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 Second Quarter 2025 Diluted EPS of $10.19, or $12.05 as adjusted
New York, July 15, 2025 – BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and six months ended June 30, 2025.
$152 billion of year-to-date total net inflows led by a record first half for iShares® ETFs, alongside private markets and cash net inflows
$68 billion of quarterly total net inflows reflect impact of a single institutional client's $52 billion lower-fee index partial redemption
13% 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
4% decrease in year-over-year GAAP operating income primarily as a result of noncash acquisition-related expenses, which have been excluded from as-adjusted results
12% increase in year-over-year as adjusted operating income
2% increase in diluted EPS year-over-year (16% as adjusted) also reflects higher nonoperating income, partially offset by a higher effective tax rate and a higher diluted share count in the current quarter
$375 million of share repurchases in the current quarter
Closed acquisition of HPS Investment Partners on July 1st, adding $165 billion of client AUM and $118 billion of fee-paying AUM
Laurence D. Fink, Chairman and CEO:
“For many years, BlackRock has worked to serve the ambitions of each and every client around the world – from the largest asset owners to individuals just getting their start with investing. We design and deliver strategies and products that fit their unique long-term needs and aspirations. We deliver in the way that best serves each client, whether it’s through whole portfolio solutions, opportunistic investments, or customized models and SMAs.
“Our expanding client relationships are resonating in higher, more diversified organic base fee growth. We generated 6% organic base fee growth for the second quarter and the first half of 2025, and 7% over the last twelve months.
“BlackRock’s sustained growth has been powered by our whole portfolio approach, being the first firm to bring together active and index at scale. And now we’re building on our foundational platform to redefine the whole portfolio once again by integrating public and private markets across asset management and technology.
“iShares ETFs had a record first half in flows, and technology ACV growth reached a fresh high of 16%. This core strength, alongside client demand for private markets, digital assets, Aperio, and our tech and data-driven systematic strategies, propelled another consecutive quarter of above-target organic base fee growth and record AUM of $12.5 trillion.
“We surpassed the fundraising target for GIP’s fifth flagship, raising $25.2 billion and delivering the largest-ever client capital raise in a private infrastructure fund. We announced the development of a custom target date fund glidepath that strategically allocates across public and private markets. And we’re attracting a new and increasingly global generation of investors through things like our digital assets offerings and recently launched funds in India through our joint venture Jio BlackRock.
“Our comprehensive platform and the depth of our client relationships set us apart from traditional or private markets firms in the industry. Our recent closing of HPS will help us build even more with clients as we head into our seasonally strongest second half of the year. These are just the early days in our next phase of even stronger growth.”
FINANCIAL RESULTS
NET FLOW HIGHLIGHTS(1)
Q2
Q2
Q2
YTD
(in millions, except per share data)
2025
2024
(in billions)
2025
2025
AUM
$
12,527,590
$
10,645,721
Long-term net flows:
$
46
$
129
% change
18
%
Average AUM
$
11,974,829
$
10,457,851
By region:
% change
15
%
Americas
$
69
$
119
Total net flows
$
67,737
$
81,565
EMEA
29
66
APAC
(52
)
(56
)
GAAP basis:
Revenue
$
5,423
$
4,805
By client type:
% change
13
%
Operating income
$
1,731
$
1,800
Retail:
$
2
$
15
% change
(4
)%
US
(1
)
6
Operating margin
31.9
%
37.5
%
International
3
9
Net income(1)
$
1,593
$
1,495
% change
7
%
ETFs:
$
85
$
192
Diluted EPS
$
10.19
$
9.99
Active
11
20
% change
2
%
Core equity
-
45
Weighted-average
Digital assets
14
17
diluted shares
156.3
149.7
Fixed income
42
70
% change
4
%
Precision & other
18
40
As Adjusted(2):
Institutional:
$
(41
)
$
(78
)
Operating income
$
2,099
$
1,881
Active
7
15
% change
12
%
Index
(48
)
(93
)
Operating margin
43.3
%
44.1
%
Net income(1)
$
1,883
$
1,550
Cash management net flows
$
22
$
23
% change
21
%
Diluted EPS
$
12.05
$
10.36
% change
16
%
Total net flows
$
68
$
152
_________________________
_________________________
(1) Net income represents net income attributable to BlackRock, Inc.
