EX-99.12blk-ex99_1.htmEX-99.1 EX-99.1
Exhibit 99.1
INVESTOR RELATIONS:
Caroline Rodda 212.810.3442
MEDIA RELATIONS:
Patrick Scanlan 212.810.3622
BlackRock Reports First Quarter 2025 Diluted EPS of $9.64, or $11.30 as adjusted
New York, April 11, 2025 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months ended March 31, 2025.
$84 billion of quarterly total net inflows, reflecting 3% annualized organic asset growth, led by a record first quarter for iShares® ETFs alongside private markets and active net inflows
Higher annualized organic base fee growth in the quarter was broad-based across the platform, driven by private markets, ETFs, and systematic active strategies
12% increase in revenue year-over-year reflects positive impact of markets, organic base fee growth and fees related to the GIP Transaction, as well as higher technology services and subscription revenue, partially offset by lower performance fees
16% growth in technology services and subscription revenue year-over-year, driven by continued momentum in Aladdin® and the partial impact of the Preqin Transaction, which closed on March 3, 2025
0.3% increase in year-over-year GAAP operating income and 8% decrease in GAAP diluted EPS were impacted by acquisition-related costs, which have been excluded from as adjusted results
14% increase in year-over-year as adjusted operating income
15% increase in year-over-year as adjusted EPS also reflects a lower effective tax rate, partially offset by lower nonoperating income and higher diluted share count in the current quarter
$375 million of share repurchases in the current quarter and 2% increase in quarterly cash dividend to $5.21 per share
Laurence D. Fink, Chairman and CEO:
“BlackRock’s positioning and connectivity with clients are stronger than ever, and it’s clear in our results. We delivered 6% organic base fee growth in the first quarter, representing our best start to a year since 2021 and secular strength against a complex market backdrop. We are helping clients navigate market and policy changes, while also providing insights on long-term structural growth opportunities.
“BlackRock is a global firm, but one that operates hyper-locally. Our nearly 23,000 employees work across over 30 countries to serve clients in more than 100. Today, we’re better prepared than ever to advise and deliver on each of our clients’ unique tactical and strategic objectives. The goal for us is to keep our clients focused on the long-term, and help them achieve any near-term allocation or liquidity changes they need within the BlackRock platform.
“Uncertainty and anxiety about the future of markets and the economy are dominating client conversations. We've seen periods like this before when there were large, structural shifts in policy and markets – like the financial crisis, COVID, and surging inflation in 2022. We always stayed connected with clients, and some of BlackRock’s biggest leaps in growth followed.
“We’ve intentionally shaped our platform to serve clients in all market environments, building a premier global public-private markets investment and technology firm. We have leading franchises in categories that we expect to benefit from capital flows and investment even against volatile public markets. These include our newly enriched private markets platform, ETFs, and Aladdin risk management and technology.
“Our consistent growth is a reflection of the role BlackRock plays as a convener, providing both stability and optimism for clients. In markets like these, clients put an even greater premium on the differentiated value proposition that BlackRock offers. We look forward to unlocking opportunities for clients, and delivering value for our shareholders.”
FINANCIAL RESULTS
NET FLOW HIGHLIGHTS(1)(2)
Q1
Q1
Q1
(in millions, except per share data)
2025
2024
(in billions)
2025
LTM(3)
AUM
$
11,583,928
$
10,472,500
Long-term net flows:
$
83
$
496
% change
11
%
Average AUM
$
11,688,880
$
10,177,170
By region:
% change
15
%
Americas
$
51
$
309
Total net flows
$
84,171
$
57,190
EMEA
36
166
APAC
(4
)
20
GAAP basis:
Revenue
$
5,276
$
4,728
By client type:
% change
12
%
Operating income
$
1,698
$
1,693
Retail:
$
13
$
30
% change
0.3
%
US
8
19
Operating margin
32.2
%
35.8
%
International
6
11
Net income(1)
$
1,510
$
1,573
% change
(4
)%
ETFs:
$
107
$
431
Diluted EPS
$
9.64
$
10.48
Active
9
21
% change
(8
)%
Core equity
46
184
Weighted-average
Strategic
35
124
diluted shares
156.6
150.1
Digital assets
3
30
% change
4
%
Other precision
14
72
As Adjusted(2):
Institutional:
$
(37
)
$
35
Operating income
$
2,032
$
1,775
Active
8
58
% change
14
%
Index
(46
)
(23
)
Operating margin
43.2
%
42.2
%
Net income(1)
$
1,770
$
1,473
Cash management net flows
$
1
$
173
% change
20
%
Diluted EPS
$
11.30
$
9.81
% change
15
%
Total net flows
$
84
$
668
_________________________
_________________________
(1) Net income represents net income attributable to BlackRock, Inc.
(2) See pages 11 through 13 for the reconciliation to accounting principles generally accepted in
the United States ("GAAP") and notes (1) through (3) to the condensed consolidated
statements of income and supplemental information for more information on as adjusted
items.
(1) Beginning in the first quarter of 2025, BlackRock updated the presentation of net flows to
separately disclose realizations, which represent return of capital/return on investments.
