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Silvercrest Asset Management Group Inc. (SAMG)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 results showed modest top-line growth but weaker profitability: revenue rose to $31.3M (+2.9% YoY), while GAAP EPS fell to $0.07 and adjusted EPS to $0.19 as compensation and professional fees remained elevated .
  • Versus S&P Global consensus, SAMG missed on both revenue ($31.3M vs $32.1M*) and primary/adjusted EPS ($0.19 vs $0.29*) as investment in growth (hiring, international initiatives) weighed on margins .
  • AUM hit a firm record $37.6B (Discretionary $24.3B), positioning future revenue favorably given advance billing; sequential AUM grew ~2.5% despite net outflows, driven by market appreciation .
  • Capital returns remain supportive: quarterly dividend of $0.21 declared for payment in December; repurchases totaled ~$16M under the $25M authorization as of quarter-end .
  • Management emphasized 18–24 months to restore operating leverage as recent hiring and international expansion (EU licensing, Asia/Oceania marketing) convert to flows; near-term allocations to Global Value Equity could arrive within 6–12 months, a potential catalyst .

What Went Well and What Went Wrong

  • What Went Well

    • Record AUM: Total AUM reached $37.6B; Discretionary AUM rose to $24.3B (+7.5% YoY), supporting forward revenue given advance billing .
    • Strategic pipeline building: “Our new business pipeline remains robust, in particular with regards to our new Global Value Equity strategy” .
    • Clear roadmap to operating leverage: CEO expects EBITDA margins to return toward prior levels over time as growth investments mature—“you look out further, and it gets back to where it was” .

  • What Went Wrong

    • EPS and margin pressure: GAAP EPS fell to $0.07 (from $0.24 YoY) and adjusted EBITDA margin declined to 14.5% (from 20.9% YoY) on higher compensation and G&A .
    • Expense intensity persists: Compensation & benefits rose 16.8% YoY (+$3.1M) and G&A rose 11.9% YoY (+$0.9M), including international professional fees and an earnout accrual .
    • Net outflows: Despite strong new-account wins, the quarter saw net client outflows offset by market gains, limiting immediate revenue conversion .

Financial Results

Actuals vs prior periods (oldest → newest)

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$30.424 $30.673 $31.295
GAAP EPS ($)$0.24 $0.21 $0.07
Adjusted EPS ($)$0.26 $0.25 $0.19
Net Income ($USD Millions)$3.730 $3.149 $1.089
Net Income Margin (%)12.3% 10.3% 3.5%
Adjusted EBITDA ($USD Millions)$6.346 $5.735 $4.529
Adjusted EBITDA Margin (%)20.9% 18.7% 14.5%

Q3 2025 vs S&P Global consensus

MetricQ3 2025 ActualQ3 2025 Consensus*
Revenue ($USD Millions)$31.295 $32.119*
Primary/Adjusted EPS ($)$0.19 $0.29*
EBITDA ($USD Millions)(Company Adj. EBITDA) $4.529 (S&P EBITDA) $6.962*

*Values retrieved from S&P Global.

Revenue breakdown

Revenue Component ($USD Millions)Q3 2024Q2 2025Q3 2025
Management & Advisory Fees$29.380 $29.515 $30.067
Family Office Services$1.044 $1.158 $1.228
Total Revenue$30.424 $30.673 $31.295

KPIs (AUM and averages)

KPI ($Billions)Q1 2025Q2 2025Q3 2025
Total AUM (end of period)$35.3 $36.7 $37.6
Discretionary AUM (end of period)$22.7 $23.7 $24.3
Non-Discretionary AUM (end of period)$12.6 $13.0 $13.3
Average AUM (quarter)$35.9 $36.0 $37.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per share (Class A)Q4 2025 payment timing$0.21 declared for Sep 2025 (Q2 BOD action) $0.21 declared Oct 29 for Dec 19, 2025 payment Maintained
Compensation ratio2025–2026Expected elevated during investment cycle Will remain elevated “over the foreseeable future” Maintained
Share repurchase authorizationOngoing$25M program authorized May 23, 2025 ~$16M repurchased as of 9/30/25; program continues In progress
Non-discretionary AUM reporting method2026Planning an adjustment to better reflect fee bps Plan affirmed; one-time lower reported non-discretionary AUM, no revenue impact Clarified (no financial impact)

