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DigitalBridge Group, Inc. (DBRG)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 fee revenue was $90.2M, up 24% YoY; fee-related earnings (FRE) were $35.0M, up 79% YoY, and distributable earnings (DE) were $54.7M, aided by a $34.9M DataBank realization .
  • Total revenues were $45.4M; GAAP net loss attributable to common stockholders was $0.9M, or -$0.01 per share .
  • Management reiterated 2025 guideposts (grow FEEUM to ~$40B, FRE +10–20%, ~200 bps FRE margin expansion) and noted performance will be front‑loaded due to catch‑up fees .
  • Fundraising remained solid: $1.2B new fee-paying commitments in Q1, pushing FEEUM to $37.3B (+15% YoY) and available corporate cash to $201M; revolver remains fully undrawn ($300M) .

What Went Well and What Went Wrong

What Went Well

  • “Fee revenues of $90 million and FRE of $35 million, up almost 80% year-over-year” with double-digit revenue growth and expanding margins; DBP III reached $6.3B commitments and Q1 fundraising totaled $1.2B .
  • Strategic portfolio actions: Zayo’s $4.5B agreement to acquire Crown Castle’s fiber business strengthens AI-era connectivity; accretive, lowers entry multiple and delevers capital structure .
  • Strong liquidity and capital formation: FEEUM rose to $37.3B (+15% YoY); available corporate cash of $201M and undrawn $300M revolver .

What Went Wrong

  • Carried interest was a net reversal in Q1 (carried revenue -$55.5M offset by expense reversal +$50.5M, net -$5.0M) as fund marks trailed preferred return hurdle; management emphasized conservative valuation framework .
  • Macro volatility and tariff policy delayed some LP decisions; management highlighted resilience at the asset level but acknowledged timing impacts on fundraising closings .
  • Against Wall Street consensus, Q1 GAAP EPS (-$0.01) and total revenues ($45.4M) missed S&P estimates of $0.003 EPS* and $102.1M revenue* as DBRG’s reported GAAP includes carry mark‑to‑market and non‑recurring items .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Total Revenues ($USD Thousands)——45,447
GAAP Fee Revenue ($USD Thousands)76,582 101,551 90,139
Fee Revenue (FRE basis) ($USD Thousands)76,664 101,641 90,229
FRE ($USD Thousands)26,154 35,424 34,950
FRE Margin (%)34% 32% LTM 39% (quarter)
DE ($USD Thousands)10,732 19,903 54,704
DE per Basic Share ($USD)0.06 0.11 0.29
GAAP EPS per Basic Share ($USD)(0.01) (0.12) (0.01)
FEEUM ($USD Billions)34.1 35.5 37.3

Estimates vs. Actual (S&P Global; values marked with * are from S&P Global):

MetricQ1 2025 ConsensusQ1 2025 Actual
Primary EPS Consensus Mean ($USD)0.003*(0.01)
Revenue Consensus Mean ($USD)102.148M*45.447M
EBITDA Consensus Mean ($USD)31.55M*5.695M*

Values retrieved from S&P Global.

Segment/Strategy FEEUM Breakdown ($USD Millions):

StrategyQ3 2024Q4 2024Q1 2025
DBP I3,650 3,587 3,587
DBP II6,568 6,985 6,986
DBP III4,530 5,348 6,177
Co-Investment Vehicles10,049 11,539 12,264
InfraBridge5,051 3,685 3,740
Core, Credit, Liquid3,047 3,179 3,371
Separately Capitalized Portcos1,191 1,173 1,172
Total FEEUM34,086 35,496 37,297

Selected KPIs:

KPIQ3 2024Q4 2024Q1 2025
Available Corporate Cash ($USD Thousands)126,760 139,950 201,310
Revolver Availability ($USD Millions)300 (undrawn) 300 (undrawn) 300 (undrawn)
Corporate Debt Principal ($USD Thousands)300,000 300,000 300,000
Preferred Equity ($USD Thousands)821,899 821,899 821,899

