Filing Flows › Ares Management (ARES) › Q1 2025
Ares Management (ARES) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 12, 2025
Ares Management (ARES) reported revenue of $1.0B for the first quarter 2025 (Q1 2025), +37% from a year earlier and -19% from the quarter before. Operating margin was 8.5%, net earnings $47.2M (4.7% of revenue).
Ares Management, Q1 2025: revenue $1.0B (+36% year over year), operating margin 8.5%, net earnings $47.2M, operating cash flow $2.0B. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.0B | -19% | +37% |
| Operating profit | $85.1M | -75% | -48% |
| Net earnings | $47.2M | -73% | -35% |
| Operating cash flow | $2.0B | +147% | +181% |
What changed
Revenue was $1.0B in Q1 2025, up 37% year over year and down 19% from the previous quarter. Management fees was the largest line at 81% of revenue. Carried interest added $0.19B year over year, 72% of the total change.
Operating profit was $0.09B, a 8.5% margin (down 13.9 points year over year). Operating profit fell $0.08B even though revenue rose $0.27B versus a year earlier, so costs grew faster than sales. Total costs grew 61% against revenue growth of 37%. The fastest-growing cost line was Other operating costs (+73%). Net earnings were $0.05B, down 35% year over year. The effective tax rate was 20.6%.
Operating cash flow was $2.0B (up 181% year over year), 2953% of net income including minority interests. Non-cash charges added back $0.26B of share-based compensation. Working capital and other items added $1.7B.
Questions
What was Ares Management's revenue in the first quarter 2025?
Ares Management (ARES) reported revenue of $1.0B for the first quarter 2025 (Q1 2025), +37% from a year earlier and -19% from the quarter before.
Was Ares Management profitable in the first quarter 2025?
Operating profit was $85.1M (8.5% of revenue) and net earnings $47.2M.
Source: Ares Management 10-Q on SEC EDGAR.