Bridge Investment Group Holdings Inc. (BRDG)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 results were steady on revenue but showed mixed profitability: total revenue was $96.5M, GAAP net income was $2.8M, and Diluted EPS was $(0.01), with EPS impacted by ~$4.7M Apollo transaction costs and ~$3.5M credit losses tied to Bridge Office Fund I .
• Non-GAAP performance improved sequentially: Fee Related Earnings (FRE) to the Operating Company rose to $28.0M and Distributable Earnings (DE) to $25.7M ($0.14 after-tax per share), with FRE margin up to 37% from 32% in Q1 2025 .
• Capital formation and deployment accelerated q/q: $0.476B raised (97% institutional) and $0.509B deployed; AUM grew 2% q/q to $50.2B, while FEAUM was relatively flat at $21.9B .
• Corporate catalyst: declared a $0.045 final dividend and guided to closing the Apollo merger in early September 2025; no earnings call due to the pending transaction, making merger timing and terms the key near-term stock driver .

What Went Well and What Went Wrong

What Went Well

• Sequential improvement in non-GAAP earnings quality: FRE to Operating Company increased and margin expanded to 37%, with DE rising 52% q/q; management highlighted lower net administrative expenses and timing effects in insurance loss and performance allocations .
• Fundraising momentum and AUM growth: $476M raised driven by Credit, 97% institutional inflows, and AUM up 2% q/q; commitments averaged 8.4 years, supporting durable fee visibility .
• Strategic clarity and capital return: “Bridge declared a dividend of $0.045… Bridge anticipates that this will be its final dividend, as it expects to complete the transaction with Apollo… in early September 2025,” underpinning near-term distribution and transaction catalysts .

What Went Wrong

• GAAP EPS remained negative and yoy profitability compressed: Diluted EPS was $(0.01), driven by ~$4.7M transaction costs and ~$3.5M credit losses; GAAP net income fell sharply yoy due to lower investment income and higher G&A .
• Fee-related revenue pressure: recurring management fees declined q/q and yoy, reflecting dispositions in Credit and Seniors Housing and fee-basis conversion to NAV for Newbury funds (Fund IV effective Q2 2025; Fund III effective Q3 2024) .
• Insurance headwinds persisted: net insurance loss linked to captive insurance claims weighed on DE in 2025; Q2 noted ongoing impacts .

Financial Results

Core Financials vs prior periods

Fee Related Revenues breakdown

KPIs

Guidance Changes

No revenue, margin, OpEx, OI&E, tax rate, or segment guidance was provided due to the pending Apollo transaction .

Earnings Call Themes & Trends

Note: The company did not hold an earnings call for Q2 2025 due to the pending merger .

Management Commentary

• “Bridge declared a dividend of $0.045 per share… Bridge anticipates that this will be its final dividend, as it expects to complete the transaction with Apollo… in early September 2025” (press release, Exhibit 99.1) .
• “At the end of the second quarter of 2025, the Company had $3.2 billion of dry powder, a majority of which is in our real estate equity and credit vehicles” .
• FRE/fees commentary: Q2 decrease in net fund-level fee revenues driven by dispositions in Credit and Seniors Housing and fee-basis conversion to NAV for Newbury funds; Q2 compensation increases tied to merit and variable comp .
• EPS drivers: “Loss per share… was $0.01… attributed to approximately $4.7 million of transaction costs related to the Apollo Merger Agreement and credit losses of $3.5 million due to the write off… related to Bridge Office Fund I” .
• No call: “In light of the pending merger transaction with Apollo, the Company will not be holding a second quarter 2025 earnings conference call and webcast” .

Q&A Highlights

The company did not hold an earnings call or Q&A for Q2 2025 due to the pending Apollo merger .

Estimates Context

• S&P Global Wall Street consensus for Q2 2025 Revenue and EPS was unavailable due to a missing CIQ company mapping for BRDG; as a result, estimate comparisons could not be retrieved and are not presented here [GetEstimates error].
• Investors should focus on sequential and yoy trends in reported metrics and the merger timeline until coverage normalizes post-transaction .

Key Takeaways for Investors

• Sequential improvement in non-GAAP metrics: FRE margin expanded to 37% and DE rose to $25.7M ($0.14/share), aided by lower net administrative expenses and timing effects around insurance and performance fees .
• Recurring fee pressure likely persists near-term from NAV fee-basis transitions at Newbury funds and asset dispositions in Credit/Seniors Housing, partially offset by increased transaction fees and performance fee contributions .
• Fundraising and deployment cadence recovered after Q1: $476M raised (97% institutional) and $509M deployed; commitments average 8.4 years, supporting multi-year fee visibility .
• AUM growth to $50.2B (+2% q/q) with stable FEAUM indicates asset appreciation and continued platform durability across Secondaries, Credit, and Multifamily .
• Corporate catalyst dominates: final $0.045 dividend and targeted early-September close with Apollo are near-term drivers; lack of earnings calls reduces interim disclosure, increasing focus on deal execution .
• Watch insurance and office-credit clean-up: captive insurance claims and credit losses tied to legacy office exposures remain monitoring points for non-GAAP volatility .
• Performance allocation pipeline remains significant with large accrued carry; realization timing will influence DE variability quarter-to-quarter .