Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | 13% increase | Total Revenue increased from $4,805 million in Q2 2024 to $5,423 million in Q2 2025; this growth reflects continued organic expansion and higher market levels on average AUM, similar to trends observed in prior periods where market appreciation and fee growth played an important role. |
Investment Advisory, Admin Fees, and Securities Lending Revenue | 15% increase | Revenue grew from $3,875 million in Q2 2024 to $4,454 million in Q2 2025; the increase is driven by stronger organic base fee growth, higher AUM due to favorable market conditions, and fees from significant transactions such as the GIP deal, as seen in earlier period's performance improvements. |
Technology Services Revenue | 26% increase | Technology Services Revenue rose from $395 million in Q2 2024 to $499 million in Q2 2025; this robust increase is driven by heightened demand for BlackRock’s Aladdin technology and the impact of the Preqin transaction, consistent with prior trends where ACV improvements and strategic acquisitions boosted revenue. |
Investment Advisory Performance Fees | 43% decline | Performance Fees declined from $164 million in Q2 2024 to $94 million in Q2 2025; this drop reflects weaker fee generation from alternatives, notably in private markets and liquid alternatives, echoing previous period challenges in achieving performance thresholds amid variable market conditions. |
Cash Management Revenue | 23% increase | Cash Management Revenue increased from $247 million in Q2 2024 to $304 million in Q2 2025; the improvement is largely attributable to net inflows driven by the Circle Reserve Fund and favorable shifts in AUM and market movements, following similar recovery patterns from earlier quarter analyses. |
Advisory and Other Revenue | 6% increase | Advisory and Other Revenue experienced a modest rise from $53 million in Q2 2024 to $56 million in Q2 2025; the slight increase likely results from incremental adjustments in earnings presentation and steady performance in nonoperating results that have been observed in previous reporting periods. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Tax Rate | FY 2025 | 25% | 25% | no change |
Share Repurchases | FY 2025 | at least $375 million per quarter | repurchasing at least $375 million per quarter for FY 2025 | no change |
Core G&A Expense Increase | FY 2025 | mid- to high single-digit percentage increase | low teens percentage increase | raised |
Fee Rate | FY 2025 | expects to add fee rate accretive assets | approximately zero basis points impact | lowered |
Adjusted Compensation to Net Revenue Ratio | FY 2025 | no prior guidance [N/A] | expected to be modestly higher | no prior guidance |
Organic Growth and Margin Profile | FY 2025 | no prior guidance [N/A] | target a 45% or greater margin profile over the cycle; Q2 margin 43.3% (80bp lower YoY) | no prior guidance |
Elmtree Funds Acquisition | FY 2025 | no prior guidance [N/A] | $7.3 billion in client AUM with $3.1 billion fee-paying AUM; expected to close in Q3 2025 | no prior guidance |
Research analysts covering BlackRock.