(2) See pages 14 through 16 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) Totals may not add due to rounding.
1
BUSINESS RESULTS
Q2 2025
Q2 2025
Base fees(1)
Base fees(1)
June 30, 2025
and securities
Q2 2025
June 30, 2025
and securities
AUM
lending revenue
(in millions), (unaudited)
Net flows
AUM
lending revenue
% of Total
% of Total
RESULTS BY PRODUCT TYPE
Equity
$
28,781
$
6,905,438
$
2,123
54
%
48
%
Fixed income
(4,664
)
3,087,297
945
25
%
21
%
Multi-asset
(6,743
)
1,076,709
319
8
%
7
%
Alternatives:
Private markets
6,819
215,244
499
2
%
11
%
Liquid alternatives
2,948
86,670
157
1
%
4
%
Alternatives subtotal
9,767
301,914
656
3
%
15
%
Digital assets
14,139
79,551
40
1
%
1
%
Currency and commodities(2)
4,509
106,980
67
1
%
1
%
Long-term
45,789
11,557,889
4,150
92
%
93
%
Cash management
21,948
969,701
304
8
%
7
%
Total
$
67,737
$
12,527,590
$
4,454
100
%
100
%
RESULTS BY CLIENT TYPE
Retail
$
1,957
$
1,100,997
$
1,053
9
%
24
%
ETFs
84,860
4,748,768
1,875
38
%
42
%
Institutional:
Active
6,727
2,277,877
981
18
%
22
%
Index
(47,755
)
3,430,247
241
27
%
5
%
Institutional subtotal
(41,028
)
5,708,124
1,222
45
%
27
%
Long-term
45,789
11,557,889
4,150
92
%
93
%
Cash management
21,948
969,701
304
8
%
7
%
Total
$
67,737
$
12,527,590
$
4,454
100
%
100
%
RESULTS BY INVESTMENT STYLE
Active
$
1,413
$
3,051,873
$
1,962
24
%
44
%
ETFs
84,860
4,748,768
1,875
38
%
42
%
Non-ETF index
(40,484
)
3,757,248
313
30
%
7
%
Long-term
45,789
11,557,889
4,150
92
%
93
%
Cash management
21,948
969,701
304
8
%
7
%
Total
$
67,737
$
12,527,590
$
4,454
100
%
100
%
(1)
Base fees include investment advisory and administration fees.
(2)
Amounts include commodity exchange-traded funds ("ETFs") and exchange-traded products ("ETPs").
INVESTMENT PERFORMANCE AT June 30, 2025(1)
One-year period
Three-year period
Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable
73%
84%
83%
Tax-exempt
30%
61%
64%
Index AUM within or above applicable tolerance
96%
99%
100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental
40%
75%
54%
Systematic
47%
95%
93%
Index AUM within or above applicable tolerance
95%
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 18 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 Tuesday, July 15, 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, (800) 401-3551, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 1723819). 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 Tuesday, July 15, 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
June 30,
March 31,
2025
2024
Change
2025
Change
Revenue
Investment advisory, administration fees and
securities lending revenue:
Investment advisory and administration fees
$
4,283
$
3,721
$
562
$
4,244
$
39
Securities lending revenue
171
154
17
157
14
Total investment advisory, administration fees
and securities lending revenue
4,454
3,875
579
4,401
53
Investment advisory performance fees
94
164
(70
)
60
34
Technology services and subscription revenue
499
395
104
436
63
Distribution fees
320
318
2
321
(1
)
Advisory and other revenue
56
53
3
58
(2
)
Total revenue
5,423
4,805
618
5,276
147
Expense
Employee compensation and benefits
1,764
1,503
261
1,741
23
Sales, asset and account expense:
Distribution and servicing costs
576
539
37
570
6
Direct fund expense
441
358
83
392
49
Sub-advisory and other
46
32
14
47
(1
)
Total sales, asset and account expense
1,063
929
134
1,009
54
General and administration expense
689
534
155
711
(22
)
Restructuring charge
39
-
39
-
39
Amortization of intangible assets
137
39
98
117
20
Total expense
3,692
3,005
687
3,578
114
Operating income
1,731
1,800
(69
)
1,698
33
Nonoperating income (expense)
Net gain (loss) on investments
550
162
388
58
492
Interest and dividend income
144
178
(34
)
173
(29
)
Interest expense
(173
)
(126
)
(47
)
(166
)
(7
)
Total nonoperating income (expense)
521
214
307
65
456
Income before income taxes
2,252
2,014
238
1,763
489
Income tax expense
587
477
110
248
339
Net income
1,665
1,537
128
1,515
150
Less:
Net income (loss) attributable to noncontrolling
interests
72
42
30
5
67
Net income attributable to BlackRock, Inc.
