ARESMEDIUM SIGNALOPERATIONAL10-K

ARES has significantly expanded its share count, enhanced its wealth management distribution capabilities, and refined its AUM measurement methodology while delivering strong financial growth.

The 8.2% increase in Class A shares outstanding suggests either equity raises for growth capital or employee compensation, while the addition of registered broker-dealer subsidiary AMCM indicates strategic expansion into wealth management distribution. The refined AUM definitions using GAV (Gross Asset Value) and clearer IGAUM categories suggest more sophisticated asset management operations and potentially better fee generation capabilities.

Comparing 2026-02-25 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

ARES delivered robust top-line growth with revenue increasing 28.9% to $4.8B, though this came with elevated costs including a 94% surge in interest expense and 35% increase in SG&A, likely reflecting business expansion and higher borrowing costs. Despite margin pressure, net income still grew a healthy 13.7% to $527M, while the balance sheet strengthened with stockholders' equity up 20.7% to $4.3B and total assets expanding 15.1% to $28.6B. The 44% reduction in capex alongside strong operating cash flow growth of 17% suggests the company is generating solid returns on previous investments while maintaining financial flexibility.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+94.1%
$36.8M→$71.4M

Interest expense surged 94.1% — significant debt increase or rising rates materially impacting earnings.

Capital Expenditure
Cash Flow
-44.5%
$33.2M→$18.4M

Capex reduced 44.5% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

SG&A Expense
P&L
+35.2%
$736.5M→$996.1M

SG&A up 35.2% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Revenue
P&L
+28.9%
$3.7B→$4.8B

Revenue growing 28.9% — solid top-line momentum, watch margins for quality of growth.

Stockholders Equity
Balance Sheet
+20.7%
$3.5B→$4.3B

Equity base grew 20.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Cash Flow
Cash Flow
+17%
$2.8B→$3.3B

Operating cash flow grew 17% — strong conversion of earnings to cash, healthy business fundamentals.

Total Assets
Balance Sheet
+15.1%
$24.9B→$28.6B

Asset base grew 15.1% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+14%
$17.5B→$19.9B

Liabilities increased 14% — monitor debt-to-equity ratio and interest coverage.

Net Income
P&L
+13.7%
$463.7M→$527.4M

Net income grew 13.7% — bottom-line growth signals improving overall business health.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-27
ADDED
As of February 19, 2026, there were 220,902,613 shares of the registrant s Class A common stock outstanding, 3,489,911 shares of the registrant s non-voting common stock outstanding, 1,000 shares of the registrant s Class B common stock outstanding, 105,079,121 shares of the registrant s Class C common stock outstanding and 30,000,000 shares of the registrant s Series B mandatory convertible preferred stock outstanding.
Through our registered broker-dealer subsidiary, Ares Management Capital Markets LLC ( AMCM ), AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel.
For Real Assets funds that we manage where management fees are based on gross asset value, net operating income or similar metrics including their equivalents ( GAV ), our AUM represents the sum of the GAV of such funds, undrawn debt (including any amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods).
GAV typically refers to the fair value of a fund s total assets.
For our funds other than CLOs, our FPAUM represents the amount of limited partner capital commitments for certain closed-end funds within the reinvestment period, the amount of limited partner invested capital for the aforementioned closed-end funds beyond the reinvestment period and the portfolio value, GAV or NAV.
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REMOVED
As of February 21, 2025 there were 204,107,275 of the registrant s shares of Class A common stock outstanding, 3,489,911 of the registrant s shares of non-voting common stock outstanding, 1,000 shares of the registrant s Class B common stock outstanding, 107,811,420 of the registrant s Class C common stock outstanding and 30,000,000 of the registrant s Series B mandatory convertible preferred stock outstanding.
AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel.
With respect to Ares Capital Corporation (NASDAQ: ARCC) ( ARCC ), Ares Strategic Income Fund ( ASIF ), our open-ended European direct lending fund and our infrastructure private business development company ( BDC ) AUM, only Part II Fees may be generated from IEAUM; incentive generating AUM or IGAUM refers to the AUM of our funds and other entities that are currently generating carried interest and incentive fees on a realized or unrealized basis.
ARCC, ASIF, our open-ended European direct lending fund and our infrastructure private BDC are only included in IGAUM when Part II Fees are being generated; management fees refers to fees we earn for advisory services provided to our funds, which are generally based on a defined percentage of fair value of assets, total commitments, invested capital, net asset value, net investment income, total assets or par value of the investment portfolios managed by us.
Management fees include Part I Fees, a quarterly fee based on the net investment income of certain funds; net performance income refers to performance income net of related compensation that is typically payable to our professionals; our funds refers to the funds, alternative asset companies, trusts, co-investment vehicles and other entities and accounts that are managed or co-managed by the Ares Operating Group, and which are structured to pay fees.
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