Ares Management Corp - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did ARES Beat Earnings? Q4 2025 Results
Ares Management delivered a split verdict in Q4 2025, posting revenue of $1.50 billion, a 13.28% beat against the $1.33 billion consensus and 19.5% above the year-ago period, while adjusted EPS of $1.45 fell 14.00% short of the $1.69 analyst estimate, sending shares down roughly 5% in pre-market trading. The earnings shortfall was shaped in part by the March 2025 close of the GCP International acquisition, which drove a $255.70 million charge tied to contingent consideration and added acquisition-related costs that compressed GAAP net income to $54.20 million for the quarter. On a non-GAAP basis, the picture was considerably stronger, with Fee Related Earnings rising 33% to $527.70 million and FRE margin expanding to 42.5%, while total AUM crossed $622.50 billion, up 29% year-over-year, on the back of $35.90 billion in quarterly fundraising. CEO Michael Arougheti projected that 2026 fundraising could match or exceed the full-year record of $113.20 billion, and management announced a 20% increase in the quarterly dividend to $1.35 per share, reflecting confidence in the firm's long-term earnings trajectory.
- 29% year-over-year increase in AUM to $622.5 billion
- 32% increase in FPAUM to $384.9 billion
- 25% increase in management fees for the full year
- Gross new capital commitments of $35.9 billion in Q4 and $113.2 billion for the full year
- Capital deployment of $45.8 billion in Q4 and $145.8 billion for the full year
- GCP International acquisition meaningfully broadened real estate and digital infrastructure capabilities
- Perpetual capital grew 50% to $200 billion, representing 85% of AUM
- FRE margin expanded to 42.5% from 40.9%
- Credit Group FRE increased 14% driven by management fee growth from U.S. and European direct lending
- Real Assets Group FRE increased 162% driven by GCP International acquisition fees
“Our strong fourth quarter concluded an exceptional year full of milestones and strategic accomplishments for Ares. We crossed $600 billion in AUM, established new annual records for fundraising and investing of over $100 billion and closed our GCP International acquisition which meaningfully broadened our real estate and digital infrastructure capabilities.”
Ares Management CEO, on the earnings call
Forward Guidance & Outlook
CEO Michael Arougheti stated that robust investor demand across all three channels is continuing and the company expects another strong year of fundraising that could match or exceed the record levels from 2025. CFO Jarrod Phillips highlighted that with enhanced global fundraising and investment capabilities and more than $150 billion of available capital, the company is well positioned to generate strong earnings for shareholders. The company has $78.8 billion of AUM not yet paying fees available for future deployment that could generate approximately $730.4 million in potential incremental annual management fees, and $4.3 billion of development assets not yet stabilized that could generate approximately $22.0 million in additional potential annual management fees.
ARES YoY Financials
ARES Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.