Apollo Global Management (APO) Q1 2025 earnings summary

Executive summary

• Achieved record organic inflows and strong origination volume in Asset Management for Q1 2025, with assets under management reaching $785 billion, up 17% year-over-year, driven by $43 billion in quarterly inflows.

• Adjusted net income reached $1.1 billion ($1.82 per share), while GAAP net income attributable to common stockholders was $418 million ($0.68 per share), reflecting lower investment gains and higher expenses.

• Declared a $0.51 per share common stock dividend and a $0.8438 per share preferred stock dividend for Q1 2025.

• Announced acquisition of Bridge Investment Group for $1.5 billion in an all-stock deal, expected to close in H2/Q3 2025.

• Returned over $1.7 billion to shareholders over the last twelve months via dividends and share repurchases.

Financial highlights

• Fee Related Earnings (FRE) reached a record $559 million, up 21% year-over-year, with FRE margin expanding to 57.2%.

• Spread Related Earnings (SRE) were $804 million, down 2% year-over-year, with net investment spread in Retirement Services at 1.26%-1.65%.

• Total revenues for Q1 2025 were $5.55 billion, down 21% year-over-year, mainly due to investment-related losses in Retirement Services.

• Management fees grew 18% year-over-year, with capital solutions fees up 9% and fee-related performance fees up 17%.

• Adjusted Net Income was $1.12 billion, up 5% year-over-year after adjusting for non-cash and non-operating items.

Outlook and guidance

• Management expects continued AUM growth, supported by strong institutional demand, new product launches, and robust origination capabilities.

• Guidance calls for mid-single-digit SRE growth for 2025 from a $3.2 billion base, with upside if wider spreads persist.

• The Bridge acquisition is anticipated to enhance real estate capabilities and diversify fee streams.

• Dividend increased to $0.51 per share for Q2 2025, reflecting confidence in cash flow generation.

• Wealth channel inflows projected at $16–$17 billion for the year, with strong momentum in Q1 and April.