BlackRock Reports Full Year 2024 Diluted EPS of $42.01, or $43.61 as Adjusted; Fourth Quarter 2024 Diluted EPS of $10.63, or $11.93 as Adjusted

Rhea-AI Summary

BlackRock (NYSE: BLK) reported strong financial results for Q4 and full year 2024, with record-breaking performance across key metrics. The company achieved $11.6 trillion in AUM, driven by record net inflows of $641 billion for the full year, including $281 billion in Q4.

Full-year revenue increased 14% to over $20 billion, while operating income grew 21% (23% as adjusted). The company reported full-year diluted EPS of $42.01, or $43.61 as adjusted, marking a 15% increase. BlackRock maintained strong shareholder returns, distributing $4.7 billion to shareholders, including $1.6 billion in share repurchases.

The company's strategic expansion continued with the GIP transaction completion and planned acquisitions of HPS Investment Partners and Preqin. These moves are expected to enhance private markets capabilities, with HPS adding approximately $220 billion in pro-forma client assets. The company achieved a 44.5% adjusted operating margin, up 280 basis points from 2023.

Positive

• Record $641 billion in full-year net inflows ($281 billion in Q4)
• 14% increase in full-year revenue exceeding $20 billion
• 21% increase in operating income (23% as adjusted)
• Operating margin improved to 44.5% (up 280 basis points)
• Strong investment performance with 82% of taxable fixed income AUM outperforming over 5 years
• $4.7 billion returned to shareholders in 2024

Negative

• Higher effective tax rate impacting earnings
• Lower nonoperating income affecting full-year results
• Underperformance in tax-exempt fixed income with only 45% AUM above median over 5 years

Insights

Financial Analyst

BlackRock's Q4 and FY2024 results showcase exceptional performance with record-breaking metrics. The $641 billion in net inflows and 14% revenue growth to over $20 billion demonstrate remarkable market penetration. The adjusted operating margin expanded 280 basis points to 44.5%, reflecting strong operational efficiency.

The strategic acquisitions of GIP and planned integration of HPS and Preqin position BlackRock for significant private markets expansion. The $11.6 trillion AUM represents a 15% year-over-year increase, while the 7% organic base fee growth indicates strong underlying business momentum. The $4.7 billion returned to shareholders, including $1.6 billion in share repurchases, reflects robust capital return policies.

Investment Strategist

The performance metrics reveal BlackRock's dominance in passive and active management. Notable is the 93% of systematic equity AUM outperforming benchmarks over three years, while fixed income shows strong performance with 82% of taxable AUM beating peers over five years. The diversification across client segments is impressive, with ETFs contributing 41% of base fee revenue despite representing 37% of AUM.

The cryptocurrency and strategic ETF inflows of $59 billion combined indicate BlackRock's successful adaptation to emerging market trends. The institutional segment's $53 billion quarterly inflows demonstrate continued trust from sophisticated investors, particularly significant during a period of strategic acquisitions.

Market Research Analyst

The regional distribution of flows shows strong global penetration, with Americas leading at $317 billion in annual inflows, followed by EMEA at $149 billion. The retail segment's modest $24 billion annual inflow suggests untapped growth potential in this channel. The 21% compounded annual total return since IPO, outperforming the S&P 500 by 13%, validates BlackRock's long-term value creation strategy.

The technology services' 12% ACV growth highlights the success of BlackRock's technology-driven approach. The expansion in alternatives through strategic acquisitions positions the firm to capture higher-margin opportunities in private markets, potentially driving further margin expansion.

NEW YORK--(BUSINESS WIRE)-- BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2024.

$11.6 trillion in AUM following a record $641 billion of full year net inflows, including $281 billion in the fourth quarter

14% increase in full year revenue driven by the positive impact of markets on average AUM, organic base fee growth, and fees on AUM acquired in the GIP Transaction, as well as higher performance fees and technology service revenue

21% increase in full year operating income (23% as adjusted)

15% increase in full year diluted EPS also reflects lower nonoperating income and a higher effective tax rate in the current year

$4.7 billion returned to shareholders in 2024, including $1.6 billion of share repurchases

Previously announced agreement to acquire HPS Investment Partners to create an integrated private credit franchise with approximately $220 billion in pro-forma client assets

Laurence D. Fink, Chairman and CEO:

“Clients entrusted BlackRock with a record $641 billion of net inflows in 2024, including $281 billion in the fourth quarter for two consecutive record flows quarters. 2024 was also a milestone year for strategic acquisitions grounded in client service, technology and scale. Our closing of GIP and planned acquisitions of HPS and Preqin are expected to significantly scale and enhance our private markets investment and data capabilities.

“For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy. Client activity accelerated into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth. Our operating model delivered exceptional performance in a year of meaningful change. We crossed $20 billion of annual revenue, up 14% from 2023. As adjusted operating income grew by 23%, and our industry-leading margin of 44.5% was up 280 basis points.

“Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we’ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead.

“BlackRock’s world-class talent is central to our significant growth and sustained performance. We have a longstanding, deliberate strategy of systematically elevating our strongest leaders around the world. We’re excited to again have a number of them taking on expanded roles this year. BlackRock’s leadership team alongside top talent from GIP, HPS and Preqin position us to serve our clients with excellence and seize the opportunities ahead of us.

“In the 25 years since our IPO, BlackRock has delivered a 21% compounded annual total return for our shareholders, compared to 8% in the S&P 500. BlackRock enters 2025 with more growth and upside potential than ever. This is just the beginning.”

