Executive Summary

Q2 2022 revenue was $65.6M, down 13.3% year over year and down 5.8% sequentially, while diluted EPS was $0.66, up from $0.64 in Q2 2021 and flat sequentially; operating income rose to $28.3M as CEO compensation waiver boosted results by $7.9M .
Assets under management fell to $28.7B from $33.4B in Q1 and $34.98B in Q4, driven by market depreciation and net outflows; equity AUM declined by $4.6B quarter-over-quarter, with total AUM down $4.7B QoQ .
Non-operating losses (mark-to-market) of $4.0M were a negative swing vs. $3.1M gain in Q2 2021; effective tax rate decreased to 26.5% from 37.4% YoY, reflecting less non-deductible compensation .
Capital return continued: Q2 dividend of $0.04/share and 183,597 shares repurchased for $3.8M at $20.63 average; board declared another $0.04 dividend payable Sept 27, 2022 .
Street consensus from S&P Global was unavailable for this ticker; the company pre-announced Q2 diluted EPS of $0.62–$0.67 and delivered $0.66, in-line with the range .

What Went Well and What Went Wrong

What Went Well

Operating margin expanded significantly to an estimated 43.1% (operating income/revenue) as compensation and management fee waivers reduced expenses; “Waiver of CEO compensation bolstered operating income by $7.9 million” .
Fund initiatives progressed: launched Gabelli Financial Services Opportunity ETF (GABF) on May 10; multiple rights offerings completed across closed-end funds, supporting product breadth and capital base .
Shareholder return remained consistent: repurchased 183,597 shares for $3.8M and declared a regular quarterly dividend of $0.04/share .

What Went Wrong

Revenue contracted 13.3% YoY due to lower investment advisory fees (fund revenues down $8.0M YoY) and weaker distribution fees, reflecting AUM declines from market depreciation and client outflows .
Non-operating results deteriorated: mark-to-market loss of $4.0M versus $3.1M gain last year; interest expense increased modestly to $0.8M .
AUM dropped sharply to $28.7B (from $33.4B in Q1), with total outflows of $1.9B and market depreciation of $4.2B weighing on fee-earning base .

Financial Results

Metric	Q4 2021	Q1 2022	Q2 2022
Revenue ($USD Millions)	$81.7	$69.6	$65.6
Operating Income (EBIT) ($USD Millions)	$29.4	$26.0	$28.3
Net Income ($USD Millions)	$11.0	$17.5	$17.3
Diluted EPS ($USD)	$0.41	$0.66	$0.66
EBIT Margin % (EBIT/Revenue)	36.0%	37.3%	43.1%
Net Income Margin % (NI/Revenue)	13.5%	25.1%	26.4%

YoY/ QoQ	Q2 2022 vs Q2 2021	Q2 2022 vs Q1 2022
Revenue Growth %	-13.3%	-5.8%
Diluted EPS Growth %	+3.1%	0.0%
Operating Income Growth %	+13.7%	+8.9%

Revenue Breakdown ($USD Millions)	Q2 2021	Q2 2022
Investment Advisory & Incentive Fees	$68.9	$60.2
• Fund Revenues	$48.4	$40.4
• Institutional & PWM	$18.6	$17.5
• SICAV	$1.9	$2.3
Distribution Fees & Other Income	$6.7	$5.4
Total Revenues	$75.6	$65.6

KPIs	Q4 2021	Q1 2022	Q2 2022
AUM End-of-Period ($USD Billions)	$35.0	$33.4	$28.7
Total AUM Inflows ($USD Millions)	$1,706	$1,652	$1,555
Total AUM Outflows ($USD Millions)	$(1,747)	$(1,973)	$(1,867)
Market Appreciation/(Depreciation) ($USD Millions)	$1,672	$(1,140)	$(4,222)
Dividends per Share ($USD)	$0.04 (declared Feb 3)	$0.04 (decl. May 3; payable Jun 28)	$0.04 (decl. Aug 2; payable Sept 27)
Share Repurchases (Shares / $USD)	353,333 / $8.7M @ $24.62 avg	140,895 / $3.1M @ $22.34 avg	183,597 / $3.8M @ $20.63 avg
Cash & Investments ($USD Millions)	$159.4	$182.4	$177.3
Subordinated Debt ($USD Millions)	$51.0	$50.9	$33.7
Cash & Investments, Net of Debt ($USD Millions)	$108.4	$131.5	$143.6

