Revenue reached $1.5 billion in 2026Q1, though gross margins remain highly sensitive to performance fee cycles, swinging from 39.6% in 2025Q1 to 96.1% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 6.31B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 4.46B | 4.84B | 2.15B | 2.15B | 1.56B | 3.05B | 996.79M | 1.11B | 388.08M | 965.83M | 806.65M | 399.99M | 147.52M | 144.75M | 45.33M | 6.18M |
| Gross Margin % | 70.73% | 74.79% | 55.42% | 59.07% | 50.95% | 72.4% | 56.51% | 62.99% | 40.49% | 65.26% | 64.31% | 49.11% | 24.43% | 30.24% | 13.57% | 0.23% |
| Gross Profit Growth % | - | 124.76% | 0.37% | 37.79% | -48.95% | 205.93% | -10.37% | 186.56% | -59.82% | 19.73% | 101.67% | 171.15% | 1.91% | 219.35% | 633.33% | - |
| Operating Expenses | 3.02B | 3.08B | 1.21B | 1.31B | 1.25B | 2.25B | 683.23M | 809.45M | 299.98M | 1.06B | 623.86M | 354.59M | 403.67M | 468M | 469.81M | 267.13M |
| OpEx % of Revenue | - | 47.57% | 31.07% | 36.1% | 40.93% | 53.36% | 38.73% | 45.85% | 31.3% | 71.29% | 49.73% | 43.54% | 66.84% | 97.77% | 140.64% | 9.98% |
| Selling, General & Admin | 1.12B | 0 | 1.19B | 1.27B | 1.21B | 2.18B | 663.12M | 767.4M | 246.22M | 676.45M | 547.62M | 336.48M | 336.87M | 332.76M | 353.31M | 189.03M |
| SG&A % of Revenue | - | - | 30.53% | 34.9% | 39.74% | 51.87% | 37.59% | 43.47% | 25.69% | 45.71% | 43.66% | 41.31% | 55.78% | 69.52% | 105.77% | 7.06% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 1.44B | 1.76B | 946.09M | 834.03M | 306.36M | 802.01M | 313.56M | 302.64M | 88.1M | -89.26M | 182.78M | 45.4M | -256.15M | -323.24M | -424.49M | -260.95M |
| Operating Margin % | 22.9% | 27.22% | 24.35% | 22.96% | 10.03% | 19.04% | 17.77% | 17.14% | 9.19% | -6.03% | 14.57% | 5.57% | -42.42% | -67.53% | -127.07% | -9.75% |
| Operating Income Growth % | - | 86.17% | 13.44% | 172.24% | -61.8% | 155.78% | 3.61% | 243.52% | 198.7% | -148.83% | 302.59% | 117.72% | 20.76% | 23.85% | -62.67% | - |
| EBITDA | 1.9B | 2B | 1.1B | 1.07B | 647.7M | 915.3M | 354.81M | 342.1M | 116.62M | -56.45M | 220.24M | 100.68M | -220.02M | -273.71M | -410.31M | -241.38M |
| EBITDA Margin % | 30.09% | 30.96% | 28.44% | 29.34% | 21.2% | 21.73% | 20.11% | 19.38% | 12.17% | -3.81% | 17.56% | 12.36% | -36.43% | -57.18% | -122.83% | -9.02% |
| EBITDA Growth % | 29.41% | 81.35% | 3.65% | 64.54% | -29.24% | 157.97% | 3.71% | 193.36% | 306.58% | -125.63% | 118.76% | 145.76% | 19.62% | 33.29% | -69.98% | - |
| D&A (Non-Cash Add-back) | 190.21M | 241.93M | 158.58M | 231.71M | 341.34M | 113.29M | 41.25M | 39.46M | 28.52M | 32.81M | 37.45M | 55.27M | 36.13M | 49.53M | 14.18M | 19.57M |
| EBIT | 2.23B | 2.05B | 2.25B | 2.19B | 993.52M | 1.36B | 690.7M | 722.6M | 428.68M | 297.81M | 407.35M | 179.25M | 1.23B | 1.42B | 1.72B | 1.29B |
| Net Interest Income | -213.09M | -96.59M | -1.9M | 153.94M | 113.21M | 152.88M | 160.5M | 105.69M | 100.56M | 46.82M | 34M | 33.65M | 270.09M | 698.13M | 956.96M | 1.1B |
| Interest Income | 554.8M | 670.87M | 976.4M | 1.01B | 595.93M | 447.68M | 471.72M | 403.11M | 344.9M | 194.76M | 143.44M | 131.42M | 945.08M | 1.24B | 1.42B | 1.43B |
