Apollo Management(APO) - 2025 Q4 - Annual Results

Financial Performance - GAAP Net Income attributable to Apollo Global Management, Inc. was $660 million for Q4 2025 and $3.4 billion for FY 2025, translating to $1.07 and $5.58 per share respectively[4] - Adjusted Net Income (ANI) reached $1.5 billion in Q4 2025 and $5.2 billion for FY 2025, or $2.47 and $8.38 per share respectively, reflecting strong performance[4] - Fee Related Earnings (FRE) were $690 million in Q4 2025 and $2.5 billion for FY 2025, representing a 23% growth compared to the previous year[10] - Spread Related Earnings (SRE) totaled $865 million in Q4 2025 and $3.4 billion for FY 2025, supported by strong organic growth and increased alternative investment income[10] - Realized performance fees reached $588 million in Q4 2025, driven by strong investment performance, marking an 83.2% increase compared to Q4 2024[40] - Adjusted net income for 4Q'25 is expected to be $1,540 million, up from $1,360 million in 4Q'24, reflecting a growth of about 13.2%[60] - The company anticipates a total of $2,461 million in GAAP net income for 4Q'25, compared to $1,662 million in 4Q'24, marking an increase of approximately 48%[60] Assets Under Management (AUM) - Total Assets Under Management (AUM) increased to $938 billion, with inflows of $42 billion in Q4 and a record $228 billion for FY 2025, marking a 25% year-over-year growth[10] - Total Assets Under Management (AUM) rose by $187 billion or 25% year-over-year, with $145 billion from Asset Management and $83 billion from Retirement Services[20] - Fee-Generating AUM increased by $141 billion or 25% year-over-year, supported by robust fundraising and the acquisition of Bridge[20] - Performance Fee-Eligible AUM increased by 44% year-over-year to $322 billion, driven by growth in Credit and Equity strategies[44] - Total AUM increased to $938.406 billion, with net flows of $168.014 million for the twelve months ended December 31, 2025[52] - Fee-generating AUM reached $709.139 billion, with net flows of $119.647 million for the same period[52] Capital Management - Share repurchases amounted to $260 million in Q4 2025 and approximately $1.4 billion for FY 2025, including $313 million of opportunistic repurchases[10] - The company distributed over $1 billion in common stock dividends in 2025 and plans to increase the annual dividend by 10% starting Q1 2026[10] - Apollo intends to distribute an annual dividend of $2.25 per share for 2026, a 10% increase from $2.04 per share in 2025[50] - Total capital returned to stockholders over the last twelve months amounted to $1.5 billion through dividends and share repurchases[50] - The company deployed $260 million for share repurchases in Q4 2025 to offset dilution from equity incentive plans[50] - Share repurchase plan authorization remaining is $420 million as of Q4 2025[55] Investment Performance - Fixed income and other net investment income for FY'25 reached $13,021 million, a 20.5% increase from FY'24[24] - Alternative net investment income for FY'25 was $1,299 million, up 38.3% from FY'24[24] - The net investment spread for FY'25 was 1.23%, a decrease of 15 basis points compared to FY'24[26] - The net accrued performance fees receivable increased to $1.84 billion in Q4 2025, up from $1.80 billion in Q3 2025[49] - The company reported unrealized net gains from investment activities of $362 million for FY'25, a significant recovery from a loss of $46 million in FY'24[60] Strategic Initiatives - The company completed the acquisition of Bridge Investment Group Holdings in 2025, enhancing its asset management capabilities[15] - Apollo allocated approximately $180 million of strategic capital for investments supporting future growth in 2025[10] - Third-party capital supported approximately 25% of Athene's record organic new business volume in 2025[53] Market Conditions and Risks - The company anticipates variability in revenues, earnings, and cash flow due to market conditions and geopolitical tensions, which may affect future performance[77] - Apollo's management emphasizes the importance of maintaining financial strength ratings to meet obligations, reflecting a focus on risk management[77] Financial Metrics and Ratios - The average net invested assets increased by 18.2% year-over-year, reaching $289,295 million in 4Q'25[26] - The outflow rate attributable to Athene was calculated at 1.8% for the respective period, based on average net invested assets[76] - The net investment earned rate is a key measure of the cost of policyholder benefits and liabilities, indicating financial performance[73] - The net investment spread measures investment performance plus strategic capital management fees, providing insight into overall cost efficiency[73]