Executive Summary
In Q2 2025, Hamilton Lane Incorporated achieved strong financial performance, marked by a year-over-year revenue growth of 21% in management and advisory fee revenue, resulting in a GAAP EPS of $2.85. The firm’s AUM reached $131 billion, a 10% increase from the previous year, largely driven by both specialized funds and customized separate accounts. Recognized for its achievements, Hamilton Lane was added to the S&P MidCap 400 Index, underscoring its commitment to delivering results for clients while benefiting shareholders. This performance highlights the firm’s strategic expansion and innovative solutions in private markets, which solidify its status as a leader in the asset management sector.
Key Performance Indicators
QoQ: -23.75% | YoY:18.22%
QoQ: -21.04% | YoY:32.38%
QoQ: -26.62% | YoY:5 511.93%
Key Insights
**Revenue and Income Metrics:** Q2 2025 revenue was reported at $149.999 million, reflecting an 18.22% YoY growth, while net income stood at $54.982 million with a net income margin of 36.65%.
**Profitability Ratios:** Operating income was $65.755 million, representing an operating income margin of 43.84% and an EBITDA of $82.165 million, yielding an EBITDA margin of 54.77%.
**Balance Sheet Strength:** Total assets reached $1.424 billion with a significant cash balance of $226.969 million. The...
Financial Highlights
Revenue and Income Metrics: Q2 2025 revenue was reported at $149.999 million, reflecting an 18.22% YoY growth, while net income stood at $54.982 million with a net income margin of 36.65%.
Profitability Ratios: Operating income was $65.755 million, representing an operating income margin of 43.84% and an EBITDA of $82.165 million, yielding an EBITDA margin of 54.77%.
Balance Sheet Strength: Total assets reached $1.424 billion with a significant cash balance of $226.969 million. The total liabilities were $622.408 million, implying a strong equity position of $606.58 million and a debt-to-equity ratio of 0.452.
Cash Flow Metrics: Net cash provided by operating activities was impressive at $117.402 million, supporting a free cash flow of $115.828 million for the quarter.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
150.00M |
18.22% |
-23.75% |
| Gross Profit |
107.16M |
32.38% |
-21.04% |
| Operating Income |
65.76M |
5 511.93% |
-26.62% |
| Net Income |
54.98M |
30.93% |
-6.75% |
| EPS |
1.39 |
25.23% |
-6.71% |
Key Financial Ratios
operatingProfitMargin
43.8%
operatingCashFlowPerShare
$2.96
freeCashFlowPerShare
$2.92
dividendPayoutRatio
61.3%
Management Commentary
Strategic Growth Initiatives: Erik Hirsch, Co-CEO, stated, "Our management and advisory fee revenue grew by 21%... This growth translated into GAAP EPS of $2.85."
Milestone Achievement: Hirsch also highlighted, "On September 23, HLNE was officially added to the S&P MidCap 400 Index," signaling the firm’s strong market presence and credibility.
Fund and AUM Expansion: Management emphasized that "AUM stood at $131 billion... and grew by $12 billion or 10% compared to the prior year period." Furthermore, they reported that "total fee-earning AUM... grew $8.3 billion or 14% relative to the prior year." This showcases the firm's capability to effectively adapt and expand in the competitive asset management landscape.
"We have achieved strong growth... with management and advisory fees up 21% versus the prior year period," - Jeff Armbrister, CFO
— Jeff Armbrister
"AUM stood at $131 billion at quarter end and grew $12 billion or 10% compared to the prior year period," - Erik Hirsch, Co-CEO
— Erik Hirsch
Forward Guidance
Looking ahead, Hamilton Lane provided a confident outlook, targeting continued revenue growth in management and advisory fees. Hirsch asserted, "We are actively investing in enhancing our product offerings and market access," clearly indicating a commitment to long-term growth. The firm aims to maintain its expansion in various asset classes and continues to set its dividend target at $1.96 per share for fiscal year 2025, indicating strong financial health.