Ares Management (ARES) Q2 2025 earnings summary

Executive summary

• Achieved GAAP net income attributable to common stockholders of $111.8 million for Q2 2025, with basic and diluted EPS of $0.46, up from $0.43 in Q2 2024.

• Total AUM reached $572.4 billion as of June 30, 2025, up 28% year-over-year and 18% YTD, driven by strong fundraising, market appreciation, and the GCP Acquisition.

• Integration of GCP International expanded real estate and digital infrastructure, adding $45.3 billion in AUM and 844 professionals, and is tracking ahead of synergy targets.

• Declared a quarterly dividend of $1.12 per share for common stock, a 20% increase year-over-year, and $0.84375 per share for Series B preferred stock, both payable September 30, 2025.

• 91% of management fees in Q2 2025 were derived from perpetual capital or long-dated funds, supporting fee stability.

Financial highlights

• Q2 2025 total revenues were $1.35 billion, up 71% year-over-year; management fees hit a record $900.6 million, up 24–25% year-over-year.

• Fee Related Earnings (FRE) for Q2 2025 were $409.1 million, up 26% year-over-year; FRE margin at 41.2%.

• Realized Income for Q2 2025 was $397.8 million, up 10% year-over-year; after-tax Realized Income per share was $1.03.

• Fee-paying AUM reached $349.6 billion, up 27% year-over-year.

• Net accrued performance income rose 8.5% to $1.1 billion; net realized performance income was $16 million for the quarter.

Outlook and guidance

• Management expects continued AUM and management fee growth, supported by strong fundraising, deployment, and GCP integration.

• Over $150 billion in available capital and $86.8–$104.8 billion of AUM not yet paying fees position the company for future fee growth.

• Perpetual capital AUM grew 43% year-over-year to $166.6 billion, supporting long-term fee stability.

• Projecting over $500 million in net realized performance income from European style funds between 2025 and 2026.

• Expectation to realize greater than originally expected synergies from GCP International acquisition.