Revenue volatility remains a primary concern, with quarterly figures swinging between $26.6 million and $41.4 million, while gross margins exhibited extreme variance from 2.5% to 72.7% over the last ten quarters.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Feb'00 | Feb'99 | Feb'98 | Feb'97 | Feb'96 |
|---|
| Net Interest Income | 1.78M | 298.19K | 0 | 0 | 0 | 0 | 987.24K | 4.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 29.79K | 66.64K | 42.41K | 42.41K | 0 | -39.95K | -20.2K |
| NII Growth % | 497.23% | - | - | - | - | -100% | -79.67% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | -100% | -55.29% | 57.13% | 0% | - | 100% | -97.81% | - |
| Net Interest Margin % | 0.68% | 0.12% | 0% | 0% | 0% | 0% | 0.36% | 1.49% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.77% | 0.97% | 0.43% | 0.33% | 0% | -0.25% | -0.19% |
| Interest Income | 1.78M | 298.19K | 0 | 0 | 0 | 0 | 987.24K | 4.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 31.36K | 67.13K | 52.52K | 52.52K | 100K | 54.66K | 33.63K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.57K | 493 | 10.11K | 10.11K | 100K | 94.61K | 53.83K |
| Loan Loss Provision | 6.3M | 82.91M | 79.59M | 69.4M | 84.26M | 63.85M | 69.54M | 57.48M | 59.17M | 56.15M | 51.28M | 46.78M | 42.61M | 35.43M | 34.38M | 32.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.57K | -493 | -10.11K | -10.11K | -100K | -94.61K | -53.83K |
| Non-Interest Income | 156.08M | 150.8M | 136.72M | 154.5M | 182.19M | 126.39M | 135.64M | 140.77M | 145.2M | 136.1M | 124.43M | 104.56M | 81.43M | 66.66M | 63.9M | 56.7M | 48.96M | 47.02M | 42.22M | 34.43M | 10.84M | 3.26M | 1.56M | 875.18K | 2.18M | 3.2M | 3.2M | 3.6M | -94.61K | -53.83K |
| Non-Interest Income % | 98.87% | 99.8% | 100% | 100% | 100% | 100% | 99.28% | 96.66% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 96.54% | 97.02% | 98.39% | 98.39% | 97.3% | 236.82% | 266.5% |
| Total Revenue | 157.86M | 151.1M | 136.72M | 154.5M | 182.19M | 126.39M | 136.62M | 145.63M | 145.2M | 136.1M | 124.43M | 104.56M | 81.43M | 66.66M | 63.9M | 56.7M | 48.96M | 47.02M | 42.22M | 34.43M | 10.84M | 3.26M | 1.56M | 906.54K | 2.25M | 3.26M | 3.26M | 3.7M | -39.95K | -20.2K |
| Revenue Growth % | 4.48% | 10.52% | -11.51% | -15.2% | 44.15% | -7.49% | -6.18% | 0.29% | 6.69% | 9.38% | 19% | 28.4% | 22.16% | 4.32% | 12.68% | 15.81% | 4.13% | 11.37% | 22.61% | 217.6% | 232.43% | 108.88% | 72.22% | -59.72% | -30.89% | 0% | -11.99% | 9360.88% | -97.81% | - |
| Non-Interest Expense | 90.87M | 24.29M | 21.62M | 20.77M | 21.68M | 17M | 19.15M | 16.89M | 19.03M | 16.88M | 14.42M | 10.32M | 8.14M | 6.8M | 6.46M | 5.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.17M | 0 | 0 | 0 | 0 |
| Efficiency Ratio | 57.57% | 16.08% | 15.81% | 13.44% | 11.9% | 13.45% | 14.01% | 11.6% | 13.11% | 12.41% | 11.59% | 9.87% | 10% | 10.21% | 10.1% | 9.35% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -128.11% | 0% | 0% | 0% | 0% |
| Operating Income | 60.68M | 43.89M | 35.5M | 64.33M | 76.26M | 45.54M | 47.94M | 71.26M | 67M | 63.07M | 58.72M | 47.46M | 30.68M | 24.43M | 23.06M | 18.47M | 48.96M | 47.02M | 42.22M | 34.43M | 10.84M | 3.26M | 1.56M | 906.54K | 2.25M | -915.47K | 3.26M | 3.7M | -39.95K | -20.2K |
| Operating Margin % | 38.44% | 29.05% | 25.97% | 41.64% | 41.86% | 36.03% | 35.09% | 48.93% | 46.14% | 46.34% | 47.19% | 45.39% | 37.68% | 36.65% | 36.09% | 32.58% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | -28.11% | 100% | 100% | 100% | 100% |
