Executive Summary
For the first quarter of fiscal 2025, Hamilton Lane Incorporated (HLNE) reported a robust 33% increase in management and advisory fee revenue, leading to an impressive GAAP EPS of $1.47 and non-GAAP EPS of $1.51. The company's growth trajectory, marked by a total AUM increase to $130 billion and an increasing fee rate, reflects its strong market positioning and effective strategy. Key developments included a significant fundraising round that saw the final close of its sixth secondary fund, which achieved $5.6 billion in commitments—its largest to date. Management highlighted their confidence in continuing to capitalize on differentiated strategies to expand market penetration in a competitive landscape.
Key Performance Indicators
QoQ: -10.40% | YoY:38 525.43%
Key Insights
**Revenue Performance:** Q1 2025 revenue reached $196.73 million, up 57.34% YoY and 11.36% QoQ. The gross profit margin stood at 68.98%, indicating effective cost management during growth.
**Profitability Metrics:** Hamilton Lane's net income saw an increase of 90.22% YoY to $58.96 million. Operating income was reported at $89.61 million, maintaining a healthy operating margin of 45.55%.
**Cash Flow and Balance Sheet Strength:** Operating cash flow for the quarter totaled $79.74 million,...
Financial Highlights
Revenue Performance: Q1 2025 revenue reached $196.73 million, up 57.34% YoY and 11.36% QoQ. The gross profit margin stood at 68.98%, indicating effective cost management during growth.
Profitability Metrics: Hamilton Lane's net income saw an increase of 90.22% YoY to $58.96 million. Operating income was reported at $89.61 million, maintaining a healthy operating margin of 45.55%.
Cash Flow and Balance Sheet Strength: Operating cash flow for the quarter totaled $79.74 million, supporting free cash flow of $78.24 million. The firm ended the quarter with $171.08 million in cash, indicating solid liquidity and financial stability. Total liabilities amount to $635.08 million, against total assets of $1.37 billion, maintaining a debt ratio of 20%.
Key Ratios: Return on equity (ROE) was reported at 10.4%, while the current ratio stood at 1.36, showcasing sufficient liquidity.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
196.73M |
57.34% |
11.36% |
| Gross Profit |
135.71M |
53.02% |
5.57% |
| Operating Income |
89.61M |
38 525.43% |
-10.40% |
| Net Income |
58.96M |
90.22% |
21.93% |
| EPS |
1.49 |
81.71% |
25.21% |
Key Financial Ratios
operatingProfitMargin
45.6%
operatingCashFlowPerShare
$2.01
freeCashFlowPerShare
$1.97
dividendPayoutRatio
58.4%
Management Commentary
Management Commentary on Growth:
John Oh, Head of Shareholder Relations, noted, "We achieved significant growth in our management and advisory fees, showing strong demand for our services in private markets. This reflects our leadership and depth in asset management."
Erik Hirsch, Co-CEO, emphasized, "We recorded another outstanding quarter in a challenging market. Our steadfast focus on delivering excellence drives our brand expansion and growth in AUM, which reached $940 billion."
Investment Strategy Insights: Griff Norville, Head of Technology Solutions, stated, "Our data advantage through Cobalt differentiates us in attracting new clients, and with over 200 clients, we see strong potential for scaling revenue through technology offerings."
"Our management and advisory fee revenue grew by 33%, translating into GAAP EPS of $1.47 based on $59 million of net income. This keeps us on track for a dividend increase to $1.96 per share for the fiscal year."
— John Oh, Head of Shareholder Relations
"Investment activity remains fulsome, and as of June 30th, our fund was 40% committed with a strong pipeline ahead. We appreciate the trust placed in us by our clients."
— Erik Hirsch, Co-CEO
Forward Guidance
Looking forward, Hamilton Lane has outlined ambitious but achievable targets, bolstered by its focus on further enhancing its Technology Solutions business. The management's guidance indicates a strong confidence in sustaining 33% growth in management fees due to increasing client demands and a larger asset footprint. Investors should monitor the ongoing momentum in both specialized funds and customized separate accounts, particularly as market conditions evolve. Management anticipates continued net inflows and a rising blended fee rate as they capture higher-margin segments of AUM.