SAMG · Silvercrest Asset Management Group Inc.

Silvercrest's Q1 2026 results reflect strategic investments impacting near-term profitability amid anticipated headwinds. Revenue held steady at $31.4 million year-over-year, driven by stable average AUM of $36.4 billion, but total expenses rose 13.5% to $30.1 million, primarily from higher compensation and benefits ($21.1 million, up 12% due to merit increases, bonuses, equity compensation, and severance) and general/administrative costs (up 17.3% from professional fees, new Singapore office occupancy, and travel). This compressed GAAP net income to $0.5 million (1.7% margin) from $3.9 million (12.5%), with Adjusted EBITDA falling to $3.7 million (11.8% margin). Management attributes pressures to a major investment program in intellectual capital, headcount, and global expansion, including new Atlanta and Singapore offices, upcoming Dublin office, and dedicated teams in London and Australia. Discretionary AUM, key to revenue, declined 3.7% quarter-over-quarter to $23.1 billion on net institutional outflows, despite $81 million organic inflows from high-net-worth investors; total AUM dipped 3.5% QoQ to $35.7 billion on outflows and market depreciation, though up 1.1% YoY. A robust new business pipeline in Global/International Equity strategies and institutional consultant interest signals potential flow reversal. Compensation ratio remains elevated at 67.2% of revenue to support growth, with balance sheet liquidity at $11.6 million cash and $46.9 million equity backing initiatives. The $0.21 quarterly dividend underscores capital return commitment despite softer results.