Ares Management Corporation Q4 2025 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy ARES?
Source: seekingalpha
- Earnings Miss: Ares Management Corporation reported a Q4 2025 GAAP EPS of $1.45, missing expectations by $0.24, indicating challenges in profitability that could impact investor confidence.
- After-Tax Realized Income: The after-tax realized income for the quarter ending December 31, 2025, was $529.1 million, demonstrating stability amidst market fluctuations, yet falling short of market expectations, which may affect future capital inflows.
- Fee-Related Earnings: The fee-related earnings for the quarter were $527.7 million, reflecting the company's ability to manage expenses, but still underperforming against market expectations, potentially affecting stock performance.
- Market Reaction: Given the earnings miss, Ares Management's stock may face short-term pressure, prompting investors to monitor subsequent market reactions and management's strategic responses.
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Analyst Views on ARES
Wall Street analysts forecast ARES stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 133.940
Low
175.00
Averages
196.55
High
222.00
Current: 133.940
Low
175.00
Averages
196.55
High
222.00
About ARES
Ares Management Corporation is an alternative investment manager offering clients complementary primary and secondary investment solutions across various asset classes. Its segments include Credit Group, Private Equity Group, Real Assets Group, Secondaries Group, and Other. The Credit Group segment manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, direct lending and APAC credit. The Private Equity Group segment categorizes its investment strategies as corporate private equity, special opportunities and APAC private equity. The Real Assets Group segment manages comprehensive equity and debt strategies across real estate and infrastructure investments. The Secondaries Group segment invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. It has operations across North America, South America, Europe, Asia Pacific and the Middle East.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Surge: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence and indicating positive market expectations regarding Takaichi's policies.
- U.S. Market Rebound: Major U.S. indexes rebounded post-election, with the S&P 500 rising 1.97% and the Nasdaq Composite climbing 2.18%, driven by strong performances from tech stocks like Nvidia and Oracle, which bolstered global investor confidence.
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- Increased Pressure on Software Sector: The introduction of new AI tools by Anthropic has triggered a sell-off in software data provider shares, intensifying uncertainty in the private credit market, particularly regarding lending risks to software companies.
- Decline in Asset Management Stocks: Ares Management fell over 12%, Blue Owl Capital dropped more than 8%, and KKR and TPG saw declines of nearly 10% and 7%, respectively, reflecting investor concerns about AI's potential impact on cash flows and default risks.
- Rising Default Risks: UBS Group has warned that in an aggressive disruption scenario, default rates in U.S. private credit could rise to 13%, significantly higher than the projected stress for leveraged loans and high-yield bonds, estimated at 8% and 4%, respectively.
- Liquidity Issues Intensified: Although strains in private credit predate AI concerns, Jeffrey C. Hooke noted that existing liquidity and loan extension issues have been exacerbated by recent developments, adding new challenges to an already pressured sector.
See More
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- Four Roses Brand Deal: Kirin Holdings has agreed to sell the Four Roses bourbon brand to E. & J. Gallo Winery for approximately $775 million (around 120 billion yen), enhancing Gallo's position in the premium spirits market.
- Genius Sports Acquisition: Genius Sports has agreed to acquire digital sports and gambling media company Legend for $1.2 billion, with $900 million in cash and $100 million in stock, financed through an $850 million loan, despite a 27% drop in stock price following the announcement.
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See More
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- Market Capitalization Loss: The software sector's selloff has wiped out nearly $1 trillion in market capitalization, leading the Dow Jones US Asset Managers Index to decline nearly 5% this week, reflecting investor concerns over loan and leverage exposure.
- Declining Private Equity Deal Volumes: Morgan Stanley noted that technology services deal volumes account for nearly 21% of overall private equity activity, with TPG, Carlyle, and KKR slightly above this level, indicating weakened market confidence in software-related investments.
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- Portfolio Review: Companies like Ares and KKR are reviewing their portfolios to assess the impact of AI on their software investments, demonstrating a cautious approach among asset managers in the face of market volatility.
See More
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- Investment Opportunities: This situation may present new investment opportunities in shares of business development companies that hold the debt of these affected companies.
See More
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- Private Credit Sector: The private credit sector is facing challenges, likened to "cockroaches" emerging from the software industry.
- Opportunities in Business Development Companies: This situation may present investment opportunities in business development companies that hold the debt of affected firms.
See More
