01—Abstract
Summary
Summary of the 10-Q filed May 9, 2025. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc. reported a net loss of $185.9 milliona, or $(0.22) per diluted share, for the first quarter of 2025.
This compares to a net income of $682.2 millionb, or $0.74 per diluted share, in the same period last year. The shift to a net loss was primarily driven by significant net investment-related losses within the Insurance segment, which amounted to $(1.4) billion for the quarter, a substantial increase from $(241.5) million in the prior year's first quarter. These losses were largely attributed to negative realized and unrealized gains on fixed maturity securities and derivative instruments within the Insurance segment's investment portfolio.
Despite the net loss, the Asset Management segment showed strong revenue growth, with total revenues increasing to $2.05 billionc from $1.96 billion in the prior year, driven by higher management and transaction fees, particularly from the Capital Markets business. Fee Related Earnings also saw a notable increase, indicating robust performance in recurring fee-generating activities.
Total Assets under Management ("AUM") grew to $664.3 billiond, up from $637.6 billion at the end of 2024, highlighting continued growth in the firm's managed capital across its diverse business lines. The company also completed a significant issuance of Series D Mandatory Convertible Preferred Stock during the quarter, raising $2.5 billion.
02—Key points
Key Highlights
- KKR reported a net loss of $185.9 million for Q1 2025, a significant decline from a net income of $682.2 million in Q1 2024.
- The Insurance segment recorded substantial net investment-related losses of $(1.4) billion, primarily due to negative realized and unrealized gains on investments and derivatives.
- Asset Management segment revenues grew by 4.8% year-over-year to $2.05 billion, driven by higher management and transaction fees, especially in Capital Markets.
- Fee Related Earnings (FRE) increased by 20.6% to $822.6 million, demonstrating strong recurring revenue generation.
- Total Assets Under Management (AUM) increased by 4.2% to $664.3 billion as of March 31, 2025, indicating continued capital growth.
- KKR issued $2.5 billion of Series D Mandatory Convertible Preferred Stock in March 2025.
- The company is facing legal proceedings, including an ongoing matter in Kentucky and investigations by the DOJ related to HSR filings.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 9, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $3.11B$9.66B | −67.8% |
| Net Income | -$185.92M$682.21M | −127.3% |
05—Questions
Frequently Asked Questions
What was KKR's net income/loss for the first quarter of 2025?
KKR reported a net loss of $185.9 million, or $(0.22) per diluted share, for the first quarter of 2025. This compares to a net income of $682.2 million, or $0.74 per diluted share, in the first quarter of 2024.
What caused the significant decline in profitability from the prior year?
The substantial year-over-year decrease in profitability was primarily driven by significant net investment-related losses within the Insurance segment, which amounted to $(1.4) billion in Q1 2025. These losses were largely due to negative realized and unrealized gains on fixed maturity securities and derivative instruments within the Insurance segment's investment portfolio.
How did the Asset Management segment perform?
The Asset Management segment showed strong performance with total revenues increasing by 4.8% to $2.05 billion, driven by higher management and transaction fees, particularly from the Capital Markets business. Fee Related Earnings (FRE) also increased by 20.6% to $822.6 million, indicating robust recurring revenue generation. Total Assets Under Management (AUM) grew by 4.2% to $664.3 billion as of March 31, 2025.
Did KKR raise any capital during the quarter?
Yes, KKR & Co. Inc. issued $2.5 billion of Series D Mandatory Convertible Preferred Stock in March 2025.
06—Continue