Virtus Investment Partners (VRTS) has wrapped up FY 2025 with Q4 revenue of US$208.0 million and basic EPS of US$5.25, alongside trailing 12 month revenue of US$852.9 million and EPS of US$20.27, setting a clear marker for its recent performance. Over the past year, the company has seen revenue shift from US$906.9 million to US$852.9 million on a trailing basis. At the same time, trailing 12 month net income moved from US$121.7 million to US$138.4 million, reflecting the mix of pressure and support running through the income statement. With net profit margins described at 16.2% versus 13.4% a year earlier, investors are likely to focus on how sustainable this margin profile looks against the latest earnings print.

See our full analysis for Virtus Investment Partners.

With the headline numbers on the table, the next step is to set these results against the most common narratives around Virtus Investment Partners to see which stories the data backs up and which ones get pushed into question.

16.2% Margin Against Softer Revenue

• Trailing net profit margin sits at 16.2% compared with 13.4% a year earlier, even though trailing 12 month revenue moved from US$906.9 million to US$852.9 million over the same comparison period.
• What stands out for the generally positive narrative is that higher profitability coexists with revenue pressure. Trailing net income of US$138.4 million is higher than the prior US$121.7 million, while the long run five year trend points to earnings declining about 4.5% per year. The recent 13.7% year over year earnings growth therefore looks more like a rebound inside a tougher multi year pattern than a clear uptrend.

AUM Outflows Versus 13.7% Earnings Growth

• Across FY 2025, quarterly net outflows totalled roughly US$10.8 billion, with outflows of US$2,979 million in Q1, US$3,947 million in Q2 and US$3,852 million in Q3, while trailing 12 month earnings increased 13.7% compared with the prior year.
• Bears often focus on asset managers losing money leaving the platform, and that concern shows up here because AUM declined from US$175,001 million at the start of FY 2025 to US$167,463 million by Q1 and US$169,325 million by Q3. Yet the earnings picture is more mixed, since trailing EPS of US$20.27 and net income of US$138.4 million both sit above last year’s US$121.7 million figure, which challenges a simple bearish story that outflows automatically translate into weaker profitability.

Low 6.8x P/E and DCF Fair Value Gap

• The shares trade on a trailing P/E of 6.8x at a price of US$140.29, while DCF fair value is stated at about US$242.90 and the peer and industry P/E averages sit in the low to mid 20s.
• Supporters of a bullish angle point to this wide valuation gap. The data gives them several talking points, because a 6.8x P/E and a price that is about 42% below the US$242.90 DCF fair value sit alongside trailing net profit margin of 16.2% and trailing 12 month net income of US$138.4 million. However, the same dataset also records a 4.5% per year decline in earnings over five years and a 6.84% dividend yield that is not well covered by free cash flow, which means the low multiple can also be read as the market pricing in those risks.

If you want to see how other investors are joining the dots between these figures and the story, take a look at Curious how numbers become stories that shape markets? Explore Community Narratives.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Virtus Investment Partners's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Virtus Investment Partners faces AUM outflows, a five year earnings decline of about 4.5% per year, and a dividend that is not well covered by free cash flow.

If those pressure points worry you, compare this situation with companies in our 86 resilient stocks with low risk scores that pair stronger downside protection with more resilient business characteristics before you commit fresh capital.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.