P10 2025 Q3 Earnings Strong EPS Growth Amid Revenue Miss

P10 (PX) reported mixed results for Q3 2025, with revenue falling short of expectations but non-GAAP EPS surpassing forecasts. The company raised its full-year fundraising target to $5 billion, signaling confidence in its alternative asset management strategy.

Revenue

P10’s total revenue rose 2.3% year-over-year to $75.93 million, driven by a 17% increase in fee-paying assets under management (AUM) to $29.1 billion. However, this fell $1.3 million below the $77.65 million estimated by analysts, marking a 2.6% miss. Management and advisory fees accounted for the bulk of revenue, reflecting strong demand for private market solutions.

Earnings/Net Income

The company’s non-GAAP EPS surged 100% to $0.24, exceeding estimates by $0.01, while net income grew 127.5% to $3.03 million. This marked the fifth consecutive year of profitability for the quarter, underscoring operational efficiency.

Post-Earnings Price Action Review

The strategy of buying P10 shares post-earnings and holding for 30 days yielded a 18.7% total return over three years, though it lagged the S&P 500’s 27.3% return. The CAGR of 6.5% trailed the market by 11.8 percentage points, highlighting the strategy’s reliance on short-term optimism rather than long-term fundamentals.

CEO Commentary

Luke Sarsfield, P10’s CEO, emphasized the company’s ability to exceed 2025 organic fundraising goals, now projected at $5 billion. He noted, “Our 17% AUM growth and strong fee-related earnings demonstrate the resilience of our alternative asset model, even amid market volatility.” Sarsfield also highlighted the acquisition of Qualitas, which expanded P10’s European footprint and diversified its investment offerings.

Guidance

While no explicit guidance was provided, the company’s performance suggests continued focus on fee-paying AUM growth and cost discipline. With a beta of 0.8, P10’s stock is positioned as a lower-volatility option during downturns, though long-term investors must monitor industry trends and management decisions.

Additional News

1. M&A Activity: P10 acquired Qualitas, a Madrid-based private equity platform, to enhance its European lower-middle market presence.

2. Dividend & Buybacks: The board declared a $0.0375/share dividend, payable December 19, and repurchased 110,032 shares at $11.34 apiece.

3. Fundraising Update: The company raised its 2025 organic fundraising target from $4 billion to $5 billion, reflecting robust investor demand for alternative assets.

P10’s mixed Q3 results highlight its strengths in profit growth and AUM expansion, but investors should remain cautious about revenue shortfalls and market volatility. The stock’s beta and dividend yield may appeal to risk-averse investors, though long-term success hinges on execution of its fundraising and acquisition strategies.