Ares Management Corporation Financials

ARES

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Ares Management Corporation (ARES) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI ARES FY2025 2026-04-22

Cash conversion has recently outpaced accounting profit, letting Ares fund heavy payouts while reducing leverage pressure.

In FY2025, operating cash flow of $3.27B far exceeded net income of $527M, extending FY2024’s same pattern. Because dividends paid reached $2.60B and financing cash flow remained negative, recent distributions appear to have been financed by internally generated cash rather than by adding more balance-sheet strain.

The balance sheet became less stretched: debt-to-equity fell from 10.4x to 4.7x. That improvement came mainly from equity expansion to $4.28B while liabilities stayed near $19.9B, which changes the financing posture more than a simple liability paydown would.

Growth did not translate into cleaner expense absorption: net margin narrowed to 11.1% while SG&A rose to $996M. Retained earnings also moved deeper negative to -$1.45B even as total equity increased, so book value is being shaped more by capital flows and distributions than by profits being left inside the business.

Financial Health Signals

Financial Profile 20/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Ares Management Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Growth

Ares Management Corporation's revenue surged 28.9% year-over-year to $4.8B, reflecting rapid business expansion. This strong growth earns a score of 69/100.

Leverage

Ares Management Corporation has elevated debt relative to equity (D/E of 4.66), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 7/100, reflecting increased financial risk.

Returns

Ares Management Corporation's ROE of 10.0% shows moderate profitability relative to equity, earning a score of 42/100. This is down from 12.4% the prior year.

Piotroski F-Score Neutral

4/9

Ares Management Corporation passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.

Earnings Quality Cash-Backed

7.67x

For every $1 of reported earnings, Ares Management Corporation generates $7.67 in operating cash flow ($3.3B OCF vs $426.1M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue

$4.8B

YoY+28.9%

5Y CAGR+22.1%

10Y CAGR+19.3%

Ares Management Corporation generated $4.8B in revenue in fiscal year 2025. This represents an increase of 28.9% from the prior year.

EBITDA

N/A

Net Income

$426.1M

YoY-3.4%

5Y CAGR+22.9%

10Y CAGR+36.2%

Ares Management Corporation reported $426.1M in net income in fiscal year 2025. This represents a decrease of 3.4% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

N/A

Cash & Debt

$488.9M

YoY-67.6%

5Y CAGR-2.0%

Ares Management Corporation held $488.9M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

N/A

Operating Margin

N/A

Net Margin

9.0%

YoY-3.0pp

5Y CAGR+0.3pp

10Y CAGR+6.6pp

Ares Management Corporation's net profit margin was 9.0% in fiscal year 2025, showing the share of revenue converted to profit. This is down 3.0 percentage points from the prior year.

Return on Equity

10.0%

YoY-2.5pp

5Y CAGR-2.8pp

10Y CAGR+2.1pp

Ares Management Corporation's ROE was 10.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.5 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

