Blackstone(US:BX)2025-08-08 20:06Part I. Financial Information Financial Statements Blackstone's unaudited condensed consolidated financial statements for Q2 2025 show total assets increased to $45.4 billion, quarterly revenue rose to $3.7 billion, and net income reached $1.6 billion Condensed Consolidated Statements of Financial Condition Blackstone's total assets increased to $45.4 billion as of June 30, 2025, driven by investments, while total equity rose to $19.6 billion Condensed Consolidated Statements of Financial Condition (Unaudited) (In Thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $45,373,094 | $43,469,875 | | Cash and Cash Equivalents | $2,235,499 | $1,972,140 | | Investments | $31,135,504 | $29,800,566 | | Total Liabilities | $24,294,214 | $23,974,860 | | Loans Payable | $12,008,870 | $11,320,956 | | Accrued Compensation and Benefits | $6,065,974 | $6,087,700 | | Total Equity | $19,591,751 | $18,693,616 | Condensed Consolidated Statements of Operations Blackstone reported a 33% increase in Q2 2025 total revenues to $3.7 billion, driven by higher investment income, with net income attributable to Blackstone Inc. rising to $764.2 million Q2 and Six Months Ended June 30, 2025 vs 2024 Performance (In Thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $3,711,900 | $2,796,381 | $7,001,358 | $6,484,209 | | Management and Advisory Fees, Net | $2,035,495 | $1,787,313 | $3,939,812 | $3,514,461 | | Total Investment Income | $1,605,665 | $696,139 | $2,775,171 | $2,334,819 | | Total Expenses | $1,932,603 | $1,632,706 | $3,827,035 | $3,423,113 | | Net Income Attributable to Blackstone Inc. | $764,244 | $444,414 | $1,379,096 | $1,291,800 | | Diluted EPS | $0.98 | $0.58 | $1.77 | $1.69 | Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities was $2.0 billion for the six months ended June 30, 2025, with cash at period-end totaling $2.55 billion Cash Flow Summary (Six Months Ended June 30) (In Thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,997,721 | $2,098,407 | | Net Cash Used in Investing Activities | ($69,424) | ($30,136) | | Net Cash Used in Financing Activities | ($1,571,881) | ($2,732,521) | | Net Increase (Decrease) in Cash | $373,257 | ($671,234) | | Cash at End of Period | $2,549,449 | $2,600,829 | Notes to Condensed Consolidated Financial Statements These notes detail significant accounting policies, including revenue recognition and fair value measurements, and disclose key financial structures like investments, borrowings, and clawback obligations - Blackstone's business is organized into four segments: Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing57 - Performance Allocations (carried interest) are calculated at each reporting period as if the underlying investments were realized at their current fair value, and are subject to clawback8182 Clawback Obligations by Segment (June 30, 2025) (In Thousands) | Segment | Blackstone Holdings | Former Personnel | Total | | :--- | :--- | :--- | :--- | | Real Estate | $316,407 | $145,285 | $461,692 | | Private Equity | $23,161 | $15,275 | $38,436 | | Credit & Insurance | $1,478 | $1,599 | $3,077 | | Total | $341,046 | $162,159 | $503,205 | - If all carry fund investments were worthless at June 30, 2025, the potential clawback would be $7.9 billion, a scenario management views as remote255 Unaudited Supplemental Presentation of Statements of Financial Condition This section provides unaudited consolidating statements of financial condition, breaking down the balance sheet into operating partnerships and consolidated funds for clearer insight - As of June 30, 2025, the Consolidated Operating Partnerships held $40.9 billion in total assets, while the Consolidated Blackstone Funds held $5.8 billion in total assets289 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the business environment, key financial measures, and consolidated results, highlighting a 33% rise in Q2 2025 revenues to $3.7 billion and growth in Assets Under Management to $1.21 trillion Our Business Blackstone operates as the world's largest alternative asset manager across four segments: Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing - Blackstone's business is organized into four segments: Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing297 - Revenue is generated from management fees, transaction fees, capital markets services, and performance revenues (carried interest and incentive fees)296 Business Environment Q2 2025 saw a rebound in equity markets, with the S&P 500 returning 10.9%, resilient U.S. GDP growth of 3.0%, and increased capital markets activity - The S&P 500 index delivered a total return of 10.9% in Q2 2025, rebounding from an early-quarter decline317 - The U.S. economy demonstrated resilience with real GDP growth of 3.0% quarter-over-quarter and June CPI inflation moderating to 2.7% year-over-year318320 - The Federal Reserve maintained the federal funds target range at 4.25-4.50% through its July 