PetMed Express, Inc. Announces Delay in Fourth Quarter and Fiscal Year End Earnings Release and Conference Call
The Company anticipates that it will issue the earnings release, hold the related conference call, and file its Annual Report on Form 10-K as soon as possible, but no later than June 16, 2025.
About PetMed Express, Inc.
Founded in 1996, PetMeds is a leader in pioneering the digital pet pharmacy industry. As a national online retailer, PetMeds.com and PetCareRx.com are top choices for delivering preventive and chronic symptom prescriptions and OTC medications and products through their thousands of veterinary partners and a loyal customer base. Leveraging telehealth and insurance partnerships, they offer value and convenience to pet families at every stage of their pets' lives, whether dogs, cats, or horses. PetMeds and PetCareRx provide a comprehensive range of medications, food products, and essential supplies through their websites, www.PetMeds.com and www.PetCareRx.com.
Investor Contact:
ICR, LLCJohn Mills(646) 277-1254Reed Anderson(646) 277-1260investor@petmeds.comSign in to access your portfolio
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Virtus Investment Partners Announces Financial Results for Second Quarter 2025
Earnings Per Share - Diluted of $6.12; Earnings Per Share - Diluted, as Adjusted, of $6.25 Total Sales of $5.6B; Net Flows of ($3.9B); Assets Under Management of $170.7B HARTFORD, Conn., July 25, 2025--(BUSINESS WIRE)--Virtus Investment Partners, Inc. (NYSE: VRTS) today reported financial results for the three months ended June 30, 2025. Financial Highlights (Unaudited) (in millions, except per share data or as noted) Three Months Ended Three Months Ended 6/30/2025 6/30/2024 Change 3/31/2025 Change U.S. GAAP Financial Measures Revenues $ 210.5 $ 224.4 (6 %) $ 217.9 (3 %) Operating expenses $ 165.3 $ 180.2 (8 %) $ 181.3 (9 %) Operating income (loss) $ 45.2 $ 44.2 2 % $ 36.6 23 % Operating margin 21.5 % 19.7 % 16.8 % Net income (loss) attributable to Virtus Investment Partners, Inc. $ 42.4 $ 17.6 141 % $ 28.6 48 % Earnings (loss) per share - diluted $ 6.12 $ 2.43 152 % $ 4.05 51 % Weighted average shares outstanding - diluted 6.922 7.242 (4 %) 7.073 (2 %) Non-GAAP Financial Measures (1) Revenues, as adjusted $ 191.0 $ 203.0 (6 %) $ 197.6 (3 %) Operating expenses, as adjusted $ 131.2 $ 137.0 (4 %) $ 143.0 (8 %) Operating income (loss), as adjusted $ 59.8 $ 66.0 (9 %) $ 54.6 10 % Operating margin, as adjusted 31.3 % 32.5 % 27.6 % Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted $ 43.3 $ 47.3 (8 %) $ 40.5 7 % Earnings (loss) per share - diluted, as adjusted $ 6.25 $ 6.53 (4 %) $ 5.73 9 % (1) See the information beginning on page 10 for reconciliations to the most directly comparable U.S. GAAP measures and other important disclosures Earnings Summary The company presents U.S. GAAP and non-GAAP earnings information in this release. Management believes that the non-GAAP financial measures presented reflect the company's operating results from providing investment management and related services to individuals and institutions and uses these measures to evaluate financial performance. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Non-GAAP information and reconciliations to the most comparable U.S. GAAP measures can be found beginning on page 10 of this earnings release. Assets Under Management and Asset Flows (in billions) Three Months Ended Three Months Ended 6/30/2025 6/30/2024 Change 3/31/2025 Change Ending total assets under management $ 170.7 $ 173.6 (2 %) $ 167.5 2 % Average total assets under management $ 167.0 $ 175.2 (5 %) $ 173.6 (4 %) Total sales $ 5.6 $ 6.1 (9 %) $ 6.2 (11 %) Net flows $ (3.9 ) $ (2.6 ) 50 % $ (3.0 ) 32 % Total assets under management of $170.7 billion at June 30, 2025 increased sequentially from $167.5 billion due to market performance and positive net flows in exchange-traded funds, partially offset by net outflows in other products. In addition, the company provided services to $1.8 billion of other fee-earning assets that are not included in assets under management. Total sales of $5.6 billion compared with $6.2 billion in the prior quarter. Institutional sales of $1.3 billion compared with $1.5 billion as higher sales of alternative strategies were offset by lower fixed income and global equities. Retail separate account sales of $1.5 billion declined from $1.7 billion primarily due to lower small/mid-cap equity. Open-end fund sales of $2.8 billion compared with $3.0 billion as higher sales of large-cap and international were offset by other strategies. Net flows of ($3.9) billion compared with ($3.0) billion in the prior quarter. Institutional net flows of ($2.2) billion compared with ($1.2) billion due to a higher level of redemptions primarily in large-cap growth. Retail separate account net flows of ($0.8) billion compared with ($0.7) billion with net outflows led by small/mid-cap strategies. Open-end fund net flows of ($1.0) billion were essentially unchanged from the prior quarter and were largely due to equity strategies. GAAP Results Operating income of $45.2 million increased from $36.6 million in the prior quarter reflecting a 9% reduction in operating expenses, partially offset by a 3% decline in revenues due to lower average assets under management. The decrease in operating expenses was primarily due to lower employment expenses which included seasonally higher expenses in the prior quarter, and a decrease in fair value of contingent consideration. Net income attributable to Virtus Investment Partners, Inc. of $6.12 per diluted share included $0.50 and $0.32 of fair value adjustments to minority interests and contingent consideration, respectively. Net income per diluted share of $4.05 in the prior quarter included ($0.94) of realized and unrealized losses on investments partially offset by $0.35 of fair value adjustments to minority interests. The effective tax rate of 22% decreased from 31% in the prior quarter, primarily reflecting a decrease in income tax valuation allowances for net unrealized and realized losses compared to the prior quarter. Non-GAAP Results Revenues, as adjusted, of $191.0 million decreased 3% from $197.6 million in the prior quarter primarily due to a 4% decrease in average assets under management. Employment expenses, as adjusted, of $97.2 million decreased from $109.4 million due to prior quarter seasonal expenses and lower variable incentive compensation. Other operating expenses, as adjusted, of $32.0 million increased from $31.3 million due to the $0.9 million annual equity grant to the Board of Directors. Operating income, as adjusted, of $59.8 million and the related margin of 31.3% increased from $54.6 million and 27.6%, respectively, primarily due to the prior quarter seasonal expenses. Net income attributable to Virtus Investment Partners, Inc., as adjusted, per diluted share was $6.25, a 9% increase from $5.73 in the prior quarter. The increase primarily reflected the impact of prior quarter seasonal employment expenses. The effective tax rate, as adjusted, of 26% was essentially unchanged from the prior quarter. Select Balance Sheet Items and Metrics (Unaudited) (in millions) As of As of Select Balance Sheet Items 6/30/2025 6/30/2024 Change 3/31/2025 Change Cash and cash equivalents $ 172.2 $ 183.0 (6 %) $ 135.4 27 % Gross debt (1) $ 234.7 $ 252.4 (7 %) $ 235.4 — % Contingent consideration (2) $ 37.4 $ 63.4 (41 %) $ 40.4 (7 %) Redeemable noncontrolling interests (3) $ 56.3 $ 84.7 (34 %) $ 59.0 (5 %) Total equity exc. noncontrolling interests $ 896.4 $ 868.7 3 % $ 893.7 — % Other Metrics Working capital (4) $ 144.0 $ 143.0 1 % $ 137.2 5 % Net debt (cash) (5) $ 62.5 $ 69.4 (11 %) $ 100.0 (38 %) (1) Excludes deferred financing costs of $3.4 million, $4.8 million, and $3.7 million, as of June 30, 2025, June 30, 2024, and March 31, 2025, respectively (2) Represents estimated revenue participation and other contingent payments (3) Excludes redeemable noncontrolling interests of consolidated investment products of $66.8 million, $44.7 million, and $61.6 million as of June 30, 2025, June 30, 2024, and March 31, 2025, respectively (4) Defined as cash and cash equivalents plus accounts receivable, net, and deferred compensation related investments less accrued compensation and benefits (excluding those of minority interests), accounts payable and accrued liabilities, dividends payable, as well as debt principal payments and revenue participation obligations due within 12 months (5) Defined as gross debt less cash and cash equivalents in accordance with the company's credit agreement Working capital of $144.0 million at June 30, 2025 increased from $137.2 million at March 31, 2025, as cash earnings more than offset return of capital. During the quarter, the company repurchased 175,872 shares for $30.0 million. Gross debt at June 30, 2025 was $234.7 million. Net debt was $62.5 million, or 0.2x EBITDA. Conference Call and Investor Presentation Management will host an investor conference call and webcast on Friday, July 25, 2025, at 10 a.m. Eastern to discuss these financial results and related matters. The presentation that will accompany the conference call is available in the Investor Relations section of A replay of the call will be available in the Investor Relations section for at least one year. We routinely post important information for investors on the Investor Relations section of our website and may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. We may also use social media channels to communicate with our investors and the public about our company, our products and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document. About Virtus Investment Partners, Inc. Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) Three Months Ended Three Months Ended Six Months Ended 6/30/2025 6/30/2024 Change 3/31/2025 Change 6/30/2025 6/30/2024 Change Revenues Investment management fees $ 179,476 $ 191,652 (6 %) $ 186,091 (4 %) $ 365,567 $ 380,012 (4 %) Distribution and service fees 11,968 13,410 (11 %) 12,753 (6 %) 24,721 27,440 (10 %) Administration and shareholder service fees 18,048 18,308 (1 %) 18,007 — % 36,055 36,986 (3 %) Other income and fees 1,033 1,014 2 % 1,081 (4 %) 2,114 1,988 6 % Total revenues 210,525 224,384 (6 %) 217,932 (3 %) 428,457 446,426 (4 %) Operating Expenses Employment expenses 98,030 105,667 (7 %) 109,093 (10 %) 207,123 220,830 (6 %) Distribution and other asset-based expenses 21,975 23,695 (7 %) 22,896 (4 %) 44,871 48,043 (7 %) Other operating expenses 32,564 33,050 (1 %) 33,059 (1 %) 65,623 64,425 2 % Operating expenses of consolidated investment products 810 2,909 (72 %) 1,000 (19 %) 1,810 3,599 (50 %) Restructuring expense — 690 (100 %) — N/M — 1,487 (100 %) Change in fair value of contingent consideration (3,014 ) (3,300 ) (9 %) — N/M (3,014 ) (3,300 ) (9 %) Depreciation expense 2,006 2,270 (12 %) 2,345 (14 %) 4,351 4,298 1 % Amortization expense 12,944 15,198 (15 %) 12,944 — % 25,888 30,533 (15 %) Total operating expenses 165,315 180,179 (8 %) 181,337 (9 %) 346,652 369,915 (6 %) Operating Income (Loss) 45,210 44,205 2 % 36,595 24 % 81,805 76,511 7 % Other Income (Expense) Realized and unrealized gain (loss) on investments, net 3,971 (1,553 ) N/M (991 ) N/M 2,980 1,863 60 % Realized and unrealized gain (loss) of consolidated investment products, net (5,204 ) (12,936 ) (60 %) (7,649 ) (32 %) (12,853 ) (11,401 ) 13 % Other income (expense), net 1,137 597 90 % 998 14 % 2,135 1,147 86 % Total other income (expense), net (96 ) ... (13,892 ) (99 %) (7,642 ) (99 %) (7,738 ) (8,391 ) (8 %) Interest Income (Expense) Interest expense (4,582 ) (5,611 ) (18 %) (4,561 ) — % (9,143 ) (11,292 ) (19 %) Interest and dividend income 2,054 2,643 (22 %) 3,016 (32 %) 5,070 6,112 (17 %) Interest and dividend income of investments of consolidated investment products 46,037 52,385 (12 %) 47,553 (3 %) 93,590 103,500 (10 %) Interest expense of consolidated investment products (33,477 ) (41,960 ) (20 %) (34,559 ) (3 %) (68,036 ) (81,972 ) (17 %) Total interest income (expense), net 10,032 7,457 35 % 11,449 (12 %) 21,481 16,348 31 % Income (Loss) Before Income Taxes 55,146 37,770 46 % 40,402 36 % 95,548 