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Mar 31
Blue Owl Capital Q1 2025 Earnings Report
Blue Owl Capital reported increased AUM, fee-related earnings, and steady earnings per share in Q1 2025.
Key Takeaways
Blue Owl Capital posted solid results for Q1 2025, with significant growth in assets under management and continued strength in fee-related earnings, despite a notable decline in GAAP net income year-over-year.
Total revenue grew to $683,486,000, up from $513,340,000 in Q1 2024.
GAAP Net Income dropped to $7,430,000 from $25,091,000 year-over-year.
Fee-Related Earnings reached $345,391,000 with a margin of 57%.
Assets Under Management rose sharply to $273,300,000,000 driven by acquisitions and new capital.
Blue Owl Capital
Blue Owl Capital
Blue Owl Capital Revenue by Segment
Revenue by Segment
Credit Revenue
CapyFin.comGP Strategic Capital Revenue
CapyFin.comReal Assets Revenue
CapyFin.com Forward Guidance
Blue Owl remains optimistic about continued AUM growth, driven by recent acquisitions and capital raising momentum, but acknowledges potential pressures on expenses and net income.
Positive Outlook
- Expected $289 million in annual management fees from undeployed AUM.
- Continued capital inflows across Credit, Real Assets, and Strategic Capital.
- Successful integration of IPI acquisition, contributing to AUM growth.
- Declared annual dividend of $0.90 per share, up 25% from 2024.
- Strong direct lending originations and investment performance in Credit.
Challenges Ahead
- GAAP Net Income fell 70% YoY to $7.4 million.
- Operating expenses rose significantly, with compensation costs up 45%.
- FRE margins declined slightly from 61% to 57%.
- High cost of debt at 3.8% may pressure margins.
- Equity-based compensation and transaction expenses remain elevated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income