10-QPeriod: Q3 FY2025

BlackRock, Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 5, 2025For Securities:BLK

Summary

BlackRock, Inc. reported strong revenue growth in the third quarter of 2025, driven by increased investment advisory, administration fees, and technology services. Acquisitions, notably HPS Investment Partners, contributed significantly to Assets Under Management (AUM) and revenue, bolstering the company's private markets and credit offerings. Despite higher operating expenses due to integration costs and investments in technology, BlackRock maintained a robust operating margin. Diluted earnings per share saw a decrease compared to the prior year, primarily attributed to increased share count from acquisitions and higher non-cash acquisition-related expenses. Key financial highlights include a substantial increase in total revenue to $6.5 billion, up 25% year-over-year, and AUM reaching $13.5 trillion. The company's strategic acquisitions are integrating well, expanding its capabilities and client base. Investors should note the impact of acquisition-related costs on GAAP earnings, while the 'as adjusted' figures provide a clearer view of ongoing operational performance. The company remains committed to capital return to shareholders through dividends and share repurchases.

Financial Highlights

42 data points
Beta

Revenue

$6.51B

Net Income

$1.32B

20.3% Net Margin

EPS (Diluted)

$8.43

Total Assets

$162.68B

Cash & Equivalents

$10.00B

Free Cash Flow

$1.34B

Financial Statements
Beta
Revenue$6.51B
Operating Expenses$4.55B
Operating Income$1.96B
Net Income$1.32B
EPS (Basic)$8.54
EPS (Diluted)$8.43
Shares Outstanding (Basic)154.92M
Shares Outstanding (Diluted)165.18M

Key Highlights

  • 1Total revenue increased 25% year-over-year to $6.5 billion in Q3 2025.
  • 2Assets Under Management (AUM) grew to $13.5 trillion by September 30, 2025.
  • 3The HPS Investment Partners acquisition contributed significantly to AUM and revenue, enhancing private credit capabilities.
  • 4Employee compensation and benefits expense increased substantially due to acquisitions and retention awards.
  • 5GAAP operating income decreased year-over-year due to acquisition-related expenses, while 'as adjusted' operating income showed strong growth.
  • 6Diluted earnings per share decreased year-over-year, impacted by higher share counts and acquisition costs.

Frequently Asked Questions

BlackRock completed the acquisitions of HPS Investment Partners (July 1, 2025), Preqin Holding Limited (March 3, 2025), and ElmTree Funds (September 2, 2025). These acquisitions contributed to increased AUM, revenue, and expanded service offerings, particularly in private markets and credit. However, they also led to higher operating expenses, including amortization of intangible assets and acquisition-related compensation costs, which impacted GAAP profitability. The 'as adjusted' financial measures exclude these acquisition-related costs, providing a view of ongoing operational performance.

Revenue growth was strong in Q3 2025, driven by organic growth, market performance, and contributions from recent acquisitions, alongside technology services and subscription revenue. While GAAP earnings per share were lower year-over-year due to acquisition-related expenses and a higher share count, the 'as adjusted' earnings per share showed an increase. Management believes that continued organic growth, strategic acquisitions, and the expansion of its technology and private market offerings position the company for sustained future growth.

BlackRock experienced higher operating expenses, particularly in employee compensation and benefits, general and administration, and amortization of intangible assets, largely due to the recent acquisitions and associated integration costs. The company is focusing on managing these expenses while continuing to invest in technology and strategic initiatives. The 'as adjusted' financial results exclude certain acquisition-related costs and restructuring charges to better reflect ongoing operational performance, indicating that core operational efficiency remains a focus.