Form 10-Q - Quarterly report [Sections 13 or 15(d)]

____________________________________________________________________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________________________________

FORM 10-Q

____________________________________________________________________________________________________


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission file number 1-31234

____________________________________________________________________________________________________

WESTWOOD HOLDINGS GROUP, INC.

(Exact name of registrant as specified in its charter)

____________________________________________________________________________________________________


Delaware		75-2969997
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

200 CRESCENT COURT, SUITE 1200
DALLAS,	Texas	75201
(Address of principal executive office)		(Zip Code)

(214) 756-6900

(Registrant’s telephone number, including area code)

____________________________________________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, par value $0.01 per share	WHG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Shares of common stock, par value $0.01 per share, outstanding as of July 24, 2024: 9,286,533.

____________________________________________________________________________________________________

WESTWOOD HOLDINGS GROUP, INC.

INDEX


PART I	FINANCIAL INFORMATION	PAGE

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets	1

	Condensed Consolidated Statements of Comprehensive Incom e (Loss)	2

	Condensed Consolidated Statements of Stockholders’ Equity	3

	Condensed Consolidated Statements of Cash Flows	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

PART II	OTHER INFORMATION	28

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 6.	Exhibits	29

Signatures		30

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share amounts)

(Unaudited)


	June 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	23,770	$	20,422
Accounts receivable	14,324		14,394
Investments, at fair value	20,364		32,674
Prepaid income taxes	945		205
Other current assets	4,506		4,543
Total current assets	63,909		72,238
Investments	8,747		7,247
Equity method investments	4,578		4,284
Noncurrent investments at fair value	1,825		241
Goodwill	39,501		39,501
Deferred income taxes	773		726
Operating lease right-of-use assets	3,127		3,673
Intangible assets, net	22,729		24,803
Property and equipment, net of accumulated depreciation of $8,180 and $10,078	1,144		1,444
Other long-term assets	1,041		1,010
Total long-term assets	83,465		82,929
Total assets	$	147,374	$	155,167
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	5,312	$	6,130

Dividends payable	1,394		1,692
Compensation and benefits payable	5,322		9,539
Operating lease liabilities	1,406		1,286


Total current liabilities	13,434		18,647
Accrued dividends	782		675
Contingent consideration	10,176		10,133

Noncurrent operating lease liabilities	2,516		3,266
Total long-term liabilities	13,474		14,074
Total liabilities	26,908		32,721
Commitments and contingencies (Note 11)
Stockholders' Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,174,073 and 11,856,737, respectively and outstanding 9,293,447 and 9,140,760, respectively	123		119
Additional paid-in capital	202,064		201,622
Treasury stock, at cost – 2,880,626 and 2,715,977, respectively	(88,005)		(85,990)

Retained earnings	4,339		4,650
Total Westwood Holdings Group, Inc. stockholders’ equity	118,521		120,401
Noncontrolling interest in consolidated subsidiary	1,945		2,045
Total equity	120,466		122,446
Total liabilities and stockholders' equity	$	147,374	$	155,167

See Notes to Condensed Consolidated Financial Statements.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data and share amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
REVENUES:
Advisory fees:
Asset-based	$	17,139	$	16,799	$	33,956	$	33,832
Performance-based	—		—		—		555
Trust fees	5,227		5,024		10,340		10,055

Other, net	322		122		1,124		230
Total revenues	22,688		21,945		45,420		44,672
EXPENSES:
Employee compensation and benefits	13,638		13,688		28,349		27,890
Sales and marketing	755		764		1,383		1,504
Westwood mutual funds	855		746		1,576		1,478
Information technology	2,350		2,566		4,640		4,949
Professional services	1,450		1,355		2,939		2,884
General and administrative	3,011		3,235		5,912		6,281

(Gain) loss from change in fair value of contingent consideration	4,807		(4,078)		1,858		(5,138)
Acquisition expenses	—		—		—		209
Total expenses	26,866		18,276		46,657		40,057
Net operating income	(4,178)		3,669		(1,237)		4,615

Net change in unrealized appreciation (depreciation) on private investments	—		24		—		24
Net investment income (loss)	548		211		1,003		383
Other income	224		239		409		611

Income before income taxes	(3,406)		4,143		175		5,633
Income tax provision	(1,193)		1,244		222		2,020
Net income (loss)	$	(2,213)	$	2,899	$	(47)	$	3,613



Total comprehensive income (loss)	$	(2,213)	$	2,899	$	(47)	$	3,613
Less: Comprehensive income (loss) attributable to noncontrolling interest	30		4		(100)		25
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	(2,243)	$	2,895	$	53	$	3,588
Earnings per share:
Basic	$	(0.27)	$	0.36	$	0.01	$	0.45
Diluted	$	(0.27)	$	0.36	$	0.01	$	0.45
Weighted average shares outstanding:
Basic	8,218,596		7,991,228		8,158,812		7,922,954
Diluted	8,218,596		8,131,333		8,438,431		8,050,298

See Notes to Condensed Consolidated Financial Statements.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

For the Three Months Ended June 30, 2024 and 2023

(In thousands, except share amounts)

(Unaudited)


	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings (Accumulated Deficit)		Noncontrolling Interest		Total
	Shares	Amount
Balance, March 31, 2024	9,330,762	$	122	$	201,899	$	(86,930)	$	6,749	$	1,915	$	123,755
Net income (loss)	—	—		—		—		(2,243)		30		(2,213)



Issuance of restricted stock, net of forfeitures	49,031	1		(1)		—		—		—		—

Dividends declared ($0.15 per share)	—	—		(1,231)		—		(167)		—		(1,398)

Stock-based compensation expense	—	—		1,397		—		—		—		1,397

Purchases of treasury stock	(86,346)	—		—		(1,075)		—		—		(1,075)


Balance, June 30, 2024	9,293,447	$	123	$	202,064	$	(88,005)	$	4,339	$	1,945	$	120,466


	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings (Accumulated Deficit)		Noncontrolling Interest		Total
	Shares	Amount
Balance, March 31, 2023	9,212,390	$	119	$	200,453	$	(85,965)	$	(3,752)	$	1,015	$	111,870
Net income	—	—		—		—		2,895		4		2,899


Issuance of restricted stock, net of forfeitures	(29,620)	—		—		—		—		—		—

Dividends declared ($0.15 per share)	—	—		(1,192)		—		(102)		—		(1,294)
Stock-based compensation expense	—	—		1,624		—		—		—		1,624




Balance, June 30, 2023	9,182,770	$	119	$	200,885	$	(85,965)	$	(959)	$	1,019	$	115,099

See Notes to Condensed Consolidated Financial Statements.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

For the Six Months Ended June 30, 2024 and 2023

(In thousands, except share amounts)

(Unaudited)


	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings (Accumulated Deficit)		Noncontrolling Interest		Total
	Shares	Amount
Balance, December 31, 2023	9,140,760	$	119	$	201,622	$	(85,990)	$	4,650	$	2,045	$	122,446
Net income (loss)	—	—		—		—		53		(100)		(47)



Issuance of restricted stock, net of forfeitures	317,336	4		(4)		—		—		—		—

Dividends declared ($0.30 per share)	—	—		(2,466)		—		(364)		—		(2,830)
Stock-based compensation expense	—	—		2,912		—		—		—		2,912

Purchases of treasury stock	(86,346)	—		—		(1,075)		—		—		(1,075)

Restricted stock returned for payment of taxes	(78,303)	—		—		(940)		—		—		(940)
Balance, June 30, 2024	9,293,447	$	123	$	202,064	$	(88,005)	$	4,339	$	1,945	$	120,466


	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings (Accumulated Deficit)		Noncontrolling Interest		Total
	Shares	Amount
Balance, December 31, 2022	8,881,831	$	115	$	199,914	$	(85,128)	$	(4,253)	$	—	$	110,648

Net income	—	—		—		—		3,588		25		3,613
Acquisition	—	—		—		—		—		994		994
Issuance of restricted stock, net of forfeitures	368,682	4		(4)		—		—		—		—

Dividends declared ($0.30 per share)	—	—		(2,397)		—		(294)		—		(2,691)
Stock-based compensation expense	—	—		3,372		—		—		—		3,372


Restricted stock returned for payment of taxes	(67,743)	—		—		(837)		—		—		(837)
Balance, June 30, 2023	9,182,770	$	119	$	200,885	$	(85,965)	$	(959)	$	1,019	$	115,099

See Notes to Condensed Consolidated Financial Statements.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Six Months Ended June 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(47)	$	3,613
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	326		346
Amortization of intangible assets	2,074		2,063
Net change in unrealized (appreciation) depreciation on investments	(1,004)		(499)

Stock-based compensation expense	2,912		3,372
Deferred income taxes	(47)		228
Non-cash lease expense	546		630
Loss on asset disposition	—		69
Gain on remeasurement of lease liabilities	—		(119)


Fair value change of contingent consideration	1,858		(5,138)


Change in operating assets and liabilities:
Net (purchases) sales of trading securities	11,430		(7,083)
Accounts receivable	70		919
Other current assets	2		1,141
Accounts payable and accrued liabilities	(814)		(796)
Compensation and benefits payable	(4,217)		(3,345)
Income taxes payable	(740)		1,490
Other liabilities	(664)		(793)
Net cash provided by (used in) operating activities	11,685		(3,902)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition, net of cash acquired	—		(741)


Purchase of property and equipment	(24)		(97)

Purchase of investments	(1,500)		—

Net cash used in investing activities	(1,524)		(838)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	(1,075)		—

Restricted stock returned for payment of taxes	(940)		(837)
Payment of contingent consideration in acquisition	(1,815)		—
Cash dividends paid	(2,983)		(3,053)
Net cash used in financing activities	(6,813)		(3,890)

NET CHANGE IN CASH AND CASH EQUIVALENTS	3,348		(8,630)
Cash and cash equivalents, beginning of period	20,422		23,859
Cash and cash equivalents, end of period	$	23,770	$	15,229

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	$	1,008	$	300
Accrued dividends	$	2,176	$	2,065

See Notes to Condensed Consolidated Financial Statements.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. DESCRIPTION OF THE BUSINESS

Westwood Holdings Group, Inc. (“Westwood”, “the Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Delaware on December 12, 2001. Westwood manages investment assets and provides services for its clients through its wholly-owned subsidiaries, Westwood Management Corp., Westwood Advisors, L.L.C. and Salient Advisors, L.P. (referred to hereinafter together as “Westwood Management”), and Westwood Trust.

Westwood Management provides investment advisory services to institutional clients, a family of mutual funds called the Westwood Funds®, other mutual funds, individual investors and clients of Westwood Trust. Westwood Trust provides trust and custodial services and participation in self-sponsored common trust funds (“CTFs”) to institutions and high net worth individuals. Revenue is largely dependent on the total value and composition of assets under management ("AUM") and fluctuations in financial markets and in the composition of AUM impact our revenues and results of operations.

Westwood Management is registered with the Securities and Exchange Commission ("SEC") as an investment adviser under the Investment Advisers Act of 1940. Westwood Trust is chartered and regulated by the Texas Department of Banking.

Acquisition of Broadmark Asset Management LLC

We acquired a 48% interest in Broadmark Asset Management LLC ("Broadmark") as a result of our 2022 acquisition of the asset management business of Salient Partners, L.P. (the "Salient Acquisition"). In January 2023 we acquired an additional 32% interest in Broadmark for $1.2 million (net of cash acquired), increasing our ownership of Broadmark to approximately 80%, which represents a controlling interest for financial statement consolidation purposes (the "Broadmark Acquisition"). Broadmark is a San Francisco-based registered investment adviser ("RIA") managing and/or sub-advising mutual funds, retail and institutional separately-managed accounts.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the SEC.

The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation.

Recent Accounting Pronouncements

Segment Reporting

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires an entity to disclose significant segment expenses and other segment items on an annual and interim basis, and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires an entity to disclose the title and position of the Chief Operating Decision Maker. This ASU does not change how an entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. An entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We expect this ASU to impact our disclosures, with no impact to our results of operations, cash flows or financial condition.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Income Taxes

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the income tax rate reconciliation and income taxes paid. ASU 2023-09 requires an entity to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories, with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign, and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. The new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all periods presented. We expect this ASU to impact our disclosures, with no impact to our results of operations, cash flows, or financial condition.

3. BUSINESS COMBINATIONS

Broadmark

Westwood completed the Broadmark Acquisition in January 2023, increasing our investment by approximately 32%, to 80%, giving Westwood a controlling interest and requiring an allocation of the Broadmark Acquisition purchase price. The total consideration recorded for accounting purposes consisted of $1.2 million in cash (net of cash acquired).

Prior to the Broadmark Acquisition, Westwood had a $2.4 million equity method investment in Broadmark, the fair value of which was estimated using recent market transactions. Westwood's equity method investment was derecognized without gain or loss following the Broadmark Acquisition, however there was a corresponding increase to goodwill.

The Broadmark Acquisition was accounted for using the acquisition method of accounting. Accordingly, the purchase price was allocated to tangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The total consideration of $1.6 million has been allocated based on valuations of acquired assets and assumed liabilities in connection with the acquisition.

The allocation of the Broadmark Acquisition purchase price was as follows (in thousands):



Cash consideration	$	1,570
Cash acquired	(402)
Total consideration, net of cash acquired	$	1,168

Fair value of Westwood's investment in Broadmark before the business combination	2,417
Fair value of noncontrolling interest in Broadmark	994

Assets
Accounts receivable	$	629
Other current assets	150
Property and equipment	11
Other long-term assets	511
Liabilities
Accounts payable and accrued liabilities	919
Total Identifiable Net Assets	$	382

Goodwill	$	4,197

Westwood recognized approximately $1.0 million of a noncontrolling interest in a consolidated subsidiary at the acquisition date. Fair value of this interest was estimated using recent market transactions.

