Silvercrest Asset Management Group Inc. (SAMG)·Q2 2025 Earnings Summary

Executive Summary

• Q2 delivered Revenue of $30.7M (-1.0% y/y) and GAAP diluted EPS of $0.21; Adjusted diluted EPS was $0.25, with Adjusted EBITDA margin of 18.7% as elevated compensation and G&A tied to growth investments weighed on profitability .
• AUM hit a record $36.7B (Discretionary $23.7B), up 4.0% q/q and 9.9% y/y; despite negative net flows in the quarter (-$0.4B), the firm added $80M in new client accounts and $0.5B in H1 new accounts .
• Versus S&P Global consensus, Q2 revenue was roughly in line while EPS and EBITDA were below: Revenue $30.67M vs $30.77M*, Primary EPS $0.25 vs $0.30*, and EBITDA $5.74M vs $6.99M*; mix shift to lower-fee institutional/OCIO mandates pressured fee rate and margins (management expects operating leverage as growth scales) .
• Capital return remains a tangible catalyst: completed a $12M buyback early in Q2, authorized a new $25M repurchase program on May 23, and raised the quarterly dividend 5% to $0.21 per share .

Note: Asterisks denote values retrieved from S&P Global.

What Went Well and What Went Wrong

• What Went Well

  • Record AUM: Total AUM reached $36.7B (Discretionary $23.7B), +4.0% q/q and +9.9% y/y, which “bodes well for future revenue” given quarterly-in-advance billing .
  • New business momentum: Added $80M of organic new client accounts in Q2 and $0.5B in H1; approx. $2.0B added over the past four quarters .
  • Pipeline and capital returns: CEO highlighted a measured, actionable pipeline of about $200M—“that has doubled since the last quarter”—and reiterated strong capital return posture (dividend increase; accelerated block buybacks) .

• What Went Wrong

  • Fee-rate pressure and mix: Revenue declined 1.0% y/y to $30.7M, driven by a decrease in the average annual management fee rate due to AUM mix; management noted the basis points per AUM could continue to drift lower with institutional/OCIO growth .
  • Margin compression: Adjusted EBITDA margin fell to 18.7% (from 23.3% a year ago) as compensation and G&A rose with hiring, travel/marketing, and infrastructure; GAAP net income margin contracted to 10.3% from 14.1% .
  • OCIO pipeline lighter: Management said the OCIO pipeline “has come down a bit” versus prior periods, albeit with near-term finals on a ~$100M mandate (~5% of AUM if won), underscoring near-term variability .

Financial Results

Income statement snapshot (oldest → newest)

Q2 2025 actuals vs S&P Global consensus

Note: Company-reported GAAP diluted EPS was $0.21 ; S&P Global “Primary EPS” actual reflected $0.25*, which may differ from GAAP EPS presentation.

Revenue breakdown (oldest → newest)

KPIs and flows (oldest → newest)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Barring short-term market volatility, the increase in AUM bodes well for future revenue, as Silvercrest primarily bills quarterly in advance.”
• “The pipeline that we can very clearly measure… is about $200 million. That has doubled since the last quarter.”
• “If we make more progress… in the institutional market… you can expect to see the basis point per AUM continue to come down a bit… [but] once the flows… and the hiring will eventually slow, we should see significant operating leverage.”
• “We completed a $12.0 million stock repurchase program… announced a new buyback program of $25.0 million on May 23, 2025… [and] approved an increase of 5% to the quarterly dividend… to $0.21.”

Q&A Highlights

• Pipeline/strategy: CEO emphasized the measured six-month actionable pipeline of ~$200M (finals/semifinals) while noting a much larger “softer” pipeline tied to Global Value and broader initiatives .
• Buybacks: Repurchased ~$15.3M of stock in Q2 using blocks; average price not disclosed; roughly ~$10M remains under the new plan at time of call commentary .
• Fee mix and margins: Management expects fee bps to trend slightly lower with institutional/OCIO growth but reiterated the model’s operating leverage as scale is achieved; some G&A savings identified for the coming quarters .
• OCIO: Pipeline “could be stronger” vs prior periods; has finals on ~$100M mandate next quarter and previously won a $300M family office .

Estimates Context

• Q2 2025 vs consensus (S&P Global): Revenue $30.673M vs $30.770M* (slight miss); Primary EPS $0.25* vs $0.30* (miss); EBITDA $5.735M vs $6.986M* (miss). Mix-driven fee-rate pressure and elevated compensation/G&A from growth investments were primary drivers of the underperformance vs Street expectations .
• Note on EPS definitions: Company GAAP diluted EPS was $0.21; S&P “Primary EPS” actual reflected $0.25*, which may correspond to an adjusted basis for SAMG. Investors should align basis when comparing to consensus.

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

• AUM trajectory is positive and a leading indicator: record $36.7B and +4% q/q growth support forward revenue, given advance billing, despite Q2 net outflows .
• Near-term earnings pressure stems from the chosen investment cycle (hiring, international build-out, marketing) and mix shift—setting up medium-term operating leverage if flows materialize as expected .
• Capital returns are an active lever: dividend raised to $0.21 and a new $25M buyback authorization signal confidence and provide downside support/catalyst potential .
• Institutional/Global Value and international expansion (EU/Singapore) broaden distribution; measured pipeline doubled q/q to ~$200M with additional “softer” opportunities not captured in that figure .
• OCIO is more mixed near term (pipeline down vs prior), but finals on ~$100M and prior $300M family office win provide potential upside if converted .
• Watch fee rate (bps) trend and expense trajectory: continued institutional/OCIO growth likely pressures bps, while identified G&A savings should begin to help margins over the next couple of quarters .