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, 2023


☐			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 26, 2023: 9,182,716.

____________________________________________________________________________________________________

WESTWOOD HOLDINGS GROUP, INC.

INDEX


PART I	FINANCIAL INFORMATION	PAGE

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of June 30 , 2023 and December 31, 2022	1

	Condensed Consolidated Statements of Comprehensive Income (Loss ) for the Three and Six Months Ended June 30 , 2023 and 2022	2

	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended June 30 , 2023 and 2022	3

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2023 and 2022	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

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, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	15,229	$	23,859
Accounts receivable	13,609		13,900
Investments, at fair value	22,894		15,342
Prepaid income taxes	—		446
Other current assets	4,154		4,645
Total current assets	55,886		58,192
Investments	7,247		4,455
Equity method investments	4,180		6,574
Noncurrent investments at fair value	259		3,027
Goodwill	39,501		35,732
Deferred income taxes	1,535		1,762
Operating lease right-of-use assets	3,972		4,976
Intangible assets, net	26,889		28,952
Property and equipment, net of accumulated depreciation of $9,755 and $9,277	1,718		1,828
Other long-term assets	918		929
Total long-term assets	86,219		88,235
Total assets	$	142,105	$	146,427
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	5,780	$	5,678

Dividends payable	1,408		1,745
Compensation and benefits payable	5,344		8,689

Operating lease liabilities	1,276		1,502

Income taxes payable	1,044		—
Total current liabilities	14,852		17,614
Accrued dividends	657		701
Contingent consideration	7,763		12,901

Noncurrent operating lease liabilities	3,734		4,563
Total long-term liabilities	12,154		18,165
Total liabilities	27,006		35,779
Commitments and contingencies (Note 11)
Stockholders' Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 11,896,226 and outstanding 9,182,770 shares at June 30, 2023; issued 11,527,544 and outstanding 8,881,831 shares at December 31, 2022	119		115
Additional paid-in capital	200,885		199,914
Treasury stock, at cost - 2,713,456 shares at June 30, 2023; 2,645,713 shares at December 31, 2022	(85,965)		(85,128)

Retained earnings (accumulated deficit)	(959)		(4,253)
Total Westwood Holdings Group, Inc. stockholders’ equity	114,080		110,648
Noncontrolling interest in consolidated subsidiary	1,019		—
Total equity	115,099		110,648
Total liabilities and stockholders' equity	$	142,105	$	146,427

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,
	2023		2022		2023		2022
REVENUES:
Advisory fees:
Asset-based	$	16,799	$	10,980	$	33,832	$	22,770
Performance-based	—		—		555		—
Trust fees	5,024		5,365		10,055		11,080

Other, net	122		(742)		230		(1,031)
Total revenues	21,945		15,603		44,672		32,819
EXPENSES:
Employee compensation and benefits	13,688		9,133		27,890		19,467
Sales and marketing	764		509		1,504		991
Westwood mutual funds	746		445		1,478		1,041
Information technology	2,566		1,847		4,949		3,676
Professional services	1,355		832		2,884		2,352
General and administrative	3,235		2,348		6,281		4,388

(Gain) loss from change in fair value of contingent consideration	(4,078)		—		(5,138)		—
Acquisition expenses	—		887		209		887
Total expenses	18,276		16,001		40,057		32,802
Net operating income (loss)	3,669		(398)		4,615		17

Net change in unrealized appreciation (depreciation) on private investments	24		(299)		24		(262)
Net investment income (loss)	211		5		383		(11)
Other income	239		234		611		392

Income (loss) before income taxes	4,143		(458)		5,633		136
Income tax provision	1,244		(80)		2,020		464
Net income (loss)	$	2,899	$	(378)	$	3,613	$	(328)



Total comprehensive income (loss)	$	2,899	$	(378)	$	3,613	$	(328)
Less: Comprehensive income (loss) attributable to noncontrolling interest	4		—		25		—
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	2,895	$	(378)	$	3,588	$	(328)
Earnings (loss) per share:
Basic	$	0.36	$	(0.05)	$	0.45	$	(0.04)
Diluted	$	0.36	$	(0.05)	$	0.45	$	(0.04)
Weighted average shares outstanding:
Basic	7,991,228		7,944,212		7,922,954		7,904,911
Diluted	8,131,333		7,944,212		8,050,298		7,904,911

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, 2023 and 2022

(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, 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


	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings (Accumulated Deficit)		Noncontrolling Interest		Total
	Shares	Amount
Balance, March 31, 2022	8,575,451	$	110	$	196,564	$	(82,576)	$	3,162	$	—	$	117,260
Net loss	—	—		—		—		(378)		—		(378)


Issuance of restricted stock, net of forfeitures	29,438	1		(1)		—		—		—		—

Dividends declared ($0.15 per share)	—	—		—		—		(1,291)		—		(1,291)
Stock-based compensation expense	—	—		1,521		—		—		—		1,521

Purchases of treasury stock	(93,875)	—		—		(1,394)		—		—		(1,394)


Balance, June 30, 2022	8,511,014	$	111	$	198,084	$	(83,970)	$	1,493	$	—	$	115,718

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, 2023 and 2022

(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, 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


	Common Stock, Par			Additional Paid-In Capital		Treasury Stock		Retained Earnings (Accumulated Deficit)		Noncontrolling Interest		Total
	Shares	Amount
Balance, December 31, 2021	8,253,491	$	107	$	195,187	$	(81,750)	$	4,362	$	—	$	117,906

Net loss	—	—		—		—		(328)		—		(328)
Issuance of restricted stock, net of forfeitures	401,203	4		(4)		—		—		—		—

Dividends declared ($0.30 per share)	—	—		—		—		(2,541)		—		(2,541)
Stock-based compensation expense	—	—		2,901		—		—		—		2,901

Purchases of treasury stock	(106,077)	—		—		(1,594)		—		—		(1,594)
Restricted stock returned for payment of taxes	(37,603)	—		—		(626)		—		—		(626)
Balance, June 30, 2022	8,511,014	$	111	$	198,084	$	(83,970)	$	1,493	$	—	$	115,718

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,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	3,613	$	(328)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	346		352
Amortization of intangible assets	2,063		811
Net change in unrealized (appreciation) depreciation on investments	(499)		1,312

Stock-based compensation expense	3,372		2,901
Deferred income taxes	228		(502)
Non-cash lease expense	630		490
Loss on asset disposition	69		—
Gain on remeasurement of lease liabilities	(119)		—


Fair value change of contingent consideration	(5,138)		—

Change in operating assets and liabilities:
Net sales of trading securities	(7,083)		12,370
Accounts receivable	919		1,862
Other current assets	1,141		192
Accounts payable and accrued liabilities	(796)		(314)
Compensation and benefits payable	(3,345)		(5,597)
Income taxes payable	1,490		(823)
Other liabilities	(793)		(585)
Net cash provided by (used in) operating activities	(3,902)		12,141
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition, net of cash acquired	(741)		—


Purchase of property and equipment	(97)		(82)


Net cash used in investing activities	(838)		(82)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	—		(1,404)

Restricted stock returned for payment of taxes	(837)		(626)

Cash dividends paid	(3,053)		(3,264)
Net cash used in financing activities	(3,890)		(5,294)
Effect of currency rate changes on cash	—		4
NET CHANGE IN CASH AND CASH EQUIVALENTS	(8,630)		6,769
Cash and cash equivalents, beginning of period	23,859		15,206
Cash and cash equivalents, end of period	$	15,229	$	21,975

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	$	300	$	1,791
Accrued dividends	$	2,065	$	2,214
Accrued purchases of treasury stock	$	—	$	190

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. Salient Advisors, LP ("Salient") and its majority-owned subsidiary Broadmark Asset Management LLC ("Broadmark"), (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 assets under advisement ("AUA"), and fluctuations in financial markets and in the composition of AUM and AUA impact our revenues and results of operations.

Westwood Management is registered with the Securities and Exchange Commission ("SEC") as an investment adviser ("RIA") 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

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 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, 2022. 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.

3. BUSINESS COMBINATIONS

Broadmark

Westwood completed the Broadmark Acquisition in January 2023, 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

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

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):


	(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 owns approximately 80% of Broadmark's equity and accordingly we recognized $1.0 million of a noncontrolling interest in a consolidated subsidiary. 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.

