Total Revenues

21% decline (from $7,040 million in Q1 2024 to $5,548 million in Q1 2025)

APO's total revenues dropped significantly, which may be attributed to subdued market conditions affecting premium generation and transaction fees—a trend consistent with previous period challenges such as the steep decline seen in Retirement Services revenues in FY 2024. This decline suggests that underlying business segments continue to face pressure in generating high-value revenue streams. " "

Net Income

47% decline (from $1,765 million in Q1 2024 to $938 million in Q1 2025)

Net income fell sharply, likely as a direct consequence of the lower revenue base combined with continued cost pressures and adverse adjustments, echoing the earlier impact of macroeconomic headwinds (e.g., interest rate changes and economic uncertainty) noted in previous analyses. The drop reflects how diminished operational performance is constraining profitability compared to prior periods. " "

Operating Cash Flow

Increased by over 1,300% (from $70 million in Q1 2024 to $1,012 million in Q1 2025)

A dramatic surge in operating cash flow is observed, which can be linked to improved working capital management and more favorable adjustments to non-cash items. Compared to Q1 2024, the significant uptick likely reflects better management of operating assets and liabilities that offset lower net income components, a shift that contrasts with previous periods where operating cash flow was much lower. " "

Net Change in Cash & Equivalents

Reversal from a $2,025 million increase in Q1 2024 to a $1,599 million decrease in Q1 2025

The net cash balance reversed dramatically, indicating that despite improved operating cash flows, sizeable cash outflows due to increased investments (e.g., purchases of securities or other acquisitions) and adjustments in financing activities have put pressure on liquidity. This reversal is in line with prior trends where aggressive investment strategies impacted overall cash levels. " "

Earnings per Share (basic)

70% decline (from $2.31 in Q1 2024 to $0.68 in Q1 2025)

EPS declined steeply, a reflection of both the significant drop in net income and a potential increase in shares outstanding. This reduction underscores the impact of the revenue and profitability challenges experienced by the company, akin to the dilution seen in previous periods when lower operating performance eroded per-share earnings. " "

Fee‑Related Earnings (FRE)

FY 2025

no prior guidance

Sustained momentum in global wealth. Continued strength in third‑party credit, particularly in asset‑backed finance and origination platforms. Growth in private equity adjacent businesses, specifically hybrid value and secondaries. Confidence in FY 2025 earnings guidance with anticipated FRE margin expansion over a multiyear period as the business scales. " "

no prior guidance

Spread‑Related Earnings (SRE)

FY 2025

no prior guidance

Target of $3.5 billion for FY 2025, assuming an 11% return on alternatives. Facing headwinds such as 1.5 additional rate cuts, competitive pressure in the retail channel, and higher asset prepayments. Expected mid‑single‑digit growth rate for FY 2025, starting from a rebased $3.2 billion. " "

no prior guidance

Overall Growth

FY 2025

no prior guidance

Aiming for 10% average growth as outlined in their 5‑year plan. "

no prior guidance

Capital Allocation

FY 2025

no prior guidance

Plans to continue deploying capital for share repurchases and strategic investments. Announced acquisition of Bridge Investment Group, expected to close in Q3 2025, subject to conditions. "

no prior guidance

Origination Engine and Capacity Growth

Consistently strong performance was reported across Q2 ( " " ), Q3 ( " " ) and Q4 ( " ) with robust asset origination and discussions on scalability challenges.

Q1 2025 reports strong growth (e.g. $56B originated, 30% YoY increase) with an emphasis on maintaining quality and scalability rather than growing too fast ( " " ).

Steady high performance with an emerging caution on scalability – a controlled expansion is being prioritized.

Spread-Related Earnings and Margin Compression

Repeatedly discussed in Q2 ( " " ), Q3 ( " " ) and Q4 ( " " " ) with concerns over narrowing net spreads due to rate cuts and competition, and proactive hedging measures were highlighted.

In Q1 2025, executives noted further challenges with an 8bps sequential decline in net spread, attributing the downturn partly to extra rate cuts and competitive pressures ( " " ).

Persistent margin compression continues with ongoing challenges stemming from rate cuts and competitive pressure.

Fee Growth and Capital Solutions Trends

Q2 ( " ) and Q3 ( " ) showed robust fee-related earnings and growth in Capital Solutions; in Q4 ( " ) there were hints of deceleration in fee growth rates even amid high performance.

Q1 2025 reported record fee growth (21% YoY increase, $559M FRE) with solid management fees and capital solutions fee outcomes, and no explicit sign of deceleration this period ( " ).

Robust fee growth remains strong, with earlier deceleration concerns not evident in Q1 2025 – indicating a steady expansion trend.

Strategic Partnerships and Product Innovation

Extensive discussions in Q2 ( " " ), Q3 ( " " ), and Q4 ( " " ) emphasized the importance of strategic collaborations, cross-channel partnerships, and innovative product launches such as new funds and tokenized solutions.

Q1 2025 continues this momentum with ambitious initiatives including a major acquisition (Bridge Investment Group), broader product innovation, and expanded collaborations (e.g. partnerships with asset managers and banks) ( " " " ).

Ongoing expansion and innovation: Partnerships and product development are being aggressively leveraged to enhance global reach and create new revenue streams.

Competition and Market Dynamics

Q2 and Q3 discussions ( " " ) and Q4 ( " ) highlighted competitive pressures – especially in retail channels – and the impact on spreads and margins, with firms adjusting funding channels.

