Total Revenue

Down about 29% (from $3.010 million in Q1 2024 to $2.129 million in Q1 2025) " "

The significant drop in revenue is primarily due to weaker performance from key revenue sources—particularly from merger arbitrage activities—resulting in lower overall funding despite Investment Advisory and Incentive Fees remaining the primary revenue driver. " "

Investment Advisory and Incentive Fees

Remained steady at $2.004 million in Q1 2025 "

Although these fees continued to drive revenue, the overall revenue decline suggests that other revenue streams, such as those from merger arbitrage, underperformed this period compared to prior quarters. "

Net Income Attributable to Shareholders

Down about 44% (from $13,821 thousand in Q1 2024 to $7,669 thousand in Q1 2025) " "

The nearly 44% decline in net income stems from a combination of reduced revenue—specifically lower investment and non-operating income—and increased pressures such as a higher effective tax rate, which led to significant pressure on profitability compared to the previous period. " "

Operating Loss

Slightly widened from ($4,970) thousand in Q1 2024 to ($5,288) thousand in Q1 2025 " "

The modest increase in operating loss reflects the inability of rising expenses (including increased compensation costs) to be offset by the slim revenue gains, further compounded by the overall decline in the revenue base from prior periods. " "

Net Cash Provided by Operating Activities

Turned more negative: from ($1,105) thousand in Q1 2024 to ($8,141) thousand in Q1 2025 " "

This deterioration in operating cash flow is primarily due to lower net income and reduced noncash adjustments—such as diminished unrealized gains on securities—and increased cash outflows in areas like compensation and working capital changes, compared to previous periods that had benefited from larger securities-related inflows. " "

Total Assets

Declined about 2.2% (from $954,182 thousand in Q1 2024 to $933,257 thousand in Q1 2025) " "

The decrease in total assets can be attributed to lower cash and cash equivalents, slight reductions in investment balances, and decreasing receivables, reflecting normal operational fluctuations when compared to the higher asset levels of the previous period. " "

Total Equity

Fell roughly 2% (from $916,850 thousand in Q1 2024 to $898,958 thousand in Q1 2025) " "

The modest drop in equity is linked to the overall decline in profitability and cash flow, which impacts retained earnings, combined with adjustments on the balance sheet that mirror the lower asset base from the previous period. " "

Earnings Per Share (EPS)

Fell by about 44% (from $0.64 in Q1 2024 to $0.36 in Q1 2025) " "

The substantial EPS decline is a direct consequence of the reduced net income and overall operating performance, reflecting the same percentage drop in profitability as seen in the net income figures when compared to the prior period. " "