Earnings Per Share – Diluted of $5.17; Earnings Per Share – Diluted, as Adjusted, of $6.50
Total Sales of $5.3B; Net Flows of ($8.1B); Assets Under Management of $159.5B

HARTFORD, Conn.–(BUSINESS WIRE)–Virtus Investment Partners, Inc. (NYSE: VRTS) today reported financial results for the three months ended December 31, 2025.

Financial Highlights (Unaudited)

(in millions, except per share data or as noted)

	Three Months Ended								Three Months Ended
	12/31/2025			12/31/2024			Change		9/30/2025			Change
U.S. GAAP Financial Measures
Revenues	$	208.0		$	233.5		(11	%)	$	216.4		(4	%)
Operating expenses	$	168.2		$	182.8		(8	%)	$	169.3		(1	%)
Operating income (loss)	$	39.8		$	50.7		(21	%)	$	47.1		(15	%)
Operating margin		19.1	%		21.7	%				21.7	%
Net income (loss) attributable to Virtus Investment Partners, Inc.	$	35.5		$	33.3		7	%	$	31.9		11	%
Earnings (loss) per share – diluted	$	5.17		$	4.66		11	%	$	4.65		11	%
Weighted average shares outstanding – diluted		6.857			7.139		(4	%)		6.867		—	%

Non-GAAP Financial Measures (1)
Revenues, as adjusted	$	188.9		$	212.0		(11	%)	$	196.7		(4	%)
Operating expenses, as adjusted	$	127.8		$	137.6		(7	%)	$	131.7		(3	%)
Operating income (loss), as adjusted	$	61.1		$	74.5		(18	%)	$	65.0		(6	%)
Operating margin, as adjusted		32.4	%		35.1	%				33.0	%
Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted	$	44.5		$	53.5		(17	%)	$	45.9		(3	%)
Earnings (loss) per share – diluted, as adjusted	$	6.50		$	7.50		(13	%)	$	6.69		(3	%)
(1) See the information beginning on page 10 for reconciliations to the most directly comparable U.S. GAAP measures and other important disclosures

Earnings Summary

The company presents U.S. GAAP and non-GAAP earnings information in this release. Management believes that the non-GAAP financial measures presented reflect the company’s operating results from providing investment management and related services to individuals and institutions and uses these measures to evaluate financial performance. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Non-GAAP information and reconciliations to the most comparable U.S. GAAP measures can be found beginning on page 10 of this earnings release.

Assets Under Management and Asset Flows

(in billions)

	Three Months Ended								Three Months Ended
	12/31/2025			12/31/2024			Change		9/30/2025			Change
Ending total assets under management	$	159.5		$	175.0		(9	%)	$	169.3		(6	%)
Average total assets under management	$	165.2		$	182.1		(9	%)	$	170.3		(3	%)
Total sales	$	5.3		$	6.4		(17	%)	$	6.3		(15	%)
Net flows	$	(8.1	)	$	(4.8	)	67	%	$	(3.9	)	110	%

Total assets under management of $159.5 billion at December 31, 2025 compared with $169.3 billion in the prior quarter due to market performance and net outflows in U.S. retail funds, institutional, and retail separate accounts partially offset by positive net flows in exchange-traded funds (ETFs). In addition, the company provided services to $1.8 billion of other fee-earning assets that are not included in assets under management.

Total sales of $5.3 billion compared with $6.3 billion in the prior quarter. Institutional sales of $1.4 billion decreased from $2.0 billion, which included the issuance of a $0.4 billion collateralized loan obligation (CLO). Retail separate account sales of $1.2 billion compared with $1.4 billion as higher wealth management sales were more than offset by intermediary sold. Open-end fund sales, including $0.8 billion of ETF sales, were $2.8 billion and essentially unchanged.

Net flows of ($8.1) billion compared with ($3.9) billion in the prior quarter and were driven by quality-oriented equity strategies. Institutional net flows of ($3.0) billion compared with ($1.5) billion and were primarily due to net outflows in large-cap growth strategies. Retail separate account net flows of ($2.5) billion compared with ($1.2) billion with net outflows led by small- and small/mid-cap strategies. Open-end fund net flows, which included $0.6 billion of positive ETF net flows, were ($2.5) billion primarily due to net outflows in equities and compared with ($1.1) billion in the prior quarter.

GAAP Results

Operating income of $39.8 million decreased from $47.1 million in the prior quarter reflecting a 4% decline in revenues due to lower average assets under management, partially offset by a 1% decline in operating expenses. Lower operating expenses were primarily due to a decline in employment expenses due to lower variable incentive compensation, as other operating expenses were essentially unchanged.

