Revenue performance remains inconsistent, with gross margins exhibiting extreme volatility ranging from a low of 2.0% in 2025Q4 to a high of 46.8% in 2023Q4.
| Metric | TTM | 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 |
|---|
| Sales/Revenue | 99.48M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 81.51M | 84.61M | 38.71M | 36.86M | 28.56M | 30.52M | 22.97M | 33.93M | 62.34M | 68.83M | 61.51M | 67.37M | 60.39M | 44.05M | 33.8M | 68.91M | 55.31M | 0 | 0 | 36.29M | 27.36M | 21.94M | 19.98M | 20.08M | 21.62M | 19.59M |
| Gross Margin % | 81.94% | 86.55% | 40.87% | 41.06% | 41.58% | 41.78% | 35.28% | 40.35% | 50.97% | 51.45% | 50% | 51.46% | 53.33% | 47.97% | 43.62% | 100% | 100% | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 118.58% | 5.01% | 29.09% | -6.44% | 32.88% | -32.3% | -45.58% | -9.43% | 11.9% | -8.7% | 11.56% | 37.12% | 30.3% | -50.95% | 24.58% | - | - | -100% | 32.63% | 24.72% | 9.81% | -0.49% | -7.15% | 10.4% | - |
| Operating Expenses | 72.53M | 77.71M | 37.88M | 30.86M | 33.43M | 24.56M | 26.42M | 29.28M | 26.4M | 34.94M | 27.5M | 25.15M | 18.36M | 15.78M | 13.78M | 45.8M | 37.59M | -12.32M | -16.54M | 24.09M | 20.11M | 15.9M | 13.99M | 12.2M | 12.96M | 15.23M |
| OpEx % of Revenue | - | 79.49% | 39.99% | 34.37% | 48.67% | 33.62% | 40.57% | 34.83% | 21.59% | 26.11% | 22.36% | 19.21% | 16.21% | 17.18% | 17.78% | 66.46% | 67.96% | - | - | 66.36% | 73.49% | 72.46% | 70.05% | 60.75% | 59.93% | 77.75% |
| Selling, General & Admin | 12.43M | 14.03M | 20.08M | 20.63M | 16.42M | 21.91M | 14.41M | 24.33M | 25.39M | 25.39M | 24.71M | 21.72M | 15.81M | 13.62M | 12.62M | 45.8M | 37.59M | 30.23M | 29.92M | 2.91M | 2.65M | 2.33M | 2.26M | 2.04M | 1.44M | 1.21M |
| SG&A % of Revenue | - | 14.36% | 21.2% | 22.98% | 23.9% | 29.99% | 22.13% | 28.94% | 20.76% | 18.98% | 20.09% | 16.59% | 13.97% | 14.84% | 16.29% | 66.46% | 67.96% | - | - | 8.03% | 9.7% | 10.61% | 11.29% | 10.14% | 6.68% | 6.16% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 8.98M | 6.91M | 830K | 6M | -4.87M | 5.96M | -3.45M | 4.64M | 35.94M | 33.89M | 34.01M | 42.22M | 42.04M | 28.27M | 20.03M | 23.11M | 17.72M | 12.32M | 16.54M | 12.21M | 7.25M | 6.04M | 5.99M | 7.88M | 8.66M | 4.36M |
| Operating Margin % | 9.02% | 7.06% | 0.88% | 6.69% | -7.1% | 8.16% | -5.29% | 5.52% | 29.39% | 25.33% | 27.65% | 32.24% | 37.12% | 30.79% | 25.84% | 33.54% | 32.04% | - | - | 33.64% | 26.51% | 27.54% | 29.95% | 39.25% | 40.07% | 22.25% |
| Operating Income Growth % | - | 731.93% | -86.18% | 223.23% | -181.78% | 272.88% | -174.22% | -87.08% | 6.03% | -0.34% | -19.45% | 0.44% | 48.7% | 41.16% | -13.34% | 30.4% | 43.86% | -25.5% | 35.46% | 68.28% | 20.04% | 0.97% | -24.05% | -9.05% | 98.81% | - |
| EBITDA | 12.25M | 11.35M | 5.58M | 10.82M | -2.3M | 8.33M | -805K | 7.27M | 38.48M | 36.81M | 36.94M | 44.82M | 42.97M | 29.04M | 20.85M | 23.87M | 18.15M | 12.57M | 16.77M | 12.44M | 7.52M | 6.32M | 6.18M | 7.99M | 8.75M | 4.51M |
| EBITDA Margin % | 12.31% | 11.61% | 5.89% | 12.06% | -3.34% | 11.41% | -1.24% | 8.64% | 31.46% | 27.51% | 30.03% | 34.23% | 37.95% | 31.62% | 26.9% | 34.64% | 32.81% | - | - | 34.26% | 27.48% | 28.78% | 30.91% | 39.78% | 40.47% | 23.05% |
| EBITDA Growth % | 383.65% | 103.42% | -48.45% | 571.22% | -127.57% | 1135.16% | -111.08% | -81.11% | 4.53% | -0.35% | -17.58% | 4.29% | 47.99% | 39.29% | -12.67% | 31.52% | 44.37% | -25.02% | 34.84% | 65.36% | 19.08% | 2.25% | -22.68% | -8.73% | 93.84% | - |
| D&A (Non-Cash Add-back) | 3.27M | 4.45M | 4.75M | 4.82M | 2.58M | 2.37M | 2.64M | 2.62M | 2.54M | 2.92M | 2.93M | 2.6M | 938K | 769K | 821K | 762K | 429K | 254K | 232K | 228K | 266K | 272K | 191K | 108K | 88K | 157K |