84,468 13 % Income tax expense (benefit) 12,403 11,748 6 % 12,350 — % 24,753 20,579 20 % Net Income (Loss) 42,743 26,022 64 % 28,052 52 % 70,795 63,889 11 % Noncontrolling interests (370 ) (8,408 ) (96 %) 595 N/M 225 (16,417 ) N/M Net Income (Loss) Attributable to Virtus Investment Partners, Inc. $ 42,373 $ 17,614 141 % $ 28,647 48 % $ 71,020 $ 47,472 50 % Earnings (Loss) Per Share - Basic $ 6.18 $ 2.47 150 % $ 4.12 50 % $ 10.29 $ 6.66 55 % Earnings (Loss) Per Share - Diluted $ 6.12 $ 2.43 152 % $ 4.05 51 % $ 10.15 $ 6.54 55 % Cash Dividends Declared Per Common Share $ 2.25 $ 1.90 18 % $ 2.25 — % $ 4.50 $ 3.80 18 % Weighted Average Shares Outstanding - Basic 6,855 7,127 (4 %) 6,955 (1 %) 6,905 7,123 (3 %) Weighted Average Shares Outstanding - Diluted 6,922 7,242 (4 %) 7,073 (2 %) 6,997 7,264 (4 %) N/M - Not Meaningful Assets Under Management - Product and Asset Class (in millions) Three Months Ended 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 By Product (period end): Open-End Funds (1) $ 55,852 $ 58,100 $ 56,073 $ 53,608 $ 55,653 Closed-End Funds 9,915 10,432 10,225 10,273 10,481 Retail Separate Accounts (2) 45,672 50,610 49,536 46,920 47,445 Institutional Accounts (3) 62,146 64,600 59,167 56,662 57,131 Total $ 173,585 $ 183,742 $ 175,001 $ 167,463 $ 170,710 By Product (average) (4) Open-End Funds (1) $ 56,692 $ 56,731 $ 57,905 $ 56,104 $ 53,742 Closed-End Funds 9,894 10,159 10,452 10,288 10,183 Retail Separate Accounts (2) 46,816 45,672 50,610 49,321 46,637 Institutional Accounts (3) 61,773 63,428 63,121 57,877 56,397 Total $ 175,175 $ 175,990 $ 182,088 $ 173,590 $ 166,959 By Asset Class (period end): Equity $ 99,224 $ 106,784 $ 100,792 $ 93,624 $ 96,232 Fixed Income 36,970 39,014 37,696 37,930 38,594 Multi-Asset (5) 21,060 21,619 21,174 20,834 21,430 Alternatives (6) 16,331 16,325 15,339 15,075 14,454 Total $ 173,585 $ 183,742 $ 175,001 $ 167,463 $ 170,710 Assets Under Management - Average Management Fees Earned (7) (in basis points) Three Months Ended 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 By Product: Open-End Funds (1) 50.9 49.7 49.5 47.8 46.7 Closed-End Funds 58.6 58.5 58.8 58.5 58.6 Retail Separate Accounts (2) 43.3 43.7 42.6 42.9 42.9 Institutional Accounts (3)(8) 30.7 31.0 31.9 31.8 31.8 All Products (8) 42.2 41.9 42.0 41.7 41.3 (1) Represents assets under management of U.S. retail funds, global funds, and exchange-traded funds (2) Includes investment models provided to managed account sponsors (3) Represents assets under management of institutional separate and commingled accounts including structured products (4) Calculated according to revenue earning basis that includes average daily, weekly, monthly beginning balance, monthly ending balance, or quarter beginning and ending balance, as well as quarter beginning or ending spot balance (5) Consists of multi-asset offerings not included in equity, fixed income, and alternatives (6) Consists of real estate securities, managed futures, event-driven, infrastructure, and other strategies (7) Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude the impact of consolidated investment products and are net of revenue-related adjustments. Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed through to third-party client intermediaries for services to investors in sponsored investment products (8) Includes performance-related fees, in basis points, earned during the three months ended as follows: 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Institutional Accounts 0.3 0.4 1.0 0.2 0.7 All Products 0.1 0.1 0.3 0.1 0.2 Assets Under Management - Asset Flows by Product (in millions) Three Months Ended Six Months Ended 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 6/30/2024 6/30/2025 Open-End Funds (1) Beginning balance $ 57,818 $ 55,852 $ 58,100 $ 56,073 $ 53,608 $ 56,062 $ 56,073 Inflows 2,777 3,118 3,049 3,038 2,825 6,253 5,863 Outflows (4,120 ) (4,143 ) (4,165 ) (4,110 ) (3,806 ) (8,224 ) (7,916 ) Net flows (1,343 ) (1,025 ) (1,116 ) (1,072 ) (981 ) (1,971 ) (2,053 ) Market performance (480 ) 3,410 (541 ) (1,250 ) 3,211 2,080 1,961 Other (2) (143 ) (137 ) (370 ) (143 ) (185 ) (319 ) (328 ) Ending balance $ 55,852 $ 58,100 $ 56,073 $ 53,608 $ 55,653 $ 55,852 $ 55,653 Closed-End Funds Beginning balance $ 10,064 $ 9,915 $ 10,432 $ 10,225 $ 10,273 $ 10,026 $ 10,225 Inflows — — 1 5 4 — 9 Outflows (41 ) — — (40 ) (2 ) (41 ) (42 ) Net flows (41 ) — 1 (35 ) 2 (41 ) (33 ) Market performance 83 845 (55 ) 257 378 322 635 Other (2) (191 ) (328 ) (153 ) (174 ) (172 ) (392 ) (346 ) Ending balance $ 9,915 $ 10,432 $ 10,225 $ 10,273 $ 10,481 $ 9,915 $ 10,481 Retail Separate Accounts (3) Beginning balance $ 46,816 $ 45,672 $ 50,610 $ 49,536 $ 46,920 $ 43,202 $ 49,536 Inflows 2,172 2,260 1,816 1,742 1,468 4,545 3,210 Outflows (1,688 ) (1,829 ) (1,745 ) (2,410 ) (2,264 ) (3,383 ) (4,674 ) Net flows 484 431 71 (668 ) (796 ) 1,162 (1,464 ) Market performance (1,631 ) 4,507 (1,145 ) (1,947 ) 1,322 1,305 (625 ) Other (2) 3 — — (1 ) (1 ) 3 (2 ) Ending balance $ 45,672 $ 50,610 $ 49,536 $ 46,920 $ 47,445 $ 45,672 $ 47,445 Institutional Accounts (4) Beginning balance $ 64,613 $ 62,146 $ 64,600 $ 59,167 $ 56,662 $ 62,969 $ 59,167 Inflows 1,188 1,219 1,574 1,455 1,283 2,922 2,738 Outflows (2,913 ) (2,349 ) (5,376 ) (2,659 ) (3,455 ) (5,935 ) (6,114 ) Net flows (1,725 ) (1,130 ) (3,802 ) (1,204 ) (2,172 ) (3,013 ) (3,376 ) Market performance (549 ) 3,790 (1,141 ) (1,170 ) 2,844 2,452 1,674 Other (2) (193 ) (206 ) (490 ) (131 ) (203 ) (262 ) (334 ) Ending balance $ 62,146 $ 64,600 $ 59,167 $ 56,662 $ 57,131 $ 62,146 $ 57,131 Total Beginning balance $ 179,311 $ 173,585 $ 183,742 $ 175,001 $ 167,463 $ 172,259 $ 175,001 Inflows 6,137 6,597 6,440 6,240 5,580 13,720 11,820 Outflows (8,762 ) (8,321 ) (11,286 ) (9,219 ) (9,527 ) (17,583 ) (18,746 ) Net flows (2,625 ) (1,724 ) (4,846 ) (2,979 ) (3,947 ) (3,863 ) (6,926 ) Market performance (2,577 ) 12,552 (2,882 ) (4,110 ) 7,755 6,159 3,645 Other (2) (524 ) (671 ) (1,013 ) (449 ) (561 ) (970 ) (1,010 ) Ending balance $ 173,585 $ 183,742 $ 175,001 $ 167,463 $ 170,710 $ 173,585 $ 170,710 (1) Represents assets under management of U.S. retail funds, global funds and exchange-traded funds (2) Represents open-end and closed-end fund distributions net of reinvestments, the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products, and the use of leverage (3) Includes investment models provided to managed account sponsors (4) Represents assets under management of institutional separate and commingled accounts including structured products Non-GAAP Information and Reconciliations (in thousands except per share data) The non-GAAP financial measures included in this release differ from financial measures determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earnings generated from providing investment management and related services. Management uses these measures to evaluate the company's financial performance and operational decision-making. Management believes that these non-GAAP financial measures, when presented together with directly comparable U.S. GAAP measures, are useful to investors and other interested parties to provide additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management. Please see the Notes to Reconciliations on page 13 for additional information on how these measures reflect the company's operating results. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Also, the non-GAAP financial measures referenced in this release may not be comparable to the similarly titled measures used by other companies. The following are reconciliations and related notes of the most directly comparable U.S. GAAP measure to each non-GAAP measure: Three Months Ended Revenues 6/30/2025 6/30/2024 3/31/2025 Total revenues, GAAP $ 210,525 $ 224,384 $ 217,932 Consolidated investment products revenues (1) 2,435 2,326 2,575 Investment management fees (2) (10,006 ) (10,282 ) (10,140 ) Distribution and service fees (2) (11,969 ) (13,413 ) (12,756 ) Total revenues, as adjusted $ 190,985 $ 203,015 $ 197,611 Operating Expenses Total operating expenses, GAAP $ 165,315 $ 180,179 $ 181,337 Consolidated investment products expenses (1) (810 ) (2,909 ) (1,000 ) Distributions to minority interests (3) (745 ) — 193 Distribution and other asset-based expenses (4) (21,975 ) (23,695 ) (22,896 ) Amortization of intangible assets (5) (12,944 ) (15,198 ) (12,944 ) Restructuring expense (6) — (690 ) — Deferred compensation and related investments (7) (531 ) 36 107 Acquisition and integration expenses (8) 2,579 2,201 (417 ) Other (9) 325 (2,907 ) (1,359 ) Total operating expenses, as adjusted $ 131,214 $ 137,017 $ 143,021 Three Months Ended Operating Income (Loss) 6/30/2025 6/30/2024 3/31/2025 Operating income (loss), GAAP $ 45,210 $ 44,205 $ 36,595 Consolidated investment products (earnings) losses (1) 3,245 5,235 3,575 Distributions to minority interests (3) 745 — (193 ) Amortization of intangible assets (5) 12,944 15,198 12,944 Restructuring expense (6) — 690 — Deferred compensation and related investments (7) 531 (36 ) (107 ) Acquisition and integration expenses (8) (2,579 ) (2,201 ) 417 Other (9) (325 ) 2,907 1,359 Operating income (loss), as adjusted $ 59,771 $ 65,998 $ 54,590 Operating margin, GAAP 21.5 % 19.7 % 16.8 % Operating margin, as adjusted 31.3 % 32.5 % 27.6 % Income (Loss) Before Taxes Income (loss) before taxes, GAAP $ 55,146 $ 37,770 $ 40,402 Consolidated investment products (earnings) losses (1) (1,808 ) 268 (18 ) Distributions to minority interests (3) 745 — (193 ) Amortization of intangible assets (5) 12,944 15,198 12,944 Restructuring expense (6) — 690 — Deferred compensation and related investments (7) (436 ) 545 613 Acquisition and integration expenses (8) (2,579 ) (2,201 ) 417 Other (9) (325 ) 2,907 1,359 Seed capital and CLO investments (gains) losses (10) (2,097 ) 12,175 1,478 Income (loss) before taxes, as adjusted $ 61,590 $ 67,352 $ 57,002 Income Tax Expense (Benefit) Income tax expense (benefit), GAAP $ 12,403 $ 11,748 $ 12,350 Tax impact of: Amortization of intangible assets (5) 3,404 3,973 3,419 Restructuring expense (6) — 180 — Deferred compensation and related investments (7) (115 ) 142 162 Acquisition and integration expenses (8) (678 ) (575 ) 110 Other (9) 43 1,415 (918 ) Seed capital and CLO investments (gains) losses (10) 1,142 725 (67 ) Income tax expense (benefit), as adjusted $ 16,199 $ 17,608 $ 15,056 Effective tax rate, GAAPA 22.5 % 31.1 % 30.6 % Effective tax rate, as adjustedB 26.3 % 26.1 % 26.4 % A Reflects income tax expense (benefit), GAAP, divided by income (loss) before taxes, GAAP B Reflects income tax expense (benefit), as adjusted, divided by income (loss) before taxes, as adjusted Three Months Ended Net Income (Loss) Attributable to Virtus Investment Partners, Inc. 6/30/2025 6/30/2024 3/31/2025 Net income (loss) attributable to Virtus Investment Partners, Inc. $ 42,373 $ 17,614 $ 28,647 Amortization of intangible assets, net of tax (5) 9,514 10,738 9,499 Restructuring expense, net of tax (6) — 510 — Deferred compensation and related investments (7) (321 ) 403 451 Acquisition and integration expenses, net of tax (8) (1,901 ) (1,626 ) 307 Other, net of tax (9) (3,136 ) 8,164 53 Seed capital and CLO investments (gains) losses, net of tax (10) (3,239 ) 11,450 1,545 Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted $ 43,290 $ 47,253 $ 40,502 Weighted average shares outstanding - diluted 6,922 7,242 7,073 Earnings (loss) per share - diluted, GAAP $ 6.12 $ 2.43 $ 4.05 Earnings (loss) per share - diluted, as adjusted $ 6.25 $ 6.53 $ 5.73 Administration and Shareholder Services Fees Administration and shareholder service fees, GAAP $ 18,048 $ 18,308 $ 18,007 Consolidated investment products fees (1) 25 23 22 Administration and shareholder service fees, as adjusted $ 18,073 $ 18,331 $ 18,029 Employment Expenses Employment expenses, GAAP $ 98,030 $ 105,667 $ 109,093 Distributions to minority interests (3) (745 ) — 193 Deferred compensation and related investments (7) (531 ) 36 107 Acquisition and integration expenses (8) (435 ) (1,099 ) (417 ) Other (9) 917 (1,134 ) 414 Employment expenses, as adjusted $ 97,236 $ 103,470 $ 109,390 Other Operating Expenses Other operating expenses, GAAP $ 