Net income attributable to Virtus Investment Partners, Inc. of $5.17 per diluted share included ($0.40) of CLO expenses, ($0.26) of realized and unrealized losses on investments, ($0.24) of acquisition and integration costs, and ($0.09) of fair value adjustments to contingent consideration, partially offset by $0.53 of fair value adjustments to minority interests and $0.16 of discrete tax adjustments. Net income per diluted share of $4.65 in the prior quarter included ($1.54) of realized and unrealized losses on investments and ($0.05) of acquisition and integration costs, partially offset by $0.42 of fair value adjustments to minority interests.

The effective tax rate of 28% compared with 29% in the prior quarter, primarily reflecting a decrease in income tax valuation allowances for net unrealized and realized losses compared to the prior quarter.

Non-GAAP Results

Revenues, as adjusted, of $188.9 million decreased 4% from $196.7 million in the prior quarter primarily due to lower average assets under management.

Employment expenses, as adjusted, of $95.8 million declined 3% due to lower variable incentive compensation. Other operating expenses, as adjusted, of $30.2 million decreased from $31.1 million in the prior quarter, which included discrete business initiative expenses of $1.0 million.

Operating income, as adjusted, of $61.1 million and the related margin of 32.4% compared with $65.0 million and 33.0%, respectively, due to lower revenues partially offset by a 3% decline in total operating expenses.

Net income attributable to Virtus Investment Partners, Inc., as adjusted, per diluted share was $6.50 and compared with $6.69 in the prior quarter. The sequential decrease primarily reflected lower average assets.

The effective tax rate, as adjusted, of 25% decreased from 26% in the prior quarter due to a lower state tax rate.

Select Balance Sheet Items and Metrics (Unaudited)

(in millions)

	As of							As of
Select Balance Sheet Items	12/31/2025		12/31/2024			Change		9/30/2025		Change
Cash and cash equivalents	$	386.5	$	265.9		45	%	$	370.6	4	%
Gross debt (1)	$	399.0	$	236.1		69	%	$	400.0	—	%
Contingent consideration (2)	$	39.1	$	63.5		(38	%)	$	37.4	5	%
Redeemable noncontrolling interests (3)	$	26.8	$	61.6		(57	%)	$	38.7	(31	%)
Total equity exc. noncontrolling interests	$	934.1	$	897.5		4	%	$	918.7	2	%
Other Metrics
Working capital (4)	$	254.0	$	134.5		89	%	$	288.4	(12	%)
Net debt (cash) (5)	$	12.5	$	(29.8	)	N/M		$	29.4	(57	%)

N/M – Not Meaningful
(1)		Excludes deferred financing costs of $9.0 million, $3.9 million, and $9.4 million, as of December 31, 2025, December 31, 2024, and September 30, 2025, respectively
(2)		Represents estimated revenue participation and other contingent payments
(3)		Excludes redeemable noncontrolling interests of consolidated investment products of $76.2 million, $45.7 million, and $64.5 million as of December 31, 2025, December 31, 2024, and September 30, 2025, respectively
(4)		Defined as cash and cash equivalents plus accounts receivable, net, and deferred compensation related investments less accrued compensation and benefits (excluding those of minority interests), accounts payable and accrued liabilities, dividends payable, as well as debt principal payments and revenue participation obligations due within 12 months
(5)		Defined as gross debt less cash and cash equivalents in accordance with the company’s credit agreement

Cash and equivalents at December 31, 2025 were $386.5 million, up 4% from the prior quarter as cash earnings were primarily offset by the previously-announced minority investment in Crescent Cove for $40.0 million and return of capital to shareholders. Working capital at December 31, 2025 was $254.0 million.

During the quarter, the company repurchased 60,292 shares for $10.0 million.

Gross debt at December 31, 2025 was $399.0 million. Net debt was $12.5 million, or 0.0x EBITDA.

Conference Call and Investor Presentation

Management will host an investor conference call and webcast on Friday, February 6, 2026, at 10 a.m. Eastern to discuss these financial results and related matters. The presentation that will accompany the conference call is available in the Investor Relations section of virtus.com. A replay of the call will be available in the Investor Relations section for at least one year. We routinely post important information for investors on the Investor Relations section of our website and may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. We may also use social media channels to communicate with our investors and the public about our company, our products and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document.

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.

