Core Viewpoint - DigitalBridge (DBRG) is positioned as an investment manager focusing on infrastructure that supports and enhances AI technology, presenting a potentially undervalued investment opportunity compared to GPU manufacturers that have seen high valuations [1] Company Analysis - DBRG is perceived as inexpensive relative to its role in the AI infrastructure sector, especially when compared to the high multiples awarded to GPU manufacturers [1] - The company adopts a value investing approach, emphasizing an owner's mindset and a long-term investment horizon [1] Investment Position - The analysis indicates a beneficial long position in DBRG shares, suggesting confidence in the company's future performance [2]

Group 1 - The discussion focuses on the intersection of power, artificial intelligence, and the emerging energy challenges faced by data centers [1][2] - DigitalBridge, led by CEO Marc Ganzi, is characterized as a significant investor in digital infrastructure, emphasizing differentiated grid-independent power solutions [2]

Core Insights - DigitalBridge is positioning itself uniquely in the market by focusing on investments in AI and digital infrastructure, highlighting the significant growth potential in this sector [1] - The company emphasizes that the current infrastructure developments represent a multi-decade opportunity, which is much larger than previous technological advancements like 2G or 5G [1] Group 1 - The company is leveraging its portfolio of companies to enhance performance and outcomes for shareholders [1] - There is a transformational moment in the infrastructure landscape that the company is capitalizing on [1]

Core Viewpoint - WideOpenWest, Inc. (WOW!) has entered into a definitive agreement for an all-cash acquisition by DigitalBridge Investments and Crestview Partners, valuing the company at approximately $1.5 billion, with stockholders receiving $5.20 per share, representing a 37.2% premium to the unaffected price prior to the initial offer [1][2]. Company Overview - WOW! is a leading broadband provider in the U.S., serving nearly 2 million customers across 20 markets, primarily in the Midwest and Southeast [7]. - The company offers a range of services including high-speed internet, cable TV, and cloud services, and has been recognized for its exceptional human resources practices [7]. Transaction Details - The acquisition price of $5.20 per share represents a 63% premium to WOW!'s closing price on August 8, 2025 [1]. - Crestview, as WOW!'s largest stockholder, will roll over all shares it owns, which constitutes approximately 37% of WOW!'s outstanding shares [4]. - The transaction has been unanimously approved by WOW!'s Board of Directors and is expected to close by the end of 2025 or in the first quarter of 2026, pending stockholder and regulatory approvals [3][5]. Strategic Implications - The partnership with DigitalBridge and Crestview is expected to enhance WOW!'s growth, allowing for investments in network expansion and technology upgrades, thereby improving service delivery and customer experience [2][8]. - The transaction is seen as a significant opportunity for WOW! to strengthen its market position as a trusted broadband provider [2].

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%2E%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents DigitalBridge Group's unaudited consolidated financial statements for Q2 2025, covering balance sheets, income, equity, cash flows, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show slight decreases in total assets and liabilities, with increases in stockholders' equity and cash | Metric (in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------- | :-------------------------- | :------------------ | | Cash and cash equivalents | $340,698 | $302,154 | | Investments | $2,389,801 | $2,492,268 | | Total assets | $3,408,581 | $3,513,318 | | Total liabilities | $957,753 | $1,022,128 | | Total stockholders' equity | $2,018,531 | $1,958,582 | | Total equity | $2,425,796 | $2,466,834 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss for Q2 and YTD 2025, a shift from prior year net income, primarily due to negative carried interest allocation, despite increased fee revenue | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Fee revenue | $85,262 | $78,605 | $175,401 | $151,560 | | Carried interest allocation | $(115,074) | $288,244 | $(170,538) | $279,766 | | Total revenues | $(3,207) | $390,336 | $42,240 | $464,729 | | Net income (loss) | $(25,684) | $129,928 | $(40,539) | $99,162 | | Net income (loss) attributable to common stockholders | $16,962 | $76,763 | $16,084 | $32,475 | | Net income (loss) attributable to common stockholders per common share—basic | $0.10 | $0.44 | $0.09 | $0.19 | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The company reported a comprehensive loss for Q2 and YTD 2025, influenced by net income (loss) and foreign currency translation changes | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $(25,684) | $129,928 | $(40,539) | $99,162 | | Changes in accumulated other comprehensive income (loss) related to foreign currency translation | $4,234 | $45 | $6,463 | $(709) | | Comprehensive income (loss) | $(21,450) | $129,973 | $(34,076) | $98,453 | | Comprehensive income (loss) attributable to stockholders | $35,602 | $91,465 | $51,471 | $61,137 | [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity) Total stockholders' equity increased from December 2024 to June 2025, driven by additional paid-in capital, despite a net loss | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :------------------------------------ | :---------------- | :-------------- | | Total Stockholders' Equity | $1,958,582 | $2,018,531 | | Noncontrolling Interests in Investment Entities | $430,528 | $357,216 | | Noncontrolling Interests in Operating Company | $77,724 | $50,049 | | Total Equity | $2,466,834 | $2,425,796 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated significant net cash from operating activities in H1 2025, a reversal from prior year outflow, while investing and financing activities resulted in net cash outflows | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash generated by (used in) operating activities | $127,271 | $(4,483) | | Net cash generated by (used in) investing activities | $(68,506) | $(17,227) | | Net cash generated by (used in) financing activities | $(25,064) | $(61,920) | | Cash, cash equivalents and restricted cash—end of period | $345,021 | $265,916 | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures supporting the consolidated financial statements, covering business, accounting policies, and financial details [1. Business and Organization](index=14&type=section&id=1.%20Business%20and%20Organization) DigitalBridge Group, Inc. is a global investment manager focused on digital infrastructure, with a 96% ownership in its operating subsidiary as of June 30, 2025 - DigitalBridge Group, Inc. is a leading global investment manager in digital infrastructure, including data centers, cell towers, fiber networks, small cells, and edge infrastructure[30](index=30&type=chunk) - The Company owned **96%** of its operating subsidiary, DigitalBridge Operating Company, LLC (OP), at June 30, 2025, which increased to **97%** as of July 31, 2025, following redemption of additional OP units[31](index=31&type=chunk) [2. Summary of Significant Accounting Policies](index=14&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the company's basis of presentation, consolidation principles, noncontrolling interest accounting, and recently adopted and future accounting pronouncements - The Company adopted ASU 2023-09, 'Improvements to Income Tax Disclosures,' effective January 1, 2025, with no material impact expected on annual income tax disclosures[49](index=49&type=chunk)[50](index=50&type=chunk) - The FASB issued ASU 2025-05, 'Measurement of Credit Losses for Accounts Receivable and Contract Assets,' effective January 1, 2026, which the Company intends to early adopt and elect the practical expedient, with no material impact expected[51](index=51&type=chunk)[52](index=52&type=chunk) - ASU 2025-03, 'Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,' issued in May 2025, modifies the framework for identifying accounting acquirers in VIE business combinations, effective January 1, 2027, with early adoption permitted[53](index=53&type=chunk)[55](index=55&type=chunk) - ASU 2024-03, 'Disaggregation of Income Statement Expenses,' issued in November 2024, requires tabular footnote disclosure of certain natural expenses, effective January 1, 2027, with the Company currently evaluating its effects[56](index=56&type=chunk)[57](index=57&type=chunk) [3. Investments](index=19&type=section&id=3.%20Investments) The company's investments primarily consist of equity method and debt investments, with carried interest allocation seeing a significant decrease from December 2024 to June 2025 | (In thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | **Equity method investments** | | | | Principal investments | $1,427,692 | $1,391,316 | | Carried interest allocation | $721,545 | $894,553 | | Other equity investments | $27,737 | $24,854 | | Debt investment | $32,697 | $35,122 | | **Equity investments of consolidated funds** | | | | Marketable equity securities | $99,516 | $83,269 | | Other investments | $80,614 | $63,154 | | **Total Investments** | $2,389,801 | $2,492,268 | - In 2025, carried interest of **$2.5 million** was distributed during Q1, with **$1.6 million** allocated to current and former employees[64](index=64&type=chunk) - The Company did not have a liability for clawback obligations on carried interest distributed as of June 30, 2025, and December 31, 2024[65](index=65&type=chunk) [4. Intangible Assets](index=22&type=section&id=4.