Alexander Blostein's questions to BlackRock Inc (BLK) leadership • Q2 2025
Question
Alexander Blostein of Goldman Sachs questioned BlackRock's profitability outlook, focusing on the adjusted operating margin for the second half of the year and the path to achieving the firm's 45%+ target given recent acquisitions.
Answer
CFO Martin S. Small clarified that the Q2 margin of 43.3% was primarily impacted by lower performance fees. He reaffirmed the long-term target of 45% or greater, stating that controllable expenses remain aligned with organic revenue growth. Small guided for a low-teens percentage increase in 2025 core G&A due to acquisitions but noted a strong base fee entry rate into Q3, up approximately 10% including HPS, which will support profitability.