus Investment Partners posted a GAAP EPS of $4.65 and adjusted EPS of $6.69 in Q3 2025. Revenue rose slightly quarter-over-quarter, while net income declined year-over-year. AUM stood at $169.3B, with continued net outflows driven by equity strategies.
Revenue for Q3 2025 was $216.4M, up 3% from Q2 but down 5% YoY.
Net income was $31.9M, down 22% YoY, due to realized/unrealized losses on investments.
Adjusted EPS rose to $6.69 from $6.25 in Q2, reflecting stronger investment management fees.
AUM ended at $169.3B with net outflows of $3.9B, particularly from institutional and retail accounts.
Revenue by Segment
Forward Guidance
Virtus anticipates continued operational stability supported by improved investment flows in ETFs and fixed income, although net outflows remain a headwind.
Positive Outlook
- Sequential growth in adjusted operating income and EPS.
- ETF sales reached a quarterly record of $0.9B.
- Cash and equivalents more than doubled from prior quarter.
- Adjusted operating margin improved to 33.0%.
- Institutional sales grew to $2.0B, including new CLO issuance.
Challenges Ahead
- Net flows remained negative at ($3.9B).
- Equity strategies saw continued outflows.
- GAAP net income declined 22% YoY.
- Investment management fees dropped YoY.
- Effective tax rate increased from 22% to 29%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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