Realizations have not been recast for 2024.
(2) Totals may not add due to rounding.
(3) Amounts represent last twelve months net flows from April 1, 2024 to March 31, 2025.
1
BUSINESS RESULTS(1)
Q1 2025
Q1 2025
Base fees(3)
Base fees(3)
March 31, 2025
and securities
Q1 2025
March 31, 2025
and securities
AUM
lending revenue
(in millions), (unaudited)
Net flows(2)
AUM
lending revenue
% of Total
% of Total
RESULTS BY PRODUCT TYPE
Equity
$
19,311
$
6,204,549
$
2,075
53
%
47
%
Fixed income
37,738
3,006,670
935
26
%
21
%
Multi-asset
8,546
1,002,681
321
9
%
7
%
Alternatives:
Private markets
7,144
212,354
535
2
%
12
%
Liquid alternatives
2,156
79,356
150
1
%
4
%
Total alternatives
9,300
291,710
685
3
%
16
%
Digital assets
3,355
50,329
34
0
%
1
%
Currency and commodities(4)
5,103
97,355
58
1
%
1
%
Long-term
83,353
10,653,294
4,108
92
%
93
%
Cash management
818
930,634
293
8
%
7
%
Total
$
84,171
$
11,583,928
$
4,401
100
%
100
%
RESULTS BY CLIENT TYPE
Retail
$
13,118
$
1,022,880
$
1,061
9
%
24
%
ETFs
107,410
4,302,761
1,793
37
%
41
%
Institutional:
Active
8,372
2,155,178
1,016
19
%
23
%
Index
(45,547
)
3,172,475
238
27
%
5
%
Total institutional
(37,175
)
5,327,653
1,254
46
%
28
%
Long-term
83,353
10,653,294
4,108
92
%
93
%
Cash management
818
930,634
293
8
%
7
%
Total
$
84,171
$
11,583,928
$
4,401
100
%
100
%
RESULTS BY INVESTMENT STYLE
Active
$
10,308
$
2,889,141
$
2,008
25
%
46
%
ETFs
107,410
4,302,761
1,793
37
%
41
%
Non-ETF index
(34,365
)
3,461,392
307
30
%
6
%
Long-term
83,353
10,653,294
4,108
92
%
93
%
Cash management
818
930,634
293
8
%
7
%
Total
$
84,171
$
11,583,928
$
4,401
100
%
100
%
(1)
Beginning in the first quarter of 2025, BlackRock updated the presentation of the Company's AUM and base fees line items.
(2)
Beginning in the first quarter of 2025, BlackRock updated the presentation of net flows to separately disclose realizations, which represent return of capital/return on investments.
(3)
Base fees include investment advisory and administration fees.
(4)
Amounts include commodity exchange-traded funds ("ETFs") and exchange-traded products ("ETPs").
INVESTMENT PERFORMANCE AT March 31, 2025(1)
One-year period
Three-year period
Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable
71%
80%
87%
Tax-exempt
62%
55%
77%
Index AUM within or above applicable tolerance
99%
100%
100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental
29%
46%
53%
Systematic
71%
92%
92%
Index AUM within or above applicable tolerance
96%
99%
100%
(1)
Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 15 for performance disclosure detail.
TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION
Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Friday, April 11, 2025 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (786) 460-7166, or from outside the United States, (877) 502-9276, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 1750946). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.
The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Friday, April 11, 2025. To access the replay of the webcast, please visit the investor relations section of www.blackrock.com.
ABOUT BLACKROCK
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
Three Months
Three Months Ended
Ended
March 31,
December 31,
2025
2024
Change
2024
Change
Revenue
Investment advisory, administration fees and
securities lending revenue:
Investment advisory and administration fees
$
4,244
$
3,627
$
617
$
4,256
$
(12
)
Securities lending revenue
157
151
6
161
(4
)
Total investment advisory, administration fees
and securities lending revenue
4,401
3,778
623
4,417
(16
)
Investment advisory performance fees
60
204
(144
)
451
(391
)
Technology services and subscription revenue
436
377
59
428
8
Distribution fees
321
310
11
322
(1
)
Advisory and other revenue
58
59
(1
)
59
(1
)
Total revenue
5,276
4,728
548
5,677
(401
)
Expense
Employee compensation and benefits
1,741
1,580
161
1,885
(144
)
Sales, asset and account expense:
Distribution and servicing costs
570
518
52
565
5
Direct fund expense
392
338
54
389
3
Sub-advisory and other
47
32
15
42
5
Total sales, asset and account expense
1,009
888
121
996
13
General and administration expense
711
529
182
596
115
Amortization of intangible assets
117
38
79
125
(8
)
Total expense
3,578
3,035
543
3,602
(24
)
Operating income
1,698
1,693
5
2,075
(377
)
Nonoperating income (expense)
Net gain (loss) on investments
58
171
(113
)
(18
)
76
Interest and dividend income
173
141
32
212
(39
)
Interest expense
(166
)
(92
)
(74
)
(166
)
-
Total nonoperating income (expense)
65
220
(155
)
28
37
Income before income taxes
1,763
1,913
(150
)
2,103
(340
)
Income tax expense
248
290
(42
)
442
(194
)
Net income
1,515
1,623
(108
)
1,661
(146
)
Less:
Net income (loss) attributable to noncontrolling
interests
5
50
(45
)
(9
)
14
Net income attributable to BlackRock, Inc.
