BlackRock (BLK) BLK Q3 Financial Results Summary
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BlackRock, Inc. (BLK) Q3 2025 Financial Results Summary
BlackRock, Inc. (NYSE: BLK) released its financial results for the third quarter of 2025 on October 14, 2025. Below is a summary of the key highlights and figures from the report.
Financial Overview
- Total Quarterly Net Inflows: $205 billion, marking a record quarter for iShares® ETFs. This resulted in an annualized organic base fee growth of 10%.
- Total Assets Under Management (AUM): Reached $13.46 trillion, a 17% increase compared to $11.48 trillion in Q3 2024.
- Average AUM: Increased to $12.96 trillion, reflecting a 17% year-over-year growth.
Revenue and Income Metrics
- Revenue: $6.51 billion, representing a 25% increase from $5.20 billion in Q3 2024.
- Operating Income (GAAP): $1.96 billion, down 3% from $2.01 billion in Q3 2024.
- Operating Margin (GAAP): 30.0%, compared to 38.6% in the same quarter last year.
- Net Income: $1.32 billion, down 19% compared to $1.63 billion in Q3 2024.
- GAAP Diluted EPS: $8.43, a 23% decrease from $10.90 in Q3 2024.
- As Adjusted Operating Income: $2.62 billion, reflecting a 23% increase year-over-year, while the operating margin stood at 44.6%.
Dividends and Share Repurchase
- BlackRock declared a quarterly dividend of $5.21 per share, up slightly from $5.10 in Q3 2024.
- Share Repurchases: In Q3 2025, the company repurchased $375 million worth of shares.
Performance Highlights
- Base Fees: Increased by $1.0 billion compared to Q3 2024, driven by organic base fee growth and the impact of market beta, alongside contributions from recent acquisitions.
- Securities Lending Revenue: Increased to $203 million, up from $149 million in Q3 2024, primarily due to higher average balances on securities lent.
Client Type and Investment Style Breakdown
- Long-term Net Flows:
- Equities: $46.0 billion
- Fixed Income: $47.6 billion
- Multi-Asset: $33.6 billion
- Alternatives: $16.3 billion from private markets.
- ETFs: Total ETF net flows reached $153 billion, contributing significantly to the overall inflows.
Tax and Non-operating Income
- Effective Tax Rate: 25.2%, slightly down from 26.0% in Q3 2024.
- Non-operating income recorded a loss of $106 million, which significantly declined from a gain of $190 million in Q3 2024.
Year-to-Date Performance
- For the nine months ending September 30, 2025:
- Total Revenue: $17.21 billion, up 17% from $14.73 billion in the same period of 2024.
- Net Income: $4.43 billion, compared to $4.70 billion in 2024, a 5% decrease.
- Diluted EPS: $28.21, down 11% year-over-year.
Key Contributing Factors
- The decrease in diluted EPS and net income was largely attributed to non-cash acquisition-related expenses and reduced nonoperating income.
- The recent acquisitions of HPS Investment Partners and Preqin have begun to show positive contributions to AUM and revenue.
BlackRock continues to strengthen its market position with a focus on expanding its investment platforms while navigating through the implications of recent acquisitions and market fluctuations. The company anticipates further growth in the fourth quarter, bolstered by a unified platform and enhanced client engagement strategies.
| Revenue | Three Months Ended | Three Months Ended | Change | Three Months Ended | Change |
|---|---|---|---|---|---|
| September 30, 2025 | September 30, 2024 | June 30, 2025 | |||
| Investment advisory, administration fees and securities lending revenue: | |||||
| Investment advisory and administration fees | $4,843 | $3,881 | $962 | $4,283 | $560 |
| Securities lending revenue | $203 | $149 | $54 | $171 | $32 |
| Total investment advisory, administration fees and securities lending revenue | $5,046 | $4,030 | $1,016 | $4,454 | $592 |
| Investment advisory performance fees | $516 | $388 | $128 | $94 | $422 |
| Technology services and subscription revenue | $515 | $403 | $112 | $499 | $16 |
| Distribution fees | $355 | $323 | $32 | $320 | $35 |
| Advisory and other revenue | $77 | $53 | $24 | $56 | $21 |
| Total revenue | $6,509 | $5,197 | $1,312 | $5,423 | $1,086 |
| Expense | |||||
| Employee compensation and benefits | $2,357 | $1,578 | $779 | $1,764 | $593 |
| Sales, asset and account expense: | |||||
| Distribution and servicing costs | $638 | $549 | $89 | $576 | $62 |
| Direct fund expense | $464 | $379 | $85 | $441 | $23 |
| Sub-advisory and other | $60 | $34 | $26 | $46 | $14 |
| Total sales, asset and account expense | $1,162 | $962 | $200 | $1,063 | $99 |
| General and administration expense | $782 | $562 | $220 | $689 | $93 |
| Restructuring charge | $- | $- | $- | $39 | $-(39) |
| Amortization and impairment of intangible assets | $253 | $89 | $164 | $137 | $116 |
| Total expense | $4,554 | $3,191 | $1,363 | $3,692 | $862 |
| Operating income | $1,955 | $2,006 | $-(51) | $1,731 | $224 |
| Nonoperating income (expense) | |||||
| Net gain (loss) on investments | $64 | $177 | $-(113) | $550 | $-(486) |
| Net interest income (expense) | $-(22) | $82 | $-(104) | $-(29) | $7 |
| Total nonoperating income (expense) | $42 | $259 | $-(217) | $521 | $-(479) |
| Income before income taxes | $1,997 | $2,265 | $-(268) | $2,252 | $-(255) |
| Income tax expense | $470 | $574 | $-(104) | $587 | $-(117) |
| Net income | $1,527 | $1,691 | $-(164) | $1,665 | $-(138) |
| Less: Net income (loss) attributable to noncontrolling interests (NCI) – consolidated sponsored investment products (CIPs) | $134 | $60 | $74 | $72 | $62 |
| Net income (loss) attributable to NCI – Subco Units | $70 | $- | $70 | $- | $70 |
| Net income (loss) attributable to BlackRock, Inc. | $1,323 | $1,631 | $-(308) | $1,593 | $-(270) |
| Weighted-average common shares outstanding | |||||
| Basic | 154.9 | 148.0 | 6.9 | 154.9 | 0.1 |
| Diluted | 156.9 | 149.6 | 7.3 | 156.3 | 0.7 |
| Earnings per share attributable to BlackRock, Inc. common stockholders | |||||
| Basic | $8.54 | $11.02 | $-(2.48) | $10.29 | $-(1.75) |
| Diluted | $8.43 | $10.90 | $-(2.47) | $10.19 | $-(1.76) |
| Cash dividends declared and paid per share | $5.21 | $5.10 | $0.11 | $5.21 | $- |
| Supplemental information: AUM (end of period) | $13,463,625 | $11,475,362 | $1,988,263 | $12,527,590 | $936,035 |
| Shares outstanding including Subco Units | 163.2 | 148.0 | 15.3 | 154.8 | 8.5 |
| GAAP: Operating margin | 30.0% | 38.6% | (860 bps) | 31.9% | (190 bps) |
| Effective tax rate | 25.2% | 26.0% | (80 bps) | 26.9% | (170 bps) |