FINANCIAL RESULTS																	NET FLOW HIGHLIGHTS(1)
(in millions,	Q4				Q4				Full Year											Q4				Full Year
except per share data)	2024				2023				2024				2023				(in billions)			2024				2024
AUM	$	11,551,251			$	10,008,995			$	11,551,251			$	10,008,995			Long-term net flows:			$	201			$	489
% change		15	%							15	%
Average AUM	$	11,555,434			$	9,384,929			$	10,804,007			$	9,220,700			By region:
% change		23	%							17	%							Americas		$	116			$	317
Total net flows	$	281,416			$	95,647			$	641,351			$	288,695				EMEA			74				149
																		APAC			11				23
GAAP basis:
Revenue	$	5,677			$	4,631			$	20,407			$	17,859			By client type:
% change		23	%							14	%
Operating income	$	2,075			$	1,585			$	7,574			$	6,275				Retail:		$	5			$	24
% change		31	%							21	%								US		3				19
Operating margin		36.6	%			34.2	%			37.1	%			35.1	%				International		2				5
Net income(1)	$	1,670			$	1,375			$	6,369			$	5,502
% change		21	%							16	%							ETFs:		$	143			$	390
Diluted EPS	$	10.63			$	9.15			$	42.01			$	36.51					Core equity		75				175
% change		16	%							15	%								Strategic		18				113
Weighted-average																			Cryptocurrency		18				41
diluted shares		157.0				150.2				151.6				150.7					Other precision		32				61
% change		5	%							1	%
																		Institutional:		$	53			$	74
As Adjusted(2):																			Active		25				64
Operating income	$	2,326			$	1,716			$	8,110			$	6,593					Index		28				9
% change		36	%							23	%
Operating margin		45.5	%			41.6	%			44.5	%			41.7	%
Net income(1)	$	1,874			$	1,451			$	6,612			$	5,692			Cash management net flows			$	81			$	153
% change		29	%							16	%
Diluted EPS	$	11.93			$	9.66			$	43.61			$	37.77
% change		23	%							15	%						Total net flows			$	281			$	641
_________________________																	_________________________
(1) Net income represents net income attributable to BlackRock, Inc. (2) See pages 10 through 12 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.																	(1) Totals may not add due to rounding.

BUSINESS RESULTS
													Q4 2024
							Q4 2024						Base fees(1)
							Base fees(1)			December 31, 2024			and securities
	Q4 2024			December 31, 2024			and securities			AUM			lending revenue
(in millions), (unaudited)	Net flows			AUM			lending revenue			% of Total			% of Total
RESULTS BY CLIENT TYPE
Retail	$	4,650		$	1,015,827		$	1,105			9	%		25	%
ETFs		142,641			4,230,375			1,815			37	%		41	%
Institutional:
Active		25,126			2,136,749			962			18	%		22	%
Index		28,251			3,247,637			242			28	%		5	%
Total institutional		53,377			5,384,386			1,204			46	%		27	%
Long-term		200,668			10,630,588			4,124			92	%		93	%
Cash management		80,748			920,663			293			8	%		7	%
Total	$	281,416		$	11,551,251		$	4,417			100	%		100	%
RESULTS BY INVESTMENT STYLE
Active	$	22,830		$	2,870,656		$	1,991			25	%		45	%
Index and ETFs		177,838			7,759,932			2,133			67	%		48	%
Long-term		200,668			10,630,588			4,124			92	%		93	%
Cash management		80,748			920,663			293			8	%		7	%
Total	$	281,416		$	11,551,251		$	4,417			100	%		100	%
RESULTS BY PRODUCT TYPE
Equity	$	126,566		$	6,310,191		$	2,142			55	%		48	%
Fixed income		23,784			2,905,669			950			25	%		22	%
Multi-asset		24,307			992,921			326			8	%		7	%
Alternatives:
Private markets		4,730			211,974			480			2	%		11	%
Liquid alternatives		1,165			76,390			146			1	%		3	%
Currency and commodities(2)		20,116			133,443			80			1	%		2	%
Total alternatives		26,011			421,807			706			4	%		16	%
Long-term		200,668			10,630,588			4,124			92	%		93	%
Cash management		80,748			920,663			293			8	%		7	%
Total	$	281,416		$	11,551,251		$	4,417			100	%		100	%

_________________________
(1)		Base fees include investment advisory and administration fees.
(2)		Amounts include cryptocurrency and commodity ETFs and exchange-traded products ("ETPs").

INVESTMENT PERFORMANCE AT DECEMBER 31, 2024(1)
	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	69%	79%	82%
Tax-exempt	69%	42%	45%
Index AUM within or above applicable tolerance	97%	99%	98%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	47%	44%	64%
Systematic	93%	89%	93%
Index AUM within or above applicable tolerance	94%	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 14 for performance disclosure detail.

TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION

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 Wednesday, January 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, (866) 409-1555, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 6231688). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