$
1,510
$
1,573
$
(63
)
$
1,670
$
(160
)
Weighted-average common shares outstanding
Basic
155.0
148.7
6.3
155.0
0.1
Diluted
156.6
150.1
6.5
157.0
(0.4
)
Earnings per share attributable to BlackRock, Inc.
common stockholders
Basic
$
9.74
$
10.58
$
(0.84
)
$
10.78
$
(1.04
)
Diluted
$
9.64
$
10.48
$
(0.84
)
$
10.63
$
(0.99
)
Cash dividends declared and paid per share
$
5.21
$
5.10
$
0.11
$
5.10
$
0.11
Supplemental information:
AUM (end of period)
$
11,583,928
$
10,472,500
$
1,111,428
$
11,551,251
$
32,677
Shares outstanding (end of period)
155.0
148.8
6.3
154.9
0.1
GAAP:
Operating margin
32.2
%
35.8
%
(360
)
bps
36.6
%
(440
)
bps
Effective tax rate
14.1
%
15.6
%
(150
)
bps
20.9
%
(680
)
bps
As adjusted:
Operating income (1)
$
2,032
$
1,775
$
257
$
2,326
$
(294
)
Operating margin (1)
43.2
%
42.2
%
100
bps
45.5
%
(230
)
bps
Nonoperating income (expense), less net income
(loss) attributable to noncontrolling
interests (2)
$
75
$
139
$
(64
)
$
39
$
36
Net income attributable to BlackRock, Inc. (3)
$
1,770
$
1,473
$
297
$
1,874
$
(104
)
Diluted earnings attributable to BlackRock, Inc.
common stockholders per share (3)
$
11.30
$
9.81
$
1.49
$
11.93
$
(0.63
)
Effective tax rate
16.0
%
23.0
%
(700
)
bps
20.8
%
(480
)
bps
See pages 11 through 13 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items.
3
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Product Type(1)
Net
December 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
change
impact(3)
2025
AUM(4)
Equity
$
6,310,191
$
19,311
$
-
$
(169,248
)
$
44,295
$
6,204,549
$
6,365,290
Fixed income
2,905,669
37,738
(718
)
33,120
30,861
3,006,670
2,964,967
Multi-asset
992,921
8,546
-
(6,771
)
7,985
1,002,681
1,007,167
Alternatives:
Private markets
211,974
7,144
(7,001
)
(1,412
)
1,649
212,354
210,104
Liquid alternatives
76,390
2,156
-
598
212
79,356
78,343
Alternatives subtotal
288,364
9,300
(7,001
)
(814
)
1,861
291,710
288,447
Digital assets
55,306
3,355
-
(8,332
)
-
50,329
55,082
Currency and commodities(5)
78,137
5,103
-
13,963
152
97,355
86,790
Long-term
10,630,588
83,353
(7,719
)
(138,082
)
85,154
10,653,294
10,767,743
Cash management
920,663
818
-
2,510
6,643
930,634
921,137
Total
$
11,551,251
$
84,171
$
(7,719
)
$
(135,572
)
$
91,797
$
11,583,928
$
11,688,880
Current Quarter Component Changes by Client Type and Product Type (Long-Term)(1)
Net
December 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
change
impact(3)
2025
AUM(4)
Retail:
Equity
$
505,118
$
7,345
$
-
$
(14,198
)
$
4,413
$
502,678
$
513,999
Fixed income
318,641
791
-
1,902
2,174
323,508
322,878
Multi-asset
150,978
2,850
-
(774
)
366
153,420
153,428
Private markets
15,749
327
(179
)
(70
)
190
16,017
15,849
Liquid alternatives
24,735
1,805
-
622
95
27,257
26,003
Retail subtotal
1,015,221
13,118
(179
)
(12,518
)
7,238
1,022,880
1,032,157
ETFs:
Equity
3,106,398
64,998
-
(68,798
)
8,840
3,111,438
3,156,208
Fixed income
985,652
33,773
-
14,980
4,710
1,039,115
1,016,174
Multi-asset
10,734
(166
)
-
30
5
10,603
10,628
Digital assets
55,306
3,355
-
(8,332
)
-
50,329
55,082
Commodities
72,285
5,450
-
13,500
41
91,276
80,818
ETFs subtotal
4,230,375
107,410
-
(48,620
)
13,596
4,302,761
4,318,910
Institutional:
Active:
Equity
218,848
1,894
-
(6,142
)
2,790
217,390
222,234
Fixed income
840,328
(6,556
)
(718
)
15,199
5,620
853,873
849,367
Multi-asset
828,039
5,866
-
(6,020
)
7,594
835,479
839,935
Private markets
196,225
6,817
(6,822
)
(1,342
)
1,459
196,337
194,255
Liquid alternatives
51,655
351
-
(24
)
117
52,099
52,340
Active subtotal
2,135,095
8,372
(7,540
)
1,671
17,580
2,155,178
2,158,131
Index
3,249,897
(45,547
)
-
(78,615
)
46,740
3,172,475
3,258,545
Institutional subtotal
5,384,992
(37,175
)
(7,540
)
(76,944
)
64,320
5,327,653
5,416,676
Long-term
$
10,630,588
$
83,353
$
(7,719
)
$
(138,082
)
$
85,154
$
10,653,294
$
10,767,743
(1)
Beginning in the first quarter of 2025, BlackRock updated the presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation.
