BLKMEDIUM SIGNALOPERATIONAL10-K

BlackRock completed a major acquisition of HPS Investment Partners on July 1, 2025, significantly expanding its credit investment management capabilities while showing mixed financial performance with revenue growth offset by margin compression.

The HPS acquisition represents a strategic expansion into the high-growth private credit market, with the transaction structured using exchangeable units that provides flexibility while maintaining control. However, the company is showing signs of integration costs and operational challenges, as evidenced by declining operating margins (29.1% vs 37.1% prior year) despite strong revenue growth.

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

BlackRock's financials reflect the impact of major acquisitions, with total assets growing 22.6% to $170B and revenue increasing 16.2% to $12.8B, demonstrating successful expansion. However, profitability metrics declined with net income falling 12.8% to $5.6B and operating cash flow dropping 20.8% to $3.9B, indicating integration costs and operational headwinds from the acquisitions. The overall picture suggests a company in active expansion mode with near-term margin pressure as it integrates significant new assets and capabilities.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+47.1%
$255.0M→$375.0M

Capital expenditure jumped 47.1% — major investment cycle underway; assess returns on deployment.

Total Assets
Balance Sheet
+22.6%
$138.6B→$170.0B

Asset base grew 22.6% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+21.5%
$89.3B→$108.5B

Liabilities increased 21.5% — monitor debt-to-equity ratio and interest coverage.

Operating Cash Flow
Cash Flow
-20.8%
$5.0B→$3.9B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Stockholders Equity
Balance Sheet
+17.7%
$47.5B→$55.9B

Equity base grew 17.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Revenue
P&L
+16.2%
$11.0B→$12.8B

Revenue growing 16.2% — solid top-line momentum, watch margins for quality of growth.

Net Income
P&L
-12.8%
$6.4B→$5.6B

Net income declined 12.8% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
-10.1%
$12.8B→$11.5B

Cash decreased 10.1% — monitor burn rate and upcoming capital needs.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-25
ADDED
As of January 31, 2026 , there were 155,541,536 shares of the registrant s common stock outstanding ( 163,156,051 on a fully diluted basis, including 7,614,515 Class B-2 common units of a consolidated subsidiary, BlackRock Saturn Subco, LLC, which are exchangeable on a one-for-one basis into common stock of the registrant).
On July 1, 2025, BlackRock completed the acquisition of 100% of the business and assets of HPS Investment Partners (the "HPS Transaction" or "HPS"), a leading global credit investment manager, with substantially all consideration paid in Class B-2 common units ("Subco Units") of BlackRock Saturn Subco, LLC ("Subco"), a consolidated subsidiary of the Company.
Concurrent with the acquisition, BlackRock Finance, Inc., Global Infrastructure Management, LLC ("GIP"), HPS, and their respective subsidiaries became wholly owned subsidiaries of Subco.
For additional information on the HPS Transaction see Note 3, Acquisitions , in the notes to the consolidated financial statements contained in Part II, Item 8 for additional information.
Product offerings include single- and multi-asset portfolios investing in equities, fixed income, private markets, liquid alternatives, digital assets, currencies and commodities, and money market instruments.
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REMOVED
As of January 31, 2025 , there were 155,253,443 shares of the registrant s common stock outstanding.
On October 1, 2024, BlackRock completed the acquisition of 100% of the issued and outstanding limited liability company interests of Global Infrastructure Management, LLC ("GIP" or the "GIP Transaction").
As a result of the closing of the GIP Transaction, BlackRock, Inc.
("BlackRock Funding")) ( New BlackRock ) became the ultimate parent company of BlackRock Finance, Inc.
(formerly known as BlackRock, Inc.) ( Old BlackRock ), GIP and their respective subsidiaries.
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