At the time of the Broadmark Acquisition, the Company believed that its expanded operational opportunities, enhanced range of investment strategies and expected realization of synergies were the primary factors that contributed to a total purchase price that resulted in the recognition of goodwill. Goodwill arising from the Broadmark Acquisition is not expected to be deductible for tax purposes.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

For the three and six months ended June 30, 2024, the Company has included $0.9 million of revenue and $0.1 million of net income, and $1.9 million of revenue and $0.5 million of net loss, respectively, related to Broadmark in its Condensed Consolidated Statements of Comprehensive Income (Loss).

For the three and six months ended June 30, 2023, the Company has included $1.1 million of revenue and $0.1 million of net income, and $2.3 million of revenue and $0.1 million of net income, respectively, related to Broadmark in its Condensed Consolidated Statements of Comprehensive Income (Loss).

Pro Forma Financial Information

The following unaudited pro forma results of operations for the three and six months ended June 30, 2023 assume the Broadmark Acquisition had occurred as of January 1, 2022. This unaudited pro forma information should not be relied upon as being necessarily indicative of historical results that would have been obtained had the Broadmark Acquisition actually occurred on that date, nor of results that may be obtained in the future.


	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
(in thousands)
Total revenues	$	21,945	$	44,672
Net income	$	2,899	$	3,613

Salient Acquisition Contingent Consideration

As part of the Salient Acquisition, the Company agreed to pay additional consideration based on specified financial milestones being met in 2024 and 2025. In the second quarter of 2024, the Company paid contingent consideration of $1.8 million for the Revenue Retention earn-out. Additional amounts earned, if any, will be paid in 2024 or 2025 and are recorded as a liability on the Condensed Consolidated Balance Sheets.

The contingent consideration liability is classified as Level 3 in the fair value hierarchy and revalued quarterly, see Note 7, "Fair Value Measurements," for additional information related to the fair value measurement of the contingent consideration.

4. REVENUE

Revenue Recognition

Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues such as gains and losses from our seed money investments into new investment strategies. The "Other, net” revenues on our Condensed Consolidated Statements of Comprehensive Income (Loss) are the unrealized gains and losses on our seed money investments, and our seed money investments are included in "Investments, at fair value" on our Condensed Consolidated Balance Sheets. Advisory and trust fees are calculated based on a percentage of AUM or AUA, as applicable, and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services, we have an enforceable right to payment.

Advisory Fee Revenues

Our advisory fees are generated by Westwood Management for managing client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and AUA and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts.

Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) sub-advisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our suite of investment strategies for institutional investors and wealth management accounts.

Arrangements with Performance-Based Obligations

A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time. Performance-based fees are paid after the performance obligation has been satisfied.

The revenue is based on future market performance and is subject to many factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.

Trust Fee Revenues

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred fee revenues.

Revenue Disaggregated

The following table presents our revenue disaggregated by account type (in thousands).


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Advisory Fees:
Institutional	$	9,718	$	9,443	$	19,189	$	19,046
Mutual Funds	6,856		7,093		13,767		14,279
Wealth Management	565		263		1,000		507
Performance-based	—		—		—		555
Trust Fees	5,227		5,024		10,340		10,055

Other, net	322		122		1,124		230
Total revenues	$	22,688	$	21,945	$	45,420	$	44,672

We have clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):


Three Months Ended June 30, 2024	Advisory		Trust		Other		Total


Canada	$	260	$	—	$	—	$	260

United States	16,879		5,227		322		22,428
Total	$	17,139	$	5,227	$	322	$	22,688


Three Months Ended June 30, 2023	Advisory		Trust		Other		Total


Canada	$	276	$	—	$	—	$	276

United States	16,523		5,024		122		21,669
Total	$	16,799	$	5,024	$	122	$	21,945

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)


Six Months Ended June 30, 2024	Advisory		Trust		Other		Total


Canada	$	517	$	—	$	—	$	517

United States	33,439		10,340		1,124		44,903
Total	$	33,956	$	10,340	$	1,124	$	45,420


Six Months Ended June 30, 2023	Advisory		Trust		Other		Total


Canada	$	568	$	—	$	—	$	568

United States	33,819		10,055		230		44,104
Total	$	34,387	$	10,055	$	230	$	44,672

5. SEGMENT REPORTING

We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. The Company’s segment information is prepared on the same basis that management uses to review the financial information for operational decision-making purposes.

The Company's Chief Operating Decision Maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues.

Westwood Holdings Group, Inc., the parent company of Advisory and Trust, does not have revenues and is the entity in which we record typical holding company expenses including employee compensation and benefits for holding company employees, directors’ fees and investor relations costs. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment.

Advisory

Our Advisory segment provides investment advisory services to (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals, (ii) sub-advisory relationships where Westwood provides investment management services to the Westwood Funds®, funds offered by other financial institutions and funds offered by our Trust segment and (iii) pooled investment vehicles, including collective investment trusts. Salient and Westwood Management, which provide investment advisory services to similar clients, are included in our Advisory segment.

Trust

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Westwood Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment.


(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Three Months Ended June 30, 2024
Net fee revenues from external sources	$	17,139	$	5,227	$	—	$	—	$	22,366
Net intersegment revenues	$	1,448	$	55	$	—	$	(1,503)	$	—

Other, net	$	322	$	—	$	—	$	—	$	322
Total revenues	$	18,909	$	5,282	$	—	$	(1,503)	$	22,688

Segment assets	$	286,921	$	46,553	$	13,465	$	(199,565)	$	147,374
Segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501
Segment equity-method investments	$	4,578	$	—	$	—	$	—	$	4,578
Segment expenditures for long-lived assets	$	1	$	1	$	22	$	—	$	24

Three Months Ended June 30, 2023
Net fee revenues from external sources	$	16,799	$	5,024	$	—	$	—	$	21,823
Net intersegment revenues	$	1,587	$	77	$	—	$	(1,664)	$	—

Other, net	$	122	$	—	$	—	$	—	$	122
Total revenues	$	18,508	$	5,101	$	—	$	(1,664)	$	21,945

Segment assets	$	268,184	$	44,412	$	14,831	$	(185,322)	$	142,105
Segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501
Segment equity-method investments	$	4,180	$	—	$	—	$	—	$	4,180
Segment expenditures for long-lived assets	$	31	$	14	$	52	$	—	$	97


(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Six Months Ended June 30, 2024
Net fee revenues from external sources	$	33,956	$	10,340	$	—	$	—	$	44,296
Net intersegment revenues	3,022		113		—		(3,135)		—

Other, net	1,124		—		—		—		1,124
Total revenues	$	38,102	$	10,453	$	—	$	(3,135)	$	45,420

Six Months Ended June 30, 2023
Net fee revenues from external sources	$	34,387	$	10,055	$	—	$	—	$	44,442
Net intersegment revenues	3,249		154		—		(3,403)		—

Other, net	230		—		—		—		230
Total revenues	$	37,866	$	10,209	$	—	$	(3,403)	$	44,672

6. INVESTMENTS

Since 2018, in addition to the Company's acquisitions of Salient and Broadmark, whose results are included in our Condensed Consolidated Statements of Comprehensive Income (Loss), the Company has made strategic investments to enhance the services we provide our customers. Each of these investments is discussed below.

We made a strategic investment during 2018 in InvestCloud, which is included in “Investments” on our Condensed Consolidated Balance Sheets at its carrying value of $4.4 million. This investment represents an equity interest in a private company without a readily determinable fair value. The Company has elected to apply the measurement alternative of cost

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

minus impairment, if any, plus or minus changes resulting from observable price changes. Following InvestCloud's recapitalization in the first quarter of 2021, we re-invested $4.4 million of our proceeds into newly-issued shares of InvestCloud. No impairments of this investment were recorded during the three and six months ended June 30, 2024 or 2023.

Our investment in Vista is included in “Investments” on our Condensed Consolidated Balance Sheets at its carrying value of $2.8 million. This investment represents an equity interest in a private company without a readily determinable fair value. The Company has elected to apply the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes. No impairments of this investment were recorded during the three and six months ended June 30, 2024 or 2023.

In 2024 we made a strategic investment in the Texas Stock Exchange, included in “Investments” on our Condensed Consolidated Balance Sheets at its carrying value of $1.5 million. This investment represents an equity interest in a private company without a readily determinable fair value. The Company has elected to apply the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes. No impairments of this investment were recorded during the three and six months ended June 30, 2024.

Private Investment Funds. In 2019, we made a $0.3 million investment in Westwood Hospitality and in 2023 and 2024, we made $1.0 million investments in private energy funds. These investments are included in “Noncurrent investments at fair value” on our Condensed Consolidated Balance Sheets and are measured at fair value on a recurring basis using net asset value ("NAV") as a practical expedient.

Zarvona Energy Fund GP, L.P. and Zarvona Energy Fund II-A, L.P. These investments represent ownership interests in non-controlled partnerships. These investments are included in “Equity method investments” on our Condensed Consolidated Balance Sheets and are measured based on our share of the net earnings or losses of the investees.

All other investments are carried at fair value on a recurring basis and are accounted for as trading securities.

Investments carried at fair value are presented in the table below (in thousands):


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
June 30, 2024:
U.S. Government securities	$	12,653	$	233	$	(66)	$	12,820
Money market funds	4,293		138		—		4,431
Equity funds	1,507		265		(123)		1,649
Exchange-traded funds	1,200		—		—		1,200
Equities	169		57		(108)		118
Exchange-traded bond funds	149		—		(3)		146
Total trading securities	19,971		693		(300)		20,364
Private investment funds	1,450		399		(24)		1,825

Total investments carried at fair value	$	21,421	$	1,092	$	(324)	$	22,189

December 31, 2023:
U.S. Government securities	$	22,522	$	14	$	(75)	$	22,461
Money market funds	5,367		111		—		5,478
Equity funds	4,295		195		(260)		4,230
Equities	381		—		(24)		357
Exchange-traded bond funds	152		—		(4)		148
Total trading securities	32,717		320		(363)		32,674
Private investment fund	265		7		(31)		241

Total investments carried at fair value	$	32,982	$	327	$	(394)	$	32,915

The investments shown below are included in our Condensed Consolidated Balance Sheets as Equity method investments, as follows (in thousands):

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)


	June 30, 2024				December 31, 2023
	Carrying value		Ownership		Carrying value		Ownership
Zarvona Energy Fund GP, L.P.	$	3,859	50.0	%	$	3,565	50.0	%
Zarvona Energy Fund II-A, L.P.	700		0.5	%	700		0.5	%
Salient MLP Total Return Fund, L.P.	11		—	%	11		—	%
Salient MLP Total Return TE Fund, L.P.	8		0.2	%	8		0.2	%
Total	$	4,578			$	4,284

7. FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and requires disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows:

•Level 1 – quoted market prices in active markets for identical assets

•Level 2 – inputs other than quoted prices that are directly or indirectly observable

•Level 3 – significant unobservable inputs where there is little or no market activity

Our strategic investments in InvestCloud, Vista and Texas Stock Exchange, discussed in Note 6 “Investments,” are excluded from the recurring fair value table shown below because we have elected to apply the measurement alternative for those investments.

The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands):


	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
As of June 30, 2024:
Investments in trading securities	$	20,364	$	—	$	—	$	—	$	20,364
Private investment funds	—		—		—		1,825		1,825

Total assets measured at fair value	$	20,364	$	—	$	—	$	1,825	$	22,189
Salient Acquisition contingent consideration	—		—		10,176		—		10,176
Total liabilities measured at fair value	$	—	$	—	$	10,176	$	—	$	10,176

As of December 31, 2023:
Investments in trading securities	$	32,674	$	—	$	—	$	—	$	32,674
Private investment fund	—		—		—		241		241

Total assets measured at fair value	$	32,674	$	—	$	—	$	241	$	32,915
Salient Acquisition contingent consideration	—		—		10,133		—		10,133
Total liabilities measured at fair value	$	—	$	—	$	10,133	$	—	$	10,133
(1) Comprised of certain investments measured at fair value using NAV as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets.

Prior to our exchange of Charis shares for shares in Vista in 2023, our investment in Charis was included within Level 3 of the fair value hierarchy as we valued it utilizing inputs not observable in the market. Historically, our investment was measured at fair value on a recurring basis using a market approach based on either a price to tangible book value multiple range determined to be reasonable in the current environment, or on market transactions. On April 3, 2023, Charis was acquired by Vista in a transaction in which the Company exchanged its shares in Charis for shares in Vista.

The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis for the periods presented (in thousands):

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)


	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Beginning balance	$	2,792	$	2,792

Exchange of shares	(2,792)		(2,792)



Ending balance	$	—	$	—

The following table summarizes the changes in Level 3 liabilities measured at fair value on a recurring basis for the periods presented (in thousands):


	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Beginning balance	$	7,184	$	11,841	$	10,133	$	12,901
Payments	(1,815)		—		$	(1,815)	—
Total (gains) losses included in earnings	4,807		(4,078)		1,858		(5,138)
Ending balance	$	10,176	$	7,763	$	10,176	$	7,763

The June 30, 2024 contingent consideration fair value of $10.2 million was valued based upon updated revenue growth projections following asset appreciation in the quarter and revised asset flow expectations. The fair value of contingent consideration related to both the revenue retention earn-out and the growth earn-out is measured using the Monte Carlo simulation model, which considered assumptions including revenue growth projections, revenue volatility, risk free rates and discount rates. The projected contingent payment is discounted to the current period using a discounted cash flow model. Increases or decreases in projected revenues, probabilities of payment, discount rates, projected payment dates and other inputs may result in significantly higher or lower fair value measurements.

