Silvercrest Asset Management Group (NASDAQ:SAMG) reported fourth-quarter and full-year 2025 results that reflected continued strategic investment spending alongside modest changes in assets under management (AUM) and revenue. Management emphasized that the firm is prioritizing long-term growth initiatives—particularly in global and international equity strategies and overseas distribution—while acknowledging that these investments are pressuring near-term earnings and profitability metrics.
Assets under management and organic flows
Chairman and CEO Rick Hough said Silvercrest’s discretionary AUM, which management described as the primary driver of the firm’s revenue, declined 1.2% in the fourth quarter to $24.0 billion from $24.3 billion. For the full year 2025, discretionary AUM increased 3% from $23.3 billion to $24.0 billion, which Hough attributed to supportive markets and organic net new client accounts.
Total AUM decreased 1.6% in the fourth quarter to $37.0 billion, but rose 2% year over year from $36.5 billion. Management noted that the increase in total AUM did not have a revenue effect because non-discretionary AUM is associated with a small portion of revenue.
Non-discretionary AUM reporting change planned
Hough said non-discretionary AUM contributes about 4% of total revenue and primarily consists of fixed-fee reporting and family office services. He added that non-discretionary assets have more than doubled over the past few years, which “artificially lowers” the firm’s apparent average basis points earned on AUM.
To address this, the company said it plans to adjust how it reports non-discretionary AUM in a future quarter. Management stated the change will “substantially lower” reported non-discretionary AUM on a one-time basis, without affecting revenue, and is intended to give investors a clearer view of the AUM and economics that drive the business.
Quarterly results and expense drivers
President Scott described fourth-quarter revenue of $32.0 million and a reported consolidated net loss of $0.1 million. Reported net loss attributable to Class A shareholders was approximately $0.1 million, or $0.01 per basic and diluted Class A share.
Scott said fourth-quarter expenses increased $2.8 million year over year, or 9.5%, primarily due to higher compensation and benefits and higher general and administrative (G&A) expenses. He cited the following drivers:
- Compensation and benefits: up $2.6 million, or 12.1%, due primarily to higher salaries and benefits from merit-based increases and new hires, along with a higher bonus accrual.
- G&A: up $0.2 million, or about 2.4%, mainly from higher professional fees and an adjustment to the bad debt reserve, partly offset by lower depreciation and amortization and lower portfolio and systems expense.
Adjusted EBITDA for the quarter was approximately $2.9 million, representing 8.9% of revenue. Adjusted net income was approximately $2.3 million, with adjusted EPS of $0.19 (basic) and $0.18 (diluted), based on the company’s definition and an assumed corporate tax rate of 26%.
Full-year 2025 performance and compensation ratio
For the full year, Scott said revenue increased $1.7 million year over year, or 1.3%, driven primarily by market appreciation in discretionary AUM and partially offset by net client outflows. Full-year expenses increased $10.0 million, or 9.4%, mainly due to compensation expense and G&A.
Compensation expense rose $7.3 million, or 9.5%, reflecting merit increases, new hires, and a higher bonus accrual, partially offset by lower equity-based compensation expense. G&A increased $2.7 million, or about 9.2%, due to higher professional fees, bad debt reserve, travel and entertainment, and occupancy-related costs, partly offset by lower depreciation and amortization and lower trade error expense.
Silvercrest posted full-year reported net income attributable to Class A shareholders of approximately $4.9 million, or $0.56 per basic and diluted share. Adjusted EBITDA was approximately $19.6 million, or 15.7% of revenue, and adjusted net income was approximately $11.8 million, with adjusted EPS of $1.91.
Hough highlighted that strategic investments—primarily in “intellectual capital and headcount”—have reduced earnings and adjusted EBITDA versus what he described as a steady-state business, but said the firm is pursuing these investments to support long-term priorities. The company also said it will continue to adjust its interim compensation ratio to match investments as long as it sees compelling organic growth opportunities.
For 2025, Hough said total compensation and benefits expense was $83.9 million, representing 67% of revenue, compared to $76.7 million, or 62% of revenue, in 2024. During Q&A, Scott added that the 2025 recurring cash compensation ratio was about 62%, “a few percentage points higher than 2024.” Management said the compensation ratio is expected to remain elevated for the foreseeable future as investments mature.
International expansion, product vehicles, and capital returns
Management pointed to growing emphasis on global and international equity strategies. In response to an analyst question, Hough said Silvercrest has “over $2 billion” across global and international strategies and described performance in those capabilities as “excellent.” He said the firm has expanded analyst resources over roughly the past two and a half years and is seeing strong interest from institutional consultants and allocators.
Hough also discussed international business development changes, including professionals in London and Australia, the creation of an Australian investment trust and a UCITS vehicle in Europe, and a new Dublin office. He said the firm expects regulatory approval to do business in Europe through its Dublin office to be completed within the second quarter, noting that the firm currently relies on reverse solicitation. Hough added that the firm recently returned from a two-week trip in Australia and referenced a seed investment from a large superannuation fund.
On capital allocation, management discussed share repurchases and employee equity awards. Hough said the company announced a $25 million share repurchase program in May 2025 and that, as of the end of 2025, Silvercrest had nearly completed that program and repurchased approximately $50.4 million worth of shares. Scott added that during the fourth quarter, the company repurchased about $7 million of Class A shares. Hough also said shareholders approved an increase in shares issuable under the firm’s equity incentive plan and that the company expects to begin awarding shares to help motivate employees during the growth phase. He said the company would continue to consider buybacks depending on the stock price and competing uses of capital, and reiterated that the firm also pays what he described as a high dividend.
On the balance sheet, Scott reported total assets of approximately $166.6 million at year-end 2025, compared to $194.4 million at the end of 2024. Cash and cash equivalents were $44.1 million versus $68.6 million, and borrowings totaled approximately $4.0 million. Total Class A stockholders’ equity was approximately $50.3 million.
About Silvercrest Asset Management Group (NASDAQ:SAMG)
Silvercrest Asset Management Group Inc, headquartered in New York City, is an independent registered investment adviser that specializes in delivering customized wealth and asset management solutions for high-net-worth individuals, family offices and institutional clients. Founded in 2002 by senior professionals from leading financial institutions, Silvercrest has built its reputation on a disciplined, research-driven investment process and a commitment to personalized client service.
The firm’s core offerings include discretionary and non-discretionary portfolio management across equities, fixed income, hedge funds and alternative investments.
