Ares Management Corporation (NYSE:ARES) reported its fourth-quarter and full-year 2025 financial results before the market opened on February 5, 2026. The alternative investment manager posted strong fundamental growth in assets and fees but delivered earnings and revenue figures that fell short of Wall Street's expectations, leading to a negative pre-market reaction.
Earnings and Revenue Versus Estimates
The company's key profitability metric, after-tax realized income per share, came in at $1.45 for the quarter. This represents a significant miss compared to the analyst consensus estimate of $1.73 per share.
On the top line, the company reported revenue of approximately $1.17 billion for Q4 2025. This also fell below the analyst forecast of $1.34 billion for the quarter.
The performance against estimates can be summarized as follows:
- Earnings Per Share (After-Tax Realized Income): Reported $1.45 vs. Estimate of $1.73
- Revenue: Reported ~$1.17B vs. Estimate of ~$1.34B
Market Reaction and Price Action
The market's immediate response to the earnings miss was negative. In pre-market trading following the release, ARES stock was down approximately 1.6%. This decline extends a recent downward trend for the shares, which have fallen over 22% in the past month. The pre-market sell-off suggests investor disappointment with the quarterly bottom-line and top-line results, overshadowing other positive operational milestones announced by the company.
Key Highlights from the Earnings Release
Despite the earnings miss, Ares Management highlighted several record achievements and strong growth for the full year 2025. The press release focused on the expansion of the firm's platform and robust investor demand.
- Assets Under Management (AUM): The firm surpassed $600 billion in total AUM, reaching $623 billion as of December 31, 2025. This marks a 29% increase year-over-year.
- Fundraising and Investing: Ares established new annual records, raising and investing over $100 billion during the year.
- Fee-Related Earnings (FRE): This stable earnings stream, derived from management fees, was $527.7 million for the quarter. For the full year, management fees grew by 25%.
- Dividend Increase: Signaling confidence in its earnings capacity, the Board declared a 20% increase in the quarterly common stock dividend to $1.35 per share.
- Management Commentary: CEO Michael Arougheti pointed to "robust investor demand across all three of our channels" and stated the firm expects "another strong year of fundraising which could match or exceed our record levels from 2025." CFO Jarrod Phillips emphasized the platform's growth and its "$150 billion of available capital" to generate shareholder earnings.
Forward Outlook and Analyst Expectations
While the company's commentary was optimistic about continued fundraising strength, it did not provide specific quantitative financial guidance for 2026. This leaves analyst estimates as the primary benchmark for future performance. Currently, analysts are forecasting the following for Ares Management:
- Q1 2026 Revenue Estimate: ~$1.20 billion
- Q1 2026 EPS Estimate: $1.43
- Full-Year 2026 Revenue Estimate: ~$5.66 billion
- Full-Year 2026 EPS Estimate: $6.66
Investors will likely monitor upcoming management commentary, particularly on the scheduled earnings call, for any color on the timing of converting record fundraising into fee-earning assets and realized performance income to bridge the gap between operational growth and quarterly earnings results.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the Ares Management earnings and estimates data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
