Hamilton Lane (HLNE) Q2 2025 earnings summary

Executive summary

• Management and advisory fee revenue grew 21% year-over-year through Q2 FY2025, with fee-related earnings also up 21%.

• Assets under management reached $131.4B, up 10% year-over-year, with fee-earning AUM at $69.7B, up 14% year-over-year.

• Net income attributable to HLI for the quarter was $55M, up 31% year-over-year; adjusted EBITDA grew 21% year-over-year.

• Declared a quarterly dividend of $0.49 per share, targeting a full-year dividend increase of 10%.

• Added to the S&P MidCap 400 Index, marking a significant milestone.

Financial highlights

• Total revenues for the six months ended September 30, 2024, increased 38% year-over-year to $347M, driven by both incentive and management fees.

• Incentive fees totaled $87M year-to-date, up 133% year-over-year.

• Adjusted net income for the six months was $139.6M, up 42% year-over-year; non-GAAP EPS rose 41% to $2.58.

• Fee Related Earnings margin remained stable at 43% for the quarter and year-to-date.

• Adjusted EBITDA margin was 50% for the quarter.

Outlook and guidance

• Targeting a $1.96 per share dividend for fiscal 2025, a 10% increase over last year.

• Management expects continued growth in fee-earning AUM, supported by new client wins and fundraising for specialized funds.

• Expect continued growth in Evergreen and specialized fund platforms, with new product launches planned.

• Year-over-year specialized funds revenue growth may moderate due to retro fee timing.

• Ongoing investments in technology and talent are expected to drive long-term value.