Ares Management Set to Report Q4 Earnings: What's in the Cards?

Ares Management ARES is scheduled to announce fourth-quarter and 2025 results on Feb. 5, before the opening bell. Its quarterly revenues and earnings are likely to have increased on a year-over-year basis.

In the last reported quarter, results were primarily aided by an increased assets under management balance. Further, the acquisition of GCP International and additional managed assets from the insurance platform supported growth. However, rising expenses acted as headwinds in the quarter.

ARES earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 2.12%.

Ares Management Corporation Price and EPS Surprise

Ares Management Corporation price-eps-surprise | Ares Management Corporation Quote

ARES’s Q4 & 2025 Earnings & Sales Estimates

The Zacks Consensus Estimate for Ares Management’s quarterly earnings of $1.71 has been revised marginally lower over the past seven days. The figure indicates a fall of 39% from the prior-year quarter’s reported number.

The consensus estimate for ARES’s 2025 earnings of $5.08 indicates a rise of 27.9% from the previous year’s actual.

The consensus estimate for quarterly sales is pegged at $1.63 billion, which suggests a year-over-year rise of 31.5%. The estimate for full-year sales is $4.82 billion, which indicates year-over-year growth of 34.9%.

Major Developments of ARES in Q4

In October 2025, Ares Management announced that it entered a definitive agreement to acquire the entire outstanding share capital of BlueCove Limited, a London-based systematic fixed income manager. The deal is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.

The acquisition represents a strategic expansion of Ares Management’s Credit Group into systematic credit investing, aligning with growing investor demand for data-driven fixed income strategies. The integration of BlueCove’s proprietary technology and systematic portfolio management capabilities with the firm’s global distribution reach, especially in insurance channels, enhances its presence in liquid and quantitative credit markets.

The transaction further expands the breadth of Ares Management’s Credit Group across liquid and illiquid credit strategies globally. The addition of systematic credit capabilities enhances its ability to deliver differentiated credit solutions and complements its existing direct lending, high-yield, multi-asset credit and alternative credit offerings.

Key Factors & Estimates for Ares Management in Q4

ARES has been witnessing consistent improvement over the years, supported by its diversified alternative investment platform. Rising investor demand across private credit  and secondaries is expected to support fundraising and capital deployment, thereby driving further AUM growth. Given the high market volatility and increased client activity in the fourth quarter, Ares Management is expected to have witnessed a rise in the AUM balance as inflows grew.

The Zacks Consensus Estimate for total AUM of $621.1 billion indicates growth of 28.2% from the prior quarter’s actual. The consensus estimate for total fee-earning AUM of $388.2 billion suggests a sequential rise of 32.7%.

The GCP International acquisition expanded ARES’s real assets and digital infrastructure capabilities, and added incremental management fee revenues. 

The Zacks Consensus Estimate for total management fees (segment revenues) is pegged at $3.7 billion, which indicates 24.9% growth from the prior quarter’s actual. The consensus estimate for fee-related performance revenues (segment revenues) of $283.9 million suggests a 22.6% sequential rise. The Zacks Consensus Estimate for Other fees (segment revenues) is pegged at $270.9 million, which indicates a rally from the $91.9 million reported in the prior quarter.

ARES expenses have been increasing over the past few years, mainly due to higher compensation and benefits, ongoing investments in fundraising and platform expansion. Further, expenses are also expected to remain elevated in the fourth quarter due to the acquisition and integration-related costs of the recently acquired GCP International.

What Our Model Predicts for Ares Management

According to our quantitative model, the chances of ARES beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Ares Management is +0.97%.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Asset Managers

Invesco’s IVZ fourth-quarter 2025 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line increased 19.2% from the prior-year quarter.

The results of IVZ have been primarily aided by an increase in adjusted revenues. Moreover, growth in the assets under management reached record levels, supporting the results to an extent. However, an increase in adjusted operating expenses was a headwind.

SEI Investments Co.’s SEIC fourth-quarter 2025 earnings of $1.38 per share beat the Zacks Consensus Estimate of $1.34. Moreover, the bottom line reflected a rise of 16% from the prior-year quarter.

SEIC’s results were aided by higher revenues and a rise in assets under management. However, higher expenses acted as a spoilsport.

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This article originally published on Zacks Investment Research (zacks.com).

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