For the three months ended June 30, 2023, the Company has included $1.1 million of revenue and $0.1 million of net income related to Broadmark in its Condensed Consolidated Statements of Comprehensive Income (Loss). For the six months ended June 30, 2023, the Company has included $2.3 million of revenue and $0.1 million of net income 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 and 2022 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 the historical results that would have been obtained if the Broadmark Acquisition had actually occurred on that date, nor of results that may be obtained in the future.


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Total revenues	$	21,945	$	16,725	$	44,672	$	35,121
Net income (loss)	$	2,899	$	(344)	$	3,613	$	(608)

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

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

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 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. 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 RIAs 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.

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

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands).


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Advisory Fees:
Institutional	$	9,443	$	6,632	$	19,046	$	13,681
Mutual Funds	7,093		4,140		14,279		8,689
Wealth Management	263		208		507		400
Performance-based	—		—		555		—
Trust Fees	5,024		5,365		10,055		11,080

Other, net	122		(742)		230		(1,031)
Total revenues	$	21,945	$	15,603	$	44,672	$	32,819

We serve clients primarily in the United States, as well as in certain international locations. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):


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


Three Months Ended June 30, 2022	Advisory		Trust		Other		Total


Canada	$	303	$	—	$	—	$	303

United States	10,677		5,365		(742)		15,300
Total	$	10,980	$	5,365	$	(742)	$	15,603


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


Six Months Ended June 30, 2022	Advisory		Trust		Other		Total


Canada	$	594	$	—	$	—	$	594

United States	22,176		11,080		(1,031)		32,225
Total	$	22,770	$	11,080	$	(1,031)	$	32,819

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 reviews 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 and Economic Earnings, a non-GAAP measurement. We define Economic Earnings as net income (loss) 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 because depreciation charges represent an allocation of the decline in the value of the related

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

assets that will ultimately require replacement. In addition, we do not adjust Economic Earnings for tax deductions related to restricted stock expense or amortization of intangible assets.

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. Westwood Management, Salient and Broadmark provide investment advisory services to similar clients and are included in our Advisory segment.

Trust

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, 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

June 30, 2023 segment assets	$	268,184	$	44,412	$	14,831	$	(185,322)	$	142,105
June 30, 2023 segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501

Three Months Ended June 30, 2022
Net fee revenues from external sources	$	10,980	$	5,365	$	—	$	—	$	16,345
Net intersegment revenues	536		88		—		(624)		—

Other, net	(742)		—		—		—		(742)
Total revenues	$	10,774	$	5,453	$	—	$	(624)	$	15,603

June 30, 2022 segment assets	$	223,773	$	52,105	$	28,586	$	(174,539)	$	129,925
June 30, 2022 segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)


(in thousands)	Advisory		Trust		Westwood Holdings		Eliminations		Consolidated
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

Six Months Ended June 30, 2022
Net fee revenues from external sources	$	22,770	$	11,080	$	—	$	—	$	33,850
Net intersegment revenues	1,113		178		—		(1,291)		—

Other, net	(1,031)		—		—		—		(1,031)
Total revenues	$	22,852	$	11,258	$	—	$	(1,291)	$	32,819

6. INVESTMENTS

The Company has made strategic investments to enhance the services we provide to our customers. Each of these investments is discussed below.

InvestCloud. During 2018, we made a strategic investment in InvestCloud, which is included in “Investments” on our Condensed Consolidated Balance Sheets. 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. 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.

Charis. Our investment in Charis was included in “Noncurrent investments at fair value” on our December 31, 2022 Condensed Consolidated Balance Sheets and was measured at fair value on a recurring basis. On April 3, 2023, Charis was acquired by Vista Bank ("Vista") in a transaction in which the Company traded its shares in Charis for shares in Vista.

Vista. Our investment in Vista is included in “Investments” on our Condensed Consolidated Balance Sheets. 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.

Private Equity Funding. In 2019, we made a $0.3 million investment in Westwood Hospitality. Our investment is included in “Noncurrent investments at fair value” on our Condensed Consolidated Balance Sheets, and it is 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.

Broadmark Asset Management LLC. This investment represented a 47.5% ownership interest in a non-controlled corporation prior to the Broadmark Acquisition in 2023. This investment is included in “Equity method investments” on our Condensed Consolidated Balance Sheets at December 31, 2022. In January 2023, as a result of the Broadmark Acquisition, we acquired additional equity interests in Broadmark and accounted for that investment as a consolidated subsidiary.

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

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

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, 2023:
U.S. Government and Government agency obligations	$	14,776	$	—	$	(256)	$	14,520
Money market funds	4,194		111		—		4,305
Equity funds	3,639		81		(274)		3,446
Equities	490		—		(13)		477
Exchange-traded bond funds	160		—		(14)		146
Total trading securities	23,259		192		(557)		22,894
Private investment fund	265		7		(13)		259

Total investments carried at fair value	$	23,524	$	199	$	(570)	$	23,153

December 31, 2022:
U.S. Government and Government agency obligations	$	5,728	$	—	$	(389)	$	5,339
Money market funds	4,093		111		—		4,204
Equity funds	4,863		32		(446)		4,449
Equities	1,278		—		(65)		1,213
Exchange-traded bond funds	159		—		(22)		137
Total trading securities	16,121		143		(922)		15,342
Private investment fund	265		—		(30)		235
Private equity	3,475		—		(683)		2,792
Total investments carried at fair value	$	19,861	$	143	$	(1,635)	$	18,369

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


	June 30, 2023				December 31, 2022
	Carrying value		Ownership		Carrying value		Ownership
Zarvona Energy Fund GP, L.P.	$	3,461	50.0	%	$	3,438	50.0	%
Zarvona Energy Fund II-A, L.P.	700		0.5	%	700		0.5	%
Broadmark Asset Management LLC	—		—	%	2,417		47.5	%
Salient MLP Total Return Fund, L.P.	11		—	%	11		—	%
Salient MLP Total Return TE Fund, L.P.	8		0.2	%	8		0.2	%
Total	$	4,180			$	6,574

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 and Vista, 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=.

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

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, 2023:
Investments in trading securities	$	22,894	$	—	$	—	$	—	$	22,894
Private investment fund	—		—		—		259		259

Total assets measured at fair value	$	22,894	$	—	$	—	$	259	$	23,153
Salient Acquisition contingent consideration	$	—	$	—	$	7,763	$	—	$	7,763
Total liabilities measured at fair value	$	—	$	—	$	7,763	$	—	$	7,763

As of December 31, 2022:
Investments in trading securities	$	15,342	$	—	$	—	$	—	$	15,342
Private investment fund	—		—		—		235		235
Private equity	—		—		2,792		—		2,792
Total assets measured at fair value	$	15,342	$	—	$	2,792	$	235	$	18,369
Salient Acquisition contingent consideration	$	—	$	—	$	12,901	$	—	$	12,901
Total liabilities measured at fair value	$	—	$	—	$	12,901	$	—	$	12,901
(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 shares in Charis for shares in Vista, 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):


	Fair Value using Significant Unobservable Inputs (Level 3)
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Beginning balance	$	2,792	$	4,326	$	2,792	$	4,369

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


Unrealized gains (losses) on private investments	—		(302)		—		(345)
Ending balance	$	—	$	4,024	$	—	$	4,024

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,
	2023		2022		2023		2022
Beginning balance	$	11,841	$	—	$	12,901	$	—



Total (gains) losses included in earnings	(4,078)		—		(5,138)		—
Ending balance	$	7,763	$	—	$	7,763	$	—

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

The June 30, 2023 contingent consideration fair value of $7.8 million was valued based upon updated revenue growth projections following AUM outflows in 2023 and current volatility inputs. 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 back 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:


		Range
Earn-out	Unobservable Input	Low	High	Weighted Average Rate
Revenue Retention earn-out	Discount rate	13.0%	13.5%	13.25%
	Volatility	15.0%	25.0%	20.00%

Growth earn-out	Discount rate	13.0%	13.5%	13.25%
	Volatility	15.0%	25.0%	20.00%

8. INCOME TAXES

Our effective income tax rate differed from the 21% statutory rate for the three and six months ended 2023 and 2022 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 106,000 and 89,000 anti-dilutive restricted shares outstanding for the three months ended June 30, 2023 and June 30, 2022, respectively. There were approximately 108,000 and 87,000 anti-dilutive restricted shares outstanding for the six months ended June 30, 2023 and June 30, 2022, 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,
	2023		2022		2023		2022
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	2,895	$	(378)	$	3,588	$	(328)
Weighted average shares outstanding - basic	7,991,228		7,944,212		7,922,954		7,904,911
Dilutive potential shares from unvested restricted shares	140,105		—		127,344		—

Weighted average shares outstanding - diluted	8,131,333		7,944,212		8,050,298		7,904,911
Earnings (loss) per share:
Basic	$	0.36	$	(0.05)	$	0.45	$	(0.04)
Diluted	$	0.36	$	(0.05)	$	0.45	$	(0.04)

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

10. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets 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 2022 and determined that no goodwill impairment related to the Trust segment was required. There was no goodwill impairment during the three and six months ended June 30, 2023 or June 30, 2022.

