DBRG Q3 Deep Dive: Strategic Data Center Leasing and Power Bank Drive Platform Expansion

Digital infrastructure investor DigitalBridge Group (NYSE:DBRG) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 95% year on year to $3.82 million. Its GAAP profit of $0.09 per share was 12.9% below analysts’ consensus estimates.

Is now the time to buy DBRG? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

DigitalBridge’s third quarter results reflected robust growth across key financial metrics, including fee revenue and fee-related earnings, with management emphasizing strong progress in core business areas. CEO Marc Ganzi pointed to record data center leasing activity, successful capital formation, and a significant increase in fee-earning equity under management as the primary drivers behind the company’s operational momentum. He noted, “This quarter really exemplifies what we've been building towards at DigitalBridge... the relevance and strategic value of our power bank was on full display.”

Looking forward, DigitalBridge’s guidance is shaped by accelerating demand for AI-driven infrastructure and the rollout of new investment strategies. Management highlighted the launch of a private wealth partnership with Franklin Templeton, ongoing expansion in Asia Pacific, and a robust pipeline of data center projects as key growth levers. Ganzi stated, “We have the capability, we have the advantage, and we're executing,” underscoring a focus on leveraging the company’s secured power position and diversified platform to drive long-term value for shareholders.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to record leasing in its data center portfolio, major capital formation, and the execution of its power-centric investment strategy, while also noting the importance of new partnerships and geographic expansion.

• Power bank advantage: The company’s ability to secure and deploy over 20 gigawatts of power across its data center platforms was a central factor in winning large-scale AI infrastructure contracts, which management described as a comparative advantage in the current environment.
• Record leasing activity: Leasing of 2.6 gigawatts in the quarter represented about one-third of all U.S. hyperscale data center leasing, with long-term, investment-grade contracts that provide visibility into future fee revenue and carried interest generation.
• Flagship data center projects: Vantage Data Centers announced two mega campuses—Frontier in Texas and Lighthouse in Wisconsin—representing a combined $40 billion investment and 2.4 gigawatts of capacity, both structured as long-term contracted projects with strong commitments from major technology partners including Oracle and OpenAI.
• Capital formation and fee growth: DigitalBridge raised $1.6 billion in new capital during the quarter and achieved its $40 billion fee-earning equity under management target ahead of schedule, with fee-related earnings margins benefiting from catch-up fees and expanding co-investment activity.
• Private wealth and new product channels: The partnership with Franklin Templeton was highlighted as a strategic step to access the mass affluent segment, diversify capital sources, and accelerate the company’s multi-channel distribution strategy.

Drivers of Future Performance

DigitalBridge’s outlook is underpinned by continued AI-driven data center demand, new investment products, and geographic expansion, but also faces the challenge of sustaining margin gains and managing execution risk.

• AI and infrastructure tailwinds: Management expects ongoing demand for high-capacity, AI-focused data centers to drive leasing and capital formation, with secured power positions enabling the company to address increasingly complex customer requirements across North America, Europe, and Asia Pacific.
• Product and geographic diversification: The company is launching new strategies in digital energy, stabilized data centers, and private wealth, aiming to broaden its investor base and revenue streams, while upcoming projects in Asia Pacific and Europe are intended to capture spillover demand from constrained markets.
• Carried interest realization timing: Leadership acknowledged that meaningful carried interest payouts are dependent on the life cycle of large data center projects, with the bulk of recognition expected over three to five years, introducing some timing uncertainty to near-term earnings visibility.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace at which new data center developments like Frontier and Lighthouse translate into fee-earning revenue, (2) progress in raising capital for new digital energy and private wealth products, and (3) the achievement of initial anchor commitments in the Asia Pacific and European markets. The impact of these initiatives on margin trends and the realization of carried interest will be critical indicators of execution.

DigitalBridge currently trades at $12.39, down from $12.73 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

Now Could Be The Perfect Time To Invest In These Stocks

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.