%20Intangible%20Assets) The company's intangible assets, primarily investment management contracts, investor relationships, and trade names, decreased due to amortization from December 2024 to June 2025 | (In thousands) | June 30, 2025 Net Carrying Amount | December 31, 2024 Net Carrying Amount | | :----------------------------- | :-------------------------------- | :------------------------------------ | | Investment management contracts | $31,646 | $41,123 | | Investor relationships | $26,970 | $28,561 | | Trade name | $1,746 | $1,963 | | Other | $737 | $813 | | **Total Intangible Assets** | $61,099 | $72,460 | - Amortization expense for finite-lived intangible assets totaled **$6.6 million** for Q2 2025, and **$13.2 million** for H1 2025[76](index=76&type=chunk) [5. Restricted Cash, Other Assets and Other Liabilities](index=23&type=section&id=5.%20Restricted%20Cash%2C%20Other%20Assets%20and%20Other%20Liabilities) This section details restricted cash, other assets (including operating lease ROU assets and fixed assets), and other liabilities (such as deferred fees and accrued compensation), also addressing deferred income taxes and new U.S. tax legislation | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :-------------- | :---------------- | | **Other Assets** | | | | Operating lease right-of-use asset for corporate offices | $24,651 | $28,901 | | Fixed assets, net | $7,847 | $9,712 | | Total other assets | $47,048 | $52,504 | | **Other Liabilities** | | | | Deferred investment management fees | $26,038 | $9,306 | | Accrued compensation | $36,030 | $54,644 | | Accrued incentive fee and carried interest compensation | $417,261 | $497,288 | | Total other liabilities | $659,761 | $725,766 | - The Company has significant deferred tax assets, primarily related to capital loss carryforwards, but a full valuation allowance has been established as their realizability did not meet the more-likely-than-not threshold[82](index=82&type=chunk) - New U.S. tax legislation, 'An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14' (One Big Beautiful Bill Act), enacted on July 4, 2025, could affect the Company's effective tax rate and deferred tax assets/liabilities, with effects recognized beginning Q3 2025[83](index=83&type=chunk)[84](index=84&type=chunk) [6. Debt](index=24&type=section&id=6.%20Debt) The company's corporate debt primarily consists of a securitized financing facility, with its Variable Funding Notes (VFN) capacity reduced in June 2025, and all exchangeable senior notes extinguished in H1 2024 | (In thousands) | June 30, 2025 Amortized Cost | December 31, 2024 Amortized Cost | | :----------------------------- | :--------------------------- | :------------------------------- | | Securitized financing facility | $297,992 | $296,362 | | ($ in thousands) | Outstanding Principal | Interest Rate (Per Annum) | Anticipated Repayment Date | Years Remaining to Maturity | | :----------------- | :-------------------- | :------------------------ | :------------------------- | :-------------------------- | | Class A-2 Notes | $300,000 | 3.93% | September 2026 | 1.2 | | Variable Funding Notes | — | Adjusted 1-month Term SOFR + 3% | September 2026 | NA | - In H1 2024, the remaining **$78.4 million** of 5.75% exchangeable senior notes were extinguished, with **$73.4 million** exchanged for Class A common stock and **$5.0 million** redeemed for cash[93](index=93&type=chunk) [7. Stockholders' Equity](index=27&type=section&id=7.%20Stockholders%27%20Equity) This section details changes in preferred and common stock, including Class B to Class A conversions, OP unit redemptions, equity award activities, and changes in accumulated other comprehensive income (loss) | (In thousands) | Preferred Stock | Class A Common Stock | Class B Common Stock | | :------------------------------------------ | :-------------- | :------------------- | :------------------- | | Shares outstanding at December 31, 2024 | 32,876 | 174,202 | 150 | | Shares issued upon redemption of OP units | — | 4,363 | — | | Conversion of class B to class A common stock | — | 150 | (150) | | Equity awards issued, net of forfeitures | — | 2,730 | — | | Shares canceled for tax withholding on vested equity awards | — | (558) | — | | Shares outstanding at June 30, 2025 | 32,876 | 180,887 | — | | Description | Dividend Rate Per Annum | Shares Outstanding (in thousands) | Liquidation Preference (in thousands) | | :---------- | :---------------------- | :-------------------------------- | :------------------------------------ | | Series H | 7.125 % | 8,395 | $209,870 | | Series I | 7.15 % | 12,867 | $321,668 | | Series J | 7.125 % | 11,614 | $290,361 | | **Total** | | 32,876 | $821,899 | - In 2025, all **149,571** shares of Class B common stock were converted into an equivalent number of Class A common stock shares and subsequently cancelled[101](index=101&type=chunk) [8. Noncontrolling Interests](index=28&type=section&id=8.%20Noncontrolling%20Interests) This section outlines activities in redeemable noncontrolling interests in open-end funds and noncontrolling interests in the Operating Company (OP), detailing contributions, distributions, net income (loss) allocations, and OP unit redemptions | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | **Redeemable noncontrolling interests** | | | | Beginning balance | $24,356 | $17,862 | | Contributions | $1,300 | $1,000 | | Distributions paid and payable, including redemptions | $(1,273) | — | | Net income (loss) | $649 | $891 | | Ending balance | $25,032 | $19,753 | - The Company redeemed **5,622,793** OP units in 2025 (including **1,259,793** in July 2025) and **452,418** in 2024, through the issuance of an equal number of Class A common stock shares[111](index=111&type=chunk) [9. Fair Value](index=29&type=section&id=9.%20Fair%20Value) This section describes the company's fair value measurements, categorized into a three-tier hierarchy, detailing the valuation of various financial instruments and highlighting changes in Level 3 assets and liabilities | (In thousands) | Level 1 | Level 2 | Level 3 | Total | | :------------------------------------------ | :------ | :------ | :------ | :------ | | **June 30, 2025 Assets** | | | | | | Other equity investments—Marketable equity securities | $313 | $— | $— | $313 | | CLO subordinated notes | $— | $— | $32,697 | $32,697 | | Equity investments of consolidated funds | $99,516 | $— | $80,614 | $180,130 | | Fair Value Option: Equity method investment | $— | $— | $140,645 | $140,645 | | **June 30, 2025 Liabilities** | | | | | | InfraBridge contingent consideration | $— | $— | $2,300 | $2,300 | | DBRG stock warrants | $— | $— | $500 | $500 | | Securities of consolidated funds sold short | $61,667 | $— | $— | $61,667 | | (In thousands) | Fair Value Option - Equity Method Investments | Equity Investment of Consolidated Funds | DBRG Stock Warrants | InfraBridge Contingent Consideration | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------ | :----------------------------------- | | Fair value at December 31, 2024 | $137,154 | $63,154 | $(700) | $(6,100) | | Contributions | — | $17,333 | — | — | | Unrealized gain (loss) in earnings, net | $3,491 | $127 | $200 | $3,800 | | Fair value at June 30, 2025 | $140,645 | $80,614 | $(500) | $(2,300) | - In March 2024, three of the five DBRG stock warrants were reclassified from liability to equity due to the removal of the cash settlement feature, eliminating fair value remeasurement for those warrants[121](index=121&type=chunk) [10. Earnings per Share](index=32&type=section&id=10.%20Earnings%20per%20Share) This section presents basic and diluted earnings per common share computations, showing a decrease in both for Q2 and YTD 2025 compared to the prior year | Metric (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common stockholders—basic | $16,561 | $75,146 | $15,733 | $31,851 | | Weighted average number of common shares outstanding—basic | 173,059 | 170,358 | 172,373 | 165,748 | | Net income (loss) attributable to common stockholders per common share—basic | $0.10 | $0.44 | $0.09 | $0.19 | | Net income (loss) attributable to common stockholders per common share—diluted | $0.10 | $0.44 | $0.09 | $0.19 | [11. Fee Revenue](index=33&type=section&id=11.%20Fee%20Revenue) The company's fee revenue, primarily management and incentive fees, increased, with three funds accounting for a significant concentration of total management fees | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Management fees | $84,373 | $75,687 | $174,233 | $147,531 | | Incentive fees | $600 | $1,651 | $606 | $2,532 | | Other fees | $289 | $1,267 | $562 | $1,497 | | **Total fee revenue** | $85,262 | $78,605 | $175,401 | $151,560 | - Three funds met the revenue concentration criteria, aggregating to **62.3%** and **64.5%** of total management fees for Q2 and H1 2025, respectively[137](index=137&type=chunk) [12. Equity-Based Compensation](index=33&type=section&id=12.%20Equity-Based%20Compensation) This section details the company's equity-based compensation plans, including restricted stock, RSUs, PSUs, LTIP units, and DSUs, outlining vesting conditions, valuation, and recognized compensation expense - The 2024 Omnibus Stock Incentive Plan, approved in April 2024, reserved **5.5 million** shares of Class A common stock for awards to officers, directors, employees, consultants, or advisors[139](index=139&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Compensation expense | $10,725 | $17,641 | $18,345 | $26,855 | | Administrative expense | $148 | — | $239 | — | | **Total** | $10,873 | $17,641 | $18,584 | $26,855 | - At June 30, 2025, aggregate unrecognized compensation cost for all unvested equity awards was **$47.1 million**, expected to be recognized over a weighted average period of **1.8 years**[158](index=158&type=chunk) [13. Variable Interest Entities](index=36&type=section&id=13.