Ares Management Reports Q4 Earnings

Private equity firm misses Wall Street expectations on revenue and earnings per share

Published on Feb. 5, 2026

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Ares Management LP, a Los Angeles-based private equity firm, reported fourth-quarter net income of $54.2 million, or $0.08 per share. However, the results fell short of Wall Street expectations, with earnings per share of $1.45 versus the average analyst estimate of $1.71. The company also posted revenue of $1.5 billion in the quarter, missing the $1.63 billion forecast by analysts.

Why it matters

Ares Management's earnings and revenue miss highlights the challenges facing the private equity industry, which has seen increased competition and pressure on fees. The firm's stock has dropped 15% since the beginning of the year and 30% over the past 12 months, reflecting investor concerns about the company's performance.

The details

For the full year, Ares Management reported profit of $527.4 million, or $1.71 per share, on revenue of $4.12 billion. The company attributed the weaker-than-expected results to non-recurring costs. Ares Management is one of the largest alternative asset managers, with $349 billion in assets under management as of the end of 2025.

  • Ares Management reported its fourth-quarter and full-year 2025 earnings on February 5, 2026.

The players

Ares Management LP

A Los Angeles-based private equity firm with $349 billion in assets under management as of the end of 2025.

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The takeaway

Ares Management's earnings miss underscores the challenges facing the private equity industry, which has seen increased competition and pressure on fees. The firm's stock performance reflects investor concerns about its ability to maintain strong financial results in the current market environment.