Overview

• U.S. investment adviser reported Q1 revenue flat yr/yr, adjusted EPS declined

• Company attributed lower earnings to higher compensation and expansion costs

• Total AUM grew 1.1% yr/yr but fell 3.5% sequentially on net institutional outflows

Outlook

• Company expects compensation ratio to remain elevated as investments mature and contribute to revenue growth

• Silvercrest sees robust new business pipeline in Global and International Equity strategies

• Firm expects international expansion to support positive flows in 2026 and beyond

Result Drivers

• INSTITUTIONAL OUTFLOWS - Co said decrease in discretionary AUM was primarily due to net institutional outflows

• HIGHER COMPENSATION COSTS - Co cited increased compensation and benefits from merit-based raises, new hires, and higher bonus accruals as main drivers of expense growth

• STRATEGIC INVESTMENTS - Co said ongoing investments in talent, international expansion, and business development raised costs and kept compensation ratio elevated

Company press release: ID:nGNX6jTJgy

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$31.41 mln	$31.85 mln (2 Analysts)
Q1 Adjusted EPS	Miss	$0.12	$0.19 (2 Analysts)
Q1 Adjusted Net Income	Miss	$1.48 mln	$2.16 mln (2 Analysts)
Q1 Net Income		$533,000
Q1 Adjusted EBITDA	Miss	$3.71 mln	$4 mln (1 Analyst)
Q1 Adjusted EBITDA Margin		11.80%

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "hold."

• Wall Street's median 12-month price target for Silvercrest Asset Management Group Inc is $18.50, about 38.8% above its May 8 closing price of $13.33

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

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