P10 Reports Fourth Quarter and Full Year 2024 Earnings Results

Rhea-AI Summary

P10 (NYSE: PX) reported strong Q4 2024 financial results with record quarterly revenue of $85 million, representing a 35% year-over-year increase. The company's fee-paying assets under management grew 10% to $25.7 billion.

Key Q4 highlights include GAAP Net Income of $5.7 million (compared to -$1.9M in prior year), Adjusted EBITDA up 40% to $42.9 million, and Fee-Related Earnings increasing 39% to $42.7 million. Full-year 2024 revenue reached $296.4 million, up 23% year-over-year.

The company actively engaged in share repurchases, buying back approximately 815,327 shares at an average price of $12.72 in Q4, and 6.6 million shares at $8.88 throughout 2024, totaling $59.1 million. The Board authorized an additional $40 million for share repurchases and declared a quarterly dividend of $0.035 per share.

Positive

• Record quarterly revenue of $85M, up 35% YoY
• Fee-paying AUM increased 10% YoY to $25.7B
• Q4 GAAP Net Income turned positive to $5.7M from -$1.9M
• Adjusted EBITDA grew 40% YoY to $42.9M in Q4
• Full-year revenue increased 23% to $296.4M
• Board authorized additional $40M for share repurchases

Negative

• None.

Insights

Financial Analyst

P10's Q4 2024 results reveal a company firing on all cylinders, with multiple indicators pointing to sustainable growth and improving operational efficiency. The 35% revenue growth to $85 million is particularly impressive as it's entirely fee-based, representing high-quality, recurring revenue streams that investors typically value at premium multiples.

The transformation in profitability metrics tells a compelling story of operational leverage. The shift from a GAAP net loss to $5.7 million in profit, coupled with a 40% increase in Adjusted EBITDA to $42.9 million, demonstrates that revenue growth is translating efficiently to bottom-line results. The 50% EBITDA margin suggests strong pricing power and cost control in their private markets platform.

The company's capital allocation strategy deserves special attention. The repurchase of 6.6 million shares at an average price of $8.88 appears particularly astute given current market prices, while the new $40 million authorization signals management's continued confidence in the company's intrinsic value. The quarterly dividend, while modest at $0.035 per share, establishes a baseline for shareholder returns that complements the growth story.

Perhaps most telling is the $905 million in new fee-paying AUM secured in Q4, contributing to full-year fundraising that exceeded guidance by over $1 billion. This outperformance in capital raising, particularly in a challenging market environment, suggests strong institutional demand for P10's investment strategies and bodes well for future revenue growth given the typically multi-year lock-up nature of private market funds.

Generated Record Quarterly Revenue of $85 Million, a 35% Annual Increase

DALLAS, Feb. 12, 2025 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX) (the “Company”), a leading private markets solutions provider, today reported financial results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

• Revenue: $85 million, a 35% increase year over year.
• Fee-Related Revenue: $85 million, a 37% increase year over year.
• Fee-Paying Assets Under Management: $25.7 billion, a 10% increase year over year.
• GAAP Net Income (Loss): $5.7 million compared to $(1.9) million in the prior year.
• Adjusted EBITDA: $42.9 million, a 40% increase year over year.
• Fee-Related Earnings: $42.7 million, a 39% increase year over year.
• Adjusted Net Income: $35.3 million, a 39% increase year over year.
• Fully Diluted GAAP EPS: $0.05 compared to $(0.01) in the prior year.
• Fully Diluted ANI per share: $0.30, a 44% increase year over year.
  

Fiscal Year End 2024 Financial Highlights

• Revenue: $296.4 million, a 23% increase year over year.
• Fee-Related Revenue: $291.3 million, a 23% increase year over year.
• GAAP Net Income (Loss): $19.7 million, compared to $(7.8) million in the prior year.
• Adjusted EBITDA: $144.5 million, a 17% increase year over year.
• Fee-Related Earnings: $142.1 million, a 15% increase year over year.
• Adjusted Net Income: $120.2 million, an 18% increase year over year.
• Fully Diluted GAAP EPS: $0.16, compared to $(0.06) in the prior year.
• Fully Diluted ANI per share: $1.00, a 22% increase year over year.

A presentation of the quarterly financials may be accessed here and is available on the Company’s website.

“P10 delivered record financial performance in the fourth quarter, capping off a remarkable year. Our investment strategies carried momentum in the fourth quarter, achieving $905 million in gross new fee-paying AUM. We also exceeded our 2024 fundraising guidance by over a billion dollars and delivered strong growth across our platform,” said Luke Sarsfield, P10 Chairman and Chief Executive Officer. “Over the course of 2024, we executed on all strategic priorities outlined at the start of the year, which included optimizing our leadership team, driving increased organic growth, reaccelerating our M&A engine, generating operational efficiencies and enhancing our transparency. The Company is well positioned for an exciting 2025 and to meet or exceed the long-term financial guidance we provided at our inaugural Investor Day in September 2024.”

Stock Repurchase Program

In the fourth quarter, the Company repurchased approximately 815,327 shares at an average price of $12.72 per share. In 2024, the Company repurchased approximately 6,641,827 shares at an average price of $8.88 per share, for a total of $59.1 million in the year. The repurchase activity left approximately $3.5 million available under the repurchase authorization at the end of the fourth quarter. This week, the Board of Directors authorized an additional $40 million under the share repurchase program which brings the total available under the plan to approximately $43.5 million.

Declaration of Dividend

The Board of Directors of the Company has declared a quarterly cash dividend of $0.035 per share on Class A and Class B common stock, payable on March 20^th, 2025, to the holders of record as of the close of business on February 28^th, 2025.

