KKR reported QQ4 2024 revenue of USD 3.20038 billion, with gross profit of USD 948.761 million and EBITDA of USD 2.490445 billion, yielding an EBITDA margin of approximately 77.8%. Net income stood at USD 1.1256 billion, producing a net margin of about 35.2% for the quarter. The materials show a meaningful lift in net income driven by total Other Income and Expenses net of USD 1.349871 billion, which substantially augmented after-tax profitability. On a core basis, the quarter’s revenue declined year-over-year by 26.8% and fell ~32.4% quarter-over-quarter, signaling softer operating activity or lower deal flow in Q4 amid a challenging environment for private markets activity. Despite the revenue contraction, operating income improved on a QoQ basis by 357.15% driven by the non-operating income tailwinds and expense management, while YoY operating income declined by 18.97%. Diluted earnings per share (EPS) was USD 1.18, while GAAP EPS reported USD 1.27, reflecting the same mix of items influencing net income.
The cash flow profile remains mixed. Net cash from operating activities was negative USD 111.7 million for the quarter, with free cash flow negative USD 164.8 million. Investing activities absorbed USD 2.25 billion, largely due to purchases of investments (USD 15.56 billion) offset by sales/maturities of investments (USD 13.35 billion). Financing activities added USD 2.89 billion, supporting net cash after all activities of USD 0.41 billion for the period and a year-end cash balance of USD 15.37 billion. The balance sheet shows substantial liquidity (cash and short-term investments totaling roughly USD 112.56 billion) against total assets of USD 360.1 billion and total liabilities of USD 298.1 billion, with long-term debt of USD 50.82 billion and net debt of USD 35.94 billion. Equity stands at USD 23.65 billion, implying a high equity multiplier and significant leverage consistent with a capital deployment model in private markets.
Overall, the quarter underscores KKR’s scale, liquidity, and portfolio deployment capabilities, while highlighting a near-term earnings cadence that is heavily influenced by non-operating items and asset cycle dynamics. The outlook hinges on fundraising momentum, carry realizations, and the pace of private markets activity as macro conditions evolve.