32,564 $ 33,050 $ 33,059 Other (9) (592 ) (1,773 ) (1,773 ) Other operating expenses, as adjusted $ 31,972 $ 31,277 $ 31,286 Total Other Income (Expense), Net Total other income (expense), net GAAP $ (96 ) $ (13,892 ) $ (7,642 ) Consolidated investment products (1) 4,240 1,492 6,759 Deferred compensation and related investments (7) (945 ) 611 744 Seed capital and CLO investments (gains) losses (10) (2,097 ) 12,175 1,478 Total other income (expense), net as adjusted $ 1,102 $ 386 $ 1,339 Interest and Dividend Income Interest and dividend income, GAAP $ 2,054 $ 2,643 $ 3,016 Consolidated investment products (1) 3,267 3,966 2,642 Deferred compensation and related investments (7) (22 ) (30 ) (24 ) Interest and dividend income, as adjusted $ 5,299 $ 6,579 $ 5,634 Three Months Ended Total Noncontrolling Interests 6/30/2025 6/30/2024 3/31/2025 Total noncontrolling interests, GAAP $ (370 ) $ (8,408 ) $ 595 Consolidated investment products (1) 1,808 (268 ) 18 Distributions to minority interests (3) (745 ) — 193 Amortization of intangible assets (5) (26 ) (487 ) (26 ) Other (9) (2,768 ) 6,672 (2,224 ) Total noncontrolling interests, as adjusted $ (2,101 ) $ (2,491 ) $ (1,444 ) Notes to Reconciliations: 1. Consolidated investment products - Revenues and expenses generated by operating activities of mutual funds and collateralized loan obligations (CLOs) that are consolidated in the financial statements. Management believes that excluding these operating activities to reflect net revenues and expenses of the company prior to the consolidation of these products is consistent with the approach of reflecting its operating results from managing third-party client assets. Revenue Related 2. Investment management/Distribution and service fees - Each of these revenue line items is reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing company sponsored investment products and servicing the client. The amount of fees fluctuates each period, based on a predetermined percentage of the value of assets under management, and varies based on the type of investment product. The specific adjustments are as follows: Investment management fees - Based on specific agreements, the portion of investment management fees passed through to third-party intermediaries for services to investors in sponsored investment products. Distribution and service fees - Based on distinct arrangements, fees collected by the company then passed through to third-party client intermediaries for services to investors in sponsored investment products. The adjustment represents all of the company's distribution and service fees that are recorded as a separate line item on the condensed consolidated statements of operations. Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries. Expense Related 3. Distributions to minority interests - Earnings allocated and paid to certain limited partners of a majority owned manager are recorded as employment expenses in the financial statements. Management believes reclassifying these earnings distributions to noncontrolling interests to reflect these payments as non-operating earnings distributions aids in comparing the company's operating results with other asset managers that do not have majority-owned managers. 4. Distribution and other asset-based expenses - Primarily payments to third-party client intermediaries for providing services to investors in sponsored investment products. Management believes that making this adjustment aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries. 5. Amortization of intangible assets - Non-cash amortization expense or impairment expense, if any, attributable to acquisition-related intangible assets, including any portion that is allocated to noncontrolling interests. Management believes that making this adjustment aids in comparing the company's operating results with other asset management firms that have not engaged in acquisitions. 6. Restructuring expense - Certain non-recurring expenses associated with restructuring the business, including lease abandonment-related expenses and severance costs associated with staff reductions that are not reflective of ongoing earnings generation of the business. 7. Deferred compensation and related investments - Compensation expense, gains and losses (realized and unrealized), and interest and dividend income related to deferred compensation and related balance sheet investments. Market performance of deferred compensation plans and related investments can vary significantly from period to period. Management believes that making this adjustment aids in comparing the Company's operating results with prior periods. 8. Acquisition and integration expenses - Expenses that are directly related to acquisition and integration activities. Acquisition expenses include certain transaction related employment expenses, transaction closing costs, change in fair value of contingent consideration, certain professional fees, and financing fees. Integration expenses include costs incurred that are directly attributable to combining businesses, including compensation, restructuring and severance charges, professional fees, consulting fees, and other expenses. Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that have not engaged in acquisitions. Components of Acquisition and Integration Expenses for the respective periods are shown below: Three Months Ended Acquisition and Integration Expenses 6/30/2025 6/30/2024 3/31/2025 Employment expenses $ 435 $ 1,099 $ 417 Change in fair value of contingent consideration (3,014 ) (3,300 ) — Total Acquisition and Integration Expenses $ (2,579 ) $ (2,201 ) $ 417 9. Other - Certain expenses that are not reflective of the ongoing earnings generation of the business. Employment expenses and noncontrolling interests are adjusted to exclude fair value measurements of manager minority interest. Other operating expenses are adjusted for amortization of lease termination fees and transition related expense (benefit). Interest expense is adjusted to remove gains on early extinguishment of debt and the write-off of previously capitalized costs associated with the modification of debt. Income tax expense (benefit) items are adjusted for uncertain tax positions, changes in tax law, valuation allowances, and other unusual or infrequent items not related to current operating results to reflect a normalized effective rate. Management believes that making these adjustments aids in comparing the company's operating results with prior periods. Components of Other for the respective periods are shown below: Three Months Ended Other 6/30/2025 6/30/2024 3/31/2025 Employment expense fair value adjustments $ (917 ) $ 1,134 $ (414 ) Amortization of lease termination fees 592 1,773 1,773 Tax impact of adjustments 85 (760 ) (359 ) Other discrete tax adjustments (128 ) (655 ) 1,277 Manager minority interest fair value adjustments (2,768 ) 6,672 (2,224 ) Total Other $ (3,136 ) $ 8,164 $ 53 Seed Capital and CLO Related 10. Seed capital and CLO investments (gains) losses - Gains and losses (realized and unrealized) of seed capital and CLO investments. Gains and losses (realized and unrealized) generated by investments in seed capital and CLO investments can vary significantly from period to period and do not reflect the company's operating results from providing investment management and related services. Management believes that making this adjustment aids in comparing the company's operating results with prior periods and with other asset management firms that do not have meaningful seed capital and CLO investments. Definitions: Revenues, as adjusted, comprise the fee revenues paid by clients for investment management and related services. Revenues, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP, namely in excluding the impact of operating activities of consolidated investment products and reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing the product and servicing the client. Operating expenses, as adjusted, is calculated to reflect expenses from ongoing continuing operations. Operating expenses, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP expenses in that they exclude amortization or impairment, if any, of intangible assets, restructuring and severance, the effect of consolidated investment products, acquisition and integration-related expenses and certain other expenses that do not reflect the ongoing earnings generation of the business. Operating margin, as adjusted, is a metric used to evaluate efficiency represented by operating income, as adjusted, divided by revenues, as adjusted. Earnings (loss) per share, as adjusted, represent net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted, divided by weighted average shares outstanding, as adjusted, on either a basic or diluted basis. Forward-Looking Information This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by such forward-looking terminology as "expect," "estimate," "intent," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," "opportunity," "predict," "would," "potential," "future," "forecast," "guarantee," "assume," "likely," "target" or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions and projections about the company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans, and ability to borrow, for all future periods. All of our forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report on Form 10-K, as supplemented by our periodic filings with the Securities and Exchange Commission (the "SEC"), as well as the following risks and uncertainties resulting from: (i) reduction in our assets under management; (ii) financial or business risks from strategic transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) lack of sufficient capital on satisfactory terms; (vii) inability to attract and retain key personnel; (viii) challenges from competition; (ix) adverse developments related to unaffiliated subadvisers; (x) negative changes in key distribution relationships; (xi) interruptions, breaches, or failures of technology systems; (xii) loss on our investments; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or unanticipated tax obligations; (xvii) impediments from certain corporate governance provisions; (xviii) losses or costs not covered by insurance; (xix) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2024 Annual Report on Form 10-K, and our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity. Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the company's periodic reports filed with the SEC and are available on our website at under "Investor Relations." You are urged to carefully consider all such factors. The company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or affect any of the forward-looking statements contained in or accompanying this release, such statements or disclosures will be deemed to modify or supersede such statements in this release. View source version on Contacts Investor Relations Contact Sean Rourke(860) Media Relations Contact Laura Parsons(860) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Charter Announces Second Quarter 2025 Results