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

ABOUT BLACKROCK

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 www.blackrock.com/corporate.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
														Three Months
	Three Months Ended													Ended
	December 31,													September 30,
	2024				2023				Change					2024				Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	4,256			$	3,448			$	808				$	3,881			$	375
Securities lending revenue		161				157				4					149				12
Total investment advisory, administration fees and securities lending revenue		4,417				3,605				812					4,030				387
Investment advisory performance fees		451				311				140					388				63
Technology services revenue		428				379				49					403				25
Distribution fees		322				303				19					323				(1	)
Advisory and other revenue		59				33				26					53				6
Total revenue		5,677				4,631				1,046					5,197				480
Expense
Employee compensation and benefits		1,885				1,503				382					1,578				307
Sales, asset and account expense:
Distribution and servicing costs		565				502				63					549				16
Direct fund expense		389				318				71					379				10
Sub-advisory and other		42				35				7					34				8
Total sales, asset and account expense		996				855				141					962				34
General and administration expense		596				589				7					562				34
Restructuring charge		-				61				(61	)				-				-
Amortization and impairment of intangible assets		125				38				87					89				36
Total expense		3,602				3,046				556					3,191				411
Operating income		2,075				1,585				490					2,006				69
Nonoperating income (expense)
Net gain (loss) on investments		(18	)			265				(283	)				177				(195	)
Interest and dividend income		212				159				53					236				(24	)
Interest expense		(166	)			(82	)			(84	)				(154	)			(12	)
Total nonoperating income (expense)		28				342				(314	)				259				(231	)
Income before income taxes		2,103				1,927				176					2,265				(162	)
Income tax expense		442				438				4					574				(132	)
Net income		1,661				1,489				172					1,691				(30	)
Less:
Net income (loss) attributable to noncontrolling interests		(9	)			114				(123	)				60				(69	)
Net income attributable to BlackRock, Inc.	$	1,670			$	1,375			$	295				$	1,631			$	39
Weighted-average common shares outstanding
Basic		155.0				148.7				6.3					148.0				6.9
Diluted		157.0				150.2				6.8					149.6				7.4
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	10.78			$	9.25			$	1.53				$	11.02			$	(0.24	)
Diluted	$	10.63			$	9.15			$	1.48				$	10.90			$	(0.27	)
Cash dividends declared and paid per share	$	5.10			$	5.00			$	0.10				$	5.10			$	-
Supplemental information:
AUM (end of period)	$	11,551,251			$	10,008,995			$	1,542,256				$	11,475,362			$	75,889
Shares outstanding (end of period)		154.9				148.5				6.4					148.0				7.0
GAAP:
Operating margin		36.6	%			34.2	%			240		bps			38.6	%			(200	)	bps
Effective tax rate		20.9	%			24.2	%			(330	)	bps			26.0	%			(510	)	bps
As adjusted:
Operating income (1)	$	2,326			$	1,716			$	610				$	2,128			$	198
Operating margin (1)		45.5	%			41.6	%			390		bps			45.8	%			(30	)	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	39			$	199			$	(160	)			$	190			$	(151	)
Net income attributable to BlackRock, Inc. (3)	$	1,874			$	1,451			$	423				$	1,715			$	159
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)	$	11.93			$	9.66			$	2.27				$	11.46			$	0.47
Effective tax rate		20.8	%			24.2	%			(340	)	bps			26.0	%			(520	)	bps
See pages 10 through 12 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. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
	Year Ended
	December 31,
	2024				2023				Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Investment advisory and administration fees	$	15,485			$	13,724			$	1,761
Securities lending revenue		615				675				(60	)
Total investment advisory, administration fees and securities lending revenue		16,100				14,399				1,701
Investment advisory performance fees		1,207				554				653
Technology services revenue		1,603				1,485				118
Distribution fees		1,273				1,262				11
Advisory and other revenue		224				159				65
Total revenue		20,407				17,859				2,548
Expense
Employee compensation and benefits		6,546				5,779				767
Sales, asset and account expense:
Distribution and servicing costs		2,171				2,051				120
Direct fund expense		1,464				1,331				133
Sub-advisory and other		140				116				24
Total sales, asset and account expense		3,775				3,498				277
General and administration expense		2,221				2,095				126
Restructuring charge		-				61				(61	)
Amortization and impairment of intangible assets		291				151				140
Total expense		12,833				11,584				1,249
Operating income		7,574				6,275				1,299
Nonoperating income (expense)
Net gain (loss) on investments		492				699				(207	)
Interest and dividend income		767				473				294
Interest expense		(538	)			(292	)			(246	)
Total nonoperating income (expense)		721				880				(159	)
Income before income taxes		8,295				7,155				1,140
Income tax expense		1,783				1,479				304
Net income		6,512				5,676				836
Less:
Net income (loss) attributable to noncontrolling interests		143				174				(31	)
Net income attributable to BlackRock, Inc.	$	6,369			$	5,502			$	867
Weighted-average common shares outstanding
Basic		150.0				149.3				0.7
Diluted		151.6				150.7				0.9
Earnings per share attributable to BlackRock, Inc. common stockholders
Basic	$	42.45			$	36.85			$	5.60
Diluted	$	42.01			$	36.51			$	5.50
Cash dividends declared and paid per share	$	20.40			$	20.00			$	0.40
Supplemental information:
AUM (end of period)	$	11,551,251			$	10,008,995			$	1,542,256
