# KKR & Co. Inc. (KKR) Q2 2025 Financial Results Summary
KKR & Co. Inc. (NYSE: KKR) released its second-quarter financial results on July 31, 2025.
## Key Financial Highlights
– **Overall Performance**
– Fee Related Earnings (FRE) rose by **17%** year-over-year to **$887 million** ($0.98 per adjusted share).
– Adjusted Net Income (ANI) increased **9%** year-over-year to **$1.1 billion** ($1.18 per adjusted share).
– Total Operating Earnings (TOE) grew **14%** year-over-year to **$1.2 billion** ($1.33 per adjusted share).
– **Revenues**
– Total revenues reached **$5.1 billion**, compared to **$4.2 billion** in Q2 2024, reflecting a growth of **21%** year-over-year.
– Asset Management and Strategic Holdings revenues were **$1.8 billion**, an increase from **$1.6 billion** year-over-year.
– The Insurance segment reported revenues of **$3.3 billion**, up from **$2.6 billion**, indicating a **25%** year-over-year growth.
– **Expansions and Acquisitions**
– KKR announced a strategic acquisition of **HealthCare Royalty Partners**, adding approximately **$3 billion** to assets under management (AUM), enhancing capabilities in biopharma royalty and credit investing.
– **Investment Metrics**
– Assets Under Management (AUM) grew to **$686 billion**, reflecting a **14%** increase year-over-year.
– Fee Paying Assets Under Management (FPAUM) reached **$556 billion**, also up **14%** year-over-year.
– New Capital Raised was **$28 billion** for the quarter and **$109 billion** for the trailing twelve months (LTM).
– Capital Invested stood at **$18 billion** for the quarter and **$83 billion** LTM.
## Segment Breakdown
### 1. **Asset Management Segment**
– Total Asset Management Segment revenues reached **$1.9 billion**, marking an increase from **$1.7 billion** year-over-year.
– Management Fees hit **$995 million**, up **17%** from **$847 million** in Q2 2024.
– Performance Fees were **$53 million**, showing an increase compared to **$37 million** from the previous year.
### 2. **Insurance Segment**
– Net Investment Income was reported at **$1.8 billion**, compared to **$1.5 billion** in the same quarter last year.
– The net cost of insurance rose to **$1.3 billion**, from **$1.1 billion** year-over-year.
### 3. **Strategic Holdings Segment**
– Operating earnings fell to **$29 million**, down **29%** compared to **$41 million** a year ago.
## Earnings Performance
– Net Income attributable to KKR’s common stockholders was **$472 million**, compared to **$668 million** in the same quarter last year, marking a decrease of **29%**.
– **Basic Earnings per Share** (EPS) was **$0.53**, down from **$0.75** in Q2 2024.
## Capital Return Measures
– KKR declared a **quarterly dividend of $0.185 per share** of common stock for the second quarter, payable on August 26, 2025, to holders of record as of August 11, 2025.
– The company also engaged in a total capital expenditure of **$590 million** for subordinated notes due in 2065.
– Since December 31, 2024, KKR has used **$110 million** under its share repurchase program to retire equity awards and repurchase shares.
## Performance Insights
– **Fee Related Earnings** of **$3.6 billion** for the LTM showed an increase of **34%** year-over-year.
– Total Operating Earnings for the LTM also grew by **26%** to **$4.7 billion**.
– The firm appears well-positioned for growth with positive momentum entering the second half of 2025, targeting continued improvements in its operating earnings and capital activities.
This summary encapsulates KKR & Co. Inc.’s financial results for Q2 2025, highlighting substantial growth in fee-related earnings, total revenues, and robust asset management metrics amidst ongoing strategic initiatives and acquisitions.
### CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands)
| 2Q’24 | 2Q’25 | 2Q’24 YTD | 2Q’25 YTD | |
|---|---|---|---|---|
| Revenues | ||||
| Asset Management and Strategic Holdings Fees and Other | 822,324 | 924,434 | 1,515,850 | 1,811,244 |
| Capital Allocation-Based Income (Loss) | 738,125 | 910,732 | 2,001,067 | 2,069,837 |
| Total Revenues | 1,560,449 | 1,835,166 | 3,516,917 | 3,881,081 |
| Insurance Net Premiums | 935,794 | 730,242 | 6,972,316 | 1,053,606 |
| Policy Fees | 333,900 | 334,974 | 662,847 | 673,447 |
| Net Investment Income | 1,580,498 | 1,863,346 | 3,100,400 | 3,646,626 |
| Net Investment-Related Gains (Losses) | (302,620) | 239,151 | (544,106) | (1,197,186) |
| Other Income | 63,889 | 85,964 | 120,274 | 141,452 |
| Total Revenues | 4,171,910 | 5,088,843 | 13,828,648 | 8,199,026 |
| Expenses | ||||
| Asset Management and Strategic Holdings Compensation and Benefits | 895,165 | 1,077,597 | 2,211,613 | 2,410,700 |
| Occupancy and Related Charges | 23,306 | 34,640 | 46,846 | 69,105 |
| General, Administrative and Other | 304,489 | 323,997 | 582,470 | 624,329 |
| Total Expenses | 1,222,960 | 1,436,234 | 2,840,929 | 3,104,134 |
| Insurance Net Policy Benefits and Claims | 2,199,160 | 2,791,705 | 9,460,229 | 4,499,999 |
| Amortization of Policy Acquisition Costs | 32,808 | 80,800 | 29,056 | 178,771 |
| Interest Expense | 65,750 | 70,830 | 120,317 | 140,401 |
| General, Administrative and Other | 180,697 | 208,416 | 364,552 | 389,981 |
| Total Expenses | 2,723,369 | 3,310,210 | 10,418,344 | 5,473,265 |
| Investment Income (Loss) – Asset Management and Strategic Holdings | ||||
| Net Gains (Losses) from Investment Activities | 392,667 | 747,734 | 1,030,829 | 1,834,325 |
| Dividend Income | 471,349 | 336,143 | 716,406 | 610,033 |
| Interest Income | 903,861 | 809,883 | 1,793,963 | 1,595,740 |
| Interest Expense | (783,253) | (707,391) | (1,537,317) | (1,361,890) |
| Total Investment Income (Loss) | 984,624 | 1,186,369 | 2,003,881 | 2,678,208 |
| Income Tax Expense (Benefit) | 216,969 | 174,304 | 486,170 | 260,873 |
| Redeemable Noncontrolling Interests | 29,666 | 68,175 | 62,344 | 76,669 |
| Noncontrolling Interests | 295,644 | 776,166 | 674,602 | 1,638,094 |
| Preferred Stock Dividends | — | 37,736 | — | 37,736 |
| Net Income (Loss) – KKR Common Stockholders | 667,926 | 472,387 | 1,350,140 | 286,463 |
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### CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
| 2Q’24 | 2Q’25 | |
|---|---|---|
| Assets | ||
| Cash and Cash Equivalents | 11,644,317 | 10,729,004 |
| Investments – Asset Management Segment | 115,427,392 | 9,360,072 |
| Total Assets | 127,071,709 | 20,089,076 |
| Liabilities | ||
| Debt Obligations | 47,361,299 | 9,305,979 |
| Total Liabilities | 47,361,299 | 9,305,979 |
| Stockholders’ Equity | 25,675,825 | 9,565,438 |