(2)
Beginning in the first quarter of 2025, BlackRock updated the presentation of net flows to separately disclose realizations, which represent return of capital/return on investments.
(3)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(4)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(5)
Amounts include commodity ETFs and ETPs.
4
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)(1)
Net
December 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
change
impact(3)
2025
AUM(4)
Active:
Equity
$
467,163
$
(378
)
$
-
$
(12,918
)
$
4,789
$
458,656
$
472,800
Fixed income
1,133,874
(7,331
)
(718
)
16,943
7,123
1,149,891
1,146,480
Multi-asset
979,001
8,717
-
(6,794
)
7,960
988,884
993,347
Private markets
211,974
7,144
(7,001
)
(1,412
)
1,649
212,354
210,104
Liquid alternatives
76,390
2,156
-
598
212
79,356
78,343
Active subtotal
2,868,402
10,308
(7,719
)
(3,583
)
21,733
2,889,141
2,901,074
ETFs:
Equity
3,106,398
64,998
-
(68,798
)
8,840
3,111,438
3,156,208
Fixed income
985,652
33,773
-
14,980
4,710
1,039,115
1,016,174
Multi-asset
10,734
(166
)
-
30
5
10,603
10,628
Digital assets
55,306
3,355
-
(8,332
)
-
50,329
55,082
Commodities
72,285
5,450
-
13,500
41
91,276
80,818
ETFs subtotal
4,230,375
107,410
-
(48,620
)
13,596
4,302,761
4,318,910
Non-ETF index
3,531,811
(34,365
)
-
(85,879
)
49,825
3,461,392
3,547,759
Long-term
$
10,630,588
$
83,353
$
(7,719
)
$
(138,082
)
$
85,154
$
10,653,294
$
10,767,743
Current Quarter Component Changes by Private Markets Product Type (Long-Term)
Net
December 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
change
impact(3)
2025
AUM(4)
Private markets:
Infrastructure
$
109,606
$
4,505
$
(5,866
)
$
(470
)
$
596
$
108,371
$
107,364
Private equity
36,327
924
(171
)
(621
)
103
36,562
36,264
Private credit
32,425
1,316
(461
)
(134
)
540
33,686
32,921
Real estate
26,147
37
(285
)
(169
)
346
26,076
26,037
Multi-alternatives
7,469
362
(218
)
(18
)
64
7,659
7,518
Total private markets
$
211,974
$
7,144
$
(7,001
)
$
(1,412
)
$
1,649
$
212,354
$
210,104
(1)
Beginning in the first quarter of 2025, BlackRock updated the presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation.
(2)
Beginning in the first quarter of 2025, BlackRock updated the presentation of net flows to separately disclose realizations, which represent return of capital/return on investments.
(3)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(4)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
5
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Product Type(1)
Net
March 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Equity
$
5,717,852
$
226,458
$
-
$
4,074
$
255,100
$
1,065
$
6,204,549
$
6,104,088
Fixed income
2,805,745
159,671
(718
)
-
43,927
(1,955
)
3,006,670
2,911,610
Multi-asset
906,597
55,127
-
-
45,357
(4,400
)
1,002,681
966,593
Alternatives:
Private markets
137,254
15,388
(7,001
)
69,875
(3,085
)
(77
)
212,354
171,460
Liquid alternatives
75,365
1,461
-
-
2,705
(175
)
79,356
76,377
Alternatives subtotal
212,619
16,849
(7,001
)
69,875
(380
)
(252
)
291,710
247,837
Digital assets
17,521
30,202
-
-
2,606
-
50,329
34,192
Currency and
commodities(6)
66,384
7,252
-
-
23,750
(31
)
97,355
78,073
Long-term
9,726,718
495,559
(7,719
)
73,949
370,360
(5,573
)
10,653,294
10,342,393
Cash management
745,782
172,771
-
-
10,638
1,443
930,634
843,779
Total
$
10,472,500
$
668,330
$
(7,719
)
$
73,949
$
380,998
$
(4,130
)
$
11,583,928
$
11,186,172
Year-over-Year Component Changes by Client Type and Product Type (Long-Term)(1)
Net
March 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Retail:
Equity
$
471,438
$
18,539
$
-
$
4,074
$
6,807
$
1,820
$
502,678
$
502,153
Fixed income
315,004
9,595
-
-
3,537
(4,628
)
323,508
319,194
Multi-asset
146,182
(321
)
-
-
7,649
(90
)
153,420
150,369
Private markets
16,285
318
(179
)
-
(443
)
36
16,017