The following table represents the range of the unobservable inputs utilized in the fair value measurement of the contingent consideration classified as level 3:


As of June 30, 2024		Range
Earn-out	Unobservable Input	Low	High	Weighted Average Rate
Revenue Retention earn-out	Discount rate	7.5%	8.5%	8.0%
	Volatility	—%	5.0%	—%

Growth earn-out	Discount rate	7.5%	8.5%	8.0%
	Volatility	1.0%	11.0%	6.0%

As of December 31, 2023		Range
Earn-out	Unobservable Input	Low	High	Weighted Average Rate
Revenue Retention earn-out	Discount rate	11.5%	12.0%	11.8%
	Volatility	8.3%	16.3%	11.3%

Growth earn-out	Discount rate	12.8%	13.3%	13.0%
	Volatility	14.9%	24.9%	19.9%

8. INCOME TAXES

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Our effective income tax rate differed from the 21% statutory rate for the three and six months ended June 30, 2024 and 2023 due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.

9. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per common share is computed by dividing comprehensive income (loss) attributable to Westwood Holdings Group, Inc. by the weighted average number of shares outstanding for the applicable period. Diluted earnings (loss) per share is computed based on the weighted average number of shares outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors.

There were approximately 6,000 and 106,000 anti-dilutive restricted shares outstanding for the three months ended June 30, 2024 and June 30, 2023, respectively. There were approximately 13,000 and 108,000 anti-dilutive restricted shares outstanding for the six months ended June 30, 2024 and June 30, 2023, respectively.

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share and share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	(2,243)	$	2,895	$	53	$	3,588
Weighted average shares outstanding - basic	8,218,596		7,991,228		8,158,812		7,922,954
Dilutive potential shares from unvested restricted shares	—		140,105		279,619		127,344

Weighted average shares outstanding - diluted	8,218,596		8,131,333		8,438,431		8,050,298
Earnings (loss) per share:
Basic	$	(0.27)	$	0.36	$	0.01	$	0.45
Diluted	$	(0.27)	$	0.36	$	0.01	$	0.45

10. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying liabilities at the date of acquisition. Goodwill is not amortized but is reviewed for impairment annually, or between annual assessments if a triggering event occurs or circumstances change that would more likely than not result in the fair value of a reporting unit below its carrying amount. We completed our most recent annual goodwill impairment assessment during the third quarter of 2023 and determined that no goodwill impairment related to the Advisory or Trust segment was required. There was no goodwill impairment during the three and six months ended June 30, 2024 or June 30, 2023.

Changes in goodwill were as follows (in thousands):


	Trust Segment		Advisory Segment		Total
Balance at December 31, 2023	$	16,401	$	23,100	$	39,501

Balance at June 30, 2024	$	16,401	$	23,100	$	39,501


	Trust Segment		Advisory Segment		Total
Balance at December 31, 2022	$	16,401	$	19,331	$	35,732
Salient Acquisition adjustment1	—		(428)		(428)
Broadmark Acquisition	—		4,197		4,197
Balance at June 30, 2023	$	16,401	$	23,100	$	39,501

1 Represents subsequent purchase price adjustments for the Salient Acquisition.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Other Intangible Assets

Our intangible assets represent the acquisition date fair value of acquired client relationships, trade names, non-compete agreements and internally developed software and are reflected net of amortization. In valuing these assets, we made significant estimates regarding their useful lives, growth rates and potential attrition. We periodically review intangible assets for events or circumstances that would indicate impairment. No intangible asset impairments were recorded during the three and six months ended June 30, 2024 or June 30, 2023.

11. LEASES

As of June 30, 2024 there have been no material changes outside the ordinary course of business to our leases since December 31, 2023. For information regarding our leases, refer to Note 12 “Leases” in Part IV, Item 15. “Exhibits, Financial Statement Schedules” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

12. STOCKHOLDERS' EQUITY

Share Repurchase Program

As of June 30, 2024, there are $0.8 million of shares that may yet be repurchased under our plan.

During the three and six months ended June 30, 2024, the Company repurchased 86,346 shares of our common stock at an average price of $12.45 per share, including commissions, for an aggregate purchase price of $1.1 million under our share repurchase plan. During the three and six months ended June 30, 2023, the Company did not repurchase any shares of our common stock.

13. VARIABLE INTEREST ENTITIES

We evaluated (i) our relationship as sponsor of the Common Trust Funds (“CTFs”) and managing member of the private equity funds Westwood Hospitality, Westwood Technology Opportunities Fund I, LP and Westwood Energy Secondaries (collectively the “Private Funds”), (ii) our advisory relationships with the Westwood Funds® and (iii) our investments in InvestCloud, Vista, Zarvona Energy Fund GP and Zarvona Energy Fund II-A as discussed in Note 6 “Investments” (“Private Equity”) to determine whether each of these entities is a variable interest entity (“VIE”) or voting ownership entity (“VOE”).

Based on our analyses, we determined that the CTFs, Private Funds and Zarvona Energy Fund II-A were VIEs, as the at-risk equity holders do not have the ability to direct the activities that most significantly impact the entities' economic performance, and, while the Company and its representatives have a majority control of the entities' respective boards of directors and can influence the respective entities' management and affairs, the Company is not exposed to a majority of the economics of those entities and does not qualify as primary beneficiaries for those entities. As we do not qualify as primary beneficiaries for those entities, we have not consolidated our investments in those entities for the periods ending June 30, 2024 and December 31, 2023.

Based on our analyses, we determined the Westwood Funds®, InvestCloud, Vista, and Zarvona Energy Fund GP (i) have sufficient equity at risk to finance the entities' activities independently, (ii) have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entities that most significantly impact the entities' economic performance and (iii) are not structured with disproportionate voting rights and are VOEs. As we do not own controlling financial interests in those entities, we have not consolidated our investments in those entities for the periods ending June 30, 2024 and December 31, 2023.

We recognized fee revenue from the Westwood VIEs and Westwood VOEs as follows (in millions):


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Fee Revenues	$	7.8	$	7.9	$	15.6	$	15.9

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

The following table displays the AUM and the risk of loss in each vehicle (in millions):


	As of June 30, 2024
	Assets Under Management		Corporate Investment	Amount at Risk
VIEs/VOEs:
Westwood Funds®	$	3,943
Common Trust Funds	696

Private Funds	83		0.2	0.2
Private Equity	—		7.8	7.8
All other assets:
Wealth Management	3,467
Institutional	7,587
Total Assets Under Management	$	15,776

14. RELATED PARTY TRANSACTIONS

The Company engages in transactions with its affiliates in the ordinary course of business. Westwood Management provides investment advisory services to the Westwood Funds®. Under the terms of the investment advisory agreements, the Company earns quarterly fees paid by clients of the fund or by the funds directly. The fees are based on negotiated fee schedules applied to AUM. For the three and six months ended June 30, 2024 and June 30, 2023, the Company earned immaterial fees from the affiliated funds.

One of our directors served as a consultant to the Company under a consulting agreement. We recorded immaterial expenses related to this agreement for the three and six months ended June 30, 2023.

15. SUBSEQUENT EVENTS

Dividend Declared

On July 31, 2024, the Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock payable on October 1, 2024 to stockholders of record on September 2, 2024.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Statements in this report and the Annual Report to Stockholders that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including, without limitation, words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “should,” “could,” “goal,” “potentially,” “may,” “designed” and other similar expressions, constitute 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. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation, the risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 and those risks set forth below:

•the composition and market value of our AUM and AUA;

•our ability to maintain our fee structure in light of competitive fee pressures;

•risks associated with actions of activist stockholders;

•distributions to our common stockholders have included and may in the future include a return of capital;

•inclusion of foreign company investments in our AUM;

•regulations adversely affecting the financial services industry;

•our ability to maintain effective cyber security;

•litigation risks;

•our ability to develop and market new investment strategies successfully;

•our reputation and our relationships with current and potential customers;

•our ability to attract and retain qualified personnel;

•our ability to perform operational tasks;

•our ability to select and oversee third-party vendors;

•our dependence on the operations and funds of our subsidiaries;

•our ability to maintain effective information systems;

•our ability to prevent misuse of assets and information in the possession of our employees and third-party vendors, which could damage our reputation and result in costly litigation and liability for our clients and us;

•our stock is thinly traded and may be subject to volatility;

•competition in the investment management industry;

•our ability to avoid termination of client agreements and the related investment redemptions;

•the significant concentration of our revenues in a small number of customers;

•we have made and may continue to make business combinations as a part of our business strategy, which may present certain risks and uncertainties;

•our relationships with investment consulting firms;

•our ability to identify and execute on our strategic initiatives;

•our ability to declare and pay dividends;

•our ability to fund future capital requirements on favorable terms;

•our ability to properly address conflicts of interest;

•our ability to maintain adequate insurance coverage; and

•our ability to maintain an effective system of internal controls.

You should not unduly rely on these forward-looking statements, which speak only as of the date of this report. We are not obligated and do not undertake an obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances occurring after the date of this report or to reflect the occurrence of unanticipated events or otherwise.

Overview

We manage investment assets and provide services for our clients through our subsidiaries, Westwood Management Corp., Westwood Advisors, L.L.C. and Salient Advisors, LP (each of which is an SEC-registered investment advisor and referred to hereinafter together as “Westwood Management”) and Westwood Trust. Westwood Management provides investment advisory services to institutional investors, a family of mutual funds called the Westwood Funds®, other mutual funds, individuals and clients of Westwood Trust.

Westwood Trust provides trust and custodial services and participation in common trust funds to institutions and high net worth individuals. Our revenues are generally derived from fees based on a percentage of AUM.

Our revenues are generally derived from fees based on a percentage of AUM and AUA, and Westwood Management and Westwood Trust collectively had AUM of approximately $15.8 billion and AUA of approximately $1.0 billion at June 30, 2024. We have established a track record of delivering competitive, risk-adjusted returns for our clients.

With respect to most of our AUM, we utilize a “value” investment style focused on achieving superior long-term, risk-adjusted returns by investing in companies with high levels of free cash flow, improving returns on equity and strengthening balance sheets that are well positioned for growth but whose value is not fully recognized in the marketplace. This investment approach is designed to limit downside during unfavorable periods and provide superior real returns over the long term. Our investment teams have significant industry experience. Our investment team members have an average investment experience of over twenty years.

We have built a foundation in terms of personnel and infrastructure to support a much larger business and we have developed investment strategies that we believe will be sought after within our target institutional, wealth management and intermediary markets. Developing new products and growing the organization has resulted in our incurring expenses that, in some cases, have not yet generated significant offsetting revenues. We believe that investors will recognize the potential for new revenue streams inherent in these products and services; however, there is no guarantee that they will occur.

Revenues

We derive our revenues from investment advisory fees, trust fees and other revenues. Our advisory fees are generated by Westwood Management, which manages client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and AUA and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Certain of our clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. We record revenue for performance-based fees at the end of the measurement period. Since our advance paying clients’ billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter, and our Consolidated Financial Statements contain no deferred advisory fee revenues.

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. Trust fees are primarily calculated quarterly in arrears based on a daily average of AUM for the quarter. Since billing periods for most of Westwood Trust's clients coincide with the calendar quarter, revenue is fully recognized within the quarter, and our Consolidated Financial Statements contain no deferred advisory fee revenues.

Our other revenues primarily consist of investment income from seed money investments into new investment strategies.

Employee Compensation and Benefits

Employee compensation and benefits costs generally consist of salaries, sales commissions, incentive compensation, stock-based compensation expense and benefits.

Sales and Marketing

Sales and marketing costs relate to our marketing efforts, including travel and entertainment, direct marketing and advertising costs.

Westwood Mutual Funds

Expenses for Westwood mutual funds relate to our marketing, distribution and administration of the Westwood Funds®.

Information Technology

Information technology expenses include costs associated with proprietary investment research tools, maintenance and support, computing hardware, software licenses, telecommunications and other related costs.

Professional Services

Professional services expenses generally consist of costs associated with sub-advisory fees, audit, legal and other professional services.

General and Administrative

General and administrative expenses generally consist of costs associated with the lease of office space, amortization, depreciation, insurance, custody expense, Directors' fees, investor relations, licenses and fees, office supplies and other miscellaneous expenses.

(Gain) loss from change in fair value of contingent consideration

(Gain) loss from change in fair value of contingent consideration consists of fair value adjustments related to contingent consideration from our 2022 acquisition of Salient.

Acquisition expenses

Acquisition expenses consist of costs related to the Salient Acquisition.

Net Change in Unrealized Appreciation (Depreciation) on Private Investments

Net change in unrealized appreciation (depreciation) on private investments includes changes in the value of our private equity investments.

Net Investment Income

Net investment income primarily includes interest and dividend income on fixed income securities and money market funds.

Other Income

Other income primarily consists of income from the sublease of a portion of our corporate offices and the receipt of life insurance proceeds.

Firm-wide Assets Under Management

Firm-wide assets under management of $16.8 billion at June 30, 2024 consisted of $15.8 billion of AUM and $1.0 billion of AUA.

