Financial Trends -- 7/10
Revenue accelerating from ~12% to +27% YoY. Adjusted operating margin expanding +130bps YoY
to 44.5%. Adjusted operating income growing strongly. FCF structurally positive (asset-light,
capex ~1.5% of revenue). One blemish: diluted share count up ~5.4% YoY from GIP/HPS deal
stock issuance (below 10% penalty threshold but a reversal of historical buyback-driven shrink).
No penalty modifiers apply.
Weight: 25%
Quarterly Financial Summary (Q1'24 -- Q1'26)
| Quarter | Revenue ($M) | YoY | Adj Op Margin% | Adj Op Income ($M) | Net Income ($M) | Adj Diluted EPS | Shares (M) |
|---|---|---|---|---|---|---|---|
| Q1'24 | $4,728 | +11.4% | 42.2% | $1,775 | $1,573 | $10.48 | 150.1 |
| Q2'24 | $4,805 | +7.7% | 44.1% | $1,881 | $1,495 | $9.99 | 149.7 |
| Q3'24 | $5,197 | +14.9% | 45.8% | $2,128 | $1,631 | $10.90 | 149.6 |
| Q4'24 | $5,677 | +22.6% | 45.5% | $2,326 | $1,670 | $10.63 | 157.0 |
| Q1'25 | $5,276 | +11.6% | 43.2% | $2,032 | $1,510 | $9.64 | 156.6 |
| Q2'25 | $5,423 | +12.9% | 43.3% | $2,099 | $1,593 | $10.19 | 156.3 |
| Q3'25 | $6,509 | +25.2% | 44.6% | $2,621 | $1,323 | $8.43 | 156.9 |
| Q4'25 | $7,008 | +23.4% | 45.0% | $2,848 | $1,127 | $7.16 | 165.4 |
| Q1'26 | $6,698 | +26.9% | 44.5% | $2,669 | $2,212 | $14.06 | 165.0 |
Key Trends
- Revenue accelerating from +11% to +27%: YoY growth bottomed at +7.7% in Q2'24, then re-accelerated through Q3-Q4'24 (+15-23%) and inflected further in Q3'25-Q1'26 (+25-27%). GIP/HPS consolidation contributed but organic base fee growth also improved meaningfully
- Adj op margin expanding from ~42% to ~44-45%: Trough of 42.2% in Q1'24 improved to 44.5% in Q1'26, +130bps YoY. Operating leverage on higher AUM base fees offsetting integration-related expenses
- GAAP net income volatile due to deal charges: Q3-Q4'25 depressed ($1.3B and $1.1B respectively) on GIP amortization and transaction costs. Q1'26 snapped back to $2.2B as charges rolled off
- Share count up ~5% from GIP/HPS stock issuance: 150.1M in Q1'24 to 165.0M in Q1'26 -- a reversal of the historical buyback-driven shrink trend. Below the 10% penalty threshold
- FCF structurally positive: Capex trivial at ~1.5% of revenue. Asset-light model generates consistent free cash flow regardless of cycle
Segment Revenue (Q1'26)
Annual Financial Summary (FY2021 -- FY2025)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue ($M) | $19,374 | $17,873 | $17,859 | $20,407 | $24,216 |
| Rev YoY | — | -7.7% | -0.1% | +14.3% | +18.7% |
| Adj Op Margin | 45.2% | 42.8% | 41.7% | 44.5% | 44.1% |
| Adj Op Income ($M) | $7,478 | $6,711 | $6,593 | $8,110 | $9,600 |
| Net Income ($M) | $5,901 | $5,178 | $5,502 | $6,369 | $5,553 |
| Diluted Shares (M) | 154.4 | 152.4 | 150.7 | 151.6 | 160.9 |
No penalty modifiers apply. Score: 7/10.
Source: Daloopa company_id 297, FYE December 31. Data sourced from Daloopa.
Source: Daloopa company_id 297, FYE December 31. Data sourced from Daloopa.