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DigitalBridge Group, Inc. (DBRG)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 GAAP net income attributable to common stockholders was $17.0M ($0.10 per share), while Fee Revenue rose to $85.4M (+8% YoY) and Fee-Related Earnings (FRE) reached $32.0M (+23% YoY); Distributable Earnings (DE) were a loss of $18.6M driven by a $40M realized loss in an InfraBridge fund, with no cash flow impact in the quarter .
  • Fee-Earning Equity Under Management (FEEUM) climbed to $39.7B (+21% YoY), with $1.3B of new capital formation in Q2 and $2.5B YTD; end-of-quarter FEEUM activation is positioned to support future fee growth .
  • Relative to S&P Global consensus, EPS beat ($0.10 actual vs $0.07* est.), while GAAP revenue missed materially (consensus $101.6M* vs actual negative due to carried interest reversal), reinforcing management’s focus on FRE as the core performance metric [GetEstimates]*.
  • Strategic catalysts included closing the Yondr acquisition (420MW committed; >1GW potential), launching Takanock with a $500M commitment to accelerate power-to-data center solutions, and financing at key platforms (Switch, Vantage) to scale capacity aligned with AI-driven demand .

What Went Well and What Went Wrong

What Went Well

  • Fee growth and margin expansion: Fee Revenue of $85.4M (+8% YoY) and FRE of $32.0M (+23% YoY) with a 37% FRE margin; “We delivered another solid quarter of growth…operating margins continue to scale” — Marc Ganzi, CEO .
  • Capital formation and FEEUM momentum: $1.3B new capital formation in Q2 and FEEUM at $39.7B (+21% YoY); end-of-quarter activation expected to contribute to Fee Revenue in subsequent quarters .
  • Strategic positioning for AI buildout: Closed multi‑billion Yondr acquisition (>420MW in place; potential >1GW) and launched Takanock power infrastructure platform, plus financings at Switch and Vantage to fuel capacity expansion .

What Went Wrong

  • DE loss and carried interest reversal: DE of -$18.6M was largely due to a $40M realized loss from an InfraBridge fund; net carried interest reversal was -$11.6M, contributing to GAAP volatility .
  • GAAP revenue volatility vs estimates: SPGI revenue consensus was ~$101.6M* for Q2, while GAAP revenues were negative due to carried interest dynamics, creating a headline miss despite strong FRE [GetEstimates]* .
  • Revolver capacity reduced: The company elected to reduce revolver availability from $300M to $100M (cost savings and strong liquidity); while liquidity remains solid, reduced capacity can be perceived as conservative leverage posture .

Financial Results

EPS vs Estimates (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
EPS Actual ($)-0.12 -0.01 0.10
EPS Consensus Mean ($)*-0.03*0.00*0.07*

Values with asterisk (*) retrieved from S&P Global.

Revenue vs Estimates (S&P Global basis, oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue Actual ($USD Millions)*62.24*43.09*-0.85*
Revenue Consensus Mean ($USD Millions)*93.94*102.15*101.57*

Values with asterisk (*) retrieved from S&P Global.

Company-Reported Fee Revenue, FRE, Margins (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
GAAP Fee Revenue ($USD Millions)101.55 90.14 85.26
FRE ($USD Millions)35.42 34.95 31.98
FRE Margin %35% (derived from )39% 37%

Note: FRE margin for Q4 2024 is derived from FRE/fee revenue; underlying values cited above .

Segment-Like Breakdown — FEEUM by Strategy ($USD Billions, oldest → newest)

CategoryQ2 2024Q1 2025Q2 2025
DBP Series13.9 16.7 17.3
Co‑Invest9.5 12.3 14.8
Separately Capitalized Portcos5.2 3.7 3.7
InfraBridge1.2 1.2 1.2
Core, Credit, Liquid2.9 3.4 2.8
Total FEEUM32.7 37.3 39.7

KPIs (oldest → newest)

MetricQ2 2024Q1 2025Q2 2025
FRE Fee Revenue ($USD Millions)78.69 90.23 85.37
FRE ($USD Millions)25.97 34.95 31.98
FRE Margin %33% 39% 37%
Distributable Earnings ($USD Millions)19.63 54.70 -18.62
FEEUM ($USD Billions)32.7 37.3 39.7
New Capital Formation ($USD Billions)1.2 1.2 1.3
Available Corporate Cash ($USD Millions)127.26 201.31 158.26
Revolver Availability ($USD Millions)300 300 100
Dividend per Common Share ($)0.01 0.01 0.01