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Diluted EPS	Q2 2022	$0.62–$0.67 (prelim., July 22)	Actual: $0.66	In-line (within range)
Dividend per Share	Q3 2022	$0.04 (regular)	$0.04 (declared Aug 2; payable Sept 27)	Maintained

No formal revenue, margin, OpEx, OI&E, or tax rate guidance was provided in company materials for Q2 2022 .

Earnings Call Themes & Trends

No earnings call transcript was available for Q2 2022 in our document system. Thematic tracking below is based on company press releases.

Topic	Previous Mentions (Q4 2021)	Previous Mentions (Q1 2022)	Current Period (Q2 2022)	Trend
Macro backdrop/volatility	“Six I’s” framework (Inflation, Interest rates, etc.), expected normalization favorable to value	Not emphasized; focus on operations	Emphasis on preliminary EPS and AUM drop amid market depreciation	Deteriorated macro conditions impacting AUM
ESG/SDCC initiatives	SDCC totaling $11.3M in 2021; ongoing ESG commitments	Climate initiative via LOPP; continued ESG focus	Shareholder-designated charitable program highlighted; cumulative $48M designated since 2013	Steady ESG emphasis
Product launches (ETFs/CEFs)	Multiple preferred issuances; conferences	Launched Gabelli Automation ETF; conferences	Launched GABF (Financial Services ETF); multiple rights offerings	Ongoing expansion
Capital allocation	Dividend doubled to $0.04; buybacks	$0.04 dividend; buybacks	$0.04 dividend; continued buybacks	Consistent returns

Management Commentary

“Waiver of CEO compensation bolstered operating income by $7.9 million in the second quarter of 2022.” (Press release) .
“We are committed to allowing our shareholders to choose the recipients of our charitable contributions.” (ESG/SDCC program) .
“GAMCO Expects to Report Diluted EPS for the Second Quarter 2022 of $0.62 to $0.67 Per Share.” (Preliminary release) .
Business highlights included new ETF launches and rights offerings, underscoring product innovation and capital formation (Press release) .

Q&A Highlights

No Q2 2022 earnings call transcript was found; therefore, Q&A themes, guidance clarifications, and tone changes are unavailable based on our document set [Search result: no transcripts].

Estimates Context

S&P Global consensus estimates for GAMI were unavailable due to missing CIQ mapping; as a result, we cannot provide a comparison versus Street expectations for revenue or EPS this quarter [GetEstimates error].
The company’s own preliminary EPS range ($0.62–$0.67) was met, with actual diluted EPS of $0.66, suggesting results were broadly in-line with internal expectations rather than indicating a beat/miss versus Street .

Key Takeaways for Investors

Revenue contracted on lower advisory fees as AUM fell sharply from market depreciation and net outflows; fee headwinds could persist if macro volatility continues .
Operating margin expansion was aided by CEO compensation waiver, a non-recurring support that flatters profitability; future margins may normalize absent similar waivers .
Non-operating losses (mark-to-market) pressured total earnings; P&L sensitivity to proprietary investments remains a swing factor .
Capital returns remain steady with $0.04 dividend and opportunistic buybacks at ~$21/share; continued repurchases may provide downside support .
Product pipeline (ETFs, rights offerings) continues to broaden distribution and fee sources; sustained execution could offset AUM declines over time .
AUM down to $28.7B from $33.4B in Q1 highlights beta exposure to equity markets; near-term trading skew hinges on market direction and flows .
Lack of Street estimates limits beat/miss signaling, but in-line delivery vs. prelim EPS range suggests operational discipline amid a tough backdrop .

GAMCO INVESTORS, INC. ET AL (GAMI)·Q2 2022 Earnings Summary