AUM increased $0.8 billion to $15.8 billion at June 30, 2024 compared with $15.0 billion at June 30, 2023. The average of beginning and ending AUM for the second quarter of 2024 was $16.0 billion compared to $14.9 billion for the second quarter of 2023.

The following table displays AUM as of June 30, 2024 and 2023 (in millions):



	As of June 30,
	2024		2023		Change
Institutional(1)	$	7,649	$	6,969	10	%
Wealth Management(2)	4,184		3,851		9
Mutual Funds(3)	3,943		4,169		(5)
Total AUM(4)	$	15,776	$	14,989	5	%

(1)Institutional includes (i) separate accounts of corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) sub-advisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including collective investment trusts; and (iv) managed account relationships with brokerage firms and other RIAs that offer Westwood products to their customers.

(2)Wealth Management includes assets for which Westwood Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals pursuant to trust or agency agreements and assets for which Westwood Advisors, L.L.C. provides advisory services to high net worth individuals. Investment sub-advisory services are provided for the common trust funds by Westwood Management and unaffiliated sub-advisors. For certain assets in this category Westwood Trust provides limited custodial services for a minimal or no fee, viewing these assets as potentially converting to fee-generating managed assets in the future.

(3)Mutual Funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, institutional investors and wealth management accounts.

(4)AUM excludes $1.0 billion and $1.2 billion of AUA as of June 30, 2024 and 2023, respectively, related to our model portfolios for which we provide investment advice on a fee basis without having investment management authority.

Roll-Forward of Assets Under Management


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Institutional
Beginning of period assets*	$	7,742	$	7,039	$	7,215	$	6,968
Inflows	277		109		546		239
Outflows	(291)		(415)		(540)		(576)
Net client flows	(14)		(306)		6		(337)

Market appreciation (depreciation)	(79)		236		457		338
Net change	(93)		(70)		463		1
End of period assets	$	7,649	$	6,969	$	7,678	$	6,969

Wealth Management
Beginning of period assets	$	4,219	$	3,765	$	4,140	$	3,666
Inflows	72		88		141		178
Outflows	(142)		(146)		(281)		(276)
Net client flows	(70)		(58)		(140)		(98)
Market appreciation (depreciation)	35		144		164		283
Net change	(35)		86		24		185
End of period assets	$	4,184	$	3,851	$	4,164	$	3,851

Mutual Funds
Beginning of period assets*	$	4,189	$	4,147	$	4,104	$	4,145
Inflows	147		218		358		522
Outflows	(386)		(336)		(716)		(714)
Net client flows	(239)		(118)		(358)		(192)
Market appreciation (depreciation)	(7)		140		197		216
Net change	(246)		22		(161)		24
End of period assets	$	3,943	$	4,169	$	3,943	$	4,169

Total AUM
Beginning of period assets	$	16,150	$	14,951	$	15,459	$	14,779
Inflows	496		415		1,045		939
Outflows	(819)		(897)		(1,537)		(1,566)
Net client flows	(323)		(482)		(492)		(627)

Market appreciation (depreciation)	(51)		520		818		837
Net change	(374)		38		326		210
End of period assets	$	15,776	$	14,989	$	15,785	$	14,989

* Certain assets under management acquired from Salient were reclassified from Mutual Funds to Institutional as of December 31, 2022 to be consistent with the classification of existing assets.

Three months ended June 30, 2024 compared to the three months ended June 30, 2023

The change in AUM for the three months ended June 30, 2024 was due to net outflows of $0.3 billion.

The change in AUM for the three months ended June 30, 2023 was due to market appreciation of $0.5 billion offset by net outflows of $0.5 billion. Net outflows were primarily related to our Income Opportunity strategy.

Six months ended June 30, 2024 compared to the six months ended June 30, 2023

The $0.3 billion increase in AUM for the six months ended June 30, 2024 was due to market appreciation of $0.8 billion offset by net outflows of $0.5 billion. Net outflows were primarily related to our LargeCap Value strategy.

The $0.2 billion increase in AUM for the six months ended June 30, 2023 was due to market appreciation of $0.8 billion and net outflows of $0.6 billion. Net outflows were primarily related to our Income Opportunity and Quality AllCap strategies.

Roll-Forward of Assets Under Advisement


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Assets Under Advisement
Beginning of period assets	$	1,044	$	1,180	$	1,079	$	1,255
Inflows	20		38		51		84
Outflows	(71)		(94)		(182)		(189)
Net client flows	(51)		(56)		(131)		(105)
Market appreciation (depreciation)	(5)		46		40		20
Net change	(56)		(10)		(91)		(85)
End of period assets	$	988	$	1,170	$	988	$	1,170

Results of Operations

The following table (dollars in thousands) and discussion of our results of operations are based upon data derived from the Condensed Consolidated Statements of Comprehensive Income (Loss) contained in our Condensed Consolidated Financial Statements and should be read in conjunction with those statements included elsewhere in this report.



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024		2023		Change		2024		2023		Change
Revenues:
Advisory fees: asset-based	$	17,139	$	16,799	2	%	$	33,956	$	33,832	—	%
Advisory fees: performance-based	—		—		NM		—		555		(100)
Trust fees: asset-based	5,227		5,024		4		10,340		10,055		3

Other, net	322		122		164		1,124		230		389
Total revenues	22,688		21,945		3		45,420		44,672		2
Expenses:
Employee compensation and benefits	13,638		13,688		0		28,349		27,890		2
Sales and marketing	755		764		(1)		1,383		1,504		(8)
Westwood mutual funds	855		746		15		1,576		1,478		7
Information technology	2,350		2,566		(8)		4,640		4,949		(6)
Professional services	1,450		1,355		7		2,939		2,884		2
General and administrative	3,011		3,235		(7)		5,912		6,281		(6)
(Gain) loss from change in fair value of contingent consideration	4,807		(4,078)		(218)		1,858		(5,138)		(136)
Acquisition expenses	—		—		NM		—		209		(100)

Total expenses	26,866		18,276		47		46,657		40,057		16
Net operating income	(4,178)		3,669				(1,237)		4,615

Net change in unrealized appreciation (depreciation) on private investments	—		24		(100)		—		24		(100)
Net investment income	548		211		160		1,003		383		162
Other income	224		239		(6)		409		611		(33)

Income before income taxes	(3,406)		4,143				175		5,633
Income tax provision	(1,193)		1,244		(196)		222		2,020		(89)
Net income	$	(2,213)	$	2,899	(176)	%	$	(47)	$	3,613	(101)	%
Less: Comprehensive income (loss) attributable to noncontrolling interest	30		4		650	%	(100)		25		(500)	%
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	(2,243)	$	2,895	(177)	%	$	53	$	3,588	(99)	%

_________________________

NM Not meaningful

Three months ended June 30, 2024 compared to three months ended June 30, 2023

Total revenues. Total revenues for the three months ended June 30, 2024 were comparable to revenues for the three months ended June 30, 2023.

(Gain) loss from change in fair value of contingent consideration. We recorded a loss of $4.8 million upon the

remeasurement of contingent consideration of the Salient Acquisition primarily due to changes in growth projections following asset appreciation in the quarter and revised asset flow expectations.

Income tax provision. Our effective tax rate differed from the 21% statutory rate for the second quarter of 2024 primarily due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.

Six months ended June 30, 2024 compared to six months ended June 30, 2023

Total revenues. Total revenues for the six months ended June 30, 2024 were comparable to revenues for the six months ended June 30, 2023.

(Gain) loss from change in fair value of contingent consideration. We recorded a gain of $1.9 million upon the remeasurement of contingent consideration of the 2022 Salient acquisition primarily due to changes in growth projections and revised asset flow expectations.

Income tax provision. Our effective tax rate for the six months ended June 30, 2024 differed from the 21% statutory rate for 2024 primarily due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates and the discrete impact of life insurance proceeds received in 2023.

Supplemental Financial Information

As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic Earnings (Loss) and Economic EPS. We provide these measures in addition to, not as a substitute for, comprehensive income (loss) attributable to Westwood Holdings Group, Inc. and earnings (loss) per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic Earnings (Loss) and Economic EPS to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP comprehensive income (loss) attributable to Westwood Holdings Group, Inc. or earnings (loss) per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP.

We define Economic Earnings (Loss) as comprehensive income (loss) attributable to Westwood Holdings Group, Inc. plus non-cash equity-based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic Earnings (Loss) because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. Although gains and losses from changes in the fair value of contingent consideration are non-cash, we do not add or subtract those back when calculating Economic Earnings (Loss) because gains and losses on changes in the fair value of contingent consideration are considered regular following an acquisition. In addition, we do not adjust Economic Earnings (Loss) for tax deductions related to restricted stock expense or amortization of intangible assets. Economic EPS represents Economic Earnings (Loss) divided by diluted weighted average shares outstanding.

The following tables (in thousands, except share and per share amounts) provide a reconciliation of comprehensive income (loss) attributable to Westwood Holdings Group, Inc. to Economic Earnings (Loss) and Economic Earnings (Loss) by segment. We have included the tax impact of adjustments for all periods presented.


	Three Months Ended June 30,				Change		Six Months Ended June 30,
	2024		2023				2024		2023		Change
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	(2,243)	$	2,895	(177)	%	$	53	$	3,588	(99)	%
Stock-based compensation expense	1,397		1,624		(14)		2,912		3,372		(14)

Intangible amortization	1,032		1,042		(1)		2,074		2,063		1

Tax benefit from goodwill amortization	156		125		25		281		250		12
Tax impacts of adjustments to GAAP comprehensive income (loss)	(850)		(1,706)		(50)		(2,816)		(3,575)		(21)
Economic Earnings (Loss)	$	(508)	$	3,980	(113)	%	$	2,504	$	5,698	(56)	%
Earnings (loss) per share	$	(0.27)	$	0.36	(175)	%	$	0.01	$	0.45	(98)	%
Stock-based compensation expense	0.17		0.19		(11)		0.35		0.41		(15)

Intangible amortization	0.12		0.13		(8)		0.24		0.26		(8)

Tax benefit from goodwill amortization	0.02		0.02		—		0.03		0.03		—
Tax impacts of adjustments to GAAP comprehensive income (loss)	(0.10)		(0.21)		(52)		(0.33)		(0.44)		(25)
Economic Earnings (Loss) per share	$	(0.06)	$	0.49	(112)	%	$	0.30	$	0.71	(58)	%
Diluted weighted average shares outstanding	8,218,596		8,131,333				8,438,431		8,050,298

Economic Earnings (Loss) by Segment:
Advisory	$	4,817	$	3,352	44	%	$	7,940	$	5,751	38	%
Trust	1,005		828		21		1,498		1,051		43
Westwood Holdings	(6,330)		(200)		3,065		(6,934)		(1,104)		528
Consolidated	$	(508)	$	3,980	(113)	%	$	2,504	$	5,698	(56)	%

Liquidity and Capital Resources

Historically we have funded our operations and cash requirements with cash generated from operating activities. We may also use cash from operations to pay dividends to our stockholders or for deferred contingent consideration payments. We had no debt as of June 30, 2024 and December 31, 2023. The changes in net cash provided by operating activities generally reflect changes in earnings plus the effects of non-cash items and changes in working capital, including liquidation of investments used to cover current liabilities. Changes in working capital, especially accounts receivable and accounts payable, are generally the result of timing differences between collection of fees billed and payment of operating expenses.

We had cash and short-term investments of $44.1 million and $53.1 million as of June 30, 2024 and December 31, 2023, respectively. At June 30, 2024 and December 31, 2023, working capital aggregated $50.5 million and $53.6 million, respectively.

During the six months ended June 30, 2024, cash flow provided by operating activities was $11.7 million, which included net sales of current investments of $11.4 million, partially to pay compensation and benefits payable, and a reduction in compensation and benefits payable of $4.2 million. During the six months ended June 30, 2023, cash flow used in operating activities was $3.9 million, which included net sales of current investments of $7.1 million and a reduction in compensation and benefits payable of $3.3 million.

Cash flow used in investing activities during the six months ended June 30, 2024 was related to the purchase of investments. Cash flow used in investing activities during the six months ended June 30, 2023 was primarily for the Broadmark Acquisition.

Cash flows used in financing activities of $6.8 million for the six months ended June 30, 2024 reflected the payment of dividends, deferred contingent consideration payments, purchases of treasury stock and restricted stock returned for the payment of taxes. Cash flows used in financing activities of $3.9 million for the six months ended June 30, 2023 reflected the payment of dividends and restricted stock returned for the payment of taxes.

Westwood Trust is required to maintain cash and investments in an amount equal to the minimum restricted capital of $4.0 million, as required by the Texas Finance Code. Restricted capital is included in Investments in the accompanying Condensed Consolidated Balance Sheets. At June 30, 2024, Westwood Trust had approximately $12.4 million in excess of its minimum capital requirement.

Our future liquidity and capital requirements will depend upon numerous factors, including our results of operations, the timing and magnitude of capital expenditures or strategic initiatives, our dividend policy and other business and risk factors described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. We believe that current cash and short-term investment balances plus cash generated from operations will be sufficient to meet both the operating and capital requirements of our ordinary business operations through at least the next twelve months, however there can be no assurance that we will not require additional financing within this time frame. Failure to raise needed capital on attractive terms, if at all, could have a material adverse effect on our business, financial condition and results of operations.

