Executive Summary

Q1 2025 revenue rose 3.7% YoY to $31.4M, but EPS and revenue modestly missed Wall Street: GAAP diluted EPS $0.26 vs. $0.31 consensus and revenue $31.4M vs. $33.2M consensus; sequentially, adjusted EBITDA margin improved to 20.7% from 15.9% in Q4 2024 as revenue held steady and expense growth moderated . EPS consensus and revenue consensus from S&P Global: $0.31* and $33.21M*.
Strong business development continued: new client organic flows were ~$0.4B in Q1 (following $1.4B in Q4), though total AUM declined 3% QoQ to $35.3B on market depreciation; management remains “highly optimistic” about additional organic flows in 2025 .
Expense pressures persisted from strategic investments (higher salaries, systems, recruiting), driving YoY margin compression; management reiterated a multi‑year margin recovery path toward upper‑20s EBITDA margins as initiatives scale (likely through 2026) .
Capital returns accelerated: Q1 dividend maintained at $0.20 per share and the prior $12M buyback was completed; post‑quarter, the Board authorized a new $25M repurchase program, a potential stock support/catalyst as execution ramps .

What Went Well and What Went Wrong

What Went Well
- Robust new business momentum: ~$0.4B new client organic flows in Q1, building on $1.4B in Q4; management emphasized a “robust” pipeline and optimism for 2025 flows . “We remain highly optimistic about securing more significant organic flows over the course of 2025” — CEO .
- Sequential profitability improvement: Adjusted EBITDA margin rose to 20.7% from 15.9% in Q4 as revenue held at ~$31–32M and non-core items were limited .
- Capital return capacity intact: $36.3M cash, no debt at quarter‑end; dividend maintained ($0.20) and a new $25M buyback authorized in May supports total return and per‑share accretion optionality .
What Went Wrong
- Modest miss vs. consensus and YoY margin pressure: GAAP diluted EPS $0.26 vs. $0.31* and revenue $31.4M vs. $33.2M*; net income margin fell YoY (12.5% vs. 16.2%) as compensation and G&A rose on strategic hiring and systems . EPS and revenue consensus from S&P Global.
- AUM down QoQ on markets: Total AUM declined to $35.3B from $36.5B in Q4 due to ~~$1.4B market depreciation, partially offset by net inflows (~~$0.2B) .
- Elevated compensation ratio persists: Salaries/benefits and equity comp rose with “merit‑based increases” and growth investments; management reiterated operating leverage is a multi‑year outcome tied to scaling new initiatives .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$30.27	$30.42	$31.96	$31.39
GAAP Net Income ($M)	$4.92	$3.73	$2.68	$3.93
GAAP EPS (Diluted)	$0.32	$0.24	$0.17	$0.26
Net Income Margin (%)	16.2%	12.3%	8.4%	12.5%
Adjusted EBITDA ($M)	$7.45	$6.35	$5.07	$6.50
Adjusted EBITDA Margin (%)	24.6%	20.9%	15.9%	20.7%
Adjusted EPS (Diluted)	$0.33	$0.26	$0.20	$0.27
Average AUM ($B)	$33.9	$34.2	$35.0	$35.9
End AUM ($B)	$34.5	$35.1	$36.5	$35.3

Estimate comparison (Q1 2025):

Revenue: Actual $31.39M vs. Consensus $33.21M* (MISS)
GAAP Diluted EPS: Actual $0.26 vs. Consensus $0.31* (MISS)
Number of estimates: 1 for revenue and 1 for EPS*
Values retrieved from S&P Global.

Segment/Revenue Mix

Revenue Component ($M)	Q1 2024	Q4 2024	Q1 2025
Management & Advisory Fees	$29.17	$30.87	$30.27
Family Office Services	$1.11	$1.09	$1.12
Total Revenue	$30.27	$31.96	$31.39

AUM and Flow KPIs

KPI ($B)	Q4 2024	Q1 2025
Gross Inflows	2.2	1.4
Gross Outflows	(1.3)	(1.2)
Net Client Flows	0.9	0.2
Market Apprec/(Deprec)	0.5	(1.4)
New Client Account Flows	—	0.438 (Discretionary)
End Total AUM	36.5	35.3

Liquidity/Capital

Cash & equivalents: $36.3M at 3/31/25; no borrowings outstanding .
Dividend: $0.20 per share declared May 5, payable ~June 20 .

Guidance Changes

Silvercrest does not issue formal numeric revenue/EPS guidance; management provided qualitative direction on margins and capital return.