Changes in goodwill were as follows (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2023
Beginning balance	$	39,929	$	35,732
Broadmark Acquisition1	—		4,197
Salient Acquisition Adjustment2	(428)		(428)
Ending balance	$	39,501	$	39,501

1 The $4.2 million of acquired goodwill is attributable to the Advisory segment.

2 Represents subsequent purchase price adjustments for the 2022 Salient Acquisition.

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, 2023 or June 30, 2022.

11. LEASES

As of June 30, 2023 there have been no material changes outside the ordinary course of business to our leases since December 31, 2022. 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, 2022.

12. STOCKHOLDERS' EQUITY

Share Repurchase Program

As of June 30, 2023, there are $1.9 million of shares that may yet be repurchased under our plan.

During the three and six months ended June 30, 2023, the Company did not repurchase any shares of our common stock. During the three months ended June 30, 2022, the Company repurchased 57,984 shares of our common stock at an average price of $14.29 per share, including commissions, for an aggregate purchase price of $0.8 million under our share repurchase plan. During the six months ended June 30, 2022, the Company repurchased 70,186 shares of our common stock at an average price of $14.65 per share, including commissions, for an aggregate purchase price of $1.0 million under our share repurchase plan.

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 and Westwood Technology Opportunities Fund I, LP (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

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

performance, and 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. 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, 2023 and December 31, 2022.

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, 2023 and December 31, 2022.

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


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Fee Revenues	$	7.9	$	5.1	$	15.9	$	10.8

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


	As of June 30, 2023
	Assets Under Management		Corporate Investment		Amount at Risk
VIEs/VOEs:
Westwood Funds®	$	4,169	$	—	$	—
Common Trust Funds	634		—		—

Private Funds	13		11.4		11.4
Private Equity	—		0.3		0.3
All other assets:
Wealth Management	3,204
Institutional	6,969
Total Assets Under Management	$	14,989

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, 2023 and June 30, 2022, the Company earned immaterial fees from the affiliated funds.

One of our directors serves 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 and June 30, 2022.

15. SUBSEQUENT EVENTS

Dividend Declared

On August 2, 2023, the Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock payable on October 2, 2023 to stockholders of record on September 1, 2023.

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, 2022 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., Salient Advisors, LP and Broadmark Asset Management LLC (each of which is an SEC-registered investment advisor ("RIA") 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.

In January 2023 we acquired an additional 32% interest in Broadmark for $1.6 million, increasing our ownership of Broadmark to approximately 80%. Broadmark's tactical absolute return strategies offer us an established client base and provide future growth potential. Prior to the Broadmark acquisition, we had a $2.4 million equity method investment in Broadmark, which we derecognized upon acquiring a controlling interest in January 2023.

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 $15.0 billion and AUA of approximately $1.2 billion at June 30, 2023. We have established a track record of delivering competitive, risk-adjusted returns for our clients.

With respect to most of our client 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, with an average of over twenty years of investment experience among members.

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 Condensed 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 Condensed 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 Expense

Acquisition expense consists of costs related to our 2022 acquisition of Salient.

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.

Investment Income

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.

Firm-wide Assets Under Management

Firm-wide assets under management of $16.2 billion at June 30, 2023 consisted of $15.0 billion of AUM and $1.2 billion of AUA.

AUM increased $2.9 billion to $15.0 billion at June 30, 2023 compared with $12.1 billion at June 30, 2022. The average of beginning and ending AUM for the second quarter of 2023 was $15.0 billion compared to $13.0 billion for the second quarter of 2022.

The following table displays AUM as of June 30, 2023 and 2022 (in millions):



	As of June 30,
	2023		2022		Change
Institutional(1)	$	6,969	$	5,889	18	%
Wealth Management(2)	3,851		3,676		5
Mutual Funds(3)	4,169		2,570		62
Total AUM(4)	$	14,989	$	12,135	24	%

(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 $1.2 billion and $246 million of AUA as of June 30, 2023 and 2022, 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)	2023		2022		2023		2022
Institutional
Beginning of period assets*	$	7,039	$	6,716	$	6,968	$	7,037
Inflows	109		36		239		115
Outflows	(415)		(105)		(576)		(260)
Net client flows	(306)		(69)		(337)		(145)

Market appreciation (depreciation)	236		(758)		338		(1,003)
Net change	(70)		(827)		1		(1,148)
End of period assets	$	6,969	$	5,889	$	6,969	$	5,889

Wealth Management
Beginning of period assets	$	3,765	$	4,181	$	3,666	$	4,420
Inflows	88		87		178		196
Outflows	(146)		(143)		(276)		(289)
Net client flows	(58)		(56)		(98)		(93)
Market appreciation (depreciation)	144		(449)		283		(651)
Net change	86		(505)		185		(744)
End of period assets	$	3,851	$	3,676	$	3,851	$	3,676

Mutual Funds
Beginning of period assets*	$	4,147	$	2,957	$	4,145	$	3,046
Inflows	218		142		522		410
Outflows	(336)		(200)		(714)		(418)
Net client flows	(118)		(58)		(192)		(8)
Market appreciation (depreciation)	140		(329)		216		(468)
Net change	22		(387)		24		(476)
End of period assets	$	4,169	$	2,570	$	4,169	$	2,570

Total AUM
Beginning of period assets	$	14,951	$	13,854	$	14,779	$	14,503
Inflows	415		265		939		721
Outflows	(897)		(448)		(1,566)		(967)
Net client flows	(482)		(183)		(627)		(246)

Market appreciation (depreciation)	520		(1,536)		837		(2,122)
Net change	38		(1,719)		210		(2,368)
End of period assets	$	14,989	$	12,135	$	14,989	$	12,135

* 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, 2023 compared to the three months ended June 30, 2022

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

The $1.7 billion decrease in AUM for the three months ended June 30, 2022 was due to market depreciation of $1.5 billion and net outflows of $0.2 billion. Net outflows were primarily related to our SmallCap strategy.

Six months ended June 30, 2023 compared to the six months ended June 30, 2022

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.

The $2.4 billion decrease in AUM for the six months ended June 30, 2022 was due to market depreciation of $2.1 billion and net outflows of $0.2 billion. Net outflows were primarily related to our SmallCap and Enhanced Balance strategies.

