KKR & Co. Inc. (KKR) Q3 2025 Earnings Summary

Executive Summary

Record profitability and fundraising: FRE $1.15/share, TOE $1.55/share, ANI $1.41/share; $43B new capital (2nd-highest ever), AUM/FPAUM up 16% YoY to $723B/$585B .
Q3 beat vs S&P Global consensus: EPS $1.41 vs $1.30 est; Revenue $7.10B vs $2.26B est; strength in management fees and monetizations; capital markets fees $276M supported activity across PE/Infra/Core PE/3rd-party (debt-focused ~80%)* .
Insurance “total economics” continue to scale; reported Insurance Operating Earnings $305M (benefited by $41M assumption review), but management reiterates ~$250M +/- run-rate and highlights rising asset-management and capital-markets economics tied to Global Atlantic .
Outlook/guidance: Management reaffirmed 2026 targets ($4.50+ FRE/share and $7.00+ ANI/share) and noted ~$0.18/share one-time Q4 clawback charge from Asia PE Fund II; monetization pipeline remains constructive ($800M–$1B visibility over next two quarters) .

*Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Record recurring earnings power: “fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share...among the highest we've reported” .
- Fundraising momentum and dry powder: $43B raised in Q3 (2nd-highest ever), $126B uncalled commitments; AUM/FPAUM +16% YoY; K‑Series private wealth AUM up to $29B vs $14B a year ago .
- Monetizations and portfolio maturity: Over $1B combined monetization activity across AM and Strategic Holdings; near-record embedded unrealized gains (~$17B) positioning future exits .
What Went Wrong
- Transaction/monitoring fees lower YoY: $328M vs $467M in 3Q’24 (mix shift), though capital markets fees remained strong at $276M .
- Net realized investment income fell sharply QoQ: $3.8M vs $130.9M in Q2, reflecting timing/mix of realizations .
- One-time Q4 clawback impact: Asia PE Fund II underperformance leads to ~$0.18/share hit to Q4 ANI (gross clawback ~$350M collected many years ago to be repaid) .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenues ($USD Millions)	4,791.7	5,088.8	5,526.0
GAAP Net Income – KKR Common ($USD Millions)	600.6	472.4	859.9
FRE per Adjusted Share ($)	1.12	0.98	1.15
TOE per Adjusted Share ($)	1.39	1.33	1.55
ANI per Adjusted Share ($)	1.32	1.18	1.41
Dividend per Common Share ($)	—	0.185 (Q2’25 declared)	0.185 (Q3’25 declared)

Actual vs S&P Global Consensus (Q3 2025):

Primary EPS: Actual $1.41 vs Estimate $1.2989*
Revenue: Actual $7.105B vs Estimate $2.258B*
Primary EPS – # of Estimates: 17*; Revenue – # of Estimates: 4*
*Values retrieved from S&P Global.

Segment earnings (profitability mix):

Segment Metric ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Fee Related Earnings (FRE)	1,000.7	886.8	1,032.9
Insurance Operating Earnings	238.5	277.9	304.7
Strategic Holdings Operating Earnings	6.8	29.1	57.7
Total Operating Earnings (TOE)	1,246.0	1,193.8	1,395.3
Net Realized Performance Income	101.9	109.3	232.7
Net Realized Investment Income	216.5	130.9	73.6
Total Segment Earnings	1,564.5	1,434.0	1,701.5

Key KPIs and capital metrics:

KPI	Q3 2024	Q2 2025	Q3 2025
AUM ($USD Billions)	624	686	723
FPAUM ($USD Billions)	506	556	585
New Capital Raised ($USD Billions)	—	28	43
Capital Invested ($USD Billions)	—	18	26
Uncalled Commitments (“Dry Powder”, $USD Billions)	108	115	126
Perf. Fee Eligible AUM ($USD Billions)	371	411	428
AUM Not Yet Paying Fees ($USD Billions)	—	56	64
FRE Margin LTM (%)	68	69	69

Segment highlights (selected):

Asset Management: Management fees rose to $1,063.6M; Fee-Related Performance Revenues $73.2M; FRE $1,032.9M .
Capital Markets: Transaction fees $275.8M; ~80% debt product focused .
Insurance: Net Investment Income $1,835.0M; Insurance Operating Earnings $304.7M; GA AUM $212B .