15,970
Liquid alternatives
24,405
2,247
-
-
567
38
27,257
24,836
Retail subtotal
973,314
30,378
(179
)
4,074
18,117
(2,824
)
1,022,880
1,012,522
ETFs:
Equity
2,752,776
264,600
-
-
99,346
(5,284
)
3,111,438
2,984,093
Fixed income
904,755
127,906
-
-
7,404
(950
)
1,039,115
977,390
Multi-asset
9,043
1,304
-
-
455
(199
)
10,603
9,855
Digital assets
17,521
30,202
-
-
2,606
-
50,329
34,192
Commodities
61,547
6,589
-
-
23,201
(61
)
91,276
72,769
ETFs subtotal
3,745,642
430,601
-
-
133,012
(6,494
)
4,302,761
4,078,299
Institutional:
Active:
Equity
203,042
3,970
-
-
9,810
568
217,390
215,834
Fixed income
836,798
(14,694
)
(718
)
-
33,163
(676
)
853,873
846,590
Multi-asset
748,017
54,465
-
-
37,098
(4,101
)
835,479
802,977
Private markets
120,969
15,070
(6,822
)
69,875
(2,642
)
(113
)
196,337
155,490
Liquid alternatives
50,960
(786
)
-
-
2,138
(213
)
52,099
51,541
Active subtotal
1,959,786
58,025
(7,540
)
69,875
79,567
(4,535
)
2,155,178
2,072,432
Index
3,047,976
(23,445
)
-
-
139,664
8,280
3,172,475
3,179,140
Institutional subtotal
5,007,762
34,580
(7,540
)
69,875
219,231
3,745
5,327,653
5,251,572
Long-term
$
9,726,718
$
495,559
$
(7,719
)
$
73,949
$
370,360
$
(5,573
)
$
10,653,294
$
10,342,393
(1)
Beginning in the first quarter of 2025, BlackRock updated the presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation.
(2)
Beginning in the first quarter of 2025, BlackRock updated the presentation of net flows to separately disclose realizations, which represent return of capital/return on investments. Realizations have not been recast for 2024.
(3)
Amounts include AUM attributable to the acquisition of Global Infrastructure Management, LLC ("GIP") in October 2024 (the "GIP Transaction") and the acquisition of SpiderRock Advisors, LLC in May 2024 (the "SpiderRock Transaction").
(4)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(5)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
(6)
Amounts include commodity ETFs and ETPs.
6
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)(1)
Net
March 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Active:
Equity
$
455,665
$
(6,125
)
$
-
$
4,074
$
3,961
$
1,081
$
458,656
$
471,631
Fixed income
1,127,206
(7,340
)
(718
)
-
36,426
(5,683
)
1,149,891
1,140,441
Multi-asset
894,186
54,138
-
-
44,750
(4,190
)
988,884
953,331
Private markets
137,254
15,388
(7,001
)
69,875
(3,085
)
(77
)
212,354
171,460
Liquid alternatives
75,365
1,461
-
-
2,705
(175
)
79,356
76,377
Active subtotal
2,689,676
57,522
(7,719
)
73,949
84,757
(9,044
)
2,889,141
2,813,240
ETFs:
Equity
2,752,776
264,600
-
-
99,346
(5,284
)
3,111,438
2,984,093
Fixed income
904,755
127,906
-
-
7,404
(950
)
1,039,115
977,390
Multi-asset
9,043
1,304
-
-
455
(199
)
10,603
9,855
Digital assets
17,521
30,202
-
-
2,606
-
50,329
34,192
Commodities
61,547
6,589
-
-
23,201
(61
)
91,276
72,769
ETFs subtotal
3,745,642
430,601
-
-
133,012
(6,494
)
4,302,761
4,078,299
Non-ETF index
3,291,400
7,436
-
-
152,591
9,965
3,461,392
3,450,854
Long-term
$
9,726,718
$
495,559
$
(7,719
)
$
73,949
$
370,360
$
(5,573
)
$
10,653,294
$
10,342,393
Year-over-Year Component Changes by Private Markets Product Type (Long-Term)
Net
March 31,
inflows
Market
FX
March 31,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Private markets:
Infrastructure
$
37,362
$
8,397
$
(5,866
)
$
69,875
$
(1,156
)
$
(241
)
$
108,371
$
70,068
Private equity
34,649
2,447
(171
)
-
(369
)
6
36,562
35,786
Private credit
31,061
3,872
(461
)
-
(852
)
66
33,686
31,828
Real estate
26,767
249
(285
)
-
(715
)
60
26,076
26,318
Multi-alternatives
7,415
423
(218
)
-
7
32
7,659
7,460
Total private markets
$
137,254
$
15,388
$
(7,001
)
$
69,875
$
(3,085
)
$
(77
)
$
212,354
$
171,460
(1)
Beginning in the first quarter of 2025, BlackRock updated the presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation.
