01—Abstract
Summary
Summary of the 10-Q filed May 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Blackstone's first-quarter 2025 10-Q shows GAAP total revenues of $3.29 billiona, down 11% from $3.69 billion a year earlier, as unrealized investment income fell sharply (unrealized Performance Allocations down 41% and unrealized Principal Investments down 66%).
Net income attributable to Blackstone Inc. declined 27% to $614.9 millionb, and diluted EPS was $0.80 versus $1.11. The headline GAAP decline is largely mark-to-market driven, so investors should focus on the segment and fee metrics, which were healthier: management and advisory fees, net rose 10% to $1.90 billion, Fee-Earning Assets Under Management reached a record $860.1 billion (up $29.4 billion in the quarter), and Total Segment Distributable Earnings grew 11% to $1.62 billion. Fee Related Earnings rose 9% to $1.26 billion.
Balance sheet and liquidity moved in several notable ways. Loans payable increased to $12.45 billionc from $11.32 billion, driven by a $900 million draw on the $4.325 billion revolver, and the company issued $1.0 billion of loans payable during the quarter. Cash and cash equivalents rose to $2.39 billion.
Total Assets Under Management reached $1.17 trillion, and Perpetual Capital grew to $464.4 billiond. Management also disclosed an accrual related to the Kentucky Retirement System litigation, with a court approval decision still pending; an $82.5 million settlement is in process, with Blackstone's portion expected to be covered by insurance. Management flagged meaningful macro uncertainty from U.S. tariffs, slowing U.S. GDP (-0.3% in Q1), and muted realization activity.
Realized performance revenues fell 14% at the segment level in some lines and realizations across the platform were described as expected to remain muted, which is a key watch item for the carry-driven earnings profile. Shareholder returns continued, with $1.44 declared dividends per share year to date and $31.0 million of share repurchases during the quarter.
02—Key points
Key Highlights
- GAAP total revenues fell 11% to $3.29 billion, primarily from a $469.2 million decline in total investment income, which was driven by lower unrealized gains on Corebridge stock and other Credit & Insurance positions.
- Management and advisory fees, net rose 10% to $1.90 billion, while Fee-Earning Assets Under Management hit a record $860.1 billion, up $29.4 billion in the quarter, supporting recurring earnings.
- Total Segment Distributable Earnings grew 11% to $1.62 billion and Fee Related Earnings rose 9% to $1.26 billion, with Credit & Insurance and Private Equity leading the gains.
- Net income attributable to Blackstone Inc. fell 27% to $614.9 million, and diluted EPS declined to $0.80 from $1.11, reflecting lower unrealized performance allocations and principal investment income.
- Loans payable rose to $12.45 billion from $11.32 billion after a $900 million revolver draw and $1.0 billion of new loan proceeds, while cash and equivalents increased to $2.39 billion.
- Total Assets Under Management reached $1.17 trillion (up $40.3 billion), and Perpetual Capital grew to $464.4 billion, adding durable, fee-generating capital.
- A litigation accrual was recorded for the Kentucky Retirement System matter; the $82.5 million settlement awaits court approval, with Blackstone's portion expected to be insurance-covered.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 2, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.29B$3.69B | −10.8% |
| Operating Expenses | $1.89B$1.79B | +5.8% |
| Interest Expense | $118.11M$108.20M | +9.2% |
| Net Income | $614.85M$847.39M | −27.4% |
| EPS (Basic) | $0.80$1.12 | −28.6% |
| EPS (Diluted) | $0.80$1.11 | −27.9% |
| Shares Outstanding (Basic) | 771.80M759.80M | +1.6% |
| Shares Outstanding (Diluted) | 772.43M760.26M | +1.6% |
05—Questions
Frequently Asked Questions
Why did GAAP net income fall so sharply if fee revenue grew?
GAAP results include mark-to-market gains and losses on carried interest and principal investments. Unrealized performance allocations fell 41% and unrealized principal investment income fell 66% versus Q1 2024, which more than offset fee growth. Segment Distributable Earnings, which exclude these unrealized items, rose 11%.
How strong is Blackstone's fee-earning base?
Fee-Earning Assets Under Management reached a record $860.1 billion, up $29.4 billion in the quarter, and Management and Advisory Fees, Net rose 10% year over year to $1.90 billion. Perpetual Capital, a steadier source of fees, grew to $464.4 billion.
Is Blackstone's borrowing increasing, and is liquidity adequate?
Loans payable rose to $12.45 billion from $11.32 billion, driven by a $900 million revolver draw and $1.0 billion of loan proceeds. Cash and equivalents of $2.39 billion, $106.7 million of corporate treasury investments and $6.3 billion of other investments provide liquidity, and the company describes its model as not capital intensive.
What are the main risks management highlighted?
Management cited U.S. tariffs, a 0.3% Q1 U.S. GDP contraction, sticky inflation risk, and muted realization activity. It warned that a prolonged slowdown could hurt fund valuations, credit defaults and fundraising, and that realization timing can cause significant quarter-to-quarter variability.
Did the company disclose any material legal costs?
Yes. Q1 results include an accrual for the Kentucky Retirement System matter, which involves an $82.5 million settlement pending court approval. Management said Blackstone's share is expected to be covered by insurance, and it does not expect other current proceedings to materially affect results.
06—Continue