U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

	Three Months Ended								Three Months Ended					Twelve Months Ended
	12/31/2025			12/31/2024			Change		9/30/2025			Change		12/31/2025			12/31/2024			Change
Revenues
Investment management fees	$	175,710		$	199,975		(12	%)	$	183,762		(4	%)	$	725,039		$	773,830		(6	%)
Distribution and service fees		12,341			13,685		(10	%)		12,517		(1	%)		49,579			54,692		(9	%)
Administration and shareholder service fees		18,351			18,748		(2	%)		18,869		(3	%)		73,275			74,294		(1	%)
Other income and fees		1,621			1,086		49	%		1,237		31	%		4,972			4,133		20	%
Total revenues		208,023			233,494		(11	%)		216,385		(4	%)		852,865			906,949		(6	%)
Operating Expenses
Employment expenses		94,790			106,202		(11	%)		98,807		(4	%)		400,720			432,587		(7	%)
Distribution and other asset-based expenses		22,142			24,005		(8	%)		22,034		—	%		89,047			96,223		(7	%)
Other operating expenses		32,307			32,738		(1	%)		32,428		—	%		130,358			127,526		2	%
Operating expenses of consolidated investment products		3,506			2,923		20	%		496		N/M			5,812			6,987		(17	%)
Restructuring expense		—			—		N/M			693		(100	%)		693			1,487		(53	%)
Change in fair value of contingent consideration		800			1,692		(53	%)		—		N/M			(2,214	)		(5,608	)	(61	%)
Depreciation expense		1,719			2,330		(26	%)		1,922		(11	%)		7,992			8,958		(11	%)
Amortization expense		12,944			12,883		—	%		12,945		—	%		51,777			56,299		(8	%)
Total operating expenses		168,208			182,773		(8	%)		169,325		(1	%)		684,185			724,459		(6	%)
Operating Income (Loss)		39,815			50,721		(22	%)		47,060		(15	%)		168,680			182,490		(8	%)
Other Income (Expense)
Realized and unrealized gain (loss) on investments, net		586			(2,501	)	N/M			2,257		(74	%)		5,823			3,914		49	%
Realized and unrealized gain (loss) of consolidated investment products, net		(337	)		2,069		N/M			(14,913	)	(98	%)		(28,103	)		(14,460	)	94	%
Other income (expense), net		802			341		135	%		536		50	%		3,473			2,036		71	%
Total other income (expense), net		1,051			(91	)	N/M			(12,120	)	N/M			(18,807	)		(8,510	)	121	%
Interest Income (Expense)
Interest expense		(7,029	)		(5,033	)	40	%		(5,299	)	33	%		(21,471	)		(22,132	)	(3	%)
Interest and dividend income		5,033			3,463		45	%		2,200		129	%		12,303			12,488		(1	%)
Interest and dividend income of investments of consolidated investment products		47,944			50,604		(5	%)		45,918		4	%		187,452			204,732		(8	%)
Interest expense of consolidated investment products		(39,562	)		(41,157	)	(4	%)		(33,310	)	19	%		(140,908	)		(161,192	)	(13	%)
Total interest income (expense), net		6,386			7,877		(19	%)		9,509		(33	%)		37,376			33,896		10	%
Income (Loss) Before Income Taxes		47,252			58,507		(19	%)		44,449		6	%		187,249			207,876		(10	%)
Income tax expense (benefit)		13,400			19,047		(30	%)		13,108		2	%		51,261			55,423		(8	%)
Net Income (Loss)		33,852			39,460		(14	%)		31,341		8	%		135,988			152,453		(11	%)
Noncontrolling interests		1,598			(6,166	)	N/M			585		173	%		2,408			(30,707	)	N/M
Net Income (Loss) Attributable to Virtus Investment Partners, Inc.	$	35,450		$	33,294		6	%	$	31,926		11	%	$	138,396		$	121,746		14	%
Earnings (Loss) Per Share – Basic	$	5.25		$	4.75		11	%	$	4.73		11	%	$	20.27		$	17.19		18	%
Earnings (Loss) Per Share – Diluted	$	5.17		$	4.66		11	%	$	4.65		11	%	$	19.97		$	16.89		18	%
Cash Dividends Declared Per Common Share	$	2.40		$	2.25		7	%	$	2.40		—	%	$	9.30		$	8.30		12	%
Weighted Average Shares Outstanding – Basic		6,752			7,012		(4	%)		6,757		—	%		6,829			7,082		(4	%)
Weighted Average Shares Outstanding – Diluted		6,857			7,139		(4	%)		6,867		—	%		6,929			7,210		(4	%)

N/M – Not Meaningful

Assets Under Management – Product and Asset Class

(in millions)