$
1,593
$
1,495
$
98
$
1,510
$
83
Weighted-average common shares outstanding
Basic
154.9
148.4
6.4
155.0
(0.2
)
Diluted
156.3
149.7
6.6
156.6
(0.4
)
Earnings per share attributable to BlackRock, Inc.
common stockholders
Basic
$
10.29
$
10.07
$
0.22
$
9.74
$
0.55
Diluted
$
10.19
$
9.99
$
0.20
$
9.64
$
0.55
Cash dividends declared and paid per share
$
5.21
$
5.10
$
0.11
$
5.21
$
-
Supplemental information:
AUM (end of period)
$
12,527,590
$
10,645,721
$
1,881,869
$
11,583,928
$
943,662
Shares outstanding (end of period)
154.8
148.2
6.6
155.0
(0.3
)
GAAP:
Operating margin
31.9
%
37.5
%
(560
)
bps
32.2
%
(30
)
bps
Effective tax rate
26.9
%
24.2
%
270
bps
14.1
%
1,280
bps
As adjusted:
Operating income (1)
$
2,099
$
1,881
$
218
$
2,032
$
67
Operating margin (1)
43.3
%
44.1
%
(80
)
bps
43.2
%
10
bps
Nonoperating income (expense), less net income
(loss) attributable to noncontrolling
interests (2)
$
404
$
165
$
239
$
75
$
329
Net income attributable to BlackRock, Inc. (3)
$
1,883
$
1,550
$
333
$
1,770
$
113
Diluted earnings attributable to BlackRock, Inc.
common stockholders per share (3)
$
12.05
$
10.36
$
1.69
$
11.30
$
0.75
Effective tax rate
24.8
%
24.2
%
60
bps
16.0
%
880
bps
See pages 14 through 16 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION
(in millions, except per share data), (unaudited)
Six Months Ended
June 30,
2025
2024
Change
Revenue
Investment advisory, administration fees and
securities lending revenue:
Investment advisory and administration fees
$
8,527
$
7,348
$
1,179
Securities lending revenue
328
305
23
Total investment advisory, administration fees
and securities lending revenue
8,855
7,653
1,202
Investment advisory performance fees
154
368
(214
)
Technology services and subscription revenue
935
772
163
Distribution fees
641
628
13
Advisory and other revenue
114
112
2
Total revenue
10,699
9,533
1,166
Expense
Employee compensation and benefits
3,505
3,083
422
Sales, asset and account expense:
Distribution and servicing costs
1,146
1,057
89
Direct fund expense
833
696
137
Sub-advisory and other
93
64
29
Total sales, asset and account expense
2,072
1,817
255
General and administration expense
1,400
1,063
337
Restructuring charge
39
-
39
Amortization of intangible assets
254
77
177
Total expense
7,270
6,040
1,230
Operating income
3,429
3,493
(64
)
Nonoperating income (expense)
Net gain (loss) on investments
608
333
275
Interest and dividend income
317
319
(2
)
Interest expense
(339
)
(218
)
(121
)
Total nonoperating income (expense)
586
434
152
Income before income taxes
4,015
3,927
88
Income tax expense
835
767
68
Net income
3,180
3,160
20
Less:
Net income (loss) attributable to noncontrolling
interests
77
92
(15
)
Net income attributable to BlackRock, Inc.
