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Brian Casey, Westwood’s CEO, commented, "The third quarter demonstrated the strength of our diversified platform in multiple ways. Our private fund strategies have already surpassed our annual fundraising goal. Our MDST exchange-traded fund ("ETF") reached $150 million in assets and captured 30% of monthly midstream ETF flows in September, while our partnership with WEBs expanded, adding eleven new Defined Volatility sector ETFs that provide a disciplined approach to potentially boost returns in sector investing. Our long-term performance rankings remain solid, with Income Opportunity maintaining its top decile since-inception ranking and it recently received a four-star Morningstar rating upgrade. As market leadership broadens out and investors seek quality and value, we believe Westwood is well-positioned to capitalize on these opportunities."

Third quarter revenues exceeded the second quarter due to higher average AUM. Third quarter net income of $3.7 million beat the second quarter's net income of $1.0 million on higher revenues and unrealized appreciation on private investments, partially offset by higher income taxes. Diluted earnings per share ("EPS") of $0.41 compared to $0.12 for the second quarter. Non-GAAP Economic Earnings of $5.7 million, or $0.64 per share, compared with $2.8 million, or $0.32 per share, in the second quarter.

2025's higher revenues and unrealized appreciation on private investments and changes in the fair value of contingent consideration in 2024, all partially offset by higher income taxes in 2025. Diluted EPS of $0.41 compared with $0.01 for 2024's third quarter. Non-GAAP Economic Earnings were $5.7 million, or $0.64 per share, compared with $1.1 million, or $0.13 per share, in the third quarter of 2024.

Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood’s client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors’ short and long-term needs.

Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values - integrity, reliability, responsiveness, adaptability, teamwork and driving results - and underpin our constant pursuit of excellence.

Statements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as “anticipate,” “believe,” “expect,” “could,” and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation: the composition and market value of our AUM and AUA; our ability to maintain our fee structure in light of competitive fee pressures; risks associated with actions of activist stockholders; distributions to our common stockholders have included and may in the future include a return of capital; inclusion of foreign company investments in our AUM; regulations adversely affecting the financial services industry; our ability to maintain effective cyber security; litigation risks; our ability to develop and market new investment strategies successfully; our reputation and our relationships with current and potential

customers; our ability to attract and retain qualified personnel; our ability to perform operational tasks; our ability to select and oversee third-party vendors; our dependence on the operations and funds of our subsidiaries; our ability to maintain effective information systems; our ability to prevent misuse of assets and information in the possession of our employees and third-party vendors, which could damage our reputation and result in costly litigation and liability for our clients and us; our stock is thinly traded and may be subject to volatility; competition in the investment management industry; our ability to avoid termination of client agreements and the related investment redemptions; the significant concentration of our revenues in a small number of customers; we have made and may continue to make business combinations as a part of our business strategy, which may present certain risks and uncertainties; our relationships with investment consulting firms; our ability to identify and execute on our strategic initiatives; our ability to declare and pay dividends; our ability to fund future capital requirements on favorable terms; our ability to properly address conflicts of interest; our ability to maintain adequate insurance coverage; our ability to maintain an effective system of internal controls; and the other risks detailed from time to time in Westwood’s SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2024 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, Westwood is not obligated to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.


	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
REVENUES:
Advisory fees:
Asset-based	$	18,887	$	17,955	$	17,774

Trust fees	5,416		5,069		5,447

Other, net	(14)		96		498
Total revenues	24,289		23,120		23,719
EXPENSES:
Employee compensation and benefits	13,286		13,472		13,572
Sales and marketing	633		657		644
Westwood funds	1,101		957		798
Information technology	2,893		2,704		2,572
Professional services	1,593		1,486		1,812
General and administrative	2,774		2,976		2,991

Loss from change in fair value of contingent consideration	—		—		1,824

Total expenses	22,280		22,252		24,213
Net operating income (loss)	2,009		868		(494)

Net change in unrealized appreciation (depreciation) on private investments	1,932		—		—
Net investment income	459		343		587
Other income	292		257		374