Shares outstanding (end of period)		154.9				148.5				6.4
GAAP:
Operating margin		37.1	%			35.1	%			200		bps
Effective tax rate		21.9	%			21.2	%			70		bps
As adjusted:
Operating income (1)	$	8,110			$	6,593			$	1,517
Operating margin (1)		44.5	%			41.7	%			280		bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	533			$	648			$	(115	)
Net income attributable to BlackRock, Inc. (3)	$	6,612			$	5,692			$	920
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3)	$	43.61			$	37.77			$	5.84
Effective tax rate		23.5	%			21.4	%			210		bps
See pages 10 through 12 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. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Client Type and Product Type
					Net
	September 30,				inflows								Market								December 31,
	2024				(outflows)				Acquisition(1)				change				FX impact(2)				2024				Average AUM(3)
Retail:
Equity	$	521,270			$	(127	)		$	-			$	(7,209	)		$	(8,816	)		$	505,118			$	514,867
Fixed income		324,245				4,155				-				(4,823	)			(4,936	)			318,641				321,799
Multi-asset		154,078				(424	)			-				(1,909	)			(767	)			150,978				152,157
Alternatives		41,608				1,046				-				(1,009	)			(555	)			41,090				41,243
Retail subtotal		1,041,201				4,650				-				(14,950	)			(15,074	)			1,015,827				1,030,066
ETFs:
Equity		3,061,840				110,601				-				(43,614	)			(22,429	)			3,106,398				3,090,667
Fixed income		1,019,176				11,834				-				(34,956	)			(10,402	)			985,652				1,005,156
Multi-asset		10,036				1,070				-				(153	)			(219	)			10,734				10,281
Alternatives		97,283				19,136				-				11,332				(160	)			127,591				115,012
ETFs subtotal		4,188,335				142,641				-				(67,391	)			(33,210	)			4,230,375				4,221,116
Institutional:
Active:
Equity		225,361				(2,050	)			-				2,432				(6,895	)			218,848				222,045
Fixed income		873,385				(1,509	)			-				(18,258	)			(13,290	)			840,328				851,910
Multi-asset		833,975				23,844				-				(8,141	)			(21,639	)			828,039				835,579
Alternatives		178,223				4,841				69,875				448				(3,853	)			249,534				230,800
Active subtotal		2,110,944				25,126				69,875				(23,519	)			(45,677	)			2,136,749				2,140,334
Index:
Equity		2,472,528				18,142				-				46,933				(57,776	)			2,479,827				2,493,289
Fixed income		806,888				9,304				-				(14,389	)			(40,755	)			761,048				780,330
Multi-asset		3,426				(183	)			-				(1	)			(72	)			3,170				3,325
Alternatives		2,653				988				-				19				(68	)			3,592				3,149
Index subtotal		3,285,495				28,251				-				32,562				(98,671	)			3,247,637				3,280,093
Institutional subtotal		5,396,439				53,377				69,875				9,043				(144,348	)			5,384,386				5,420,427
Long-term		10,625,975				200,668				69,875				(73,298	)			(192,632	)			10,630,588				10,671,609
Cash management		849,387				80,748				-				2,521				(11,993	)			920,663				883,825
Total	$	11,475,362			$	281,416			$	69,875			$	(70,777	)		$	(204,625	)		$	11,551,251			$	11,555,434
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
					Net
	September 30,				inflows								Market								December 31,
	2024				(outflows)				Acquisition(1)				change				FX impact(2)				2024				Average AUM(3)
Active:
Equity	$	492,193			$	(8,057	)		$	-			$	(6,198	)		$	(10,775	)		$	467,163			$	480,255
Fixed income		1,171,739				1,580				-				(22,623	)			(16,822	)			1,133,874				1,148,283
Multi-asset		988,035				23,420				-				(10,050	)			(22,404	)			979,001				987,720
Alternatives		219,824				5,887				69,875				(560	)			(4,408	)			290,618				272,039
Active subtotal		2,871,791				22,830				69,875				(39,431	)			(54,409	)			2,870,656				2,888,297
Index and ETFs:
ETFs:
Equity		3,061,840				110,601				-				(43,614	)			(22,429	)			3,106,398				3,090,667
Fixed income		1,019,176				11,834				-				(34,956	)			(10,402	)			985,652				1,005,156
Multi-asset		10,036				1,070				-				(153	)			(219	)			10,734				10,281
Alternatives		97,283				19,136				-				11,332				(160	)			127,591				115,012
ETFs subtotal		4,188,335				142,641				-				(67,391	)			(33,210	)			4,230,375				4,221,116
Non-ETF index:
Equity		2,726,966				24,022				-				48,354				(62,712	)			2,736,630				2,749,946
Fixed income		832,779				10,370				-				(14,847	)			(42,159	)			786,143				805,756
Multi-asset		3,444				(183	)			-				(1	)			(74	)			3,186				3,341
Alternatives		2,660				988				-				18				(68	)			3,598				3,153
Non-ETF index subtotal		3,565,849				35,197				-				33,524				(105,013	)			3,529,557				3,562,196
Index and ETFs subtotal		7,754,184				177,838				-				(33,867	)			(138,223	)			7,759,932				7,783,312
Long-term	$	10,625,975			$	200,668			$	69,875			$	(73,298	)		$	(192,632	)		$	10,630,588			$	10,671,609
Current Quarter Component Changes by Product Type (Long-Term)
					Net
	September 30,				inflows								Market								December 31,
	2024				(outflows)				Acquisition(1)				change				FX impact(2)				2024				Average AUM(3)
Equity	$	6,280,999			$	126,566			$	-			$	(1,458	)		$	(95,916	)		$	6,310,191			$	6,320,868
Fixed income		3,023,694				23,784				-				(72,426	)			(69,383	)			2,905,669				2,959,195
Multi-asset		1,001,515				24,307				-				(10,204	)			(22,697	)			992,921				1,001,342
Alternatives:
Private markets		141,409				4,730				69,875				(746	)			(3,294	)			211,974				193,493
Liquid alternatives		75,990				1,165				-				240				(1,005	)			76,390				76,211
Currency and commodities(4)		102,368				20,116				-				11,296				(337	)			133,443				120,500
Alternatives subtotal		319,767				26,011				69,875				10,790				(4,636	)			421,807				390,204
Long-term	$	10,625,975			$	200,668			$	69,875			$	(73,298	)		$	(192,632	)		$	10,630,588			$	10,671,609