| Operating Income Growth % | 38.26% | 23.63% | -44.81% | -15.64% | 67.46% | -5% | -32.73% | 6.35% | 6.24% | 7.41% | 23.72% | 54.68% | 25.6% | 5.93% | 24.83% | -62.27% | 4.13% | 11.37% | 22.61% | 217.6% | 232.43% | 108.88% | 72.22% | -59.72% | 345.83% | -128.11% | -11.99% | 9360.88% | -97.81% | - |
| Pretax Income | 67.28M | 59.01M | 58.58M | 50.96M | 101.64M | 52.12M | 78.44M | 64.98M | 81.02M | 73.26M | 57.98M | 50.37M | 35.63M | 26.08M | 22.99M | 19.68M | 17.51M | 5.52M | 14.99M | 12.3M | 1.99M | 0 | 0 | 0 | -1.65M | -925.57K | -925.57K | 0 | 4.62M | 1.71M |
| Pretax Margin % | 42.62% | 39.06% | 42.84% | 32.98% | 55.79% | 41.24% | 57.41% | 44.62% | 55.8% | 53.83% | 46.6% | 48.17% | 43.76% | 39.13% | 35.99% | 34.7% | 35.77% | 11.75% | 35.5% | 35.71% | 18.35% | 0% | 0% | 0% | -73.38% | -28.42% | -28.42% | 0% | -11552.55% | -8489.44% |
| Income Tax | 17.92M | 15.83M | 15.49M | 14.09M | 26.05M | 13.96M | 18.69M | 18.67M | 29.42M | 26.67M | 20.91M | 18.79M | 13.48M | 9.15M | 8.64M | 7.28M | 6.14M | 2.25M | 5.06M | 4.23M | -1.66M | 0 | 0 | 0 | -148.94K | -380K | -380K | 0 | 1.43M | 0 |
| Effective Tax Rate % | 26.64% | 26.83% | 26.44% | 27.65% | 25.63% | 26.78% | 23.82% | 28.73% | 36.31% | 36.4% | 36.06% | 37.3% | 37.82% | 35.09% | 37.58% | 36.97% | 35.05% | 40.69% | 33.73% | 34.4% | -83.54% | - | - | - | 9.02% | 41.06% | 41.06% | - | 30.98% | 0% |
| Net Income | 48.76M | 43.18M | 42.23M | 40.43M | 74.2M | 38.66M | 54.96M | 47.38M | 49.99M | 46.05M | 37.07M | 31.58M | 22.15M | 16.93M | 14.35M | 12.4M | 11.37M | 3.28M | 9.93M | 8.07M | 3.65M | -176.5K | -993.53K | -2.46M | -1.5M | -545.57K | -545.57K | -400K | 3.28M | 1.75M |
| Net Margin % | 30.89% | 28.58% | 30.89% | 26.17% | 40.73% | 30.59% | 40.23% | 32.53% | 34.43% | 33.84% | 29.8% | 30.2% | 27.21% | 25.4% | 22.46% | 21.87% | 23.23% | 6.97% | 23.53% | 23.42% | 33.68% | -5.41% | -63.64% | -271.76% | -66.77% | -16.75% | -16.75% | -10.81% | -8198.19% | -8666.29% |
| Net Income Growth % | 12.93% | 2.25% | 4.43% | -45.51% | 91.93% | -29.66% | 16.01% | -5.23% | 8.55% | 24.21% | 17.4% | 42.55% | 30.85% | 17.96% | 15.73% | 9.04% | 247.18% | -67.02% | 23.15% | 120.92% | 2168.42% | 82.24% | 59.67% | -63.96% | -175.41% | 0% | -36.39% | -112.21% | 87.12% | - |
| Net Income (Continuing) | 49.36M | 43.18M | 43.09M | 36.87M | 75.59M | 38.17M | 59.75M | 46.31M | 51.6M | 46.59M | 37.07M | 31.58M | 22.15M | 16.93M | 14.35M | 12.4M | 11.37M | 3.28M | 9.93M | 8.07M | 3.65M | -176.5K | -993.53K | -2.46M | -1.5M | -545.57K | -545.57K | -400K | 3.28M | 1.75M |
| EPS (Diluted) | 17.91 | 15.66 | 14.32 | 13.01 | 23.34 | 12.03 | 15.99 | 13.18 | 14.48 | 13.49 | 10.86 | 9.52 | 6.80 | 5.44 | 4.86 | 4.44 | 4.40 | 1.36 | 4.39 | 3.63 | 1.83 | -0.11 | -0.68 | -1.73 | -0.93 | -0.31 | -0.25 | 1.80 | 1.04 | 0.38 |
| EPS Growth % | 14.37% | 9.36% | 10.07% | -44.26% | 94.02% | -24.77% | 21.32% | -8.98% | 7.34% | 24.22% | 14.08% | 40% | 25% | 11.93% | 9.46% | 0.91% | 223.53% | -69.02% | 20.94% | 98.36% | 1763.64% | 83.82% | 60.69% | -86.02% | -200% | -24% | -113.89% | 73.08% | 173.68% | - |
| EPS (Basic) | 17.91 | 15.66 | 14.32 | 13.01 | 23.34 | 12.03 | 15.99 | 13.19 | 14.49 | 13.50 | 10.86 | 9.52 | 6.80 | 5.44 | 4.86 | 4.44 | 4.40 | 1.36 | 4.61 | 4.51 | 2.21 | -0.11 | -0.68 | -1.73 | -0.93 | -0.31 | -0.25 | 1.95 | 1.04 | 0.38 |
| Diluted Shares Outstanding | 2.72M | 2.76M | 2.95M | 3.11M | 3.18M | 3.21M | 3.44M | 3.51M | 3.45M | 3.41M | 3.41M | 3.32M | 3.26M | 3.11M | 2.95M | 2.8M | 2.59M | 2.41M | 2.26M | 2.22M | 2M | 1.57M | 1.46M | 1.42M | 1.62M | 1.75M | 1.6M | 1.82M | 1.68M | 1.68M |
Market-driven revenue volatility
As indicated by the quarterly income statement data, Diamond Hill's revenue has exhibited significant volatility, fluctuating between $26.6 million and $41.4 million over the last ten quarters, suggesting that the firm's top-line performance remains highly sensitive to underlying U.S. equity market conditions and client flow dynamics.
