Apollo Management(US:APO)2025-11-04 11:30Financial Performance - GAAP Net Income attributable to Apollo Global Management, Inc. Common Stockholders was $1.7 billion for Q3 2025, or $2.82 per share[4] - Adjusted Net Income (ANI) totaled $1.4 billion, or $2.17 per share, for the third quarter[4] - Total revenues for Q3 2025 were $9.823 billion, compared to $6.814 billion in Q3 2024, reflecting significant growth[5] - GAAP net income attributable to Apollo Global Management, Inc. common stockholders increased from $787 million in 3Q'24 to $1,462 million in 4Q'24, representing an increase of 86%[58] - Adjusted net income for 4Q'24 was $1,357 million, up from $1,132 million in 3Q'24, reflecting a growth of 20%[58] - The company reported a GAAP income before income tax provision of $2,086 million in 3Q'24, which decreased to $1,724 million in 4Q'24, a decline of 17%[58] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $908 billion, with inflows of $82 billion in Q3 and $219 billion over the last twelve months, representing a 24% year-over-year increase[9] - Total Assets Under Management (AUM) rose by $175 billion or 24% year-over-year, primarily due to $136 billion of inflows from Asset Management and $84 billion from Retirement Services[19] - Nearly 60% of total AUM and over 70% of total Fee-Generating AUM is comprised of perpetual capital, which is highly scalable[19] Earnings and Revenue Growth - Fee Related Earnings (FRE) were a record $652 million, driven by strong growth in third-party management fees and capital solution fees[9] - Spread Related Earnings (SRE) were near-record at $871 million, supported by strong organic growth[9] - Management fees increased to $606 million in Q3 2025, up from $583 million in Q3 2024[5] - Management fees increased by 22% year-over-year, driven by strong contributions from third-party asset management inflows and record gross capital deployment[15] - Fee-related performance fees grew by 28% year-over-year, reflecting sustained growth across various perpetual capital vehicles[15] - Fee-related earnings (FRE) increased by 23% year-over-year, net of continued investments in hiring and infrastructure[15] Share Repurchases and Dividends - The company repurchased $356 million of common stock in Q3 and over $1.2 billion in the last twelve months[9] - The company distributed more than $1 billion in common stock dividends over the last twelve months[9] - The company achieved gross organic inflows of $356 million for share repurchases in Q3, returning a total of $1.5 billion to stockholders over the last twelve months[47] - The average cost of shares repurchased was $138.69, with capital utilized for share repurchases totaling $356.5 million[52] - The share repurchase plan authorization remaining is $0.68 billion[52] Investment Performance - Alternative net investment income increased by 36% year-over-year, contributing to overall growth in the Retirement Services segment[23] - The Principal Investing Income for Q3 2025 was $78 million, reflecting a 35.9% decrease compared to Q3 2024[37] - Performance Fee-Eligible AUM increased by 39% year-over-year to $307 billion, driven by strong growth in performance fee-eligible Credit strategies[41] - The company reported gross inflows of $82 billion during the third quarter, including near-record quarterly organic inflows of $49 billion[22] Retirement Services - Retirement Services segment fixed income and other net investment income reached $3,423 million in 3Q'24, a 22% increase compared to the previous year[23] - The net investment spread for Retirement Services was 1.44% in 3Q'24, reflecting a decrease of 20 basis points compared to the previous quarter[25] - Athene's fixed income portfolio is composed of 97% investment grade assets, with a trailing five-year average annual credit loss of 11 basis points compared to 13 basis points for the industry[31] - In Q3 2025, Athene reported record quarterly FIA and RILA volumes, alongside strong MYGA sales, reflecting continued demand for retirement savings products[32] - The Retirement Services segment saw strong quarterly inflows driven by diversified activity across sub-channels, with record FABN issuances across four different currencies[32] Financial Position and Liabilities - Total assets decreased from $449,543 million in 30.25 to $377,895 million in 4Q'24, a decline of approximately 16%[56] - Total liabilities decreased from $409,746 million in 30.25 to $346,915 million in 4Q'24, a decline of about 15%[57] - Total equity decreased from $39,797 million in 30.25 to $30,964 million in 4Q'24, a decrease of approximately 22%[57] - The company’s interest-sensitive contract liabilities in Retirement Services decreased from $309,737 million in 30.25 to $253,637 million in 4Q'24, a decline of about 18%[57] Strategic Initiatives and Future Outlook - Apollo's investment performance is bolstered by a net investment spread of C%, which measures the cost of funds against investment returns[72] - The firm anticipates continued growth in liquidity and capital management, with expectations of raising new funds in the upcoming fiscal year[73] - Apollo is focusing on expanding its market presence through strategic acquisitions and new product offerings in the alternative investment space[73] - Apollo is actively managing risks associated with inflation and interest rate fluctuations, which are critical to maintaining financial stability[73] - The company is committed to enhancing its operational efficiency, with a focus on reducing other operating expenses by F% in the next fiscal period[72]