KKR Q2 Earnings Surpass Estimates as AUM Rises Y/Y, Stock Gains

Core Insights - KKR & Co. Inc. reported a second-quarter 2025 adjusted net income per share of $1.18, exceeding the Zacks Consensus Estimate of $1.17 and up from $1.09 in the prior-year quarter [1][9] - The company's shares saw a nearly 1% increase in pre-market trading due to better-than-expected results [1] - The results were driven by significant growth in assets under management (AUM) and transaction fees, although rising expenses posed a challenge [1] Financial Performance - Net income attributable to KKR on a GAAP basis was $472.4 million, down from $667.9 million in the same quarter last year [2] - Total segment revenues reached $1.28 billion, a 15.9% increase year-over-year, driven by higher management fees and transaction-related revenues, beating the Zacks Consensus Estimate by 0.4% [3] - Total segment expenses rose by 12.8% to $396.9 million [3] - Total operating earnings grew 13.8% year-over-year to $1.19 billion, while fee-related earnings increased by 17.4% to $886.8 million [5] Assets Under Management - As of June 30, 2025, total AUM increased by 14% year-over-year to $686 billion, with fee-paying AUM rising 14.1% to $556 billion [4] Future Outlook - The company is expected to continue capitalizing on lucrative investment opportunities due to its effective fundraising capabilities, with significant growth in fee-related and total operating earnings supporting its financials [6] - However, ongoing global expansion may keep expenses elevated, and the current challenging operating environment remains a concern [6]