Contractual Obligations

As of June 30, 2024, there have been no material changes outside of the ordinary course of business to our contractual obligations since December 31, 2023. For information regarding our contractual obligations, refer to “Contractual Obligations” in Part II, Item 7. “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Critical and Significant Accounting Policies and Estimates

There have been no significant changes in our critical or significant accounting policies and estimates since December 31, 2023. Information with respect to our critical accounting policies and estimates that we believe could have the most significant effect on our reported consolidated results and require difficult, subjective or complex judgment by management is described under “Critical Accounting Policies and Estimates” in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Accounting Developments

Refer to Note 2 “Summary of Significant Accounting Policies” in our Condensed Consolidated Financial Statements included in Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q for a description of recently issued accounting guidance.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no significant changes in our Quantitative and Qualitative Disclosures about Market Risk from those previously reported in our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, to allow timely decisions regarding required disclosure. An evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, our management, including our Chief Executive Officer and our Chief Financial Officer, concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Controls over Financial Reporting

During the quarter ended June 30, 2024, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Our business and future results may be affected by a number of risks and uncertainties that should be considered carefully. In addition, this report also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including the risks described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and the risks set forth below.

There have been no material changes to the risk factors previously disclosed in the Form 10-K. You should carefully consider the following risks and the risks included in the Company’s Annual Report on Form 10-K, together with all of the other information in this Quarterly Report on Form 10-Q, including our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. The occurrence of any single risk or any combination of risks could materially and adversely affect our business, financial condition, results of operations, cash flows and the trading price of our common stock.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Our share repurchase program has no expiration date and may be discontinued at any time by the Board of Directors. Between April 1, 2024 and June 30, 2024, under the share repurchase program, the Company repurchased 86,346 shares of our common stock at an average price of $12.45 per share, including commissions, for an aggregate purchase price of $1.1 million.

The following table displays information with respect to the treasury shares we purchased during the three months ended June 30, 2024:


	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (1)
Repurchase program (1)						$	750,000
April 2024	20,059	$	259,109	$	12.92
May 2024	41,710	$	515,918	$	12.37	—
June 2024	24,577	$	299,739	$	12.2

(1)These purchases relate to the share repurchase program and were authorized in April 2020.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the quarter ended June 30, 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

ITEM 6. EXHIBITS



31.1*						Certification of Chief Executive Officer Pursuant to Securities Exchange Act Rule 13a-14(a)

31.2*						Certification of Chief Financial Officer Pursuant to Securities Exchange Act Rule 13a-14(a)

32.1**						Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2**						Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101*						The following financial information from Westwood Holdings Group, Inc.'s Quarterly Report on Form 10-Q for the period ended June 30, 2024, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023; (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023; (iii) Condensed Consolidated Statements of Stockholders' Equity; (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023; and (v) Notes to the Condensed Consolidated Financial Statements.

104*						Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101)

* Filed herewith.

** Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated:

July 31, 2024

WESTWOOD HOLDINGS GROUP, INC.

By:

/s/ Brian O. Casey

Brian O. Casey

Chief Executive Officer

By:

/s/ Murray Forbes III

Murray Forbes III

Chief Financial Officer and Treasurer

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a)

I, Brian O. Casey, certify that:

1.I have reviewed this report on Form 10-Q of Westwood Holdings Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated: July 31, 2024

/s/ Brian O. Casey
Brian O. Casey
Chief Executive Officer

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a)

I, Murray Forbes III, certify that:

1.I have reviewed this report on Form 10-Q of Westwood Holdings Group, Inc.;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated: July 31, 2024

/s/ Murray Forbes III
Murray Forbes III
Chief Financial Officer and Treasurer

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Westwood Holdings Group, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian O. Casey, President & Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Dated: July 31, 2024

/s/ Brian O. Casey
Brian O. Casey
Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Westwood Holdings Group, Inc. and will be retained by Westwood Holdings Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Westwood Holdings Group, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Murray Forbes III, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Dated: July 31, 2024

/s/ Murray Forbes III
Murray Forbes III
Chief Financial Officer and Treasurer

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Jul. 26, 2023
Document And Entity Information [Abstract]
Document Transition Report	false
Document Quarterly Report	true
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2969997
Entity Address, Address Line One	200 CRESCENT COURT, SUITE 1200
Entity Address, State or Province	TX
Title of 12(b) Security	Common stock, par value $0.01 per share
Entity Registrant Name	WESTWOOD HOLDINGS GROUP, INC.
City Area Code	214
Local Phone Number	756-6900
Entity Central Index Key	0001165002
Document Type	10-Q
Entity File Number	1-31234
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		9,286,533
Entity Emerging Growth Company	false
Trading Symbol	WHG
Security Exchange Name	NYSE
Entity Address, Postal Zip Code	75201
Entity Small Business	true
Entity Filer Category	Non-accelerated Filer
Entity Address, City or Town	DALLAS,
Document Period End Date	Jun. 30, 2024

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2024	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Operating Lease, Liability, Current		$ 1,406,000	$ 1,286,000
Current Assets:
Cash and cash equivalents		23,770,000	20,422,000
Accounts receivable		14,324,000	14,394,000
Investments, at fair value		20,364,000	32,674,000
Income Taxes Receivable, Current		945,000	205,000
Other current assets		4,506,000	4,543,000
Total current assets		63,909,000	72,238,000
Long-term Investments		8,747,000	7,247,000
Long-term Investments Carried at Fair Value		1,825,000	241,000
Goodwill		39,501,000	39,501,000
Deferred income taxes		773,000	726,000
Operating lease right-of-use assets		3,127,000	3,673,000
Intangible assets, net		22,729,000	24,803,000
Property and equipment, net of accumulated depreciation of $8,180 and $10,078		1,144,000	1,444,000
Other long-term assets		1,041,000	1,010,000
Total assets		147,374,000	155,167,000
Current liabilities:
Accounts payable and accrued liabilities		5,312,000	6,130,000
Dividends payable		1,394,000	1,692,000
Compensation and benefits payable		5,322,000	9,539,000
Total current liabilities		13,434,000	18,647,000
Accrued dividends		782,000	675,000
Operating Lease, Liability, Noncurrent		2,516,000	3,266,000
Liabilities, Noncurrent	$ 13,474,000		14,074,000
Total liabilities		26,908,000	32,721,000
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,174,073 and 11,856,737, respectively and outstanding 9,293,447 and 9,140,760, respectively		123,000	119,000
Additional paid-in capital		202,064,000	201,622,000
Treasury stock, at cost – 2,880,626 and 2,715,977, respectively		(88,005,000)	(85,990,000)
Retained earnings		4,339,000	4,650,000
Total Westwood Holdings Group, Inc. stockholders’ equity		118,521,000	120,401,000
Stockholders' Equity, Total		120,466,000	122,446,000
Total liabilities and stockholders' equity		147,374,000	155,167,000
Equity Method Investments		4,578,000	4,284,000
Total long-term assets		83,465,000	82,929,000
Asset Acquisition, Contingent Consideration, Liability		10,176,000	10,133,000
Members' Equity Attributable to Noncontrolling Interest		$ 1,945,000	$ 2,045,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 7,144	$ 6,462
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	10,314,305	10,182,583
Common stock, shares outstanding	8,906,152	8,904,902
Treasury stock, shares	1,408,152	1,277,681
Long-term Investments Carried at Fair Value	$ 1,825	$ 241

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ (2,213)	$ 2,899	$ (47)	$ 3,613
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable	30	4	(100)	25
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized	0	0	0	209
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	(2,243)	2,895	53	3,588
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(2,213)	2,899	(47)	3,613
REVENUES:
Other Revenue, Net	322	122	1,124	230
Total revenues	22,688	21,945	45,420	44,672
EXPENSES:
Employee compensation and benefits	13,638	13,688	28,349	27,890
Sales and marketing	755	764	1,383	1,504
Westwood mutual funds	855	746	1,576	1,478
Information technology	2,350	2,566	4,640	4,949
Professional services	1,450	1,355	2,939	2,884
General and administrative	3,011	3,235	5,912	6,281
Foreign Currency Transaction Gain (Loss), before Tax	4,807	(4,078)	1,858	(5,138)
Total expenses	26,866	18,276	46,657	40,057
Operating Income (Loss)	(4,178)	3,669	(1,237)	4,615
Net change in unrealized appreciation (depreciation) on private investments	0	24	0	24
Gain on sale of operations			1,003	383
Other Income	224	239	409	611
Income before income taxes	(3,406)	4,143	175	5,633
Income tax provision	(1,193)	1,244	222	2,020
Other comprehensive income (loss):
Total comprehensive income (loss)	$ (2,243)	$ 2,895	$ 53	$ 3,588
Earnings per share:
Basic (dollars per share)	$ (0.27)	$ 0.36	$ 0.01	$ 0.45
Diluted (dollars per share)	$ (0.27)	$ 0.36	$ 0.01	$ 0.45
Weighted average shares outstanding:
Basic (shares)	8,218,596	7,991,228	8,158,812	7,922,954
Diluted (shares)	8,218,596	8,131,333	8,438,431	8,050,298
Investment Income, Investment Expense			$ 548	$ 211
Asset Management [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 17,139	$ 16,799	33,956	33,832
Investment Performance [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	555
Fiduciary and Trust [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 5,227	$ 5,024	$ 10,340	$ 10,055

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Noncontrolling Interest
BALANCE at Dec. 31, 2022	$ 110,648,000	$ 115,000	$ 199,914,000	$ (85,128,000)	$ (4,253,000)
BALANCE, shares at Dec. 31, 2022		8,881,831,000
Net Income (Loss) Attributable to Parent	3,588,000
Issuance of restricted stock, net of forfeitures, shares		368,682,000
Dividends declared	(2,691,000)				(294,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	3,372,000		3,372,000
Restricted stock returned for payment of taxes, shares		(67,743,000)
BALANCE at Jun. 30, 2023	115,099,000	$ 119,000	200,885,000	(85,965,000)	(959,000)	$ 1,019,000
BALANCE, shares at Jun. 30, 2023		9,182,770,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	3,613,000
Net Income (Loss) Attributable to Noncontrolling Interest	25,000				1,015,000
Noncontrolling Interest, Increase from Business Combination	994,000
Restricted Stock, Value, Shares Issued Net of Tax Withholdings	837,000			837,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 4,000	(4,000)
BALANCE at Dec. 31, 2022	110,648,000	$ 115,000	199,914,000	(85,128,000)	(4,253,000)
BALANCE, shares at Dec. 31, 2022		8,881,831,000
BALANCE at Dec. 31, 2023	$ 120,401,000	$ 119,000	201,622,000	(85,990,000)	4,650,000
BALANCE, shares at Dec. 31, 2023	8,904,902	9,140,760
Net Income (Loss) Attributable to Noncontrolling Interest					2,045,000
BALANCE at Mar. 31, 2023		$ 119,000	200,453,000	(85,965,000)	(3,752,000)
BALANCE, shares at Mar. 31, 2023		9,212,390,000
Net Income (Loss) Attributable to Parent	$ 2,895,000
Issuance of restricted stock, net of forfeitures, shares		(29,620,000)
Dividends declared	(1,294,000)		(1,192,000)		(102,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,624,000		1,624,000
BALANCE at Jun. 30, 2023	115,099,000	$ 119,000	200,885,000	(85,965,000)	(959,000)	1,019,000
BALANCE, shares at Jun. 30, 2023		9,182,770,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	2,899,000
Net Income (Loss) Attributable to Noncontrolling Interest	4,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 0	0
BALANCE at Dec. 31, 2023	$ 120,401,000	$ 119,000	201,622,000	(85,990,000)	4,650,000
BALANCE, shares at Dec. 31, 2023	8,904,902	9,140,760
BALANCE at Mar. 31, 2024	$ 123,755,000	$ 122,000	201,899,000	(86,930,000)	6,749,000
BALANCE, shares at Mar. 31, 2024		9,330,762
Net Income (Loss) Attributable to Noncontrolling Interest					1,915,000
BALANCE at Dec. 31, 2023	$ 120,401,000	$ 119,000	201,622,000	(85,990,000)	4,650,000
BALANCE, shares at Dec. 31, 2023	8,904,902	9,140,760
Net Income (Loss) Attributable to Parent	$ 53,000
Issuance of restricted stock, net of forfeitures, shares		317,336
Dividends declared	(2,830,000)				(364,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	2,912,000		2,912,000
Purchases of treasury stock, shares		(86,346)
Restricted stock returned for payment of taxes, shares		(78,303)
BALANCE at Jun. 30, 2024	$ 118,521,000	$ 123,000	202,064,000	(88,005,000)	4,339,000	1,945,000
BALANCE, shares at Jun. 30, 2024	8,906,152	9,293,447
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (47,000)
Net Income (Loss) Attributable to Noncontrolling Interest	(100,000)
Restricted Stock, Value, Shares Issued Net of Tax Withholdings	940,000			940,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 4,000	(4,000)
Treasury Stock, Value, Acquired, Cost Method	1,075,000			1,075,000
BALANCE at Mar. 31, 2024	123,755,000	$ 122,000	201,899,000	(86,930,000)	6,749,000
BALANCE, shares at Mar. 31, 2024		9,330,762
Net Income (Loss) Attributable to Parent	(2,243,000)
Issuance of restricted stock, net of forfeitures, shares		49,031
Dividends declared	(1,398,000)		(1,231,000)		(167,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,397,000		1,397,000
Purchases of treasury stock, shares		(86,346)
BALANCE at Jun. 30, 2024	$ 118,521,000	$ 123,000	202,064,000	(88,005,000)	$ 4,339,000	$ 1,945,000
BALANCE, shares at Jun. 30, 2024	8,906,152	9,293,447
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (2,213,000)
Net Income (Loss) Attributable to Noncontrolling Interest	30,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 1,000	$ (1,000)
Treasury Stock, Value, Acquired, Cost Method	1,075,000			$ 1,075,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 120,466,000

