The following are selected highlights for the quarter ended September 30, 2025:
Assets under management ("AUM") and assets under advisement ("AUA") combined were $32.4 billion, compared to $31.9 billion as of December 31, 2024, and $33.2 billion as of September 30, 2024.
Average AUM and AUA combined were $32.4 billion, compared to $32.4 billion for the third quarter of 2024.
Net client inflows were $41.0 million, compared to $22.0 million of net outflows for the third quarter of 2024.
Revenue was $37.4 million, compared to $39.0 million for the third quarter of 2024.
Net operating profit margin was 26%, for both the third quarter of 2025 and 2024, respectively.
Adjusted net operating profit margin1 was 32% for the third quarter of 2025 and 32% for the third quarter of 2024.
Investment income was $8.5 million, compared to investment income of $9.7 million for the third quarter of 2024.
Net income attributable to common shareholders was $13.6 million, compared to $14.6 million for the third quarter of 2024.
Earnings per share attributable to common shareholders - diluted was $4.99, compared to $5.35 for the third quarter of 2024.
Adjusted earnings per share attributable to common shareholders - diluted2 was $3.24, compared to $3.35 for the third quarter of 2024.
The Company returned approximately $6.7 million to its shareholders - $2.6 million through the repurchase of 18,871 common shares and $4.1 million through a dividend of $1.50 per common share.
"We are encouraged by the continued growth of our fixed income strategies, which added nearly $1 billion in net flows this quarter and $2 billion year-to-date," said Heather Brilliant, CEO. "Additionally, the conversion of our Large Cap Concentrated Fund to an ETF during the quarter highlights our commitment to delivering our investment capabilities through vehicles that best serve our clients."
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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 third quarter of 2025, the Diamond Hill Securitized Total Return Fund was consolidated. During the third 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 an exchange traded fund, and the Diamond Hill Securitized Credit Fund, a closed-end registered investment company. The Proprietary Fund(s) consolidated during the applicable period is 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 board of directors also approved a special dividend of $4.00 per share. Both the fourth quarter regular dividend and the special dividend will be paid on December 5, 2025, to the Company's shareholders of record as of the close of business on November 21, 2025. The Company expects 100% of the distributions to be classified as qualified dividends.
"We are pleased with our total capital return to shareholders this year, repurchasing nearly $14.5 million in shares year to date," said Heather Brilliant, CEO. "Additionally, our Q4 special dividend of $4.00 per share brings our total annual dividends to $10.00 per share, resulting in another $27.2 million returned to shareholders during 2025."
Selected Income Statement Data
Three Months EndedSeptember 30,
2025
2024
% Change
Revenue
$
37,402,519
$
39,018,232
(4) %
Compensation and related costs, excluding deferred compensationexpense
18,352,666
19,509,116
(6) %
Deferred compensation expense
2,051,506
2,250,168
(9) %
Other expenses
7,269,842
7,041,477
3 %
Total operating expenses
27,674,014
28,800,761
(4) %
Net operating income
9,728,505
10,217,471
(5) %
Investment income, net
8,493,730
9,668,961
(12) %
Net income before taxes
18,222,235
19,886,432
(8) %
Income tax expense
(4,656,802)
(5,241,839)
(11) %
Net income
13,565,433
14,644,593
(7) %
Net income attributable to redeemable noncontrolling interest
(14,822)
-
NM
Net income attributable to common shareholders
$
13,550,611
$
14,644,593
(7) %
Earnings per share attributable to common shareholders - diluted
$
4.99
$
5.35
(7) %
Weighted average shares outstanding - diluted
2,718,171
2,738,588
(1) %
Nine Months Ended September 30,
2025
2024
% Change
Revenue
$
110,544,660
$
111,974,495
(1) %
Compensation and related costs, excluding deferred compensationexpense
54,244,542
55,987,247
(3) %
Deferred compensation expense
4,128,757
4,571,396
(10) %
Other expenses
21,613,893
20,762,944
4 %
Total operating expenses
79,987,192
81,321,587
(2) %
Net operating income
30,557,468
30,652,908
(0) %
Investment income, net
24,168,384
18,380,048
31 %
Net income before taxes
54,725,852
49,032,956
12 %
Income tax expense
(14,629,141)
(13,246,590)
10 %
Net income
40,096,711
35,786,366
12 %
Net income attributable to redeemable noncontrolling interest
(613,260)
-
NM
Net income attributable to common shareholders
$
39,483,451
$
35,786,366
10 %
Earnings per share attributable to common shareholders - diluted
$
14.47
$
12.90
12 %
Weighted average shares outstanding - diluted
2,728,671
2,774,819
(2) %
Selected Assets Under Management and Assets Under Advisement Data
Change in AssetsUnder Management
For the Three MonthsEnded September 30,
(in millions)
2025
2024
AUM at beginning of period
$
30,071
$
29,291
Net cash inflows (outflows)
Proprietary Funds
171
423
Separately managed accounts
(227)
(313)
Collective investment trusts
