Investors should note this accounting methodology change when comparing future non-GAAP results to historical periods. The change makes non-GAAP profitability appear stronger but does not affect GAAP results or cash taxes paid.
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Executive Summary
Virtus Investment Partners is revising its non-GAAP financial measures to include the tax benefits from amortization of goodwill and intangible assets, starting with Q1 2026 results. This change will make its non-GAAP earnings per share and effective tax rate appear more favorable compared to prior presentations, but does not impact GAAP results or revenue metrics.
Key Facts
- VRTS is revising its non-GAAP financial measures to include tax benefits from amortization of goodwill and intangible assets beginning with Q1 2026 results
- The change affects non-GAAP effective tax rate, EPS (as adjusted), tax expense (as adjusted), and net income (as adjusted)
- For full year 2025, this revision increases non-GAAP EPS from $25.15 to $27.79 and reduces non-GAAP effective tax rate from 26.0% to 18.5%
- The revision does not impact GAAP financials or other non-GAAP measures like revenues, operating expenses, or operating income
- VRTS believes this better reflects its underlying performance due to meaningful tax benefits from past acquisitions
Financial Impact
For full year 2025, non-GAAP EPS increases by $2.64 (from $25.15 to $27.79) and effective tax rate decreases by 7.5 percentage points (from 26.0% to 18.5%) under the revised methodology
Risk Factors
- Potential confusion when comparing non-GAAP metrics across periods due to methodology change
- Investors may question whether the revised non-GAAP measures provide meaningful insight since they include non-cash tax benefits
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000883237-26-000017 |
| Document: vrts-20260417.htm | 0000883237-26-000017 |
| Document: 0000883237-26-000017-index-headers.html | 0000883237-26-000017 |
| Document: 0000883237-26-000017-index.html | 0000883237-26-000017 |
| Document: 0000883237-26-000017.txt | 0000883237-26-000017 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 19d ago | SC 13G | $131.59 | awaiting T+60 | — | $121.06 (−8.00%) |
Jul 30, 2026 12w ago | 8-K | $163.50 $119.31 | ▲ +27.03% | ▲ +29.49% | $121.06 (+25.96%) |
May 22, 2026 22w ago | S-3ASR | $144.11 $166.65 | ▲ +15.64% | ▲ +12.92% | $121.06 (−15.99%) |
Apr 17, 2026 27w ago | 8-K | $137.45 $160.77 | ▲ +16.97% | ▲ +10.83% | $121.06 (−11.92%) |
Apr 13, 2026 28w ago | DEFA14A | $139.42 $157.34 | ▲ +12.85% | ▲ +4.33% | $121.06 (−13.17%) |
Apr 7, 2026 28w ago | DEFA14A | $133.35 $151.64 | ▲ +13.71% | ▲ +3.26% | $121.06 (−9.22%) |
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