Patria Investments Ltd-A (NASDAQ:PAX) Misses Q2 2025 Revenue and EPS Estimates, Shares Drop in Premarket

Patria Investments Ltd-A (NASDAQ:PAX Misses Q2 2025 Revenue and EPS Estimates, Shares Drop in Premarket

Patria Investments Ltd-A (NASDAQ:PAX) reported its second-quarter 2025 earnings, falling short of analyst expectations on both revenue and earnings per share (EPS). The alternative asset manager posted revenue of $81.1 million, below the consensus estimate of $92.2 million, while EPS came in at $0.24, missing the projected $0.28. The market reaction was swift, with shares declining nearly 5.8% in premarket trading.

Key Financial Takeaways

• Revenue Miss: Reported revenue of $81.1 million vs. $92.2 million expected, a shortfall of approximately 12%.
• EPS Below Estimates: EPS of $0.24 fell short of the $0.28 forecast, a 14% miss.
• Fee-Related Earnings (FRE) Growth: FRE rose 17% year-over-year to $46.1 million, with an improved margin of 56.8%.
• Assets Under Management (AUM): Fee-earning AUM (FEAUM) increased 20% year-over-year and 6% sequentially.
• Dividend & Buybacks: A quarterly dividend of $0.15 per share was declared, and a new share repurchase program of up to 3 million shares was authorized.

Market Reaction & Performance Context

The immediate premarket drop suggests investor disappointment over the earnings miss, particularly given the broader economic concerns cited by CEO Alex Saigh regarding a potential trade war. Despite the negative reaction to the quarterly figures, Patria’s stock has been relatively stable over the past month, with a slight decline of 2.4%, while showing marginal gains over the past two weeks (0.5%) and last week (0.03%).

Outlook vs. Analyst Expectations

Management expressed confidence in its full-year fundraising target, now expecting it to exceed initial projections by 5%-10%, up from the original $6 billion goal. However, the company did not provide specific revenue or EPS guidance for the coming quarters. Analysts currently estimate Q3 2025 revenue at $95.4 million and full-year 2025 revenue at $394.9 million, with EPS projections at $0.33 for Q3 and $1.36 for the full year.

Strategic Highlights from the Press Release

• Fundraising Momentum: The firm raised $1.3 billion in Q2, bringing H1 2025 fundraising to ~$4.5 billion.
• Organic Growth: Net inflows exceeded $600 million, with an annualized organic growth rate above 8%.
• Diversification Benefits: CEO Saigh highlighted the resilience of Patria’s diversified platform amid macroeconomic uncertainties.

For a deeper dive into Patria’s earnings estimates and historical performance, visit Patria Investments Ltd-A Earnings & Estimates.

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