Ares Management Corp Earnings Summary — Q1 2026

• Revenue grew 28.25% year-over-year to $1.396 billion, driven by robust transaction-based revenues.
• Net income saw a significant jump of 24.15% YoY, reaching $253.05 million for the quarter.
• Operating income improved significantly from the prior year period ($227.97M vs $74.48M in Q1 2025).
• Non-operating income contributed $161.97 million to the bottom line, reflecting gains on investments.
• Cost of revenue remains the largest expense head at $920.74 million, though gross profit increased 53.9% YoY.
• The firm continues to scale management-fee related earnings as a core profitability gauge.
• Ares is benefiting from secular tailwinds in bank disintermediation and the 'private credit' boom.

Management emphasizes the long-term visibility provided by Fee Related Earnings (FRE) and Distributable Earnings (DE), noting a dominant market position in private credit and consistent organic fundraising momentum.

Improving

Ares has significantly expanded its operating profitability and revenue base compared to the same quarter last year, reflecting high-performance phases and a successful pivot toward diversified global investment platforms.

The company is positioned as a primary beneficiary of the bank disintermediation trend with significant tailwinds in alternative asset management, particularly in Credit and Real Estate secondaries.