Virtus Investment Partners (VRTS) investor relations material

Executive summary

• Assets under management (AUM) increased to $152.2 billion, up 2% sequentially, driven by market performance and institutional inflows, despite continued net outflows in quality-oriented equities.

• Total sales rose 5% to $6.1 billion, with record institutional sales and strong ETF and alternatives growth; alternatives saw a $1.0 billion boost from a large institutional inflow.

• Net outflows improved to $5.6 billion from $8.4 billion last quarter, with positive net flows in alternatives, fixed income, and multi-asset strategies.

• Completed the acquisition of a majority stake in Keystone National Group, expanding private market offerings and adding $2.3 billion in AUM.

• Continued expansion of product offerings, including new actively managed ETFs, and ongoing return of capital to shareholders while reducing debt.

Financial highlights

• GAAP revenues were $201.4 million, down 4.4% year-over-year but up 1% sequentially; adjusted revenues were $183.6 million, up 1% sequentially.

• Operating income as adjusted was $47.9 million, up from $43.8 million sequentially; GAAP operating income was $27.3 million.

• Operating margin as adjusted was 26.1%, or 28.2% excluding a discrete non-cash expense; GAAP margin was 13.6%.

• Adjusted EPS was $5.54, up from $5.38, and $5.97 excluding the discrete item; diluted EPS was $6.68 (GAAP) and $8.00 year-over-year.

• Net income attributable to shareholders was $45.3 million for Q2 2026, up 6.9% year-over-year.

Outlook and guidance

• U.S. retail fund sales and net flows in July are tracking more favorably than Q2, with ETF net flows continuing at a similar pace.

• Institutional sales pipeline is the strongest in a year, diversified across managers and strategies.

• Expectation to issue a new CLO later in the year, typically sized at $300–$400 million.

• Effective tax rate expected in the 13–14% range for upcoming quarters.

• Management expects continued pressure on AUM from net outflows, partially offset by positive market performance and contributions from acquisitions.