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KKR posted Q2 adjusted net income of $1.18 per share, topping estimates and rising y/y from $1.09.
Higher AUM and transaction fees drove a 15.9% revenue jump to $1.28B, meeting estimates.
Fee-related earnings rose 17.4%, while total AUM grew 14% y/y.
KKR & Co. Inc.’s (KKR - Free Report) second-quarter 2025 adjusted net income per share of $1.18 topped the Zacks Consensus Estimate of $1.17. The bottom line increased from $1.09 in the prior-year quarter.
KKR shares rallied nearly 1% in the pre-market trading on better-than-expected results.
Results have primarily reflected impressive growth in assets under management (AUM) and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.
Net income attributable to the company (GAAP basis) was $472.4 million compared with the net income of $667.9 million in the year-ago quarter.
KKR’s Segmental Revenues & Expenses Increase
Total segment revenues amounted to $1.28 billion, jumping 15.9% on a year-over-year basis. The rise was driven by higher management fees, fee-related performance revenues, and transaction and monitoring fees. The top line beat the Zacks Consensus Estimate by 0.4%.
Total segment expenses increased 12.8% to $396.9 million.
As of June 30, 2025, total AUM grew 14% year over year to $686 billion. Further, fee-paying AUM summed $556 billion, which increased 14.1% from the year-ago quarter.
KKR’s Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings grew 13.8% year over year to $1.19 billion.
The company posted fee-related earnings of $886.8 million, up 17.4% year over year.
Our Viewpoint on KKR
The company will continue utilizing lucrative investment opportunities on the back of its efficient fundraising capability in the quarters ahead. Significant growth in fee-related earnings and total operating earnings is aiding the company’s financials. However, due to the company’s continuous expansion of its global footprint, expenses are likely to remain elevated. The current tough operating environment is another concern.
Blackstone’s (BX - Free Report) second-quarter 2025 distributable earnings of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. The figure reflects a rise of 26% from the prior-year quarter.
BX’s results benefited from higher segment revenues and a rise in the AUM balance. However, an increase in GAAP expenses was a headwind.
Lazard Inc.’s (LAZ - Free Report) second-quarter 2025 adjusted earnings per share of 52 cents beat the Zacks Consensus Estimate of 38 cents. This compared favorably with earnings of 49 cents per share in the year-ago quarter.
LAZ’s results were positively impacted by increases in revenues in the financial advisory and asset management sectors. A rise in assets under management balances was another positive. However, a decrease in revenues in the corporate segment and elevated operating expenses acted as a spoilsport.
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KKR Q2 Earnings Surpass Estimates as AUM Rises Y/Y, Stock Gains
Key Takeaways
KKR & Co. Inc.’s (KKR - Free Report) second-quarter 2025 adjusted net income per share of $1.18 topped the Zacks Consensus Estimate of $1.17. The bottom line increased from $1.09 in the prior-year quarter.
KKR shares rallied nearly 1% in the pre-market trading on better-than-expected results.
Results have primarily reflected impressive growth in assets under management (AUM) and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.
Net income attributable to the company (GAAP basis) was $472.4 million compared with the net income of $667.9 million in the year-ago quarter.
KKR’s Segmental Revenues & Expenses Increase
Total segment revenues amounted to $1.28 billion, jumping 15.9% on a year-over-year basis. The rise was driven by higher management fees, fee-related performance revenues, and transaction and monitoring fees. The top line beat the Zacks Consensus Estimate by 0.4%.
Total segment expenses increased 12.8% to $396.9 million.
As of June 30, 2025, total AUM grew 14% year over year to $686 billion. Further, fee-paying AUM summed $556 billion, which increased 14.1% from the year-ago quarter.
KKR’s Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings grew 13.8% year over year to $1.19 billion.
The company posted fee-related earnings of $886.8 million, up 17.4% year over year.
Our Viewpoint on KKR
The company will continue utilizing lucrative investment opportunities on the back of its efficient fundraising capability in the quarters ahead. Significant growth in fee-related earnings and total operating earnings is aiding the company’s financials. However, due to the company’s continuous expansion of its global footprint, expenses are likely to remain elevated. The current tough operating environment is another concern.
KKR & Co. Inc. Price, Consensus and EPS Surprise
KKR & Co. Inc. price-consensus-eps-surprise-chart | KKR & Co. Inc. Quote
Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
Blackstone’s (BX - Free Report) second-quarter 2025 distributable earnings of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. The figure reflects a rise of 26% from the prior-year quarter.
BX’s results benefited from higher segment revenues and a rise in the AUM balance. However, an increase in GAAP expenses was a headwind.
Lazard Inc.’s (LAZ - Free Report) second-quarter 2025 adjusted earnings per share of 52 cents beat the Zacks Consensus Estimate of 38 cents. This compared favorably with earnings of 49 cents per share in the year-ago quarter.
LAZ’s results were positively impacted by increases in revenues in the financial advisory and asset management sectors. A rise in assets under management balances was another positive. However, a decrease in revenues in the corporate segment and elevated operating expenses acted as a spoilsport.