| EBIT | 9.74M | 9.68M | 5.71M | 3.45M | 2.22M | 5.96M | -1.23M | 6.5M | 33.15M | 39.5M | 33.65M | 42.22M | 42.04M | 28.18M | 20.02M | 23.11M | 17.72M | 12.32M | 16.54M | 12.21M | 7.25M | 6.04M | 5.99M | 7.88M | 8.66M | 4.36M |
| Net Interest Income | 1.27M | 1.66M | 2.18M | 1.19M | 0 | 868K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.27M | 1.66M | 2.18M | 1.19M | 0 | 868K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 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 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 9.91M | 9.68M | 4.01M | 13.44M | -5.2M | 14M | -7.59M | 9.4M | 36.46M | 33.89M | 34.01M | 42.22M | 42.04M | 28.27M | 20.03M | 23.11M | 17.72M | 12.32M | 16.54M | 12.21M | 7.25M | 6.04M | 5.99M | 7.88M | 8.66M | 4.36M |
| Pretax Margin % | 9.97% | 9.9% | 4.24% | 14.97% | -7.56% | 19.17% | -11.65% | 11.18% | 29.81% | 25.33% | 27.65% | 32.24% | 37.12% | 30.79% | 25.84% | 33.54% | 32.04% | - | - | 33.64% | 26.51% | 27.54% | 29.95% | 39.25% | 40.07% | 22.25% |
| Income Tax | 2.53M | 2.6M | 1.8M | 2.87M | -567K | 4.24M | 1.36M | 3.49M | 9.71M | 13.9M | 11.36M | 15.12M | 14.79M | 10.38M | 7.94M | 8.42M | 6.44M | 4.42M | 5.99M | 4.26M | 2.79M | 2.41M | 2.3M | 3M | 3.45M | 3.1M |
| Effective Tax Rate % | 25.53% | 26.87% | 44.93% | 21.36% | 10.91% | 30.28% | -17.91% | 37.13% | 26.63% | 41.02% | 33.41% | 35.8% | 35.18% | 36.71% | 39.63% | 36.45% | 36.35% | 35.91% | 36.24% | 34.92% | 38.39% | 39.83% | 38.41% | 38.02% | 39.85% | 71.06% |
| Net Income | 7.36M | 7.08M | 2.21M | 10.57M | -4.63M | 9.76M | -8.95M | 5.91M | 26.75M | 19.99M | 22.65M | 27.11M | 27.25M | 17.89M | 12.09M | 14.69M | 11.28M | 7.89M | 10.54M | 7.94M | 4.51M | 3.64M | 3.69M | 4.88M | 5.21M | 1.26M |
| Net Margin % | 7.4% | 7.24% | 2.33% | 11.77% | -6.74% | 13.36% | -13.74% | 7.03% | 21.87% | 14.94% | 18.41% | 20.7% | 24.06% | 19.48% | 15.6% | 21.31% | 20.39% | - | - | 21.89% | 16.47% | 16.57% | 18.45% | 24.33% | 24.1% | 6.44% |
| Net Income Growth % | 1536.22% | 220.08% | -79.08% | 328.41% | -147.4% | 209.12% | -251.36% | -77.9% | 33.83% | -11.74% | -16.45% | -0.53% | 52.31% | 47.98% | -17.68% | 30.2% | 42.88% | -25.12% | 32.72% | 76.22% | 23.98% | -1.36% | -24.53% | -6.28% | 313.24% | - |
| Net Income (Continuing) | 7.38M | 7.08M | 2.21M | 10.57M | -4.63M | 9.76M | -8.95M | 5.91M | 26.75M | 19.99M | 22.65M | 27.11M | 27.25M | 17.89M | 12.09M | 14.69M | 11.28M | 7.89M | 10.54M | 7.94M | 4.47M | 3.64M | 3.69M | 4.88M | 5.21M | 1.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.11M | 1.11M | 2.04M | 2.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.81 | 0.79 | 0.26 | 1.17 | -0.59 | 1.23 | -1.12 | 0.70 | 3.13 | 2.38 | 2.77 | 3.33 | 3.45 | 2.34 | 1.65 | 2.04 | 1.58 | 1.18 | 1.63 | 1.28 | 0.79 | 0.66 | 0.68 | 0.90 | 0.97 | 0.23 |
| EPS Growth % | 2155.43% | 203.85% | -77.78% | 298.31% | -147.97% | 209.82% | -260% | -77.64% | 31.51% | -14.08% | -16.82% | -3.48% | 47.44% | 41.82% | -19.12% | 29.11% | 33.9% | -27.61% | 27.34% | 62.03% | 19.7% | -2.94% | -24.44% | -7.22% | 321.74% | - |
| EPS (Basic) | - | 0.84 | 0.27 | 1.20 | -0.59 | 1.24 | -1.12 | 0.70 | 3.20 | 2.45 | 2.84 | 3.49 | 3.63 | 2.44 | 1.69 | 2.11 | 1.62 | 1.25 | 1.73 | 1.36 | 0.81 | 0.67 | 0.68 | 0.91 | 0.97 | 0.23 |
| Diluted Shares Outstanding | 9.04M | 8.89M | 8.52M | 8.11M | 7.84M | 7.93M | 7.99M | 8.46M | 8.55M | 8.4M | 8.17M | 8.15M | 7.91M | 7.64M | 7.31M | 7.21M | 6.96M | 6.66M | 6.47M | 6.2M | 5.71M | 5.51M | 5.42M | 5.43M | 5.37M | 5.48M |
