Why is GAAP net income positive for the quarter but negative year to date?

Q2 2026 GAAP net income attributable to common stockholders was $1,336 million ($2.18 basic per share). Year-to-date GAAP results are $(594) million, or $(1.06) per share, because Q1 2026 included a one-time $1.7 billion tax expense from the revocation of ACRA's Bermuda tax election, which led to a full valuation allowance on Bermuda deferred tax assets. GAAP results also swing with Retirement Services investment gains and losses and unrealized performance fees, so management emphasizes non-GAAP measures such as ANI for period-to-period comparisons.

How well covered is the dividend by earnings?

The $0.5625 quarterly dividend equals about $2.25 annualized. Q2 2026 ANI was $2.11 per share, so the quarterly dividend represents roughly 27% of quarterly ANI per share. Year to date, ANI per share is $4.05. Apollo also returned about $1.6 billion to stockholders over the last twelve months through dividends and buybacks, which exceeded $1 billion in dividends alone. Dividends are at the discretion of the board, and the company cautions that future dividends are not assured.

What drove the growth in Fee Related Earnings and what were the risks?

FRE growth of 25% was driven by management fees rising 23% to $1.0 billion, reflecting Athora's acquisition of PIC, increased third-party capital formation, the Bridge Investment Group acquisition, and organic growth at Athene. Capital solutions fees rose 28% to a record $277 million. Fee-related compensation grew 23%, and non-compensation expenses grew 14%, but margin still expanded by about 120 basis points. Realized performance fees and principal investing income remain cyclical and were weak this quarter.

How is the Retirement Services (Athene) business performing?

Athene's SRE reached a record $877 million, up 7% year over year, with $22 billion of gross organic inflows in Q2 driven by retail sales, flow reinsurance, and funding agreements. However, the net spread declined to 1.14% from 1.22% a year earlier, and cost of funds rose 19% year over year. Alternative investment income of $348 million produced a 9% return, below management's 11% long-term expectation, which management said would have added $76 million of income. Athene's fixed income portfolio is 98% investment grade.

What is the outlook for buybacks and balance sheet capacity?

Apollo repurchased $102 million of common stock in Q2, including $73 million to offset dilution and $29 million of opportunistic repurchases. The board approved a $4.0 billion program in February 2026, with $3.03 billion remaining at quarter end. HoldCo and Asset Management debt fell to $5.8 billion from $6.3 billion, and net balance sheet value per share increased to $4.06 from $3.47. Management also noted a record $82 billion of dry powder, of which $62 billion carries future management fee potential, which supports future fee growth.

Apollo Global Management, Inc. 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.

Apollo Global Management reported strong second-quarter 2026 operating results, led by record Fee Related Earnings (FRE) of $785 million^a, up 25% year over year, and record Spread Related Earnings (SRE) of $877 million, up 7%.

Adjusted Net Income (ANI), the company's primary non-GAAP earnings metric, was $1,314 million^b, or $2.11 per share, compared with $1,179 million, or $1.92 per share, in the year-earlier quarter. Total AUM reached $1.05 trillion, up 25% year over year, supported by $60 billion of gross inflows in the quarter and $298 billion over the last twelve months. Gross capital deployment was $111 billion and origination was $74 billion.

GAAP results were positive for the quarter, with net income attributable to common stockholders of $1,336 million^c, or $2.18 basic per share. Year-to-date GAAP results remain negative at $(594) million, or $(1.06) per share, because of a $1.7 billion one-time Bermuda tax charge recorded in the first quarter. Investors should weigh the non-GAAP figures against this volatility, since Retirement Services investment gains and losses and performance-fee timing caused large swings in reported GAAP income.

Principal Investing Income was weak at $16 million^d, reflecting cyclically light realized performance fees of $130 million amid a slow exit environment. Capital returns continued, with a $0.5625 per-share dividend declared for the quarter, payable August 31, 2026. Apollo repurchased $102 million of stock in the quarter and has $3.03 billion remaining under its $4.0 billion program.

