BlackRock : Q2 2025 BlackRock, Inc. Earnings Release

Published: 2025-07-15 08:32:12 ET BLK

Published on 07/15/2025 at 08:32

Caroline Rodda 212.810.3442

Patrick Scanlan 212.810.3622

Laurence D. Fink, Chairman and CEO:

"For many years, BlackRock has worked to serve the ambitions of each and every client around the world - from the largest asset owners to individuals just getting their start with investing. We design and deliver strategies and products that fit their unique long-term needs and aspirations. We deliver in the way that best serves each client, whether it's through whole portfolio solutions, opportunistic investments, or customized models and SMAs.

"Our expanding client relationships are resonating in higher, more diversified organic base fee growth. We generated 6% organic base fee growth for the second quarter and the first half of 2025, and 7% over the last twelve months.

"BlackRock's sustained growth has been powered by our whole portfolio approach, being the first firm to bring together active and index at scale. And now we're building on our foundational platform to redefine the whole portfolio once again by integrating public and private markets across asset management and technology.

"iShares ETFs had a record first half in flows, and technology ACV growth reached a fresh high of 16%. This core strength, alongside client demand for private markets, digital assets, Aperio, and our tech and data-driven systematic strategies, propelled another consecutive quarter of above-target organic base fee growth and record AUM of $12.5 trillion.

"We surpassed the fundraising target for GIP's fifth flagship, raising $25.2 billion and delivering the largest-ever client capital raise in a private infrastructure fund. We announced the development of a custom target date fund glidepath that strategically allocates across public and private markets. And we're attracting a new and increasingly global generation of investors through things like our digital assets offerings and recently launched funds in India through our joint venture Jio BlackRock.

"Our comprehensive platform and the depth of our client relationships set us apart from traditional or private markets firms in the industry. Our recent closing of HPS will help us build even more with clients as we head into our seasonally strongest second half of the year. These are just the early days in our next phase of even stronger growth."

$152 billion of year-to-date total net inflows led by a record first half for

iShares® ETFs, alongside private markets and cash net inflows

$68 billion of quarterly total net inflows reflect impact of a single institutional client's $52 billion lower-fee index partial redemption

13% increase in revenue year-over-year reflects positive impact of markets, organic base fee growth and fees related to the GIP Transaction, as well as higher technology services and subscription revenue, partially offset by lower performance fees

4% decrease in year-over-year GAAP operating income primarily as a result of noncash acquisition-related expenses, which have been excluded from as-adjusted results

12% increase in year-over-year as adjusted operating income

2% increase in diluted EPS year-over-year (16% as adjusted) also reflects higher nonoperating income, partially offset by a higher effective tax rate and a higher diluted share count in the current quarter

$375 million of share repurchases in the current quarter

Closed acquisition of HPS Investment Partners on July 1st, adding

$165 billion of client AUM and $118 billion of fee-paying AUM

FINANCIAL RESULTS

NET FLOW HIGHLIGHTS(1)

(in millions, except per share data)

Q2 2025

Q2 2024

(in billions) 2025

YTD 2025

AUM

$ 12,527,590

$ 10,645,721

Long-term net flows: $

129

% change

18 %

Average AUM

$ 11,974,829

$ 10,457,851

By region:

% change

15 %

Americas $

119

Total net flows

$ 67,737

$ 81,565

EMEA

GAAP basis:

APAC

(52 )

(56 )

Revenue

$ 5,423

$ 4,805

By client type:

% change

13 %

Operating income

$ 1,731

$ 1,800

Retail: $

% change

(4 )%

(1 )

Operating margin

31.9 %

37.5 %

International

Net income(1)

$ 1,593

$ 1,495

% change

7 %

ETFs: $

192

Diluted EPS

$ 10.19

$ 9.99

Active

% change

2 %

Core equity

Weighted-average

Digital assets

diluted shares

156.3

149.7

Fixed income

% change

4 %

Precision & other

As Adjusted(2):

Institutional:

(41 )

(78 )

Operating income

2,099

1,881

Active

% change

12 %

Index

(48 )

(93 )

Operating margin

43.3 %

44.1 %

Net income(1)

1,883

1,550

Cash management net flows

% change

21 %

Diluted EPS

12.05

10.36

% change

16 %

Total net flows

152

_________________________

(1)Net income represents net income attributable to BlackRock, Inc.

