KKR (KKR) Q4 2025 earnings summary

Executive summary

• Reported record Q4 2025 results with $1.08 fee-related EPS, $1.42 total operating EPS, and $1.12 adjusted net income per share; excluding a carried interest repayment obligation, ANI per share was $1.30.

• Achieved record annual figures in Fee Related Earnings, Adjusted Net Income per share, capital raised ($129 billion), and capital invested ($95 billion) for 2025, with strong growth across all key metrics year-over-year.

• Announced acquisition of Arctos, a leading investor in sports franchise stakes and GP solutions, valued at $1.4 billion, with potential for $550 million additional equity, establishing a new KKR Solutions vertical.

• Declared a regular dividend of $0.185 per share for the quarter and plans to increase the annualized dividend to $0.78 per share starting Q1 2026, marking the seventh consecutive annual increase.

Financial highlights

• Fee Related Earnings (FRE) were $1.0 billion in Q4 (up 15% YoY) and $3.7 billion for the year (up 14% YoY), with a FRE margin of 68% for Q4 and 69% for the full year.

• GAAP Net Income attributable to common stockholders was $2.3 billion for 2025; Q4 net income was $1.1 billion.

• Adjusted Net Income (ANI) was $1.0 billion in Q4 and $4.4 billion for the year; excluding a carried interest repayment, ANI per share would have been $1.30 in Q4 and $5.05 for the year.

• Assets Under Management (AUM) grew 17% YoY to $744 billion; Fee Paying AUM (FPAUM) rose 18% YoY to $604 billion.

• Capital invested was $32 billion in Q4 and $95 billion for the year, marking the most active investment quarter in the firm's history.

Outlook and guidance

• Confident in exceeding fundraising and FRE per share targets for 2026, with a goal of $7+ per share of adjusted net income, contingent on a constructive monetization environment.

• Strategic Holdings expected to generate $350+ million in operating earnings in 2026, with a long-term target of $1.1 billion by 2030.

• Annual dividend to increase from $0.74 to $0.78 per share, effective Q1 2026.