2025 meeting318 - U.S. IPO and M&A deal volumes were up approximately 50% year-over-year in Q2 2025, indicating increased market transaction activity321 Consolidated Results of Operations Q2 2025 total revenues increased 33% to $3.7 billion, driven by a 131% surge in Investment Income, leading to a 58% rise in Income Before Taxes Consolidated Results of Operations Highlights (In Thousands) | | Q2 2025 | Q2 2024 | % Change | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $3,711,900 | $2,796,381 | 33% | $7,001,358 | $6,484,209 | 8% | | Total Investment Income (Loss) | $1,605,665 | $696,139 | 131% | $2,775,171 | $2,334,819 | 19% | | Total Expenses | $1,932,603 | $1,632,706 | 18% | $3,827,035 | $3,423,113 | 12% | | Income Before Provision for Taxes | $1,915,627 | $1,208,609 | 58% | $3,368,228 | $3,088,263 | 9% | - The increase in Q2 2025 revenues was primarily driven by a $909.5 million increase in Investment Income, which included a $588.2 million rise in Unrealized Investment Income359360 - The increase in Q2 2025 expenses was mainly due to a $215.3 million rise in Total Compensation and Benefits, reflecting higher compensation tied to increased revenues and performance361 Segment Analysis This section details the performance of Blackstone's four business segments, with Private Equity contributing the most to Q2 2025 Segment Distributable Earnings at $751.4 million Total Segment Distributable Earnings (Q2 2025 vs Q2 2024) (In Thousands) | | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Real Estate | $565,870 | $516,511 | | Private Equity | $751,419 | $485,811 | | Credit & Insurance | $395,785 | $354,079 | | Multi-Asset Investing | $72,347 | $62,973 | | Total | $1,785,421 | $1,419,374 | Liquidity and Capital Resources Blackstone maintains strong liquidity with $2.2 billion in cash and a $4.325 billion revolving credit facility, supporting business growth and a $1.8 billion share repurchase program - As of June 30, 2025, Blackstone had $2.2 billion in Cash and Cash Equivalents, $229.5 million in Corporate Treasury Investments, and $6.8 billion in Other Investments532 - The company has a $4.325 billion committed Revolving Credit Facility, of which $750.0 million was outstanding as of June 30, 2025532545 - As of June 30, 2025, Blackstone had remaining investment commitments of $4.7 billion229 - The share repurchase program, authorized for up to $2.0 billion, had $1.8 billion remaining available for repurchases as of June 30, 2025554210 - The company's dividend policy targets paying approximately 85% of its share of Distributable Earnings. A dividend of $1.03 per share was paid for Q2 2025556562 Quantitative and Qualitative Disclosures About Market Risk No material changes occurred in Blackstone's market risks as of June 30, 2025, with predominant exposure remaining in fair value movements of investments - There were no material changes in Blackstone's market risks as of June 30, 2025, compared to December 31, 2024589 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period591 - There were no material changes to the company's internal control over financial reporting during the most recent quarter592 Part II. Other Information Legal Proceedings Blackstone is involved in ongoing legal proceedings, including litigation with the Kentucky Retirement System, but does not expect a material impact on its financial statements - Blackstone is involved in litigation with the Kentucky Retirement System (KRS); a settlement reached in January 2025 was terminated in May 2025, and discussions are ongoing245 - The company does not expect any pending legal proceedings to have a material impact on its condensed consolidated financial statements594 Risk Factors This section directs investors to the company's 2024 Form 10-K for a full discussion of market and geopolitical risk factors - Investors are directed to the Risk Factors section of the company's 2024 Form 10-K for a full discussion of potential risks and uncertainties595 Unregistered Sales of Equity Securities and Use of Proceeds Blackstone repurchased 200,000 shares for $27.8 million in Q2 2025 under a $2.0 billion program, with $1.75 billion remaining available Share Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Apr. 1 - Apr. 30, 2025 | 27,270 | $132.06 | | May 1 - May 31, 2025 | 95,448 | $140.75 | | Jun. 1 - Jun. 30, 2025 | 77,282 | $139.45 | | Total | 200,000 | N/A | - The board of directors authorized a repurchase program of up to $2.0 billion on July 16, 2024, with approximately $1.8 billion remaining available as of June 30, 2025598210 Other Information Eight directors were re-elected to Blackstone Inc.'s board on August 6, 2025, and the 2025 annual stockholders' meeting is scheduled virtually for September 18, 2025 - On August 6, 2025, eight directors were re-elected to the board of Blackstone Inc.603 - The 2025 annual meeting of stockholders is scheduled for September 18, 2025, and will be held in a virtual format604