	Three Months Ended
	12/31/2024		3/31/2025		6/30/2025		9/30/2025		12/31/2025
By Product (period end):
Open-End Funds (1)	$	56,073	$	53,608	$	55,653	$	55,724	$	52,759
Closed-End Funds		10,225		10,273		10,481		10,867		10,635
Retail Separate Accounts (2)		49,536		46,920		47,445		46,798		43,091
Institutional Accounts (3)		59,167		56,662		57,131		55,936		53,008
Total	$	175,001	$	167,463	$	170,710	$	169,325	$	159,493

By Product (average) (4)
Open-End Funds (1)	$	57,905	$	56,104	$	53,742	$	55,889	$	54,502
Closed-End Funds		10,452		10,288		10,183		10,598		10,828
Retail Separate Accounts (2)		50,610		49,321		46,637		47,363		46,287
Institutional Accounts (3)		63,121		57,877		56,397		56,426		53,603
Total	$	182,088	$	173,590	$	166,959	$	170,276	$	165,220

By Asset Class (period end):
Equity	$	100,792	$	93,624	$	96,232	$	92,066	$	82,584
Fixed Income		37,696		37,930		38,594		39,750		39,879
Multi-Asset (5)		21,174		20,834		21,430		22,078		21,617
Alternatives (6)		15,339		15,075		14,454		15,431		15,413
Total	$	175,001	$	167,463	$	170,710	$	169,325	$	159,493

Assets Under Management – Average Management Fees Earned (7)

(in basis points)

	Three Months Ended
	12/31/2024	3/31/2025	6/30/2025	9/30/2025	12/31/2025
By Product:
Open-End Funds (1)	49.5	47.8	46.7	47.0	44.7
Closed-End Funds	58.8	58.5	58.6	58.5	58.4
Retail Separate Accounts (2)	42.6	42.9	42.9	41.8	42.0
Institutional Accounts (3)(8)	31.9	31.8	31.8	31.6	31.5
All Products (8)	42.0	41.7	41.3	41.2	40.6

(1)		Represents assets under management of U.S. retail funds, global funds, and exchange-traded funds
(2)		Includes investment models provided to managed account sponsors
(3)		Represents assets under management of institutional separate and commingled accounts including structured products
(4)		Calculated according to revenue earning basis that includes average daily, weekly, monthly beginning balance, monthly ending balance, or quarter beginning and ending balance, as well as quarter beginning or ending spot balance
(5)		Consists of multi-asset offerings not included in equity, fixed income, and alternatives
(6)		Consists of real estate securities, managed futures, event-driven, infrastructure, and other strategies
(7)		Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude the impact of consolidated investment products and are net of revenue-related adjustments. Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed through to third-party client intermediaries for services to investors in sponsored investment products
(8)		Includes performance-related fees, in basis points, earned during the three months ended as follows:

	12/31/2024	3/31/2025	6/30/2025	9/30/2025	12/31/2025
Institutional Accounts	1.0	0.2	0.7	0.2	0.1
All Products	0.3	0.1	0.2	0.1	—

Assets Under Management – Asset Flows by Product

(in millions)

	Three Months Ended															Twelve Months Ended
	12/31/2024			3/31/2025			6/30/2025			9/30/2025			12/31/2025			12/31/2024			12/31/2025
Open-End Funds (1)
Beginning balance	$	58,100		$	56,073		$	53,608		$	55,653		$	55,724		$	56,062		$	56,073
Inflows		3,049			3,038			2,825			2,815			2,760			12,420			11,438
Outflows		(4,165	)		(4,110	)		(3,806	)		(3,901	)		(5,260	)		(16,532	)		(17,077	)
Net flows		(1,116	)		(1,072	)		(981	)		(1,086	)		(2,500	)		(4,112	)		(5,639	)
Market performance		(541	)		(1,250	)		3,211			1,335			82			4,949			3,378
Other (2)		(370	)		(143	)		(185	)		(178	)		(547	)		(826	)		(1,053	)
Ending balance	$	56,073		$	53,608		$	55,653		$	55,724		$	52,759		$	56,073		$	52,759

Closed-End Funds
Beginning balance	$	10,432		$	10,225		$	10,273		$	10,481		$	10,867		$	10,026		$	10,225
Inflows		1			5			4			3			—			1			12
Outflows		—			(40	)		(2	)		(10	)		(52	)		(41	)		(104	)
Net flows		1			(35	)		2			(7	)		(52	)		(40	)		(92	)
Market performance		(55	)		257			378			581			52			1,112			1,268
Other (2)		(153	)		(174	)		(172	)		(188	)		(232	)		(873	)		(766	)
Ending balance	$	10,225		$	10,273		$	10,481		$	10,867		$	10,635		$	10,225		$	10,635

