KKR reported a strong third quarter 2025 with solid top-line growth and exceptionally high gross and operating margins, underscoring the durability of its fee-related earnings and portfolio performance in a challenging macro environment. Revenue of $5.526 billion, gross profit of $4.571 billion and EBITDA of $4.156 billion translated into a gross margin of 82.7% and an operating margin of 75.2%. Net income reached $1.84 billion, representing a net margin of 33.3%, driven by robust core operating performance even as a sizable non-operating expense reduced pretax income. YoY comparisons show meaningful improvements: revenue up 16.8%, gross profit up 416.1%, operating income up materially, and net income up 206.4%. On a QoQ basis, all core profitability metrics improved meaningfully, reflecting seasonality and continued scale in asset management activities. The quarter confirms KKR’s ability to generate durable earnings from its diversified private markets platform; however, the outsized total other income/expenses net of approximately -$1.96 billion remains a source of earnings volatility in reported results. Management commentary (where available) and portfolio performance will be critical to validate sustainability of these margin levels and the trajectory of fee-based earnings.