01—Abstract
Summary
Summary of the 10-Q filed August 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Blackstone's Q2 2025 10-Q shows a quarter driven by strong fee growth and large unrealized investment gains.
Total revenues rose 33% year over year to $3.71 billiona, while GAAP net income attributable to Blackstone Inc. was $764.2 million, up 72%. Management and advisory fees, net increased 14% to $2.04 billion, led by the Private Equity segment, where fee holiday expirations for BCP IX and BETP IV lifted base management fees. Unrealized performance allocations and principal investment gains were the main driver of the GAAP top-line jump, so investors should separate that mark-to-market activity from recurring fee economics.
The segment metrics that management emphasizes point to a healthier fee base. Fee Related Earnings rose 31% to $1.46 billionb in the quarter, and Segment Distributable Earnings reached $1.79 billion, up 26%. Total Assets Under Management ended the quarter at $1.21 trillion, up 4% from the prior year's quarter, with Fee-Earning AUM at $887 billion.
Perpetual Capital reached $484.6 billionc, which supports more durable fee streams. Net accrued performance revenues rose to $6.6 billion. Balance sheet and liquidity remain solid but carry some watch items.
Loans payable rose to $12.0 billiond, reflecting a $750 million revolver draw and the issuance of new senior notes, while cash and equivalents were $2.2 billion. Total equity was $19.6 billion.
The filing also discloses a Kentucky Retirement System litigation settlement that was terminated in May 2025, leaving the matter unresolved, and a material exposure to euro-denominated bonds and cross-currency swaps that drove a $299 million foreign exchange loss in Other Revenue for the six months. Dividends declared were $0.93 per share for the quarter, and a $1.8 billion buyback authorization remained available at quarter end.
02—Key points
Key Highlights
- Total revenues were $3.71 billion in Q2 2025, up 33% year over year, driven primarily by a $909.5 million increase in investment income, mostly unrealized gains.
- Management and Advisory Fees, Net rose 14% to $2.04 billion, with Private Equity up 37% on fee holiday expirations and BXPE/BIP fee-earning asset growth.
- Fee Related Earnings increased 31% to $1.46 billion and Segment Distributable Earnings rose 26% to $1.79 billion, indicating stronger recurring profitability.
- GAAP net income attributable to Blackstone Inc. was $764.2 million ($0.98 per diluted share), up from $444.4 million ($0.58) a year earlier.
- Total AUM reached $1.21 trillion and Perpetual Capital reached $484.6 billion, up $39.8 billion year to date.
- Loans payable rose to $12.0 billion after a $750 million revolver draw and new senior notes; cash and equivalents were $2.2 billion.
- The Kentucky Retirement System litigation settlement was terminated in May 2025 and remains unresolved, while the company accrued a liability for the matter in the first half.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 8, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $3.71B$2.80B | +32.7% |
| Operating Expenses | $1.93B$1.63B | +18.4% |
| Interest Expense | $135.82M$108.62M | +25.0% |
| Net Income | $764.24M$444.41M | +72.0% |
| EPS (Basic) | $0.98$0.58 | +69.0% |
| EPS (Diluted) | $0.98$0.58 | +69.0% |
| Shares Outstanding (Basic) | 782.39M769.19M | +1.7% |
| Shares Outstanding (Diluted) | 782.40M769.23M | +1.7% |
05—Questions
Frequently Asked Questions
Why did GAAP revenue grow so much faster than management fees?
Most of the increase came from unrealized investment income, which rose $588 million in the quarter on higher appreciation in Corporate Private Equity, Strategic Partners funds, and the Corebridge stake. This income is mark-to-market and can reverse, so the fee-based revenue growth of 14% is a better indicator of recurring performance.
How strong is the recurring fee base?
Management and advisory fees, net rose 14% to $2.04 billion for the quarter, and Fee Related Earnings grew 31% to $1.46 billion. Base management fees in Private Equity increased 29%, aided by fee holiday expirations that may not repeat, while Credit & Insurance base fees rose 23% on private corporate credit inflows.
What are the main balance sheet and liquidity considerations?
Loans payable increased to $12.0 billion, including a $750 million revolver balance on a $4.325 billion facility maturing in December 2028. Cash and equivalents were $2.2 billion, and the company reported no material change in market risk. Total equity was $19.6 billion, and the company continued repurchases, retaining $1.8 billion of authorization.
What litigation and FX risks should investors watch?
The Kentucky Retirement System matter, which included an $82.5 million settlement that was terminated in May 2025, remains open, and the company has accrued a liability related to it. Separately, foreign exchange losses on euro-denominated bonds and cross-currency swaps reduced Other Revenue by $363 million year over year for the six months, which can add volatility to GAAP results.
06—Continue