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01/11 14:01
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals: positive elements include increased revenues, net income, and non-GAAP earnings, alongside new product launches and strategic market positioning. However, concerns such as institutional net outflows, market concentration risks, and economic uncertainties temper the outlook. The dividend announcement is neutral, lacking any increase. The Q&A indicates no major concerns but doesn't significantly alter sentiment. Overall, the balance of positive financial performance with strategic and market risks suggests a neutral stock price movement.
Total Revenues $24.3 million for Q3 2025, compared to $23.1 million in Q2 2025 and $23.7 million in Q3 2024. The increase was due to higher average assets under management.
Net Income $3.7 million or $0.41 per share in Q3 2025, compared to $1 million or $0.12 per share in Q2 2025 and $0.1 million in Q3 2024. The increase was driven by higher revenues and unrealized depreciation on private investments, partially offset by higher income taxes.
Non-GAAP Economic Earnings $5.7 million or $0.64 per share in Q3 2025, compared to $2.8 million or $0.32 per share in Q2 2025 and $1.1 million or $0.13 per share in Q3 2024. The increase was due to higher revenues and changes in the fair value of contingent consideration in 2024.
Assets Under Management (AUM) $17.3 billion at the end of Q3 2025, with net outflows of $0.7 billion and market appreciation of $0.7 billion during the quarter.
Assets Under Advisement $1 billion at the end of Q3 2025, with market appreciation of $30 million and net outflows of $3 million during the quarter.
Cash and Liquid Investments $39.2 million at the end of Q3 2025, with a debt-free balance sheet.
Enhanced Midstream Income ETF (MDST): Surpassed $150 million in AUM, maintaining an annualized indicated dividend yield exceeding 10%.
WEBs Sector ETFs: Launched 11 new sector ETFs applying defined volatility strategy to individual sectors within the S&P 500.
Income Opportunity Fund (WHGIX): Received a Morningstar Ratings upgrade to four stars.
Energy and Real Asset Strategies: Continued to lead in both gross and net sales in 2025.
Institutional Channel: Anticipates winning more mandates in SMidCap for defined contribution plans and expanding presence with public plans, OCIOs, and family offices.
Intermediary Channel: Private fundraising exceeded 2025 annual goal by 1.5x through September 30.
Cost Reduction: Reduced costs versus last year, with a trend expected to continue into 2026.
Distribution Channels: Year-to-date net sales improved by 17% versus last year and 57% versus 2023.
ETF Platform Expansion: MDST ETF accounted for approximately 30% of midstream product ETF flows in September.
Volatility-Managed ETFs: WEBs flagship ETFs (DVSP and DVQQ) outperformed their underlying ETFs (SPY and QQQ) by 636 and 726 basis points respectively in Q3.
Market Concentration Risk: Large-cap gains are highly concentrated in a few mega-cap stocks, which could pose risks if these stocks underperform or experience volatility.
Institutional Channel Net Outflows: The institutional channel experienced negative net flows this quarter, primarily due to sub-advisory business rebalancing, which could impact overall revenue.
Economic and Market Uncertainty: Below-trend growth, sticky inflation, and elevated market valuations concentrated in a few sectors create an uncertain economic environment.
Small-Cap Market Volatility: While small-cap stocks are becoming more attractive, they are inherently more volatile, which could pose risks to investment performance.
Operational Efficiency Challenges: Efforts to reduce costs and improve operational efficiencies are ongoing, but achieving these goals may face challenges, impacting profitability.
Regulatory and Compliance Risks: Forward-looking statements highlight potential risks from regulatory changes or compliance issues that could materially affect results.
Client Retention and Distribution Risks: While client retention goals are on track, any failure to maintain or expand distribution channels could impact future growth.
Net Outflows in Assets Under Management: Firm-wide assets under management experienced net outflows of $0.7 billion, which could impact revenue and financial stability.
Revenue Expectations: Anticipate winning more mandates in SMidCap for defined contribution plans, supported by the largest national consultants. Expect continued stability with existing clients and expansion with public plans, OCIOs, and single multifamily offices.
Market Trends: Undervalued segments, especially small-cap stocks and the broader value style, are becoming more attractive. Anticipate a shift in investment opportunities as markets evolve and investors rotate away from expensive segments.
Product Launches and Strategic Plans: WEBs Investments launched 11 new sector ETFs applying defined volatility strategies to individual sectors within the S&P 500. These ETFs aim to provide precise control over risk and sector exposure.
Operational Changes: Operational efficiencies are expected to underpin early wins in 2026. Evaluating paths to enhance services as the company moves into 2026.
Energy and Real Asset Strategies: Energy and real asset strategies continue to lead in gross and net sales for 2025. Enhanced midstream income ETF, MDST, continues to gain approvals from major national platforms.
Dividend Announcement: The Board of Directors approved a regular cash dividend of $0.15 per common share payable on January 2, 2026, to stockholders of record on December 1, 2025.
The earnings call presents mixed signals: positive elements include increased revenues, net income, and non-GAAP earnings, alongside new product launches and strategic market positioning. However, concerns such as institutional net outflows, market concentration risks, and economic uncertainties temper the outlook. The dividend announcement is neutral, lacking any increase. The Q&A indicates no major concerns but doesn't significantly alter sentiment. Overall, the balance of positive financial performance with strategic and market risks suggests a neutral stock price movement.
The earnings call reveals mixed signals. Financial performance shows a decline in net income and revenues, but the company achieved non-GAAP economic earnings and maintained a strong asset base. Market strategy highlights growth in SMID cap products and potential exponential growth in certain platforms, but market uncertainty and competitive pressures pose risks. The regular cash dividend is positive, but lack of share repurchase is neutral. Overall, the financial and strategic outlook is balanced by risks and uncertainties, leading to a neutral stock price prediction.
The earnings call highlights several concerns: declining revenues and net income, market uncertainties, competitive pressures, and regulatory issues. Although there are some positive elements, like a regular cash dividend and potential growth in certain areas, the overall financial performance is weak. The Q&A section reveals management's unclear responses and lack of specific strategies, which adds to the negative sentiment. The combination of these factors, along with the absence of a share repurchase program, suggests a negative stock price movement in the short term.
The earnings call highlights strong financial performance with increased revenues and AUM, successful ETF launches, and strategic initiatives like a joint venture partnership. Despite some outflows and market uncertainty, the company has a robust pipeline and a solid balance sheet. The Q&A indicates management's confidence in their initiatives and seed capital opportunities. The dividend and share repurchase program further support shareholder returns. These factors, combined with the positive sentiment from analysts, suggest a positive stock price movement over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
