Virtus Investment Partners Stock Earnings Reports

Virtus reported Q1 2026 AUM of $149B (down from $159B) as net outflows and market performance pressured assets. Total sales rose 8% to $5.8B driven by stronger equity sales (up 26%) and growth in U.S. retail funds, retail separate accounts, global funds, and ETFs. Net outflows were $8.4B, concentrated in quality-oriented equity strategies and largely occurring in January–February with meaningful improvement in March and April. Fixed income and multi-asset flows were roughly breakeven; alternatives had modest outflows. The firm completed a strategic investment (56%) in Keystone National Group, adding $2.3B AUM and expanding private markets/private credit capabilities. Operating margin was 24% (30.3% ex-seasonal employment items); adjusted EPS was $5.38, down from prior quarter largely due to $1.26/sh of seasonal compensation costs. Fee rate rose to 41.9 bps; management expects ~43–45 bps in Q2 as Keystone contributes a full quarter. Cash was $137M with $200M undrawn revolver capacity; net debt was $311M (~1.1x EBITDA). Management highlighted product innovation (new ETFs), distribution wins for non-quality equity strategies, reopening of a previously closed SMidCap Core strategy, ongoing share repurchases ($10M), and continued focus on balancing growth investments, returns to shareholders, and leverage management. Guidance/forward commentary: expect Q2 effective tax rate ~14–15%, employment expense run-rate ~51–53% of revenues, and other operating expenses ~$31–33M per quarter (plus annual board equity grant in Q2).