Westwood Holdings Group, Inc.

What they do

Westwood manages investment assets through its registered investment adviser subsidiaries—Westwood Management Corp., Westwood Advisors, Salient Advisors, and Broadmark Asset Management—and provides trust, custodial, and investment management services through Westwood Trust. The firm offers a range of actively managed strategies, including value equity, multi-asset, alternative income, and energy infrastructure products, delivered via mutual funds, ETFs, separately managed accounts, and private funds. As of June 30, 2026, Westwood reported approximately $17.0 billion in AUM and $1.0 billion in AUA.

Revenue drivers

• Asset management fees — Core revenue is derived from fees based on a percentage of assets under management (AUM), which totaled approximately $17.0 billion at June 30, 2026.
• Trust and custodial services — Westwood Trust provides trust, custodial, and investment management services to institutions and high net worth individuals, generating fees from assets under advisement (AUA) and related services.
• Private capital and alternative strategies — The Private Capital platform surpassed $500 million in assets, with growth cited from private energy secondaries funds.
• ETFs and managed investment solutions — The ETF platform surpassed $400 million in assets, and Managed Investment Solutions flows reached $350 million, contributing to revenue growth.

Recent performance

In Q2 2026, Westwood reported quarterly revenues of $25.3 million, up from $25.0 million in Q1 2026 and $23.1 million in Q2 2025. Net income for Q2 2026 was $1.5 million ($0.17 diluted EPS), compared to $0.8 million in Q1 2026 and $1.0 million in Q2 2025. Non-GAAP Economic Earnings were $3.0 million or $0.33 per share, versus $2.8 million in both Q1 2026 and Q2 2025. For fiscal year 2025, annual revenue was $97.8 million with net income of $7.1 million, reflecting continued growth from the prior year.

Strategy

Management emphasizes product innovation and expansion into private capital and ETF offerings, citing the upcoming listing of the PWRX ETF on the Texas Stock Exchange. The firm continues to build its Managed Investment Solutions pipeline and grow its Private Capital platform. Westwood also focuses on strong client service and investment performance, noting several strategies beat benchmarks and achieved top quartile rankings. Additionally, the company evaluates strategic investments and acquisitions to support growth, while maintaining a balance sheet with $126.3 million in stockholders' equity.

Risks

• Market and AUM dependence — Revenue is tied to the market value and composition of AUM/AUA; market downturns or withdrawal of assets could reduce fees.
• Competitive fee pressure — The asset management industry faces competitive fee pressure, which could erode margins if Westwood must lower its fee structure.
• Client concentration — A significant concentration of revenues in a small number of customers means loss of a key client could materially impact results.
• Investment underperformance — Poor relative performance against benchmarks or peers could lead to client redemptions and reduced revenues.

Outlook

Management expressed confidence in momentum from ETF and Private Capital growth, and expects continued strength across Multi-Asset and Wealth Team strategies. They anticipate expanding the Managed Investment Solutions pipeline and are preparing for the PWRX ETF listing on the Texas Stock Exchange. The company remains focused on delivering long-term value to clients and shareholders.