P10 Reports First Quarter 2025 Earnings Results
- Record fundraising quarter with $1.4B in gross new fee-paying AUM
- 10% YoY growth in fee-paying AUM to $26.3B
- 7% increase in quarterly dividend
- Strategic acquisition of Qualitas Funds expanding global presence
- 2% YoY revenue growth to $67.7M
- GAAP Net Income declined from $5.2M to $4.7M YoY
- Adjusted Net Income decreased from $25.4M to $23.5M YoY
- Fee-Related Earnings remained flat at $30.7M
- Adjusted EPS declined from $0.21 to $0.20 YoY
Insights
P10 delivered record fundraising with 10% AUM growth but showed flat earnings and slight profit declines despite revenue growth.
P10's Q1 2025 results showcase an interesting divergence between robust asset gathering and modest financial performance. The company achieved its strongest fundraising quarter in history with
However, this impressive asset growth hasn't translated proportionally to the bottom line. While revenue increased modestly at
The
The completion of the Qualitas Funds acquisition represents a strategic expansion of P10's global presence, though specific financial implications of this transaction weren't disclosed. The contrast between strong fundraising momentum and stagnant earnings raises questions about cost structure and operational efficiency as the company scales its asset base.
Record fundraising and deployments of over
Increased Quarterly Dividend by
Completed Acquisition of Qualitas Funds
DALLAS, May 08, 2025 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX) (the “Company”), a leading private markets solutions provider, today reported financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights
- Revenue:
$67.7 million , a2% increase year over year. - Fee-Related Revenue:
$67.6 million , a4% increase year over year. - Fee-Paying Assets Under Management:
$26.3 billion , a10% increase year over year. - GAAP Net Income:
$4.7 million compared to$5.2 million in the prior year. - Fee-Related Earnings:
$30.7 million compared to$30.7 million in the prior year. - Adjusted Net Income:
$23.5 million compared to$25.4 million in the prior year. - Fully Diluted GAAP EPS:
$0.04 compared to$0.04 in the prior year. - Fully Diluted ANI per share:
$0.20 compared to$0.21 in the prior year.
A presentation of the quarterly financials may be accessed here and is available on the Company’s website.
“In the first quarter, P10 raised and deployed over
Stock Repurchase Program
In the first quarter, the Company repurchased 1,215,106 shares at an average price of
Declaration of Dividend
The Board of Directors of the Company has declared a quarterly cash dividend of
Conference Call Details
The Company will host a conference call at 8:30 a.m. Eastern Time on Thursday, May 8, 2025. All participants must register prior to joining the event.
For those unable to participate in the live event, a replay will be made available on P10’s investor relations page at www.p10alts.com.
About P10
P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10’s mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of March 31, 2025, P10’s products have a global investor base of more than 3,800 investors across 50 states, 60 countries, and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions, and financial institutions. Visit www.p10alts.com.
Forward-Looking Statements
Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “believe,” “estimate,” “continue,” “anticipate,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management’s current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance, and business. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates, or expectations contemplated will be achieved. Forward-looking statements reflect management’s current plans, estimates, and expectations, and are inherently uncertain. All forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause actual results to be materially different; global and domestic market and business conditions; successful execution of business and growth strategies and regulatory factors relevant to our business; changes in our tax status; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; our ability to make acquisitions and successfully integrate the businesses we acquire; assumptions relating to our operations, financial results, financial condition, business prospects and growth strategy; and our ability to manage the effects of events outside of our control. The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks that we face, you should refer to the “Risk Factors” included in our annual report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 28, 2025, and in our subsequent reports filed from time to time with the SEC. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.
Use of Non-GAAP Financial Measures by P10
The non-GAAP financial measures contained in this press release (including, without limitation, Fee-Related Revenue (“FRR”), Fee-Related Earnings (“FRE”), Fee-Related Earnings Margin, Adjusted Net Income (“ANI”), Fully Diluted ANI per share and fee-paying assets under management) are not GAAP measures of the Company’s financial performance or liquidity and should not be considered as alternatives to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. A reconciliation of such non-GAAP measures to their most directly comparable GAAP measure is included later in this press release. The Company believes the presentation of these non-GAAP measures provide useful additional information to investors because it provides better comparability of ongoing operating performance to prior periods. It is reasonable to expect that one or more excluded items will occur in future periods, but the amounts recognized can vary significantly from period to period. These non-GAAP measures should not be considered substitutes for net income or cash flows from operating, investing, or financing activities. You are encouraged to evaluate each adjustment to non-GAAP financial measures and the reasons management considers it appropriate for supplemental analysis. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Key Financial & Operating Metrics
Fee-paying assets under management reflects the assets from which we earn management and advisory fees. Our vehicles typically earn management and advisory fees based on committed capital, and in certain cases, net invested capital, depending on the fee terms. Management and advisory fees based on committed capital are not affected by market appreciation or depreciation.
