Apollo Global Q1 Earnings Miss Estimates, Expenses Increase Y/Y

Apollo Global Management, LLC APO has reported first-quarter 2025 adjusted net income per share of $1.82, which missed the Zacks Consensus Estimate of $1.85. However, the reported figure compared favorably with the adjusted net income of $1.72 in the year-ago period.

Results were primarily affected by a rise in expenses. Nonetheless, an increased assets under management (AUM) balance acted as a tailwind in the quarter.

GAAP net income attributable to Apollo Global was $418 million, which declined from $1.4 billion in the prior-year quarter.

APO’s Quarterly Revenues & Expenses Rise

Total revenues were $978 million, up 16.6% year over year. Also, it topped the Zacks Consensus Estimate by 1.7%. 

Total expenses for combined segments rose 1.9% year over year to $160 million in the reported quarter.

Apollo Global’s AUM Balance Rises

Fee-earnings AUM increased 17.6% on a year-over-year basis to $595 billion. The rise was driven by strong growth in fee-related revenues and measured expense growth. 

As of March 31, 2025, total AUM was $785 billion, up 16.9% on a year-over-year basis. Total AUM benefited from $80 billion of inflows from Asset Management and $77 billion of gross inflows from Retirement Services, partially offset by $57 billion of outflows, driven by normal course activity at Athene and $19 billion of realization activity.

APO’s Capital & Liquidity Position Weak

As of March 31, 2025, Apollo Global had $1.9 billion of cash and cash equivalents and $4.3 billion of debt.

Apollo Global’s Capital Distribution Update

The company declared a quarterly cash distribution of 51 cents per share, along with the earnings release. This dividend will be paid out on May 30, 2025, to shareholders of record as of May 16.

Our Viewpoint on APO

Apollo Global’s decent organic growth and increasing AUM balance look encouraging. The company’s first-quarter results reflect broad-based momentum across the platform. Its quarterly origination volume was robust, driven by a diverse array of investing activity across debt origination platforms, core credit, high-grade capital solutions, and equity origination. In February, APO announced a deal to acquire Bridge Investment Group, which is expected to close in the third quarter of 2025. This impending acquisition aligns with the company's objective to expand its real estate expertise and strengthen its wealth business, supporting its financials.

Apollo Global Management Inc. Price, Consensus and EPS Surprise

Apollo Global Management Inc. price-consensus-eps-surprise-chart | Apollo Global Management Inc. Quote

Currently, Apollo Global carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of APO’s Peers

Invesco’s IVZ first-quarter 2025 adjusted earnings of 44 cents per share surpassed the Zacks Consensus Estimate of 39 cents. Moreover, the bottom line jumped 33.3% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

IVZ’s results primarily gained from higher adjusted net revenues. An increase in the AUM balance due to decent inflows was positive, too. However, higher adjusted operating expenses were worrisome.

KKR & Co. Inc.’s KKR first-quarter 2025 adjusted net income per share of $1.15 surpassed the Zacks Consensus Estimate of $1.13. The bottom line increased from 97 cents in the prior-year quarter.

KKR’s results primarily reflected impressive growth in assets under management and record transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.

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

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