Roll-Forward of Assets Under Advisement

AUA has historically been disclosed in totality due to its relative insignificance to our business. However, following our 2022 acquisition of Salient's asset management business, AUA is now a more meaningful component of our business. Accordingly, we will present further AUA details going forward:


	Three Months Ended June 30,		Six Months Ended June 30,
(in millions)	2023		2023
Assets Under Advisement
Beginning of period assets	$	1,180	$	1,255
Inflows	38		84
Outflows	(94)		(189)
Net client flows	(56)		(105)
Market appreciation (depreciation)	46		20
Net change	(10)		(85)
End of period assets	$	1,170	$	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,
	2023		2022		Change		2023		2022		Change
Revenues:
Advisory fees: asset-based	$	16,799	$	10,980	53	%	$	33,832	$	22,770	49	%
Advisory fees: performance-based	—		—		NM		555		—		NM
Trust fees: asset-based	5,024		5,365		(6)		10,055		11,080		(9)

Other, net	122		(742)		(116)		230		(1,031)		(122)
Total revenues	21,945		15,603		41		44,672		32,819		36
Expenses:
Employee compensation and benefits	13,688		9,133		50		27,890		19,467		43
Sales and marketing	764		509		50		1,504		991		52
Westwood mutual funds	746		445		68		1,478		1,041		42
Information technology	2,566		1,847		39		4,949		3,676		35
Professional services	1,355		832		63		2,884		2,352		23
General and administrative	3,235		2,348		38		6,281		4,388		43
(Gain) loss from change in fair value of contingent consideration	(4,078)		—		NM		(5,138)		—		NM
Acquisition expenses	—		887		NM		209		887		(76)

Total expenses	18,276		16,001		14		40,057		32,802		22
Net operating income (loss)	3,669		(398)				4,615		17

Net change in unrealized appreciation (depreciation) on private investments	24		(299)		(108)		24		(262)		(109)
Net investment income	211		5		4,120		383		(11)		(3,582)
Other income	239		234		2		611		392		56

Income (loss) before income taxes	4,143		(458)				5,633		136
Income tax provision	1,244		(80)		(1655)		2,020		464		335
Net income (loss)	$	2,899	$	(378)	(867)	%	$	3,613	$	(328)	(1,202)	%
Less: Comprehensive income (loss) attributable to noncontrolling interest	4		—		NM		25		—		NM
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	2,895	$	(378)	(866)	%	$	3,588	$	(328)	(1,194)	%

_________________________

NM Not meaningful

Three months ended June 30, 2023 compared to three months ended June 30, 2022

Total revenues. Total revenues increased $6.3 million, or 41%, to $21.9 million for the three months ended June 30, 2023 compared with $15.6 million for the three months ended June 30, 2022. Asset-based advisory fees increased $5.8 million, or 53%, reflecting higher average AUM following our 2022 acquisition of Salient.

Employee compensation and benefits. Employee compensation and benefits increased $4.6 million to $13.7 million compared with $9.1 million for 2022 due to additional headcount resulting from the Salient acquisition.

Information Technology. Information technology expenses increased $0.8 million, or 39%, to $2.6 million compared with $1.8 million for 2022 primarily due to additional software licenses and investment research expenses.

Professional services. Professional services increased $0.6 million, or 63%, to $1.4 million compared with $0.8 million for 2022 primarily due to an increase in legal and advisory costs.

General and Administrative. General and administrative expenses increased $0.9 million, or 38%, to $3.2 million compared with $2.3 million for 2022 primarily due to increased intangible asset amortization following the Salient acquisition.

(Gain) loss from change in fair value of contingent consideration. We recorded a gain of approximately $4.1 million upon the remeasurement of contingent consideration of the 2022 Salient acquisition.

Income tax provision. Our effective tax rate differed from the 21% statutory rate for the second quarter of 2023 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, 2023 compared to six months ended June 30, 2022

Total revenues. Total revenues increased $11.9 million, or 36%, to $44.7 million for the six months ended June 30, 2023 compared with $32.8 million for the six months ended June 30, 2022. Asset-based advisory fees increased $11.0 million, or 49%, reflecting higher average AUM following our 2022 acquisition of Salient. Trust fees decreased $1.0 million, or 9%, primarily related to lower average AUM.

Employee compensation and benefits. Employee compensation and benefits increased $8.4 million to $27.9 million compared with $19.5 million for 2022 due to additional headcount resulting from the Salient acquisition.

Sales and marketing. Sales and marketing expenses increased $0.5 million, or 52%, to $1.5 million compared with $1.0 million for 2022 due to higher product placement fees.

Information Technology. Information technology expenses increased $1.2 million, or 35%, to $4.9 million compared with $3.7 million for 2022 primarily due to additional software licenses and investment research expenses.

General and Administrative. General and administrative expenses increased $1.9 million, or 43%, to $6.3 million compared with $4.4 million for 2022 primarily due to increased intangible asset amortization following the Salient acquisition.

(Gain) loss from change in fair value of contingent consideration. We recorded a gain of approximately $5.2 million upon the remeasurement of contingent consideration of the 2022 Salient acquisition.

Income tax provision. The effective tax rate for the six months ended June 30, 2023 differed from the 21% statutory rate for 2023 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.

Supplemental Financial Information

As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic Earnings 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 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 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 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 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 for tax deductions related to restricted stock expense or amortization of intangible assets. Economic EPS represents Economic Earnings divided by diluted weighted average shares outstanding.

The following tables provide a reconciliation of net income to Economic Earnings and Economic Earnings by segment (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Change		Six Months Ended June 30,
	2023		2022				2023		2022		Change
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	2,895	$	(378)	(866)	%	$	3,588	$	(328)	(1,194)	%
Stock-based compensation expense	1,624		1,521		7		3,372		2,901		16

Intangible amortization	1,042		406		157		2,063		811		154

Tax benefit from goodwill amortization	125		59		112		250		118		112
Economic Earnings	$	5,686	$	1,608	254	%	$	9,273	$	3,502	165	%
Earnings (loss) per share	$	0.36	$	(0.05)	(820)	%	$	0.45	$	(0.04)	(1225)	%
Stock-based compensation expense	0.19		0.19		0		0.41		0.37		11

Intangible amortization	0.13		0.05		160		0.26		0.10		160

Tax benefit from goodwill amortization	0.02		0.01		100		0.03		0.01		200
Economic Earnings per share	$	0.70	$	0.20	250	%	$	1.15	$	0.44	161	%
Diluted weighted average shares outstanding	8,131,333		7,944,212				8,050,298		7,904,911

Economic Earnings by Segment:
Advisory	$	4,733	$	3,494	35	%	$	9,740	$	7,838	24	%
Trust	1,183		839		41		1,665		1,627		2
Westwood Holdings	(222)		(2,725)		(92)		(2,124)		(5,963)		(64)
Consolidated	$	5,694	$	1,608	254	%	$	9,281	$	3,502	165	%

Liquidity and Capital Resources

We fund our operations and cash requirements with cash generated from operating activities. We may also use cash from operations to pay dividends to our stockholders. We had no debt as of June 30, 2023 and December 31, 2022. 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 $38.1 million and $39.2 million as of June 30, 2023 and December 31, 2022, respectively. At June 30, 2023 and December 31, 2022, working capital aggregated $41.0 million and $40.6 million, respectively.

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. During the six months ended June 30, 2022, cash flow provided by operating activities was $12.1 million, which included net sales of $12.4 million of current investments and a $1.9 million change in accounts receivable, partially offset by a reduction in compensation and benefits payable of $5.6 million.

Cash flow used in investing activities during the six months ended June 30, 2023 was primarily for the Broadmark Acquisition. Cash flow used in investing activities during the six months ended June 30, 2022 was related to purchases of property and equipment.

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. Cash flows used in financing activities of $5.3 million for the six months ended June 30, 2022 reflected the payment of dividends, treasury stock repurchases 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, 2023, Westwood Trust had approximately $7.9 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, 2022. 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, 2023, there have been no material changes outside of the ordinary course of business to our contractual obligations since December 31, 2022. 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, 2022.

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, 2022. 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, 2022.

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, 2022.

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, 2023, 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. Due to our significant investments in cloud-based systems, the impact of our employees working remotely did not hinder the execution of our internal control processes and procedures.

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, 2022 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. During the three months ended June 30, 2023, the Company did not repurchase any shares of our common stock.

