01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
BlackRock, Inc. (BLK) reported strong revenue growth in its first quarter of 2025, driven by increased investment advisory and administration fees, reflecting positive market performance and organic growth.
Despite a rise in expenses, largely attributed to acquisition-related costs from the Preqin and GIP transactions, the company demonstrated resilience. Assets Under Management (AUM) saw a notable increase, driven by both net inflows and favorable market conditions, particularly in ETFs and long-term products. The company also continues to strategically expand its offerings through key acquisitions, positioning itself for future growth in areas like private markets and credit.
While GAAP net income attributable to BlackRock, Inc. saw a slight decrease compared to the prior year, primarily due to higher acquisition-related expenses and lower nonoperating income, "as adjusted" metrics show robust growth in operating income and diluted earnings per share. This highlights the company's effective management of its core business operations. BlackRock's liquidity position remains strong, supported by significant cash reserves and an undrawn credit facility, enabling continued investment in strategic initiatives and shareholder returns.
02—Key points
Key Highlights
- Total revenue increased by 12% year-over-year to $5.3 billion, driven by higher investment advisory, administration fees, and securities lending revenue, as well as technology services and subscription revenue.
- Assets Under Management (AUM) grew by $33 billion sequentially to $11.58 trillion at March 31, 2025, fueled by positive market movements and net inflows.
- The company completed the acquisition of Preqin for approximately $3.2 billion in cash, aimed at enhancing its private markets data and technology offerings.
- Operating income on a GAAP basis was $1.7 billion, a slight increase from the prior year, though operating margin declined due to increased acquisition-related expenses.
- As adjusted operating income showed significant growth of $257 million to $2.0 billion, reflecting strong core business performance.
- Diluted Earnings Per Share (EPS) on a GAAP basis decreased to $9.64 from $10.48, while "as adjusted" diluted EPS increased to $11.30 from $9.81.
- BlackRock maintained a strong liquidity position with total liquidity resources of $12.8 billion at March 31, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 7, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $5.28B$4.73B | +11.6% |
| Operating Expenses | $3.58B$3.04B | +17.9% |
| Operating Income | $1.70B$1.69B | +0.3% |
| Net Income | $1.51B$1.57B | −4.0% |
| EPS (Basic) | $9.74$10.58 | −7.9% |
| EPS (Diluted) | $9.64$10.48 | −8.0% |
| Shares Outstanding (Basic) | 155.04M148.69M | +4.3% |
| Shares Outstanding (Diluted) | 156.63M150.13M | +4.3% |
05—Questions
Frequently Asked Questions
How did BlackRock's revenue perform in Q1 2025 compared to Q1 2024?
BlackRock's total revenue increased by 12% to $5.3 billion in the first quarter of 2025, up from $4.7 billion in the same period of 2024. This growth was primarily driven by higher investment advisory, administration fees, and securities lending revenue, as well as increased technology services and subscription revenue. Performance fees were lower year-over-year.
What was the impact of the Preqin and GIP acquisitions on BlackRock's financial results?
The acquisitions of Preqin and GIP significantly impacted BlackRock's expenses. While the Preqin acquisition (completed March 3, 2025) contributed to technology services revenue, both acquisitions led to increased acquisition-related costs, including amortization of intangible assets, retention-related compensation, and contingent consideration fair value adjustments. These costs are reflected in higher GAAP expenses and reduced GAAP net income, but are excluded from "as adjusted" metrics.
How did Assets Under Management (AUM) change during the quarter?
Total AUM increased by $33 billion sequentially to $11.58 trillion as of March 31, 2025. This growth was primarily driven by net inflows of $84 billion, particularly into ETFs ($107 billion) and retail products ($13 billion), and favorable foreign exchange movements, which were partially offset by net market depreciation.
What is BlackRock's liquidity position at the end of Q1 2025?
BlackRock maintained a strong liquidity position, with total liquidity resources of $12.8 billion at March 31, 2025. This includes $7.4 billion in cash and cash equivalents (excluding CIPs) and an undrawn credit facility of $5.4 billion. Total liquidity resources decreased from December 31, 2024, primarily due to the Preqin acquisition, dividend payments, and share repurchases.
06—Continue