No formal quantitative guidance was issued for revenue, margins, OpEx, OI&E, or tax rate; adjusted tax rate of 26% is used for non-GAAP presentation, not as forward guidance .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Operating leverage timingTargeting improvements through end-2026; investments in teams, intl build-out; margins to rise with flows 18–24 months to regain prior margin levels; some flows could land in 6–12 months Improving medium-term visibility
Compensation & G&AHigher due to merit increases/new hires; G&A up on marketing, travel, professional fees Comp +16.8% YoY; G&A +11.9% YoY; includes EU licensing/legal and earnout accrual Elevated near term
International expansion/licensingBuilding EU presence; MAS license in Singapore; pursuing UCITS/distribution partners MiFID II/Central Bank of Ireland process; marketing in Europe, Oceania, Asia continues Execution progressing
Global/International Equity pipelineStrong seed and performance; measurable pipeline ~$200M (Q2) plus larger soft pipeline Robust pipeline; potential allocations in next 6–12 months for Global Value Building momentum
OCIO business$300M family office win previously; pipeline variable OCIO AUM “almost $2.2B”; new ~$70M foundation in Oct (post-quarter) Solid pipeline
Capital returnsNew $25M buyback; dividend increased to $0.21 (Q2) ~$16M repurchased YTD; $0.21 dividend declared for December Continued support

Management Commentary

  • Strategic focus and investments: “Silvercrest has embarked on significant strategic investments… primarily in intellectual capital and headcount… our earnings and Adjusted EBITDA are substantially lower than the steady-state business” .
  • Margin outlook: “You look out further, and it gets back to where it was… If I were to strip everything away… we would be at a really historic EBITDA and earnings level” .
  • Near-term pipeline conversion: “I would look to [Global Value] more like 6 months to 12 months. We could see even some reasonable allocations in the fourth quarter or first quarter” .
  • International push: Working on MiFID II authorization in Ireland to proactively market in Europe; active marketing in Europe, Oceania, and Asia .
  • Capital returns: ~$16M of the $25M buyback executed by quarter-end; quarterly dividend of $0.21 declared .

Q&A Highlights

  • Timeline to operating leverage: Management framed a broad 18–24 month horizon to regain historical EBITDA margins as recent investments convert to flows; some nearer allocations in 6–12 months could begin to lift profitability sooner .
  • Expense color: Some professional fees tied to global initiatives are temporary; non-recurring items are isolated in reconciliations .
  • OCIO progress: OCIO AUM is almost $2.2B; a ~$70M foundation joined in early October (post-quarter); finals for ~$100M mandate upcoming (not in Q3 numbers) .
  • Buyback cadence: ~$16M repurchased since May authorization; remaining authorization ~$8–9M referenced on the call; no disclosed average price .

Estimates Context

  • Q3 2025 revenue missed S&P Global consensus ($31.3M vs $32.1M*), and Primary/Adjusted EPS missed ($0.19 vs $0.29*), reflecting elevated compensation and professional fees tied to growth initiatives .
  • S&P Global’s EBITDA consensus ($7.0M*) exceeded the company’s reported Adjusted EBITDA ($4.5M), and materially exceeded S&P’s own standardized EBITDA actual (2.44M*), highlighting definition differences; investors should compare like-for-like (company “Adjusted EBITDA” vs a consistent adjusted framework) .
  • Street coverage is limited (two estimates for Q3 revenue and EPS*), implying higher dispersion/uncertainty around quarterly forecasts*.

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • AUM-driven setup: Record AUM ($37.6B) and higher average AUM ($37.2B) should aid near-term revenue given advance billing, contingent on market stability .
  • Near-term EPS pressure likely persists: Compensation ratio and G&A are intentionally elevated to support international and institutional growth; watch for sequential moderation as flows arrive .
  • Catalyst window: Management flagged potential allocations to Global Value within 6–12 months—a positive inflection for EBITDA/operating leverage if realized .
  • Capital return supports downside: $0.21 dividend declared and active buyback (~$16M executed) provide continuing shareholder support amid investment cycle .
  • Definition discipline: Use company “Adjusted” metrics for trend analysis; S&P consensus EBITDA uses a standardized definition that may not map directly to company-reported Adjusted EBITDA .
  • Watchlist into Q4/Q1: Track OCIO wins, EU licensing progress, and net flow trajectory; management’s 18–24 month timeframe suggests 2026 as a pivotal year for margin normalization .

Supporting details

  • Business update highlights: “Total AUM of $37.6 billion… Revenue of $31.3 million… Adjusted EPS of $0.19” . “Discretionary AUM increased… to $24.3 billion… market appreciation offset net outflows… total AUM increased to $37.6 billion” .
  • Expense drivers: Compensation rose due to merit increases and new hires; G&A higher on professional fees (EU license/legal), occupancy (Singapore), recruiting; earnout accrual in “Other adjustments” .
  • Dividend and buyback: Board declared $0.21 dividend payable ~Dec 19, 2025; ~$16M repurchased under $25M program as of quarter-end .
  • International/consultant relations: Appointment of Head of International Consultant Relations (Sept 8) to expand EMEA/APAC institutional outreach .