| Interest Expense | 767.89M | 767.46M | 978.3M | 860.88M | 482.72M | 294.81M | 311.22M | 297.42M | 244.34M | 147.95M | 109.43M | 97.77M | 674.99M | 543.91M | 458.06M | 333.91M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 1.46B | 1.29B | 1.28B | 1.33B | 510.81M | 1.07B | 379.48M | 425.18M | 184.34M | 149.86M | 297.92M | 81.48M | 556.91M | 872.64M | 1.26B | 952.94M |
| Pretax Margin % | 23.13% | 19.89% | 32.83% | 36.7% | 16.72% | 25.3% | 21.51% | 24.08% | 19.23% | 10.13% | 23.75% | 10% | 92.22% | 182.31% | 377.75% | 35.59% |
| Income Tax | 240.87M | 198.53M | 164.62M | 172.97M | 71.89M | 147.38M | 54.99M | 52.38M | 32.2M | -23.05M | 11.02M | 19.06M | 11.25M | 59.26M | 26.15M | 29.57M |
| Effective Tax Rate % | 16.51% | 15.43% | 12.91% | 12.98% | 14.07% | 13.83% | 14.49% | 12.32% | 17.47% | -15.38% | 3.7% | 23.4% | 2.02% | 6.79% | 2.07% | 3.1% |
| Net Income | 622.78M | 527.36M | 463.74M | 474.33M | 167.54M | 408.84M | 152.14M | 148.88M | 57.02M | 76.18M | 111.81M | 19.38M | 34.99M | 180.48M | 220.65M | 97.35M |
| Net Margin % | 9.87% | 8.15% | 11.94% | 13.06% | 5.48% | 9.71% | 8.62% | 8.43% | 5.95% | 5.15% | 8.91% | 2.38% | 5.79% | 37.71% | 66.05% | 3.64% |
| Net Income Growth % | 42.22% | 13.72% | -2.23% | 183.11% | -59.02% | 168.72% | 2.19% | 161.11% | -25.15% | -31.87% | 476.98% | -44.62% | -80.61% | -18.2% | 126.66% | - |
| Net Income (Continuing) | 1.22B | 1.09B | 1.11B | 1.16B | 438.92M | 918.3M | 324.49M | 372.8M | 152.14M | 172.91M | 286.9M | 62.42M | 545.66M | 813.38M | 1.24B | 923.37M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 4.36B | 4.43B | 3.28B | 2.58B | 2.21B | 1.99B | 1.28B | 1.09B | 806.42M | 886.67M | 785.65M | 744.99M | 6.48B | 7.15B | 6.5B | 7.34B |
| EPS (Diluted) | 2.78 | 1.96 | 2.07 | 2.42 | 0.87 | 2.15 | 0.87 | 1.06 | 0.30 | 0.62 | 1.20 | 0.23 | 0.43 | 2.24 | 2.34 | 1.22 |
| EPS Growth % | 37.35% | -5.31% | -14.46% | 178.16% | -59.53% | 147.13% | -17.92% | 253.33% | -51.61% | -48.33% | 421.74% | -46.51% | -80.8% | -4.27% | 91.8% | - |
| EPS (Basic) | - | 1.96 | 2.07 | 2.46 | 0.87 | 2.25 | 0.89 | 1.11 | 0.30 | 0.62 | 1.22 | 0.23 | 0.43 | 2.39 | 2.34 | 1.29 |
| Diluted Shares Outstanding | 224.03M | 217.36M | 198.05M | 195.77M | 175.51M | 180.11M | 149.51M | 119.88M | 96.02M | 81.84M | 82.94M | 80.67M | 80.36M | 94.17M | 94.17M | 80.1M |
| Basic Shares Outstanding | 224.03M | 217.36M | 198.05M | 184.52M | 175.51M | 163.7M | 135.07M | 107.91M | 96.02M | 81.84M | 80.75M | 80.67M | 80.36M | 80.44M | 94.17M | 75.46M |
| Dividend Payout Ratio | - | 333.11% | 282.68% | 217.29% | 499.2% | 145.17% | 293.66% | 217.4% | 274.55% | 343.48% | 179.47% | 1123.75% | 942.87% | 232.81% | 104.52% | 266% |
Performance fee volatility risk
As evidenced by the quarterly income statement data, Ares Management experienced significant revenue expansion, reaching $1.5 billion in 2026Q1, which suggests that the firm is successfully capturing performance-related earnings alongside its core management fee base despite the inherent lumpiness of private market exit environments.
The trajectory of top-line growth appears heavily influenced by the timing of fund realizations, which can create substantial quarter-over-quarter variance. Investors should monitor whether this growth is sustainable through organic AUM accumulation or if it remains overly dependent on favorable market conditions for asset exits.
