Westwood Holdings Group Inc (WHG) · Nov 5, 2026 · Earnings
In line — No published analyst consensus; revenue +9.4% YoY, diluted EPS -17.1%
Westwood’s third-quarter earnings show ETF and private-capital growth translating into higher revenue, but weaker operating leverage and severance reduced EPS.
Westwood is in the middle of shifting toward ETFs, private capital and energy-related strategies; the ETF platform had already surpassed $400 million in assets in the second quarter, and PWRX’s September launch was announced beforehand. The growth strategy is working at the revenue line. Third-quarter revenue rose to $26.6 million from $24.3 million a year earlier, with management pointing to ETF growth, private energy secondaries and private-capital distributions. 〔0〕
| Q3 2026 | Q3 2025 | Q2 2026 | |
|---|---|---|---|
| Total revenues (Income Statement) | $26.6M (+9.4%) | $24.3M | $25.3M |
| Net operating income (Income Statement) | $1.4M (-31.2%) | $2.0M | $2.1M |
| Income attributable to WHG (Income Statement) | $3.1M (-15.7%) | $3.7M | $1.5M |
| Diluted EPS (Income Statement) | $0.34 (-17.1%) | $0.41 | $0.17 |
| Economic EPS (Non-GAAP reconciliation) | $0.48 (-25.0%) | $0.64 | $0.33 |
| Dividends declared per share (Income Statement) | $0.15 | $0.15 | $0.15 |
The problem is operating leverage, not demand. Total expenses rose 13.0% year over year against 9.4% revenue growth, pushing operating income down to $1.4 million. Compensation increased by $2.3 million, professional services rose by $0.8 million, and management identified $1.7 million of one-time severance-related compensation.
Reported profit was helped by private-investment marks, which makes the quarter less clean than the headline revenue growth. The quarter included $2.9 million of unrealized appreciation on private investments, while net operating income declined. That means the newer growth engines are expanding the top line, but the underlying operating business has not yet converted that growth into higher recurring profitability.
The strategic progress is real but was largely an execution update, not a new change in direction. PWRX launched as planned, and the ETF platform reached more than $430 million at quarter-end. With no published analyst consensus available for this small-cap name, the cleanest benchmark is the prior-year quarter: revenue was better, but operating profit, GAAP EPS and Economic EPS were all worse.
Bottom line: Westwood is making progress in ETFs and private capital, but this quarter did not yet prove that growth is producing stronger recurring earnings. The story advances operationally, while profitability remains under pressure.
Q4 earnings report, expected February 2027
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