Retail Separate Accounts (3)
Beginning balance	$	50,610		$	49,536		$	46,920		$	47,445		$	46,798		$	43,202		$	49,536
Inflows		1,816			1,742			1,468			1,449			1,205			8,621			5,864
Outflows		(1,745	)		(2,410	)		(2,264	)		(2,666	)		(3,724	)		(6,957	)		(11,064	)
Net flows		71			(668	)		(796	)		(1,217	)		(2,519	)		1,664			(5,200	)
Market performance		(1,145	)		(1,947	)		1,322			579			(1,187	)		4,667			(1,233	)
Other (2)		—			(1	)		(1	)		(9	)		(1	)		3			(12	)
Ending balance	$	49,536		$	46,920		$	47,445		$	46,798		$	43,091		$	49,536		$	43,091

Institutional Accounts (4)
Beginning balance	$	64,600		$	59,167		$	56,662		$	57,131		$	55,936		$	62,969		$	59,167
Inflows		1,574			1,455			1,283			2,006			1,381			5,715			6,125
Outflows		(5,376	)		(2,659	)		(3,455	)		(3,548	)		(4,408	)		(13,660	)		(14,070	)
Net flows		(3,802	)		(1,204	)		(2,172	)		(1,542	)		(3,027	)		(7,945	)		(7,945	)
Market performance		(1,141	)		(1,170	)		2,844			498			274			5,101			2,446
Other (2)		(490	)		(131	)		(203	)		(151	)		(175	)		(958	)		(660	)
Ending balance	$	59,167		$	56,662		$	57,131		$	55,936		$	53,008		$	59,167		$	53,008

Total
Beginning balance	$	183,742		$	175,001		$	167,463		$	170,710		$	169,325		$	172,259		$	175,001
Inflows		6,440			6,240			5,580			6,273			5,346			26,757			23,439
Outflows		(11,286	)		(9,219	)		(9,527	)		(10,125	)		(13,444	)		(37,190	)		(42,315	)
Net flows		(4,846	)		(2,979	)		(3,947	)		(3,852	)		(8,098	)		(10,433	)		(18,876	)
Market performance		(2,882	)		(4,110	)		7,755			2,993			(779	)		15,829			5,859
Other (2)		(1,013	)		(449	)		(561	)		(526	)		(955	)		(2,654	)		(2,491	)
Ending balance	$	175,001		$	167,463		$	170,710		$	169,325		$	159,493		$	175,001		$	159,493

(1)		Represents assets under management of U.S. retail funds, global funds and exchange-traded funds
(2)		Represents open-end and closed-end fund distributions net of reinvestments, the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products, and the use of leverage
(3)		Includes investment models provided to managed account sponsors
(4)		Represents assets under management of institutional separate and commingled accounts including structured products

Non-GAAP Information and Reconciliations

(in thousands except per share data)

The non-GAAP financial measures included in this release differ from financial measures determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earnings generated from providing investment management and related services. Management uses these measures to evaluate the company’s financial performance and operational decision-making. Management believes that these non-GAAP financial measures, when presented together with directly comparable U.S. GAAP measures, are useful to investors and other interested parties to provide additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management. Please see the Notes to Reconciliations on page 13 for additional information on how these measures reflect the company’s operating results. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Also, the non-GAAP financial measures referenced in this release may not be comparable to the similarly titled measures used by other companies.

The following are reconciliations and related notes of the most directly comparable U.S. GAAP measure to each non-GAAP measure:

	Three Months Ended
Revenues	12/31/2025			12/31/2024			9/30/2025
Total revenues, GAAP	$	208,023		$	233,494		$	216,385
Consolidated investment products revenues (1)		3,015			2,524			2,338
Investment management fees (2)		(9,798	)		(10,317	)		(9,514	)
Distribution and service fees (2)		(12,344	)		(13,688	)		(12,520	)
Total revenues, as adjusted	$	188,896		$	212,013		$	196,689

Operating Expenses
Total operating expenses, GAAP	$	168,208		$	182,773		$	169,325
Consolidated investment products expenses (1)		(3,506	)		(2,923	)		(496	)
Distributions to minority interests (3)		(799	)		—			(815	)
Distribution and other asset-based expenses (4)		(22,142	)		(24,005	)		(22,034	)
Amortization of intangible assets (5)		(12,944	)		(12,883	)		(12,945	)
Restructuring expense (6)		—			—			(693	)
Deferred compensation and related investments (7)		(167	)		65			(328	)
Acquisition and integration expenses (8)		(3,013	)		(2,553	)		(454	)
Other (9)		2,136			(2,914	)		160
Total operating expenses, as adjusted	$	127,773		$	137,560		$	131,720