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (dollars per share)	$ 0.15	$ 0.15

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) Attributable to Parent	$ 53	$ 3,588
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	326	346
Amortization of intangible assets	2,074	2,063
Net change in unrealized (appreciation) depreciation on investments	(1,004)	(499)
Stock-based compensation expense	2,912	3,372
Deferred income taxes	(47)	228
Non-cash lease expense	546	630
Gain (Loss) on Disposition of Assets	0	69
Change in operating assets and liabilities:
Net (purchases) sales of trading securities	11,430	(7,083)
Accounts receivable	70	919
Other current assets	2	1,141
Accounts payable and accrued liabilities	(814)	(796)
Compensation and benefits payable	(4,217)	(3,345)
Income taxes payable	(740)	1,490
Other liabilities	(664)	(793)
Net Cash Provided by (Used in) Operating Activities	11,685	(3,902)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(24)	(97)
Payments to Acquire Intangible Assets	(1,500)	0
Net Cash Provided by (Used in) Investing Activities	(1,524)	(838)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	(1,075)	0
Restricted stock returned for payment of taxes	(940)	(837)
Payment for Contingent Consideration Liability, Financing Activities	(1,815)
Cash dividends paid	(2,983)	(3,053)
Net Cash Provided by (Used in) Financing Activities	(6,813)	(3,890)
NET CHANGE IN CASH AND CASH EQUIVALENTS	3,348	(8,630)
Cash and cash equivalents, beginning of period	20,422	23,859
Cash and cash equivalents, end of period	23,770	15,229
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	1,008	300
Accrued dividends	2,176	2,065
Long-term Investments	8,747
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	53	3,588
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	1,858	(5,138)
Payments to Acquire Businesses, Net of Cash Acquired	0	(741)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(47)	3,613
RouAssetsAndLeaseLiabilityRemeasurementAdjustment	$ 0	$ (119)

DESCRIPTION OF THE BUSINESS	6 Months Ended
DESCRIPTION OF THE BUSINESS	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF THE BUSINESS	DESCRIPTION OF THE BUSINESS Westwood Holdings Group, Inc. (“Westwood”, “the Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Delaware on December 12, 2001. Westwood manages investment assets and provides services for its clients through its wholly-owned subsidiaries, Westwood Management Corp., Westwood Advisors, L.L.C. and Salient Advisors, L.P. (referred to hereinafter together as “Westwood Management”), and Westwood Trust. Westwood Management provides investment advisory services to institutional clients, a family of mutual funds called the Westwood Funds®, other mutual funds, individual investors and clients of Westwood Trust. Westwood Trust provides trust and custodial services and participation in self-sponsored common trust funds (“CTFs”) to institutions and high net worth individuals. Revenue is largely dependent on the total value and composition of assets under management ("AUM") and fluctuations in financial markets and in the composition of AUM impact our revenues and results of operations. Westwood Management is registered with the Securities and Exchange Commission ("SEC") as an investment adviser under the Investment Advisers Act of 1940. Westwood Trust is chartered and regulated by the Texas Department of Banking.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2024
Accounting Policies [Abstract]
Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the SEC. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

•Level 1 – quoted market prices in active markets for identical assets

•Level 2 – inputs other than quoted prices that are directly or indirectly observable

•Level 3 – significant unobservable inputs where there is little or no market activity

The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands):


	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
As of June 30, 2024:
Investments in trading securities	$	20,364	$	—	$	—	$	—	$	20,364
Private investment funds	—		—		—		1,825		1,825

Total assets measured at fair value	$	20,364	$	—	$	—	$	1,825	$	22,189
Salient Acquisition contingent consideration	—		—		10,176		—		10,176
Total liabilities measured at fair value	$	—	$	—	$	10,176	$	—	$	10,176

As of December 31, 2023:
Investments in trading securities	$	32,674	$	—	$	—	$	—	$	32,674
Private investment fund	—		—		—		241		241

Total assets measured at fair value	$	32,674	$	—	$	—	$	241	$	32,915
Salient Acquisition contingent consideration	—		—		10,133		—		10,133
Total liabilities measured at fair value	$	—	$	—	$	10,133	$	—	$	10,133
(1) Comprised of certain investments measured at fair value using NAV as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets.

The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis for the periods presented (in thousands):


	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Beginning balance	$	2,792	$	2,792

Exchange of shares	(2,792)		(2,792)



Ending balance	$	—	$	—

The following table summarizes the changes in Level 3 liabilities measured at fair value on a recurring basis for the periods presented (in thousands):


	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Beginning balance	$	7,184	$	11,841	$	10,133	$	12,901
Payments	(1,815)		—		$	(1,815)	—
Total (gains) losses included in earnings	4,807		(4,078)		1,858		(5,138)
Ending balance	$	10,176	$	7,763	$	10,176	$	7,763

GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Changes in goodwill were as follows (in thousands):


	Trust Segment		Advisory Segment		Total
Balance at December 31, 2023	$	16,401	$	23,100	$	39,501

Balance at June 30, 2024	$	16,401	$	23,100	$	39,501


	Trust Segment		Advisory Segment		Total
Balance at December 31, 2022	$	16,401	$	19,331	$	35,732
Salient Acquisition adjustment1	—		(428)		(428)
Broadmark Acquisition	—		4,197		4,197
Balance at June 30, 2023	$	16,401	$	23,100	$	39,501

1 Represents subsequent purchase price adjustments for the Salient Acquisition.

Other Intangible Assets

REVENUE (Notes)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer, Excluding Assessed Tax

REVENUE

Revenue Recognition

Advisory Fee Revenues

Arrangements with Performance-Based Obligations

Trust Fee Revenues

Revenue Disaggregated

The following table presents our revenue disaggregated by account type (in thousands).


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Advisory Fees:
Institutional	$	9,718	$	9,443	$	19,189	$	19,046
Mutual Funds	6,856		7,093		13,767		14,279
Wealth Management	565		263		1,000		507
Performance-based	—		—		—		555
Trust Fees	5,227		5,024		10,340		10,055

Other, net	322		122		1,124		230
Total revenues	$	22,688	$	21,945	$	45,420	$	44,672

We have clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):


Three Months Ended June 30, 2024	Advisory		Trust		Other		Total


Canada	$	260	$	—	$	—	$	260

United States	16,879		5,227		322		22,428
Total	$	17,139	$	5,227	$	322	$	22,688


Three Months Ended June 30, 2023	Advisory		Trust		Other		Total


Canada	$	276	$	—	$	—	$	276

United States	16,523		5,024		122		21,669
Total	$	16,799	$	5,024	$	122	$	21,945

INCOME TAXES (Notes)	6 Months Ended
INCOME TAXES (Notes)	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXES Our effective income tax rate differed from the 21% statutory rate for the three and six months ended June 30, 2024 and 2023 due to permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the restricted stock grant and vesting dates.

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jun. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company engages in transactions with its affiliates in the ordinary course of business. Westwood Management provides investment advisory services to the Westwood Funds®. Under the terms of the investment advisory agreements, the Company earns quarterly fees paid by clients of the fund or by the funds directly. The fees are based on negotiated fee schedules applied to AUM. For the three and six months ended June 30, 2024 and June 30, 2023, the Company earned immaterial fees from the affiliated funds.

SEGMENT REPORTING

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

The Company's Chief Operating Decision Maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues.

Advisory

Trust


(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Three Months Ended June 30, 2024
Net fee revenues from external sources	$	17,139	$	5,227	$	—	$	—	$	22,366
Net intersegment revenues	$	1,448	$	55	$	—	$	(1,503)	$	—

Other, net	$	322	$	—	$	—	$	—	$	322
Total revenues	$	18,909	$	5,282	$	—	$	(1,503)	$	22,688

Segment assets	$	286,921	$	46,553	$	13,465	$	(199,565)	$	147,374
Segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501
Segment equity-method investments	$	4,578	$	—	$	—	$	—	$	4,578
Segment expenditures for long-lived assets	$	1	$	1	$	22	$	—	$	24

Three Months Ended June 30, 2023
Net fee revenues from external sources	$	16,799	$	5,024	$	—	$	—	$	21,823
Net intersegment revenues	$	1,587	$	77	$	—	$	(1,664)	$	—

Other, net	$	122	$	—	$	—	$	—	$	122
Total revenues	$	18,508	$	5,101	$	—	$	(1,664)	$	21,945

Segment assets	$	268,184	$	44,412	$	14,831	$	(185,322)	$	142,105
Segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501
Segment equity-method investments	$	4,180	$	—	$	—	$	—	$	4,180
Segment expenditures for long-lived assets	$	31	$	14	$	52	$	—	$	97

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2024
Subsequent Event [Line Items]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Restricted Stock Subject Only To A Service Condition Policy [Text Block]	Restricted Stock Subject Only to a Service Condition We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period, with adjustments for forfeitures recorded as they occur.
Restricted Stock Subject To Service And Performance Conditions Policy [Text Block]	Restricted Stock Subject to Service and Performance Conditions Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes annual goals is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The vesting period ends when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements. If a portion of the performance-based restricted shares does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest is reversed.
Revenue [Policy Text Block]	Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues such as gains and losses from our seed money investments into new investment strategies. The "Other, net” revenues on our Condensed Consolidated Statements of Comprehensive Income (Loss) are the unrealized gains and losses on our seed money investments, and our seed money investments are included in "Investments, at fair value" on our Condensed Consolidated Balance Sheets. Advisory and trust fees are calculated based on a percentage of AUM or AUA, as applicable, and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services, we have an enforceable right to payment. Advisory Fee Revenues Our advisory fees are generated by Westwood Management for managing client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and AUA and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) sub-advisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our suite of investment strategies for institutional investors and wealth management accounts. Arrangements with Performance-Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time. Performance-based fees are paid after the performance obligation has been satisfied. The revenue is based on future market performance and is subject to many factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred fee revenues.
Basis of Presentation	Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the SEC. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation.

EARNINGS PER SHARE Policies (Policies)	6 Months Ended
EARNINGS PER SHARE Policies (Policies)	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share, Policy [Policy Text Block]	Basic earnings (loss) per common share is computed by dividing comprehensive income (loss) attributable to Westwood Holdings Group, Inc. by the weighted average number of shares outstanding for the applicable period. Diluted earnings (loss) per share is computed based on the weighted average number of shares outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors.

REVENUE Policies (Policies)	6 Months Ended
REVENUE Policies (Policies)	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue [Policy Text Block]	Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues such as gains and losses from our seed money investments into new investment strategies. The "Other, net” revenues on our Condensed Consolidated Statements of Comprehensive Income (Loss) are the unrealized gains and losses on our seed money investments, and our seed money investments are included in "Investments, at fair value" on our Condensed Consolidated Balance Sheets. Advisory and trust fees are calculated based on a percentage of AUM or AUA, as applicable, and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services, we have an enforceable right to payment. Advisory Fee Revenues Our advisory fees are generated by Westwood Management for managing client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and AUA and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) sub-advisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our suite of investment strategies for institutional investors and wealth management accounts. Arrangements with Performance-Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time. Performance-based fees are paid after the performance obligation has been satisfied. The revenue is based on future market performance and is subject to many factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred fee revenues.

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share and share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	(2,243)	$	2,895	$	53	$	3,588
Weighted average shares outstanding - basic	8,218,596		7,991,228		8,158,812		7,922,954
Dilutive potential shares from unvested restricted shares	—		140,105		279,619		127,344

Weighted average shares outstanding - diluted	8,218,596		8,131,333		8,438,431		8,050,298
Earnings (loss) per share:
Basic	$	(0.27)	$	0.36	$	0.01	$	0.45
Diluted	$	(0.27)	$	0.36	$	0.01	$	0.45

INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investment Balances

Investments carried at fair value are presented in the table below (in thousands):


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
June 30, 2024:
U.S. Government securities	$	12,653	$	233	$	(66)	$	12,820
Money market funds	4,293		138		—		4,431
Equity funds	1,507		265		(123)		1,649
Exchange-traded funds	1,200		—		—		1,200
Equities	169		57		(108)		118
Exchange-traded bond funds	149		—		(3)		146
Total trading securities	19,971		693		(300)		20,364
Private investment funds	1,450		399		(24)		1,825

Total investments carried at fair value	$	21,421	$	1,092	$	(324)	$	22,189

December 31, 2023:
U.S. Government securities	$	22,522	$	14	$	(75)	$	22,461
Money market funds	5,367		111		—		5,478
Equity funds	4,295		195		(260)		4,230
Equities	381		—		(24)		357
Exchange-traded bond funds	152		—		(4)		148
Total trading securities	32,717		320		(363)		32,674
Private investment fund	265		7		(31)		241

Total investments carried at fair value	$	32,982	$	327	$	(394)	$	32,915

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]

The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands):


	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
As of June 30, 2024:
Investments in trading securities	$	20,364	$	—	$	—	$	—	$	20,364
Private investment funds	—		—		—		1,825		1,825

Total assets measured at fair value	$	20,364	$	—	$	—	$	1,825	$	22,189
Salient Acquisition contingent consideration	—		—		10,176		—		10,176
Total liabilities measured at fair value	$	—	$	—	$	10,176	$	—	$	10,176

As of December 31, 2023:
Investments in trading securities	$	32,674	$	—	$	—	$	—	$	32,674
Private investment fund	—		—		—		241		241

Total assets measured at fair value	$	32,674	$	—	$	—	$	241	$	32,915
Salient Acquisition contingent consideration	—		—		10,133		—		10,133
Total liabilities measured at fair value	$	—	$	—	$	10,133	$	—	$	10,133
(1) Comprised of certain investments measured at fair value using NAV as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]


	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Beginning balance	$	2,792	$	2,792

Exchange of shares	(2,792)		(2,792)



Ending balance	$	—	$	—

The following table summarizes the changes in Level 3 liabilities measured at fair value on a recurring basis for the periods presented (in thousands):


	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Beginning balance	$	7,184	$	11,841	$	10,133	$	12,901
Payments	(1,815)		—		$	(1,815)	—
Total (gains) losses included in earnings	4,807		(4,078)		1,858		(5,138)
Ending balance	$	10,176	$	7,763	$	10,176	$	7,763

VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2024

Variable Interest Entities [Abstract]

Variable Interest Entities

The following table displays the AUM and the risk of loss in each vehicle (in millions):


	As of June 30, 2024
	Assets Under Management		Corporate Investment	Amount at Risk
VIEs/VOEs:
Westwood Funds®	$	3,943
Common Trust Funds	696

Private Funds	83		0.2	0.2
Private Equity	—		7.8	7.8
All other assets:
Wealth Management	3,467
Institutional	7,587
Total Assets Under Management	$	15,776

REVENUE Table (Tables)

6 Months Ended

Jun. 30, 2024

Disaggregation of Revenue [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table presents our revenue disaggregated by account type (in thousands).


