Ares Management Corp (NYSE:ARES) Q3 2025 Earnings Beat Revenue Estimates

Ares Management Corporation (NYSE:ARES) has released its financial results for the third quarter of 2025, delivering a performance that notably exceeded analyst expectations on the top line while meeting them on a key profitability metric. The market's immediate reaction, however, appears muted, suggesting investors are weighing the strong headline numbers against broader market conditions or future guidance.

Earnings and Revenue Versus Estimates

The company's third-quarter results showcased significant strength, particularly in its revenue generation. Ares reported a clear beat on sales, while its earnings per share came in essentially in line with what the market had anticipated.

• Reported Revenue: $1.16 billion

• Estimated Revenue: $1.07 billion

• Revenue Beat: ~$93.7 million

• Reported After-Tax Realized Income Per Share: $1.19

• Estimated EPS: $1.18

• EPS Performance: Met expectations

This revenue outperformance underscores the firm's ability to generate substantial fee income and other revenues, which was a highlight in the quarter's press release.

Market Reaction

Following the earnings announcement, Ares stock is indicating a slightly negative open in pre-market trading, down approximately 0.95%. This initial price action contrasts with the positive earnings surprise and may reflect profit-taking after a recent run-up, general market sentiment, or a "sell the news" event. Over the past two weeks, the stock had gained nearly 5%, so some consolidation following the report is not unusual. The market appears to be digesting the figures without a strong directional catalyst from the earnings themselves.

Key Takeaways from the Quarterly Report

The earnings press release painted a picture of a firm experiencing robust growth and operational momentum. Management emphasized several record-breaking or near-record achievements that provide context for the financial figures.

Ares reported a GAAP net income of $288.9 million. More significantly for alternative asset managers, the after-tax realized income—a key metric that reflects cash earnings—reached $425.8 million. Fee-related earnings were particularly strong at $471.2 million for the quarter. CEO Michael Arougheti described the quarter as "outstanding," highlighting strong fundraising, improved credit quality, and increased investment activity. The company now expects to "meaningfully exceed" its previous annual fundraising record of $93 billion.

CFO Jarrod Phillips noted that this activity supported a 28% year-over-year increase in assets under management (AUM), fee-paying AUM (FPAUM), and management fees. He also pointed to a "healthy investment pipeline" and the deployment of $150 billion in available capital as drivers for future earnings growth. In a move important for income-focused investors, the company declared a quarterly dividend of $1.12 per share of its Class A common stock.

Looking Ahead

While the press release did not provide a specific quantitative financial outlook for the next quarter or full year, the optimistic commentary from leadership suggests confidence in continued growth. This forward-looking sentiment can be compared to analyst estimates, which project sales of $1.35 billion and revenue of $1.77 billion for the fourth quarter of 2025. For the full 2025 year, analysts are estimating sales of $4.69 billion and revenue of $5.10 billion. The company's own record fundraising and large capital base position it well to potentially meet or exceed these expectations.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the Ares Management earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.