(2)See pages 14 through 16 for the reconciliation to accounting principles generally accepted in the United States ("GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

(1)Totals may not add due to rounding.

Q2 2025

Base fees(1)

June 30, 2025

and securities

Q2 2025

June 30, 2025

and securities

AUM

lending revenue

(in millions), (unaudited)

Net flows

AUM

lending revenue

% of Total

RESULTS BY PRODUCT TYPE

Equity

$ 28,781

$ 6,905,438

2,123

54%

48%

Fixed income

(4,664 )

3,087,297

945

25%

21%

Multi-asset

(6,743 )

1,076,709

319

Alternatives:

Private markets

6,819

215,244

499

11%

Liquid alternatives

2,948

86,670

157

Alternatives subtotal

9,767

301,914

656

15%

Digital assets

14,139

79,551

Currency and commodities(2)

4,509

106,980

Long-term

45,789

11,557,889

4,150

92 %

93 %

Cash management

21,948

969,701

304

Total

$ 67,737

$ 12,527,590

4,454

100 %

RESULTS BY CLIENT TYPE

Retail

$ 1,957

$ 1,100,997

1,053

24%

ETFs

84,860

4,748,768

1,875

38%

42%

Institutional:

Active

6,727

2,277,877

981

18%

22%

Index

(47,755 )

3,430,247

241

27%

Institutional subtotal

(41,028 )

5,708,124

1,222

45%

27%

Long-term

45,789

11,557,889

4,150

92 %

93 %

Cash management

21,948

969,701

304

Total

$ 67,737

$ 12,527,590

4,454

100 %

RESULTS BY INVESTMENT STYLE

Active

$ 1,413

$ 3,051,873

1,962

24%

44%

ETFs

84,860

4,748,768

1,875

38%

42%

Non-ETF index

(40,484 )

3,757,248

313

30%

Long-term

45,789

11,557,889

4,150

92 %

93 %

Cash management

21,948

969,701

304

Total

$ 67,737

$ 12,527,590

4,454

100 %

(1)Base fees include investment advisory and administration fees.

(2)Amounts include commodity exchange-traded funds ("ETFs") and exchange-traded products ("ETPs").

INVESTMENT PERFORMANCE AT JUNE 30, 2025(1)

One-year period

Three-year period

Five-year period

Fixed income:

Actively managed AUM above benchmark or peer median

Taxable 73%

84%

83%

Tax-exempt 30%

61%

64%

Index AUM within or above applicable tolerance 96%

Equity:

Actively managed AUM above benchmark or peer median

Fundamental 40%

99%

75%

100%

54%

Systematic 47%

95%

93%

Index AUM within or above applicable tolerance 95%

99%

100%

(1)Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 18 for performance disclosure detail.

Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Tuesday, July 15, 2025 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (786) 460-7166, or from outside the United States, (800) 401-3551, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 1723819). A live, listen-only webcast will also be available via the investor relations section of https://www.blackrock.com.

The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Tuesday, July 15, 2025. To access the replay of the webcast, please visit the investor relations section of https://www.blackrock.com.

BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit https://www.blackrock.com/corporate.

Three Months

Three Months Ended Ended

June 30, March 31,

2025

2024

Change

2025

Change

Revenue

Investment advisory, administration fees and

securities lending revenue:

Investment advisory and administration fees

$ 4,283

$ 3,721

$ 562

$ 4,244

$ 39

Securities lending revenue

171

154

157

Total investment advisory, administration fees and securities lending revenue

4,454

3,875

579

4,401

Investment advisory performance fees

164

(70 )

Technology services and subscription revenue

499

395

104

436

Distribution fees

320

318

321

(1 )

Advisory and other revenue

(2 )

Total revenue

5,423

4,805

618

5,276

147

Expense

Employee compensation and benefits

1,764

1,503

261

1,741

Sales, asset and account expense:

Distribution and servicing costs

576

539

570

Direct fund expense

441

358

392

Sub-advisory and other

(1 )

Total sales, asset and account expense

1,063

929

134

1,009

General and administration expense

689

534

155

711

(22 )

Restructuring charge

Amortization of intangible assets

137

117

Total expense

3,692

3,005

687

3,578

114

Operating income

1,731

1,800

(69 )