$
3,103
$
3,068
$
35
Weighted-average common shares outstanding
Basic
155.0
148.6
6.4
Diluted
156.4
149.9
6.6
Earnings per share attributable to BlackRock, Inc.
common stockholders
Basic
$
20.03
$
20.65
$
(0.62
)
Diluted
$
19.83
$
20.47
$
(0.64
)
Cash dividends declared and paid per share
$
10.42
$
10.20
$
0.22
Supplemental information:
AUM (end of period)
$
12,527,590
$
10,645,721
$
1,881,869
Shares outstanding (end of period)
154.8
148.2
6.6
GAAP:
Operating margin
32.0
%
36.6
%
(460
)
bps
Effective tax rate
21.2
%
20.0
%
120
bps
As adjusted:
Operating income (1)
$
4,131
$
3,656
$
475
Operating margin (1)
43.2
%
43.1
%
10
bps
Nonoperating income (expense), less net income
(loss) attributable to noncontrolling
interests (2)
$
479
$
304
$
175
Net income attributable to BlackRock, Inc. (3)
$
3,653
$
3,023
$
630
Diluted earnings attributable to BlackRock, Inc.
common stockholders per share (3)
$
23.35
$
20.17
$
3.18
Effective tax rate
20.8
%
23.7
%
(290
)
bps
See pages 14 through 16 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.
4
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Product Type
Net
March 31,
inflows
Market
FX
June 30,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Equity
$
6,204,549
$
28,781
$
-
$
594,781
$
77,327
$
6,905,438
$
6,497,393
Fixed income
3,006,670
(4,664
)
(543
)
30,932
54,902
3,087,297
3,024,167
Multi-asset
1,002,681
(6,743
)
-
60,155
20,616
1,076,709
1,033,261
Alternatives:
Private markets
212,354
6,819
(6,474
)
(1,068
)
3,613
215,244
214,708
Liquid alternatives
79,356
2,948
(29
)
3,769
626
86,670
82,849
Alternatives subtotal
291,710
9,767
(6,503
)
2,701
4,239
301,914
297,557
Digital assets
50,329
14,139
-
15,077
6
79,551
65,710
Currency and commodities(4)
97,355
4,509
-
4,771
345
106,980
101,838
Long-term
10,653,294
45,789
(7,046
)
708,417
157,435
11,557,889
11,019,926
Cash management
930,634
21,948
-
3,031
14,088
969,701
954,903
Total
$
11,583,928
$
67,737
$
(7,046
)
$
711,448
$
171,523
$
12,527,590
$
11,974,829
Current Quarter Component Changes by Client Type and Product Type (Long-Term)
Net
March 31,
inflows
Market
FX
June 30,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Retail:
Equity
$
502,678
$
797
$
-
$
45,593
$
8,765
$
557,833
$
525,736
Fixed income
323,508
569
-
3,825
5,722
333,624
327,191
Multi-asset
153,420
(1,845
)
-
10,444
833
162,852
156,711
Private markets
16,017
767
(476
)
117
398
16,823
16,571
Liquid alternatives
27,257
1,669
-
760
179
29,865
28,556
Retail subtotal
1,022,880
1,957
(476
)
60,739
15,897
1,100,997
1,054,765
ETFs:
Equity
3,111,438
22,066
-
298,889
22,724
3,455,117
3,245,785
Fixed income
1,039,115
43,617
-
7,451
11,041
1,101,224
1,065,853
Multi-asset
10,603
475
-
633
215
11,926
11,210
Digital assets
50,329
14,139
-
15,077
6
79,551
65,710
Commodities
91,276
4,563
-
4,891
220
100,950
95,843
ETFs subtotal