Q1 2025 emphasizes continued competitive pressure in retail channels and evolving strategic responses (e.g. shifting to less competitive funding channels and asset mix adjustments) to mitigate margin declines ( " " " " ).

Persistent competitive challenges: Continued pressure affects margins, though tactical responses (price discipline, selective channel use) reflect adaptation in a crowded market.

Interest Rate Sensitivity

Q2 ( " " ), Q3 ( " ) and Q4 ( " " " ) repeatedly analyzed the impact of anticipated rate cuts and the importance of hedging, with a forecast of multiple rate cuts affecting earnings.

In Q1 2025, additional rate cuts (1.5 more than expected) have been noted as a $40M headwind, reflecting ongoing sensitivity and emphasizing strategic liquidity and hedging adjustments ( " " ).

Steady concern over rate sensitivity: Ongoing hedging and cautious positioning continue to mitigate the predictable impact of rate cuts on earnings.

Regulatory Uncertainty in Retirement and Insurance Markets

Q4 2024 ( " ) provided comprehensive discussion of regulatory challenges impacting both retirement and insurance markets, while Q3 ( " ) offered a brief mention; Q2 did not discuss this issue.

Q1 2025 does not mention regulatory uncertainty, indicating a lesser focus on this risk factor compared to Q4 2024.

Diminished emphasis: Once a pronounced risk, regulatory uncertainty is less discussed in the current period, possibly due to shifting priorities or resolution of earlier concerns.

Retirement Solutions and Liability Visibility

Consistently addressed from Q2 ( " " ), Q3 ( " " ) and Q4 ( " " " ), focusing on integrating private assets into retirement products (like 401(k) plans) and addressing liability runoff predictability versus forecast uncertainties.

Q1 2025 stresses efforts to integrate private assets into retirement solutions along with acknowledging uncertainty in liability forecasts due to market challenges and competitive pressures ( " " " " ).

Ongoing strategic focus: While the integration of private assets remains key, there is a continued, though managed, uncertainty surrounding liability forecasts.

Wealth Management Fundraising and Retail Expansion

Q2 ( " " ), Q3 ( " ) and Q4 ( " " ) showcased strong fundraising results with record capital inflows and outlined the need to penetrate retail channels more deeply due to historically low capture of the institutional segment.

Q1 2025 reports record organic inflows (e.g. $43B total with nearly $5B via the global wealth channel), acknowledging past limited market penetration while seizing significant growth opportunities ( " " " ).

Strong momentum with room for growth: Robust fundraising continues, tempered by the recognition of historically limited penetration in retail markets.

Insurance and Annuity Market Dynamics

Detailed in Q2 ( " ), Q3 ( " " ) and Q4 ( " ), with discussions on competitive advantages, rising funding costs, and management of spreads within a challenging market context.

Q1 2025 reiterates these dynamics with further emphasis on competitive advantages and strategic liquidity measures to offset rising funding costs and a cautious approach to deploying capital ( " " " " " ).

Consistent challenges: A difficult environment persists with rising costs and competitive pressures, though strategic responses continue to evolve.

Geographic Expansion in Asia

Q2 ( " ) and Q4 ( " " ) discussed geographic expansion in Asia with concrete initiatives (e.g. increasing employee presence, new transactions in Japan, and wealth management expansion into Korea and Japan); Q3 did not address this topic.

Q1 2025 does not mention geographic expansion in Asia, indicating that this focus is not emphasized in the current earnings call.

Emerging but intermittent: Previously highlighted as a growth area, Asia is currently not a focus in Q1 2025, suggesting prioritization shifts or temporary de-emphasis.

Underperformance in Strategic Investments

In Q2 2024 ( " ), specific underperformance was noted for Catalina, with mixed results for Athora and Venerable, although later periods (Q3, Q4) saw less emphasis on these issues.

Q1 2025 does not mention underperformance in these strategic investments, indicating that previous concerns (especially with Catalina) have been de-emphasized.

Diminishing focus: Earlier underperformance issues, particularly with Catalina, are no longer emphasized, suggesting strategic adjustments and reallocation have taken effect.

Foreign Investor Demand Shifts

Not discussed in Q2, Q3 or Q4; absent from earlier periods.

Q1 2025 introduces concerns about reduced allocations from foreign investors, with leadership noting a shift away from historic capital flows and a potential return to “normal exceptionalism” ( " ).

New concern: This is a newly emerging topic in Q1 2025, highlighting potential future headwinds from shifting foreign investor allocations.

Liquidity Challenges in Fixed Income and Private Credit Markets

Q2 2024 ( " " ) discussed structural liquidity challenges in public fixed income and the shift toward private credit, while Q3 had moderate discussion and Q4 focused more on origination advantages rather than liquidity.

Q1 2025 provides a detailed analysis of liquidity issues, noting a dramatic reduction in fixed income trading capital and emerging market developments in private credit that could level the playing field ( " ).

Increased focus as a headwind: Liquidity challenges are receiving heightened attention as potential risks to both fixed income and private credit strategies are elaborated.

Private Equity Deployment and Fundraising

Q2 2024 ( " " " ) extensively outlined aggressive private equity deployment and robust fundraising performance, while Q3 showed little discussion and Q4 mentioned adjacent private equity–related strategies.

Q1 2025 reaffirms strong private equity deployment and robust fundraising with record inflows and effective capital formation (e.g. Fund X performance and significant asset management inflows) ( " " ).

Aggressive and resilient: Private equity deployment and fundraising continue to emerge as key future drivers with strong performance and proactive deployment strategies highlighted across periods.