(2)
Beginning in the first quarter of 2025, BlackRock updated the presentation of net flows to separately disclose realizations, which represent return of capital/return on investments. Realizations have not been recast for 2024.
(3)
Amounts include AUM attributable to the GIP Transaction and the SpiderRock Transaction.
(4)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(5)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.
7
SUMMARY OF REVENUE
Three Months
Three Months
Ended
Ended
March 31,
December 31,
(in millions), (unaudited)
2025
2024
Change
2024
Change
Revenue
Investment advisory, administration fees and
securities lending revenue(1):
Equity:
Active
$
518
$
516
$
2
$
558
$
(40
)
ETFs
1,349
1,190
159
1,375
(26
)
Equity subtotal
1,867
1,706
161
1,933
(66
)
Fixed income:
Active
492
484
8
494
(2
)
ETFs
352
327
25
360
(8
)
Fixed income subtotal
844
811
33
854
(10
)
Active multi-asset
313
305
8
319
(6
)
Alternatives:
Private markets
535
240
295
480
55
Liquid alternatives
150
138
12
146
4
Alternatives subtotal
685
378
307
626
59
Non-ETF index
307
288
19
312
(5
)
Digital assets, commodities and multi-asset ETFs(2)
92
45
47
80
12
Long-term
4,108
3,533
575
4,124
(16
)
Cash management
293
245
48
293
-
Total investment advisory, administration
fees and securities lending revenue
4,401
3,778
623
4,417
(16
)
Investment advisory performance fees:
Equity
10
8
2
112
(102
)
Fixed income
12
4
8
22
(10
)
Multi-asset
4
2
2
10
(6
)
Alternatives:
Private markets
24
125
(101
)
108
(84
)
Liquid alternatives
10
65
(55
)
199
(189
)
Alternatives subtotal
34
190
(156
)
307
(273
)
Total investment advisory performance fees
60
204
(144
)
451
(391
)
Technology services and subscription revenue
436
377
59
428
8
Distribution fees
321
310
11
322
(1
)
Advisory and other revenue:
Advisory
14
13
1
14
-
Other
44
46
(2
)
45
(1
)
Total advisory and other revenue
58
59
(1
)
59
(1
)
Total revenue
$
5,276
$
4,728
$
548
$
5,677
$
(401
)
(1)
Beginning in the first quarter of 2025, BlackRock reclassified the presentation of the Company's investment advisory, administration fees and securities lending revenue line items to align with the updated presentation of the Company's AUM line items. Such line items have been reclassified for 2024 to conform to this new presentation. See page 11 of the Earnings Release Supplement for the updated presentations of the 2024 and 2023 investment advisory, administration fees and securities lending revenue line items.
(2)
Amounts include commodity ETFs and ETPs.
Highlights
•
Investment advisory, administration fees and securities lending revenue increased $623 million from the first quarter of 2024, primarily driven by organic base fee growth, the impact of market beta on average AUM and approximately $285 million of fees related to the GIP Transaction, partially offset by the effect of one fewer day in the current quarter. Securities lending revenue of $157 million increased from $151 million in the first quarter of 2024.
Investment advisory, administration fees and securities lending revenue decreased $16 million from the fourth quarter of 2024, primarily driven by the effect of two fewer days in the current quarter, partially offset by organic base fee growth. Securities lending revenue of $157 million decreased from $161 million in the fourth quarter of 2024.
•
Performance fees decreased $144 million from the first quarter of 2024, primarily reflecting lower revenue from private markets and liquid alternative products.
Performance fees decreased $391 million from the fourth quarter of 2024, primarily reflecting a seasonally higher number of products with performance measurement periods that end in the fourth quarter.
•
Technology services and subscription revenue increased $59 million from the first quarter of 2024 and $8 million from the fourth quarter of 2024, reflecting the sustained demand for Aladdin technology offerings and the closing of the acquisition of Preqin Holding Limited ("Preqin") in March 2025 (the "Preqin Transaction"), which added approximately $20 million to first quarter revenue. Technology services and subscription annual contract value (“ACV”)(1) increased 30% from the first quarter of 2024 including ACV acquired with the Preqin Transaction, and increased 14% excluding ACV acquired with the Preqin Transaction.
(1)
See note (4) to the condensed consolidated statements of income and supplemental information on page 13 for more information on ACV.