_________________________
(1)		Amounts include AUM attributable to the acquisition of Global Infrastructure Management, LLC ("GIP") in October 2024 (the "GIP Transaction").
(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 cryptocurrency and commodity ETFs and ETPs.

ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Client Type and Product Type
					Net
	December 31,				inflows								Market								December 31,
	2023				(outflows)				Acquisition(1)				change				FX impact(2)				2024				Average AUM(3)
Retail:
Equity	$	435,734			$	15,285			$	4,074			$	54,257			$	(4,232	)		$	505,118			$	485,161
Fixed income		312,799				11,671				-				1,483				(7,312	)			318,641				316,520
Multi-asset		139,537				(2,328	)			-				14,420				(651	)			150,978				147,169
Alternatives		41,627				(261	)			-				69				(345	)			41,090				41,087
Retail subtotal		929,697				24,367				4,074				70,229				(12,540	)			1,015,827				989,937
ETFs:
Equity		2,532,631				236,357				-				359,322				(21,912	)			3,106,398				2,845,456
Fixed income		898,403				112,341				-				(16,291	)			(8,801	)			985,652				948,250
Multi-asset		9,140				1,025				-				841				(272	)			10,734				9,451
Alternatives		59,125				40,710				-				27,919				(163	)			127,591				89,331
ETFs subtotal		3,499,299				390,433				-				371,791				(31,148	)			4,230,375				3,892,488
Institutional:
Active:
Equity		186,688				5,380				-				30,876				(4,096	)			218,848				207,929
Fixed income		836,823				(2,843	)			-				16,885				(10,537	)			840,328				841,830
Multi-asset		717,182				54,887				-				72,798				(16,828	)			828,039				774,210
Alternatives		171,980				7,023				69,875				3,618				(2,962	)			249,534				191,190
Active subtotal		1,912,673				64,447				69,875				124,177				(34,423	)			2,136,749				2,015,159
Index:
Equity		2,138,291				(31,454	)			-				420,860				(47,870	)			2,479,827				2,333,824
Fixed income		756,001				42,500				-				(5,068	)			(32,385	)			761,048				759,871
Multi-asset		4,945				(1,906	)			-				204				(73	)			3,170				3,693
Alternatives		3,252				234				-				165				(59	)			3,592				2,912
Index subtotal		2,902,489				9,374				-				416,161				(80,387	)			3,247,637				3,100,300
Institutional subtotal		4,815,162				73,821				69,875				540,338				(114,810	)			5,384,386				5,115,459
Long-term		9,244,158				488,621				73,949				982,358				(158,498	)			10,630,588				9,997,884
Cash management		764,837				152,730				-				10,606				(7,510	)			920,663				806,123
Total	$	10,008,995			$	641,351			$	73,949			$	992,964			$	(166,008	)		$	11,551,251			$	10,804,007
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)
					Net
	December 31,				inflows								Market								December 31,
	2023				(outflows)				Acquisition(1)				change				FX impact(2)				2024				Average AUM(3)
Active:
Equity	$	427,448			$	(6,333	)		$	4,074			$	48,479			$	(6,505	)		$	467,163			$	461,583
Fixed income		1,123,422				9,184				-				18,516				(17,248	)			1,133,874				1,133,152
Multi-asset		856,705				52,553				-				87,221				(17,478	)			979,001				921,364
Alternatives		213,603				6,760				69,875				3,687				(3,307	)			290,618				232,274
Active subtotal		2,621,178				62,164				73,949				157,903				(44,538	)			2,870,656				2,748,373
Index and ETFs:
ETFs:
Equity		2,532,631				236,357				-				359,322				(21,912	)			3,106,398				2,845,456
Fixed income		898,403				112,341				-				(16,291	)			(8,801	)			985,652				948,250
Multi-asset		9,140				1,025				-				841				(272	)			10,734				9,451
Alternatives		59,125				40,710				-				27,919				(163	)			127,591				89,331
ETFs subtotal		3,499,299				390,433				-				371,791				(31,148	)			4,230,375				3,892,488
Non-ETF index:
Equity		2,333,265				(4,456	)			-				457,514				(49,693	)			2,736,630				2,565,331
Fixed income		782,201				42,144				-				(5,216	)			(32,986	)			786,143				785,069
Multi-asset		4,959				(1,900	)			-				201				(74	)			3,186				3,708
Alternatives		3,256				236				-				165				(59	)			3,598				2,915
Non-ETF index subtotal		3,123,681				36,024				-				452,664				(82,812	)			3,529,557				3,357,023
Index and ETFs subtotal		6,622,980				426,457				-				824,455				(113,960	)			7,759,932				7,249,511
Long-term	$	9,244,158			$	488,621			$	73,949			$	982,358			$	(158,498	)		$	10,630,588			$	9,997,884
Year-over-Year Component Changes by Product Type (Long-Term)
					Net
	December 31,				inflows								Market								December 31,
	2023				(outflows)				Acquisition(1)				change				FX impact(2)				2024				Average AUM(3)
Equity	$	5,293,344			$	225,568			$	4,074			$	865,315			$	(78,110	)		$	6,310,191			$	5,872,370
Fixed income		2,804,026				163,669				-				(2,991	)			(59,035	)			2,905,669				2,866,471
Multi-asset		870,804				51,678				-				88,263				(17,824	)			992,921				934,523
Alternatives:
Private markets		136,909				9,457				69,875				(1,803	)			(2,464	)			211,974				154,597
Liquid alternatives		74,233				(2,609	)			-				5,482				(716	)			76,390				75,402
Currency and commodities(4)		64,842				40,858				-				28,092				(349	)			133,443				94,521
Alternatives subtotal		275,984				47,706				69,875				31,771				(3,529	)			421,807				324,520
Long-term	$	9,244,158			$	488,621			$	73,949			$	982,358			$	(158,498	)		$	10,630,588			$	9,997,884

_________________________
(1)		Amounts include AUM attributable to the GIP Transaction and the acquisition of SpiderRock Advisors, LLC in May 2024 (the "SpiderRock Transaction").
(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 thirteen months.
(4)		Amounts include cryptocurrency and commodity ETFs and ETPs.

