Whole advisor headcount at Avantax stands at 3,111 on the finish of the third quarter, down barely from the second quarter and about 7% from the year-ago interval, the agency mentioned in its most up-to-date quarterly report. The lower was offset by onboarding new advisors, including a document $564 million in recruited property throughout the quarter.

In a public submitting, Avantax attributed the decline in headcount to attrition of decrease revenue-producing advisors. It mentioned it terminated some lower-producing advisors within the fourth quarter 2022 who did not adjust to the agency’s coverage on document preserving and supervision.

Associated: Some Avantax Advisors Cautious in Wake of $1.2B Acquisition Announcement

The publicly traded wealth administration agency, previously generally known as Blucora, didn’t maintain a convention name with analysts this week, because the agency prepares to promote to Cetera Monetary, anticipated to shut this month. Avantax might be de-listed from the Nasdaq alternate and develop into a standalone enterprise unit throughout the Cetera ecosystem, with Cetera retaining the corporate’s core expertise, authorized entities, product choices and clearing and custody relationships.

The Cetera deal values Avantax at $1.2 billion, and shareholders might be cashed out at $26 a share, pending their approval. Avantax shares closed buying and selling at $25.90 on Monday.

Associated: Avantax to be Acquired by Cetera for $1.2B

Avantax reported $673 million in web new property for the third quarter, bringing its complete shopper property to $82.3 billion, down from almost $84 billion within the second quarter, and up from $72.6 billion within the year-ago quarter. The agency mentioned advisory property decreased $700 million throughout the quarter on account of unfavorable market adjustments.

Jeff Schmitt, a analysis analyst at William Blair, pointed to the agency’s robust natural progress within the quarter of three%, in comparison with 1.5% in 2022 and -2.5% in 2021, “pushed by productiveness good points, scaling the captive RIA, and a greater recruiting technique.”

“All in all, it was a robust quarter highlighted by enhancing top-line momentum,” he wrote in an analyst observe. “As we glance forward, we count on additional enhancements in natural progress as the corporate continues to scale the captive RIA and improve recruiting.”

The agency reported complete income of $192.3 million for the third quarter, up 16.5% year-over-year, beating analysts’ expectations by $740,000, in accordance with SeekingAlpha.com. Non-GAAP earnings per share was $0.36, up 125% from a 12 months in the past, beating analysts’ expectations by 7 cents.