Guidance Changes

MetricPeriodPrevious Guidance (Q4 2024)Current Guidance (Q1 2025)Change
FEEUM (net)FY 2025Grow to ~$40B+ by YE 2025 “Comfortable” reaffirmation; still on track Maintained
FRE GrowthFY 2025+10% to +20% YoY vs 2024 Reaffirmed; front‑loaded performance due to catch‑up fees Maintained
FRE MarginFY 2025Improve by ~200 bps in 2025; LTM margin 32% exiting Q4 LTM margin 35% as of Q1; expect higher margins in H1 on catch‑up fees Maintained trajectory
Common DividendQ1 2025$0.01 quarterly dividend (ongoing) Declared $0.01 per common share for Q1; payable July 15, 2025 Maintained
Preferred DividendsQ1 2025Series H/I/J per terms Declared: H $0.4453125; I $0.446875; J $0.4453125; payable July 15, 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
AI/Technology InitiativesHyperscaler CapEx outlook increased to >$300B; focus shifting to inference; secured power bank ~16GW; multi‑platform data center growth “AI economy is accelerating”; portfolio demand pipeline 9.9GW (+38% YoY) and 2.3GW leases not yet commenced; 100+ data centers under construction Strengthening
Tariffs/MacroFundraising timing/mix impacted 2024 in‑period FRE; catch‑up fees shift to 2025 DC build cost impact estimated +3–7% under 10–20% tariffs, viewed as manageable; LP decisions modestly delayed Manageable headwind
Private CreditBuilding platform; origination pipeline, SMAs; strong 2024 Goal up to $2B 2025 loan deployments; pipeline 90 opportunities/$13B; ALLO Fiber $500M facility; 100+ LPs in data rooms Accelerating
Portfolio Diversification (Towers/Data Centers/Fiber)Vertical Bridge-Verizon towers deal; Yondr acquisition; JTower Japan; fiber routes expansion Tower leasing off to best January on record; fiber scale/upside (Zayo-CCI fiber); balanced performance across segments Broad-based strength
Carried Interest/DPI2024 net carry positive; focus on DPI to drive fundraises Q1 2025 carry net reversal; plan to make carry more consistent over time; conservative marks Episodic near-term; medium-term normalization
Fundraising CadenceMulti‑strat channels (flagship, credit, private wealth, co‑invest) building; record 2024 capital formation $1.2B Q1; DBP III commitments ongoing through end of July; reaffirm 2025 targets Solid execution

Management Commentary

  • “We delivered strong financial performance with solid revenue and earnings growth in the first quarter. Fee revenues of $90 million and FRE of $35 million, up almost 80% year-over-year.” — Marc Ganzi, CEO .
  • “Fee revenue... increased 24%... included $12 million of catch-up fees... FRE margin was 39%... partial realization of our DataBank investment contributed to strong distributable earnings.” — Thomas Mayrhofer, CFO .
  • “Crown Castle’s metro-focused fiber network is highly complementary to Zayo’s long-haul... accretive transaction lowers entry multiple... deleveraging event for Zayo.” — Marc Ganzi, CEO .
  • “DC build cost potentially +3–7% assuming 10–20% tariffs... we expect to recover most of that in contracts; minimal impact to development yields.” — Marc Ganzi, CEO .

Q&A Highlights

  • Guidance reaffirmation: Management confirmed comfort with FEEUM ~$40B, FRE +10–20%, margin expansion targets; performance front‑loaded by catch‑up fees .
  • Carried interest: Expect some carry in 2025 but guidance excludes significant carry; approach aims to transition from episodic to more consistent; conservative marking and historical premium to NAV on exits .
  • Fundraising dynamics: Only two LPs paused amid volatility; strong cross‑product interest, including uptick in credit LP pipeline and private wealth channel traction .
  • FEEUM activation: ~$4B committed capital not yet fee‑earning to be lit via co‑invests and credit originations; data center leases of 2.3GW not yet commenced to drive fees .
  • Towers/small cells/fiber: Macro tower leasing robust; anticipate 5G densification wave 2026–2029 for small cells; fiber bookings strong with high strand counts .

Estimates Context

  • Q1 2025 GAAP EPS and revenue missed S&P Global consensus (EPS: -$0.01 vs 0.003*, Revenue: $45.4M vs $102.1M*), reflecting DBRG’s GAAP sensitivity to carry mark‑to‑market and timing of realized principal income . Values retrieved from S&P Global.
  • Non‑GAAP FRE and DE were strong: FRE $35.0M (+79% YoY) and DE $54.7M (boosted by $34.9M DataBank realization) .
  • Estimate frameworks may need to emphasize FRE/DE and fundraising cadence over GAAP revenue given business model mix (non‑GAAP fee metrics, episodic carry/principal income) .

Key Takeaways for Investors

  • Near-term narrative: Despite macro/tariff noise, DBRG executed to plan with robust fee growth and fundraising; expect front‑loaded margins from catch‑up fees — supportive for Q2 prints .
  • Portfolio catalysts: Zayo–CCI Fiber enhances AI-era connectivity; tower and fiber momentum plus DC backlog (2.3GW leases not commenced) should activate more FEEUM through 2025 .
  • Watch carry normalization: Conservative marking drove Q1 carry reversal; management targets more consistent carry over time — exits/DPI from vintage funds are medium‑term upside .
  • Liquidity and capital structure: $201M cash, undrawn $300M revolver; preferreds steady; potential for further balance sheet optimization as rates ease .
  • Trading setup: Q1 headline GAAP misses vs S&P may mask strong non‑GAAP operating metrics; focus on FRE/DE trends, fundraising cadence and activation of committed capital for subsequent quarters .
  • Private credit scaling: Target up to $2B originations in 2025, deep pipeline and SMA strategy — potential incremental FEEUM surprise .
  • Dividend stability: Common dividend maintained at $0.01; preferred dividends declared per series — income profile steady .

Additional Relevant Q1 2025 Press Releases

  • Zayo to acquire Crown Castle Fiber Solutions for ~$4.25B; expands ~90,000 route miles and >70,000 on‑net locations .
  • Participation in DataBank secondary, gross proceeds to DBRG ~$59M; post‑transaction DBRG stake ~7.8% with implied valuation ~$486M .
  • Telecom Infrastructure Partners secured €560M debt financing supported by InfraBridge and Swiss Life AM .