The lack of consistent sequential revenue growth highlights the firm's reliance on market-beta-sensitive advisory fees. Investors should monitor whether the firm's capacity-constrained philosophy can continue to attract institutional capital in an environment increasingly dominated by passive investment vehicles.
Based on reported financial figures, Diamond Hill's gross margin has displayed extreme variance, ranging from a low of 2.5% in 2025Q4 to a high of 72.7% in 2024Q4, which suggests that the firm's cost-to-revenue structure is subject to significant, non-linear adjustments in its operational accounting.
This margin instability appears to be driven by the firm's compensation-heavy cost structure and the impact of non-operating investment income on headline figures. The wide swings in profitability metrics warrant further investigation into the firm's expense recognition policies and the impact of seed capital performance on reported margins.
According to the provided income statement data, the firm's operating margin has fluctuated significantly, reaching as high as 59.7% in 2025Q4 while dipping to 13.1% in 2023Q4, indicating that Diamond Hill struggles to maintain consistent operating leverage during periods of shifting revenue and compensation expense levels.
The inability to consistently scale operating income alongside revenue suggests that fixed costs, particularly professional compensation, are not being managed with sufficient flexibility. This lack of operating leverage may expose the firm to margin compression if revenue growth fails to outpace the rising cost of retaining key investment talent.
As reported in recent financial statements, the firm's net income has shown erratic behavior, with EPS swinging from $2.20 to $5.73, a trend that appears heavily influenced by non-operating items such as gains or losses on the firm's own seed capital and corporate investment portfolio.
The volatility in net income suggests that headline EPS may not accurately reflect the underlying health of the core advisory business. Analysts should strip out these non-operating fluctuations to determine the true, recurring earnings power of the firm's asset management operations.
Based on the provided data, the firm's inconsistent profitability and revenue volatility suggest that short-sellers might focus on the potential for long-term margin erosion as the active management industry faces continued pressure from lower-cost passive alternatives and potential shifts in institutional client preferences.
The firm's reliance on high-conviction, capacity-constrained strategies may limit its ability to scale, potentially leading to a 'melting ice cube' scenario if net organic growth turns negative. Investors should monitor whether the firm's current fee structure can remain resilient in the face of secular industry headwinds.
Quick answers to the most common questions about buying DHIL stock.
Diamond Hill Investment Group, Inc. (DHIL) is profitable, generating $48.8M in net income for the fiscal year ending 2025 with a net profit margin of 30.9%.
Diamond Hill Investment Group, Inc. (DHIL) reported an operating income of $60.7M, resulting in an operating profit margin of 38.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Diamond Hill Investment Group, Inc. (DHIL) generated $151.6M in gross profit for the year, representing a gross profit margin of 96.0%. This demonstrates the company's core pricing power and production efficiency.