Ares Management Corp. (NYSE:ARES) Reports Mixed Q2 2025 Earnings: Revenue Beat but EPS Miss

Ares Management Corp. (NYSE:ARES) reported its second-quarter 2025 earnings, delivering mixed results compared to analyst expectations. The alternative investment manager posted revenue of $1.05 billion, surpassing the consensus estimate of $992.2 million, reflecting a 5.7% beat. However, the company’s after-tax realized earnings per share (EPS) came in at $1.03, missing the estimated $1.11 by approximately 7.4%.

Key Financial Highlights

• Revenue: $1.05 billion (vs. $992.2 million expected) – 5.7% above estimates
• EPS (after-tax realized income): $1.03 (vs. $1.11 expected) – 7.4% below estimates
• Assets Under Management (AUM): Grew to over $572 billion, up 24% year-over-year
• Fee-Related Earnings: $409.1 million, demonstrating strong recurring revenue streams
• Dividends Declared:
  • Class A & Non-Voting Common Stock: $1.12 per share (payable September 30, 2025)
  • Series B Preferred Stock: $0.84375 per share (payable October 1, 2025)

Market Reaction

In pre-market trading, ARES shares declined by 1.37%, likely reflecting investor disappointment over the EPS miss despite the revenue beat. Over the past month, the stock had gained 4.24%, suggesting some optimism ahead of earnings. However, the muted weekly performance (+0.17%) indicates cautious sentiment.

Management Commentary & Outlook

CEO Michael Arougheti highlighted strong fundraising activity and market appreciation, positioning the firm for potential record annual fundraising. CFO Jarrod Phillips noted progress in integrating the GCP International acquisition, with synergies exceeding initial expectations.

While management did not provide explicit forward guidance, analysts currently estimate:

• Q3 2025 Revenue: $1.17 billion
• Full-Year 2025 Revenue: $5.22 billion
• Full-Year 2025 Sales: $4.51 billion

The company’s confidence in its fundraising pipeline and available capital ($150+ billion) suggests optimism about future earnings growth, though the market’s immediate reaction indicates some skepticism regarding profitability.

Conclusion

Ares Management’s Q2 results reflect robust revenue growth but weaker-than-expected profitability. The market’s negative pre-market reaction underscores investor focus on earnings quality, even as the firm continues to expand its AUM and fee-related earnings.

For more detailed earnings estimates and historical performance, visit Ares Management’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.