Diamond Hill Investment Group reported fourth‑quarter 2025 revenue of $36.553 million, a 3% decline from the $36.6 million reported for the same period in 2024, and full‑year revenue of $147.098 million, down 3% from $151.1 million in 2025. Earnings per share rose to $3.41 for the quarter and $17.91 for the year, up 24.9% and 14% respectively, driven largely by higher operating income and favorable investment gains that offset modest fee compression and client outflows.
Net operating profit margin fell to 25% in 2025 from 29% in 2024, while adjusted net operating margin slipped to 29% from 32%. The decline reflects a combination of fee compression, increased client outflows of $2.7 billion versus $0.3 billion in 2024, and a shift in the asset‑management mix that reduced fee‑earning opportunities. Despite the margin squeeze, the company’s investment performance generated significant gains that lifted earnings.
Diamond Hill announced that First Eagle Investment Management will acquire all outstanding shares for $175 per share in an all‑cash transaction, valuing the company at approximately $473 million and representing a 49% premium to the closing share price on December 10, 2025. The deal is expected to close in the third quarter of 2026, subject to customary conditions, and will allow Diamond Hill to continue operating under its existing brand while benefiting from First Eagle’s broader distribution network and fixed‑income capabilities.
CEO Heather Brilliant said, “This partnership is a testament to the strength and resilience of our business and delivers immediate value to our shareholders.” She added that the collaboration positions the company for continued success over the long term, highlighting the strategic fit between Diamond Hill’s investment expertise and First Eagle’s market reach.
During 2025, Diamond Hill returned $44.1 million to shareholders through $16.9 million in share repurchases and $27.2 million in dividends, including a $10.00 per share dividend. The combined return strategy underscores the company’s commitment to delivering value while navigating a challenging fee environment.
The results illustrate a mixed outlook: revenue contraction and margin compression signal ongoing fee pressure and client outflows, while EPS growth and the First Eagle acquisition provide a counterbalancing narrative of investment strength and strategic consolidation. Investors will likely view the partnership as a positive long‑term catalyst, even as the company addresses short‑term revenue and fee challenges.
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