%20Variable%20Interest%20Entities) This section discusses the company's involvement with VIEs, including its operating subsidiary and company-sponsored funds, explaining consolidation criteria, presenting consolidated fund assets/liabilities, and maximum exposure to loss from unconsolidated funds - The Company consolidates its operating subsidiary (OP) as it is deemed the primary beneficiary, holding a majority interest and exercising full control over its activities[161](index=161&type=chunk) | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :-------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $65,326 | $62,630 | | Investments | $180,130 | $146,423 | | Other assets | $860 | $724 | | **Total Assets** | $246,316 | $209,777 | | **Liabilities** | | | | Securities sold short | $61,667 | $47,930 | | Due to custodian | $10,833 | $9,121 | | Other | $192 | $697 | | **Total Liabilities** | $72,692 | $57,748 | - The Company's maximum exposure to loss from unconsolidated funds is limited to its outstanding investment balance of **$2.0 billion** at June 30, 2025, and it has unfunded commitments of **$187.3 million** to these funds[164](index=164&type=chunk)[165](index=165&type=chunk) [14. Transactions with Affiliates](index=39&type=section&id=14.%20Transactions%20with%20Affiliates) This section details transactions with affiliates, including investment vehicles, portfolio companies, directors, and employees, covering amounts due from/to affiliates, fee revenue, cost reimbursements, and CEO private aircraft expenses | (In thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :-------------- | :---------------- | | **Due from Affiliates** | | | | Investment vehicles and portfolio companies | | | | Fee revenue | $86,016 | $103,402 | | Cost reimbursements and recoverable expenses | $12,958 | $19,111 | | Employees and other affiliates | $1,036 | $1,673 | | **Total Due from Affiliates** | $100,010 | $124,186 | | **Due to Affiliates** | | | | Employees and other affiliates | $1,254 | $1,675 | | **Total Due to Affiliates** | $1,254 | $1,675 | - Expenses incurred for Mr. Ganzi's private aircraft use (business and personal) totaled **$1.0 million** for Q2 2025, and **$2.7 million** for H1 2025[175](index=175&type=chunk) [15. Segment Reporting](index=41&type=section&id=15.%20Segment%20Reporting) Effective 2024, the company reports its entire business as a single reportable segment, with segment earnings measured as net income (loss) from continuing operations attributable to common stockholders - Effective 2024, the Company operates and reports as a single reportable segment, aligning with the CODM's assessment of the entire business[176](index=176&type=chunk) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income (loss) from continuing operations attributable to common stockholders | $15,415 | $77,437 | $18,455 | $46,279 | [16. Commitments and Contingencies](index=43&type=section&id=16.%20Commitments%20and%20Contingencies) As of June 30, 2025, the company is not involved in any legal proceedings expected to have a material adverse effect on its financial results - As of June 30, 2025, the Company was not involved in any legal proceedings expected to have a material adverse effect on its financial results[184](index=184&type=chunk) [17. Subsequent Events](index=43&type=section&id=17.%20Subsequent%20Events) No subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the accompanying notes - No material subsequent events requiring recognition or disclosure have occurred[185](index=185&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes DigitalBridge Group, Inc.'s financial condition and results, covering business overview, investment platform, significant developments, revenue/expense analysis, operating metrics, non-GAAP measures, liquidity, and critical accounting policies [Our Business](index=45&type=section&id=Our%20Business) DigitalBridge Group, Inc. is a leading global investment manager in digital infrastructure, with $39.7 billion in fee-earning equity under management (FEEUM) and 96% ownership of its Operating Company as of June 30, 2025 - DigitalBridge is a leading global investment manager in digital infrastructure, with **$39.7 billion** of fee earning equity under management (FEEUM) as of June 30, 2025[193](index=193&type=chunk) - The Company owns **96%** of its Operating Company as of June 30, 2025, increasing to **97%** by July 31, 2025[194](index=194&type=chunk) [Our Investment Management Platform](index=45&type=section&id=Our%20Investment%20Management%20Platform) The company's investment management platform offers diverse strategies, including value-add digital infrastructure, core equity, private credit, liquid securities, and mid-market infrastructure, with varying performance metrics for key funds - The investment management platform includes DBP series (value-add digital infrastructure), Core Equity (Strategic Assets Fund), DigitalBridge Credit (private credit), Liquid Strategies (public equities), and InfraBridge (mid-market infrastructure)[195](index=195&type=chunk)[197](index=197&type=chunk)[203](index=203&type=chunk) | Fund | Inception Date | Total Commitments ($ in millions) | Invested Capital ($ in millions) | Total Investment Value ($ in millions) | Gross MOIC | Net MOIC | Gross IRR | Net IRR | | :-------- | :------------- | :-------------------------------- | :------------------------------- | :------------------------------------- | :--------- | :------- | :-------- | :------ | | DBP I | Mar-2018 | $4,059 | $4,825 | $7,540 | 1.6x | 1.4x | 12.0% | 9.0% | | DBP II | Nov-2020 | $8,286 | $8,057 | $10,928 | 1.4x | 1.2x | 11.0% | 8.0% | | SAF | Nov-2022 | $1,110 | $994 | $1,130 | 1.1x | 1.1x | 6.8% | 4.7% | | GIF I | Mar-2015 | $1,411 | $1,504 | $2,438 | 1.6x | 1.4x | 9.3% | 6.6% | | GIF II | Jun-2018 | $3,382 | $3,160 | $2,611 | 0.8x | 0.7x | <0% | <0% | | Credit I | Dec-2022 | $697 | $635 | $699 | 1.1x | 1.1x | 9.7% | 6.5% | [Significant Developments](index=47&type=section&id=Significant%20Developments) In 2025, the company raised $2.5 billion in capital, primarily for its third flagship value-add strategy, and realized $59.7 million from a DataBank secondary sale - In 2025, through Q2, the Company raised **$2.5 billion** of capital, primarily for its third flagship value-add strategy and co-investment vehicles[199](index=199&type=chunk) - The Company received approximately **$59.7 million** in proceeds from a secondary sale of equity by its DataBank portfolio company in February 2025, including **$34.0 million** in realized principal investment income[200](index=200&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) The company experienced a significant decline in total revenues and net income (loss) in Q2 and YTD 2025 due to a large reversal in carried interest allocation, despite increased fee revenue and decreased expenses | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $(3,207) | $390,336 | $42,240 | $464,729 | | Total expenses | $32,433 | $268,503 | $87,730 | $352,402 | | Net income (loss) | $(25,684) | $129,928 | $(40,539) | $99,162 | | Net income (loss) attributable to common stockholders | $16,962 | $76,763 | $16,084 | $32,475 | | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Management fees | $84,373 | $75,687 | $174,233 | $147,531 | | Incentive fees | $600 | $1,651 | $606 | $2,532 | | Other fee revenue | $289 | $1,267 | $562 | $1,497 | | **Total fee revenue** | $85,262 | $78,605 | $175,401 | $151,560 | - Fee revenue increased by **$6.7 million (8%)** quarter-over-quarter and **$23.8 million (16%)** year-over-year, driven by additional capital raised for the third flagship fund and deployment of capital by various funds[210](index=210&type=chunk)[211](index=211&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Distributed | $— | $118 | $2,470 | $118 | | Unrealized | $(115,074) | $288,126 | $(173,008) | $279,648 | | **Carried interest allocation** | $(115,074) | $288,244 | $(170,538) | $279,766 | - Carried interest allocation experienced a significant net reversal of **$(115.1) million** in Q2 2025 and **$(170.5) million** YTD 2025, compared to net positive allocations in 2024, primarily due to continuing accrual of preferred returns outpacing changes in investment fair values[213](index=213&type=chunk)[214](index=214&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Realized | $(33,819) | $8,169 | $1,219 | $10,546 | | Unrealized | $54,256 | $7,813 | $24,525 | $8,281 | | **Principal investment income** | $20,437 | $15,982 | $25,744 | $18,827 | - Realized principal investment loss in Q2 2025 was driven by a **$40.3 million** loss from an InfraBridge fund portfolio company, partially offset by **$34.0 million** income from a DataBank secondary sale in the YTD period[218](index=218&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cash and equity-based compensation | $47,002 | $51,661 | $93,112 | $102,845 | | Incentive fee and carried interest compensation allocation (reversal) | $(43,372) | $178,430 | $(65,676) | $171,716 | | Administrative and other expenses | $11,440 | $26,508 | $27,386 | $50,818 | | Interest expense | $4,570 | $3,136 | $8,468 | $8,328 | | Transaction-related costs | $4,208 | $671 | $8,629 | $1,431 | | Depreciation and amortization | $8,585 | $8,097 | $15,811 | $17,264 | | **Total expenses** | $32,433 | $268,503 | $87,730 | $352,402 | - Administrative and other expenses decreased by **$15.1 million** (QoQ) and **$23.4 million** (YoY), largely due to insurance recoveries related to prior litigation costs and lower third-party professional service costs[224](index=224&type=chunk) - Transaction-related costs increased significantly by **$3.5 million** (QoQ) and **$7.2 million** (YoY) due to higher deal activity[226](index=226&type=chunk) - Other gain, net, was **$9.1 million** (QoQ) and **$8.5 million** (YoY) in 2025, driven by unrealized gains in marketable equity securities of consolidated funds and InfraBridge contingent consideration liability[228](index=228&type=chunk)[229](index=229&type=chunk) - Income tax expense was immaterial in all periods due to operating losses and capital loss carryforwards, with a full valuation allowance on deferred tax assets for domestic entities[230](index=230&type=chunk) - Discontinued operations reported net income of **$1.6 million** in Q2 2025, contrasting with net losses in prior periods, including a significant loss in YTD 2024 from a guarantee related to former real estate investments[231](index=231&type=chunk) [Operating Metrics](index=55&type=section&id=Operating%20Metrics) The company's Assets Under Management (AUM) increased to $105.6 billion, and Fee Earning Equity Under Management (FEEUM) grew to $39.7 billion at June 30, 2025, driven by capital raises and deployment | (In billions) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Assets Under Management | $105.6 | $95.6 | | Fee Earning Equity Under Management | | | | DBP Series | $17.3 | $15.9 | | Co-Investment Vehicles | $14.8 | $11.5 | | InfraBridge | $3.7 | $3.7 | | Core, Credit and Liquid Strategies | $2.7 | $3.2 | | Separately Capitalized Portfolio Companies | $1.2 | $1.2 | | **Total FEEUM** | $39.7 | $35.5 | | (In billions) | Six Months Ended June 30, 2025 | | :------------ | :----------------------------- | | Balance at January 1 | $35.5 | | Inflows | $5.4 | | Outflows | $(1.2) | | Market activity | — | | Balance at June 30 | $39.7 | - FEEUM increased by **$4.2 billion (12%)** to **$39.7 billion** at June 30, 2025, primarily due to capital raised for the third flagship fund and deployment of co-invest capital[237](index=237&type=chunk) [Non-GAAP Supplemental Financial Measures](index=56&type=section&id=Non-GAAP%20Supplemental%20Financial%20Measures) This section defines and presents non-GAAP financial measures, Fee-Related Earnings (FRE) and Distributable Earnings (DE), used to assess underlying financial performance, with FRE increasing and DE turning negative in Q2 2025 - Fee-Related Earnings (FRE) is a pre-tax measure reflecting recurring fee revenue net of compensation and administrative expenses, excluding non-cash equity-based compensation and carried interest compensation[243](index=243&type=chunk)[245](index=245&type=chunk) - Distributable Earnings (DE) is an after-tax measure representing net realized earnings, used to assess ongoing operating performance and guide distribution and reinvestment decisions[247](index=247&type=chunk)[248](index=248&type=chunk) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | | Fee-Related Earnings—attributable to Operating Company | $31,975 | $25,968 | | Distributable Earnings, after tax—attributable to Operating Company | $(18,618) | $19,629 | - FRE increased by **$6.0 million (23%)** to **$32.0 million** in Q2 2025, with FRE margin improving to **37%** from **33%** a year ago, driven by higher fee revenue[255](index=255&type=chunk)[257](index=257&type=chunk) - DE was negative **$18.6 million** in Q2 2025, compared to positive **$19.6 million** in Q2 2024, primarily due to a **$40 million** realized principal investment loss from an InfraBridge fund portfolio company[258](index=258&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) The company evaluates its liquidity and cash needs, with primary sources including cash on hand, fees, and available financing; as of June 30, 2025, it had $158 million in corporate cash and $100 million available under its VFN facility - At June 30, 2025, the Company had **$158 million** of available corporate cash and the full **$100 million** available under its Variable Funding Notes (VFN) facility[262](index=262&type=chunk) - The Company's primary liquidity needs include funding operations, general partner commitments, debt payments, dividends, acquisitions, and lease obligations[266](index=266&type=chunk) - Significant liquidity activities in 2025 included **$59.7 million** proceeds from a DataBank secondary sale, **$13.3 million** from an InfraBridge fund liquidation, and a reduction of VFN borrowing capacity from **$300 million** to **$100 million**, saving **$1.0 million** annually in unused fees[267](index=267&type=chunk) | ($ in thousands) | Outstanding Principal | Interest Rate (Per Annum) | Anticipated Repayment Date | Years Remaining to Maturity | | :--------------- | :-------------------- | :------------------------ | :------------------------- | :-------------------------- | | Class A-2 Notes | $300,000 | 3.93% | September 2026 | 1.2 | - As of June 30, 2025, the Company had unfunded equity commitments of **$187 million** to its unconsolidated funds as general partner and general partner affiliate[271](index=271&type=chunk) - The estimated fair value of contingent consideration payable for the InfraBridge acquisition is **$2.3 million**, based on achieving prescribed fundraising targets[273](index=273&type=chunk) - The Company had no liability for carried interest clawback obligations at June 30, 2025[276](index=276&type=chunk) - Operating lease obligations totaled **$37 million** for current offices and **$58 million** for a future office lease commencing in 2026[277](index=277&type=chunk) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | | Cash, cash equivalents and restricted cash—beginning of period | $306,298 | $350,250 | | Net cash generated by (used in): | | | | Operating activities | $127,271 | $(4,483) | | Investing activities | $(68,506) | $(17,227) | | Financing activities | $(25,064) | $(61,920) | | Effect of exchange rates on cash, cash equivalents and restricted cash | $5,022 | $(704) | | Cash, cash equivalents and restricted cash—end of period | $345,021 | $265,916 | [Critical Accounting Policies and Estimates](index=66&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's financial statements rely on critical accounting policies and estimates involving significant management judgment, with no changes since the December 31, 2024, Annual Report on Form 10-K - The Company's financial statements are prepared using critical accounting policies and estimates that require subjective judgment due to inherent uncertainties[296](index=296&type=chunk) - There have been no changes to the Company's critical accounting policies since the filing of its Annual Report on Form 10-K for the year ended December 31, 2024[297](index=297&type=chunk) [Recent Accounting Updates](index=66&type=section&id=Recent%20Accounting%20Updates) Information regarding accounting standards adopted in 2025 and potential future adoptions is detailed in Note 2 to the consolidated financial statements - Recent accounting updates are described in Note 2 to the consolidated financial statements[299](index=299&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates, foreign currency, and equity prices, which can affect fee revenue, principal investment income, and carried interest, with a hypothetical 10% decline in fund investments significantly impacting income - The Company's business is exposed to market risks from interest rates, foreign currency rates, and equity prices, affecting fee revenue, principal investment income, and net carried interest allocation[301](index=301&type=chunk) - A hypothetical **10%** decline in the fair value of fund investments at June 30, 2025, would decrease the OP's share of principal investment income by approximately **$84 million** and carried interest by approximately **$166 million**[303](index=303&type=chunk)[305](index=305&type=chunk) - Foreign currency risk is limited, primarily affecting the InfraBridge advisor subsidiary's operating costs in Pound Sterling[308](index=308&type=chunk) - Interest rate risk is limited to the undrawn VFN revolver[309](index=309&type=chunk) - Equity price risk from marketable equity securities held by consolidated liquid funds is managed through portfolio rebalancing and a long/short equity strategy, with third-party capital reducing the impact on stockholders[310](index=310&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[312](index=312&type=chunk) - There have been no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025[313](index=313&type=chunk) [PART II. OTHER INFORMATION](index=69&type=section&id=PART%20II%2E%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2025, the company is not involved in any material legal proceedings - As of June 30, 2025, the Company was not involved in any material legal proceedings[315](index=315&type=chunk) [Item 1A. Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[316](index=316&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details unregistered sales of equity securities, including the conversion of Class B common stock to Class A and the issuance of Class A common stock for OP unit redemptions in Q2 2025 - In Q2 2025, **149,571** shares of Class B common stock were converted into an equal number of Class A common stock shares[318](index=318&type=chunk) - In Q2 2025, **4,350,000** shares of Class A common stock were issued to satisfy redemption requests by an OP unit holder[319](index=319&type=chunk) [Item 3. Defaults Upon Senior Securities](index=69&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reported period - None[320](index=320&type=chunk) [Item 4. Mine Safety Disclosures](index=69&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[321](index=321&type=chunk) [Item 5. Other Information](index=69&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, none of the company's directors or executive officers adopted or terminated any Rule 10b5-1 trading plans - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter ended June 30, 2025[322](index=322&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including organizational documents, certifications, and XBRL-related files - The report includes exhibits such as the Restated Charter, Amended and Restated Bylaws, Articles Supplementary for preferred stock, and certifications from the CEO and CFO[324](index=324&type=chunk) [SIGNATURES](index=71&type=section&id=SIGNATURES) The Quarterly Report on Form 10-Q was duly signed on August 8, 2025, by Marc C. Ganzi (Chief Executive Officer), Thomas Mayrhofer (Chief Financial Officer), and Tracey Teh (Chief Accounting Officer) - The report was signed by Marc C. Ganzi (CEO), Thomas Mayrhofer (CFO), and Tracey Teh (Chief Accounting Officer) on August 8, 2025[328](index=328&type=chunk)