N/A

ARES Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$4.8B+28.9%	$3.7B+14.0%	$3.2B+12.4%	$2.9B-31.6%	$4.2B+140.2%	$1.8B
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$996.1M+35.2%	$736.5M+11.6%	$660.1M-5.0%	$695.3M+56.5%	$444.2M+71.5%	$259.0M
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	$71.4M+94.1%	$36.8M+47.6%	$24.9M
Income Tax	$198.5M+20.6%	$164.6M-4.8%	$173.0M+140.6%	$71.9M-51.2%	$147.4M+168.0%	$55.0M
Net Income	$426.1M-3.4%	$441.0M-7.0%	$474.3M+183.1%	$167.5M-56.7%	$386.7M+154.2%	$152.1M
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	$1.1B-36.5%	$1.7B+59.3%	$1.0B+3.6%	$1.0B+5.7%	$950.2M-15.9%	$1.1B+29.1%	$874.9M+18.9%	$735.8M
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	$289.9M+17.8%	$246.2M+6.0%	$232.2M+1.9%	$227.9M+14.5%	$199.1M+1.1%	$197.0M+16.3%	$169.4M-0.9%	$170.9M
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$8.1M-92.7%	$111.9M+83.6%	$61.0M+247.6%	$17.5M-64.8%	$49.9M+7.3%	$46.5M+13.1%	$41.1M+50.8%	$27.2M
Net Income	-$47.0M-116.3%	$288.9M+110.8%	$137.1M+190.6%	$47.2M-69.5%	$154.5M+30.5%	$118.5M+24.8%	$94.9M+30.0%	$73.0M
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ARES Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$28.6B+15.1%	$24.9B+0.6%	$24.7B+12.4%	$22.0B+1.8%	$21.6B+42.4%	$15.2B
Current Assets	N/A	N/A	N/A	N/A	N/A	N/A
Cash & Equivalents	$488.9M-67.6%	$1.5B+333.0%	$348.3M-10.7%	$390.0M+13.5%	$343.7M-36.3%	$539.8M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	$3.5B+197.1%	$1.2B+3.4%	$1.1B+12.4%	$999.7M+26.9%	$788.0M+112.4%	$371.0M
Total Liabilities	$19.9B+14.0%	$17.5B-11.3%	$19.7B+15.3%	$17.1B+2.4%	$16.7B+32.5%	$12.6B
Current Liabilities	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$4.3B+20.7%	$3.5B+87.2%	$1.9B+19.1%	$1.6B-12.9%	$1.8B+52.9%	$1.2B
Retained Earnings	-$1.5B-73.4%	-$837.3M-69.1%	-$495.1M-34.0%	-$369.5M-313.4%	-$89.4M+41.1%	-$151.8M

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$28.6B+5.9%	$27.0B-0.9%	$27.3B+0.3%	$27.2B+9.2%	$24.9B+1.5%	$24.5B+1.4%	$24.2B-0.9%	$24.4B
Current Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cash & Equivalents	$488.9M-1.6%	$496.7M-2.5%	$509.7M-17.6%	$618.5M-59.0%	$1.5B+330.7%	$350.1M+23.1%	$284.4M-17.9%	$346.3M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	$3.5B+0.5%	$3.4B0.0%	$3.4B-1.8%	$3.5B+201.0%	$1.2B+2.6%	$1.1B+0.2%	$1.1B0.0%	$1.1B
Total Liabilities	$19.9B+8.3%	$18.4B-0.1%	$18.4B+0.2%	$18.4B+5.2%	$17.5B-6.2%	$18.6B+1.1%	$18.4B-4.9%	$19.4B
Current Liabilities	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$4.3B-4.4%	$4.5B+2.6%	$4.4B-2.1%	$4.5B+25.7%	$3.5B+70.7%	$2.1B+3.7%	$2.0B+13.3%	$1.8B
Retained Earnings	-$1.5B-19.2%	-$1.2B+0.2%	-$1.2B-13.7%	-$1.1B-28.3%	-$837.3M-5.7%	-$792.4M-11.2%	-$712.9M-16.4%	-$612.6M

