Financial Analysis

The following table presents our revenue disaggregated by account type (in thousands). Three Months Ended March 31, 2026 2025 Advisory Fees: Institutional $ 10,623 $ 10,254 Mutual Funds & ETFs 7,377 6,832 Wealth Management 1,309 645 Trust Fees 5,318 5,429 Other, net 339 92 Total revenues $ 24,966 $ 23,252

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FAIR VALUE MEASUREMENTS ASC 820 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 equity interests in private companies without readily determinable fair values 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 our assets and liabilities measured at fair value on a recurring basis, as of the dates indicated, with the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total As of March 31, 2026: Equity investments $ 10,599 $ 151 $ $ $ 10,750 Private investment funds 4,834 4,834 Total assets measured at fair value $ 10,599 $ 151 $ $ 4,834 $ 15,584 As of December 31, 2025: Equity investments $ 17,731 $ 156 $ $ $ 17,887 Private investment funds 3,546 3,546 Total assets measured at fair value $ 17,731 $ 156 $ $ 3,546 $ 21,433 (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 v …

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GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying liabilities assumed at the date of acquisition. Changes in goodwill were as follows (in thousands): Balance at: Trust Segment Advisory Segment Total December 31, 2025 $ 16,401 $ 23,100 $ 39,501 March 31, 2026 $ 16,401 $ 23,100 $ 39,501 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 annual goodwill impairment assessment during the third quarter of 2025 and determined that no impairment loss was required. No goodwill impairments were recorded during the three months ended March 31, 2026 or March 31, 2025. 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 months ended March 31, 2026 or March 31, 2025.

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INCOME TAXES Our effective income tax rate differed from the 21% statutory rate for the three months ended March 31, 2026 and March 31, 2025 due to permanent differences related to executive compensation and the impact of state and local taxes.

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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 months ended March 31, 2026 and March 31, 2025, the Company earned immaterial fees from the affiliated funds. …

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"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 Operations 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 …

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"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 Companys 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 (""CODM""), our Chief Executive Officer, evaluates the performance of our segments based primarily on revenues. The CODM does not evaluate the performance of our segments on segment expenses so those have not been disclosed. 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. Trust 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. Other The Other column below contains the entity in which we record typical holding company expenses, including employee compensation and benefits for holding company employees, dire …

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"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 Companys Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to a fair statement of 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, 2025. 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."

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SUBSEQUENT EVENTS

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