01—Abstract
Summary
Summary of the 10-Q filed November 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Blackstone's Q3 2025 10-Q shows a quarter dominated by lower investment income rather than weaker core fee businesses.
Total revenues were $3.09 billiona, down 16% year over year, as Investment Income fell to $695 million from $1.66 billion on a $1.6 billion swing in unrealized performance allocations. Net income attributable to Blackstone Inc. was $625 million ($0.80 per diluted share) versus $781 million ($1.02) a year earlier. Management and Advisory Fees, Net rose 15% to $2.06 billion, and Fee Related Earnings grew 26% at the segment level to $1.48 billion, reflecting higher base management fees across Private Equity and Credit & Insurance and crystallized performance revenues in BXPE and BIP.
Balance sheet and capital activity was active. Total assets reached $46.6 billion and total assets under management rose to $1.24 trillionb, up 10% year to date, with Perpetual Capital at $500.6 billion. Blackstone paid $3.25 per share in dividends declared through the first three quarters of 2025 and repurchased only $93.7 million of stock year to date, leaving $1.7 billion authorized.
Subsequent to quarter end, the company amended its revolving credit facility to $4.325 billionc with a 2030 maturity, issued $1.2 billion of senior notes, and repaid the $550 million revolver balance. Investors should note the sensitivity of reported earnings to fund valuations and the timing of realizations, as well as a continuing legal matter (the Kentucky Retirement System litigation) for which an accrual has been recorded and a settlement was terminated in May 2025. Clawback exposure and tax receivable agreement obligations of about $2.1 billion remain significant long-term liabilities.
02—Key points
Key Highlights
- Total revenues fell 16% to $3.09 billion in Q3 2025, driven by a $1.6 billion decline in unrealized investment income, while realized investment income rose $640 million.
- Management and Advisory Fees, Net grew 15% to $2.06 billion, led by Private Equity (up 30%) on fee holiday expirations and deal activity in BXCM.
- Fee Related Earnings rose 26% to $1.48 billion at the segment level, supported by Fee Related Performance Revenues of $453 million, mainly from BXPE, BIP and BREIT.
- Diluted EPS was $0.80 versus $1.02 a year ago; net income attributable to Blackstone Inc. declined 20% to $625 million.
- Total assets under management reached $1.24 trillion (up $114.6 billion year to date), and Perpetual Capital rose to $500.6 billion.
- Dividends declared were $3.40 per share year to date, versus $2.59 a year earlier, while share repurchases were modest at $93.7 million year to date.
- Subsequent events include a $4.325 billion revolver extended to October 2030, $1.2 billion of new senior notes issued November 3, 2025, and repayment of the $550 million revolver balance on November 5, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 7, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.09B$3.66B | −15.7% |
| Operating Expenses | $1.75B$1.90B | −7.7% |
| Interest Expense | $126.29M$111.34M | +13.4% |
| Net Income | $624.92M$780.84M | −20.0% |
| EPS (Basic) | $0.80$1.02 | −21.6% |
| EPS (Diluted) | $0.80$1.02 | −21.6% |
| Shares Outstanding (Basic) | 782.63M768.23M | +1.9% |
| Shares Outstanding (Diluted) | 782.68M768.28M | +1.9% |
05—Questions
Frequently Asked Questions
Why did reported earnings decline even though fee revenues grew?
Reported GAAP revenues and net income are heavily influenced by unrealized performance allocations, which swung from a $1.15 billion gain in Q3 2024 to a $216 million loss in Q3 2025. Management and Advisory Fees and Fee Related Earnings both grew, but the unrealized carry decline outweighed them in the GAAP results.
How strong is the fee-related business?
Fee-related metrics were solid. Management and Advisory Fees, Net rose 15% in the quarter and Fee Related Earnings grew 26%. Base management fees increased across Private Equity and Credit & Insurance, and Fee-Earning Assets Under Management reached $906 billion, up 10% year to date.
What are the main risks flagged in the filing?
Key risks include the valuation sensitivity of performance revenues and carried interest, potential clawback obligations (about $634 million accrued, with a theoretical maximum of $8.2 billion if all carry fund investments were worthless), the unresolved Kentucky Retirement System litigation, and the $2.1 billion of expected future tax receivable agreement payments.
How is Blackstone managing its capital structure and liquidity?
Blackstone had $2.4 billion of cash and $11.8 billion of borrowings at quarter end. It amended its revolver to $4.325 billion with a 2030 maturity, issued $1.2 billion of senior notes in November 2025, and repaid the $550 million revolver balance, which improves the maturity profile of its debt.
Are shareholder returns on track?
Dividends are the primary return vehicle. Management targets a quarterly dividend of about 85% of Distributable Earnings, and $1.29 per share was paid in respect of Q3 2025. Buybacks were limited in 2025, with $1.7 billion of authorization remaining as of September 30, 2025.
06—Continue