STAMFORD, Conn., July 25, 2025 /PRNewswire/ -- Charter Communications, Inc. (along with its subsidiaries, the "Company" or "Charter"), which operates the Spectrum brand, today reported financial and operating results for the three and six months ended June 30, 2025. Second quarter total Internet customers decreased by 117,000. As of June 30, 2025, Charter served 29.9 million Internet customers. Second quarter total mobile lines increased by 500,000. As of June 30, 2025, Charter served 10.9 million mobile lines. As of June 30, 2025, customer relationships totaled 31.2 million, excluding mobile-only relationships. Second quarter revenue of $13.8 billion grew by 0.6% year-over-year, driven by residential mobile service revenue growth of 24.9%, residential Internet revenue growth of 2.8% and other revenue growth of 18.9%. Net income attributable to Charter shareholders totaled $1.3 billion in the second quarter. Second quarter Adjusted EBITDA1 of $5.7 billion grew by 0.5% year-over-year. Second quarter capital expenditures totaled $2.9 billion and included $1.0 billion of line extensions. Second quarter net cash flows from operating activities totaled $3.6 billion, compared to $3.9 billion in the prior year. Second quarter free cash flow1 of $1.0 billion decreased from $1.3 billion in the prior year, primarily due to an unfavorable change in mobile device working capital and the timing of cash taxes and cash interest. During the second quarter, Charter purchased 4.5 million shares of Charter Class A common stock and Charter Communications Holdings, LLC ("Charter Holdings") common units totaling $1.7 billion. On May 16, 2025, Charter and Cox Communications announced that they had entered into a definitive agreement to combine their businesses, creating an industry leader in mobile and broadband communications services, and seamless video entertainment. "Our converged connectivity revenue grew by over 5% in the second quarter, with a long runway for growth," said Chris Winfrey, President and CEO of Charter. "Our seamless connectivity products offer the fastest speeds at the best price. And our strategic investments in network evolution and convergence, rural build, U.S.-based service and seamless entertainment innovation, will accelerate future customer and revenue growth." 1. Adjusted EBITDA and free cash flow are non-GAAP measures defined in the "Use of Adjusted EBITDA and Free Cash Flow Information" section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release. Key Operating Results Approximate as of June 30, 2025 (c)June 30, 2024 (c)Y/Y Change Footprint Estimated Passings (d)57,54056,1102.5 %Customer Relationships (e) Residential29,00629,615(2.1) % Small Business2,2012,222(1.0) % Total Customer Relationships31,20731,837(2.0) %Residential(154)(182)28 Small Business(8)3(11) Total Customer Relationships Quarterly Net Additions(162)(179)17Total Customer Relationship Penetration of Estimated Passings (f)54.2 %56.7 %(2.5) pptsMonthly Residential Revenue per Residential Customer (g)$ 122.86$ 120.771.7 % Monthly Small Business Revenue per Small Business Customer (h)$ 165.44$ 165.280.1 %Residential Customer Relationships Penetration One Product Penetration (i)47.2 %47.7 %(0.5) ppts Two Product Penetration (i)34.8 %33.2 %1.6 ppts Three or More Product Penetration (i)18.0 %19.2 %(1.2) ppts% Residential Non-Video Customer Relationships58.3 %57.1 %1.2 pptsInternet Residential27,86828,318(1.6) % Small Business2,0352,049(0.7) % Total Internet Customers29,90330,367(1.5) %Residential(111)(154)43 Small Business(6)5(11) Total Internet Quarterly Net Additions(117)(149)32Video Residential12,08712,718(5.0) % Small Business544591(8.0) % Total Video Customers12,63113,309(5.1) %Residential(73)(393)320 Small Business(7)(15)8 Total Video Quarterly Net Additions(80)(408)328Mobile Lines (j) Residential10,5428,53123.6 % Small Business35527827.7 % Total Mobile Lines10,8978,80923.7 %Residential479539(60) Small Business21183 Total Mobile Lines Quarterly Net Additions500557(57)Voice Residential5,1616,170(16.4) % Small Business1,2251,276(4.0) % Total Voice Customers6,3867,446(14.2) %Residential(211)(268)57 Small Business(9)(12)3 Total Voice Quarterly Net Additions(220)(280)60Mid-Market & Large Business (k) Mid-Market & Large Business Primary Service Units ("PSUs")3313126.1 % Mid-Market & Large Business Quarterly Net Additions743In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding. In September 2024, Spectrum launched a new and simplified pricing and packaging strategy that better utilizes its seamless connectivity and entertainment products to offer lower promotional and persistent bundled pricing to drive growth. Additionally, Spectrum announced new customer commitments focused on reliable connectivity, transparency, exceptional service and a focus on always improving. To fix any service disruptions quickly, Spectrum committed to dispatching a technician the same day, if the customer requests it prior to 5 p.m. If a customer needs a professional installation, a technician will be available the same or next day. Second quarter total Internet customers decreased by 117,000, compared to a decline of 149,000 during the second quarter of 2024, which included the impact of approximately 50,000 disconnects related to the end of the FCC's Affordable Connectivity Program subsidies in the second quarter of 2024. Spectrum Internet® delivers the fastest Internet speeds1 in the nation. Spectrum is evolving its connectivity network to offer symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in eight markets. In 2025, Spectrum launched 2x1 Gbps service in the same eight markets, completing Step 1 of Charter's network evolution initiative. Unlike competitors, Spectrum upgrades its network to serve all of its passings and can do so at a much lower cost. Spectrum Advanced WiFi provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy. Total video customers decreased by 80,000 in the second quarter of 2025, compared to a decline of 408,000 in the second quarter of 2024, with the improvement driven by new and simplified pricing and packaging launched in September 2024 and early benefits from the inclusion of programmers' streaming applications in Spectrum's expanded basic packages. As of June 30, 2025, Charter had 12.6 million total video customers. Spectrum TV Select video customers now receive up to approximately $75 per month (soon to be over $100 per month) of programmers' streaming application retail value at no extra cost, including the ad-supported versions of Disney+, ESPN+, HBO Max, Paramount+, Peacock, AMC+, ViX and Tennis Channel, with ESPN Unlimited, Hulu, Discovery+ and BET+ launching later this year. This programmer streaming application inclusion is part of Charter's broader video evolution strategy to provide flexible packages with enhanced value, whether through full packages with seamless entertainment, smaller video packages or a suite of a-la-carte programmers' streaming application options for broadband customers (which Charter launched in July 2025). During the second quarter of 2025, Charter added 500,000 total mobile lines, compared to growth of 557,000 during the second quarter of 2024. Spectrum MobileTM is available to all new and existing Spectrum Internet customers and offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum Mobile is central to Charter's converged network strategy to provide customers a differentiated connectivity experience with highly competitive, simple data plans and pricing. During the second quarter of 2025, total wireline voice customers declined by 220,000, compared to a decline of 280,000 in the second quarter of 2024. As of June 30, 2025, Charter had 6.4 million total wireline voice customers. Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the second quarter of 2025, Charter activated 123,000 subsidized rural passings. Within Charter's subsidized rural footprint, total customer relationships increased by 47,000 in the second quarter of 2025. 1. Based on Broadband Download Speed among the top 5 national providers in Opensignal USA: Fixed Broadband Experience Report — National View, May 2024. Based on Opensignal independent analysis of mean download speed. © 2025 Opensignal Limited. 2. Based on analysis by Spectrum of Ookla® Speedtest Intelligence® data for overall Mobile WiFi and Cellular performance for Q3-Q4 2024 in Spectrum's cable footprint. Ookla trademarks used under license and reprinted with permission. Second Quarter Financial Results(in millions)Three Months Ended June 30,20252024% Change Revenues:Internet $ 5,969$ 5,8062.8 % Video 3,4843,867(9.9) % Mobile service 92173724.9 % Voice 346350(0.8) % Residential revenue 10,72010,760(0.4) % Small business 1,0941,101(0.6) % Mid-market & large business 7427212.9 % Commercial revenue 1,8361,8220.8 % Advertising sales 371397(6.7) % Other 83970618.9 % Total Revenues $ 13,766$ 13,6850.6 % Net income attributable to Charter shareholders $ 1,301$ 1,2315.7 % Net income attributable to Charter shareholders margin 9.4 %9.0 % Adjusted EBITDA1 $ 5,693$ 5,6650.5 % Adjusted EBITDA margin 41.4 %41.4 % Capital expenditures $ 2,874$ 2,8530.7 % Net cash flows from operating activities $ 3,600$ 3,853(6.6) % Free cash flow1 $ 1,046$ 1,296(19.3) %All percentages are calculated using whole numbers. Minor differences may exist due to rounding. 1. Adjusted EBITDA and free cash flow are non-GAAP measures defined in the "Use of Adjusted EBITDA and Free Cash Flow Information" section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release. Revenues Second quarter revenue increased by 0.6% year-over-year to $13.8 billion, driven by growth in residential mobile service, residential Internet and other revenues, partly offset by lower residential video and advertising sales revenues. Residential revenue totaled $10.7 billion in the second quarter, a decrease of 0.4% year-over-year, driven by a year-over-year decline in residential customers of 2.1%, partly offset by a year-over-year increase in monthly residential revenue per residential customer of 1.7%. Second quarter 2025 monthly residential revenue per residential customer totaled $122.86, an increase of 1.7% compared to the prior year period. The growth was driven by promotional rate step-ups, rate adjustments and the growth of Spectrum Mobile, partly offset by a lower mix of video customer relationships, a higher mix of lower priced video packages within Charter's video customer base and $67 million of costs allocated to programmer streaming applications and netted within video revenue. Internet revenue grew by 2.8% year-over-year to $6.0 billion, driven by promotional rate step-ups, rate adjustments and a favorable change in bundled revenue allocation year-over-year, partly offset by a decline in Internet customers year-over-year. Video revenue totaled $3.5 billion in the second quarter, a decrease of 9.9% compared to the prior year period, driven by a decline in video customers during the last year, a higher mix of lower priced video packages within Charter's video customer base, $67 million of costs allocated to programmer streaming applications and netted within video revenue and more unfavorable bundled revenue allocation year-over-year, partly offset by promotional rate step-ups and video rate adjustments that pass through programmer rate increases. Second quarter mobile service revenue totaled $921 million, an increase of 24.9% year-over-year, driven by mobile line growth, partly offset by less favorable bundled revenue allocation year-over-year. Voice revenue decreased by 0.8% year-over-year to $346 million, driven by a decline in wireline voice customers, mostly offset by voice rate adjustments. Commercial revenue increased by 0.8% year-over-year to $1.8 billion, driven by mid-market and large business growth of 2.9% year-over-year, partly offset by a decline in small business revenue of 0.6%. Mid-market and large business revenue excluding wholesale increased by 3.5% year-over-year, mostly reflecting PSU growth. The year-over-year decrease in second quarter 2025 small business revenue was driven by a decline in small business customer relationships year-over-year. Second quarter advertising sales revenue of $371 million decreased by 6.7% compared to the year-ago quarter, primarily driven by lower core and political revenues. Excluding political revenue in both periods, advertising sales revenue decreased by 4.4% year-over-year due to a more challenged local and national advertising market, partly offset by higher advanced advertising revenue and better inventory selling capabilities. Other revenue totaled $839 million in the second quarter, an increase of 18.9% compared to the second quarter of 2024, primarily driven by higher mobile device sales and a one-time benefit. Operating Costs and Expenses Second quarter programming costs decreased by $219 million, or 8.8% as compared to the second quarter of 2024, reflecting fewer video customers, a higher mix of lower cost packages within Charter's video customer base and $67 million of costs allocated to programmer streaming applications and netted within video revenue, partly offset by contractual programming rate increases and renewals. Other costs of revenue increased by $113 million, or 7.3% year-over-year, primarily driven