Financial Data and Key Metrics Changes - The company reported fee revenue of $85 million for the second quarter, representing an 8% increase year-over-year [26] - Fee-related earnings (FRE) grew by 23% to $32 million compared to the same quarter last year [26] - Distributable earnings were negative $19 million due to a $40 million realized loss from an investment [27] - Fee earning equity under management increased to $39.7 billion, a 21% increase from the previous year [29] - The company maintained a strong balance sheet with approximately $1.6 billion in corporate assets [33] Business Line Data and Key Metrics Changes - The company raised $1.3 billion in new fee-earning commitments during the quarter, a 17% increase over the previous year [29] - The flagship DB3 strategy attracted $6.9 billion year-to-date, with a final close expected to exceed $7 billion [9] - The co-investment program saw fee rates increase by 30% year-to-date, averaging about 60 basis points compared to a historical average of 45 basis points [10] Market Data and Key Metrics Changes - The company is experiencing exceptional demand from limited partners (LPs) to invest in the digital economy, raising a total of $2.5 billion year-to-date [6] - The built and under-construction pipeline has grown to over 5.4 gigawatts, a 50% increase from the prior year [6] Company Strategy and Development Direction - The company focuses on three strategic pillars: fundraising, investing, and scaling [5] - New platforms, such as TACNOC and Yonder, have been established to address critical bottlenecks in the AI revolution [7][14] - The company aims to build predictable, recurring revenue for shareholders while addressing the growing demand for power and data center capacity [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the $40 billion FEM target for 2025, driven by strong capital formation and investment strategies [11] - The demand for AI-related infrastructure is expected to continue growing, with significant capital deployment anticipated in the coming years [62] - The company is well-positioned to lead in the digital infrastructure space, with a focus on power solutions and data center capacity [39][62] Other Important Information - The company closed a multibillion-dollar acquisition of Yonder, enhancing its global hyperscale portfolio [15] - The company is committed to addressing the power crunch faced by customers, with a focus on developing power land and on-site dispatchable power solutions [44][46] Q&A Session Summary Question: Evidence of hyperscalers scaling up their focus on inference compute - Management indicated that they are in the early stages of inference workloads, with some customers starting to manifest these workloads in data centers [72][73] Question: How inference demand will drive financial results for Digital Bridge - Management noted that returns for inference workloads are expected to be higher than traditional training workloads, with significant interconnection capabilities being a key factor [79][80] Question: Strength in co-investment and future outlook - Management highlighted the importance of co-investment, noting that they have successfully attracted significant capital for large-scale projects, with expectations to exceed capital formation targets for the year [95][96]

Financial Performance - DigitalBridge reported GAAP net income attributable to common stockholders of $17 million, or $0.10 per share, in Q2 2025[10, 15] - Fee revenues increased by 8% year-over-year to $854 million in Q2 2025[27, 55, 58] - Fee-Related Earnings (FRE) grew by 23% year-over-year to $32 million in Q2 2025, with a FRE margin of 37%[27, 55, 58, 59] - Distributable Earnings (DE) showed a loss of $186 million in Q2 2025, attributed to a $40 million realized loss from an InfraBridge fund investment[10, 55, 58] - Fee-Earning Equity Under Management (FEEUM) increased by 21% year-over-year to $397 billion as of June 30, 2025[29, 55, 56] Capital Formation and Investment - New capital formation reached $13 billion in Q2 2025, driven by new data center co-invest capital formation, and $25 billion YTD[24, 55] - The company committed $500 million in capital from DigitalBridge and ArcLight for the Takanock data center power infrastructure platform[36] - Capital raised since 2024 to accelerate growth, reduce borrowing costs, and retire acquisition-related debt reached $20 billion[39] Strategic Initiatives and Market Trends - Hyperscaler Capex has increased by 50% from $250 billion to $380 billion[42, 43] - The U S hyperscale data center leasing pipeline is approximately 49 GW[50] - DigitalBridge's data center portfolio has a total secured power of 209 GW, with 54 GW built and under construction[102]

[Introduction and Disclaimers](index=1&type=section&id=Introduction%20and%20Disclaimers) This section provides cautionary statements regarding forward-looking information, outlining potential risks and disclaiming future updates [Cautionary Statement Regarding Forward-Looking Statements](index=2&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This statement warns that forward-looking information is subject to risks and uncertainties, potentially causing actual results to differ materially - The presentation includes forward-looking statements subject to known and unknown risks, uncertainties, and contingencies, which may cause **actual results to differ significantly**[4](index=4&type=chunk)[5](index=5&type=chunk) - Factors influencing differences include **market/political difficulties, inflation, interest rates, capital raising ability, investment performance, reliance on digital infrastructure, foreign market exposure, strategic expansion, climate change, data security, and regulatory changes**[5](index=5&type=chunk) - Investors are cautioned not to unduly rely on forward-looking statements, which are current only as of the presentation date, with no obligation for updates[7](index=7&type=chunk) [Second Quarter 2025 Results Overview](index=3&type=section&id=DBRG%20REPORTS%20SECOND%20QUARTER%202025%20RESULTS) This section summarizes DigitalBridge's Q2 2025 financial performance, including GAAP net income, Distributable Earnings, and strategic growth drivers [Key Financial Highlights and Dividends](index=3&type=section&id=Key%20Financial%20Highlights%20and%20Dividends) DigitalBridge reported **$17 million GAAP net income** and an **$18.6 million Distributable Earnings loss** in Q2 2025, alongside dividend declarations and AI-driven growth 2Q 2025 Key Financial Results | Metric | Value | Per Share | | :----- | :---- | :-------- | | GAAP Net Income Attributable to Common Stockholders | $17 million | $0.10 | | Distributable Earnings | ($18.6 million) | ($0.10) | - A cash dividend of **$0.01 per common share** was declared, payable October 15, 2025, along with preferred stock dividends[11](index=11&type=chunk) - CEO Marc Ganzi highlighted a solid quarter with **double-digit fee-related earnings growth**, driven by AI tailwinds and landmark investments like Yondr and Takanock[14](index=14&type=chunk) [GAAP Financial Results Details](index=4&type=section&id=GAAP%20FINANCIAL%20RESULTS) GAAP net income decreased to **$17.0 million** in 2Q25, with total revenues declining significantly due to a **carried interest allocation reversal** GAAP Financial Results (2Q25 vs. 2Q24) | Metric (in thousands) | 2Q24 | 2Q25 | | :-------------------- | :--- | :--- | | Revenues: | | | | Fee revenue | $78,605 | $85,262 | | Carried interest allocation | $288,244 | ($115,074) | | Principal investment income | $15,982 | $20,437 | | Other income | $7,505 | $6,168 | | **Total revenues** | **$390,336** | **($3,207)** | | Net income (loss) attributable to common stockholders | $76,763 | $16,962 | | Net income (loss) attributable to common stockholders per common share-basic | $0.44 | $0.10 | - Total revenues significantly decreased from **$390.3 million in 2Q24** to a **loss of $3.2 million in 2Q25**, primarily due to a **negative carried interest allocation of ($115.1 million)**[16](index=16&type=chunk) [Business Update](index=6&type=section&id=1%20BUSINESS%20UPDATE) This section details DigitalBridge's Q2 2025 business highlights, including financial growth, capital formation, strategic investments, and AI-driven market trends [Second Quarter 2025 Business Highlights](index=7&type=section&id=Second%20Quarter%202025%20Business%20Highlights) DigitalBridge achieved **8% YoY Fee Revenue growth** to **$85 million** and **23% YoY FRE growth** to **$32 million** in 2Q25, with strategic investments in data centers and power infrastructure - Fee Revenues grew **+8% YoY to $85 million** in 2Q25, supported by new Fee-Earning Equity Under Management (FEEUM) activation from the DBP Flagship series[26](index=26&type=chunk) - Fee-Related Earnings (FRE) grew **+23% YoY to $32 million** in 2Q25, demonstrating continued margin improvement as revenues outpaced expenses[26](index=26&type=chunk) - Closed the **multi-billion Yondr data center acquisition** (400MW+ in place, potential for 1GW+) and launched the **Takanock powered-land strategy** for Digital Energy[26](index=26&type=chunk) [Capital Formation Metrics](index=8&type=section&id=CAPITAL%20FORMATION%20METRICS%20POSITIONED%20TO%20ACHIEVE%20TARGETS) Mid-year fundraising is on track with **$2.5 billion in new capital formation YTD** and **FEEUM reaching $39.7 billion**, expecting further growth from DBP Series and new strategies - New capital formation reached **$2.5 billion YTD 2025**, including **$1.3 billion in 2Q25**, aligning with full-year objectives[22](index=22&type=chunk)[28](index=28&type=chunk) - Fee-Earning Equity Under Management (FEEUM) reached **$39.7 billion** as of June 30, 2025, progressing towards the **$40 billion target**[28](index=28&type=chunk) - The co-invest fee rate is **30% higher than average**, indicating strong LP interest in AI infrastructure[27](index=27&type=chunk)[28](index=28&type=chunk) [Investment Activities](index=9&type=section&id=INVEST) DigitalBridge invests in new platforms like Takanock and expands existing portfolio companies, closing the **Yondr acquisition** and securing significant financings for Switch and Vantage - New platform **Takanock** focuses on data center power infrastructure, serving hyperscale data centers[31](index=31&type=chunk) - The **Yondr acquisition** adds **420 MW of current leased capacity** for hyperscale data centers, with **5.2 GW capital raised since 2024** for growth[31](index=31&type=chunk) - Significant debt financings were raised across North America, Europe, and APAC for **Switch and Vantage data center platforms** to accelerate