1,698

Nonoperating income (expense)

Net gain (loss) on investments

550

162

388

492

Interest and dividend income

144

178

(34 )

173

(29 )

Interest expense

(173 )

(126 )

(47 )

(166 )

(7 )

Total nonoperating income (expense)

521

214

307

456

Income before income taxes

2,252

2,014

238

1,763

489

Income tax expense

587

477

110

248

339

Net income

1,665

1,537

128

1,515

150

Less:

Net income (loss) attributable to noncontrolling

interests 72

Net income attributable to BlackRock, Inc. $ 1,593

$ 1,495

$ 98

$ 1,510

$ 83

Weighted-average common shares outstanding

Basic

154.9

148.4

6.4

155.0

(0.2 )

Diluted

156.3

149.7

6.6

156.6

(0.4 )

Earnings per share attributable to BlackRock, Inc.

common stockholders

Basic

$ 10.29

$ 10.07

$ 0.22

9.74

$ 0.55

Diluted

$ 10.19

$ 9.99

$ 0.20

9.64

$ 0.55

Cash dividends declared and paid per share

$ 5.21

$ 5.10

$ 0.11

5.21

$ -

Supplemental information:

AUM (end of period)

$ 12,527,590

$ 10,645,721

$ 1,881,869

$ 11,583,928

$ 943,662

Shares outstanding (end of period)

154.8

148.2

6.6

155.0

(0.3

)

GAAP:

Operating margin

31.9 %

37.5 %

(560 ) bps

32.2 %

(30

) bps

Effective tax rate

26.9 %

24.2 %

270 bps

14.1 %

1,280

bps

As adjusted:

Operating income (1)

$ 2,099

$ 1,881

$ 218

$ 2,032

$ 67

Operating margin (1)

Nonoperating income (expense), less net income

43.3 %

44.1 %

(80 ) bps

43.2 %

bps

(loss) attributable to noncontrolling

interests (2) $

404

165

$ 239

$ 329

Net income attributable to BlackRock, Inc. (3)

$ 1,883

$ 1,550

$ 333

$ 1,770

$ 113

Diluted earnings attributable to BlackRock, Inc.

common stockholders per share (3)

$ 12.05

$ 10.36

$ 1.69

$ 11.30

$ 0.75

Effective tax rate

24.8 %

24.2 %

bps

16.0 %

880

bps

See pages 14 through 16 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.

Six Months Ended

June 30,

2025 2024

Change

Revenue

Investment advisory, administration fees and

securities lending revenue:

Investment advisory and administration fees

8,527

7,348

1,179

Securities lending revenue

328

305

Total investment advisory, administration fees and securities lending revenue

8,855

7,653

1,202

Investment advisory performance fees

154

368

(214 )

Technology services and subscription revenue

935

772

163

Distribution fees

641

628

Advisory and other revenue

114

112

Total revenue

10,699

9,533

1,166

Expense

Employee compensation and benefits

3,505

3,083

422

Sales, asset and account expense:

Distribution and servicing costs

1,146

1,057

Direct fund expense

833

696

137

Sub-advisory and other

Total sales, asset and account expense

2,072

1,817

255

General and administration expense

1,400

1,063

337

Restructuring charge

Amortization of intangible assets

254

177

Total expense

7,270

6,040

1,230

Operating income

3,429

3,493

(64 )

Nonoperating income (expense)

Net gain (loss) on investments

608

333

275

Interest and dividend income

317

319

(2 )

Interest expense

(339 )

(218 )

(121 )

Total nonoperating income (expense)

586

434

152

Income before income taxes

4,015

3,927

Income tax expense

835

767

Net income

3,180

3,160

Less:

Net income (loss) attributable to noncontrolling interests

(15 )

Net income attributable to BlackRock, Inc.

