WESTWOOD HOLDINGS GROUP INCWHG
WESTWOOD HOLDINGS GROUP INC Revenue Disclosure
Advisory Fee Revenues
Our advisory fees are generated by Westwood Management for managing client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and AUA and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended, based on a daily or monthly analysis of AUM for the stated period, or based on committed or invested capital with respect to private capital funds. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional investors, mutual funds, ETFs, intermediary separately managed accounts ("SMA"), model-delivery SMA and private capital funds.
Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) sub-advisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment
vehicles, including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.
Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our suite of investment strategies for institutional investors and wealth management accounts.
Arrangements with Performance-Based Obligations
A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time. Performance-based fees are paid after the performance obligation has been satisfied.
The revenue is based on future market performance and is subject to many factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.
Trust Fee Revenues
Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM, and are paid monthly and quarterly in arrears. We recognize trust fee revenues as services are rendered. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Consolidated Financial Statements contain no deferred fee revenues.
Revenue Disaggregated
The following table presents our revenue disaggregated by account type (in thousands).
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Advisory Fees: | ||||||||||||||||||||
| Institutional | $ | 42,173 | $ | 39,967 | $ | 37,738 | ||||||||||||||
| Mutual Funds & ETFs | 28,703 | 28,980 | 29,745 | |||||||||||||||||
| Wealth Management | 4,720 | 2,201 | 1,172 | |||||||||||||||||
| Trust Fees | 21,820 | 21,904 | 20,592 | |||||||||||||||||
| Other | 346 | 1,669 | 534 | |||||||||||||||||
| Total revenues | $ | 97,762 | $ | 94,721 | $ | 89,781 | ||||||||||||||
The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):
| Year Ended December 31, 2025 | Advisory | Trust | Performance-based | Other | Total | ||||||||||||||||||||||||
| Canada | $ | 791 | $ | — | $ | — | $ | — | $ | 791 | |||||||||||||||||||
| U.S. | 73,931 | 21,560 | 1,134 | 346 | 96,971 | ||||||||||||||||||||||||
| Total | $ | 74,722 | $ | 21,560 | $ | 1,134 | $ | 346 | $ | 97,762 | |||||||||||||||||||
| Year Ended December 31, 2024 | Advisory | Trust | Performance-based | Other | Total | ||||||||||||||||||||||||
| Canada | $ | 1,017 | $ | — | $ | — | $ | — | $ | 1,017 | |||||||||||||||||||
| U.S. | 68,738 | 21,422 | 1,875 | 1,669 | 93,704 | ||||||||||||||||||||||||
| Total | $ | 69,755 | $ | 21,422 | $ | 1,875 | $ | 1,669 | $ | 94,721 | |||||||||||||||||||
| Year Ended December 31, 2023 | Advisory | Trust | Performance-based | Other | Total | ||||||||||||||||||||||||
| Canada | $ | 1,105 | $ | — | $ | — | $ | — | $ | 1,105 | |||||||||||||||||||
| U.S. | 66,286 | 20,242 | 1,614 | 534 | 88,676 | ||||||||||||||||||||||||
| Total | $ | 67,391 | $ | 20,242 | $ | 1,614 | $ | 534 | $ | 89,781 | |||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 13, 2023 | |
| 2021 | Mar 4, 2022 | |
| 2020 | Mar 4, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.