Key Takeaways
- • Virtus Investment Partners (NYSE: VRTS) reported total assets under management of $141.4 billion at September 30, 2026, down from $152.2 billion in the prior quarter, driven by market performance and net outflows.
- • Net flows were ($6.1) billion for the quarter versus ($5.6) billion in the prior quarter, with outflows concentrated in quality-oriented equity strategies while ETFs and tender offer funds posted positive flows.
- • Total sales fell to $4.3 billion from $6.1 billion, with institutional sales of $1.1 billion versus $2.2 billion last quarter, which had included a large global listed real estate mandate.
- • Adjusted operating income rose to $51.8 million, a 28.7% margin, from $47.9 million and 26.1%, primarily on lower employment expenses; adjusted diluted EPS was $5.86 versus $5.54.
- • The company raised its quarterly dividend 2% to $2.45 per share, repurchased 64,666 shares for $10.0 million, and reduced net debt to $224 million, or 0.9x EBITDA.
Summary
Virtus Investment Partners, Inc. reported financial results for the three months ended September 30, 2026, according to its Business Wire release. Total assets under management stood at $141.4 billion, down from $152.2 billion at the end of the prior quarter. The company attributed the decline to market performance and net outflows across retail separate accounts, institutional accounts, U.S. retail funds and global funds, partly offset by positive net flows into exchange-traded funds and tender offer funds. Virtus also serviced $1.6 billion of other fee-earning assets not included in AUM.
Total sales were $4.3 billion, compared with $6.1 billion in the prior quarter. Institutional sales of $1.1 billion included a $0.4 billion collateralized loan obligation issuance, versus $2.2 billion last quarter, which had benefited from a large global listed real estate mandate. Retail separate account sales declined to $1.0 billion from $1.2 billion, primarily in intermediary-sold large and small/mid-cap strategies. Open-end fund sales fell 18% to $2.2 billion, including $0.4 billion of ETF sales. Net flows were ($6.1) billion versus ($5.6) billion previously. Institutional net flows were ($2.2) billion, retail separate account net flows improved to ($2.6) billion from ($3.1) billion on lower redemptions, and open-end fund net flows improved to ($1.3) billion from ($1.8) billion.
On a GAAP basis, operating income rose to $34.3 million from $27.3 million, as operating expenses fell 6% while revenues declined 2%, mainly on lower investment management fees. Net income attributable to Virtus was $3.26 per diluted share, including $0.74 of contingent consideration fair value gains, $0.45 of minority interest fair value adjustments, offset by ($1.08) of realized and unrealized investment losses and ($0.24) of restructuring costs. The effective tax rate rose to 34% from 16%, reflecting the swing from unrealized gains in the prior quarter to unrealized losses.
On an as-adjusted basis, revenues were $180.8 million, down 2% from $183.6 million, mainly on lower average AUM with the average fee rate essentially unchanged. Employment expenses fell to $95.5 million from $102.1 million, reflecting the prior quarter's discrete non-cash expense and lower incentive compensation. Adjusted operating income was $51.8 million. Cash and equivalents were $187.2 million at quarter-end, and gross debt declined to $411 million from $427 million after a $15 million revolver repayment. Management will discuss the results on a conference call on November 9, 2026, at 10 a.m. Eastern.
Total sales were $4.3 billion, compared with $6.1 billion in the prior quarter. Institutional sales of $1.1 billion included a $0.4 billion collateralized loan obligation issuance, versus $2.2 billion last quarter, which had benefited from a large global listed real estate mandate. Retail separate account sales declined to $1.0 billion from $1.2 billion, primarily in intermediary-sold large and small/mid-cap strategies. Open-end fund sales fell 18% to $2.2 billion, including $0.4 billion of ETF sales. Net flows were ($6.1) billion versus ($5.6) billion previously. Institutional net flows were ($2.2) billion, retail separate account net flows improved to ($2.6) billion from ($3.1) billion on lower redemptions, and open-end fund net flows improved to ($1.3) billion from ($1.8) billion.
On a GAAP basis, operating income rose to $34.3 million from $27.3 million, as operating expenses fell 6% while revenues declined 2%, mainly on lower investment management fees. Net income attributable to Virtus was $3.26 per diluted share, including $0.74 of contingent consideration fair value gains, $0.45 of minority interest fair value adjustments, offset by ($1.08) of realized and unrealized investment losses and ($0.24) of restructuring costs. The effective tax rate rose to 34% from 16%, reflecting the swing from unrealized gains in the prior quarter to unrealized losses.
On an as-adjusted basis, revenues were $180.8 million, down 2% from $183.6 million, mainly on lower average AUM with the average fee rate essentially unchanged. Employment expenses fell to $95.5 million from $102.1 million, reflecting the prior quarter's discrete non-cash expense and lower incentive compensation. Adjusted operating income was $51.8 million. Cash and equivalents were $187.2 million at quarter-end, and gross debt declined to $411 million from $427 million after a $15 million revolver repayment. Management will discuss the results on a conference call on November 9, 2026, at 10 a.m. Eastern.
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