ARES Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$3.3B+17.0%	$2.8B+1296.6%	-$233.3M+68.2%	-$734.1M+71.7%	-$2.6B-509.9%	-$425.7M
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	-$1.8B-1031.5%	-$159.4M-43.5%	-$111.1M+67.1%	-$337.4M+68.9%	-$1.1B-693.1%	-$136.8M
Financing Cash Flow	-$2.4B-69.5%	-$1.4B-590.1%	$292.1M-74.1%	$1.1B-67.8%	$3.5B+271.2%	$943.9M
Dividends Paid	$2.6B+78.4%	$1.5B+29.1%	$1.1B	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	-$483.7M-136.1%	$1.3B+222.5%	$415.7M-79.2%	$2.0B+146.9%	$807.6M-4.0%	$841.3M+94.7%	$432.2M-39.1%	$710.0M
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	-$21.1M-41.0%	-$15.0M+34.8%	-$22.9M+98.7%	-$1.7B-2646.8%	-$63.5M-95.0%	-$32.6M-11.4%	-$29.2M+14.2%	-$34.1M
Financing Cash Flow	$542.9M+144.3%	-$1.2B-116.0%	-$567.2M+51.8%	-$1.2B-346.3%	$478.2M+161.0%	-$784.2M-70.9%	-$458.9M+31.2%	-$666.6M
Dividends Paid	$21.0M-0.3%	$21.1M+0.7%	$21.0M-2.5%	$21.5M+33.5%	$16.1M-0.9%	$16.2M+1.5%	$16.0M-1.8%	$16.3M
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ARES Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	9.0%-3.0pp	11.9%-2.7pp	14.7%+8.8pp	5.8%-3.4pp	9.2%+0.5pp	8.7%
Return on Equity	10.0%-2.5pp	12.4%-12.6pp	25.1%+14.5pp	10.5%-10.7pp	21.2%+8.4pp	12.8%
Return on Assets	1.5%-0.3pp	1.8%-0.1pp	1.9%+1.2pp	0.8%-1.0pp	1.8%+0.8pp	1.0%
Current Ratio	N/A	N/A	N/A	N/A	N/A	N/A
Debt-to-Equity	4.66-0.3	4.93-5.5	10.41-0.3	10.76+1.6	9.15-1.4	10.55
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	-4.5%-21.9pp	17.4%+4.3pp	13.2%+8.5pp	4.7%-11.6pp	16.3%+5.8pp	10.5%-0.4pp	10.8%+0.9pp	9.9%
Return on Equity	1.3%-5.2pp	6.5%+3.3pp	3.1%+2.1pp	1.1%-3.3pp	4.4%-1.3pp	5.7%+1.0pp	4.7%+0.6pp	4.1%
Return on Assets	-0.2%-1.2pp	1.1%+0.6pp	0.5%+0.3pp	0.2%-0.4pp	0.6%+0.1pp	0.5%+0.1pp	0.4%+0.1pp	0.3%
Current Ratio	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Debt-to-Equity	4.66+0.5	4.11-0.1	4.22+0.1	4.13-0.8	4.93-4.0	8.98-0.2	9.21-1.8	10.97
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Ares Management Corporation's annual revenue?

Ares Management Corporation (ARES) reported $4.8B in total revenue for fiscal year 2025. This represents a 28.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Ares Management Corporation's revenue growing?

Ares Management Corporation (ARES) revenue grew by 28.9% year-over-year, from $3.7B to $4.8B in fiscal year 2025.

Is Ares Management Corporation profitable?

Yes, Ares Management Corporation (ARES) reported a net income of $426.1M in fiscal year 2025, with a net profit margin of 9.0%.

What is Ares Management Corporation's net profit margin?

Ares Management Corporation (ARES) had a net profit margin of 9.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Ares Management Corporation's return on equity (ROE)?

Ares Management Corporation (ARES) has a return on equity of 10.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Ares Management Corporation's operating cash flow?

Ares Management Corporation (ARES) generated $3.3B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Ares Management Corporation's total assets?

Ares Management Corporation (ARES) had $28.6B in total assets as of fiscal year 2025, including both current and long-term assets.

What is Ares Management Corporation's debt-to-equity ratio?

Ares Management Corporation (ARES) had a debt-to-equity ratio of 4.66 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Ares Management Corporation's return on assets (ROA)?

Ares Management Corporation (ARES) had a return on assets of 1.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Ares Management Corporation's Piotroski F-Score?

Ares Management Corporation (ARES) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Ares Management Corporation's earnings high quality?

Ares Management Corporation (ARES) has an earnings quality ratio of 7.67x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Ares Management Corporation?

Ares Management Corporation (ARES) scores 20 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.