Hamilton Lane (HLNE) Q3 2025 earnings summary

Executive summary

• Assets under management reached $135B, up 12% year-over-year; fee-earning AUM at $71B, up 13% as of December 31, 2024.

• Management and advisory fees grew 18% year-to-date, with fee-related earnings up 21% and strong growth in specialized funds and Evergreen products.

• Net income attributable to HLI for the quarter was $53M; year-to-date net income was $167M, up 80% year-over-year.

• Adjusted EBITDA for the nine months reached $264M, up 46% year-over-year; Q3 Adjusted EBITDA was $92.7M, up 59% year-over-year.

• Quarterly dividend of $0.49 per share declared, targeting a full-year dividend of $1.96, up 10% from the prior year.

Financial highlights

• Total revenues for the nine months were $515M, up 37% year-over-year, driven by both incentive and management fees.

• Incentive fees surged 163% year-over-year to $129M for the nine months; Q3 incentive fees up 261% to $42M.

• Fee Related Earnings for the nine months were $166M, up 21% year-over-year; Q3 FRE was $54.2M, up 20% year-over-year.

• Adjusted net income for the nine months was $208M, up 52% year-over-year; non-GAAP EPS was $3.82, up 50%.

• Unrealized carried interest balance reached $1.3B, up 15% year-over-year.

Outlook and guidance

• Management expects continued growth in AUM and fee-earning AUM, supported by new client wins, fund launches, and robust fundraising.

• Equity-based compensation expense to remain at ~$30M per year for the next five years.

• Margin profile expected to remain stable in the near term, with potential for expansion over the long term.

• Advisory services opportunity set continues to be robust, especially for larger clients.

• Ongoing investment in technology and expansion of product offerings to drive future revenue.