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, 2023, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022; (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2023 and 2022; (iii) Condensed Consolidated Statements of Stockholders' Equity; (iv) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022; 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:

August 2, 2023

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: August 2, 2023

/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: August 2, 2023

/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, 2023 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: August 2, 2023

/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, 2023 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: August 2, 2023

/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, 2023	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	2023
Document Fiscal Period Focus	Q2
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		9,182,716
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, 2023

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Operating Lease, Liability, Current		$ 1,276,000	$ 1,502,000
Current Assets:
Cash and cash equivalents		15,229,000	23,859,000
Accounts receivable		13,609,000	13,900,000
Investments, at fair value		22,894,000	15,342,000
Income Taxes Receivable, Current		0	446,000
Other current assets		4,154,000	4,645,000
Total current assets		55,886,000	58,192,000
Long-term Investments		7,247,000	4,455,000
Long-term Investments Carried at Fair Value		259,000	3,027,000
Goodwill		39,501,000	35,732,000
Deferred income taxes		1,535,000	1,762,000
Operating lease right-of-use assets		3,972,000	4,976,000
Intangible assets, net		26,889,000	28,952,000
Property and equipment, net of accumulated depreciation of $9,755 and $9,277		1,718,000	1,828,000
Other long-term assets		918,000	929,000
Total assets		142,105,000	146,427,000
Current liabilities:
Accounts payable and accrued liabilities		5,780,000	5,678,000
Dividends payable		1,408,000	1,745,000
Compensation and benefits payable		5,344,000	8,689,000
Income taxes payable		1,044,000	0
Total current liabilities		14,852,000	17,614,000
Accrued dividends		657,000	701,000
Operating Lease, Liability, Noncurrent		3,734,000	4,563,000
Liabilities, Noncurrent	$ 12,154,000		18,165,000
Total liabilities		27,006,000	35,779,000
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 11,896,226 and outstanding 9,182,770 shares at June 30, 2023; issued 11,527,544 and outstanding 8,881,831 shares at December 31, 2022		119,000	115,000
Additional paid-in capital		200,885,000	199,914,000
Treasury stock, at cost - 2,713,456 shares at June 30, 2023; 2,645,713 shares at December 31, 2022		(85,965,000)	(85,128,000)
Retained earnings (accumulated deficit)		(959,000)	(4,253,000)
Total Westwood Holdings Group, Inc. stockholders’ equity		114,080,000	110,648,000
Stockholders' Equity, Total		115,099,000	110,648,000
Total liabilities and stockholders' equity		142,105,000	146,427,000
Equity Method Investments		4,180,000	6,574,000
Total long-term assets		86,219,000	88,235,000
Asset Acquisition, Contingent Consideration, Liability		7,763,000	12,901,000
Members' Equity Attributable to Noncontrolling Interest		$ 1,019,000	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
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	$ 259	$ 3,027

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ 2,899	$ (378)	$ 3,613	$ (328)
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Nonredeemable	4	0	25	0
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized	0	887	209	887
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	2,895	(378)	3,588	(328)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	2,899	(378)	3,613	(328)
REVENUES:
Other Revenue, Net	122	(742)	230	(1,031)
Total revenues	21,945	15,603	44,672	32,819
EXPENSES:
Employee compensation and benefits	13,688	9,133	27,890	19,467
Sales and marketing	764	509	1,504	991
Westwood mutual funds	746	445	1,478	1,041
Information technology	2,566	1,847	4,949	3,676
Professional services	1,355	832	2,884	2,352
General and administrative	3,235	2,348	6,281	4,388
Foreign Currency Transaction Gain (Loss), before Tax	(4,078)	0	(5,138)	0
Total expenses	18,276	16,001	40,057	32,802
Operating Income (Loss)	3,669	(398)	4,615	17
Net change in unrealized appreciation (depreciation) on private investments	24	(299)	24	(262)
Gain on sale of operations			383	(11)
Other Income	239	234	611	392
Income (loss) before income taxes	4,143	(458)	5,633	136
Income tax provision	1,244	(80)	2,020	464
Other comprehensive income (loss):
Total comprehensive income (loss)	$ 2,895	$ (378)	$ 3,588	$ (328)
Earnings (loss) per share:
Basic (dollars per share)	$ 0.36	$ (0.05)	$ 0.45	$ (0.04)
Diluted (dollars per share)	$ 0.36	$ (0.05)	$ 0.45	$ (0.04)
Weighted average shares outstanding:
Basic (shares)	7,991,228	7,944,212	7,922,954	7,904,911
Diluted (shares)	8,131,333	7,944,212	8,050,298	7,904,911
Investment Income, Investment Expense			$ 211	$ 5
Asset Management [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 16,799	$ 10,980	33,832	22,770
Investment Performance [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	0	555	0
Fiduciary and Trust [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 5,024	$ 5,365	$ 10,055	$ 11,080

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, 2021	$ 117,906,000	$ 107,000	$ 195,187,000	$ (81,750,000)	$ 4,362,000
BALANCE, shares at Dec. 31, 2021		8,253,491,000
Net Income (Loss) Attributable to Parent	(328,000)
Issuance of restricted stock, net of forfeitures, shares		401,203,000
Dividends declared	(2,541,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	2,901,000		2,901,000
Purchases of treasury stock, shares		(106,077,000)
Restricted stock returned for payment of taxes, shares		(37,603,000)
BALANCE at Jun. 30, 2022	115,718,000	$ 111,000	198,084,000	(83,970,000)	1,493,000
BALANCE, shares at Jun. 30, 2022		8,511,014,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(328,000)
Restricted Stock, Value, Shares Issued Net of Tax Withholdings	626,000			626,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 4,000	(4,000)
Treasury Stock, Value, Acquired, Cost Method	1,594,000			1,594,000
BALANCE at Mar. 31, 2022		$ 110,000	196,564,000	(82,576,000)	3,162,000
BALANCE, shares at Mar. 31, 2022		8,575,451,000
Net Income (Loss) Attributable to Parent	(378,000)
Issuance of restricted stock, net of forfeitures, shares		29,438,000
Dividends declared	(1,291,000)		(1,192,000)		(1,291,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,521,000		1,521,000
Purchases of treasury stock, shares		(93,875,000)
BALANCE at Jun. 30, 2022	115,718,000	$ 111,000	198,084,000	(83,970,000)	1,493,000
BALANCE, shares at Jun. 30, 2022		8,511,014,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(378,000)
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 1,000	(1,000)
Treasury Stock, Value, Acquired, Cost Method	1,394,000			1,394,000
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	8,904,902	8,881,831
BALANCE at Mar. 31, 2023	$ 111,870,000	$ 119,000	200,453,000	(85,965,000)	(3,752,000)
BALANCE, shares at Mar. 31, 2023		9,212,390
Net Income (Loss) Attributable to Noncontrolling Interest					1,015,000
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	8,904,902	8,881,831
Net Income (Loss) Attributable to Parent	$ 3,588,000
Issuance of restricted stock, net of forfeitures, shares		368,682
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)
BALANCE at Jun. 30, 2023	$ 114,080,000	$ 119,000	200,885,000	(85,965,000)	(959,000)	$ 1,019,000
BALANCE, shares at Jun. 30, 2023	8,906,152	9,182,770
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 3,613,000
Net Income (Loss) Attributable to Noncontrolling Interest	25,000
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 Mar. 31, 2023	111,870,000	$ 119,000	200,453,000	(85,965,000)	(3,752,000)
BALANCE, shares at Mar. 31, 2023		9,212,390
Net Income (Loss) Attributable to Parent	2,895,000
Issuance of restricted stock, net of forfeitures, shares		(29,620)
Dividends declared	(1,294,000)				(102,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,624,000		1,624,000
BALANCE at Jun. 30, 2023	$ 114,080,000	$ 119,000	200,885,000	$ (85,965,000)	$ (959,000)	$ 1,019,000
BALANCE, shares at Jun. 30, 2023	8,906,152	9,182,770
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
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 115,099,000

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
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, 2023 USD ($)	Jun. 30, 2022 USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) Attributable to Parent	$ 3,588	$ (328)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	346	352
Amortization of intangible assets	2,063	811
Net change in unrealized (appreciation) depreciation on investments	(499)	1,312
Stock-based compensation expense	3,372	2,901
Deferred income taxes	228	(502)
Non-cash lease expense	630	490
Gain (Loss) on Disposition of Assets	69	0
Change in operating assets and liabilities:
Net sales of trading securities	(7,083)	12,370
Accounts receivable	919	1,862
Other current assets	1,141	192
Accounts payable and accrued liabilities	(796)	(314)
Compensation and benefits payable	(3,345)	(5,597)
Income taxes payable	1,490	(823)
Other liabilities	(793)	(585)
Net Cash Provided by (Used in) Operating Activities	(3,902)	12,141
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(97)	(82)
Net Cash Provided by (Used in) Investing Activities	(838)	(82)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	0	(1,404)
Restricted stock returned for payment of taxes	(837)	(626)
Cash dividends paid	(3,053)	(3,264)
Net Cash Provided by (Used in) Financing Activities	(3,890)	(5,294)
Effect of currency rate changes on cash	0	4
NET CHANGE IN CASH AND CASH EQUIVALENTS	(8,630)	6,769
Cash and cash equivalents, beginning of period	23,859	15,206
Cash and cash equivalents, end of period	15,229	21,975
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	300	1,791
Accrued dividends	2,065	2,214
0	0	190
Long-term Investments	7,247
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	3,588	(328)
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	(5,138)
Payments to Acquire Businesses, Net of Cash Acquired	(741)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	3,613	$ (328)
RouAssetsAndLeaseLiabilityRemeasurementAdjustment	$ (119)

