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Athene Holding (ATH-PA)·Q4 2025 Earnings Summary

Apollo Delivers Record Quarter as AUM Hits $938B, Raises Dividend 10%

February 09, 2026 · by Fintool AI Agent

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Apollo Global Management delivered a blowout Q4 2025, with Adjusted Net Income surging to $2.47 per share—beating Street expectations by ~14%—as record Fee Related Earnings of $690M and massive inflows powered the alternative asset manager's strongest year ever. The stock jumped 5.5% on the news, with shares trading higher in aftermarket activity.

Did Apollo Beat Earnings?

Yes, decisively. Apollo crushed estimates across the board:

MetricQ4 2025ConsensusSurprise
Adjusted Net Income/Share$2.47 ~$2.16+14%
Fee Related Earnings$690M ~$640M+8%
Total AUM$938B ~$900B+4%

For the full year, Apollo posted Adjusted Net Income of $5.2 billion, or $8.38 per share—a 14% increase from 2024.

Beat streak extended: This marks Apollo's 6th consecutive quarter of meeting or beating ANI estimates, with 5 of the last 8 quarters delivering outright beats.

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What Were the Key Financial Highlights?

Segment Performance

Segment Breakdown

SegmentQ4 2025Q4 2024YoY Change
Fee Related Earnings (FRE)$690M $554M+24.5%
Spread Related Earnings (SRE)$865M $841M+2.9%
Principal Investing Income (PII)$227M $139M+63.3%
Total Segment Income$1,782M $1,534M+16.2%

Key drivers:

  • FRE: Record quarterly and annual results driven by 22% growth in management fees to $942M, reflecting strong third-party inflows and equity strategy expansion
  • SRE: Steady performance with alternative net investment income up 28% YoY, though net spread compressed 17bps due to higher cost of funds
  • PII: Surge in realized performance fees ($588M) driven by Fund X, Accord+, and Credit Strategies crystallization

AUM Growth

MetricQ4 2025Q4 2024YoY Change
Total AUM$938B $751B+25%
Fee-Generating AUM$709B $569B+25%
Perpetual Capital AUM$536B $447B+20%

Nearly 60% of AUM and over 70% of FGAUM is perpetual capital—highly scalable with consistent through-cycle growth.

What Did Management Guide?

Apollo didn't provide explicit numerical guidance, but management signaled continued confidence through strategic capital allocation:

Capital Return Acceleration

InitiativeDetails
Dividend Increase+10% to $2.25/share annually (from $2.04) starting Q1 2026
New Buyback Authorization$4.0 billion approved Feb 9, 2026, replacing prior $3B program
2025 ReturnsReturned $1.5B to shareholders via dividends ($1B+) and repurchases ($1.4B)

Growth Pillars Intact

Management highlighted execution against three strategic growth pillars:

  1. Origination: Record $309B in FY 2025 (up from prior record), driven by direct origination and asset-backed finance
  2. Global Wealth: Record $18B annual inflows from semi-liquid products and fixed income replacement strategies
  3. Capital Solutions: Record $808M in capital solutions fees (+21% YoY) demonstrating differentiated and flexible capital at scale
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What Changed From Last Quarter?

Positive Developments

ChangeQ3 2025Q4 2025Impact
FRE$652M$690M (+6% QoQ) New quarterly record
Management Fees$863M$942M (+9% QoQ) Equity strategy momentum
PII$50M$227M (+354% QoQ) Performance fee crystallization
AUM$908B$938B (+3% QoQ) Continued organic growth

Areas to Monitor

MetricQ3 2025Q4 2025Commentary
Net Spread1.24%1.20% (-4bps) Compression from higher cost of funds
FRE Margin56.8%55.5% (-130bps) Bridge integration costs, seasonal expenses
SRE$871M$865M (-1% QoQ) Flat sequentially

Bridge Acquisition Impact: Apollo completed the acquisition of Bridge Investment Group in Q3 2025, adding $21B to FGAUM and contributing to non-compensation expense growth. Integration costs are expected to normalize.

How Did the Stock React?

MetricValue
Day Change+5.5% ($126.08 → $133.03)
Aftermarket$134.98 (+6.9% from Friday close)
52-Week Range$102.58 - $164.76
Market Cap~$77B

The market rewarded Apollo's execution with a strong rally. The stock remains ~19% below its 52-week high of $164.76, suggesting room for multiple expansion if growth continues.

What Are Analysts Watching?

Credit Quality

97% of Athene's fixed income portfolio ($219B) is invested in investment grade assets (NAIC 1 or 2). Historical average annual credit losses of 11 bps over five years compare favorably to 13 bps industry average.

Interest Rate Sensitivity

  • Floating Rate Portfolio: Only 1% ($4B) of Athene's portfolio is net floating rate exposure
  • Cash Position: $10.5B cash and equivalents (3.6% of net invested assets) provides flexibility

Deployment Runway

MetricValue
Dry Powder$73B
Performance Fee-Eligible AUM$322B (+44% YoY)
Performance Fee-Generating AUM$222B (+48% YoY)

The $73B in dry powder—70% in Credit strategies—provides significant deployment capacity for 2026.

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Key Quotes From Management

"Fourth quarter results complete a year of strong organic growth and execution against 2025 targets." — Apollo Management

"Record quarterly and annual FRE of $690 million and $2.5 billion, respectively, driven by strong FRE growth of 23% in 2025." — Apollo Earnings Release

Investment Thesis Update

Bull Case Strengthened

  • ✅ Record FRE demonstrates operating leverage in asset management
  • ✅ 25% AUM growth with 60% perpetual capital shows durable fee base
  • ✅ Capital return acceleration (dividend hike + $4B buyback) signals confidence
  • ✅ Origination platform ($309B) is a competitive moat

Bear Case Considerations

  • ⚠️ Net spread compression (1.20% vs 1.37% a year ago) could pressure SRE
  • ⚠️ FRE margin compression (55.5% vs 58.0% a year ago) from Bridge integration
  • ⚠️ PII volatility tied to exit environment and performance fee timing
  • ⚠️ Stock still 19% off highs despite strong results

Forward Catalysts

CatalystTimingImpact
Q1 2026 Earnings~May 2026First full quarter at new dividend rate
Bridge IntegrationThrough 2026Margin normalization expected
Fund X DeploymentOngoing$23B fund with significant dry powder
Athora Growth2026European insurance platform expansion

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