Abstract
Ares Management LP will release its quarterly results on February 05, 2026 Pre-Market; this preview synthesizes recent financial data, segment trends, and institutional commentary to frame expectations and the critical drivers likely to shape the print and immediate market reaction.
Market Forecast
Consensus projections for the current quarter point to revenue of USD 1.31 billion, a gross profit margin near recent levels, a net profit margin consistent with last quarter’s 17.43%, and adjusted EPS of USD 1.70, implying year-over-year EPS growth of 31.30%. The company’s main business is driven by management fees and carry-related income, with outlook highlighting steady fee-paying AUM growth and ongoing deployment across credit and private equity strategies. The most promising segment appears to be management fees, contributing USD 971.76 million last quarter and positioned for sustained expansion given fee-paying AUM tailwinds and pipeline visibility.
Last Quarter Review
Ares Management LP reported last quarter revenue of USD 1.14 billion, a gross profit margin of 38.38%, GAAP net profit attributable to the parent company of USD 0.29 billion, a net profit margin of 17.43%, and adjusted EPS of USD 1.19, with year-over-year adjusted EPS growth of 25.26%.
Net profit increased robustly on a quarter-over-quarter basis, rising 110.77% as operating leverage and mix effects amplified bottom-line results. Main business highlights included management fees at USD 971.76 million, interest distribution at USD 464.67 million, incentive fees at USD 100.67 million, administrative, transaction and other fees at USD 102.56 million, and principal investment income at USD 17.98 million.
Current Quarter Outlook
Main Business: Fee Revenue and Carry Dynamics
Management fees remain the core earnings engine and are expected to underpin revenue stability this quarter. The forecast implies total revenue of USD 1.31 billion and EBIT of USD 512.07 million, reflecting anticipated continued deployment across private credit, real assets, and corporate private equity funds. Fee-paying AUM expansion typically drives durable management fees, while realized performance fees can introduce quarter-to-quarter variability based on exits and crystallizations. With adjusted EPS estimated at USD 1.70 and revenue forecast to grow 13.03% year over year, the setup suggests a healthy balance between recurring fee streams and selective performance fee contributions. Monitoring fundraising vintages, deployment velocity, and realizations will be important to judge sustainability of fee growth versus the timing of carry recognition.
Most Promising Business: Management Fees
Last quarter’s USD 971.76 million of management fees underscores the scale of the franchise and the predictability of its cash flows. The current quarter’s outlook points to resilient fee revenue amid continued investor demand for private credit strategies, infrastructure and real assets, and solutions tailored to insurance balance sheets. As new strategies scale and existing funds move from commitment to fee-bearing status, fee revenue tends to rise with minimal incremental cost, supporting margin preservation. The segment’s growth potential hinges on net inflows into fee-paying vehicles, the pace of capital deployment, and the breadth of strategies that attract institutional commitments. Given the pipeline indicated by the revenue estimate and EBIT trajectory, management fees are positioned to remain the largest contributor and the most durable driver of earnings quality.
Key Stock Price Drivers This Quarter
Near-term performance is likely to hinge on the mix of recurring fee revenues and performance fee realization, which together shape margin and EPS outcomes versus expectations. The EBIT forecast at USD 512.07 million and adjusted EPS at USD 1.70 imply operating leverage that could surprise if realizations or valuation marks are favorable in private equity or real assets portfolios. Conversely, any shortfall in carry recognition or slower deployment could weigh on margins despite fee revenue strength. Investors will also watch the net profit margin relative to the last quarter’s 17.43% to gauge efficiency and the balance of fixed versus variable compensation costs. Guidance around fundraising cadence, dry powder utilization, and the contribution from insurance-related platforms may influence sentiment on forward revenue visibility and EPS durability.
Analyst Opinions
Institutional commentary gathered over the recent period reflects a majority bullish stance on Ares Management LP’s upcoming quarterly results. Positive views emphasize durable fee-earning AUM growth and the supportive environment for private credit origination, which together underpin the revenue estimate of USD 1.31 billion and adjusted EPS forecast of USD 1.70. Analysts highlight that, with EBIT projected at USD 512.07 million and year-over-year revenue growth forecast at 13.03%, operating leverage should remain intact, provided expenses scale in line with fee revenues and performance fee timing does not materially diverge from expectations. The bullish case also notes that last quarter’s adjusted EPS of USD 1.19, which exceeded estimates, demonstrates execution through varying market conditions, suggesting the franchise is positioned to meet or modestly beat consensus if fundraising and deployment trends track management’s plan.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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