DIAMOND HILL INVESTMENT GROUP, INC. REPORTS RESULTS FOR SECOND QUARTER 2025 AND DECLARES QUARTERLY DIVIDEND
COLUMBUS, Ohio, July 29, 2025 /PRNewswire/ -- Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) today reported unaudited financial results for the second quarter of 2025.
The following are selected highlights for the quarter ended June 30, 2025:
Assets under management ("AUM") and assets under advisement ("AUA") combined were $31.9 billion, compared to $31.9 billion as of December 31, 2024, and $31.1 billion as of June 30, 2024.
Average AUM and AUA combined were $31.0 billion, compared to $31.1 billion for the second quarter of 2024.
Net client outflows were $644.0 million, compared to $229.0 million of net inflows for the second quarter of 2024.
Revenue was $36.0 million, compared to $36.7 million for the second quarter of 2024.
Net operating profit margin was 22%, compared to 33% for the second quarter of 2024.
Adjusted net operating profit margin1 was 30% for the second quarter of 2025 and 31% for the second quarter of 2024.
Investment income was $14.6 million, compared to investment loss of $0.7 million for the second quarter of 2024.
Net income attributable to common shareholders was $15.6 million, compared to $8.1 million for the second quarter of 2024.
Earnings per share attributable to common shareholders - diluted was $5.73, compared to $2.93 for the second quarter of 2024.
Adjusted earnings per share attributable to common shareholders - diluted2 was $2.86, compared to $2.88 for the second quarter of 2024.
The Company returned approximately $12.3 million to its shareholders - $8.3 million through the repurchase of 59,763 common shares and $4.0 million through a dividend of $1.50 per common share.
"Steep market volatility at the start of the quarter created opportunities for investors with a long-term discipline like ours," said Heather Brilliant, CEO. "We remain focused on building lasting value through consistent execution, disciplined capital allocation, and continued investment in areas of competitive strength. As part of this commitment, we are excited to launch our new fixed income strategy, the Diamond Hill Securitized Total Return Fund, which launched on July 1, 2025."
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1 Adjusts the financial measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP") for the impact of market movements on the deferred compensation liability and related economic hedges, and the impact of any consolidated funds. During the second quarter of 2025, the Diamond Hill Core Plus Bond Fund was consolidated. On June 30, 2025, the Company seeded the Diamond Hill Securitized Total Return Fund and consolidated it as of June 30, 2025. During the second quarter of 2024, no Proprietary Funds were consolidated. The "Proprietary Funds" consist of the Diamond Hill Funds, a series of open-end mutual funds, and the Diamond Hill Securitized Credit Fund, a closed-end registered investment company. The Proprietary Fund(s) consolidated during the applicable period are referred to as the "Consolidated Funds." See the reconciliation to the comparable GAAP financial measure at the end of this earnings release.
2 Adjusts the financial measure calculated in accordance with GAAP for the impact of the Consolidated Fund(s) and investment income related to certain other investments. See the reconciliation to the comparable GAAP financial measure at the end of this earnings release.
Capital Allocation:
The Company's board of directors approved the payment of a regular quarterly cash dividend of $1.50 per common share. The dividend will be paid on September 12, 2025, to the Company's shareholders of record as of the close of business on August 29, 2025.
Selected Income Statement Data
Three Months Ended June 30,
2025
2024
% Change
Revenue
$ 36,025,931
$ 36,661,333
(2) %
Compensation and related costs, excluding deferred compensation expense (benefit)
17,685,228
18,330,666
(4) %
Deferred compensation expense (benefit)
3,041,906
(869,135)
NM
Other expenses
7,533,733
7,067,191
7 %
Total operating expenses
28,260,867
24,528,722
15 %
Net operating income
7,765,064
12,132,611
(36) %
Investment income (loss), net
14,554,685
(654,591)
NM
Net income before taxes
22,319,749
11,478,020
94 %
Income tax expense
(6,161,321)
(3,352,180)
84 %
Net income
16,158,428
8,125,840
99 %
Net income attributable to redeemable noncontrolling interest
(587,851)
—
NM
Net income attributable to common shareholders
$ 15,570,577
$ 8,125,840
92 %
Earnings per share attributable to common shareholders - diluted
$ 5.73
$ 2.93
96 %
Weighted average shares outstanding - diluted
2,719,610
2,769,427
(2) %
Six Months Ended June 30,
2025
2024
% Change
Revenue
$ 73,142,141
$ 72,956,263
— %
Compensation and related costs, excluding deferred compensation expense
35,891,876
36,478,131
(2) %
Deferred compensation expense
2,077,251
2,321,228
(11) %
Other expenses
14,344,051
13,721,467
5 %
Total operating expenses
52,313,178
52,520,826
— %
Net operating income
20,828,963
20,435,437
2 %
Investment income, net
15,674,654
8,711,087
80 %
Net income before taxes
36,503,617
29,146,524
25 %
Income tax expense
(9,972,339)
(8,004,751)
25 %
Net income
26,531,278
21,141,773
25 %
Net income attributable to redeemable noncontrolling interest
(598,438)
—
NM
Net income attributable to common shareholders
$ 25,932,840
$ 21,141,773
23 %
Earnings per share attributable to common shareholders - diluted
$ 9.49
$ 7.57
25 %
Weighted average shares outstanding - diluted
2,734,009
2,793,133
(2) %
Selected Assets Under Management and Assets Under Advisement Data
Change in AUM and AUA
For the Three Months Ended June 30,
(in millions)
2025
2024
AUM at beginning of period
$ 29,792
$ 29,979
Net cash inflows (outflows)
Proprietary Funds
(146)
117
Separately managed accounts
(273)
(185)
Collective investment trusts
(256)
247
Other pooled vehicles
31
