Silvercrest Asset Management Group Inc. (SAMG) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2026. Silvercrest Asset Management Group Inc. is a full-service wealth management firm providing financial advisory and family office services to ultra-high net worth individuals and institutional investors. The company operates through its consolidated subsidiary, Silvercrest L.P. (SLP), which holds approximately 35% non-controlling interest.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $31.4 million | $31.4 million |
| Net Income | $0.5 million | $3.9 million |
| Net Income Attributable to Silvercrest | $0.2 million | $2.5 million |
| Net Income Margin | 1.7% | 12.5% |
| Adjusted EBITDA | $3.7 million | $6.5 million |
| Assets Under Management (AUM) | $35.7 billion | $35.3 billion |
| Cash and Cash Equivalents | $11.6 million | $44.1 million (Dec 31, 2025) |
| Debt (Term Loan) | $10.0 million | $4.0 million (Dec 31, 2025) |
Material Changes vs. Prior Period
- Profitability Decline: Net income dropped significantly to $0.5 million from $3.9 million in Q1 2025. This was driven by a 13.5% increase in total expenses to $30.1 million, primarily due to higher compensation costs ($21.1 million vs. $18.9 million) and general/administrative expenses ($9.0 million vs. $7.7 million).
- Expense Drivers: Compensation increases were attributed to merit-based raises, new hires (including in Ireland), higher bonus accruals, and severance costs. G&A increases were driven by professional fees and new office space in Singapore.
- Revenue Stability: Total revenue remained flat at $31.4 million despite a 3.5% decrease in AUM from the prior quarter end ($37.0 billion to $35.7 billion). The decrease in AUM was due to net client outflows and market depreciation.
- Liquidity and Debt: Cash balances decreased by approximately $32.4 million during the quarter. The company increased borrowings under its term loan facility from $4.0 million to $10.0 million to fund operations and share repurchases.
- Investment Loss: The company recorded an unrealized loss of $79,000 related to a seed investment in an Australian trust.
Guidance, Outlook, and Risks
- Share Repurchases: The company completed its $25 million "2025 Repurchase Program" in January 2026. During Q1 2026, it purchased 119,101 shares of Class A common stock at an average price of $15.67.
- Dividends: The company paid quarterly dividends of $0.21 per share on Class A common stock during the quarter.
- Tax Receivable Agreement (TRA): A liability of approximately $9.3 million exists under the TRA, requiring the company to pay 85% of tax savings realized from basis increases to SLP partners. This liability is contingent on future taxable income and share exchanges.
- Risks: Key risks include market volatility affecting AUM and revenue, the ability to retain clients and investment professionals, and the impact of the TRA on future cash flows. The company noted no material changes to risk factors from the 2025 10-K.
- Outlook: Management expects cash requirements to be met through operating cash flows. No specific forward-looking financial guidance was provided in this filing.
Investor Verification Checklist
- Verify the sustainability of the 1.7% net income margin given the 13.5% rise in operating expenses.
- Monitor the trajectory of Assets Under Management (AUM), which declined 3.5% quarter-over-quarter due to outflows and market depreciation.
- Review the impact of the Tax Receivable Agreement (TRA) on future liquidity, specifically the $9.3 million estimated liability.
- Assess the utilization of the credit facility, which increased to $10.0 million, and the company's ability to service this debt while maintaining dividend payments.
- Confirm the status of the Australian seed investment and potential for further unrealized losses.