Apollo Global Management reported Q3 2025 revenue of $9.936 billion, up 27.8% year over year and 45.8% quarter over quarter, driven by a resilient fee-based business and favorable market conditions that supported strong operating leverage. Gross profit reached $9.062 billion, yielding a gross margin of 91.2%, while operating income stood at $8.653 billion and the company posted an operating margin of 87.1%. Net income was $1.736 billion, up 114.1% year over year, with earnings per share (EPS) of $2.91 (diluted $2.78), reflecting a meaningful improvement in profitability despite a sizable non-operating charge in the quarter.
The quarter benefited from a durable fee-related earnings base and diversified revenue streams across credit, private equity, and real assets. However, total other income and expenses were negative at approximately $5.754 billion, a sizable non-operating item that weighed on pretax income and underscores the importance of monitoring non-operating drivers and impairment/fair-value adjustments in volatile markets. After tax, net income surpassed the prior year, aided by the strong operating backdrop and favorable mix. ROC/ROE metrics remain positive, with a net margin of 17.5% and a return on equity of about 7.5%, supported by a high gross margin and efficient cost structure.
Looking ahead, management has not issued concrete quarterly guidance in the data provided, but the earnings profile suggests potential for continued fee-based earnings growth if AUM trends persist and capital markets remain constructive. Investors should monitor AUM inflows, performance fees, and the trajectory of non-operating items that caused the near-term swing in net income. Overall, the QQ3 results reinforce Apollo’s position as a leading diversified asset manager with strong profitability, a high-margin core business, and meaningful but manageably sized leverage within a capital-light, fee-driven model.