10-QPeriod: Q2 FY2025

BlackRock, Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 6, 2025For Securities:BLK

Summary

BlackRock, Inc. (BLK) reported strong financial results for the second quarter and first half of 2025. Total revenue increased significantly, driven by robust growth in investment advisory, administration fees, and technology services, alongside contributions from recent acquisitions like Preqin and GIP. Despite increased expenses related to these acquisitions and a restructuring charge, the company demonstrated improved profitability on an "as adjusted" basis. Assets Under Management (AUM) saw substantial growth, surpassing $12.5 trillion, fueled by positive market performance and significant net inflows, particularly in ETFs and private markets. Key financial highlights include a year-over-year increase in diluted EPS (both GAAP and "as adjusted") for the quarter and half-year periods. The company's balance sheet remains solid, with ample liquidity and prudent capital management. BlackRock continues to execute its growth strategy through strategic acquisitions and organic growth initiatives, positioning itself for continued success in the asset management industry.

Financial Highlights

44 data points
Beta

Revenue

$5.42B

Net Income

$1.59B

29.4% Net Margin

EPS (Diluted)

$10.19

Total Assets

$146.47B

Cash & Equivalents

$9.49B

Free Cash Flow

$1.27B

Financial Statements
Beta
Revenue$5.42B
Operating Expenses$3.69B
Operating Income$1.73B
Net Income$1.59B
EPS (Basic)$10.29
EPS (Diluted)$10.19
Shares Outstanding (Basic)154.87M
Shares Outstanding (Diluted)156.25M

Key Highlights

  • 1Total revenue increased by 13% year-over-year for the three months ended June 30, 2025, reaching $5.42 billion, and by 12% for the six months ended June 30, 2025, totaling $10.70 billion.
  • 2Assets Under Management (AUM) grew to $12.53 trillion as of June 30, 2025, up from $10.65 trillion in the prior year period, driven by market appreciation and net inflows.
  • 3Diluted earnings per share (GAAP) increased to $10.19 for the quarter ended June 30, 2025, up from $9.99 in the prior year quarter.
  • 4The company completed the acquisition of Preqin Holding Limited for approximately $3.2 billion in cash in March 2025, and subsequently acquired HPS Investment Partners in July 2025.
  • 5Operating income (GAAP basis) decreased slightly for the quarter to $1.73 billion but remained strong, with "as adjusted" operating income showing an increase of $218 million to $2.10 billion for the quarter.
  • 6Restructuring charges of $39 million were recognized in the second quarter of 2025 related to organizational changes.
  • 7BlackRock continues to execute its share repurchase program, repurchasing approximately 0.8 million shares for $750 million during the first six months of 2025.

Frequently Asked Questions

BlackRock's revenue growth was primarily driven by increased investment advisory, administration fees, and securities lending revenue, which rose by $579 million year-over-year for the quarter. This growth was fueled by organic base fee expansion, positive market impacts on AUM, and contributions from recent acquisitions like GIP. Additionally, technology services and subscription revenue saw a significant increase of $104 million, boosted by demand for Aladdin and the Preqin acquisition.

The acquisitions of Preqin and GIP had a notable impact on BlackRock's financials. Preqin, acquired in March 2025 for $3.2 billion, contributed approximately $60 million to technology services revenue in the second quarter. The GIP acquisition contributed approximately $240 million in fees in the second quarter. These acquisitions, along with the subsequent acquisition of HPS (announced in July 2025), are expected to enhance BlackRock's growth in private markets and credit offerings. However, these integrations also resulted in increased expenses, including acquisition-related costs and retention-related deferred compensation, impacting GAAP operating income.

As of June 30, 2025, BlackRock's AUM reached a record $12.53 trillion, an increase of $1.9 trillion from June 30, 2024. This growth was driven by a combination of net market appreciation of $969 billion, net inflows of $655 billion across various product types, the positive impact of foreign exchange movements of $203 billion, and the inclusion of AUM from the GIP acquisition. ETFs, in particular, saw substantial net inflows of $432 billion over the twelve months ended June 30, 2025.

While total expenses increased by 23% year-over-year in the second quarter of 2025 to $3.69 billion, primarily due to higher employee compensation, acquisition-related costs, and a $39 million restructuring charge, BlackRock's 'as adjusted' profitability metrics show resilience. 'As adjusted' operating income increased by 16% for the quarter to $2.10 billion, and 'as adjusted' diluted EPS rose by 16% to $12.05, indicating effective cost management and operational efficiency when excluding non-recurring or non-cash items.