growth and reduce borrowing costs[26](index=26&type=chunk)[31](index=31&type=chunk) [Market Trends and AI Demand](index=10&type=section&id=MARKETS%20RECOVERED%20IN%202Q%20AS%20MACRO%20CONCERNS%20ABATED%20AND%20AI%20DEMAND%20SURGED%20-%20AI%20ROI%20IS%20SQUARELY%20IN%20FOCUS) Markets recovered in 2Q25 due to abating macro concerns and surging AI demand, with **hyperscale CapEx forecasts increasing 50% to $380 billion** for 2025 - The **2025 Hyperscaler CapEx forecast increased by 50%** from **$250 billion to $380 billion**, driven by accelerating AI demand[34](index=34&type=chunk)[35](index=35&type=chunk) - Google's monthly AI token volume **doubled in 90 days to 980 trillion by July 2025**, a **50x increase YoY**, signaling an inflection in compute demand[37](index=37&type=chunk)[38](index=38&type=chunk) - Global data center electricity consumption is forecasted to **double from 416 TWh in 2024 to 946 TWh by 2030**, necessitating massive energy investment[40](index=40&type=chunk) - The U.S. hyperscale data center leasing pipeline is at a **historical high of ~4.9 GW**[40](index=40&type=chunk) [Financial Results](index=13&type=section&id=2%20FINANCIAL%20RESULTS) This section details DigitalBridge's Q2 2025 financial performance, including Fee Revenue, Fee Related Earnings, Distributable Earnings, and FEEUM growth [Second Quarter 2025 Financial Highlights](index=14&type=section&id=SECOND%20QUARTER%202025%20HIGHLIGHTS) DigitalBridge reported **$85.4 million Fee Revenue** (+8% YoY) and **$32.0 million FRE** (+23% YoY) in 2Q25, with a **$18.6 million DE loss** due to a realized fund loss 2Q 2025 Financial Highlights | Metric | Value | YoY Change | | :-------------------------------- | :---------- | :--------- | | Fee Revenue | $85.4 million | +8% | | Fee Related Earnings (FRE) | $32.0 million | +23% | | Distributable Earnings (DE) | ($18.6 million) loss | n/a | | Fee Earning Equity Under Management (FEEUM) | $39.7 billion | +21% | | New Capital Formation (2Q25) | $1.3 billion | n/a | | Available Corporate Cash (June 30, 2025) | $158 million | n/a | - A **Distributable Earnings loss of $18.6 million** in 2Q25 was primarily due to a **$40 million realized loss** from an InfraBridge fund investment, with no 2Q25 cash flow impact[42](index=42&type=chunk) - A **common stock dividend of $0.01 per share** was declared, with **$48.2 million** funded for GP commitments and **$32.7 million** for new initiative seed investments[42](index=42&type=chunk) [Fee-Earning Equity Under Management (FEEUM) Growth](index=15&type=section&id=FEEUM%20GROWTH%20DRIVEN%20BY%20ORGANIC%20FUNDRAISING) FEEUM grew by **$7.0 billion (+21% YoY) to $39.7 billion** as of June 30, 2025, driven by organic capital formation from Co-Invest and DBP series FEEUM Growth (in Billions) | Metric | 2Q24 | 1Q25 | 2Q25 | YoY Growth | | :----- | :--- | :--- | :--- | :--------- | | FEEUM | $32.7 | $37.3 | $39.7 | +21% | | New Capital Formation | $0.1 | $1.2 | $1.3 | +241% | - Growth was driven by organic capital formation from **Co-Invest ($14.8 billion in 2Q25)** and the **DBP Series (collectively $17.3 billion in 2Q25)**[44](index=44&type=chunk)[101](index=101&type=chunk) [Non-GAAP Financial Results](index=16&type=section&id=NON-GAAP%20FINANCIAL%20RESULTS) Non-GAAP Fee Revenue increased **8% YoY to $85.4 million**, FRE grew **23% YoY to $32.0 million** with a **37% margin**, while DE was a **($18.6 million) loss** due to realized investment losses Non-GAAP Financial Results (2Q25 vs. 2Q24) | Metric (in millions) | 2Q24 | 2Q25 | % Change YoY | | :------------------- | :--- | :--- | :----------- | | Fee Revenue | $78.7 | $85.4 | +8% | | Cash Compensation | ($35.6) | ($36.5) | +2% | | Administrative and Other Expenses | ($17.1) | ($16.9) | (1)% | | **Fee Related Earnings (FRE)** | **$26.0** | **$32.0** | **+23%** | | Realized Principal Investment Income (Loss) | $7.6 | ($34.0) | n/a | | **Distributable Earnings (DE)** | **$19.6** | **($18.6)** | **n/a** | | FRE Margin | 33% | 37% | +4 ppts | | FRE Per Basic Share | $0.14 | $0.17 | n/a | | After-tax DE Per Basic Share | $0.11 | ($0.10) | n/a | - The **FRE Margin improved from 33% in 2Q24 to 37% in 2Q25**, indicating enhanced operational efficiency[45](index=45&type=chunk) - Realized Principal Investment Income shifted from a **$7.6 million gain in 2Q24** to a **$34.0 million loss in 2Q25**, significantly impacting DE[45](index=45&type=chunk) [Carried Interest & Principal Investment Income](index=17&type=section&id=CARRIED%20INTEREST%20%26%20PRINCIPAL%20INVESTMENT%20INCOME) DigitalBridge reported a **net carried interest reversal of $11.6 million** in 2Q25, while **net principal investment income increased to $21.5 million**, driven by unrealized gains despite realized losses Carried Interest (in millions) | Metric | 2Q24 | 2Q25 | % Change YoY | | :----- | :--- | :--- | :----------- | | Unrealized Carried Interest Allocation (Reversal) | $288.1 | ($115.1) | n/a | | Realized Carried Interest Allocation | $0.1 | $0.0 | n/a | | Carried Interest - Revenue (GAAP) | $288.2 | ($115.1) | n/a | | Carried Interest Allocation (Reversal), Net | $75.1 | ($11.6) | n/a | Principal Investment Income (in millions) | Metric | 2Q24 | 2Q25 | % Change YoY | | :----- | :--- | :--- | :----------- | | Unrealized Principal Investment Income | $7.8 | $54.2 | +594% | | Realized Principal Investment Income (Loss) | $8.2 | ($33.8) | n/a | | Principal Investment Income (GAAP) | $16.0 | $20.4 | +28% | | Principal Investment Income, Net | $13.7 | $21.5 | +57% | - A **net carried interest reversal of $11.6 million** occurred in 2Q25, a significant shift from a **$75.1 million net allocation in 2Q24**, primarily due to unrealized reversals[48](index=48&type=chunk)[52](index=52&type=chunk) [Financial Profile & FEEUM Progression](index=18&type=section&id=DBRG%20FINANCIAL%20PROFILE%20%26%20FEEUM%20PROGRESSION) LTM Fee Revenue and FRE increased to **$354 million** and **$129 million**, respectively, driven by FEEUM growth from **$37.3 billion to $39.7 billion** in 2Q25 with **$3.4 billion in inflows** LTM Fee Revenue and FRE Profile (in millions) | Metric | 2Q24 LTM | 1Q25 LTM | 2Q25 LTM | | :----- | :------- | :------- | :------- | | LTM Fee Revenue | $292 | $347 | $354 | | LTM FRE | $90 | $122 | $129 | | FRE Margin | 31% | 35% | 36% | FEEUM Roll-forward (in Billions) | Metric | 1Q25 | 2Q25 | | :----- | :--- | :--- | | Beginning Period Balance | $37.3 | $37.3 | | Inflows | $2.0 | $3.4 | | Outflows/Realizations | ($0.3) | ($0.9) | | Market Activity | $0.1 | $0.0 | | End of Period Balance | $37.3 | $39.7 | - FEEUM inflows of **$3.4 billion in 2Q25** indicate strong capital formation, contributing to overall growth[54](index=54&type=chunk) [Balance Sheet Profile](index=19&type=section&id=BALANCE%20SHEET%20PROFILE) Key Corporate Assets increased **7% YoY to $1,584 million**, driven by GP Affiliated Investments, while Key Corporate Liabilities remained flat at **$1,122 million** with **$158 million available cash** Key Corporate Assets (as of 6/30/2025, in millions) | Asset Category | Amount | | :------------- | :----- | | DBP Series | $402 | | DataBank and Vantage SDC | $635 | | Other Funds & Investments | $389 | | **Total GP Affiliated Investments** | **$1,426** | | Available Corporate Cash | $158 | | **Total Key Corporate Assets** | **$1,584** | Key Corporate Liabilities (as of 6/30/2025, in millions) | Liability Category | Amount | Blended Avg. Cost (Per Annum) | | :----------------- | :----- | :---------------------------- | | Corporate Debt | $300 | 3.9% | | Preferred Stock | $822 | 7.1% | | **Total Key Corporate Liabilities** | **$1,122** | n/a | - Available corporate cash stood at **$158 million** as of June 30, 2025, with full availability of a **$100 million revolver**[42](index=42&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) [Executing the Digital Playbook](index=20&type=section&id=3%20EXECUTING%20THE%20DIGITAL%20PLAYBOOK) This section outlines DigitalBridge's strategic initiatives and investments, demonstrating the execution of its long-term 'digital playbook' for digital infrastructure opportunities [New Initiatives Aligned with Long-Term Playbook](index=21&type=section&id=NEW%20INITIATIVES%20ALIGNED%20WITH%20OUR%20LONG-TERM%20PLAYBOOK) New initiatives and investments align with the 'digital playbook,' focusing on establishing, transforming, and scaling platforms through customer-driven investment frameworks and domain expertise - The 'digital playbook' comprises three phases: **Establish Platforms, Transform and Scale, and Follow the Logos**, leveraging capital, operating expertise, and customer-driven investment[63](index=63&type=chunk) - New initiatives and investments in 2025 leverage **deep domain expertise** to execute the digital playbook, focusing on greenfield and strategic M&A[62](index=62&type=chunk)[63](index=63&type=chunk) [Takanock: Digital Power Opportunity](index=22&type=section&id=THE%20DIGITAL%20POWER%20OPPORTUNITY%3A%20DIGITALBRIDGE%20X%20ARCLIGHT) DigitalBridge partnered with ArcLight to launch **Takanock**, committing up to **$500 million** for data center power infrastructure, with a **5.3GW+ generation capacity footprint** in three states - DigitalBridge partnered with ArcLight to launch **Takanock**, committing up to **$500 million** for data center power infrastructure solutions[65](index=65&type=chunk)[67](index=67&type=chunk) - Takanock's model focuses on developing **shovel-ready powered land and onsite power generation** to accelerate hyperscale data center deployment in power-constrained markets[67](index=67&type=chunk) - Takanock boasts a **5.3GW+ generation capacity footprint** in three states, offering faster time to power, fully entitled sites, and elimination of diesel generators[70](index=70&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [Yondr: Data Center Platform Investment](index=24&type=section&id=INVESTING%20IN%20OUR%20LATEST%20DATA%20CENTER%20PLATFORM%20WITH%20EMBEDDED%20POTENTIAL%20TO%20SCALE) DigitalBridge strategically invested in **Yondr**, a hyperscale data center developer with **~1 GW landbank** and **1GW+ development capacity**, implementing