- Our merger arbitrage team delivered its strongest results in 25 years, with returns of 16.1% before expenses (12.0% net) in 2025
- Year-end AUM: $1.48 billion at December 31, 2025 (+19% over the last 12 months)
- 2025 Net income of $53.0 million (+20% versus 2024)
- Returned $20.6 million to shareholders through share repurchases and dividends in 2025
- Book Value was $44.69 per share at year-end 2025 versus $42.14 per share a year ago
- Added office in Zurich, Switzerland in January 2026
GREENWICH, Conn., Feb. 04, 2026 (GLOBE NEWSWIRE) — Associated Capital Group, Inc. (“AC” or the “Company”), a diversified financial services company, today reported its financial results for the fourth quarter and full year-ended December 31, 2025.
| Financial Highlights – GAAP basis | ||||||||||||||||
| ($’s in 000’s except AUM and per share data) | ||||||||||||||||
| Fourth Quarter | Full Year | |||||||||||||||
| (Unaudited) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| AUM – end of period (in millions) | $ | 1,482 | $ | 1,248 | $ | 1,482 | $ | 1,248 | ||||||||
| AUM – average (in millions) | 1,430 | 1,291 | 1,341 | 1,410 | ||||||||||||
| Revenues | 20,074 | 5,154 | 26,888 | 13,175 | ||||||||||||
| Income before income taxes | 13,595 | 1,179 | 68,765 | 52,735 | ||||||||||||
| Net income | 11,122 | 4,280 | 52,986 | 44,328 | ||||||||||||
| Net income per share – basic and diluted | $ | 0.54 | $ | 0.20 | $ | 2.52 | $ | 2.08 | ||||||||
| Shares outstanding (000’s): | ||||||||||||||||
| Class A | 1,779 | 2,234 | 1,779 | 2,234 | ||||||||||||
| Class B | 18,921 | 18,951 | 18,921 | 18,951 | ||||||||||||
| Total shares outstanding | 20,700 | 21,185 | 20,700 | 21,185 | ||||||||||||
| Book Value per share | $ | 44.69 | $ | 42.14 | $ | 44.69 | $ | 42.14 | ||||||||
Fourth Quarter Financial Data
- Assets under management ended the quarter at $1.48 billion versus $1.41 billion at September 30, 2025.
- At December 31, 2025, book value per share was $44.69 per share compared to $44.23 per share at September 30, 2025.
Fourth Quarter Results
Fourth quarter revenues were $20.1 million compared to $5.2 million for the fourth quarter of 2024. The increase in revenues is driven by higher incentive fees in 2025 due to performance. Incentive fees were $17.7 million in the 2025 quarter versus $3.0 million in 2024. As in the past, incentive fees are accrued when earned, typically on an annual basis on December 31. Revenues generated by the GAMCO International SICAV – GAMCO Merger Arbitrage fund (the “SICAV”) were $9.4 million versus $1.0 million in the year ago quarter. All other revenues were $10.7 million compared to $4.2 million in the year ago quarter.
Total operating expenses, excluding management fee expense, were $15.1 million in the fourth quarter 2025 compared to $8.2 million in the comparable 2024 period. The primary driver of the increase in operating expenses was higher variable compensation in the 2025 quarter driven by higher incentive fee revenue.
Net investment and other income was $10.1 million for the fourth quarter versus $4.4 million in the year ago quarter. The primary driver of this quarter’s results was the performance of our merger arbitrage investments.
The fourth quarter of 2025 includes a management fee expense of $1.5 million versus $0.1 million in the fourth quarter of 2024. Our provision for income taxes was an expense of $2.4 million in 2025 with an effective tax rate of 17.9%. This compares to an income tax benefit of $3.1 million for the prior year quarter driven by deferred tax benefits from the sale of GAMCO shares in 2024.
Full Year Results
Revenues for the year ended 2025 were $26.9 million compared to $13.2 million in 2024. Revenues generated by the SICAV were $12.5 million versus $5.0 million in the prior year period. All other revenues were $14.4 million compared to $8.2 million in the year ago period.
For 2025, the operating loss before management fee expense was $9.0 million compared to $12.9 million in 2024.
The full year 2025 net investment and other income was $85.2 million versus $71.5 million in 2024. The primary driver of 2025’s results was the performance of our merger arbitrage investments.
In 2025, management fee expense was $7.4 million compared to $5.9 million in 2024.
Our income tax rate for the year was 22.4% compared to 15.8% for the prior year. The higher rate in 2025 is primarily driven by deferred tax benefits from the 2024 sale of GAMCO shares that reduced the prior period’s effective tax rate.
Charitable Contributions
Since our inception as a public company in 2015, the shareholders of AC have donated approximately $42 million to over 200 501(c)(3) organizations that address a broad range of local, national and international concerns through the shareholder designated charitable contribution program. Our charitable giving program continues today with the Associated Capital Foundation, a private foundation, established in October 2025. In November 2025, the Company contributed approximately $4 million to the private foundation.
Assets Under Management (AUM)
Assets under management ended the year at $1.48 billion, $234 million higher than year-end 2024, reflecting market performance of $154 million, net inflows of $51 million and the positive impact of currency fluctuations in non-US dollar denominated classes of investment funds of $29 million.
| December 31, | ||||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2020 | 2015 | ||||||||||||||
| Merger Arbitrage | $ | 1,156 | $ | 1,003 | $ | 1,126 | $ | 869 | ||||||||||
| Long/Short Value(a) | 289 | 209 | 180 | 145 | ||||||||||||||
| Other | 37 | 36 | 45 | 66 | ||||||||||||||
| Total AUM | $ | 1,482 | $ | 1,248 | $ | 1,351 | $ | 1,080 | ||||||||||
(a) Assets under management represent the assets invested in this strategy that are attributable to AC.
Alternative Investment Management
Our alternative investment offerings center around our merger arbitrage strategy, which seeks absolute return independent of the broad equity and fixed income markets through a proven strategy of investing in global announced corporate mergers and acquisitions. We also manage funds using strategies focused on fundamental, active, event-driven and special situations investing.
Merger Arbitrage
Since its inception in 1985, our longest continuously offered fund in the merger arbitrage strategy has consistently outperformed the return on 90-day T-Bills. The summary historical performance is as follows:
| Merger Arbitrage(1) | ||||||
| Percent Return (%) | ||||||
| Year | Gross Return | Net Return | 90 Day T-Bills |
|||
| 2025 | 16.10 | 11.97 | 4.40 | |||
| 2024 | 5.83 | 3.82 | 5.45 | |||
| 2023 | 5.49 | 3.56 | 5.26 | |||
| 2022 | 4.47 | 2.75 | 1.50 | |||
| 2021 | 10.81 | 7.78 | 0.05 | |||
| 2020 | 9.45 | 6.70 | 0.58 | |||
| 2019 | 8.55 | 5.98 | 2.25 | |||
| 2018 | 4.35 | 2.65 | 1.86 | |||
| 2017 | 4.69 | 2.92 | 0.84 | |||
| 2016 | 9.13 | 6.44 | 0.27 | |||
| 2015 | 5.33 | 3.43 | 0.03 | |||
| 2014 | 3.89 | 2.29 | 0.03 | |||
| 2013 | 5.33 | 3.43 | 0.05 | |||
| 2012 | 4.32 | 2.63 | 0.07 | |||
| 2011 | 4.89 | 3.07 | 0.08 | |||
| 2010 | ||||||