SUMMARY OF REVENUE
	Three Months												Three Months
	Ended												Ended								Year Ended
	December 31,												September 30,								December 31,
(in millions), (unaudited)	2024				2023				Change				2024				Change				2024				2023				Change
Revenue
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	558			$	484			$	74			$	553			$	5			$	2,166			$	2,000			$	166
ETFs		1,375				1,102				273				1,309				66				5,124				4,418				706
Non-ETF index		209				183				26				198				11				784				743				41
Equity subtotal		2,142				1,769				373				2,060				82				8,074				7,161				913
Fixed income:
Active		494				468				26				493				1				1,952				1,897				55
ETFs		360				311				49				354				6				1,367				1,230				137
Non-ETF index		96				85				11				93				3				369				353				16
Fixed income subtotal		950				864				86				940				10				3,688				3,480				208
Multi-asset		326				299				27				325				1				1,278				1,203				75
Alternatives:
Private markets		480				251				229				235				245				1,196				889				307
Liquid alternatives		146				138				8				143				3				568				572				(4	)
Currency and commodities(1)		80				44				36				63				17				247				185				62
Alternatives subtotal		706				433				273				441				265				2,011				1,646				365
Long-term		4,124				3,365				759				3,766				358				15,051				13,490				1,561
Cash management		293				240				53				264				29				1,049				909				140
Total investment advisory, administration fees and securities lending revenue		4,417				3,605				812				4,030				387				16,100				14,399				1,701
Investment advisory performance fees:
Equity		112				61				51				13				99				161				99				62
Fixed income		22				2				20				3				19				34				4				30
Multi-asset		10				5				5				1				9				24				28				(4	)
Alternatives:
Private markets		108				149				(41	)			7				101				308				273				35
Liquid alternatives		199				94				105				364				(165	)			680				150				530
Alternatives subtotal		307				243				64				371				(64	)			988				423				565
Total investment advisory performance fees		451				311				140				388				63				1,207				554				653
Technology services revenue		428				379				49				403				25				1,603				1,485				118
Distribution fees		322				303				19				323				(1	)			1,273				1,262				11
Advisory and other revenue:
Advisory		14				15				(1	)			11				3				49				81				(32	)
Other		45				18				27				42				3				175				78				97
Total advisory and other revenue		59				33				26				53				6				224				159				65
Total revenue	$	5,677			$	4,631			$	1,046			$	5,197			$	480			$	20,407			$	17,859			$	2,548

_________________________
(1)		Amounts include cryptocurrency and commodity ETFs and ETPs.

Highlights

• Investment advisory, administration fees and securities lending revenue increased $812 million from the fourth quarter of 2023 and $387 million from the third quarter of 2024, primarily driven by organic base fee growth, the impact of market beta on average AUM and approximately $230 million of fees related to AUM acquired in the GIP Transaction.
  Securities lending revenue of $161 million increased from $157 million in the fourth quarter of 2023 and $149 million in the third quarter of 2024.
• Performance fees increased $140 million from the fourth quarter of 2023, reflecting higher revenue from liquid alternative and long-only products, partially offset by lower revenue from private markets products.
  Performance fees increased $63 million from the third quarter of 2024, primarily driven by higher revenue from private markets and long-only products, partially offset by strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter.
• Technology services revenue increased $49 million from the fourth quarter of 2023 and $25 million from the third quarter of 2024, reflecting the successful onboarding of a number of new clients. Technology services annual contract value (“ACV”)⁽¹⁾ increased 12% from the fourth quarter of 2023, driven by strong demand for a full range of Aladdin technology offerings.

_________________________
(1)		See note (4) to the condensed consolidated statements of income and supplemental information on page 12 for more information on ACV.

SUMMARY OF OPERATING EXPENSE
	Three Months												Three Months
	Ended												Ended								Year Ended
	December 31,												September 30,								December 31,
(in millions), (unaudited)	2024				2023				Change				2024				Change				2024				2023				Change
Operating expense
Employee compensation and benefits	$	1,885			$	1,503			$	382			$	1,578			$	307			$	6,546			$	5,779			$	767
Sales, asset and account expense(1):
Distribution and servicing costs		565				502				63				549				16				2,171				2,051				120
Direct fund expense		389				318				71				379				10				1,464				1,331				133
Sub-advisory and other		42				35				7				34				8				140				116				24
Total sales, asset and account expense		996				855				141				962				34				3,775				3,498				277
General and administration expense:
Marketing and promotional		92				87				5				64				28				314				309				5
Occupancy and office related		113				105				8				105				8				421				418				3
Portfolio services		68				68				-				65				3				262				270				(8	)
Technology		182				186				(4	)			175				7				674				607				67
Professional services		88				67				21				67				21				277				195				82
Communications		10				11				(1	)			10				-				39				47				(8	)
Foreign exchange remeasurement		(7	)			(4	)			(3	)			3				(10	)			-				(6	)			6
Contingent consideration fair value adjustments		(28	)			2				(30	)			(2	)			(26	)			(36	)			3				(39	)
Other general and administration		78				67				11				75				3				270				252				18
Total general and administration expense		596				589				7				562				34				2,221				2,095				126
Restructuring charge		-				61				(61	)			-				-				-				61				(61	)
Amortization and impairment of intangible assets		125				38				87				89				36				291				151				140
Total operating expense	$	3,602			$	3,046			$	556			$	3,191			$	411			$	12,833			$	11,584			$	1,249

_________________________
(1)		Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.

Highlights

• Employee compensation and benefits expense increased $382 million from the fourth quarter of 2023 and $307 million from the third quarter of 2024, primarily reflecting higher incentive compensation as a result of higher performance fees and operating income. Fourth quarter 2024 employee compensation and benefit expense was also impacted by the GIP Transaction, including nonrecurring retention-related deferred compensation expense⁽¹⁾.
• Sales, asset and account expense increased $141 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM.
• General and administration expense increased $7 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, primarily associated with the acquisition-related costs⁽¹⁾ in connection with the GIP Transaction, including transaction costs recorded in professional services expense, partially offset by lower contingent consideration fair value adjustments. The general and administration expense increase from the third quarter of 2024 also included higher seasonal marketing and promotional expense.
• Amortization and impairment of intangible assets⁽¹⁾ increased $87 million from the fourth quarter of 2023 and $36 million from the third quarter of 2024, primarily reflecting amortization of intangible assets acquired in the GIP Transaction. In addition, third quarter 2024 amortization and impairment of intangible assets included the impact of a $50 million noncash impairment charge related to certain of the Company's indefinite-lived management contracts.
• In the fourth quarter of 2023, a restructuring charge⁽¹⁾ of $61 million, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in connection with initiatives to reorganize specific platforms, primarily Aladdin and private markets.

