Ares Management 2025 Q3 Earnings Record Revenue and Net Income Surge 92.5%

Ares Management (NYSE: ARES) delivered a strong Q3 2025 earnings report, surpassing expectations with a 46.7% revenue increase and a 92.5% year-over-year net income jump. The company also raised its 2028 AUM target for semi-liquid wealth products to $125 billion, reflecting confidence in its growth trajectory.

Revenue

Ares Management’s total revenue surged to $1.66 billion in Q3 2025, a 46.7% increase from $1.13 billion in the prior-year period. The Credit Group drove much of this growth, with management fees rising 28% year-over-year to $971.8 million. Fee-related earnings also expanded significantly, reaching $471.2 million—a 39% increase—while incentive fees doubled to $100.7 million. The Private Equity Group and Real Assets segments further contributed to the robust top-line performance, supported by strong fundraising and asset deployment.

Earnings/Net Income

The company’s net income soared to $540.38 million in Q3 2025, up 92.5% from $280.65 million in Q3 2024. Earnings per share (EPS) climbed 109.1% to $1.15, exceeding the $0.55 reported a year earlier. The sharp rise in profitability underscores Ares Management’s operational efficiency and successful execution of its investment strategies. This performance highlights the company’s ability to translate revenue growth into substantial earnings expansion.

Post-Earnings Price Action Review

Following the earnings release, Ares Management’s stock experienced a notable rally, with shares surging 7.96% in pre-market trading to $160.55. The stock’s momentum continued throughout the week, gaining 3.00% and climbing 3.25% month-to-date. The positive investor sentiment reflects confidence in the company’s strategic direction, particularly its expansion in infrastructure and healthcare sectors.

CEO Commentary

CEO Michael Arougheti emphasized Ares Management’s “outstanding” Q3 performance, driven by 28% management fee growth, record $30 billion in fundraising, and $41 billion in gross deployment. He highlighted the company’s strength in infrastructure, real estate, and credit strategies, along with its $150 billion in dry powder. Arougheti also outlined strategic priorities, including expanding infrastructure and real estate platforms, launching new funds, and targeting 40% inflows from non-U.S. markets.

Guidance

Ares Management expects to “meaningfully exceed” 2024’s $93 billion fundraising total, with $105 billion raised in the last 12 months. The company also raised its 2028 AUM target for semi-liquid wealth products to $125 billion, driven by 70% year-over-year growth in gross equity capital.

Additional News

Ares Management announced a definitive agreement to acquire London-based BlueCove, a systematic fixed income manager, to expand its credit capabilities. The deal, expected to close in Q1 2026, will form Ares Systematic Credit. Additionally, the company declared a quarterly dividend of $1.12 per share, maintaining its forward yield of 3.01%. The firm also raised $1.5 billion for a healthcare fund focused on biotechnology and medical IT, further diversifying its portfolio.

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