Conference Call Details

The Company will host a conference call at 8:30 a.m. Eastern Time on Wednesday, February 12, 2025. All participants must register prior to joining the event.

• To join and view the live webcast, please register here.
• To join by telephone, please register here.

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 December 31, 2024, 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, including risks relating to: 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, including our pending acquisition of Qualitas Funds SGEIC, S.A.; assumptions relating to our operations, financial results, financial condition, business prospects and growth strategy; the impacts of emerging technologies, such as artificial intelligence and machine learning; 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, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2024, 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, Adjusted EBITDA, Adjusted EBITDA Margin, Fee-Related Revenue (“FRR”), Fee-Related Earnings (“FRE”), Fee-Related Earnings Margin, Adjusted Net Income (“ANI”) and, Fully Diluted ANI per share 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
jclarkson@prosek.com

Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands except share and per share amounts)		Three Months Ended					Twelve Months Ended					% Change
		December 31, 2024		December 31, 2023			December 31, 2024		December 31, 2023			Q4'24 vs Q4'23	YTD'24 vs YTD'23
GAAP Net Income/(Loss)		$ 5,701		$ (1,893	)		$ 19,667		$ (7,772	)		N/A	N/A
Adjustments:
Depreciation & amortization		6,902		7,945			28,314		31,472			-13%	-10%
Interest expense, net		6,927		5,792			25,510		21,872			20%	17%
Income tax expense		1,967		1,826			8,698		4,632			8%	88%
Non-recurring expenses		10,388		3,204			17,520		13,874			224%	26%
Non-cash stock based compensation		4,999		5,252			22,480		21,519			-5%	4%
Non-cash stock based compensation – acquisitions		2,414		779			7,971		8,674			210%	-8%
Non-cash stock based compensation – CEO transition		–		4,225			–		6,331			-100%	-100%
Earn out related compensation		3,597		3,597			14,312		22,992			0%	-38%
Adjusted EBITDA		$ 42,895		$ 30,727			$ 144,472		$ 123,594			40%	17%
Less:
Cash interest expense		(6,497	)	(5,049	)		(21,727	)	(20,100	)		29%	8%
Cash income taxes, net of taxes related to acquisitions		(1,101	)	(206	)		(2,538	)	(1,539	)		434%	65%
Adjusted Net Income		$ 35,297		$ 25,472			$ 120,208		$ 101,955			39%	18%
Fully Diluted ANI per Share
Shares outstanding		111,333		116,299			112,549		116,104			-4%	-3%
Fully Diluted Shares outstanding		119,286		124,163			120,375		124,063			-4%	-3%
ANI per share		$0.32		$0.22			$1.07		$0.88			45%	22%
Fully Diluted ANI per share(1)		$0.30		$0.21			$1.00		$0.82			44%	22%
Adjusted EBITDA Margin
Total Revenues		$ 85,014		$ 63,067			$ 296,448		$ 241,734			35%	23%
Adjusted EBITDA		42,895		30,727			144,472		123,594			40%	17%
Adjusted EBITDA Margin		50	%	49	%		49	%	51	%		N/A	N/A
Fee-Related Revenue
Total Revenues		$ 85,014		$ 63,067			$ 296,448		$ 241,734			35%	23%
Adjustments:
Non-Fee Related Revenue		13		(1,126	)		(5,179	)	(4,730	)		-101%	9%
Fee-Related Revenue		$ 85,027		$ 61,941			$ 291,269		$ 237,004			37%	23%
Fee-Related Earnings
GAAP Net Income/(Loss)		$ 5,701		$ (1,893	)		$ 19,667		$ (7,772	)		N/A	N/A
Adjustments		37,194		32,620			124,805		131,366			14%	-5%
Adjusted EBITDA		$ 42,895		$ 30,727			$ 144,472		$ 123,594			40%	17%
Less:
Non-Fee Related Income		(173	)	(87	)		(2,354	)	(497	)		99%	374%
Fee-Related Earnings		$ 42,722		$ 30,640			$ 142,118		$ 123,097			39%	15%
Fee-Related Earnings Margin		50	%	49	%		49	%	52	%		N/A	N/A

^{(1) Fully Diluted ANI per share 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, as well as Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), Adjusted EBITDA Margin, 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 Adjusted EBITDA, less actual cash paid for interest and federal and state income taxes.

In order to compute Adjusted EBITDA, 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 the debt refinance completed in August 2024;
• 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; and
• The effects of income taxes.

Fee-Related Revenues is calculated as Total Revenues less any incentive fees.

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.

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total GAAP revenues. We use Adjusted EBITDA Margin to provide an additional measure of profitability.

FAQ

What was P10's (PX) Q4 2024 revenue growth rate?

P10 reported a 35% year-over-year revenue growth in Q4 2024, reaching $85 million.

How much did P10 (PX) spend on share repurchases in 2024?

P10 spent $59.1 million on share repurchases in 2024, buying back approximately 6.6 million shares at an average price of $8.88 per share.

What is P10's (PX) quarterly dividend for Q1 2025?

P10 declared a quarterly cash dividend of $0.035 per share, payable on March 20th, 2025.

How much did P10's (PX) fee-paying AUM grow in Q4 2024?

P10's fee-paying Assets Under Management grew 10% year-over-year to $25.7 billion in Q4 2024.

What was P10's (PX) Adjusted EBITDA for Q4 2024?

P10's Adjusted EBITDA for Q4 2024 was $42.9 million, representing a 40% increase year-over-year.