by higher mobile service direct costs and mobile device sales. Field and technology operations expenses increased by $53 million, or 4.3% year-over-year, primarily driven by higher labor-related costs, partly driven by storm activity, and higher network utility costs. Customer operations expenses increased by $24 million, or 3.0% year-over-year, primarily due to an increase in bad debt expense and bank and card fees, partly offset by lower labor expense. Marketing and residential sales expenses increased by $76 million, or 8.6% year-over-year, driven by higher sales, channel mix and Spectrum's continued focus on driving growth. Other expenses increased by $6 million, or 0.6% as compared to the second quarter of 2024. Net Income Attributable to Charter Shareholders Net income attributable to Charter shareholders totaled $1.3 billion in the second quarter of 2025, compared to $1.2 billion in the second quarter of 2024, due to lower interest expense and higher Adjusted EBITDA. Net income per basic common share attributable to Charter shareholders totaled $9.41 in the second quarter of 2025 compared to $8.58 during the same period last year. The increase was primarily the result of the factors described above in addition to a 3.6% decrease in basic weighted average common shares outstanding versus the prior year period. Adjusted EBITDA Second quarter Adjusted EBITDA of $5.7 billion grew by 0.5% year-over-year, reflecting growth in revenue of 0.6% and an increase in operating expenses of 0.6%. Capital Expenditures Capital expenditures totaled $2.9 billion in the second quarter of 2025, an increase of $21 million compared to the second quarter of 2024, driven by upgrade/rebuild (primarily network evolution) and CPE, partly offset by lower line extension spend. Charter now expects full year 2025 capital expenditures to total approximately $11.5 billion, a decrease from Charter's previous expectation of approximately $12.0 billion. The decrease primarily reflects the timing of network evolution spend and lower commercial and subsidized rural line extensions spend. The actual amount of capital expenditures in 2025 will depend on a number of factors including, but not limited to, the pace of Charter's network evolution and expansion initiatives, supply chain timing and growth rates in Charter's residential and commercial businesses. Cash Flow and Free Cash Flow During the second quarter of 2025, net cash flows from operating activities totaled $3.6 billion, a decrease from $3.9 billion in the prior year. The year-over-year decrease was primarily due to an unfavorable change in mobile device working capital and the timing of cash taxes and cash interest. Free cash flow in the second quarter of 2025 totaled $1.0 billion, a decrease of $250 million compared to the second quarter of 2024. The year-over-year decrease in free cash flow was primarily driven by lower net cash flows from operating activities. Liquidity & Financing As of June 30, 2025, total principal amount of debt was $94.3 billion and Charter's credit facilities provided approximately $5.8 billion of additional liquidity in excess of Charter's $606 million cash position. Share Repurchases During the three months ended June 30, 2025, Charter purchased 4.5 million shares of Charter Class A common stock and Charter Holdings common units for $1.7 billion. Webcast Charter will host a webcast on Friday, July 25, 2025 at 8:30 a.m. Eastern Time (ET) related to the contents of this release. The webcast can be accessed live via the Company's investor relations website at Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at two hours after completion of the webcast. Additional Information Available on Website The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2025, which will be posted on the "Results & SEC Filings" section of the Company's investor relations website at when it is filed with the Securities and Exchange Commission (the "SEC"). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the "Results & SEC Filings" section. Use of Adjusted EBITDA and Free Cash Flow Information The Company uses certain measures that are not defined by U.S. generally accepted accounting principles ("GAAP") to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the Addendum to this release. Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company's businesses as well as other non-cash or special items, and is unaffected by the Company's capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures. Management and Charter's board of directors use Adjusted EBITDA and free cash flow to assess Charter's performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company's credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company's debt covenants refer to these expenses as management fees, which were $366 million and $732 million for the three and six months ended June 30, 2025, respectively, and $366 million and $737 million for the three and six months ended June 30, 2024, respectively. About Charter Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator with services available to more than 57 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, supported by a 100% U.S.-based workforce, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice. More information about Charter can be found at CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to: our ability to sustain and grow revenues and cash flow from operations by offering Internet, video, mobile, voice, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures; the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite ("DBS") operators, wireless broadband and telephone providers, digital subscriber line ("DSL") providers, fiber to the home providers and providers of video content over broadband Internet connections; general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn; our ability to develop and deploy new products and technologies including consumer services and service platforms; any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation; the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us; our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives; our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements); the ability to hire and retain key personnel; the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets; our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions; our ability to satisfy the conditions to consummate the Liberty Broadband combination and/or the Cox Communications acquisition and/or to consummate the Liberty Broadband combination and/or the Cox Communications acquisition in a timely manner or at all; the risks related to us being restricted in the operation of our business while the Liberty Broadband merger agreement and the Cox Communications transaction agreement are in effect; other risks related to the Liberty Broadband combination as described in the definitive joint proxy statement/prospectus with respect to the combination, filed by Charter on January 22, 2025, including the sections entitled "Risk Factors" and "Where You Can Find More Information" included therein; and other risks related to the Cox Communications acquisition as described in the definitive proxy statement with respect to the acquisition, filed by Charter on July 2, 2025, including the sections entitled "Risk Factors" and "Where You Can Find More Information" included therein. All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication. CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES (dollars in millions) Three Months Ended June 30,Six Months EndedJune 30,Last Twelve Months EndedJune 30,202520242025202420252024 Net income attributable to Charter shareholders $ 1,301$ 1,231$ 2,518$ 2,337$ 5,264$ 4,650 Plus: Net income attributable to noncontrolling interest 194192386366790718 Interest expense, net 1,2631,3282,5042,6445,0895,269 Income tax expense 4144278598731,6351,648 Depreciation and amortization 2,1762,1704,3574,3608,6708,678 Stock compensation expense 157153379367663683 Other, net 188164453215752538 Adjusted EBITDA (a) $ 5,693$ 5,665$ 11,456$ 11,162$ 22,863$ 22,184 Net cash flows from operating activities $ 3,600$ 3,853$ 7,836$ 7,065$ 15,201$ 14,864 Less: Purchases of property, plant and equipment (2,874)(2,853)(5,273)(5,644)(10,898)(11,461) Change in accrued expenses related to capital expenditures 32029647233910409 Free cash flow (a) $ 1,046$ 1,296$ 2,610$ 1,654$ 5,213$ 3,812The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA (dollars in millions) Three Months Ended June 30,Six Months Ended June 30,20252024% Change20252024% Change REVENUES:Internet $ 5,969$ 5,8062.8 %$ 11,899$ 11,6322.3 % Video 3,4843,867(9.9) %7,0647,775(9.1) % Mobile service 92173724.9 %1,8351,42229.0 % Voice 346350(0.8) %702724(3.0) % Residential revenue 10,72010,760(0.4) %21,50021,553(0.2) % Small business 1,0941,101(0.6) %2,1802,189(0.4) % Mid-market & large business 7427212.9 %1,4781,4293.4 % Commercial revenue 1,8361,8220.8 %3,6583,6181.1 % Advertising sales 371397(6.7) %711788(9.8) % Other 83970618.9 %1,6321,40516.1 % Total Revenues 13,76613,6850.6 %27,50127,3640.5 % COSTS AND EXPENSES:Programming 2,2532,472(8.8) %4,5555,042(9.6) % Other costs of revenue 1,6511,5387.3 %3,2352,9968.0 % Field and technology operations 1,2941,2414.3 %2,5842,5391.7 % Customer operations 7917673.0 %1,5771,591(0.9) % Marketing and residential sales 9588828.6 %1,9071,7638.1 % Other expense (b) 1,1261,1200.6 %2,1872,271(3.7) % Total operating costs and expenses (b) 8,0738,0200.6 %16,04516,202(1.0) % Adjusted EBITDA (a) $ 5,693$ 5,6650.5 %$ 11,456$ 11,1622.6 %All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 7. CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in millions, except per share data) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 REVENUES $ 13,766$ 13,685$ 27,501$ 27,364 COSTS AND EXPENSES:Operating costs and expenses (exclusive of items shown separately below) 8,2308,17316,42416,569 Depreciation and amortization 2,1762,1704,3574,360 Other operating expenses, net 81792044110,48710,42220,98520,970 Income from operations 3,2793,2636,5166,394 OTHER INCOME (EXPENSES):Interest expense, net (1,263)(1,328)(2,504)(2,644) Other expenses, net (107)(85)(249)(174)(1,370)(1,413)(2,753)(2,818) Income before income taxes 1,9091,8503,7633,576 Income tax expense (414)(427)(859)(873) Consolidated net income 1,4951,4232,9042,703 Less: Net income attributable to noncontrolling interests (194)(192)(386)(366) Net income attributable to Charter shareholders $ 1,301$ 1,231$ 2,518$ 2,337 EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS:Basic $ 9.41$ 8.58$ 18.00$ 16.24 Diluted $ 9.18$ 8.49$ 17.59$ 16.03 Weighted average common shares outstanding, basic 138,205,810143,329,828139,889,251143,920,073 Weighted average common shares outstanding, diluted 141,684,415144,914,860143,098,493145,742,397 CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions) June 30,December 31,20252024 ASSETS (unaudited) CURRENT ASSETS:Cash and cash equivalents $ 606$ 459 Accounts receivable, net 3,5493,097 Prepaid expenses and other current assets 657677 Total current assets 4,8124,233 INVESTMENT IN CABLE PROPERTIES:Property, plant and equipment, net 44,18742,913 Customer relationships, net 672975 Franchises 67,46867,462 Goodwill 29,67429,674 Total investment in cable properties, net 142,001141,024 OTHER NONCURRENT ASSETS 4,7764,763 Total assets $ 151,589$ 150,020 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:Accounts payable, accrued and other current liabilities $ 12,007$ 11,687 Current portion of long-term debt 2,5491,799 Total current liabilities 14,55613,486 LONG-TERM DEBT 91,86392,134 EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY 1,3061,072 DEFERRED INCOME TAXES 18,75718,845 OTHER LONG-TERM LIABILITIES 4,7394,776 SHAREHOLDERS' EQUITY:Controlling interest 16,20915,587 Noncontrolling interests 4,1594,120 Total shareholders' equity 20,36819,707 Total liabilities and shareholders' equity $ 151,589$ 150,020 CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in millions) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 CASH FLOWS FROM OPERATING ACTIVITIES:Consolidated net income $ 1,495$ 1,423$ 2,904$ 2,703 Adjustments