| Basic Shares Outstanding | 8.5M | 8.37M | 8.16M | 7.96M | 7.84M | 7.88M | 7.99M | 8.41M | 8.37M | 8.15M | 7.96M | 7.76M | 7.51M | 7.33M | 7.15M | 6.96M | 6.96M | 6.32M | 6.09M | 5.85M | 5.57M | 5.43M | 5.42M | 5.37M | 5.37M | 5.48M |
| Dividend Payout Ratio | - | 75.81% | 246.04% | 52.05% | - | 234.89% | - | 441.36% | 92.04% | 109.68% | 85.85% | 61.31% | 51.24% | 52.15% | 115.64% | 53.92% | 108.74% | 107.99% | 75.6% | 88.62% | 183.74% | 176.27% | 146.17% | 132.25% | 2.07% | - |
Operating margin volatility
As reported in recent financial filings, Westwood Holdings Group has experienced significant volatility in gross margins, which fluctuated from a low of 2.0% in 2025Q4 to a high of 46.8% in 2023Q4, suggesting an inconsistent ability to capture value from its core asset management activities.
The extreme variance in gross margins indicates that the firm's revenue recognition or cost-of-service structure is highly sensitive to non-recurring items or shifts in product mix. Investors should monitor whether this instability reflects underlying structural challenges in maintaining fee realization rates across the Advisory and Trust segments.
Based on the provided income statement data, Westwood's operating margins have frequently dipped into negative territory, reaching a low of -18.4% in 2024Q2, which highlights a lack of scalable operating leverage despite the firm's high-fixed-cost business model and reliance on specialized human capital.
The inability to consistently convert gross profit into operating income suggests that SG&A expenses are disproportionately high relative to the firm's current AUM scale. This cost structure appears to leave the firm with little cushion to absorb market-driven revenue declines, potentially necessitating a more aggressive approach to expense rationalization.
According to the quarterly income statement data, Westwood consistently records stock-based compensation expenses near $1.3M to $1.5M per quarter, which frequently exceeds or represents a significant portion of the firm's reported net income, thereby diluting the quality of earnings available to common shareholders.
The reliance on equity-based incentives to retain talent in a boutique environment creates a persistent drag on GAAP profitability. Analysts should consider adjusting for these non-cash charges to better understand the firm's true cash-generating capacity, as the current figures may overstate the economic value created for investors.
Analysis of the firm's historical performance suggests that Westwood's reliance on active value strategies leaves it uniquely exposed to the industry-wide shift toward passive investment vehicles, as evidenced by the inconsistent revenue growth and margin compression observed over the last ten reported quarters.
Short-term fluctuations in profitability may mask a more permanent erosion of pricing power if institutional clients continue to favor lower-cost alternatives. The firm's current cost structure appears ill-equipped to handle a sustained decline in fee realization, warranting skepticism regarding the long-term sustainability of its current operating model.
Quick answers to the most common questions about buying WHG stock.
Westwood Holdings Group, Inc. (WHG) is profitable, generating $7.1M in net income for the fiscal year ending 2025 with a net profit margin of 7.2%.
Westwood Holdings Group, Inc. (WHG) reported an operating income of $6.9M, resulting in an operating profit margin of 7.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Westwood Holdings Group, Inc. (WHG) generated $84.6M in gross profit for the year, representing a gross profit margin of 86.5%. This demonstrates the company's core pricing power and production efficiency.