4,302,761
84,860
-
326,941
34,206
4,748,768
4,484,401
Institutional:
Active:
Equity
217,390
(217
)
-
19,634
5,291
242,098
228,535
Fixed income
853,873
4,995
(543
)
12,286
11,321
881,932
866,013
Multi-asset
835,479
(5,382
)
-
48,983
19,541
898,621
862,105
Private markets
196,337
6,052
(5,998
)
(1,185
)
3,215
198,421
198,137
Liquid alternatives
52,099
1,279
(29
)
3,009
447
56,805
54,293
Active subtotal
2,155,178
6,727
(6,570
)
82,727
39,815
2,277,877
2,209,083
Index
3,172,475
(47,755
)
-
238,010
67,517
3,430,247
3,271,677
Institutional subtotal
5,327,653
(41,028
)
(6,570
)
320,737
107,332
5,708,124
5,480,760
Long-term
$
10,653,294
$
45,789
$
(7,046
)
$
708,417
$
157,435
$
11,557,889
$
11,019,926
(1)
Realizations represent return of capital/return on investments.
(2)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
(4)
Amounts include commodity ETFs and ETPs.
5
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Current Quarter Component Changes by Investment Style and Product Type (Long-Term)
Net
March 31,
inflows
Market
FX
June 30,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Active:
Equity
$
458,656
$
(4,581
)
$
-
$
41,315
$
9,164
$
504,554
$
477,538
Fixed income
1,149,891
3,454
(543
)
15,697
15,449
1,183,948
1,163,331
Multi-asset
988,884
(7,227
)
-
59,426
20,374
1,061,457
1,018,800
Private markets
212,354
6,819
(6,474
)
(1,068
)
3,613
215,244
214,708
Liquid alternatives
79,356
2,948
(29
)
3,769
626
86,670
82,849
Active subtotal
2,889,141
1,413
(7,046
)
119,139
49,226
3,051,873
2,957,226
ETFs:
Equity
3,111,438
22,066
-
298,889
22,724
3,455,117
3,245,785
Fixed income
1,039,115
43,617
-
7,451
11,041
1,101,224
1,065,853
Multi-asset
10,603
475
-
633
215
11,926
11,210
Digital assets
50,329
14,139
-
15,077
6
79,551
65,710
Commodities
91,276
4,563
-
4,891
220
100,950
95,843
ETFs subtotal
4,302,761
84,860
-
326,941
34,206
4,748,768
4,484,401
Non-ETF index
3,461,392
(40,484
)
-
262,337
74,003
3,757,248
3,578,299
Long-term
$
10,653,294
$
45,789
$
(7,046
)
$
708,417
$
157,435
$
11,557,889
$
11,019,926
Current Quarter Component Changes by Private Markets Product Type (Long-Term)
Net
March 31,
inflows
Market
FX
June 30,
Average
2025
(outflows)
Realizations(1)
change
impact(2)
2025
AUM(3)
Private markets:
Infrastructure
$
108,371
$
3,383
$
(774
)
$
43
$
1,300
$
112,323
$
110,365
Private equity
36,562
1,045
(4,186
)
103
219
33,743
36,173
Private credit
33,686
2,264
(1,096
)
(30
)
1,161
35,985
34,675
Real estate
26,076
(65
)
(366
)
(1,171
)
802
25,276
25,701
Multi-alternatives
7,659
192
(52
)
(13
)
131
7,917
7,794
Total private markets
$
212,354
$
6,819
$
(6,474
)
$
(1,068
)
$
3,613
$
215,244
$
214,708
(1)
Realizations represent return of capital/return on investments.
(2)
Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.
(3)
Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.