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
FRE YoY GrowthFY 2025Implicitly “10%+ YoY” focus (first-half framing) 10–20% YoY with expanding margins Clarified band (raised specificity)
FEEUM TargetFY 2025~$40B target “Over $40B” multi‑strategy platform goal Maintained/affirmed ambition
Revolver AvailabilityN/A$300M available $100M available (cost savings; strong liquidity) Lowered
Common DividendQuarterly$0.01 declared $0.01 declared Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
AI/technology demandEmphasis on secular demand; portfolio positioned for “more, better, faster” compute CEO highlighted strong fee growth; AI surge and margin expansion; referenced hyperscaler capex increases and token growth inflection Strengthening narrative; demand accelerating
Power infrastructure constraintsEarly formation of Digital Energy/Takanock strategy Formal launch of Takanock ($500M) to accelerate time‑to‑power in tier‑1 markets Execution progressing
Macro/tariffs/supply chainQ1 slide discussed tariff exposure, build cost +3–7% potential; resilience of digital infra Q2 noted markets recovered as macro concerns abated; AI demand surged Macro headwinds easing; AI tailwinds dominant
Fundraising/FEEUM activationQ1: $1.2B formed; FEEUM +15% YoY Q2: $1.3B formed; FEEUM +21% YoY; end‑of‑quarter activation to lift future fee revenue Continued momentum
Carried interest/GAAP volatilityQ1: net carried interest reversal, FRE focus CFO noted net carried interest reversal (~$12M) and underlying FRE strength Persistent GAAP noise; FRE remains core metric

Management Commentary

  • “We delivered another solid quarter of growth in the second quarter with fee related earnings up double digits, aligned with our objectives for the year as operating margins continue to scale…Our recent landmark investments, including the acquisition of Yondr and the launch of our Takanock power infrastructure platform, uniquely position us to provide the full spectrum of large-scale, critical solutions.” — Marc Ganzi, CEO .
  • CFO highlighted a net reversal of carried interest during the quarter and reiterated margin resilience and the emphasis on fee‑based metrics as the core of the investment case .
  • “With a diverse global portfolio of campuses, Yondr further strengthens DigitalBridge’s world‑class data center portfolio and…delivering AI‑ready data solutions at pace.” — DBRG on Yondr closing and leadership appointments .

Q&A Highlights

  • Analysts probed sustainability of margin expansion and the contribution of catch‑up fees; management reaffirmed elevated margins through flagship fund final close in 2025 .
  • Clarifications on carried interest mechanics and GAAP volatility: CFO explained the quarterly fair value‑based accrual and reversal, reinforcing why FRE is the preferred profitability lens .
  • Discussion on AI demand, power constraints, and platform scaling: management cited hyperscaler capex updates and accelerating token volumes as structural tailwinds for data center build‑outs .

Estimates Context

  • EPS beat vs SPGI consensus (Q2 2025: $0.10 actual vs $0.07* estimate); prior quarters showed near‑flat Q1 ($-0.01 actual vs $0.00* est.) and more negative Q4 2024 actual than estimates, reflecting GAAP variability [GetEstimates]*.
  • Revenue miss vs SPGI consensus (Q2 2025: $101.57M* est. vs actual negative*), driven by carried interest reversals; management directs investors to FRE/fee revenue as more stable indicators of operational performance [GetEstimates]* .

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Focus on FRE and Fee Revenue for core performance: Q2 FRE $32.0M (+23% YoY) and Fee Revenue $85.4M (+8% YoY) with 37% margin, despite GAAP noise from carried interest .
  • Capital formation and FEEUM growth underpin forward earnings: $1.3B formed in Q2 and FEEUM at $39.7B (+21% YoY) provide visibility into future fee streams; end‑of‑quarter activation supports next quarters .
  • Strategic initiatives tie directly to AI demand: Yondr (>420MW committed; >1GW potential) and Takanock ($500M power platform) address capacity and power constraints—key enablers for hyperscale build‑outs .
  • Watch margins through 2H 2025: Management targets FY FRE up 10–20% YoY with expanding margins; margin trajectory is a near‑term driver for sentiment .
  • Liquidity remains solid though revolver reduced: Available corporate cash was $158M at quarter‑end and revolver availability is $100M, reflecting a cost‑savings posture with adequate access .
  • Expect GAAP volatility to persist from carried interest accounting; use FRE/DE disclosures to contextualize earnings quality and cash generation .
  • Platform financing and scaling (Switch, Vantage) signal capacity to capture AI workloads; monitor booking pace and project milestones for validation .