Based on reported financial figures, the firm's gross margin fluctuated significantly from 39.6% in 2025Q1 to 96.1% in 2026Q1, indicating that the underlying profitability of the asset management platform is highly sensitive to the composition of revenue between recurring management fees and volatile performance-based income.
This margin volatility suggests that the firm's cost structure is not perfectly aligned with its revenue recognition patterns. The wide swings in profitability warrant further investigation into the specific fund-level performance triggers that drive these periodic margin expansions.
According to the provided income statement data, operating margins have remained inconsistent, ranging from 6.8% to 29.3% over the last ten quarters, which implies that the firm's ability to scale operating income is frequently offset by the variable nature of its compensation and administrative overhead.
The lack of consistent operating leverage suggests that the firm must reinvest a substantial portion of gross profit to retain the specialized talent necessary for its direct lending operations. This dynamic may limit the firm's ability to achieve the high operating margins seen in more passive asset management models.
As reported in financial statements, the net income margin has shown notable volatility, dipping as low as 3.1% in 2025Q4, which suggests that non-operating items and potential accounting adjustments are significantly obscuring the underlying cash-generating capability of the core management business.
The discrepancy between operating income and net income suggests that investors should focus on Fee-Related Earnings rather than GAAP net income to gauge true performance. The impact of stock-based compensation and other non-cash charges appears to be a recurring factor that complicates the assessment of bottom-line quality.
Based on the provided income statement history, the firm's reliance on performance-related earnings creates a risk profile where revenue growth may prove unsustainable if the current exit environment for middle-market credit assets experiences a prolonged period of stagnation or increased default rates.
Short-term revenue spikes may mask underlying pressures on the core management fee base, particularly if institutional capital allocations reach saturation. The firm's valuation may be vulnerable if the market begins to discount the durability of these performance-driven earnings in a higher-for-longer interest rate environment.
Quick answers to the most common questions about buying ARES stock.
Ares Management Corporation (ARES) is profitable, generating $527.4M in net income for the fiscal year ending 2025 with a net profit margin of 8.2%.
Ares Management Corporation (ARES) reported an operating income of $1.76B, resulting in an operating profit margin of 27.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Ares Management Corporation (ARES) generated $4.84B in gross profit for the year, representing a gross profit margin of 74.8%. This demonstrates the company's core pricing power and production efficiency.