AI Takeaway
Ares Management delivered strong FY2025 results with revenue surging 28.9% to $4.76B and net income rising 19.6% to $527M, driven by robust asset management growth, though elevated SG&A expenses and high leverage remain key watchpoints.
Revenue
$4.76B
++28.86% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 28.9% year-over-year from $3.69B to $4.76B in FY2025, reflecting continued momentum in Ares' alternative asset management business, including management fees, performance income, and investment income streams.
Source: Source: 10-K Income Statement, Financial Data
Net income increased 19.6% to $527M, but this growth trailed revenue growth of 28.9%, primarily because SG&A expenses surged 35.2% to $996M, compressing profitability margins and indicating significant investment in headcount and infrastructure.
Source: Source: 10-K Income Statement, Financial Data
Operating cash flow grew 17.0% to $3.27B in FY2025, demonstrating the firm's strong ability to convert fee-related earnings into cash, which supports dividend payments and reinvestment into the business.
Source: Source: 10-K Cash Flow Statement, Financial Data
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Upgrade to unlockAres carries a debt-to-equity ratio of approximately 4.66x, indicating significant financial leverage relative to its equity base. This elevated leverage could amplify losses during market downturns and may constrain financial flexibility if credit markets tighten.
Source: Source: 10-K Balance Sheet, Key Ratios, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.45 versus the $1.73 analyst consensus — a -16.0% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.76B | $3.69B | +28.86% |
Net Income | $527.36M | $440.96M | +19.59% |
SG&A Expense | $996.08M | $736.5M | +35.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $28.63B | $24.88B | +15.07% |
Total Liabilities | $19.93B | $17.49B | +13.99% |
Stockholders' Equity | $4.28B | $3.54B | +20.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.27B | $2.79B | +17.05% |
Investing Cash Flow | $-1.8B | $-159.4M | -1031.49% |
Financing Cash Flow | $-2.43B | $-1.43B | -69.54% |
Dividends Paid | $21.03M | $16.1M | +30.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 11.1% | — | — |
ROE | 12.3% | — | — |
ROA | 1.8% | — | — |
Debt to Equity | $4.662 | — | — |
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Ares Management's revenue grew 28.9% year-over-year in FY2025, rising from $3.69B to $4.76B. This strong growth reflects continued expansion across its alternative asset management platform, including credit, real estate, and private equity strategies.
The key takeaways from Ares' FY2025 results include strong revenue growth of 28.9% to $4.76B and net income growth of 19.6% to $527M, alongside robust operating cash flow of $3.27B. However, SG&A expenses surged 35.2% to $996M, outpacing revenue growth and compressing profitability margins.
Based on the financial data, key risks for Ares in FY2025 include high financial leverage with a debt-to-equity ratio of 4.66x, rapidly rising SG&A costs that outpaced revenue growth, and significant sensitivity to market conditions given the firm's reliance on performance-related income. A market downturn could materially reduce performance fees and carried interest.
Yes, Ares Management is profitable in FY2025, reporting net income of $527M on revenue of $4.76B, resulting in a net margin of approximately 11.1%. The company also generated strong operating cash flow of $3.27B, underscoring the cash-generative nature of its asset management business.
Ares Management's financial health in FY2025 appears solid, with total assets growing 15.1% to $28.63B and stockholders' equity rising 20.7% to $4.28B. However, the high debt-to-equity ratio of 4.66x and the significant increase in investing outflows to -$1.80B (from -$159M) are areas investors should monitor closely.