Fri, May 9, 9:02 PM (45 days ago)
**Associated Capital Group, Inc. (AC) - Q1 2025 Financial Summary** **Financial Health & Performance Metrics:** - **Revenue:** Q1 2025 revenue was $2.13 million, down from $3.01 million in Q1 2024, primarily due to lower investment advisory and incentive fees. - **Profit Margins:** Operating loss was $5.29 million in Q1 2025, slightly worse than the $4.97 million loss in Q1 2024. Net income was $7.67 million, down from $13.82 million in the prior year. - **Cash Flow:** Net cash used in operating activities was $8.14 million in Q1 2025, compared to $1.11 million in Q1 2024. Net cash provided by investing activities was $1.22 million, and net cash used in financing activities was $1.43 million. - **Earnings Changes:** Earnings per share (EPS) was $0.36 in Q1 2025, down from $0.64 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Decline:** The decrease in revenue was driven by lower investment advisory and incentive fees, partly due to market uncertainty and geopolitical factors. - **Expenses:** Compensation expenses increased due to higher stock-based compensation, while management fees decreased. - **Investment Gains:** Net gain from investments was $10.89 million, down from $16.79 million in Q1 2024, reflecting lower investment performance. - **Assets Under Management (AUM):** AUM increased to $1.27 billion, primarily due to market appreciation. **Trends & Uncertainties:** - **Market Volatility:** Ongoing market uncertainty due to global trade and geopolitical conflicts may impact short-term returns. - **AUM Growth:** AUM growth depends on investment performance, distribution channels, and market conditions. - **Regulatory Environment:** Changes in government policy or regulation could affect operations and financial performance. **Future Operations Impact:** - **Strategic Objectives:** AC aims to pursue acquisitions, lift-outs, seeding new investment strategies, and co-investing. - **Shareholder Compensation:** The company plans to continue share repurchases and dividends, with a semi-annual dividend of $0.10 per share declared for Q2 2025. - **Liquidity:** AC has sufficient liquid assets to meet cash requirements and build out its operating business.