_________________________
(1)		These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustments for acquisition-related costs and restructuring charge, as applicable. See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

SUMMARY OF NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
	Three Months												Three Months
	Ended												Ended								Year Ended
	December 31,												September 30,								December 31,
(in millions), (unaudited)	2024				2023				Change				2024				Change				2024				2023				Change
Nonoperating income (expense), GAAP basis	$	28			$	342			$	(314	)		$	259			$	(231	)		$	721			$	880			$	(159	)
Less: Net income (loss) attributable to noncontrolling interests ("NCI")		(9	)			114				(123	)			60				(69	)			143				174				(31	)
Nonoperating income (expense), net of NCI		37				228				(191	)			199				(162	)			578				706				(128	)
Less: Hedge gain (loss) on deferred cash compensation plans(1)		(2	)			29				(31	)			9				(11	)			45				58				(13	)
Nonoperating income (expense), net of NCI, as adjusted(2)	$	39			$	199			$	(160	)		$	190			$	(151	)		$	533			$	648			$	(115	)
	Three Months												Three Months
	Ended												Ended								Year Ended
	December 31,												September 30,								December 31,
(in millions), (unaudited)	2024				2023				Change				2024				Change				2024				2023				Change
Net gain (loss) on investments, net of NCI
Private equity	$	(42	)		$	68			$	(110	)		$	9			$	(51	)		$	(10	)		$	349			$	(359	)
Real assets		(5	)			2				(7	)			13				(18	)			14				13				1
Other alternatives(3)		8				17				(9	)			9				(1	)			41				49				(8	)
Other investments(4)		42				15				27				20				22				127				66				61
Hedge gain (loss) on deferred cash compensation plans(1)		(2	)			29				(31	)			9				(11	)			45				58				(13	)
Subtotal		1				131				(130	)			60				(59	)			217				535				(318	)
Other income/gain (expense/loss)(5)		(10	)			20				(30	)			57				(67	)			132				(10	)			142
Total net gain (loss) on investments, net of NCI		(9	)			151				(160	)			117				(126	)			349				525				(176	)
Interest and dividend income		212				159				53				236				(24	)			767				473				294
Interest expense		(166	)			(82	)			(84	)			(154	)			(12	)			(538	)			(292	)			(246	)
Net interest income (expense)		46				77				(31	)			82				(36	)			229				181				48
Nonoperating income (expense), net of NCI		37				228				(191	)			199				(162	)			578				706				(128	)
Less: Hedge gain (loss) on deferred cash compensation plans(1)		(2	)			29				(31	)			9				(11	)			45				58				(13	)
Nonoperating income (expense), net of NCI, as adjusted(2)	$	39			$	199			$	(160	)		$	190			$	(151	)		$	533			$	648			$	(115	)

_________________________
(1)		Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans.
(2)		Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP, see notes to the condensed consolidated statements of income and supplemental information on pages 10 through 12.
(3)		Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
(4)		Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.
(5)		Amounts for the three months and year ended December 31, 2024, include earnings (losses) from certain equity method minority investments, which the Company recorded within nonoperating income (expense) beginning in the first quarter of 2024 and noncash pre-tax gains (losses) related to the revaluation of certain minority investments. In addition, amount for the year ended December 31, 2024 includes a pre-tax gain of approximately $66 million in connection with a transaction related to a minority investment in EquiLend Holdings, LLC and a noncash pre-tax gain in connection with the SpiderRock Transaction of approximately $19 million.

SUMMARY OF INCOME TAX EXPENSE
	Three Months											Three Months
	Ended											Ended									Year Ended
	December 31,											September 30,									December 31,
(in millions), (unaudited)	2024				2023				Change			2024					Change				2024				2023				Change
Income tax expense	$	442			$	438			$	4			$	574			$	(132	)		$	1,783			$	1,479			$	304
Effective tax rate		20.9	%			24.2	%		(330) bps					26.0	%		(510) bps					21.9	%			21.2	%		70 bps

Highlights

• Fourth quarter 2024 income tax expense includes $63 million of discrete tax benefits related to the realization of capital losses from changes in the Company’s organizational tax structure. In addition, fourth quarter 2024 income tax expense includes a $14 million net noncash tax expense related to the revaluation of certain deferred income tax liabilities.
• Third quarter 2023 income tax expense included approximately $223 million of discrete tax benefits related to the resolution of certain outstanding tax matters.

RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
		Three Months Ended												Year Ended
		December 31,								September 30,				December 31,
(in millions), (unaudited)		2024				2023				2024				2024				2023
Operating income, GAAP basis		$	2,075			$	1,585			$	2,006			$	7,574			$	6,275
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation) on deferred cash compensation plans (a)			-				28				7				43				57
Amortization and impairment of intangible assets (b)			125				38				89				291				151
Acquisition-related compensation costs (b)			116				2				11				148				17
Acquisition-related transaction costs (b)(1)			38				-				17				90				7
Contingent consideration fair value adjustments (b)			(28	)			2				(2	)			(36	)			3
Lease costs - New York (c)			-				-				-				-				14
Restructuring charge (d)			-				61				-				-				61
Reduction of indemnification asset (e)(1)			-				-				-				-				8
Operating income, as adjusted (1)		$	2,326			$	1,716			$	2,128			$	8,110			$	6,593
Revenue, GAAP basis		$	5,677			$	4,631			$	5,197			$	20,407			$	17,859
Non-GAAP adjustments:
Distribution fees			(322	)			(303	)			(323	)			(1,273	)			(1,262	)
Investment advisory fees			(243	)			(199	)			(226	)			(898	)			(789	)
Revenue used for operating margin measurement		$	5,112			$	4,129			$	4,648			$	18,236			$	15,808
Operating margin, GAAP basis			36.6	%			34.2	%			38.6	%			37.1	%			35.1	%
Operating margin, as adjusted (1)			45.5	%			41.6	%			45.8	%			44.5	%			41.7	%

_________________________
(1)	Amounts included within general and administration expense.
See note (1) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.

RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED
		Three Months Ended												Year Ended
		December 31,								September 30,				December 31,
(in millions), (unaudited)		2024				2023				2024				2024				2023
Nonoperating income (expense), GAAP basis		$	28			$	342			$	259			$	721			$	880
Less: Net income (loss) attributable to NCI			(9	)			114				60				143				174
Nonoperating income (expense), net of NCI			37				228				199				578				706
Less: Hedge gain (loss) on deferred cash compensation plans (a)			(2	)			29				9				45				58
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted (2)		$	39			$	199			$	190			$	533			$	648
See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items.

RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
		Three Months Ended												Year Ended
		December 31,								September 30,				December 31,
(in millions, except per share data), (unaudited)		2024				2023				2024				2024				2023
Net income attributable to BlackRock, Inc., GAAP basis		$	1,670			$	1,375			$	1,631			$	6,369			$	5,502
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)			2				(1	)			(2	)			(1	)			(1	)
Amortization and impairment of intangible assets (b)			94				28				67				218				114
Acquisition-related compensation costs (b)			87				1				8				110				12
Acquisition-related transaction costs (b)			28				-				13				66				5
Contingent consideration fair value adjustments (b)			(21	)			2				(2	)			(27	)			3
Lease costs - New York (c)			-				-				-				-				11
Restructuring charge (d)			-				46				-				-				46
Income tax matters			14				-				-				(123	)			-
Net income attributable to BlackRock, Inc., as adjusted (3)		$	1,874			$	1,451			$	1,715			$	6,612			$	5,692
Diluted weighted-average common shares outstanding			157.0				150.2				149.6				151.6				150.7
Diluted earnings per common share, GAAP basis		$	10.63			$	9.15			$	10.90			$	42.01			$	36.51
Diluted earnings per common share, as adjusted (3)		$	11.93			$	9.66			$	11.46			$	43.61			$	37.77

_________________________
(1)	Non-GAAP adjustments, excluding income tax matters, are net of tax.
See note (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items.

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)

BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

• Operating income, as adjusted, includes the following non-GAAP expense adjustments:

	(a)		Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.
	(b)		Acquisition-related costs. Acquisition related costs include adjustments related to amortization and noncash impairment of intangible assets, other acquisition-related costs, including professional services expense and compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.
	(c)		Lease costs – New York. In 2023, the Company continued to recognize lease expense within general and administration expense for both its current headquarters located at 50 Hudson Yards in New York and prior headquarters until the Company's lease on its prior headquarters expired in April 2023. The Company began lease payments related to its current headquarters in May 2023, but began recording lease expense in August 2021 when it obtained access to the building to begin its tenant improvements. Prior to the Company’s move to its current headquarters in February 2023, the impact of lease costs related to 50 Hudson Yards was excluded from operating income, as adjusted. In February 2023, the Company completed the majority of its move to 50 Hudson Yards and no longer excluded the impact of these lease costs. Subsequently, from February 2023 through April 2023, the Company excluded the impact of lease costs related to the Company's prior headquarters. Management believes excluding the impact of these respective New York lease costs (“Lease costs – New York”) when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
	(d)		Restructuring charge. In the fourth quarter of 2023, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with initiatives to reorganize specific platforms, primarily Aladdin and private markets. Management believes excluding the impact of these restructuring charges when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
	(e)		Reduction of indemnification asset. In connection with a previous acquisition, BlackRock recorded an $8 million indemnification asset. Due to the resolution of certain tax matters in the third quarter of 2023, BlackRock recorded $8 million of general and administration expense to reflect the reduction of the indemnification asset and an offsetting $8 million tax benefit. The $8 million general and administrative expense and $8 million tax benefit have been excluded from as adjusted results as there was no impact on BlackRock’s book value.

• Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.

(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters in 2024 include a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. In addition, amounts for 2024 include a net noncash expense of $14 million associated with the revaluation of deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. This discrete tax expense has been excluded from the as adjusted results as it does not have a cash flow impact as well as to ensure comparability among periods presented.

Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.

(4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date. ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.

FORWARD-LOOKING STATEMENTS

This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of HPS (the “HPS Transaction”), Preqin (the “Preqin Transaction”) and the GIP Transaction (together with the HPS Transaction and the Preqin Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the HPS Transaction and the Preqin Transaction, including delays in the expected closing date of the HPS Transaction or the Preqin Transaction, the possibility that either or both of the HPS Transaction or the Preqin Transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions; the possibility that expected synergies and value creation from the HPS Transaction or the Preqin Transaction will not be realized, or will not be realized within the expected time period; and the risk of impacts to business and operational relationships related to disruptions from the HPS Transaction or the Preqin Transaction; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental, social and governance matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock’s business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to BlackRock; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.

PERFORMANCE NOTES

Past performance is not indicative of future results. Except as specified, the performance information shown is as of December 31, 2024 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of November 30, 2024. The performance data does not include accounts terminated prior to December 31, 2024 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of December 31, 2024 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250115242864/en/

INVESTOR RELATIONS:

Caroline Rodda 212.810.3442

MEDIA RELATIONS:

Patrick Scanlan 212.810.3622

Source: BlackRock

FAQ

What was BlackRock's (BLK) AUM and net inflows for 2024?

BlackRock reached $11.6 trillion in AUM with record net inflows of $641 billion for the full year 2024, including $281 billion in Q4.

How much did BlackRock (BLK) return to shareholders in 2024?

BlackRock returned $4.7 billion to shareholders in 2024, including $1.6 billion in share repurchases.

What was BlackRock's (BLK) EPS for full year 2024?

BlackRock reported full-year 2024 diluted EPS of $42.01, or $43.61 as adjusted, representing a 15% increase from 2023.

How will the HPS Investment Partners acquisition impact BlackRock (BLK)?

The HPS acquisition is expected to create an integrated private credit franchise with approximately $220 billion in pro-forma client assets.

What was BlackRock's (BLK) operating margin in 2024?

BlackRock achieved an adjusted operating margin of 44.5% in 2024, an increase of 280 basis points from 2023.