Virtus Investment Partners, Inc. (NYSE:VRTS) shares edged lower on Friday after the asset manager posted fourth-quarter adjusted earnings that came in below expectations, despite delivering stronger-than-forecast revenue.
The stock was down 2.86% in pre-market trading following the results.
For the quarter ended December 31, 2025, Virtus reported adjusted earnings of $6.50 per share, falling short of the analyst consensus of $6.61. Revenue, however, reached $208 million, comfortably above expectations of $194.29 million.
Assets under management declined to $159.5 billion at the end of the quarter, down 9% from $175 billion a year earlier and 6% from $169.3 billion in the prior quarter. The drop reflected weaker market performance and continued net outflows across several strategies.
Net outflows totaled $8.1 billion during the quarter, more than double the $3.9 billion recorded in the previous period. Gross sales also softened, falling 15% quarter on quarter to $5.3 billion from $6.3 billion.
Adjusted operating income came in at $61.1 million, translating to a margin of 32.4%, compared with $65.0 million and a 33.0% margin in the third quarter. The sequential decline was largely driven by lower average assets under management, which slipped to $165.2 billion from $170.3 billion previously.
Capital allocation remained active during the quarter, with Virtus repurchasing 60,292 shares for $10 million and completing a $40 million minority investment in Crescent Cove.