DESCRIPTION OF THE BUSINESS	6 Months Ended
DESCRIPTION OF THE BUSINESS	Jun. 30, 2023
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. Salient Advisors, LP ("Salient") and its majority-owned subsidiary Broadmark Asset Management LLC ("Broadmark"), (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 assets under advisement ("AUA"), and fluctuations in financial markets and in the composition of AUM and AUA impact our revenues and results of operations. Westwood Management is registered with the Securities and Exchange Commission ("SEC") as an investment adviser ("RIA") 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, 2023
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, 2022. 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, 2023

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, 2023:
Investments in trading securities	$	22,894	$	—	$	—	$	—	$	22,894
Private investment fund	—		—		—		259		259

Total assets measured at fair value	$	22,894	$	—	$	—	$	259	$	23,153
Salient Acquisition contingent consideration	$	—	$	—	$	7,763	$	—	$	7,763
Total liabilities measured at fair value	$	—	$	—	$	7,763	$	—	$	7,763

As of December 31, 2022:
Investments in trading securities	$	15,342	$	—	$	—	$	—	$	15,342
Private investment fund	—		—		—		235		235
Private equity	—		—		2,792		—		2,792
Total assets measured at fair value	$	15,342	$	—	$	2,792	$	235	$	18,369
Salient Acquisition contingent consideration	$	—	$	—	$	12,901	$	—	$	12,901
Total liabilities measured at fair value	$	—	$	—	$	12,901	$	—	$	12,901
(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,				Six Months Ended June 30,
	2023		2022		2023		2022
Beginning balance	$	2,792	$	4,326	$	2,792	$	4,369

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


Unrealized gains (losses) on private investments	—		(302)		—		(345)
Ending balance	$	—	$	4,024	$	—	$	4,024

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,
	2023		2022		2023		2022
Beginning balance	$	11,841	$	—	$	12,901	$	—



Total (gains) losses included in earnings	(4,078)		—		(5,138)		—
Ending balance	$	7,763	$	—	$	7,763	$	—

GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Changes in goodwill were as follows (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2023
Beginning balance	$	39,929	$	35,732
Broadmark Acquisition1	—		4,197
Salient Acquisition Adjustment2	(428)		(428)
Ending balance	$	39,501	$	39,501

1 The $4.2 million of acquired goodwill is attributable to the Advisory segment.

2 Represents subsequent purchase price adjustments for the 2022 Salient Acquisition.

Other Intangible Assets

REVENUE (Notes)

6 Months Ended

Jun. 30, 2023

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

Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands).


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Advisory Fees:
Institutional	$	9,443	$	6,632	$	19,046	$	13,681
Mutual Funds	7,093		4,140		14,279		8,689
Wealth Management	263		208		507		400
Performance-based	—		—		555		—
Trust Fees	5,024		5,365		10,055		11,080

Other, net	122		(742)		230		(1,031)
Total revenues	$	21,945	$	15,603	$	44,672	$	32,819


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


Three Months Ended June 30, 2022	Advisory		Trust		Other		Total


Canada	$	303	$	—	$	—	$	303

United States	10,677		5,365		(742)		15,300
Total	$	10,980	$	5,365	$	(742)	$	15,603

INCOME TAXES (Notes)	6 Months Ended
INCOME TAXES (Notes)	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXESOur effective income tax rate differed from the 21% statutory rate for the three and six months ended 2023 and 2022 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, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSThe 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, 2023 and June 30, 2022, the Company earned immaterial fees from the affiliated funds.

SEGMENT REPORTING

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

assets that will ultimately require replacement. In addition, we do not adjust Economic Earnings for tax deductions related to restricted stock expense or amortization of intangible assets.

Advisory

Trust

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, 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

June 30, 2023 segment assets	$	268,184	$	44,412	$	14,831	$	(185,322)	$	142,105
June 30, 2023 segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501

Three Months Ended June 30, 2022
Net fee revenues from external sources	$	10,980	$	5,365	$	—	$	—	$	16,345
Net intersegment revenues	536		88		—		(624)		—

Other, net	(742)		—		—		—		(742)
Total revenues	$	10,774	$	5,453	$	—	$	(624)	$	15,603

June 30, 2022 segment assets	$	223,773	$	52,105	$	28,586	$	(174,539)	$	129,925
June 30, 2022 segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2023
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, 2023
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 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. 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 RIAs 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. 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, 2022. 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, 2023
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, 2023
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 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. 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 RIAs 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. 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, 2023

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,
	2023		2022		2023		2022
Comprehensive income (loss) attributable to Westwood Holdings Group, Inc.	$	2,895	$	(378)	$	3,588	$	(328)
Weighted average shares outstanding - basic	7,991,228		7,944,212		7,922,954		7,904,911
Dilutive potential shares from unvested restricted shares	140,105		—		127,344		—

Weighted average shares outstanding - diluted	8,131,333		7,944,212		8,050,298		7,904,911
Earnings (loss) per share:
Basic	$	0.36	$	(0.05)	$	0.45	$	(0.04)
Diluted	$	0.36	$	(0.05)	$	0.45	$	(0.04)

INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023:
U.S. Government and Government agency obligations	$	14,776	$	—	$	(256)	$	14,520
Money market funds	4,194		111		—		4,305
Equity funds	3,639		81		(274)		3,446
Equities	490		—		(13)		477
Exchange-traded bond funds	160		—		(14)		146
Total trading securities	23,259		192		(557)		22,894
Private investment fund	265		7		(13)		259

Total investments carried at fair value	$	23,524	$	199	$	(570)	$	23,153

December 31, 2022:
U.S. Government and Government agency obligations	$	5,728	$	—	$	(389)	$	5,339
Money market funds	4,093		111		—		4,204
Equity funds	4,863		32		(446)		4,449
Equities	1,278		—		(65)		1,213
Exchange-traded bond funds	159		—		(22)		137
Total trading securities	16,121		143		(922)		15,342
Private investment fund	265		—		(30)		235
Private equity	3,475		—		(683)		2,792
Total investments carried at fair value	$	19,861	$	143	$	(1,635)	$	18,369

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023:
Investments in trading securities	$	22,894	$	—	$	—	$	—	$	22,894
Private investment fund	—		—		—		259		259

Total assets measured at fair value	$	22,894	$	—	$	—	$	259	$	23,153
Salient Acquisition contingent consideration	$	—	$	—	$	7,763	$	—	$	7,763
Total liabilities measured at fair value	$	—	$	—	$	7,763	$	—	$	7,763

As of December 31, 2022:
Investments in trading securities	$	15,342	$	—	$	—	$	—	$	15,342
Private investment fund	—		—		—		235		235
Private equity	—		—		2,792		—		2,792
Total assets measured at fair value	$	15,342	$	—	$	2,792	$	235	$	18,369
Salient Acquisition contingent consideration	$	—	$	—	$	12,901	$	—	$	12,901
Total liabilities measured at fair value	$	—	$	—	$	12,901	$	—	$	12,901
(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,				Six Months Ended June 30,
	2023		2022		2023		2022
Beginning balance	$	2,792	$	4,326	$	2,792	$	4,369

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


Unrealized gains (losses) on private investments	—		(302)		—		(345)
Ending balance	$	—	$	4,024	$	—	$	4,024

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,
	2023		2022		2023		2022
Beginning balance	$	11,841	$	—	$	12,901	$	—



Total (gains) losses included in earnings	(4,078)		—		(5,138)		—
Ending balance	$	7,763	$	—	$	7,763	$	—

VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023
	Assets Under Management		Corporate Investment		Amount at Risk
VIEs/VOEs:
Westwood Funds®	$	4,169	$	—	$	—
Common Trust Funds	634		—		—

Private Funds	13		11.4		11.4
Private Equity	—		0.3		0.3
All other assets:
Wealth Management	3,204
Institutional	6,969
Total Assets Under Management	$	14,989

REVENUE Table (Tables)

