01—Abstract
Summary
Summary of the 8-K filed November 7, 2025. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc. reported third quarter 2025 results on November 7, 2025, furnished under Item 2.02 as Exhibit 99.1 (not filed).
The headline story is fee-based earnings strength: Fee Related Earnings (FRE) reached a record $1.0 billiona in the quarter ($1.15 per adjusted share), up 3% year-over-year, and $3.6 billion on a last-twelve-months (LTM) basis, up 16%. Total Operating Earnings (TOE) was $1.4 billion ($1.55 per adjusted share), up 12% year-over-year, and Adjusted Net Income (ANI) was $1.3 billion ($1.41 per adjusted share), up 8%. Management has noted that roughly 80% of total segment earnings come from the more durable and recurring portions of the business.
Capital formation was the standout operating metric. KKR raised $43 billionb of new capital in the quarter, the highest quarterly figure in more than four years and the second-highest quarter in the firm's history. Capital invested reached a record $26 billion, and AUM grew 16% year-over-year to $723 billion, while fee-paying AUM rose to $585 billion.
Uncalled commitments (dry powder) stood at a record $126 billionc, supporting future management fee growth. Management also highlighted that $64 billion of committed capital is not yet paying fees, which should become a source of future fee growth once invested or once investment periods begin. GAAP results were more mixed.
GAAP net income attributable to KKR common stockholders was $860 milliond in Q3 2025 (diluted EPS of $0.90), compared with $601 million a year earlier, but GAAP year-to-date net income fell to $1.15 billion from $1.95 billion, reflecting volatility from insurance and investment-related items. Insurance Operating Earnings of $305 million included a $41 million benefit from Global Atlantic's annual actuarial assumption review, and Global Atlantic AUM reached $212 billion. The company also declared a regular quarterly dividend of $0.185 per common share, payable December 2, 2025.
02—Key points
Key Highlights
- Record Fee Related Earnings of $1.0 billion in Q3 2025 ($1.15 per adjusted share), up 3% year-over-year; LTM FRE of $3.6 billion, up 16%.
- Total Operating Earnings of $1.4 billion in Q3 (up 12% YoY) and $4.8 billion LTM (up 15%); about 80% of total segment earnings come from more durable, recurring sources.
- New capital raised of $43 billion in Q3, the highest quarter in over four years and second-highest in KKR's history; LTM new capital raised of $128 billion.
- Record capital invested of $26 billion in Q3, the most active investment quarter in KKR's history.
- AUM of $723 billion (up 16% YoY) and fee-paying AUM of $585 billion (up 16%); perpetual capital of $309 billion, representing 43% of AUM.
- Record $126 billion of uncalled commitments (dry powder), plus $64 billion of committed capital not yet paying fees at roughly 80 bps.
- GAAP net income to KKR common stockholders of $860 million in Q3 (diluted EPS $0.90), but year-to-date net income of $1.15 billion, down from $1.95 billion, reflecting insurance and investment-related volatility.
03—Questions
Frequently Asked Questions
Did KKR's fee-based earnings grow in Q3 2025?
Yes, but the quarterly growth was modest. Fee Related Earnings were a record $1.0 billion, up 3% year-over-year. On a trailing twelve-month basis, FRE grew 16% to $3.6 billion, driven mainly by growth in management fees from organic fee-paying AUM expansion.
Why did GAAP net income year-to-date decline sharply?
GAAP net income attributable to KKR common stockholders was $1.15 billion for the first nine months of 2025, versus $1.95 billion a year earlier. The filing attributes this period's results to items within the insurance segment and investment-related volatility, which are excluded from the non-GAAP fee and operating earnings measures that management emphasizes. Investors should weigh these GAAP figures alongside the non-GAAP segment metrics.
How strong was capital raising and deployment?
Very strong. KKR raised $43 billion of new capital in Q3 and $128 billion over the last twelve months, and deployed a record $26 billion of capital in the quarter. Uncalled commitments reached $126 billion, which provides a pipeline for future fee-earning investments.
What does the Strategic Holdings outlook look like?
Management expects Strategic Holdings Operating Earnings to reach $350 million or more by 2026, $700 million or more by 2028, and $1.1 billion or more by 2030. Q3 2025 Strategic Holdings Operating Earnings were $58 million, up from $7 million a year earlier. These are forward-looking estimates and are not guaranteed.
Is the dividend changing and what was declared?
KKR declared a regular quarterly dividend of $0.185 per share of common stock for Q3 2025, payable December 2, 2025, to holders of record as of November 17, 2025. The Series D Mandatory Convertible Preferred Stock dividend of $0.78125 per share is payable December 1, 2025. Future dividends remain at the discretion of the Board.
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