Virtus Investment Partners, Inc. will revise definitions of certain non-GAAP financial measures starting Q1 2026 results to include tax benefits on goodwill and intangible amortization, previously excluded.
Key takeaways
Revision includes tax benefits in Non-GAAP effective tax rate, diluted EPS as adjusted, tax expense as adjusted, and net income as adjusted.
Revision does not impact revenues as adjusted, operating expenses as adjusted, operating income as adjusted, or operating margin as adjusted.
Reconciliations provided in Exhibit 99.1 for Q1 2024 through Q4 2025 and full years 2024-2025.
Revised non-GAAP effective tax rates lower: e.g., 18.2% vs 26.0% for Q1 2024; EPS higher: $6.02 vs $5.41.
Management states inclusion better reflects underlying performance due to acquisitions creating intangible tax assets.
Non-GAAP measures used for operational decisions, resource allocation, capital structure, and incentive compensation.