to reconcile consolidated net income to net cash flows from operating activities:Depreciation and amortization 2,1762,1704,3574,360 Stock compensation expense 157153379367 Noncash interest, net 781516 Deferred income taxes (53)(34)(80)(13) Other, net 11790350105 Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:Accounts receivable (238)6(286)(33) Prepaid expenses and other assets 66101(169)(265) Accounts payable, accrued liabilities and other (127)(64)366(175) Net cash flows from operating activities 3,6003,8537,8367,065 CASH FLOWS FROM INVESTING ACTIVITIES:Purchases of property, plant and equipment (2,874)(2,853)(5,273)(5,644) Change in accrued expenses related to capital expenditures 32029647233 Other, net (67)(172)(199)(225) Net cash flows from investing activities (2,621)(2,729)(5,425)(5,636) CASH FLOWS FROM FINANCING ACTIVITIES:Borrowings of long-term debt 3,7238,8225,11614,743 Borrowings of equipment installment plan financing facility 112876233876 Repayments of long-term debt (3,184)(10,068)(4,793)(15,784) Payments for debt issuance costs (1)(25)(1)(27) Purchase of treasury stock (1,451)(361)(2,253)(877) Proceeds from exercise of stock options 2—192 Purchase of noncontrolling interest (232)(46)(252)(141) Distributions to noncontrolling interest (121)(61)(124)(64) Other, net (44)(280)(213)(224) Net cash flows from financing activities (1,196)(1,143)(2,268)(1,496) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (217)(19)143(67) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period 866661506709 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ 649$ 642$ 649$ 642 CASH PAID FOR INTEREST $ 1,444$ 1,362$ 2,439$ 2,598 CASH PAID FOR INCOME TAXES $ 657$ 569$ 713$ 647As of June 30, 2025, December 31, 2024 and June 30, 2024, cash, cash equivalents and restricted cash includes $43 million, $47 million and $40 million of restricted cash included in prepaid expenses and other current assets in the consolidated balance sheets, respectively. CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED SUMMARY OF OPERATING STATISTICS (in thousands, except per customer and penetration data)Approximate as of June 30, 2025 (c)March 31, 2025 (c)December 31, 2024 (c)June 30, 2024 (c) Footprint Estimated Passings (d)57,54057,16756,86156,110Customer Relationships (e) Residential 29,00629,16029,25829,615 Small Business2,2012,2092,2152,222 Total Customer Relationships 31,20731,36931,47331,837Residential (154)(98)(207)(182) Small Business(8)(6)(8)3 Total Customer Relationships Quarterly Net Additions(162)(104)(215)(179)Total Customer Relationship Penetration of Estimated Passings (f)54.2 %54.9 %55.4 %56.7 %Monthly Residential Revenue per Residential Customer (g)$ 122.86$ 123.06$ 121.40$ 120.77 Monthly Small Business Revenue per Small Business Customer (h)$ 165.44$ 163.68$ 163.14$ 165.28Residential Customer Relationships Penetration One Product Penetration (i)47.2 %47.6 %47.6 %47.7 % Two Product Penetration (i)34.8 %34.3 %33.9 %33.2 % Three or More Product Penetration (i)18.0 %18.1 %18.5 %19.2 %% Residential Non-Video Customer Relationships58.3 %58.3 %57.9 %57.1 %Internet Residential27,86827,97928,03428,318 Small Business2,0352,0412,0462,049 Total Internet Customers29,90330,02030,08030,367Residential(111)(55)(171)(154) Small Business(6)(5)(6)5 Total Internet Quarterly Net Additions(117)(60)(177)(149)Video Residential12,08712,16012,32712,718 Small Business544551565591 Total Video Customers12,63112,71112,89213,309Residential(73)(167)(110)(393) Small Business(7)(14)(13)(15) Total Video Quarterly Net Additions(80)(181)(123)(408)Mobile Lines (j) Residential10,54210,0639,5688,531 Small Business355334315278 Total Mobile Lines10,89710,3979,8838,809Residential479495511539 Small Business21191818 Total Mobile Lines Quarterly Net Additions500514529557Voice Residential5,1615,3725,6366,170 Small Business1,2251,2341,2481,276 Total Voice Customers6,3866,6066,8847,446Residential(211)(264)(259)(268) Small Business(9)(14)(15)(12) Total Voice Quarterly Net Additions(220)(278)(274)(280)Mid-Market & Large Business (k) Mid-Market & Large Business Primary Service Units ("PSUs")331324319312 Mid-Market & Large Business Quarterly Net Additions7544See footnotes on page 7. CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CAPITAL EXPENDITURES (dollars in millions) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Customer premise equipment (l) $ 593$ 562$ 1,066$ 1,197 Scalable infrastructure (m) 371362664690 Upgrade/rebuild (n) 457389852870 Support capital (o) 425421785809 Capital expenditures, excluding line extensions 1,8461,7343,3673,566 Subsidized rural construction line extensions 5435651,010992 Other line extensions 4855548961,086 Total line extensions (p) 1,0281,1191,9062,078 Total capital expenditures $ 2,874$ 2,853$ 5,273$ 5,644 Capital expenditures included in total related to:Commercial services $ 324$ 382$ 597$ 757 Subsidized rural construction initiative (q) $ 545$ 567$ 1,013$ 994 Mobile $ 59$ 64$ 112$ 123See footnotes on page COMMUNICATIONS, INC. AND SUBSIDIARIES FOOTNOTES (a) Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures. (b) Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net. (c) We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, at June 30, 2025, March 31, 2025, December 31, 2024 and June 30, 2024, customers included approximately 99,400, 92,200, 102,500 and 79,400 customers, respectively, whose accounts were over 60 days past due, approximately 11,600, 10,700, 12,100 and 10,000 customers, respectively, whose accounts were over 90 days past due and approximately 18,900, 17,000, 13,600 and 13,500 customers, respectively, whose accounts were over 120 days past due. (d) Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and small business and mid-market & large business sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available. (e) Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video, mobile and voice services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units ("MDUs") and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude mid-market & large business and mobile-only customer relationships. (f) Penetration represents residential and small business customers as a percentage of estimated passings. Penetration excludes mobile-only customers. (g) Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter and excludes mobile-only customer relationships. (h) Monthly small business revenue per small business customer is calculated as total small business quarterly revenue divided by three divided by average small business customer relationships during the respective quarter and excludes mobile-only customer relationships. (i) One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships, excluding mobile-only customers. (j) Mobile lines include phones and tablets which require one of our standard rate plans (e.g., "Unlimited" or "By the Gig"). Mobile lines exclude wearables and other devices that do not require standard phone rate plans. (k) Mid-market & large business PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU. (l) Customer premise equipment includes equipment and devices located at the customer's premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs. (m) Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment). (n) Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative. (o) Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment). (p) Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering). (q) The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments, excluding customer premise equipment and installation. View original content to download multimedia: SOURCE Charter Communications, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Virtus Investment Partners Announces Financial Results for Second Quarter 2025
HARTFORD, Conn.--(BUSINESS WIRE)--Virtus Investment Partners, Inc. (NYSE: VRTS) today reported financial results for the three months ended June 30, 2025. Financial Highlights (Unaudited) (in millions, except per share data or as noted) Three Months Ended Three Months Ended 6/30/2025 6/30/2024 Change 3/31/2025 Change U.S. GAAP Financial Measures Revenues $ 210.5 $ 224.4 (6 %) $ 217.9 (3 %) Operating expenses $ 165.3 $ 180.2 (8 %) $ 181.3 (9 %) Operating income (loss) $ 45.2 $ 44.2 2 % $ 36.6 23 % Operating margin 21.5 % 19.7 % 16.8 % Net income (loss) attributable to Virtus Investment Partners, Inc. $ 42.4 $ 17.6 141 % $ 28.6 48 % Earnings (loss) per share - diluted $ 6.12 $ 2.43 152 % $ 4.05 51 % Weighted average shares outstanding - diluted 6.922 7.242 (4 %) 7.073 (2 %) Non-GAAP Financial Measures (1) Revenues, as adjusted $ 191.0 $ 203.0 (6 %) $ 197.6 (3 %) Operating expenses, as adjusted $ 131.2 $ 137.0 (4 %) $ 143.0 (8 %) Operating income (loss), as adjusted $ 59.8 $ 66.0 (9 %) $ 54.6 10 % Operating margin, as adjusted 31.3 % 32.5 % 27.6 % Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted $ 43.3 $ 47.3 (8 %) $ 40.5 7 % Earnings (loss) per share - diluted, as adjusted $ 6.25 $ 6.53 (4 %) $ 5.73 9 % Expand (1) See the information beginning on page 10 for reconciliations to the most directly comparable U.S. GAAP measures and other important disclosures Expand Earnings Summary The company presents U.S. GAAP and non-GAAP earnings information in this release. Management believes that the non-GAAP financial measures presented reflect the company's operating results from providing investment management and related services to individuals and institutions and uses these measures to evaluate financial performance. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Non-GAAP information and reconciliations to the most comparable U.S. GAAP measures can be found beginning on page 10 of this earnings release. Total assets under management of $170.7 billion at June 30, 2025 increased sequentially from $167.5 billion due to market performance and positive net flows in exchange-traded funds, partially offset by net outflows in other products. In addition, the company provided services to $1.8 billion of other fee-earning assets that are not included in assets under management. Total sales of $5.6 billion compared with $6.2 billion in the prior quarter. Institutional sales of $1.3 billion compared with $1.5 billion as higher sales of alternative strategies were offset by lower fixed income and global equities. Retail separate account sales of $1.5 billion declined from $1.7 billion primarily due to lower small/mid-cap equity. Open-end fund sales of $2.8 billion compared with $3.0 billion as higher sales of large-cap and international were offset by other strategies. Net flows of ($3.9) billion compared with ($3.0) billion in the prior quarter. Institutional net flows of ($2.2) billion compared with ($1.2) billion due to a higher level of redemptions primarily in large-cap growth. Retail separate account net flows of ($0.8) billion compared with ($0.7) billion with net outflows led by small/mid-cap strategies. Open-end fund net flows of ($1.0) billion were essentially unchanged from the prior quarter and were largely due to equity strategies. GAAP Results Operating income of $45.2 million increased from $36.6 million in the prior quarter reflecting a 9% reduction in operating expenses, partially offset by a 3% decline in revenues due to lower average assets under management. The decrease in operating expenses was primarily due to lower employment expenses which included seasonally higher expenses in the prior quarter, and a decrease in fair value of contingent consideration. Net income attributable to Virtus Investment Partners, Inc. of $6.12 per diluted share included $0.50 and $0.32 of fair value adjustments to minority interests and contingent consideration, respectively. Net income per diluted share of $4.05 in the prior quarter included ($0.94) of realized and unrealized losses on investments partially offset by $0.35 of fair value adjustments to minority interests. The effective tax rate of 22% decreased from 31% in the prior quarter, primarily reflecting a decrease in income tax valuation allowances for net unrealized and realized losses compared to the prior quarter. Non-GAAP Results Revenues, as adjusted, of $191.0 million decreased 3% from $197.6 million in the prior