KKR & Co. Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did KKR Beat Earnings? Q2 2025 Results
KKR & Co. delivered a strong second quarter for 2025, with adjusted earnings per share of $1.18 beating the $1.1386 consensus estimate by 3.64%, while revenue of $5.09 billion came in well ahead of expectations and grew 23.9% year-over-year. The firm's outperformance was anchored by broad-based momentum across its platform, with Fee Related Earnings climbing 17% year-over-year to $886.75 million and Assets Under Management reaching $685.81 billion, up 14% from a year ago, as KKR raised $27.99 billion in organic new capital during the quarter alone. The Insurance segment, operating through Global Atlantic, contributed meaningfully with $277.93 million in operating earnings, while the firm's perpetual capital base — now at $289 billion, or 42% of total AUM — continues to underscore the durability of its earnings profile. KKR's co-CEOs stated they "remain highly constructive" entering the second half of 2025, and the firm's long-term roadmap targets Strategic Holdings Operating Earnings scaling from $350 million by 2026 to $1.1 billion by 2030, a trajectory that reflects growing confidence in the alternatives platform's compounding power.
- Management fees grew 16% to $3.7 billion LTM driven by organic growth in Fee Paying AUM
- FRE margin expanded from 65% to 69% LTM reflecting operating leverage
- Insurance net investment income growth driven by portfolio expansion and higher average yields
- Organic new capital raised of $28 billion in the quarter and $109 billion LTM
- Perpetual capital grew 16% YoY to $289 billion, representing 42% of AUM
- 79% of total segment earnings derived from more durable and recurring sources
“We are active globally across investing, monetizing and fundraising. This momentum is flowing through our financial results, with greater than 25% growth in Fee Related Earnings, Total Operating Earnings and Adjusted Net Income on a trailing 12-month basis. We remain highly constructive as we enter the second half of the year.”
KKR CEO, on the earnings call
Forward Guidance & Outlook
KKR's co-CEOs stated they 'remain highly constructive' entering the second half of 2025. The firm expects Strategic Holdings Operating Earnings to reach $350+ million by 2026, $700+ million by 2028, and $1.1+ billion by 2030. There is $56 billion of AUM not yet paying fees with a weighted average management fee rate of approximately 90 basis points that becomes payable when capital is invested or enters its investment period. Uncalled commitments of $115 billion remain diversified across investment strategies, providing substantial dry powder for future deployment. Post quarter-end, Asset-Based Finance Partners II held its final close at $6.5 billion, over three times larger than the predecessor fund.
KKR YoY Financials
KKR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.