Income before income taxes	4,692		1,468		467
Income tax provision	963		437		308
Net income	$	3,729	$	1,031	$	159




Less: income attributable to noncontrolling interest	30		12		54
Income attributable to Westwood Holdings Group, Inc.	$	3,699	$	1,019	$	105
Earnings per Westwood Holdings Group, Inc. share:
Basic	$	0.44	$	0.12	$	0.01
Diluted	$	0.41	$	0.12	$	0.01
Weighted average shares outstanding:
Basic	8,418,174		8,404,859		8,123,714
Diluted	8,941,347		8,813,606		8,488,372
Economic Earnings	$	5,714	$	2,792	$	1,084
Economic EPS	$	0.64	$	0.32	$	0.13
Dividends declared per share	$	0.15	$	0.15	$	0.15


	Nine Months Ended
	September 30, 2025		September 30, 2024
REVENUES:
Advisory fees:
Asset-based	$	54,573	$	51,730

Trust fees	15,914		15,787

Other, net	174		1,622
Total revenues	70,661		69,139
EXPENSES:
Employee compensation and benefits	41,259		41,921
Sales and marketing	2,050		2,027
Westwood funds	2,955		2,374
Information technology	8,264		7,212
Professional services	4,692		4,751
General and administrative	8,632		8,903

Loss from change in fair value of contingent consideration	—		3,682

Total expenses	67,852		70,870
Net operating income (loss)	2,809		(1,731)

Net change in unrealized appreciation (depreciation) on private investments	1,932		—
Net investment income	1,185		1,590
Other income	826		783

Income before income taxes	6,752		642
Income tax provision	1,515		530
Net income	$	5,237	$	112




Less: income (loss) attributable to noncontrolling interest	41		(46)
Income attributable to Westwood Holdings Group, Inc.	$	5,196	$	158
Earnings per share:
Basic	$	0.62	$	0.02
Diluted	$	0.59	$	0.02
Weighted average shares outstanding:
Basic	8,359,584		8,140,664
Diluted	8,846,168		8,448,629
Economic Earnings	$	11,020	$	3,588
Economic EPS	$	1.25	$	0.42
Dividends declared per share	$	0.45	$	0.45

(unaudited)


	September 30, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	21,604	$	18,847
Accounts receivable	14,570		14,453
Investments, at fair value (amortized cost of $18,354 and $26,788)	19,729		27,694
Investments under measurement alternative	14,697		10,747
Equity method investments	4,263		4,250
Income taxes receivable	—		295
Other assets	7,647		6,780
Goodwill	39,501		39,501
Deferred income taxes	2,556		2,244
Operating lease right-of-use assets	9,841		2,559
Intangible assets, net	18,981		21,668
Property and equipment, net of accumulated depreciation of $8,821 and $8,424	657		951
Total assets	$	154,046	$	149,989
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	5,436	$	6,413
Dividends payable	2,579		2,466
Compensation and benefits payable	8,808		10,924
Operating lease liabilities	10,323		3,197

Income taxes payable	921		—
Contingent consideration	—		4,657
Total liabilities	28,067		27,657

Stockholders’ Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,391,817 and 12,137,080, respectively and outstanding 9,408,125 and 9,234,575, respectively	124		122
Additional paid-in capital	204,897		202,239
Treasury stock, at cost – 2,983,692 and 2,902,505 shares, respectively	(89,612)		(88,277)

Retained earnings	8,489		6,207
Total Westwood Holdings Group, Inc. stockholders’ equity	123,898		120,291
Noncontrolling interest in consolidated subsidiary	2,081		2,041
Total equity	125,979		122,332
Total liabilities and stockholders’ equity	$	154,046	$	149,989


	Nine Months Ended September 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	5,237	$	112
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	376		464
Amortization of intangible assets	3,143		3,085
Net change in unrealized (appreciation) depreciation on investments	(1,840)		(917)

Stock-based compensation expense	3,925		4,321
Deferred income taxes	(312)		(864)
Non-cash lease expense	851		831