P10 Investor Contact:
info@p10alts.com
P10 Media Contact:
Josh Clarkson
Taylor Donahue
pro-p10@prosek.com
| Reconciliation of Non-GAAP Financial Measures | |||||||||
| (Dollars in thousands except share and per share amounts) | Three Months Ended | % Change | |||||||
| March 31, 2025 | March 31, 2024 | Q1'25 vs Q1'24 | |||||||
| GAAP Net Income | $ | 4,696 | $ | 5,243 | - | ||||
| Adjustments: | |||||||||
| Depreciation & amortization | 5,804 | 7,083 | - | ||||||
| Interest expense, net | 6,417 | 5,776 | |||||||
| Income tax expense | 265 | 1,758 | - | ||||||
| Non-recurring expenses | 3,460 | 691 | |||||||
| Non-cash stock based compensation | 5,855 | 5,945 | - | ||||||
| Non-cash stock based compensation - acquisitions | 710 | 771 | - | ||||||
| Earn out related compensation | 3,519 | 3,558 | - | ||||||
| Non-Fee Related Income | (39 | ) | (84 | ) | - | ||||
| Fee-Related Earnings | $ | 30,687 | $ | 30,741 | |||||
| Plus: | |||||||||
| Non-Fee Related Income | $ | 39 | $ | 84 | - | ||||
| Less: | |||||||||
| Cash interest expense | (6,696 | ) | (5,406 | ) | |||||
| Cash income taxes, net of taxes related to acquisitions | (570 | ) | (19 | ) | |||||
| Adjusted Net Income | $ | 23,460 | $ | 25,400 | - | ||||
| Fully Diluted ANI per Share | |||||||||
| Shares outstanding | 110,907 | 115,129 | - | ||||||
| Fully Diluted Shares outstanding | 119,352 | 122,841 | - | ||||||
| ANI per share | $ | 0.21 | $ | 0.22 | - | ||||
| Fully Diluted ANI per share(1) | $ | 0.20 | $ | 0.21 | - | ||||
| Fee-Related Revenue | |||||||||
| Total Revenues | $ | 67,667 | $ | 66,115 | |||||
| Adjustments: | |||||||||
| Non-Fee Related Revenue | (39 | ) | (1,108 | ) | - | ||||
| Fee-Related Revenue | $ | 67,628 | $ | 65,007 | 4% | ||||
| Fee-Related Earnings Margin | |||||||||
| Fee-Related Revenue | $ | 67,628 | $ | 65,007 | 4% | ||||
| Fee-Related Earnings | $ | 30,687 | $ | 30,741 | |||||
| Fee-Related Earnings Margin | 45 | % | 47 | % | N/A | ||||
(1) Fully Diluted ANI EPS calculations include the total of all shares of common stock, stock options under the treasury stock method, restricted stock awards, and the redeemable non-controlling interests of P10 Intermediate converted to Class A stock as of each period presented.
Notes to Reconciliation of Non-GAAP Financial Measures
Above is a calculation of our unaudited non-GAAP financial measures. These are not measures of financial performance under GAAP and should not be construed as a substitute for the most directly comparable GAAP measures, which are reconciled in the table above. These measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these measures in isolation or as a substitute for GAAP measures. Other companies may calculate these measures differently than we do, limiting their usefulness as a comparative measure.
We use Adjusted Net Income, or ANI, Fee-Related Revenues, Fee-Related Earnings and Fee-Related Earnings Margin to provide additional measures of profitability. We use the measures to assess our performance relative to our intended strategies, expected patterns of profitability, and budgets, and use the results of that assessment to adjust our future activities to the extent we deem necessary. ANI reflects an estimate of our cash flows generated by our core operations. ANI is calculated as Fee-Related Earnings, plus Non-Fee Related Income, less actual cash paid for interest and federal and state income taxes.
In order to compute Fee-Related Earnings, we adjust our GAAP Net Income for the following items:
- Expenses that typically do not require us to pay them in cash in the current period (such as depreciation, amortization and stock-based compensation);
- The cost of financing our business;
- One-time expenses related to restructuring of the management team including placement/search fees;
- Expenses related to one-time technical accounting matters;
- Acquisition-related expenses which reflects the actual costs incurred during the period for the acquisition of new businesses, which primarily consists of fees for professional services including legal, accounting, and advisory, as well as bonuses paid to employees directly related to the acquisition;
- The effects of income taxes;
- Non-Fee Related Income.
Fee-Related Revenues is calculated as Total Revenues less Non-Fee Related Revenue.
Fee-Related Earnings is a non-GAAP performance measure used to monitor our baseline earnings less any incentive fee revenue and excluding any incentive fee-related expenses.
Fee-Related Earnings Margin is calculated as Fee-Related Earnings divided by Fee-Related Revenues.
Adjusted Net Income reflects net cash paid for federal and state income taxes and cash interest expense.
FAQ
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