quarter primarily due to a 4% decrease in average assets under management. Employment expenses, as adjusted, of $97.2 million decreased from $109.4 million due to prior quarter seasonal expenses and lower variable incentive compensation. Other operating expenses, as adjusted, of $32.0 million increased from $31.3 million due to the $0.9 million annual equity grant to the Board of Directors. Operating income, as adjusted, of $59.8 million and the related margin of 31.3% increased from $54.6 million and 27.6%, respectively, primarily due to the prior quarter seasonal expenses. Net income attributable to Virtus Investment Partners, Inc., as adjusted, per diluted share was $6.25, a 9% increase from $5.73 in the prior quarter. The increase primarily reflected the impact of prior quarter seasonal employment expenses. The effective tax rate, as adjusted, of 26% was essentially unchanged from the prior quarter. (1) Excludes deferred financing costs of $3.4 million, $4.8 million, and $3.7 million, as of June 30, 2025, June 30, 2024, and March 31, 2025, respectively (2) Represents estimated revenue participation and other contingent payments (3) Excludes redeemable noncontrolling interests of consolidated investment products of $66.8 million, $44.7 million, and $61.6 million as of June 30, 2025, June 30, 2024, and March 31, 2025, respectively (4) Defined as cash and cash equivalents plus accounts receivable, net, and deferred compensation related investments less accrued compensation and benefits (excluding those of minority interests), accounts payable and accrued liabilities, dividends payable, as well as debt principal payments and revenue participation obligations due within 12 months (5) Defined as gross debt less cash and cash equivalents in accordance with the company's credit agreement Expand Working capital of $144.0 million at June 30, 2025 increased from $137.2 million at March 31, 2025, as cash earnings more than offset return of capital. During the quarter, the company repurchased 175,872 shares for $30.0 million. Gross debt at June 30, 2025 was $234.7 million. Net debt was $62.5 million, or 0.2x EBITDA. Conference Call and Investor Presentation Management will host an investor conference call and webcast on Friday, July 25, 2025, at 10 a.m. Eastern to discuss these financial results and related matters. The presentation that will accompany the conference call is available in the Investor Relations section of A replay of the call will be available in the Investor Relations section for at least one year. We routinely post important information for investors on the Investor Relations section of our website and may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. We may also use social media channels to communicate with our investors and the public about our company, our products and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document. About Virtus Investment Partners, Inc. Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at Assets Under Management - Product and Asset Class (in millions) Three Months Ended 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 By Product (period end): Open-End Funds (1) $ 55,852 $ 58,100 $ 56,073 $ 53,608 $ 55,653 Closed-End Funds 9,915 10,432 10,225 10,273 10,481 Retail Separate Accounts (2) 45,672 50,610 49,536 46,920 47,445 Institutional Accounts (3) 62,146 64,600 59,167 56,662 57,131 By Product (average) (4) Open-End Funds (1) $ 56,692 $ 56,731 $ 57,905 $ 56,104 $ 53,742 Closed-End Funds 9,894 10,159 10,452 10,288 10,183 Retail Separate Accounts (2) 46,816 45,672 50,610 49,321 46,637 Institutional Accounts (3) 61,773 63,428 63,121 57,877 56,397 Total $ 175,175 $ 175,990 $ 182,088 $ 173,590 $ 166,959 By Asset Class (period end): Equity $ 99,224 $ 106,784 $ 100,792 $ 93,624 $ 96,232 Fixed Income 36,970 39,014 37,696 37,930 38,594 Multi-Asset (5) 21,060 21,619 21,174 20,834 21,430 Alternatives (6) 16,331 16,325 15,339 15,075 14,454 Total $ 173,585 $ 183,742 $ 175,001 $ 167,463 $ 170,710 Expand Assets Under Management - Average Management Fees Earned (7) (in basis points) Three Months Ended 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 By Product: Open-End Funds (1) 50.9 49.7 49.5 47.8 46.7 Closed-End Funds 58.6 58.5 58.8 58.5 58.6 Retail Separate Accounts (2) 43.3 43.7 42.6 42.9 42.9 Institutional Accounts (3)(8) 30.7 31.0 31.9 31.8 31.8 All Products (8) 42.2 41.9 42.0 41.7 41.3 Expand (1) Represents assets under management of U.S. retail funds, global funds, and exchange-traded funds (2) Includes investment models provided to managed account sponsors (3) Represents assets under management of institutional separate and commingled accounts including structured products (4) Calculated according to revenue earning basis that includes average daily, weekly, monthly beginning balance, monthly ending balance, or quarter beginning and ending balance, as well as quarter beginning or ending spot balance (5) Consists of multi-asset offerings not included in equity, fixed income, and alternatives (6) Consists of real estate securities, managed futures, event-driven, infrastructure, and other strategies (7) Represents investment management fees, as adjusted, divided by average assets. Investment management fees, as adjusted, exclude the impact of consolidated investment products and are net of revenue-related adjustments. Revenue-related adjustments are based on specific agreements and reflect the portion of investment management fees passed through to third-party client intermediaries for services to investors in sponsored investment products (8) Expand Assets Under Management - Asset Flows by Product (in millions) Three Months Ended Six Months Ended 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 6/30/2024 6/30/2025 Open-End Funds (1) Beginning balance $ 57,818 $ 55,852 $ 58,100 $ 56,073 $ 53,608 $ 56,062 $ 56,073 Inflows 2,777 3,118 3,049 3,038 2,825 6,253 5,863 Outflows (4,120 ) (4,143 ) (4,165 ) (4,110 ) (3,806 ) (8,224 ) (7,916 ) Net flows (1,343 ) (1,025 ) (1,116 ) (1,072 ) (981 ) (1,971 ) (2,053 ) Market performance (480 ) 3,410 (541 ) (1,250 ) 3,211 2,080 1,961 Other (2) (143 ) (137 ) (370 ) (143 ) (185 ) (319 ) (328 ) Ending balance $ 55,852 $ 58,100 $ 56,073 $ 53,608 $ 55,653 $ 55,852 $ 55,653 Closed-End Funds Beginning balance $ 10,064 $ 9,915 $ 10,432 $ 10,225 $ 10,273 $ 10,026 $ 10,225 Inflows — — 1 5 4 — 9 Outflows (41 ) — — (40 ) (2 ) (41 ) (42 ) Net flows (41 ) — 1 (35 ) 2 (41 ) (33 ) Market performance 83 845 (55 ) 257 378 322 635 Other (2) (191 ) (328 ) (153 ) (174 ) (172 ) (392 ) (346 ) Ending balance $ 9,915 $ 10,432 $ 10,225 $ 10,273 $ 10,481 $ 9,915 $ 10,481 Retail Separate Accounts (3) Beginning balance $ 46,816 $ 45,672 $ 50,610 $ 49,536 $ 46,920 $ 43,202 $ 49,536 Inflows 2,172 2,260 1,816 1,742 1,468 4,545 3,210 Outflows (1,688 ) (1,829 ) (1,745 ) (2,410 ) (2,264 ) (3,383 ) (4,674 ) Net flows 484 431 71 (668 ) (796 ) 1,162 (1,464 ) Market performance (1,631 ) 4,507 (1,145 ) (1,947 ) 1,322 1,305 (625 ) Other (2) 3 — — (1 ) (1 ) 3 (2 ) Ending balance $ 45,672 $ 50,610 $ 49,536 $ 46,920 $ 47,445 $ 45,672 $ 47,445 Institutional Accounts (4) Beginning balance $ 64,613 $ 62,146 $ 64,600 $ 59,167 $ 56,662 $ 62,969 $ 59,167 Inflows 1,188 1,219 1,574 1,455 1,283 2,922 2,738 Outflows (2,913 ) (2,349 ) (5,376 ) (2,659 ) (3,455 ) (5,935 ) (6,114 ) Net flows (1,725 ) (1,130 ) (3,802 ) (1,204 ) (2,172 ) (3,013 ) (3,376 ) Market performance (549 ) 3,790 (1,141 ) (1,170 ) 2,844 2,452 1,674 Other (2) (193 ) (206 ) (490 ) (131 ) (203 ) (262 ) (334 ) Ending balance $ 62,146 $ 64,600 $ 59,167 $ 56,662 $ 57,131 $ 62,146 $ 57,131 Total Beginning balance $ 179,311 $ 173,585 $ 183,742 $ 175,001 $ 167,463 $ 172,259 $ 175,001 Inflows 6,137 6,597 6,440 6,240 5,580 13,720 11,820 Outflows (8,762 ) (8,321 ) (11,286 ) (9,219 ) (9,527 ) (17,583 ) (18,746 ) Net flows (2,625 ) (1,724 ) (4,846 ) (2,979 ) (3,947 ) (3,863 ) (6,926 ) Market performance (2,577 ) 12,552 (2,882 ) (4,110 ) 7,755 6,159 3,645 Other (2) (524 ) (671 ) (1,013 ) (449 ) (561 ) (970 ) (1,010 ) Ending balance $ 173,585 $ 183,742 $ 175,001 $ 167,463 $ 170,710 $ 173,585 $ 170,710 Expand (1) Represents assets under management of U.S. retail funds, global funds and exchange-traded funds (2) Represents open-end and closed-end fund distributions net of reinvestments, the impact of non-sales related activities such as asset acquisitions/(dispositions), seed capital investments/(withdrawals), current income or capital returned by structured products, and the use of leverage (3) Includes investment models provided to managed account sponsors (4) Represents assets under management of institutional separate and commingled accounts including structured products Expand Non-GAAP Information and Reconciliations (in thousands except per share data) The non-GAAP financial measures included in this release differ from financial measures determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earnings generated from providing investment management and related services. Management uses these measures to evaluate the company's financial performance and operational decision-making. Management believes that these non-GAAP financial measures, when presented together with directly comparable U.S. GAAP measures, are useful to investors and other interested parties to provide additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management. Please see the Notes to Reconciliations on page 13 for additional information on how these measures reflect the company's operating results. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Also, the non-GAAP financial measures referenced in this release may not be comparable to the similarly titled measures used by other companies. The following are reconciliations and related notes of the most directly comparable U.S. GAAP measure to each non-GAAP measure: Operating Expenses Total operating expenses, GAAP $ 165,315 $ 180,179 $ 181,337 Consolidated investment products expenses (1) (810 ) (2,909 ) (1,000 ) Distributions to minority interests (3) (745 ) — 193 Distribution and other asset-based expenses (4) (21,975 ) (23,695 ) (22,896 ) Amortization of intangible assets (5) (12,944 ) (15,198 ) (12,944 ) Restructuring expense (6) — (690 ) — Deferred compensation and related investments (7) (531 ) 36 107 Acquisition and integration expenses (8) 2,579 2,201 (417 ) Other (9) 325 (2,907 ) (1,359 ) Total operating expenses, as adjusted $ 131,214 $ 137,017 $ 143,021 Expand Three Months Ended Operating Income (Loss) 6/30/2025 6/30/2024 3/31/2025 Operating income (loss), GAAP $ 45,210 $ 44,205 $ 36,595 Consolidated investment products (earnings) losses (1) 3,245 5,235 3,575 Distributions to minority interests (3) 745 — (193 ) Amortization of intangible assets (5) 12,944 15,198 12,944 Restructuring expense (6) — 690 — Deferred compensation and related investments (7) 531 (36 ) (107 ) Acquisition and integration expenses (8) (2,579 ) (2,201 ) 417 Other (9) (325 ) 2,907 1,359 Operating income (loss), as adjusted $ 59,771 $ 65,998 $ 54,590 Operating margin, GAAP 21.5 % 19.7 % 16.8 % Operating margin, as adjusted 31.3 % 32.5 % 27.6 % Expand Income (Loss) Before Taxes Income (loss) before taxes, GAAP $ 55,146 $ 37,770 $ 40,402 Consolidated investment products (earnings) losses (1) (1,808 ) 268 (18 ) Distributions to minority interests (3) 745 — (193 ) Amortization of intangible assets (5) 12,944 15,198 12,944 Restructuring expense (6) — 690 — Deferred compensation and related investments (7) (436 ) 545 613 Acquisition and integration expenses (8) (2,579 ) (2,201 ) 417 Other (9) (325 ) 2,907 1,359 Seed capital and CLO investments (gains) losses (10) (2,097 ) 12,175 1,478 Income (loss) before taxes, as adjusted $ 61,590 $ 67,352 $ 57,002 Expand Income Tax Expense (Benefit) Income tax expense (benefit), GAAP $ 12,403 $ 11,748 $ 12,350 Tax impact of: Amortization of intangible assets (5) 3,404 3,973 3,419 Restructuring expense (6) — 180 — Deferred compensation and related investments (7) (115 ) 142 162 Acquisition and integration expenses (8) (678 ) (575 ) 110 Other (9) 43 1,415 (918 ) Seed capital and CLO investments (gains) losses (10) 1,142 725 (67 ) Income tax expense (benefit), as adjusted $ 16,199 $ 17,608 $ 15,056 