$ 3,103

$ 3,068

$ 35

Weighted-average common shares outstanding

Basic

155.0

148.6

6.4

Diluted

156.4

149.9

6.6

Earnings per share attributable to BlackRock, Inc.

common stockholders

Basic

20.03

20.65

(0.62 )

Diluted

19.83

20.47

(0.64 )

Cash dividends declared and paid per share

10.42

10.20

0.22

Supplemental information:

AUM (end of period)

12,527,590

$ 10,645,721

$ 1,881,869

Shares outstanding (end of period)

154.8

148.2

6.6

GAAP:

Operating margin

32.0 %

36.6 %

(460 ) bps

Effective tax rate

21.2 %

20.0 %

120 bps

As adjusted:

Operating income (1)

4,131

$ 3,656

$ 475

Operating margin (1)

43.2 %

43.1 %

10 bps

Nonoperating income (expense), less net income

(loss) attributable to noncontrolling

interests (2) $

479

304

175

Net income attributable to BlackRock, Inc. (3) $

3,653

3,023

630

Diluted earnings attributable to BlackRock, Inc.

common stockholders per share (3) $

23.35

20.17

3.18

Effective tax rate 20.8 % 23.7 % (290 ) bps

March 31,

Net inflows

Market

June 30,

Average

2025

(outflows)

Realizations(1)

change

impact(2)

2025

AUM(3)

Equity

$ 6,204,549

$ 28,781

$ -

$ 594,781

$ 77,327

$ 6,905,438

$ 6,497,393

Fixed income

3,006,670

(4,664 )

(543 )

30,932

54,902

3,087,297

3,024,167

Multi-asset

1,002,681

(6,743 )

60,155

20,616

1,076,709

1,033,261

Alternatives:

Private markets

212,354

6,819

(6,474 )

(1,068 )

3,613

215,244

214,708

Liquid alternatives

79,356

2,948

(29)

3,769

626

86,670

82,849

Alternatives subtotal

291,710

9,767

(6,503 )

2,701

4,239

301,914

297,557

Digital assets

50,329

14,139

15,077

79,551

65,710

Currency and commodities(4)

97,355

4,509

4,771

345

106,980

101,838

Long-term

10,653,294

45,789

(7,046 )

708,417

157,435

11,557,889

11,019,926

Cash management

930,634

21,948

3,031

14,088

969,701

954,903

Total

$ 11,583,928

$ 67,737

$ (7,046 )

$ 711,448

$ 171,523

$ 12,527,590

$ 11,974,829

March 31,

Net inflows

Market

June 30,

Average

2025

(outflows)

Realizations(1)

change

impact(2)

2025

AUM(3)

Retail: Equity

$ 502,678

$ 797

$ -

$ 45,593

$ 8,765

$ 557,833

$ 525,736

Fixed income

323,508

569

3,825

5,722

333,624

327,191

Multi-asset

153,420

(1,845 )

10,444

833

162,852

156,711

Private markets

16,017

767

(476 )

117

398

16,823

16,571

Liquid alternatives

27,257

1,669

760

179

29,865

28,556

Retail subtotal

1,022,880

1,957

(476 )

60,739

15,897

1,100,997

1,054,765

ETFs:

Equity

3,111,438

22,066

298,889

22,724

3,455,117

3,245,785

Fixed income

1,039,115

43,617

7,451

11,041

1,101,224

1,065,853

Multi-asset

10,603

475

633

215

11,926

11,210

Digital assets

50,329

14,139

15,077

79,551

65,710

Commodities

91,276

4,563

4,891

220

100,950

95,843

ETFs subtotal

4,302,761

84,860

326,941

34,206

4,748,768

4,484,401

Institutional:

Active: Equity

217,390

(217 )

19,634

5,291

242,098

228,535

Fixed income

853,873

4,995

(543 )

12,286

11,321

881,932

866,013

Multi-asset

835,479

(5,382 )

48,983

19,541

898,621

862,105

Private markets

196,337

6,052

(5,998 )

(1,185 )

3,215

198,421

198,137

Liquid alternatives

52,099

1,279

(29)

3,009

447

56,805

54,293

Active subtotal

2,155,178

6,727

(6,570 )

82,727

39,815

2,277,877

2,209,083

Index

3,172,475

(47,755)

238,010

67,517

3,430,247

3,271,677

Institutional subtotal

5,327,653

(41,028)

(6,570)

320,737

107,332

5,708,124

5,480,760

Long-term

$ 10,653,294

$ 45,789

$ (7,046 )

$ 708,417

$ 157,435

$ 11,557,889

$ 11,019,926

(1)Realizations represent return of capital/return on investments.

(2)Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

(4)Amounts include commodity ETFs and ETPs.

Disclaimer

BlackRock Inc. published this content on July 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 15, 2025 at 12:31 UTC.