Metric	Period	Previous Guidance	Current Guidance/Action	Change
Adjusted EBITDA Margin (long‑term)	Multi‑year	Long‑term target upper‑20s/low‑30s as business scales	Multi‑year recovery toward upper‑20s by/through 2026, contingent on flows/markets	Maintained qualitative trajectory
Compensation Ratio	2025	Elevated interim ratio to fund growth	Elevated near‑term; expect leverage as initiatives scale; careful quarterly accrual management	Maintained elevated near‑term
Dividend	Q2 2025 payable	$0.20 (Q4 2024)	$0.20 declared on May 5, payable ~June 20	Maintained
Share Repurchase	Through Q1 2025	$12M plan in place (initiated 2024)	$12M completed; post‑quarter, new $25M authorization (May 23)	Increased authorization post‑quarter

Earnings Call Themes & Trends

Topic	Q3 2024 (prior‑2)	Q4 2024 (prior‑1)	Q1 2025 (current)	Trend
Operating leverage/margin trajectory	Investing elevated comp; long‑term EBITDA back to upper‑20s; near‑term down	Steady‑state margins could be high‑20s/low‑30s; investments continue in 2025	Year‑over‑year margin pressure persists; multi‑year recovery “through end of 2026” as flows scale	Improving medium‑term outlook; timing reaffirmed
Institutional/OCIO pipeline	Pipeline $1.2B; robust; global equity not included	Pipeline $1.6B incl. significant OCIO; global value minimal in pipeline	Robust interest; expects further significant inflows; Asia/Europe outreach ongoing	Building; broader global reach
Global strategy build‑out	Team hired; seed talks under way	$1.3B seed in Global Value (Q4); further follow‑ons expected in 2025–26	Licensing push in EU; Singapore build; expect more global flows	Scaling globally
Capital returns	Initiated $12M buyback; repurchased ~$1.4M in Q3	Continuing buyback; dividend policy emphasized	$12M buyback completed; considering additional; new $25M authorization on 5/23	Accelerating
Compensation/expenses	Higher bonus accruals, salaries, G&A	Elevated comp accrual to narrow Q4 adjustments; G&A higher	Salaries/equity comp and systems/marketing/recruiting remain elevated	Elevated near term
Macro/volatility & flows	Supportive markets Q3; broader participation	Q4 markets mixed; net inflows drove revenue	Q1 volatile; markets down; tax‑related outflows could affect Q2 seasonally	External headwinds intermittent

Management Commentary

Growth momentum and pipeline: “We experienced strong new client organic flows of $0.4 billion during the first quarter... The increases during the quarter bode well for future revenue, and we remain highly optimistic about securing more significant organic flows over the course of 2025” — CEO .
Margin path and investment rationale: “We would be hitting earnings and EBITDA in order to set up the next stage of our company’s growth... I do expect to see increasing margins year‑over‑year… I’m still looking out at least through the end of 2026” — CEO .
Global expansion and licensing: “We’ve established a European entity... licensed to proactively market... within the next 8 to 10 months, could be as soon as 6 months... In Southeast Asia, we’re fully licensed in Singapore at the MAS... we will be adding people there” — CEO .
Capital returns: “We also completed a $12.0 million stock repurchase program... On May 5, the Company’s Board... declared a quarterly dividend of $0.20 per share” — Press Release . Post‑quarter: “authorized... up to $25.0 million” repurchase program — Board .

Q&A Highlights

Share repurchases: Completed $12M plan; management “very seriously” evaluating additional repurchases; post‑quarter a $25M authorization was approved .
Operating leverage/margin timing: Multi‑year plan with improving year‑over‑year margins; upper‑20s EBITDA margins achievable as initiatives scale, with direction toward 2026 depending on flows/markets .
International build‑out: EU licensing underway to proactively market; Singapore licensed and adding staff; presence supports institutional/global equity strategy distribution .
Macro and seasonal considerations: Expect potential Q2 pause given macro/volatility and seasonal tax‑related outflows; majority of assets U.S.‑based mitigates international capital shift risk .

Estimates Context

Q1 2025 vs. S&P Global consensus: Revenue $31.39M actual vs. $33.21M*; GAAP diluted EPS $0.26 actual vs. $0.31*; both modest misses given one‑estimate coverage (n=1 for EPS and revenue)* .
Values retrieved from S&P Global.

Where estimates may adjust:

Modestly lower near‑term revenue/EPS trajectories likely as analysts incorporate Q1 market‑driven AUM decline and elevated expense run‑rate; however, sequential EBITDA margin improvement and stronger pipeline/new $25M buyback may temper negative revisions .

Key Takeaways for Investors

Near‑term print slightly below Street on revenue/EPS, but sequential profitability improved (Adj. EBITDA margin +480 bps QoQ to 20.7%); expense discipline plus scaling initiatives should drive further operating leverage if markets stabilize .
Business momentum is real: ~$1.8B in new client account inflows across Q4–Q1, with management “highly optimistic” about additional 2025 organic flows; a robust institutional/OCIO pipeline and EU/Singapore efforts expand addressable market .
Capital return stepped up: $0.20 dividend maintained and a fresh $25M repurchase program provides downside support and potential per‑share accretion as cash builds (no debt) .
Watch the margin trajectory: management targets upper‑20s EBITDA margins over time (through 2026); key swing factors include institutional mandate timing, EU licensing progress, and market direction .
AUM sensitivity remains the primary earnings driver; Q1 market depreciation masked solid net inflows — supportive markets could quickly translate to top‑line/EBITDA upside, while persistent volatility and Q2 tax seasonality may weigh on near‑term flows .
Cross‑reference note: CEO’s opening remark citing total AUM at ~$34.3B conflicts with the 8‑K/press release figure of $35.3B; rely on the reported $35.3B as official .

Footnote on estimates: Values retrieved from S&P Global. (*) denotes S&P Global consensus figures without document citations.

Silvercrest Asset Management Group Inc. (SAMG)·Q1 2025 Earnings Summary