Effective tax rate, GAAP A 22.5 % 31.1 % 30.6 % Effective tax rate, as adjusted B 26.3 % 26.1 % 26.4 % Expand A Reflects income tax expense (benefit), GAAP, divided by income (loss) before taxes, GAAP B Reflects income tax expense (benefit), as adjusted, divided by income (loss) before taxes, as adjusted Expand Three Months Ended Net Income (Loss) Attributable to Virtus Investment Partners, Inc. 6/30/2025 6/30/2024 3/31/2025 Net income (loss) attributable to Virtus Investment Partners, Inc. $ 42,373 $ 17,614 $ 28,647 Amortization of intangible assets, net of tax (5) 9,514 10,738 9,499 Restructuring expense, net of tax (6) — 510 — Deferred compensation and related investments (7) (321 ) 403 451 Acquisition and integration expenses, net of tax (8) (1,901 ) (1,626 ) 307 Other, net of tax (9) (3,136 ) 8,164 53 Seed capital and CLO investments (gains) losses, net of tax (10) (3,239 ) 11,450 1,545 Net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted $ 43,290 $ 47,253 $ 40,502 Weighted average shares outstanding - diluted 6,922 7,242 7,073 Earnings (loss) per share - diluted, GAAP $ 6.12 $ 2.43 $ 4.05 Earnings (loss) per share - diluted, as adjusted $ 6.25 $ 6.53 $ 5.73 Expand Administration and Shareholder Services Fees Administration and shareholder service fees, GAAP $ 18,048 $ 18,308 $ 18,007 Consolidated investment products fees (1) 25 23 22 Administration and shareholder service fees, as adjusted $ 18,073 $ 18,331 $ 18,029 Expand Employment Expenses Employment expenses, GAAP $ 98,030 $ 105,667 $ 109,093 Distributions to minority interests (3) (745 ) — 193 Deferred compensation and related investments (7) (531 ) 36 107 Acquisition and integration expenses (8) (435 ) (1,099 ) (417 ) Other (9) 917 (1,134 ) 414 Employment expenses, as adjusted $ 97,236 $ 103,470 $ 109,390 Expand Other Operating Expenses Other operating expenses, GAAP $ 32,564 $ 33,050 $ 33,059 Other (9) (592 ) (1,773 ) (1,773 ) Other operating expenses, as adjusted $ 31,972 $ 31,277 $ 31,286 Expand Total Other Income (Expense), Net Total other income (expense), net GAAP $ (96 ) $ (13,892 ) $ (7,642 ) Consolidated investment products (1) 4,240 1,492 6,759 Deferred compensation and related investments (7) (945 ) 611 744 Seed capital and CLO investments (gains) losses (10) (2,097 ) 12,175 1,478 Total other income (expense), net as adjusted $ 1,102 $ 386 $ 1,339 Expand Interest and Dividend Income Interest and dividend income, GAAP $ 2,054 $ 2,643 $ 3,016 Consolidated investment products (1) 3,267 3,966 2,642 Deferred compensation and related investments (7) (22 ) (30 ) (24 ) Interest and dividend income, as adjusted $ 5,299 $ 6,579 $ 5,634 Expand Three Months Ended Total Noncontrolling Interests 6/30/2025 6/30/2024 3/31/2025 Total noncontrolling interests, GAAP $ (370 ) $ (8,408 ) $ 595 Consolidated investment products (1) 1,808 (268 ) 18 Distributions to minority interests (3) (745 ) — 193 Amortization of intangible assets (5) (26 ) (487 ) (26 ) Other (9) (2,768 ) 6,672 (2,224 ) Total noncontrolling interests, as adjusted $ (2,101 ) $ (2,491 ) $ (1,444 ) Expand Notes to Reconciliations: 1. Consolidated investment products - Revenues and expenses generated by operating activities of mutual funds and collateralized loan obligations (CLOs) that are consolidated in the financial statements. Management believes that excluding these operating activities to reflect net revenues and expenses of the company prior to the consolidation of these products is consistent with the approach of reflecting its operating results from managing third-party client assets. Revenue Related 2. Investment management/Distribution and service fees - Each of these revenue line items is reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing company sponsored investment products and servicing the client. The amount of fees fluctuates each period, based on a predetermined percentage of the value of assets under management, and varies based on the type of investment product. The specific adjustments are as follows: Investment management fees - Based on specific agreements, the portion of investment management fees passed through to third-party intermediaries for services to investors in sponsored investment products. Distribution and service fees - Based on distinct arrangements, fees collected by the company then passed through to third-party client intermediaries for services to investors in sponsored investment products. The adjustment represents all of the company's distribution and service fees that are recorded as a separate line item on the condensed consolidated statements of operations. Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries. Expense Related 3. Distributions to minority interests - Earnings allocated and paid to certain limited partners of a majority owned manager are recorded as employment expenses in the financial statements. Management believes reclassifying these earnings distributions to noncontrolling interests to reflect these payments as non-operating earnings distributions aids in comparing the company's operating results with other asset managers that do not have majority-owned managers. 4. Distribution and other asset-based expenses - Primarily payments to third-party client intermediaries for providing services to investors in sponsored investment products. Management believes that making this adjustment aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries. 5. Amortization of intangible assets - Non-cash amortization expense or impairment expense, if any, attributable to acquisition-related intangible assets, including any portion that is allocated to noncontrolling interests. Management believes that making this adjustment aids in comparing the company's operating results with other asset management firms that have not engaged in acquisitions. 6. Restructuring expense - Certain non-recurring expenses associated with restructuring the business, including lease abandonment-related expenses and severance costs associated with staff reductions that are not reflective of ongoing earnings generation of the business. 7. Deferred compensation and related investments - Compensation expense, gains and losses (realized and unrealized), and interest and dividend income related to deferred compensation and related balance sheet investments. Market performance of deferred compensation plans and related investments can vary significantly from period to period. Management believes that making this adjustment aids in comparing the Company's operating results with prior periods. 8. Acquisition and integration expenses - Expenses that are directly related to acquisition and integration activities. Acquisition expenses include certain transaction related employment expenses, transaction closing costs, change in fair value of contingent consideration, certain professional fees, and financing fees. Integration expenses include costs incurred that are directly attributable to combining businesses, including compensation, restructuring and severance charges, professional fees, consulting fees, and other expenses. Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that have not engaged in acquisitions. Components of Acquisition and Integration Expenses for the respective periods are shown below: 9. Other - Certain expenses that are not reflective of the ongoing earnings generation of the business. Employment expenses and noncontrolling interests are adjusted to exclude fair value measurements of manager minority interest. Other operating expenses are adjusted for amortization of lease termination fees and transition related expense (benefit). Interest expense is adjusted to remove gains on early extinguishment of debt and the write-off of previously capitalized costs associated with the modification of debt. Income tax expense (benefit) items are adjusted for uncertain tax positions, changes in tax law, valuation allowances, and other unusual or infrequent items not related to current operating results to reflect a normalized effective rate. Management believes that making these adjustments aids in comparing the company's operating results with prior periods. Components of Other for the respective periods are shown below: Seed Capital and CLO Related 10. Seed capital and CLO investments (gains) losses - Gains and losses (realized and unrealized) of seed capital and CLO investments. Gains and losses (realized and unrealized) generated by investments in seed capital and CLO investments can vary significantly from period to period and do not reflect the company's operating results from providing investment management and related services. Management believes that making this adjustment aids in comparing the company's operating results with prior periods and with other asset management firms that do not have meaningful seed capital and CLO investments. Definitions: Revenues, as adjusted, comprise the fee revenues paid by clients for investment management and related services. Revenues, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP, namely in excluding the impact of operating activities of consolidated investment products and reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing the product and servicing the client. Operating expenses, as adjusted, is calculated to reflect expenses from ongoing continuing operations. Operating expenses, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP expenses in that they exclude amortization or impairment, if any, of intangible assets, restructuring and severance, the effect of consolidated investment products, acquisition and integration-related expenses and certain other expenses that do not reflect the ongoing earnings generation of the business. Operating margin, as adjusted, is a metric used to evaluate efficiency represented by operating income, as adjusted, divided by revenues, as adjusted. Earnings (loss) per share, as adjusted, represent net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted, divided by weighted average shares outstanding, as adjusted, on either a basic or diluted basis. Forward-Looking Information This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by such forward-looking terminology as 'expect,' 'estimate,' 'intent,' 'plan,' 'intend,' 'believe,' 'anticipate,' 'may,' 'will,' 'should,' 'could,' 'continue,' 'project,' 'opportunity,' 'predict,' 'would,' 'potential,' 'future,' 'forecast,' 'guarantee,' 'assume,' 'likely,' 'target' or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions and projections about the company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans, and ability to borrow, for all future periods. All of our forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report on Form 10-K, as supplemented by our periodic filings with the Securities and Exchange Commission (the "SEC"), as well as the following risks and uncertainties resulting from: (i) reduction in our assets under management; (ii) financial or business risks from strategic transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) lack of sufficient capital on satisfactory terms; (vii) inability to attract and retain key personnel; (viii) challenges from competition; (ix) adverse developments related to unaffiliated subadvisers; (x) negative changes in key distribution relationships; (xi) interruptions, breaches, or failures of technology systems; (xii) loss on our investments; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or unanticipated tax obligations; (xvii) impediments from certain corporate governance provisions; (xviii) losses or costs not covered by insurance; (xix) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2024 Annual Report on Form 10-K, and our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity. Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the company's periodic reports filed with the SEC and are available on our website at under 'Investor Relations.' You are urged to carefully consider all such factors. The company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or affect any of the forward-looking statements contained in or accompanying this release, such statements or disclosures will be deemed to modify or supersede such statements in this release.