Fair value change of contingent consideration	—		3,682

Changes in operating assets and liabilities:
Accounts receivable	(117)		(202)
Other assets	(867)		(644)
Accounts payable and accrued liabilities	(1,006)		(1,192)
Compensation and benefits payable	(2,115)		(1,254)
Income taxes receivable and payable	1,216		(434)
Other liabilities	(949)		(1,041)
Net sales of trading securities	7,842		6,267
Contingent consideration	(4,442)		—
Net cash provided by operating activities	10,942		12,214
CASH FLOWS FROM INVESTING ACTIVITIES:



Purchases of property and equipment	(82)		(34)
Purchases of investments	(2,000)		(1,500)
Additions to internally developed software	(449)		—


Net cash used in investing activities	(2,531)		(1,534)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	—		(1,348)

Restricted stock returned for payment of taxes	(1,335)		(940)

Payment of contingent consideration in acquisition	(201)		(1,815)
Cash dividends	(4,118)		(4,209)
Net cash used in financing activities	(5,654)		(8,312)

NET CHANGE IN CASH AND CASH EQUIVALENTS	2,757		2,368
Cash and cash equivalents, beginning of period	18,847		20,422
Cash and cash equivalents, end of period	$	21,604	$	22,790
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	$	609	$	1,817
Accrued dividends	$	2,579	$	2,336


Operating lease assets obtained in exchange for operating lease liabilities	$	8,133	$	—

As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic earnings and Economic earnings per share. We provide these measures in addition to, not as a substitute for, income attributable to Westwood Holdings Group, Inc. and earnings per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic earnings and Economic earnings per share to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP income attributable to Westwood Holdings Group, Inc. or earnings per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP.

We define Economic earnings as income attributable to Westwood Holdings Group, Inc. plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic earnings because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. Although gains and losses from changes in the fair value of contingent consideration are non-cash, we do not add or subtract those back when calculating Economic earnings because gains and losses on changes in the fair value of contingent consideration are considered regular following an acquisition. In addition, we do not adjust Economic earnings for tax deductions related to restricted stock expense or amortization of intangible assets. Economic earnings per share represents Economic earnings divided by diluted weighted average shares outstanding.


	Three Months Ended
	September 30, 2025		June 30, 2025		September 30, 2024
Income attributable to Westwood Holdings Group, Inc.	$	3,699	$	1,019	$	105
Stock-based compensation expense	1,303		1,295		1,409

Intangible amortization	1,061		1,037		1,011

Tax benefit from goodwill amortization	136		136		156
Tax impact of adjustments to GAAP income	(485)		(695)		(1,597)
Economic earnings	$	5,714	$	2,792	$	1,084
Earnings per share	$	0.41	$	0.12	$	0.01
Stock-based compensation expense	0.15		0.15		0.17

Intangible amortization	0.11		0.11		0.12

Tax benefit from goodwill amortization	0.02		0.02		0.02
Tax impact of adjustments to GAAP income	(0.05)		(0.08)		(0.19)
Economic earnings per share	$	0.64	$	0.32	$	0.13
Diluted weighted average shares	8,941,347		8,813,606		8,488,372

			Nine Months Ended
			September 30, 2025		September 30, 2024
Income attributable to Westwood Holdings Group, Inc.			$	5,196	$	158
Stock-based compensation expense			3,925		4,321

Intangible amortization			3,143		3,085

Tax benefit from goodwill amortization			396		437
Tax impact of adjustments to GAAP income			(1,640)		(4,413)
Economic earnings			$	11,020	$	3,588
Earnings per share			$	0.59	$	0.02
Stock-based compensation expense			0.44		0.50

Intangible amortization			0.37		0.37

Tax benefit from goodwill amortization			0.04		0.05
Tax impact of adjustments to GAAP income			(0.19)		(0.52)
Economic earnings per share			$	1.25	$	0.42
Diluted weighted average shares			8,846,168		8,448,629