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
Advisory Fees:
Institutional	$	9,443	$	6,632	$	19,046	$	13,681
Mutual Funds	7,093		4,140		14,279		8,689
Wealth Management	263		208		507		400
Performance-based	—		—		555		—
Trust Fees	5,024		5,365		10,055		11,080

Other, net	122		(742)		230		(1,031)
Total revenues	$	21,945	$	15,603	$	44,672	$	32,819

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, 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


Three Months Ended June 30, 2022	Advisory		Trust		Other		Total


Canada	$	303	$	—	$	—	$	303

United States	10,677		5,365		(742)		15,300
Total	$	10,980	$	5,365	$	(742)	$	15,603

LONG-TERM INCENTIVE COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2023

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,
	2023		2022
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, 2023:


	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, 2023	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, 2023:


	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, 2023	45,700	$	45.58

SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2023

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, 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

June 30, 2023 segment assets	$	268,184	$	44,412	$	14,831	$	(185,322)	$	142,105
June 30, 2023 segment goodwill	$	23,100	$	16,401	$	—	$	—	$	39,501

Three Months Ended June 30, 2022
Net fee revenues from external sources	$	10,980	$	5,365	$	—	$	—	$	16,345
Net intersegment revenues	536		88		—		(624)		—

Other, net	(742)		—		—		—		(742)
Total revenues	$	10,774	$	5,453	$	—	$	(624)	$	15,603

June 30, 2022 segment assets	$	223,773	$	52,105	$	28,586	$	(174,539)	$	129,925
June 30, 2022 segment goodwill	$	—	$	16,401	$	—	$	—	$	16,401

DESCRIPTION OF THE BUSINESS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gain (Loss) on Disposition of Assets	$ 69	$ 0
Payments to Acquire Businesses, Net of Cash Acquired	(741)
Business Combination, Consideration Transferred	$ 1,168
Noncontrolling Interest, Ownership Percentage by Parent	80.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage	32.00%
Business combination, consideration transferred for Broadmark	$ 1,200

EARNINGS PER SHARE (Details Textual) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive restricted shares	106	89	108	87

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Computation of Basic and Diluted Shares
Net Income (Loss) Attributable to Parent	$ 2,895	$ (378)	$ 3,588	$ (328)
Weighted average shares outstanding - basic (shares)	7,991,228	7,944,212	7,922,954	7,904,911
Dilutive potential shares from unvested restricted shares (shares)	140,105	0	127,344	0
Weighted average shares outstanding - diluted (shares)	8,131,333	7,944,212	8,050,298	7,904,911
Earnings per share:
Basic (dollars per share)	$ 0.36	$ (0.05)	$ 0.45	$ (0.04)
Diluted (dollars per share)	$ 0.36	$ (0.05)	$ 0.45	$ (0.04)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 2,895	$ (378)	$ 3,588	$ (328)

INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INVESTMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Net change in unrealized appreciation (depreciation) on private investments	$ 24	$ (299)	$ 24	$ (262)
Cost Method Investments	4,400		4,400
Cost	23,259		23,259		$ 16,121
Gross Unrealized Gains		143	192
Debt Securities, Trading, Unrealized Loss		(922)	(557)
Investments in trading securities	22,894		22,894		15,342
Cost	23,524		23,524		19,861
Gross Unrealized Gains		143	199
Debt Securities, Trading, and Equity Securities, Unrealized Loss		(1,635)	(570)
Estimated Fair Value	23,153		23,153		18,369
Long-term Investments	7,247		7,247		$ 4,455
Equity Method Investment, Ownership Percentage					47.50%
Long-term Investments Carried at Fair Value	259		259		$ 3,027
Long-term Investments Carried at Fair Value using NAV	300		300
Equity Method Investments	$ 4,180		$ 4,180		$ 6,574
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	$ 3,461		$ 3,461		$ 3,438
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
Broadmark Asset Management LLC
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Equity Method Investment, Ownership Percentage	0.00%		0.00%		47.50%
Equity Method Investments	$ 0		$ 0		$ 2,417
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	4,180		4,180		6,574
U.S. Government and Government agency obligations
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	14,776		14,776		5,728
Gross Unrealized Gains		0	0
Debt Securities, Trading, Unrealized Loss		(389)	(256)
Investments in trading securities	14,520		14,520		5,339
Money market funds
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	4,194		4,194		4,093
Gross Unrealized Gains		111	111
Debt Securities, Trading, Unrealized Loss		0	0
Investments in trading securities	4,305		4,305		4,204
Equity funds
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	3,639		3,639		4,863
Gross Unrealized Gains		32	81
Debt Securities, Trading, Unrealized Loss		(446)	(274)
Investments in trading securities	3,446		3,446		4,449
Equity Securities
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	490		490		1,278
Gross Unrealized Gains		0	0
Debt Securities, Trading, Unrealized Loss		(65)	(13)
Investments in trading securities	477		477		1,213
us-gaap_EquitySecuritiesMember [Member]
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	160		160		159
Gross Unrealized Gains		0	0
Debt Securities, Trading, Unrealized Loss		(22)	(14)
Investments in trading securities	146		146		137
Private investment fund
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost	265		265		265
Gross Unrealized Gains		0	7
Equity Securities, FV-NI, Unrealized Loss		(30)	(13)
Estimated Fair Value	$ 259		$ 259		235
Private equity
Equity Securities, FV-NI, Gain (Loss) [Abstract]
Cost					3,475
Gross Unrealized Gains		0
Equity Securities, FV-NI, Unrealized Loss		$ (683)
Estimated Fair Value					$ 2,792

INVESTMENTS (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INVESTMENTS (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Schedule of Investments [Line Items]
Long-term Investments	$ 7,247		$ 7,247		$ 4,455
Estimated Fair Value	23,153		23,153		18,369
Cost	23,259		23,259		16,121
Net change in unrealized appreciation (depreciation) on private investments	24	$ (299)	24	$ (262)
us-gaap_EquitySecuritiesMember [Member]
Schedule of Investments [Line Items]
Cost	$ 160		$ 160		$ 159

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022
Investments in securities:
Investments in trading securities	$ 22,894,000		$ 22,894,000			$ 15,342,000
Total assets measured at fair value	23,153,000		23,153,000			18,369,000
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	2,792,000	$ 4,326,000	2,792,000	$ 4,369,000
Unrealized gains (losses) on private investments	0	(302,000)	0	(345,000)
Ending balance	0	$ 4,024,000	0	$ 4,024,000
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	7,247,000		7,247,000			4,455,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	7,763,000		7,763,000		$ 11,841,000	12,901,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	$ (4,078,000)		$ (5,138,000)
Unobservable input - revenue retention discount rate - maximum	true		true
Unobservable input - revenue retention discount rate - weighted average	true		true
Unobservable input - revenue retention discount rate - minimum	true		true
Unobservable input - revenue retention volatility - weighted average	true		true
Unobservable input - revenue retention volatility - maximum	true		true
Unobservable input - revenue retention volatility - minimum	true		true
Unobservable input - growth discount rate - weighted average	true		true
Unobservable input - growth discount rate - maximum	true		true
Unobservable input - growth discount rate - minimum	true		true
Unobservable input - growth volatility - weighted average	true		true
Unobservable input - growth volatility - maximum	true		true
Unobservable input - growth volatility - minimum	true		true
Asset Acquisition, Consideration Transferred, Contingent Consideration			$ 7,800,000
Level 1
Investments in securities:
Investments in trading securities	$ 22,894,000		22,894,000			15,342,000
Total assets measured at fair value	22,894,000		22,894,000			15,342,000
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			$ 2,792,000
Asset Acquisition, Consideration Transferred, Contingent Consideration	Level 3		Level 3			Level 3
Other Liabilities, Fair Value Disclosure	$ 7,763,000		$ 7,763,000			$ 12,901,000
Investments Measured at NAV
Investments in securities:
Investments in trading securities	0		0			0
Total assets measured at fair value	$ 259,000		$ 259,000			$ 235,000
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 fund
Investments in securities:
Private	$ 259,000		$ 259,000			$ 235,000
Private investment fund \| Level 1
Investments in securities:
Private	0		0			0
Private investment fund \| Level 2
Investments in securities:
Private	0		0			0
Private investment fund \| Level 3
Investments in securities:
Private	0		0			0
Private investment fund \| Investments Measured at NAV
Investments in securities:
Private	$ 259,000		$ 259,000			235,000
Private equity
Investments in securities:
Private						2,792,000
Private equity \| Level 1
Investments in securities:
Private						0
Private equity \| Level 2
Investments in securities:
Private						0
Private equity \| Level 3
Investments in securities:
Private						2,792,000
Private equity \| Investments Measured at NAV
Investments in securities:
Private						$ 0

GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Mar. 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	$ 16,401,000	$ 39,929,000	$ 35,732,000
Goodwill, Period Increase (Decrease)	0	4,197,000
Goodwill, Purchase Accounting Adjustments	$ (428,000)	$ (428,000)

STOCKHOLDERS' EQUITY Share Repurchase Program (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Stock Repurchase Program, Remaining Authorized Repurchase Amount			$ 1,900,000
Stock Repurchased During Period, Shares	57,984	70,186
Treasury Stock Acquired, Average Cost Per Share	$ 14.29	$ 14.65
Stock Repurchased During Period, Value	$ 800,000	$ 1,000,000
Treasury Stock, Value			$ 85,965,000	$ 85,128,000
Treasury Stock, Value, Acquired, Cost Method	$ 1,394,000	$ 1,594,000

STOCKHOLDERS' EQUITY (Details) - USD ($)	3 Months Ended	6 Months Ended
STOCKHOLDERS' EQUITY (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock Repurchase Program, Remaining Authorized Repurchase Amount			$ 1,900,000
Stock Repurchased During Period, Shares	57,984	70,186
Treasury Stock Acquired, Average Cost Per Share	$ 14.29	$ 14.65
Stock Repurchased During Period, Value	$ 800,000	$ 1,000,000

VARIABLE INTEREST ENTITIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Variable Interest Entity [Line Items]
Estimated Fair Value	$ 23,153		$ 23,153		$ 18,369
Fee revenues from Westwood VIEs	7,900	$ 5,100	15,900	$ 10,800
Investment Owned, at Fair Value					$ 2,417
Common Trust Funds
Variable Interest Entity [Line Items]
Estimated Fair Value	$ 0		$ 0

VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Variable Interest Entities
Assets Under Management	$ 14,989,000
Estimated Fair Value	23,153	$ 18,369
Westwood Funds®
Variable Interest Entities
Assets Under Management	4,169,000
Estimated Fair Value	0
Amount at Risk	0
Common Trust Funds
Variable Interest Entities
Assets Under Management	634,000
Estimated Fair Value	0
Amount at Risk	0
Westwood Hospitality Fund I LLC [Member]
Variable Interest Entities
Assets Under Management	13,000
Estimated Fair Value	11,400
Amount at Risk	11,400
Private equity
Variable Interest Entities
Assets Under Management	0
Estimated Fair Value	300
Amount at Risk	300
Wealth Management
Variable Interest Entities
Assets Under Management	3,204,000
Institutional
Variable Interest Entities
Assets Under Management	$ 6,969,000

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

3 Months Ended

6 Months Ended

9 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Sep. 30, 2023

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

Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands).


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Advisory Fees:
Institutional	$	9,443	$	6,632	$	19,046	$	13,681
Mutual Funds	7,093		4,140		14,279		8,689
Wealth Management	263		208		507		400
Performance-based	—		—		555		—
Trust Fees	5,024		5,365		10,055		11,080

Other, net	122		(742)		230		(1,031)
Total revenues	$	21,945	$	15,603	$	44,672	$	32,819


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


Three Months Ended June 30, 2022	Advisory		Trust		Other		Total


Canada	$	303	$	—	$	—	$	303

United States	10,677		5,365		(742)		15,300
Total	$	10,980	$	5,365	$	(742)	$	15,603

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

$ 21,945

$ 15,603

$ 44,672

$ 32,819

Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

276

303

568

594

United States [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

21,669

15,300

44,104

32,225

Investment Advisory Services [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

16,799

10,980

34,387

22,770

Investment Advisory Services [Member] | Canada

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

276

303

568

594

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

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

16,523

10,677

33,819

22,176

Investment Advisory Services [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

9,443

6,632

13,681

$ 19,046

Mutual Fund Advisory [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

7,093

4,140

14,279

8,689

Private Wealth Advisory [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

263

208

507

400

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

5,024

5,365

10,055

11,080

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

5,024

5,365

10,055

11,080

Trust Fees [Member] | Trust

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

5,024

5,365

10,055

11,080

Other Revenue Misc Services [Member]

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

122

(742)

230

(1,031)

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

122

(742)

230

(1,031)

Other Revenue Misc Services [Member] | Advisory

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer, Excluding Assessed Tax

$ 122

$ (742)

$ 230

$ (1,031)

LONG-TERM INCENTIVE COMPENSATION (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amount of shares purchased in the open market			$ 0	$ 1,404,000
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	106,000	89,000	108,000	87,000
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, 2023	Jun. 30, 2022
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, 2023 $ / 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, 2023 $ / 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, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 3,972	$ 4,976

SEGMENT REPORTING (Details Textual)	6 Months Ended
SEGMENT REPORTING (Details Textual)	Jun. 30, 2023 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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Net fee revenues from external sources	$ 21,823	$ 16,345	$ 44,442	$ 33,850
Net intersegment revenues	0	0	0	0
Other, net	122	(742)	230	(1,031)
Total revenues	21,945	15,603	44,672	32,819
Segment Assets	(142,105)	(129,925)	(142,105)	(129,925)		$ (146,427)
Goodwill	39,501	16,401	39,501	16,401	$ 39,929	$ 35,732
Operating Segments \| Advisory
Segment Reporting Information [Line Items]
Net fee revenues from external sources	16,799	10,980	34,387	22,770
Net intersegment revenues	1,587	536	3,249	1,113
Other, net	122	(742)	230	(1,031)
Total revenues	18,508	10,774	37,866	22,852
Segment Assets	(268,184)	(223,773)	(268,184)	(223,773)
Goodwill	23,100	0	23,100	0
Operating Segments \| Trust
Segment Reporting Information [Line Items]
Net fee revenues from external sources	5,024	5,365	10,055	11,080
Net intersegment revenues	77	88	154	178
Other, net	0	0	0	0
Total revenues	5,101	5,453	10,209	11,258
Segment Assets	(44,412)	(52,105)	(44,412)	(52,105)
Goodwill	16,401	16,401	16,401	16,401
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	(14,831)	(28,586)	(14,831)	(28,586)
Goodwill	0	0	0	0
Eliminations
Segment Reporting Information [Line Items]
Net fee revenues from external sources	0	0	0	0
Net intersegment revenues	(1,664)	(624)	(3,403)	(1,291)
Other, net	0	0	0	0
Total revenues	(1,664)	(624)	(3,403)	(1,291)
Segment Assets	185,322	174,539	185,322	174,539
Goodwill	$ 0	$ 0	$ 0	$ 0

SUBSEQUENT EVENTS (Details Textual) - USD ($)		3 Months Ended	6 Months Ended
SUBSEQUENT EVENTS (Details Textual) - USD ($)	Aug. 02, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Dividends declared per share (dollars per share)			$ 0.15	$ 0.15
Stock Repurchased During Period, Shares		57,984		70,186
Stock Repurchased During Period, Value		$ 800,000		$ 1,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount			$ 1,900,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared per share (dollars per share)	$ 0.15
Dividends payable, date to be paid	Oct. 02, 2023
Dividends payable, date of record	Sep. 01, 2023

Business Combinations and Asset Acquisitions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
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					1,000,000
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	$ 16,725,000	44,672,000	$ 35,121,000
Business Acquisition, Pro Forma Net Income (Loss)	2,899,000	$ (344,000)	$ 3,613,000	$ (608,000)
Business Combination, Step Acquisition, Equity Interest in Acquiree, Description			2.4 million
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	1.1		$ 2,300,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	$ 100,000		100,000
Business Combination, Acquisition of Less than 100 Percent of Broadmark, Noncontontrolling Interest			994,000
Business combination, consideration transferred for Broadmark			1,200,000
Payments to acquire Broadmark, gross			$ 1,600,000
Noncontrolling Interest, Ownership Percentage by Parent	80.00%		80.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net					382,000
Goodwill, Acquired During Period			$ 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

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