DIAMOND HILL INVESTMENT GROUP INC

CIK:0000909108|SEC Filings

Consolidated Statements of Income - USD ($)	12 Months Ended
Consolidated Statements of Income - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
REVENUES:
Total revenue	$ 147,097,859	$ 151,095,131	$ 136,716,371
OPERATING EXPENSES:
Compensation and related costs, excluding deferred compensation expense	72,467,328	74,588,900	70,730,640
Deferred compensation expense	6,095,295	4,775,627	5,599,880
General and administrative	19,669,870	16,784,783	14,935,033
Sales and marketing	8,201,866	7,510,182	6,684,410
Fund administration	3,927,403	3,543,848	3,262,421
Total operating expenses	110,361,762	107,203,340	101,212,384
NET OPERATING INCOME	36,736,097	43,891,791	35,503,987
Investment income, net	30,545,393	15,119,200	23,071,441
Total non-operating income	30,545,393	15,119,200	23,071,441
Net income before income taxes	67,281,490	59,010,991	58,575,428
Income tax expense	(17,921,491)	(15,833,073)	(15,489,880)
NET INCOME	49,359,999	43,177,918	43,085,548
Net income attributable to redeemable noncontrolling interest	(598,493)	(189)	(859,126)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 48,761,506	$ 43,177,729	$ 42,226,422
Earnings per share attributable to common shareholders
Basic (in dollars per share)	$ 17.91	$ 15.66	$ 14.32
Diluted (in dollars per share)	$ 17.91	$ 15.66	$ 14.32
Weighted average shares outstanding
Basic (in shares)	2,723,272	2,757,860	2,948,625
Diluted (in shares)	2,723,272	2,757,860	2,948,625
Investment advisory
REVENUES:
Total revenue	$ 139,869,012	$ 143,341,943	$ 129,179,500
Fund administration, net
REVENUES:
Total revenue	$ 7,228,847	$ 7,753,188	$ 7,536,871

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 49,359,999	$ 43,177,918	$ 43,085,548
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	1,186,624	1,224,475	1,289,315
Share-based compensation	13,396,426	11,821,490	11,691,890
(Increase) decrease in accounts receivable	593,825	(2,154,437)	(3,393,686)
Change in current income taxes	979,171	70,146	(157,317)
Change in deferred income taxes	2,470,682	1,672,382	2,783,768
Net gain on investments	(23,643,465)	(8,080,147)	(16,536,677)
Net change in securities held by Consolidated Funds	(52,990,770)	(35,809,404)	(10,930,911)
Increase (decrease) in accrued incentive compensation	(3,500,000)	2,000,000	(2,600,000)
Increase in deferred compensation	3,381,499	3,041,923	5,342,180
Other changes in assets and liabilities	2,147,514	(365,494)	4,095,014
Net cash provided by (used in) operating activities	(6,618,495)	16,598,852	34,669,124
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(2,435,142)	(1,363,440)	(21,705)
Purchase of Company sponsored investments	(11,523,063)	(15,125,376)	(19,469,955)
Proceeds from sale of Company sponsored investments	46,709,698	47,000,808	15,286,036
Net cash provided by (used in) investing activities	32,751,493	30,511,992	(4,205,624)
CASH FLOWS FROM FINANCING ACTIVITIES:
Value of shares withheld related to employee tax withholding obligations	(4,222,780)	(6,275,907)	(5,131,262)
Payment of dividends	(27,185,693)	(16,530,676)	(17,676,364)
Redemptions of redeemable noncontrolling interest holders	(55,009)	0	(1,772,268)
Subscriptions received from redeemable noncontrolling interest holders	22,745,069	245,819	12,123,125
Repurchases of common shares	(16,884,763)	(30,244,638)	(34,619,944)
Proceeds received under employee stock purchase plan	268,809	327,283	409,790
Net cash used in financing activities	(25,334,367)	(52,478,119)	(46,666,923)
CASH AND CASH EQUIVALENTS
Net change during the year	798,631	(5,367,275)	(16,203,423)
At beginning of year	41,624,604	46,991,879	63,195,302
At end of year	42,423,235	41,624,604	46,991,879
Supplemental information related to cash activities:
Income taxes paid	14,471,638	14,090,545	12,863,429
Supplemental information related to non-cash activities
Operating lease right-of-use asset addition, net of lease incentive	207,227	3,173,981	0
Lease incentives included in property and equipment	$ 174,675	$ 2,837,175	$ 0

Consolidated Balance Sheets - USD ($)	Dec. 31, 2025	Dec. 31, 2024
ASSETS
Cash and cash equivalents	$ 42,423,235	$ 41,624,604
Investments	177,398,221	159,752,981
Accounts receivable	19,264,233	20,205,678
Prepaid expenses	3,476,759	3,694,019
Income taxes receivable	571,547	1,550,718
Property and equipment, net of depreciation	9,822,467	8,380,594
Deferred taxes	7,447,374	9,918,056
Total assets	260,403,836	245,126,650
Liabilities
Accounts payable and accrued expenses	7,064,219	5,599,931
Accrued incentive compensation	28,000,000	31,500,000
Lease liability	6,398,220	6,335,490
Deferred compensation	42,510,592	39,129,093
Total liabilities	83,973,031	82,564,514
Redeemable noncontrolling interest	5,493	246,008
Permanent Shareholders’ Equity
Common shares, no par value: 7,000,000 shares authorized; 2,705.580 issued and outstanding at December 31, 2025 (inclusive of 274,349 unvested shares); 2,670,469 issued and outstanding at December 31, 2024 (inclusive of 173,120 unvested shares)	51,332,432	28,478,515
Preferred shares, undesignated: 1,000,000 shares authorized and unissued	0	0
Deferred equity compensation	(29,245,119)	(15,833,657)
Retained earnings	154,337,999	149,671,270
Total permanent shareholders’ equity	176,425,312	162,316,128
Total liabilities and shareholders’ equity	$ 260,403,836	$ 245,126,650