What drove the large increase in Blackstone's GAAP earnings this quarter?

The increase was mainly driven by performance allocations, which rose to $1.14 billion from $654 million a year earlier, and by principal investment income, which increased to $463 million from $42 million. Fee-related revenues also grew, with management and advisory fees up 14% to $2.04 billion. Performance-related income is inherently volatile, so part of this increase may not recur in every quarter.

How much of the growth is recurring versus performance-driven?

Fee Related Earnings, which capture the more recurring management fee stream net of compensation and operating costs, grew 31% to $1.5 billion. This is a more stable indicator than GAAP net income, which includes unrealized performance allocations and investment gains that can swing significantly with market valuations.

What is the outlook for Blackstone's fundraising and capital deployment?

In 2Q'25, inflows were $52.1 billion and capital deployment was $33.1 billion, with $181.2 billion of total dry powder available for future investments. Over the last twelve months, inflows of $211.8 billion exceeded realizations of $97.5 billion, supporting continued growth in fee-earning AUM. The filing does not provide explicit forward guidance, and the forward-looking statements caution that results may differ materially from expectations.

Are there any notable weak spots in the portfolio?

Real Estate has been the weakest area. Opportunistic real estate funds declined 3.6% over the last twelve months, and Core+ funds were down 0.5% over the same period. Real Estate Fee Related Earnings declined 4% year-to-date, reflecting pressure on the segment. Investors should monitor whether real estate valuations stabilize.

Is the dividend and capital return sustainable?

The $1.03 quarterly dividend is covered by 2Q'25 DE of $1.21 per share, with a dividend payout of about 85% of DE per share in the quarter. Over the LTM, Blackstone paid $4.26 per share in dividends against $5.00 of LTM DE per share. The dividend is supported by DE, though performance-related DE can fluctuate, and the company retains a portion of earnings each quarter.

BX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.

Blackstone (BX) reported second quarter 2025 results on July 24, 2025, showing strong growth in earnings and scale.

GAAP net income attributable to Blackstone Inc. was $764 million^a for the quarter (vs. $444 million in 2Q'24), or $0.98 per share diluted, and $1.4 billion year-to-date. Total revenues rose to $3.7 billion from $2.8 billion, driven largely by a sharp increase in performance allocations ($1.14 billion vs. $654 million) and principal investment income. The key non-GAAP measures also grew substantially.

Fee Related Earnings (FRE) reached $1.5 billion^b ($1.19 per share), up 31% year-over-year, and Distributable Earnings (DE) were $1.6 billion ($1.21 per share), up 25%. Total assets under management reached a record $1.21 trillion, up 13% year-over-year, with $52.1 billion of inflows in the quarter and $211.8 billion over the last twelve months. Net Accrued Performance Revenues rose to $6.6 billion ($5.37 per share), supported by broad-based appreciation across most strategies, notably Corporate Private Equity (+5.1% in the quarter, +17.2% LTM).

Real Estate remained weaker, with Opportunistic funds essentially flat in the quarter and down 3.6% over the LTM. For shareholders, the company declared a quarterly dividend of $1.03^c per share, payable August 11, 2025 to holders of record on August 4, 2025, and reported $1.4 billion to be returned in the quarter.

Balance sheet liquidity remained solid at $10.6 billion^d of total cash and corporate treasury investments, with a $4.3 billion revolver and A+/A+ ratings. Because the press release is furnished under Item 2.02 rather than filed, the figures are presented on an unaudited basis, and investors should note that performance-related revenues remain sensitive to market conditions.

02—Key points

Key Highlights

GAAP net income attributable to Blackstone Inc. of $764 million ($0.98/share diluted) in 2Q'25, up from $444 million ($0.58/share) in 2Q'24, a roughly 72% increase.
Fee Related Earnings of $1.5 billion ($1.19/share) in the quarter, up 31% year-over-year; LTM FRE of $5.7 billion ($4.68/share).
Distributable Earnings of $1.6 billion ($1.21/share) in the quarter, up 25% year-over-year; YTD DE of $2.30/share, up 19%.
Record total AUM of $1.21 trillion, up 13% year-over-year, with fee-earning AUM of $887.1 billion (up 10%) and perpetual capital AUM of $484.6 billion (up 16%).
Net Accrued Performance Revenues of $6.6 billion ($5.37/share), up 3% quarter-over-quarter and 6% year-over-year, driven by appreciation in Private Equity and Secondaries.
Quarterly dividend of $1.03/share declared (record date August 4, 2025; payable August 11, 2025), up from $0.82 in 2Q'24; $1.4 billion returned to shareholders in the quarter including dividends and buybacks.
Liquidity of $10.6 billion in total cash and corporate treasury investments and $20.5 billion of cash and net investments ($16.64/share), supported by a $4.3 billion revolver and A+/A+ credit ratings.

03—Questions

Frequently Asked Questions

What drove the large increase in Blackstone's GAAP earnings this quarter?
The increase was mainly driven by performance allocations, which rose to $1.14 billion from $654 million a year earlier, and by principal investment income, which increased to $463 million from $42 million. Fee-related revenues also grew, with management and advisory fees up 14% to $2.04 billion. Performance-related income is inherently volatile, so part of this increase may not recur in every quarter.
How much of the growth is recurring versus performance-driven?
Fee Related Earnings, which capture the more recurring management fee stream net of compensation and operating costs, grew 31% to $1.5 billion. This is a more stable indicator than GAAP net income, which includes unrealized performance allocations and investment gains that can swing significantly with market valuations.
What is the outlook for Blackstone's fundraising and capital deployment?
In 2Q'25, inflows were $52.1 billion and capital deployment was $33.1 billion, with $181.2 billion of total dry powder available for future investments. Over the last twelve months, inflows of $211.8 billion exceeded realizations of $97.5 billion, supporting continued growth in fee-earning AUM. The filing does not provide explicit forward guidance, and the forward-looking statements caution that results may differ materially from expectations.
Are there any notable weak spots in the portfolio?
Real Estate has been the weakest area. Opportunistic real estate funds declined 3.6% over the last twelve months, and Core+ funds were down 0.5% over the same period. Real Estate Fee Related Earnings declined 4% year-to-date, reflecting pressure on the segment. Investors should monitor whether real estate valuations stabilize.
Is the dividend and capital return sustainable?
The $1.03 quarterly dividend is covered by 2Q'25 DE of $1.21 per share, with a dividend payout of about 85% of DE per share in the quarter. Over the LTM, Blackstone paid $4.26 per share in dividends against $5.00 of LTM DE per share. The dividend is supported by DE, though performance-related DE can fluctuate, and the company retains a portion of earnings each quarter.

04—Continue

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