KKR Gains on Q1 Earnings Beat as Revenues & AUM Rise, Expenses Up Y/Y

Core Insights - KKR & Co. Inc. reported an adjusted net income per share of $1.15 for Q1 2025, exceeding the Zacks Consensus Estimate of$1.13 and up from $0.97 in the prior-year quarter [1] - The company's total revenues reached$1.2 billion, a 21.6% increase year-over-year, driven by higher management fees and transaction fees, surpassing the Zacks Consensus Estimate of $1.19 billion [3] - Total assets under management (AUM) grew 14.8$664.3 billion, with fee-paying AUM increasing 11.7% to $526 billion [4] Financial Performance - KKR's total operating earnings rose 15.6$1.11 billion, supported by a 23% increase in fee-related earnings to $822.6 million [5] - The net loss attributable to the company on a GAAP basis was$185.9 million, contrasting with a net income of $682.2 million in the same quarter last year [2] - Total segment expenses increased by 18.8$377.5 million, reflecting the company's ongoing expansion and operational costs [3] Market Position and Outlook - KKR is expected to leverage its strong fundraising capabilities to capitalize on lucrative investment opportunities in the future [6] - The company is experiencing significant growth in fee-related and total operating earnings, although elevated expenses due to global expansion and a challenging operating environment are concerns [6] - KKR currently holds a Zacks Rank of 5 (Strong Sell), indicating market sentiment towards the stock [7]