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Advisory Fees:
Institutional	$	9,718	$	9,443	$	19,189	$	19,046
Mutual Funds	6,856		7,093		13,767		14,279
Wealth Management	565		263		1,000		507
Performance-based	—		—		—		555
Trust Fees	5,227		5,024		10,340		10,055

Other, net	322		122		1,124		230
Total revenues	$	22,688	$	21,945	$	45,420	$	44,672

Revenue Disaggregation by Geographic Location [Table Text Block]

The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):


Three Months Ended June 30, 2024	Advisory		Trust		Other		Total


Canada	$	260	$	—	$	—	$	260

United States	16,879		5,227		322		22,428
Total	$	17,139	$	5,227	$	322	$	22,688


Three Months Ended June 30, 2023	Advisory		Trust		Other		Total


Canada	$	276	$	—	$	—	$	276

United States	16,523		5,024		122		21,669
Total	$	16,799	$	5,024	$	122	$	21,945

LONG-TERM INCENTIVE COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2024

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Restricted Stock Subject Only To A Service Condition Policy [Text Block]

Restricted Stock Subject Only to a Service Condition

We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period, with adjustments for forfeitures recorded as they occur.

Total Expense Recorded for Stock Based Compensation

The following table presents the total stock-based compensation expense recorded for stock-based compensation arrangements for the periods indicated (in thousands):


	Three Months Ended June 30,
	2024		2023
Service condition stock-based compensation expense			$	1,283
Performance condition stock-based compensation expense			97
Stock-based compensation expense under the Plan	—		1,380
Canadian Plan stock-based compensation expense	—		—
Total stock-based compensation expense	$	—	$	1,380

Restricted Stock Subject To Service And Performance Conditions Policy [Text Block]

Restricted Stock Subject to Service and Performance Conditions

Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes annual goals is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The vesting period ends when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements. If a portion of the performance-based restricted shares does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest is reversed.

Restricted Stock Subject Only to a Service Condition

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Status and Changes in Restricted Stock Grants that Subject to Service Condition

The following table details the status and changes in our restricted stock grants subject only to a service condition for the six months ended June 30, 2024:


	Shares	Weighted Average Grant Date Fair Value
Non-vested, January 1, 2020	396,598	$	48.31
Granted	262,373	$	27.39
Vested	(140,974)	$	53.06
Forfeited	(26,372)	$	39.72
Non-vested, June 30, 2024	491,625	$	36.25

Restricted Shares Subject to Service and Performance Conditions

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Status and Changes in Restricted Stock Grants that Subject to Service Condition

The following table details the status and changes in our restricted stock grants subject to service and performance conditions for the six months ended June 30, 2024:


	Shares	Weighted Average Grant Date Fair Value
Non-vested, January 1, 2020	80,975	$	49.73

Vested	(35,275)	$	55.11
Non-vested, June 30, 2024	45,700	$	45.58

SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]


(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
Three Months Ended June 30, 2024
Net fee revenues from external sources	$	17,139	$	5,227	$	—	$	—	$	22,366
Net intersegment revenues	$	1,448	$	55	$	—	$	(1,503)	$	—

Other, net	$	322	$	—	$	—	$	—	$	322
Total revenues	$	18,909	$	5,282	$	—	$	(1,503)	$	22,688

Segment assets	$	286,921	$	46,553	$	13,465	$	(199,565)	$	147,374
Segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501
Segment equity-method investments	$	4,578	$	—	$	—	$	—	$	4,578
Segment expenditures for long-lived assets	$	1	$	1	$	22	$	—	$	24

Three Months Ended June 30, 2023
Net fee revenues from external sources	$	16,799	$	5,024	$	—	$	—	$	21,823
Net intersegment revenues	$	1,587	$	77	$	—	$	(1,664)	$	—

Other, net	$	122	$	—	$	—	$	—	$	122
Total revenues	$	18,508	$	5,101	$	—	$	(1,664)	$	21,945

Segment assets	$	268,184	$	44,412	$	14,831	$	(185,322)	$	142,105
Segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501
Segment equity-method investments	$	4,180	$	—	$	—	$	—	$	4,180
Segment expenditures for long-lived assets	$	31	$	14	$	52	$	—	$	97

DESCRIPTION OF THE BUSINESS (Details) - USD ($)	6 Months Ended
DESCRIPTION OF THE BUSINESS (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gain (Loss) on Disposition of Assets	$ 0	$ 69,000
Payments to Acquire Businesses, Net of Cash Acquired	0	$ (741,000)
Business Combination, Consideration Transferred	1,168,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage			32.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value	0.48
Other Noncontrolling Interests			$ 0.32
Asset Acquisition, Consideration Transferred	1,200,000
Subsidiary, Ownership Percentage, Noncontrolling Owner			80.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage			80.00%
Business Combination Consideration Transferred - Broadmark	1,200,000
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value				$ 2,400,000
Business Combination Consideration Transferred Gross- Broadmark	$ 1,600,000
Nonredeemable Noncontrolling Interest			$ 1,000,000

EARNINGS PER SHARE (Details Textual) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive restricted shares	6	106	13	108

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Computation of Basic and Diluted Shares
Net Income (Loss) Attributable to Parent	$ (2,243)	$ 2,895	$ 53	$ 3,588
Weighted average shares outstanding - basic (shares)	8,218,596	7,991,228	8,158,812	7,922,954
Dilutive potential shares from unvested restricted shares (shares)	0	140,105	279,619	127,344
Weighted average shares outstanding - diluted (shares)	8,218,596	8,131,333	8,438,431	8,050,298
Earnings per share:
Basic (dollars per share)	$ (0.27)	$ 0.36	$ 0.01	$ 0.45
Diluted (dollars per share)	$ (0.27)	$ 0.36	$ 0.01	$ 0.45
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (2,243)	$ 2,895	$ 53	$ 3,588

INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INVESTMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Net change in unrealized appreciation (depreciation) on private investments	$ 0	$ 24	$ 0	$ 24
Cost Method Investments	4,400		4,400
Cost	19,971		19,971		$ 32,717
Gross Unrealized Gains		320	693
Debt Securities, Trading, Unrealized Loss		(363)	(300)
Investments in trading securities	20,364		20,364		32,674
Cost	21,421		21,421		32,982
Gross Unrealized Gains		327	1,092
Debt Securities, Trading, and Equity Securities, Unrealized Loss		(394)	(324)
Estimated Fair Value	22,189		22,189		32,915
Long-term Investments	8,747		8,747		7,247
Long-term Investments Carried at Fair Value	1,825		1,825		241
Long-term Investments Carried at Fair Value using NAV	300		300
Equity Method Investments	$ 4,578	4,180	$ 4,578	$ 4,180	$ 4,284
Zarvona Energy Fund GP , L.P .
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity Method Investment, Ownership Percentage	50.00%		50.00%		50.00%
Equity Method Investments	$ 3,859		$ 3,859		$ 3,565
Zarvona Energy Fund II-A, L.P .
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity Method Investment, Ownership Percentage	0.50%		0.50%		0.50%
Equity Method Investments	$ 700		$ 700		$ 700
Salient MLP Total Return Fund, L.P. [Domain]
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity Method Investment, Ownership Percentage	0.00%		0.00%		0.00%
Equity Method Investments	$ 11		$ 11		$ 11
Salient MLP Total Return TE Fund, L.P.
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity Method Investment, Ownership Percentage	0.20%		0.20%		0.20%
Equity Method Investments	$ 8		$ 8		$ 8
Total
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity Method Investments	4,578		4,578		4,284
U.S. Government securities
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	12,653		12,653		22,522
Gross Unrealized Gains		14	233
Debt Securities, Trading, Unrealized Loss		(75)	(66)
Investments in trading securities	12,820		12,820		22,461
Money market funds
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	4,293		4,293		5,367
Gross Unrealized Gains		111	138
Debt Securities, Trading, Unrealized Loss		0	0
Investments in trading securities	4,431		4,431		5,478
Equity funds
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	1,507		1,507		4,295
Gross Unrealized Gains		195	265
Debt Securities, Trading, Unrealized Loss		(260)	(123)
Investments in trading securities	1,649		1,649		4,230
Equity Securities
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	169		169		381
Gross Unrealized Gains		0	57
Debt Securities, Trading, Unrealized Loss		(24)	(108)
Investments in trading securities	118		118		357
us-gaap_EquitySecuritiesMember [Member]
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	149		149		152
Gross Unrealized Gains		0	0
Debt Securities, Trading, Unrealized Loss		(4)	(3)
Investments in trading securities	146		146		148
Private investment funds
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	1,450		1,450		265
Gross Unrealized Gains		7	399
Equity Securities, FV-NI, Unrealized Loss		$ (31)	(24)
Estimated Fair Value	1,825		1,825		$ 241
Exchange Traded Funds
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	1,200		1,200
Gross Unrealized Gains			0
Debt Securities, Trading, Unrealized Loss			0
Investments in trading securities	$ 1,200		$ 1,200

INVESTMENTS (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INVESTMENTS (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Long-term Investments	$ 8,747		$ 8,747			$ 7,247
Estimated Fair Value	22,189		22,189			32,915
Cost	19,971		19,971			32,717
Cost Method Investments	4,400		4,400
Long-term Investments Carried at Fair Value using NAV	300		300
Carrying value - private investment					$ 4,400
Investment carrying value - Vista					$ 2,800
Carrying value - private investment, Tx Stock Exchange	1,500		1,500
Carrying value - private investment funds	1,000		1,000
Net change in unrealized appreciation (depreciation) on private investments	0	$ 24	0	$ 24
us-gaap_EquitySecuritiesMember [Member]
Schedule of Investments [Line Items]
Cost	$ 149		$ 149			$ 152

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Investments in securities:
Investments in trading securities	$ 20,364,000		$ 20,364,000			$ 32,674,000
Total assets measured at fair value	22,189,000		22,189,000			32,915,000
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		$ 2,792,000		$ 2,792,000
Ending balance		0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales		(2,792,000)		(2,792,000)
Fair Value Inputs [Abstract] (Deprecated 2018-01-31)
Long-term Investments	8,747,000		8,747,000			7,247,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	10,176,000	7,763,000	10,176,000	7,763,000	$ 7,184,000	10,133,000	$ 11,841,000	$ 12,901,000
Payment for Contingent Consideration Liability, Financing Activities	(1,815,000)		(1,815,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	$ 4,807,000	$ (4,078,000)	$ 1,858,000	$ (5,138,000)
Unobservable input - revenue retention discount rate - maximum	true	true	true	true
Unobservable input - revenue retention discount rate - weighted average	true	true	true	true
Unobservable input - revenue retention discount rate - minimum	true	true	true	true
Unobservable input - revenue retention volatility - weighted average	true	true	true	true
Unobservable input - revenue retention volatility - maximum	true	true	true	true
Unobservable input - revenue retention volatility - minimum	true	true	true	true
Unobservable input - growth discount rate - weighted average	true	true	true	true
Unobservable input - growth discount rate - maximum	true	true	true	true
Unobservable input - growth discount rate - minimum	true	true	true	true
Unobservable input - growth volatility - weighted average	true	true	true	true
Unobservable input - growth volatility - maximum	true	true	true	true
Unobservable input - growth volatility - minimum	true	true	true	true
Asset Acquisition, Consideration Transferred, Contingent Consideration			$ 10,200,000
Level 1
Investments in securities:
Investments in trading securities	$ 20,364,000		20,364,000			32,674,000
Total assets measured at fair value	20,364,000		20,364,000			32,674,000
Level 2
Investments in securities:
Investments in trading securities	0		0			0
Total assets measured at fair value	0		0			0
Level 3
Investments in securities:
Investments in trading securities	0		0			0
Total assets measured at fair value	$ 0		$ 0			$ 0
Asset Acquisition, Consideration Transferred, Contingent Consideration	Level 3		Level 3			Level 3
Other Liabilities, Fair Value Disclosure	$ 10,176,000		$ 10,176,000			$ 10,133,000
Investments Measured at NAV
Investments in securities:
Investments in trading securities	0		0			0
Total assets measured at fair value	$ 1,825,000		$ 1,825,000			$ 241,000
Fair Value, Recurring
Investments in securities:
Asset Acquisition, Consideration Transferred, Contingent Consideration	Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member]		Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member]			Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member]
Private investment funds
Investments in securities:
Private	$ 1,825,000		$ 1,825,000			$ 241,000
Private investment funds \| Level 1
Investments in securities:
Private	0		0			0
Private investment funds \| Level 2
Investments in securities:
Private	0		0			0
Private investment funds \| Level 3
Investments in securities:
Private	0		0			0
Private investment funds \| Investments Measured at NAV
Investments in securities:
Private	$ 1,825,000		$ 1,825,000			$ 241,000

GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of Intangible Assets (Excluding Goodwill)	$ 0	$ 0
Goodwill	39,501,000	39,501,000	$ 39,501,000
Goodwill, Purchase Accounting Adjustments		(428,000)
Goodwill [Line Items]
Trust Segment Goodwill	16,401,000	16,401,000	16,401,000	$ 16,401,000
Advisory Segment Goodwill	23,100,000	23,100,000	23,100,000	19,331,000
Balance at December 31, 2021	39,501,000	39,501,000	$ 39,501,000	$ 35,732,000
Goodwill, Acquired During Period	$ 4,197,000	4,197,000
Acquired Goodwill - Total		4,197,000
Goodwill, Purchase Accounting Adjustments		(428,000)
Goodwill Adjustments - Total		$ (428,000)

STOCKHOLDERS' EQUITY Share Repurchase Program (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 800,000	$ 800,000
Stock Repurchased During Period, Shares	86,346
Treasury Stock Acquired, Average Cost Per Share	$ 12.45
Stock Repurchased During Period, Value	$ 1,100,000
Treasury Stock, Value	88,005,000	88,005,000	$ 85,990,000
Treasury Stock, Value, Acquired, Cost Method	$ 1,075,000	$ 1,075,000

STOCKHOLDERS' EQUITY (Details)	3 Months Ended
STOCKHOLDERS' EQUITY (Details)	Jun. 30, 2024 USD ($) $ / shares shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 800,000
Stock Repurchased During Period, Shares \| shares	86,346
Treasury Stock Acquired, Average Cost Per Share \| $ / shares	$ 12.45
Stock Repurchased During Period, Value	$ 1,100,000

VARIABLE INTEREST ENTITIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Variable Interest Entity [Line Items]
Estimated Fair Value	$ 22,189		$ 22,189		$ 32,915
Fee revenues from Westwood VIEs	7,800	$ 7,900	15,600	$ 15,900
Investment Owned, at Fair Value					$ 2,417
Common Trust Funds
Variable Interest Entity [Line Items]
Estimated Fair Value

VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Variable Interest Entities
Assets Under Management	$ 15,776,000
Estimated Fair Value	22,189	$ 32,915
Westwood Funds®
Variable Interest Entities
Assets Under Management	3,943,000
Estimated Fair Value
Amount at Risk
Common Trust Funds
Variable Interest Entities
Assets Under Management	696,000
Estimated Fair Value
Amount at Risk
Westwood Hospitality Fund I LLC [Member]
Variable Interest Entities
Assets Under Management	83,000
Estimated Fair Value	200
Amount at Risk	200
Private equity
Variable Interest Entities
Assets Under Management	0
Estimated Fair Value	7,800
Amount at Risk	7,800
Wealth Management
Variable Interest Entities
Assets Under Management	3,467,000
Institutional
Variable Interest Entities
Assets Under Management	$ 7,587,000

REVENUE Disaggregation of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

9 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Jun. 30, 2024

Jun. 30, 2023

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer, Excluding Assessed Tax

REVENUE

Revenue Recognition

Advisory Fee Revenues

Arrangements with Performance-Based Obligations

Trust Fee Revenues

Revenue Disaggregated

The following table presents our revenue disaggregated by account type (in thousands).


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Advisory Fees:
Institutional	$	9,718	$	9,443	$	19,189	$	19,046
Mutual Funds	6,856		7,093		13,767		14,279
Wealth Management	565		263		1,000		507
Performance-based	—		—		—		555
Trust Fees	5,227		5,024		10,340		10,055

Other, net	322		122		1,124		230
Total revenues	$	22,688	$	21,945	$	45,420	$	44,672

We have clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):


Three Months Ended June 30, 2024	Advisory		Trust		Other		Total


Canada	$	260	$	—	$	—	$	260

United States	16,879		5,227		322		22,428
Total	$	17,139	$	5,227	$	322	$	22,688


Three Months Ended June 30, 2023	Advisory		Trust		Other		Total


Canada	$	276	$	—	$	—	$	276

United States	16,523		5,024		122		21,669
Total	$	16,799	$	5,024	$	122	$	21,945

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

$ 22,688

$ 21,945

$ 45,420

$ 44,672

Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

260

276

517

568

United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

22,428

21,669

44,903

44,104

Investment Advisory Services [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

17,139

16,799

33,956

34,387

Investment Advisory Services [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

260

276

517

568

Investment Advisory Services [Member] | United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

16,879

16,523

33,439

33,819

Investment Advisory Services [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

9,718

9,443

19,046

$ 19,189

Mutual Fund Advisory [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

6,856

7,093

13,767

14,279

Private Wealth Advisory [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

565

263

1,000

507

Performance-based fees [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

555

Trust Fees [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

5,227

5,024

10,340

10,055

Trust Fees [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

Trust Fees [Member] | United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

5,227

5,024

10,340

10,055

Trust Fees [Member] | Trust

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

5,227

5,024

10,340

10,055

Other Revenue Misc Services [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

322

122

1,124

230

Other Revenue Misc Services [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

Other Revenue Misc Services [Member] | United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

322

122

1,124

230

Other Revenue Misc Services [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

$ 322

$ 122

$ 1,124

$ 230

LONG-TERM INCENTIVE COMPENSATION (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amount of shares purchased in the open market			$ 1,075,000	$ 0
Remaining unrecognized compensation cost recognized over a remaining weighted average period			2 years 6 months
Accrued liability	$ 50,000		$ 50,000		$ 79,000
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited			56,625
Stock Issued During Period, Value, Restricted Stock Award, Forfeitures			$ 1,300,000
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Anti-dilutive restricted shares	6,000	106,000	13,000	108,000
Mutual Fund [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expense related to mutual fund share incentive awards			$ 27,000	$ (100,000)
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total number of shares that may be issued under the stock based compensation Plan (including predecessor plans to the Plan)	5,398,100		5,398,100
Shares remain available for issuance	642,000		642,000
Remaining unrecognized compensation cost	$ 13,200,000		$ 13,200,000
Nonvested restricted shares	491,625		491,625		396,598
Expense related to mutual fund share incentive awards	$ 0	$ 1,380,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	350,000
Canadian Plan \| Westwood International Advisors Inc
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amount of shares purchased in the open market			$ 700,000
Purchases of treasury stock, shares			27,474
Mutual Fund Share Incentive Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Service period of mutual fund share incentive award			3 years
Expense related to mutual fund share incentive awards	$ 9,000	$ 12,000

LONG-TERM INCENTIVE COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
DomesticEmployeeServiceAward [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense		$ 1,283
Performance Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense		97
DomesticServiceAndPerformanceAward [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	0	1,380
CanadianEmployeeServiceAward [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	0	0
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 0	$ 1,380

LONG-TERM INCENTIVE COMPENSATION (Details 1) - Restricted Shares Subject Only to a Service Condition	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Restricted shares subject only to a service condition:
Non-vested, beginning balance, shares \| shares	396,598
Granted (shares) \| shares	262,373
Vested (shares) \| shares	(140,974)
Forfeited (shares) \| shares	(26,372)
Non-vested, ending balance, shares \| shares	491,625
Non-vested, beginning balance, (dollars per share) \| $ / shares	$ 48.31
Granted (dollars per share) \| $ / shares	27.39
Vested (dollars per share) \| $ / shares	53.06
Forfeited (dollars per share) \| $ / shares	39.72
Non-vested, ending balance, (dollars per share) \| $ / shares	$ 36.25

LONG-TERM INCENTIVE COMPENSATION (Details 2) - Restricted Shares Subject to Service and Performance Conditions	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Restricted shares subject only to a service condition:
Non-vested, beginning balance, shares \| shares	80,975
Vested (shares) \| shares	(35,275)
Non-vested, ending balance, shares \| shares	45,700
Non-vested, beginning balance, (dollars per share) \| $ / shares	$ 49.73
Vested (dollars per share) \| $ / shares	55.11
Non-vested, ending balance, (dollars per share) \| $ / shares	$ 45.58

LEASES (Textual) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 3,127	$ 3,673

SEGMENT REPORTING (Details Textual)	6 Months Ended
SEGMENT REPORTING (Details Textual)	Jun. 30, 2024 Segment
Segment Reporting [Abstract]
Number of operating segments	2

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT REPORTING (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Net fee revenues from external sources	$ 22,366	$ 21,823	$ 44,296	$ 44,442
Net intersegment revenues	0	0	0	0
Other, net	322	122	1,124	230
Total revenues	22,688	21,945	45,420	44,672
Segment Assets	(147,374)	(142,105)	(147,374)	(142,105)	$ (155,167)
Goodwill	39,501	39,501	39,501	39,501	39,501
Equity Method Investments	4,578	4,180	4,578	4,180	$ 4,284
Payments to Acquire Property, Plant, and Equipment			24	97
Operating Segments \| Advisory
Segment Reporting Information [Line Items]
Net fee revenues from external sources	17,139	16,799	33,956	34,387
Net intersegment revenues	1,448	1,587	3,022	3,249
Other, net	322	122	1,124	230
Total revenues	18,909	18,508	38,102	37,866
Segment Assets	(286,921)	(268,184)	(286,921)	(268,184)
Goodwill	23,100	23,100	23,100	23,100
Equity Method Investments	4,578	4,180	4,578	4,180
Payments to Acquire Property, Plant, and Equipment			1	31
Operating Segments \| Trust
Segment Reporting Information [Line Items]
Net fee revenues from external sources	5,227	5,024	10,340	10,055
Net intersegment revenues	55	77	113	154
Other, net	0	0	0	0
Total revenues	5,282	5,101	10,453	10,209
Segment Assets	(46,553)	(44,412)	(46,553)	(44,412)
Goodwill	16,401	16,401	16,401	16,401
Equity Method Investments	0	0	0	0
Payments to Acquire Property, Plant, and Equipment			1	14
Westwood Holdings
Segment Reporting Information [Line Items]
Net fee revenues from external sources	0	0	0	0
Net intersegment revenues	0	0	0	0
Other, net	0	0	0	0
Total revenues	0	0	0	0
Segment Assets	(13,465)	(14,831)	(13,465)	(14,831)
Goodwill	0	0	0	0
Equity Method Investments	0	0	0	0
Payments to Acquire Property, Plant, and Equipment			22	52
Eliminations
Segment Reporting Information [Line Items]
Net fee revenues from external sources	0	0	0	0
Net intersegment revenues	(1,503)	(1,664)	(3,135)	(3,403)
Other, net	0	0	0	0
Total revenues	(1,503)	(1,664)	(3,135)	(3,403)
Segment Assets	199,565	185,322	199,565	185,322
Goodwill	0	0	0	0
Equity Method Investments	$ 0	$ 0	0	0
Payments to Acquire Property, Plant, and Equipment			$ 0	$ 0

SUBSEQUENT EVENTS (Details Textual) - USD ($)		3 Months Ended	6 Months Ended
SUBSEQUENT EVENTS (Details Textual) - USD ($)	Aug. 02, 2023	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023
Subsequent Event [Line Items]
Dividends declared per share (dollars per share)			$ 0.15	$ 0.15
Stock Repurchased During Period, Shares		86,346
Stock Repurchased During Period, Value		$ 1,100,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 800,000	$ 800,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared per share (dollars per share)	$ 0.15
Dividends payable, date to be paid	Oct. 01, 2024
Dividends payable, date of record	Sep. 02, 2024

Business Combinations and Asset Acquisitions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Business Combination, Consideration Transferred			$ 1,168,000
Cash Acquired in Excess of Payments to Acquire Business			(402,000)
Payments to Acquire Businesses, Gross			1,570,000
Investment Owned, at Fair Value					$ 2,417,000
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value					2,400,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					919,000
Asset Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					919,000
Business Acquisition, Pro Forma Revenue		$ 21,945,000		$ 44,672,000
Business Acquisition, Pro Forma Net Income (Loss)		2,899,000		3,613,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	$ 0.9	$ 1,100,000	1,900,000	2,300,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	100,000		500,000	100,000
Business Combination, Acquisition of Less than 100 Percent of Broadmark, Noncontontrolling Interest			994,000
Payment for Contingent Consideration Liability, Financing Activities	(1,815,000)		(1,815,000)
Payment for Contingent Consideration Liability, Operating Activities	$ (1,800,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net					382,000
Goodwill, Acquired During Period			$ 4,197,000	$ 4,197,000
Other Current Assets
Business Combination and Asset Acquisition [Abstract]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					150,000
Asset Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					150,000
Accounts Receivable
Business Combination and Asset Acquisition [Abstract]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					629,000
Asset Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					629,000
Property, Plant and Equipment
Business Combination and Asset Acquisition [Abstract]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					11,000
Asset Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					11,000
Other Assets
Business Combination and Asset Acquisition [Abstract]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					511,000
Asset Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					$ 511,000