Guidance Changes

Metric	Period	Previous Guidance	Current Update	Change
FRE per share	FY 2026	$4.50+	Reaffirmed confidence	Maintained
ANI per share	FY 2026	$7.00+	Reaffirmed confidence	Maintained
Insurance Operating Earnings	Near-term run-rate	~$250M +/- per quarter	Reiterated; Q3 benefited by $41M unlocking	Maintained (note non-recurring benefit)
Q4 2025 ANI impact	Q4 2025	—	One-time ~$0.18/share headwind from Asia 2 clawback	New (one-time)
Common dividend	Q3 2025	$0.185/qtr	Declared $0.185 for Q3 (payable Dec 2)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1, Q2 2025)	Current Period (Q3 2025)	Trend
AI/Data center & digital infra	Introduced ECP partnership; non-speculative, pre-leased power projects; broad AI-driven infra need	Reinforced digital infra opportunity set; active deployment and origination engines referenced broadly	Positive momentum
Supply chain/tariffs/macro	Detailed tariff exposure minimal; 90% of PE AUM limited/no first-order impact; mitigation underway	Management emphasizes “noise vs facts”; dispersion by sector; rolling recession dynamic; portfolio resilient	Stable/constructive
Private wealth (K‑Series)	K‑Series AUM $22–25B; strong inflows; Capital Group tie-up launched public-private fixed income; PE/real assets in pipeline	K‑Series AUM $29B; $4.1B Q3 inflows; expanding platform/global distribution	Accelerating
Insurance strategy (Global Atlantic)	Elongate liabilities; add alternatives; scale third-party capital (IV sidecars/Japan Post); all-in ROE approaching 20%	Total Insurance Economics emphasized (page 20); $200M annual accrued income not yet in P&L; hundreds of millions capital markets fees potential	Building earnings power
Monetizations	$800M visibility entering H2’25; robust Asia exits	$800M rising to ~$1B visibility next two quarters; strong pipeline despite one-time Asia 2 clawback	Constructive

Management Commentary

“We’re pleased to be reporting fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share” (Craig Larson) .
“The total economics related to our insurance business…are approximately $1.4 billion year to date…If anything, these figures meaningfully understate the earnings power of owning Global Atlantic” (Rob Lewin) .
“We will be taking a charge in the fourth quarter…[Asia 2]…we expect…ANI per share to be about 18 cents lower. This is really a one-time charge…” (Rob Lewin) .
“Based on what we see today…we feel confident that we can achieve the $7+ [ANI] per share [in 2026]…[and] $4.50+ in FRE per share” (Rob Lewin) .
“The noise is bad, and the facts are good” (Scott Nuttall) .

Q&A Highlights

Asia growth and international demand: KKR sees increasing investor demand across Japan/India/Korea/SEA/Australia; Asia AUM now >$80B; expects Asia to grow faster than firm average (Scott) .
Insurance ROE trajectory: All-in ROE high-teens now with path to 20%+ as alternatives mature and third-party capital scales (Rob) .
Capital markets outlook: Q3 transaction fees $328M (KCM $276M); baseline supports growth into 2026 with broader M&A recovery (Rob) .
Fee rates: No degradation in fee rates for North America Fund XIV vs XIII; Q3 had a formulaic step-down in an older fund (Rob) .
Credit exposure: No exposure to headline private credit problem names; pipeline robust; continued confidence in private credit fundamentals (Scott) .

Estimates Context

Q3 2025 EPS: Actual $1.41 vs S&P Global consensus $1.2989 (beat)*.
Q3 2025 Revenue: Actual $7.105B vs S&P Global consensus $2.258B (beat)*.
Primary EPS – # of estimates: 17; Revenue – # of estimates: 4*.
Implications: ANI/EPS likely to be revised upward modestly post-beat; management’s one-time Q4 clawback should be modeled (~$0.18/share), while monetization pipeline and fee growth support FY26 trajectory .
*Values retrieved from S&P Global.

Key Takeaways for Investors

Durable earnings quality: 80%+ of segment earnings from recurring components (FRE, insurance, strategic holdings) underpin visibility; record LTM profitability supports valuation resilience .
Estimate momentum: Strong Q3 beats on EPS/Revenue and constructive monetization pipeline ($800M–$1B) provide catalysts into 1H’26 despite the Q4 clawback headwind .
Insurance flywheel: Reported insurance earnings understate full economics; third-party capital, capital markets, and alternatives accruals not fully reflected—embedded earnings power likely to surface in 2027–2028 .
Fundraising outperformance: $43B raised in Q3, $126B dry powder; K‑Series/private wealth scaling and institutional consolidation toward scaled partners favor KKR’s multi-asset platform .
Private credit and ABF scale as secular tailwinds: Robust origination platforms, global distribution, and insurance client demand position KKR to capture share across cycles .
Watch list: Q4 one-time $0.18/share clawback; capital markets activity pace; continued fee activation from AUM not yet paying fees ($64B) and timing of big flagship closes .

Other Relevant Press Releases (Q3 2025)

KKR set and then moved its Q3 earnings call time to Nov 7 (10:00 a.m. ET → 9:00 a.m. ET), with webcast details provided .
Q3 results press notice referenced posting of materials and webcast replay availability .

Citations:

Q3 2025 8‑K earnings materials: .
Q3 2025 earnings call transcript: .
Q2 2025 8‑K and call for sequential/trend context: ; .
Q1 2025 8‑K and call for prior trend and themes: ; .
Press releases (timing/announcement): .

S&P Global disclaimer: The consensus estimates and related figures marked with an asterisk (*) are values retrieved from S&P Global.