Net Balance Sheet Value per share rose to $4.06 from $3.47. The main watch items are the Athene alternative portfolio, which earned a 9% return against management's 11% long-term expectation, and the continued reliance on realized performance fees and Athene's net spread, which declined to 1.14% from 1.22% a year earlier.

02—Key points

Key Highlights

Record FRE of $785 million, up 25% year over year, with FRE margin of 58.5% and FRE per share of $1.26.
Record SRE of $877 million, up 7% year over year, driven by organic growth, though Athene's net spread fell to 1.14% from 1.22%.
ANI of $1,314 million, or $2.11 per share, up roughly 11.5% from $1.92 per share in 2Q'25.
Total AUM of $1.05 trillion, up 25% year over year; Fee-Generating AUM of $858 billion, up 34%; 60% of total AUM is perpetual capital.
Gross inflows of $60 billion in the quarter ($38 billion Asset Management, $22 billion Retirement Services) and $298 billion over the last twelve months; Q2 origination of $74 billion.
Principal Investing Income fell to $16 million from $47 million a year earlier, as realized performance fees dropped 41% to $130 million.
Quarterly dividend of $0.5625 per share declared, payable August 31, 2026 to holders of record on August 19, 2026; $102 million of buybacks in Q2.

03—Questions

Frequently Asked Questions

Why is GAAP net income positive for the quarter but negative year to date?
Q2 2026 GAAP net income attributable to common stockholders was $1,336 million ($2.18 basic per share). Year-to-date GAAP results are $(594) million, or $(1.06) per share, because Q1 2026 included a one-time $1.7 billion tax expense from the revocation of ACRA's Bermuda tax election, which led to a full valuation allowance on Bermuda deferred tax assets. GAAP results also swing with Retirement Services investment gains and losses and unrealized performance fees, so management emphasizes non-GAAP measures such as ANI for period-to-period comparisons.
How well covered is the dividend by earnings?
The $0.5625 quarterly dividend equals about $2.25 annualized. Q2 2026 ANI was $2.11 per share, so the quarterly dividend represents roughly 27% of quarterly ANI per share. Year to date, ANI per share is $4.05. Apollo also returned about $1.6 billion to stockholders over the last twelve months through dividends and buybacks, which exceeded $1 billion in dividends alone. Dividends are at the discretion of the board, and the company cautions that future dividends are not assured.
What drove the growth in Fee Related Earnings and what were the risks?
FRE growth of 25% was driven by management fees rising 23% to $1.0 billion, reflecting Athora's acquisition of PIC, increased third-party capital formation, the Bridge Investment Group acquisition, and organic growth at Athene. Capital solutions fees rose 28% to a record $277 million. Fee-related compensation grew 23%, and non-compensation expenses grew 14%, but margin still expanded by about 120 basis points. Realized performance fees and principal investing income remain cyclical and were weak this quarter.
How is the Retirement Services (Athene) business performing?
Athene's SRE reached a record $877 million, up 7% year over year, with $22 billion of gross organic inflows in Q2 driven by retail sales, flow reinsurance, and funding agreements. However, the net spread declined to 1.14% from 1.22% a year earlier, and cost of funds rose 19% year over year. Alternative investment income of $348 million produced a 9% return, below management's 11% long-term expectation, which management said would have added $76 million of income. Athene's fixed income portfolio is 98% investment grade.
What is the outlook for buybacks and balance sheet capacity?
Apollo repurchased $102 million of common stock in Q2, including $73 million to offset dilution and $29 million of opportunistic repurchases. The board approved a $4.0 billion program in February 2026, with $3.03 billion remaining at quarter end. HoldCo and Asset Management debt fell to $5.8 billion from $6.3 billion, and net balance sheet value per share increased to $4.06 from $3.47. Management also noted a record $82 billion of dry powder, of which $62 billion carries future management fee potential, which supports future fee growth.

04—Continue

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