DigitalBridge (US:DBRG)2025-10-31 20:23Financial Performance - Total revenues for Q3 2025 were $3,818,000, a decrease from $76,125,000 in Q3 2024[14] - Fee revenue increased to $93,300,000 in Q3 2025, up from $76,582,000 in Q3 2024, representing a growth of 22%[14] - Net income attributable to common stockholders for Q3 2025 was $16,753,000, compared to a loss of $883,000 in Q3 2024[14] - The company reported a net loss of $12,804,000 for Q3 2025, down from a net income of $48,332,000 in Q3 2024[16] - Comprehensive income attributable to stockholders for Q3 2025 was $30,494,000, compared to $16,335,000 in Q3 2024[16] - The net income for the nine months ended September 30, 2025, was a loss of $53,343, compared to a net income of $147,494 for the same period in 2024, indicating a significant decline[29] - The company reported contributions from noncontrolling interests of $1,392 during the quarter[22] - The company recognized $100,123 from the sale of equity investments during the nine months ended September 30, 2025, compared to $79,035 in the prior year[29] - For the three months ended September 30, 2025, net income attributable to common stockholders was $16.368 million, compared to a loss of $0.916 million in the same period of 2024[137] - Net income from continuing operations attributable to common stockholders for the three months ended September 30, 2025, was $16.8 million, compared to a loss of $2.2 million in 2024, marking a significant turnaround[187] Assets and Liabilities - Total assets decreased slightly to $3,490,529,000 as of September 30, 2025, from $3,513,318,000 at the end of 2024[12] - Total liabilities decreased to $971,387,000 as of September 30, 2025, from $1,022,128,000 at the end of 2024[12] - The balance of accumulated deficit as of September 30, 2025, was $(6,810,068), a slight improvement from $(6,824,993) at June 30, 2025[27] - The total other liabilities amounted to $643,442,000, a decrease from $725,766,000 as of December 31, 2024, representing a reduction of approximately 11.3%[86] - The liabilities of the consolidated funds rose to $128.7 million at September 30, 2025, compared to $57.7 million at December 31, 2024, marking an increase of approximately 122.1%[171] Equity and Stockholder Information - Stockholders' equity increased to $2,052,087,000 as of September 30, 2025, compared to $1,958,582,000 at the end of 2024[12] - As of September 30, 2025, total stockholders' equity was $2,052,087, an increase from $2,018,531 at June 30, 2025, reflecting a growth of approximately 1.67%[27] - The company declared dividends of $0.01 per common share for Q3 2025, consistent with Q3 2024[14] - The company paid $43,981 in dividends to preferred stockholders and $5,321 to common stockholders during the nine months ended September 30, 2025[29] - The Company has a total of 32,876,000 shares of preferred stock outstanding, with a liquidation preference totaling $821,899,000[101] - As of September 30, 2025, the outstanding shares of Class A common stock increased to 182,615,000 from 174,202,000 as of December 31, 2024, indicating a growth of approximately 4.8%[100] Revenue Sources - Total revenues for the three months ended September 30, 2025, were $93.3 million, an increase from $76.6 million in the same period of 2024, representing a growth of approximately 22.3%[187] - Total fee revenue for the nine months ended September 30, 2025, was $268.701 million, up from $228.142 million in 2024, reflecting an increase of 17.7%[139] - Management fees for the three months ended September 30, 2025, increased to $93.206 million from $76.011 million in 2024, representing a growth of 22.6%[139] - Fee revenue from affiliates decreased to $80.1 million for the three months ended September 30, 2025, down from $103.4 million in the same period of 2024, reflecting a decline of approximately 22.5%[172] Investment and Market Activity - Principal investment income rose to $25,325,000 in Q3 2025, compared to $9,955,000 in Q3 2024, marking a significant increase of 154%[14] - The company received approximately $59.7 million from a secondary sale of equity by its DataBank portfolio company, which included $34.0 million realized principal investment income[206] - The DBP I fund, launched in March 2018, achieved a total gross multiple of invested capital (MOIC) of 1.5x and an internal rate of return (IRR) of 11.2% as of September 30, 2025[208] - The DBP II fund, launched in November 2020, reported a total gross MOIC of 1.4x and an IRR of 10.3%[208] - DigitalBridge Credit provides credit solutions to corporate borrowers in the digital infrastructure sector globally[209] Operational Changes and Future Outlook - The Company has undergone a transformation into an investment manager focused on digital infrastructure, with discontinued operations primarily related to former real estate investments[53] - The company plans to manage its operations as a single reportable segment starting in 2024, consolidating all income and expenses from continuing operations[182] - The Company intends to elect a practical expedient under ASU 2025-05 for estimating expected credit losses, effective January 1, 2026, which is not expected to materially impact consolidated financial statements[58][59] - The FASB issued ASU 2025-06 in September 2025, which modifies accounting for internal-use software, effective January 1, 2028, and the Company is currently evaluating its effects[56][57] Legal and Compliance - The company has no ongoing legal proceedings that are expected to materially affect its financial position as of September 30, 2025[190] - The Company has established a full valuation allowance against its deferred tax assets as of September 30, 2025, due to not meeting the more-likely-than-not threshold for realizability[87]