8
SUMMARY OF OPERATING EXPENSE
Three Months
Three Months
Ended
Ended
March 31,
December 31,
(in millions), (unaudited)
2025
2024
Change
2024
Change
Operating expense
Employee compensation and benefits
$
1,741
$
1,580
$
161
$
1,885
$
(144
)
Sales, asset and account expense:
Distribution and servicing costs
570
518
52
565
5
Direct fund expense
392
338
54
389
3
Sub-advisory and other
47
32
15
42
5
Total sales, asset and account expense
1,009
888
121
996
13
General and administration expense:
Marketing and promotional
97
82
15
92
5
Occupancy and office related
114
101
13
113
1
Portfolio services
64
66
(2
)
68
(4
)
Technology
189
160
29
182
7
Professional services
73
58
15
88
(15
)
Communications
10
10
-
10
-
Foreign exchange remeasurement
(8
)
2
(10
)
(7
)
(1
)
Contingent consideration fair value adjustments
96
(7
)
103
(28
)
124
Other general and administration
76
57
19
78
(2
)
Total general and administration expense
711
529
182
596
115
Amortization of intangible assets
117
38
79
125
(8
)
Total operating expense
$
3,578
$
3,035
$
543
$
3,602
$
(24
)
Highlights
•
Employee compensation and benefits expense increased $161 million from the first quarter of 2024, primarily reflecting the impact of the GIP Transaction, including nonrecurring retention-related deferred compensation expense(1), partially offset by the impact of lower performance fees.
Employee compensation and benefits expense decreased $144 million from the fourth quarter of 2024, primarily reflecting lower incentive compensation as a result of lower performance fees, partially offset by higher seasonal payroll taxes.
•
Sales, asset and account expense increased $121 million from the first quarter of 2024, driven by higher direct fund expense and distribution and servicing costs, primarily reflecting higher average AUM.
•
General and administration expense increased $182 million from the first quarter of 2024, primarily associated with acquisition-related costs(1), including a contingent consideration fair value adjustment in connection with the GIP Transaction and higher transaction costs recorded in professional services expense. The general and administration expense increase from the first quarter of 2024 also included higher technology expense, marketing and promotional expense, including the impact from higher travel and entertainment expense, and higher occupancy and office related expense.
General and administration expense increased $115 million from the fourth quarter of 2024, primarily associated with a contingent consideration fair value adjustment(1) in connection with the GIP Transaction, partially offset by lower acquisition-related transaction costs(1) recorded in professional services expense.
•
Amortization of intangible assets(1) increased $79 million from the first quarter of 2024, primarily reflecting amortization of intangible assets acquired in the GIP and Preqin transactions.
(1)
These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustments for acquisition-related costs. See pages 11 through 13 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.
9
SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests
Three Months
Three Months
Ended
Ended
March 31,
December 31,
(in millions), (unaudited)
2025
2024
Change
2024
Change
Nonoperating income (expense), GAAP basis
$
65
$
220
$
(155
)
$
28
$
37
Less: Net income (loss) attributable to
noncontrolling interests ("NCI")
5
50
(45
)
(9
)
14
Nonoperating income (expense), net of NCI
60
170
(110
)
37
23
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
(15
)
31
(46
)
(2
)
(13
)
Nonoperating income (expense), net of NCI, as
adjusted(2)
$
75
$
139
$
(64
)
$
39
$
36
Three Months
Three Months
Ended
Ended
March 31,
December 31,
(in millions), (unaudited)
2025
2024
Change
2024
Change
Net gain (loss) on investments, net of NCI
Private equity
$
48
$
8
$
40
$
(42
)
$
90
Real assets
(2
)
(3
)
1
(5
)
3
Other alternatives(3)
9
14
(5
)
8
1
Other investments(4)
(10
)
31
(41
)
42
(52
)
Hedge gain (loss) on deferred cash
compensation plans(1)
(15
)
31
(46
)
(2
)
(13
)
Subtotal
30
81
(51
)
1
29
Other income/gain (expense/loss)(5)
23
40
(17
)
(10
)
33
Total net gain (loss) on investments, net of NCI
53
121
(68
)
(9
)
62
Interest and dividend income
173
141
32
212
(39
)
Interest expense
(166
)
(92
)
(74
)
(166
)
-
Net interest income (expense)
7
49
(42
)
46
(39
)
Nonoperating income (expense), net of NCI
60
170
(110
)
37
23
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
(15
)
31
(46
)
(2
)
(13
)
Nonoperating income (expense), net of NCI, as
adjusted(2)
$
75
$
139
$
(64
)
$
39
$
36
(1)
Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans.
(2)
Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP, see notes to the condensed consolidated statements of income and supplemental information on pages 11 through 13.
(3)
Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions.
(4)
Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges.
(5)
The amount for the three months ended March 31, 2025, includes nonoperating noncash pre-tax gains in connection with the Company's strategic minority investment in iCapital Network, Inc. of approximately $36 million. Additional amounts include earnings (losses) from certain equity method minority investments and noncash pre-tax gains (losses) related to the revaluation of certain other minority investments.
summary of INCOME TAX EXPENSE
Three Months
Three Months
Ended
Ended
March 31,
December 31,
(in millions), (unaudited)
2025
2024
Change
2024
Change
Income tax expense
$
248
$
290
$
(42
)
$
442
$
(194
)
Effective tax rate
14.1
%
15.6
%
(150) bps
20.9
%
(680) bps
Highlights
•
First quarter 2025 and fourth quarter 2024 income tax expense includes $149 million and $63 million of discrete tax benefits, respectively, related to the realization of capital losses from changes in the Company's organizational structure. In addition, first quarter 2025 income tax expense includes a $46 million discrete tax benefit related to stock-based compensation awards that vested in the first quarter.