a 'Transform & Scale' playbook including divestment and new leadership - Strategic investment in **Yondr**, a global hyperscale data center developer/operator, aims to accelerate growth and meet unprecedented AI demand[76](index=76&type=chunk) - Yondr possesses a **~1 GW landbank** and **1GW+ of development capacity**, strengthening DigitalBridge's global hyperscale portfolio[76](index=76&type=chunk) - The 'Transform and Scale' playbook for Yondr includes divesting EverYondr (India) to focus on Tier 1 markets and appointing new senior leadership like **Aaron Wangenheim (CEO)** and **Sandip Mahajan (CFO)**[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [Switch: Capital Expansion for Growth](index=26&type=section&id=SWITCH%20EXPANDS%20ITS%20BORROWING%20BASE%20%26%20REVOLVING%20CREDIT%20FACILITIES%20TO%20%2410B) Switch expanded its borrowing base and revolving credit facilities to **$10 billion**, raising **$11 billion since 2024** to fund AI growth, reduce costs, and retire bank debt - Switch expanded its borrowing base and revolving credit facilities to **$10 billion** as of July 15, 2025[81](index=81&type=chunk)[83](index=83&type=chunk) - Raised **$11 billion (including debt) since 2024** to fund AI growth, reduce capital costs, and retire **100% of bank debt** from its 2022 take-private transaction[82](index=82&type=chunk)[84](index=84&type=chunk) - Improvements include broadening of instruments, issuer-friendly amendments, and the **first-ever ABS rated under S&P's new data center ABS methodology**[84](index=84&type=chunk) [AI Factories: Building at Unprecedented Scale](index=27&type=section&id=AI%20FACTORIES%3A%20WE%20ARE%20BUILDING%20AT%20UNPRECEDENTED%20SCALE%20FROM%20THE%20CORE%20TO%20THE%20EDGE%20LEVERAGING%20A%20MASSIVE%2C%20GROWING%20POWER%20BANK) DigitalBridge is building AI factories at an unprecedented scale, leveraging its 8 global platforms with **5.4 GW of data center capacity** and **20.9 GW total secured power**, supported by **$43 billion in CapEx** for 2025-2026 - DigitalBridge's **8 global platforms** have **5.4 GW of built and under-construction data center capacity**[88](index=88&type=chunk) - Total secured power across the data center portfolio is **20.9 GW**, forming a significant 'power bank'[88](index=88&type=chunk) - Portfolio CapEx of **$43 billion** is planned for 2025-2026 to support this unprecedented scale of AI infrastructure build-out[88](index=88&type=chunk) [Translating Scale into Shareholder Value](index=28&type=section&id=TRANSLATING%20SCALE%20INTO%20SHAREHOLDER%20VALUE) DigitalBridge expects its data center capacity build-out to generate significant shareholder value through carried interest, potentially translating to over **$1.50 of value per share per GW** at scale - Capacity built and under construction (**5.4 GW**) is expected to generate significant embedded value for shareholders[90](index=90&type=chunk)[91](index=91&type=chunk) Illustrative Value Creation per MW | Metric | Value | | :----- | :---- | | Capex per MW | $10,000,000 | | Original Equity Invested | $5,000,000 | | Net Equity Value per MW (Year 3) | $10,372,000 | | Equity Profit per MW | $5,372,000 | | DBRG Shareholder Value per MW | $290,088 | | DBRG $ Value/Share/GW | $1.55 | - At Gigawatt scale, this translates to **$290 million in potential DBRG shareholder carry**, representing potentially **over $1.50 of value per share per GW**[129](index=129&type=chunk)[130](index=130&type=chunk) [Key Priorities for 2025](index=29&type=section&id=DBRG%202025%3A%20KEY%20PRIORITIES) DigitalBridge delivered strong first-half results with **Management Fee Revenue up 10%+ YoY** and **FRE up 25%+ YoY**, prioritizing 2025 financial metrics, FEEUM growth, new strategies, and M&A for the second half - First half delivered **Management Fee Revenue up 10%+ YoY** and **Fee-Related Earnings (FRE) up 25%+ YoY**[96](index=96&type=chunk) - Second half priorities include delivering **2025 financial metrics (FRE up 10-20% YoY, expanding margins)** and successfully forming capital to take **FEEUM over $40 billion**[96](index=96&type=chunk) - Launch new investment strategies including **digital energy, stabilized data centers, and private wealth**, while evaluating strategic, accretive M&A opportunities[96](index=96&type=chunk) [Q&A Session](index=30&type=section&id=4%20Q%26A%20SESSION) This section presents the question and answer session following the financial results presentation [Supplemental Financial Data](index=31&type=section&id=5%20SUPPLEMENTAL%20FINANCIAL%20DATA) This section provides additional detailed financial metrics, reconciliations, and performance data to supplement the main financial results [Summary Financial Metrics](index=32&type=section&id=SUMMARY%20FINANCIAL%20METRICS) This section summarizes GAAP and Non-GAAP financial metrics, highlighting fluctuating net income, consistent dividends, and growth in FRE and FEEUM despite negative DE in 2Q25 Summary Financial Metrics (2Q25 vs. 2Q24) | Metric (in thousands, except per share) | 2Q24 | 2Q25 | | :-------------------------------------- | :--- | :--- | | GAAP Fee revenue | $78,605 | $85,262 | | Net income (loss) attributable to common stockholders | $76,763 | $16,962 | | Net income (loss) attributable to common stockholders per basic share | $0.44 | $0.10 | | Common dividend per share | $0.01 | $0.01 | | Fee Related Earnings ("FRE") Fee Revenue | $78,688 | $85,371 | | Fee Related Earnings | $25,968 | $31,975 | | FRE per basic share | $0.14 | $0.17 | | Distributable Earnings ("DE") | $19,629 | ($18,618) | | DE per basic share | $0.11 | ($0.10) | | Fee Earning Equity Under Management ("FEEUM") (in billions) | $32.7 | $39.7 | | Total assets | $3,502,420 | $3,408,581 | | Total debt principal | $300,000 | $300,000 | | Available corporate cash | $127,260 | $158,260 | - FEEUM has shown consistent growth, increasing from **$32.7 billion in 2Q24 to $39.7 billion in 2Q25**[99](index=99&type=chunk) - Distributable Earnings per basic share turned **negative in 2Q25 at ($0.10)** compared to **$0.11 in 2Q24**[99](index=99&type=chunk) [FEEUM, Fee Related Earnings & Distributable Earnings Details](index=33&type=section&id=FEEUM%2C%20FEE%20RELATED%20EARNINGS%20%26%20DISTRIBUTABLE%20EARNINGS) This section details FEEUM by strategy and components of FRE and DE, showing FEEUM growth across DBP series and Co-Investment Vehicles, with FRE increasing to **$32.0 million** but DE turning negative due to realized investment losses FEEUM by Strategy (in millions, as of 6/30/25) | Strategy | FEEUM | Blended Fee Rate | | :-------------------------------- | :------ | :--------------- | | DigitalBridge Partners I (DBP I) | $3,569 | 1.10% | | DigitalBridge Partners II (DBP II) | $7,295 | 1.18% | | DigitalBridge Partners III (DBP III) | $6,402 | 1.18% | | Co-Investment Vehicles | $14,842 | 0.43% | | InfraBridge | $3,701 | 1.12% | | Core, Credit and Liquid Strategies | $2,758 | 0.73% | | Separately Capitalized Portfolio Companies | $1,172 | 0.81% | | **Total FEEUM** | **$39,739** | **0.84%** | FRE and DE Components (in thousands, 2Q25) | Metric | Amount | | :-------------------------------------------------------------------------------- | :----- | | Fee revenue | $85,371 | | Cash compensation | ($36,459) | | Administrative and other expenses | ($16,937) | | **Fee Related Earnings (FRE)** | **$31,975** | | Realized principal investment income | ($33,957) | | Interest expense and preferred dividends | ($18,093) | | **Distributable Earnings (DE)** | **($18,618)** | - Realized principal investment income was a significant negative contributor to DE in 2Q25, at **($33.9 million)**[101](index=101&type=chunk) [Fund Performance](index=34&type=section&id=FUND%20PERFORMANCE) This section presents key fund performance metrics, showing strong Net IRRs for **DBP I (9.0%)** and **DBP II (8.0%)**, while **InfraBridge GIF II shows negative Net IRR** Key Fund Performance Metrics (as of June 30, 2025) | Fund | Inception Date | Total Commitments (millions) | Invested Capital (millions) | Total Investment Value (millions) | Net MOIC | Net IRR | | :----- | :------------- | :--------------------------- | :-------------------------- | :-------------------------------- | :------- | :------ | | DBP I | Mar-2018 | $4,059 | $4,825 | $7,540 | 1.4x | 9.0% | | DBP II | Nov-2020 | $8,286 | $8,057 | $10,928 | 1.2x | 8.0% | | SAF | Nov-2022 | $1,110 | $994 | $1,130 | 1.1x | 4.7% | | GIF I | Mar-2015 | $1,411 | $1,504 | $2,438 | 1.4x | 6.6% | | GIF II | Jun-2018 | $3,382 | $3,160 | $2,611 | 0.7x | <0% | | Credit I | Dec-2022 | $697 | $635 | $699 | 1.1x | 6.5% | - **DBP I and DBP II** (Value-Add funds) demonstrate strong performance with **Net MOIC of 1.4x and 1.2x**, and **Net IRRs of 9.0% and 8.0%** respectively[105](index=105&type=chunk) - **InfraBridge GIF II** shows underperformance with a **Net MOIC of 0.7x** and a **negative Net IRR**[105](index=105&type=chunk) [Capitalization](index=35&type=section&id=CAPITALIZATION) As of June 30, 2025, DigitalBridge's capitalization includes **$300 million in Securitized Notes** at **3.933%** and **$821.9 million in total preferred stock** across Series H, I, and J Capitalization (as of June 30, 2025, in thousands) | Instrument | Amount Outstanding | Interest Rate (Per Annum) | | :------------------------------------------ | :----------------- | :------------------------ | | Securitized Notes - Class A-2 Term Notes | $300,000 | 3.933% | | Revolver - Class A-1 Variable Funding Notes (Maximum Available) | $100,000 | Adjusted 1M Term SOFR + 3.00% | | Series H 7.125% Cumulative Redeemable Perpetual Preferred Stock | $209,870 | 7.125% | | Series I 7.15% Cumulative Redeemable Perpetual Preferred Stock | $321,668 | 7.15% | | Series J 7.125% Cumulative Redeemable Perpetual Preferred Stock | $290,361 | 7.125% | | **Total Preferred Stock** | **$821,899** | n/a | - Revolver availability was reduced from **$300 million to $100 million in 2Q25**, reflecting cost savings and strong liquidity[42](index=42&type=chunk)[111](index=111&type=chunk) [GP Affiliated Investments](index=36&type=section&id=GP%20AFFILIATED%20INVESTMENTS) Total GP Affiliated Investments (Consolidated) increased to **$1,667.9 million** in 2Q25, with the Operating Company's share rising to **$1,426.4 million**, driven by DBP Series and DataBank/Vantage SDC GP Affiliated Investments (in thousands) | Category | 2Q24 Consolidated | 2Q25 Consolidated | 2Q24 Operating Company Share | 2Q25 Operating Company Share | | :---------------------------------------------------- | :---------------- | :---------------- | :--------------------------- | :--------------------------- | | DBP Series | $452,604 | $533,397 | $321,917 | $401,722 | | DataBank and Vantage SDC | $674,900 | $640,000 | $670,463 | $635,335 | | Other Funds & Investments | $399,066 | $494,546 | $356,055 | $389,337 | | **Total GP Affiliated Investments** | **$1,526,570** | **$1,667,943** | **$1,348,435** | **$1,426,394** | - **DBP Series investments** saw a notable increase in both consolidated and operating company shares from 2Q24 to 2Q25[113](index=113&type=chunk) [Balance Sheet](index=37&type=section&id=BALANCE%20SHEET) As of June 30, 2025, total assets decreased to **$3,408.6 million**, primarily due to lower investments, while total liabilities also decreased, and stockholders' equity increased to **$2,018.5 million** Balance Sheet (in thousands) | Metric | Dec 31, 2024 | June 30, 2025 | | :------------------------------------------ | :----------- | :------------ | | Cash and cash equivalents | $302,154 | $340,698 | | Investments | $2,492,268 | $2,389,801 | | **Total assets** | **$3,513,318** | **$3,408,581** | | Debt | $296,362 | $297,992 | | Other liabilities | $725,766 | $659,761 | | **Total liabilities** | **$1,022,128** | **$957,753** | | Stockholders' equity | $1,958,582 | $2,018,531 | - Investments decreased by approximately **$102.5 million** from December 31, 2024, to June 30, 2025[115](index=115&type=chunk) - Stockholders' equity increased by **$59.9 million**, indicating an improvement in the company's net worth[115](index=115&type=chunk) [Distributable Earnings & Fee Related Earnings Reconciliation](index=38&type=section&id=DISTRIBUTABLE%20EARNINGS%20%26%20FEE%20RELATED%20EARNINGS) This section reconciles GAAP net income to Distributable Earnings (DE) and Fee Related Earnings (FRE). In 2Q25, DE was **($18.6 million)** and FRE was **$32.0 million**, with key adjustments including unrealized principal investment income/loss and unrealized carried interest DE & FRE Reconciliation (in thousands, 2Q25) | Metric | Amount | | :-------------------------------------------------------------------------------- | :----- | | Net income (loss) attributable to common stockholders | $16,962 | | Net income (loss) attributable to Operating Company | $18,044 | | Adjustments (e.g., unrealized principal investment income, unrealized carried interest, equity-based compensation, depreciation) | ($36,662) | | **Distributable Earnings (After Tax)** | **($18,618)** | | Realized principal investment income | $33,957 | | Interest expense and preferred dividends | $18,093 | | Income tax (benefit) expense | $753 | | **Fee Related Earnings** | **$31,975** | - Unrealized principal investment income (loss) was **($55.4 million)** in 2Q25, a major adjustment from GAAP net income to DE[118](index=118&type=chunk) - Unrealized carried interest, net of associated expense, was **$11.6 million** in 2Q25, also impacting the DE calculation[118](index=118&type=chunk) [Reconciliations](index=39&type=section&id=RECONCILIATIONS) This section provides detailed reconciliations for FRE Fee Revenue, Cash Compensation, Administrative Expenses, DE Realized Principal Investment Income, Carried Interest, and weighted average shares/OP units FRE Fee Revenue Reconciliation (in thousands, 2Q25) | Metric | Amount | | :-------------------------------------------------------------------------------- | :----- | | GAAP Fee Revenue | $85,262 | | Consolidated Funds | $109 | | Incentive Fees | $0 | | **FRE Fee Revenue** | **$85,371** | DE Realized Principal Investment Income Reconciliation (in thousands, 2Q25) | Metric | Amount | | :-------------------------------------------------------------------------------- | :----- | | GAAP Principal Investment Income | $20,437 | | Unrealized Principal Investment (Income) Loss | ($54,256) | | Noncontrolling Interests in Realized Principal Investment Income | ($138) | | **DE Realized Principal Investment Income** | **($33,957)** | FEEUM and DE Weighted Average Basic Shares and OP Units (in thousands, 2Q25) | Metric | Amount | | :-------------------------------------------------------------------------------- | :----- | | GAAP Weighted Average Basic Shares Outstanding | 173,059 | | Weighted Average OP Units | 11,269 | | Weighted Average Unvested Restricted Stock | 4,169 | | **Total Weighted Average Basic Shares and OP Units** | **188,497** | [Appendix](index=42&type=section&id=6%20APPENDIX) This section provides supplementary information, including an illustration of shareholder value creation from data center capacity and definitions of non-GAAP financial measures [Understanding the Value of a MW to DBRG Shareholder](index=43&type=section&id=UNDERSTANDING%20THE%20VALUE%20OF%20A%20MW%20TO%20DBRG%20SHAREHOLDER) This section illustrates how data center capacity build-out translates into shareholder value, showing that **$5 million equity per MW** can yield **$5.4 million equity profit**, potentially **over $1.50 per share per GW** - Simple analysis suggests substantial value creation for DBRG shareholders via carried interest from data center capacity[129](index=129&type=chunk) Illustrative Value Creation per MW | Metric | Value | | :----- | :---- | | Capex per MW | $10,000,000 | | Original Equity Invested | $5,000,000 | | Net Equity Value per MW (Year 3) | $10,372,000 | | Equity Profit per MW | $5,372,000 | | DBRG Shareholder Value per MW | $290,088 | | DBRG $ Value/Share/GW | $1.55 | - At Gigawatt scale, this translates to **$290 million in potential DBRG shareholder carry**, representing potentially **over $1.50 of value per share per GW**[129](index=129&type=chunk)[130](index=130&type=chunk) [Important Note Regarding Non-GAAP Financial Measures](index=44&type=section&id=IMPORTANT%20NOTE%20REGARDING%20NON-GAAP%20FINANCIAL%20MEASURES) This section defines and explains non-GAAP financial measures like Fee Related Earnings (FRE) and Distributable Earnings (DE), used to evaluate financial performance and trends in investment management - FRE and DE are non-GAAP measures supplementing GAAP results, offering insight into underlying financial performance and investment management trends[132](index=132&type=chunk)[133](index=133&type=chunk) - FRE assesses recurring fee revenue, net of compensation and administrative expenses, excluding non-recurring items such as distributed carried interest and placement fees[136](index=136&type=chunk)[138](index=138&type=chunk) - DE represents net realized earnings, excluding unrealized gains/losses, non-cash expenses, and non-core items, to reflect ongoing operating performance and assess amounts available for distribution[141](index=141&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk) [Definitions](index=46&type=section&id=DEFINITIONS) This section defines key terms used in the presentation, including AUM, FEEUM, FRE Margin, GP Affiliated Investments, Operating Company (OP), and OP share - AUM represents the total capital for which services are provided, encompassing third-party capital and general partner capital[146](index=146&type=chunk) - FEEUM represents equity under management that earns management fees and/or incentive fees or carried interest, typically based on NAV or GAV[147](index=147&type=chunk) - FRE Margin % is calculated as FRE divided by FRE fee revenue, indicating operational efficiency[148](index=148&type=chunk)

Company Overview - DigitalBridge manages \$96 billion in AUM and \$36 billion in FEEUM as of December 31, 2024 [34] - The company has over 40 portfolio companies and over 25 years of experience in the digital infrastructure sector [34] - DigitalBridge targets revenue growth of >25% and cash flow metrics to increase >90% in 2024 [55] Financial Performance - Fee revenue increased by 37% from \$744 million in 4Q23 to \$1016 million in 4Q24 [84] - Fee revenue increased by 23% from \$2671 million in 2023 to \$3298 million in 2024 [84] - Fee Related Earnings (FRE) increased by 34% from \$264 million in 4Q23 to \$354 million in 4Q24 [84] - FRE increased by 31% from \$818 million in 2023 to \$1071 million in 2024 [84] - Distributable Earnings (DE) increased by 11% from \$179 million in 4Q23 to \$199 million in 4Q24 [84] - Distributable Earnings (DE) increased by 8% from \$486 million in 2023 to \$525 million in 2024 [84] Future Outlook - The company projects FEEUM to reach approximately \$40 billion in 2025 and \$60-70 billion by 2028 [94] - The company anticipates FRE to grow by 10%-20% in 2025 [94] - The company targets a FRE margin in the mid-40s% by 2028 [87, 94]

Core Insights - Cathexis successfully completed the sale of Yondr Group to DigitalBridge and La Caisse for $5.8 billion, marking a successful exit for Cathexis since founding Yondr in 2018 [1][2] Company Overview - Yondr Group is a global developer, owner, and operator of hyperscale data centers, focusing on meeting the complex capacity demands of major technology companies [2][5] - The company has over 420MW of committed capacity for hyperscalers and additional land for potential capacity exceeding 1GW, positioning it well to benefit from the growing demand for advanced data processing [2] Leadership and Transition - William Harrison, CEO of Cathexis, expressed pride in Yondr's journey and confidence in DigitalBridge and La Caisse as partners for Yondr's next growth phase [3] - New leadership appointments at Yondr include Aaron Wangenheim as CEO and Sandip Mahajan as CFO, tasked with leading the company through its next phase with the new owners [3] Investment Strategy - Cathexis is a private investment holding company with a value-oriented and opportunistic investment strategy, focusing on private equity, growth equity, and venture capital across various sectors including data centers [4]