Ares Management (NYSE:ARES) Issues Quarterly Earnings Results

Ares Management (NYSE:ARES) released its quarterly earnings data on Thursday. The asset manager reported $1.45 earnings per share for the quarter, missing the consensus estimate of $1.71 by ($0.26), FiscalAI reports. Ares Management had a net margin of 11.72% and a return on equity of 16.33%. The firm had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same period in the prior year, the firm earned $0.55 earnings per share.

Here are the key takeaways from Ares Management’s conference call:

• Ares reported record scale — AUM topped $622 billion, 2025 fundraising reached a record $113 billion (Q4 $36B), and FPAUM rose 32% to $385 billion, driving management fees, FRE and after‑tax realized income per share each up >20% year‑over‑year.
• The board declared a 20% year‑over‑year increase to the Q1 2026 common dividend of $1.35 per share, payable March 31, reflecting management’s confidence in cash flow and realizations.
• Management expects margin and revenue tailwinds from the GCP acquisition, investments in digital infrastructure/data centers and back‑office AI initiatives, guiding 2026 FRE margins toward the high end of its annual target and anticipating the data‑center business will flip to positive FRE.
• Company highlights strong portfolio fundamentals — private credit loan‑to‑value near ~40%, improving interest coverage, low and stable non‑accruals, essentially zero net realized losses in U.S. direct lending, and double‑digit EBITDA growth across key strategies, supporting earnings resilience.

Ares Management Stock Down 11.3%

Shares of ARES stock traded down $15.52 during trading hours on Thursday, hitting $121.70. 10,025,140 shares of the company were exchanged, compared to its average volume of 2,961,110. The stock has a market capitalization of $39.78 billion, a price-to-earnings ratio of 52.23, a P/E/G ratio of 0.76 and a beta of 1.52. Ares Management has a one year low of $110.63 and a one year high of $195.26. The business’s 50-day simple moving average is $164.16 and its two-hundred day simple moving average is $165.96. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.22 and a current ratio of 0.22.

Insider Buying and Selling

In other news, CEO Michael J. Arougheti sold 186,197 shares of Ares Management stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $152.75, for a total value of $28,441,591.75. Following the completion of the transaction, the chief executive officer owned 290,997 shares in the company, valued at approximately $44,449,791.75. This trade represents a 39.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last 90 days, insiders sold 590,000 shares of company stock worth $90,653,808. Company insiders own 36.86% of the company’s stock.

Institutional Investors Weigh In On Ares Management

Several institutional investors and hedge funds have recently bought and sold shares of ARES. AQR Capital Management LLC lifted its holdings in shares of Ares Management by 116.7% in the 1st quarter. AQR Capital Management LLC now owns 10,360 shares of the asset manager’s stock worth $1,519,000 after purchasing an additional 5,579 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Ares Management by 5.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager’s stock worth $197,000 after acquiring an additional 70 shares during the period. Empowered Funds LLC lifted its position in Ares Management by 42.7% in the 1st quarter. Empowered Funds LLC now owns 6,197 shares of the asset manager’s stock valued at $909,000 after purchasing an additional 1,853 shares during the last quarter. Focus Partners Wealth boosted its position in shares of Ares Management by 15.3% during the first quarter. Focus Partners Wealth now owns 1,902 shares of the asset manager’s stock worth $279,000 after buying an additional 252 shares during the period. Finally, Geneos Wealth Management Inc. grew its holdings in Ares Management by 708.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 493 shares of the asset manager’s stock worth $72,000 after buying an additional 432 shares in the last quarter. Institutional investors and hedge funds own 50.03% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on ARES shares. Oppenheimer reissued an “outperform” rating and issued a $224.00 price objective on shares of Ares Management in a research report on Tuesday, January 20th. Citigroup reiterated a “market outperform” rating on shares of Ares Management in a report on Tuesday, October 21st. TD Cowen reaffirmed a “buy” rating on shares of Ares Management in a research report on Wednesday, January 14th. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Management in a report on Monday, December 29th. Finally, Wolfe Research set a $210.00 price target on Ares Management and gave the stock an “outperform” rating in a report on Wednesday, January 7th. Twelve research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $194.79.

Key Ares Management News

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Record direct‑lending activity — Ares said U.S. direct lending closed ~$19.4B in Q4 and ~$55.0B for 2025, underscoring growth in fee‑earning origination and pipeline strength. Ares Announces Record Fourth Quarter and Full-Year 2025 U.S. Direct Lending Origination Activity
• Positive Sentiment: Revenue beat — Ares reported revenue of $1.50B versus consensus ~ $1.38B, which helps support fee revenue growth and partially offsets the EPS miss. Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Asset‑management growth continues — Coverage and analysis note AUM/scale expansion that supports long‑term earnings power despite near‑term margin pressure. Ares Management: Growth Continues Despite Macro Fears
• Neutral Sentiment: Analyst stance mixed but constructive — Brokerages still show a consensus around a “Moderate Buy”, indicating some investor confidence remains while the firm digests the quarter. Ares Management Corporation (NYSE:ARES) Given Consensus Recommendation of “Moderate Buy” by Brokerages
• Neutral Sentiment: Key metrics show mixed picture — Several writeups compare line‑by‑line metrics vs. estimates and year‑ago results; useful for judging fee mixes and realized income drivers. Ares Management (ARES) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: EPS miss and rising expenses — Ares reported $1.45 EPS vs. consensus ~$1.71–1.72; Zacks and other outlets attribute the shortfall largely to higher year‑over‑year expenses, which pressured profitability and drove selling. Ares Management Stock Falls as Q4 Earnings Miss, Expenses Rise Y/Y
• Negative Sentiment: Weak GAAP earnings per share — GAAP net income attributable to Ares was $54.2M and EPS on a basic/diluted basis was $0.08 for the quarter, highlighting near‑term accounting/realization volatility. Ares Management Corporation Reports Fourth Quarter and Full Year 2025 Results

Ares Management Company Profile

Ares Management Corporation (NYSE: ARES) is a global alternative asset manager that provides investment solutions across credit, private equity and real estate. The firm originates and manages capital across a range of strategies including direct lending, syndicated and special situations credit, private equity buyouts and growth investments, and real estate equity and debt. Ares serves institutional investors, insurance companies, pension funds, sovereign wealth funds, and high‑net‑worth clients through both commingled funds and bespoke managed account structures.

Within credit, Ares offers strategies spanning leveraged loans, structured credit, opportunistic and distressed debt, and specialty finance, with an emphasis on underwriting, portfolio construction and active asset management.