Diamond Hill Investment Group reported third‑quarter 2025 results with revenue of $37.4 million, a 4% decline from $39.0 million in Q3 2024, and net income of $13.55 million, down 7% from the same period last year. Diluted earnings per share were $4.99, a 7% drop from $5.35 in Q3 2024, while the operating margin held steady at 26%. Investment income fell 12% to $8.49 million, reflecting a shift in market conditions and a lower average advisory fee rate of 0.44% versus 0.46% in the prior year.
The company declared a regular quarterly cash dividend of $1.50 per share and a one‑time special dividend of $4.00 per share, payable on December 5 2025. The regular dividends total $6.00 for the year, and the special dividend brings the total declared dividends for 2025 to $10.00 per share.
Assets under management increased to $30.58 billion at the end of the quarter, down from $33.2 billion in Q3 2024. Net client inflows for the quarter were $41.0 million, a positive shift from a $22.0 million outflow in Q3 2024. The firm repurchased $14.5 million of shares year‑to‑date, underscoring its commitment to shareholder returns.
During the quarter, Diamond Hill converted its Large Cap Concentrated Fund to an exchange‑traded fund, expanding its product offering. Fixed‑income strategies added nearly $1 billion in net flows this quarter and $2 billion year‑to‑date, reflecting strong demand for stable income streams amid market volatility. The revenue decline was largely driven by fee compression as the mix shifted toward lower‑fee fixed‑income assets.
CEO Heather Brilliant highlighted the ETF conversion as part of the firm’s strategy to deliver investment capabilities through vehicles that best serve client needs, reinforcing its active‑management philosophy while navigating a competitive industry landscape.
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