•
First quarter 2024 income tax expense included a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. In addition, first quarter 2024 income tax expense included $28 million of discrete tax benefits, including a benefit related to stock-based compensation awards that vested in the first quarter.
10
RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
Three Months Ended
March 31,
December 31,
(in millions), (unaudited)
2025
2024
2024
Operating income, GAAP basis
$
1,698
$
1,693
$
2,075
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation)
on deferred cash compensation plans (a)
(3
)
27
-
Amortization of intangible assets (b)
117
38
125
Acquisition-related compensation costs (b)
85
2
116
Acquisition-related transaction costs (b)(1)
39
22
38
Contingent consideration fair value adjustments (b)
96
(7
)
(28
)
Operating income, as adjusted (1)
$
2,032
$
1,775
$
2,326
Revenue, GAAP basis
$
5,276
$
4,728
$
5,677
Non-GAAP adjustments:
Distribution fees
(321
)
(310
)
(322
)
Investment advisory fees
(249
)
(208
)
(243
)
Revenue used for operating margin measurement
$
4,706
$
4,210
$
5,112
Operating margin, GAAP basis
32.2
%
35.8
%
36.6
%
Operating margin, as adjusted (1)
43.2
%
42.2
%
45.5
%
(1)
Amounts included within general and administration expense.
See note (1) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items.
RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED
Three Months Ended
March 31,
December 31,
(in millions), (unaudited)
2025
2024
2024
Nonoperating income (expense), GAAP basis
$
65
$
220
$
28
Less: Net income (loss) attributable to NCI
5
50
(9
)
Nonoperating income (expense), net of NCI
60
170
37
Less: Hedge gain (loss) on deferred cash compensation
plans (a)
(15
)
31
(2
)
Nonoperating income (expense), less net income (loss)
attributable to NCI, as adjusted (2)
$
75
$
139
$
39
See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 12 and 13 for more information on as adjusted items.
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
Three Months Ended
March 31,
December 31,
(in millions, except per share data), (unaudited)
2025
2024
2024
Net income attributable to BlackRock, Inc., GAAP basis
$
1,510
$
1,573
$
1,670
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)
9
(3
)
2
Amortization of intangible assets (b)
87
28
94
Acquisition-related compensation costs (b)
63
2
87
Acquisition-related transaction costs (b)
29
15
28
Contingent consideration fair value adjustments (b)
72
(5
)
(21
)
Income tax matters
-
(137
)
14
Net income attributable to BlackRock, Inc., as adjusted (3)
$
1,770
$
1,473
$
1,874
Diluted weighted-average common shares outstanding
156.6
150.1
157.0
Diluted earnings per common share, GAAP basis
$
9.64
$
10.48
$
10.63
Diluted earnings per common share, as adjusted (3)
$
11.30
$
9.81
$
11.93
(1)
Non-GAAP adjustments, excluding income tax matters, are net of tax.
See note (3) to the condensed consolidated statements of income and supplemental information on page 13 for more information on as adjusted items.
11
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)
BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented.
Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:
(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.
•
Operating income, as adjusted, includes the following non-GAAP expense adjustments:
(a)
Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income.
This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.
(b)
Acquisition-related costs. Acquisition-related costs include adjustments related to amortization of intangible assets, contingent consideration fair value adjustments incurred in connection with certain acquisitions and other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation and general and administration expense primarily related to professional services expense. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.
•
Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client.
The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.
12
(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.
(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.
For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. The amount for income tax matters in the first quarter of 2024 includes a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. In addition, the amount for fourth quarter of 2024 includes a net noncash expense of $14 million associated with the revaluation of deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. This discrete tax expense has been excluded from the as adjusted results as it does not have a cash flow impact as well as to ensure comparability among periods presented.
Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding.
(4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services and subscription’s ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services and subscription revenue over time, as it is linked to the net new business in technology and subscription services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date.
ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees.
13
FORWARD-LOOKING STATEMENTS
This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the planned acquisition of HPS Investment Partners (the “HPS Transaction”) and the acquisitions of GIP and Preqin (together with the HPS Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the HPS Transaction, including delays in the expected closing date of the HPS Transaction, the possibility that the HPS Transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions; the possibility that expected synergies and value creation from the Transactions will not be realized, or will not be realized within the expected time period; and the risk of impacts to business and operational relationships related to disruptions from the Transactions; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental and social-related matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, global trade tensions, tariffs, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock’s business, products, operations and clients; (21) the ability to attract, train and retain highly qualified professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers to fulfill their obligations to BlackRock; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.
BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release.
14
PERFORMANCE NOTES
Past performance is not indicative of future results. Except as specified, the performance information shown is as of March 31, 2025 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of February 28, 2025. The performance data does not include accounts terminated prior to March 31, 2025 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.
Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares funds globally using an index strategy. AUM information is based on AUM available as of March 31, 2025 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.
Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.
15
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 1 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | — | — |
| Buybacks share repurchase, buyback program | 2 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor