KKR Co Inc (0Z1W.L) Q1 2025 Earnings Report

KKR’s QQ1 2025 quarter presents a mixed performance for a diversified financial services platform. Revenue came in at $3.055 billion, but gross profit was negative by $84.7 million as cost of revenue exceeded topline, contributing to an Operating Loss of $706.7 million and a Net Loss of $185.9 million. EBITDA stood at $1.495 billion and helped offset some operating weaknesses, aided by a substantial favorable swing in total other income and expenses totaling $1.478 billion. The result is a quarterly EPS of -$0.22, with YoY and QoQ declines in key profitability metrics. Notwithstanding the earnings volatility, the company generated robust cash flow: cash from operations of $2.55 billion and free cash flow of $2.529 billion. The balance sheet exhibits ample liquidity (cash and short‑term investments of $118.61 billion; current assets $225.20 billion; cash at period end $18.39 billion) but elevated leverage (long-term debt $50.79 billion; net debt $32.80 billion; equity multiplier ≈13.6). Valuation remains elevated with a price-to-book around 3.74 and an enterprise value multiple near 90.6, underscoring the premium attached to a large-scale asset-management platform even as near-term earnings declined. Looking ahead, management guidance was not disclosed in the provided QQ1 2025 materials; the key investment thesis will hinge on converting strong cash generation into sustainable earnings, advancing fee-related earnings through AUM growth, and maintaining balance-sheet discipline amid macro volatility.