6
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-to-Date Component Changes by Product Type(1)
Net
December 31,
inflows
Market
FX
June 30,
Average
2024
(outflows)
Realizations(2)
change
impact(3)
2025
AUM(4)
Equity
$
6,310,191
$
48,096
$
-
$
425,528
$
121,623
$
6,905,438
$
6,463,741
Fixed income
2,905,669
33,073
(1,261
)
64,053
85,763
3,087,297
2,992,838
Multi-asset
992,921
1,802
-
53,385
28,601
1,076,709
1,022,719
Alternatives:
Private markets
211,974
13,964
(13,475
)
(2,481
)
5,262
215,244
212,414
Liquid alternatives
76,390
5,102
(29
)
4,369
838
86,670
80,773
Alternatives subtotal
288,364
19,066
(13,504
)
1,888
6,100
301,914
293,187
Digital assets
55,306
17,493
-
6,746
6
79,551
61,834
Currency and commodities(5)
78,137
9,612
-
18,733
498
106,980
93,879
Long-term
10,630,588
129,142
(14,765
)
570,333
242,591
11,557,889
10,928,198
Cash management
920,663
22,765
-
5,542
20,731
969,701
939,075
Total
$
11,551,251
$
151,907
$
(14,765
)
$
575,875
$
263,322
$
12,527,590
$
11,867,273
Year-to-Date Component Changes by Client Type and Product Type (Long-Term)(1)
Net
December 31,
inflows
Market
FX
June 30,
Average
2024
(outflows)
Realizations(2)
change
impact(3)
2025
AUM(4)
Retail:
Equity
$
505,118
$
8,141
$
-
$
31,396
$
13,178
$
557,833
$
522,323
Fixed income
318,641
1,360
-
5,726
7,897
333,624
325,253
Multi-asset
150,978
1,005
-
9,670
1,199
162,852
155,305
Private markets
15,749
1,094
(655
)
47
588
16,823
16,238
Liquid alternatives
24,735
3,474
-
1,383
273
29,865
27,285
Retail subtotal
1,015,221
15,074
(655
)
48,222
23,135
1,100,997
1,046,404
ETFs:
Equity
3,106,398
87,064
-
230,091
31,564
3,455,117
3,213,790
Fixed income
985,652
77,390
-
22,432
15,750
1,101,224
1,041,285
Multi-asset
10,734
308
-
665
219
11,926
10,964
Digital assets
55,306
17,493
-
6,746
6
79,551
61,834
Commodities
72,285
10,014
-
18,390
261
100,950
87,909
ETFs subtotal
4,230,375
192,269
-
278,324
47,800
4,748,768
4,415,782
Institutional:
Active:
Equity
218,848
1,678
-
13,491
8,081
242,098
226,527
Fixed income
840,328
(1,562
)
(1,261
)
27,486
16,941
881,932
858,235
Multi-asset
828,039
485
-
42,961
27,136
898,621
853,240
Private markets
196,225
12,870
(12,820
)
(2,528
)
4,674
198,421
196,176
Liquid alternatives
51,655
1,628
(29
)
2,986
565
56,805
53,488
Active subtotal
2,135,095
15,099
(14,110
)
84,396
57,397
2,277,877
2,187,666
Index
3,249,897
(93,300
)
-
159,391
114,259
3,430,247
3,278,346
Institutional subtotal
5,384,992
(78,201
)
(14,110
)
243,787
171,656
5,708,124
5,466,012
Long-term
$
10,630,588
$
129,142
$
(14,765
)
$
570,333
$
242,591
$
11,557,889
$
10,928,198
(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)
Realizations 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 seven months.
(5)
Amounts include commodity ETFs and ETPs.
7
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-to-Date Component Changes by Investment Style and Product Type (Long-Term)(1)
Net
December 31,
inflows
Market
FX
June 30,
Average
2024
(outflows)
Realizations(2)
change
impact(3)
2025
AUM(4)
Active:
Equity
$
467,163
$
(4,958
)
$
-
$
28,395
$
13,954
$
504,554
$
477,528
Fixed income
1,133,874
(3,876
)
(1,261
)
32,638
22,573
1,183,948
1,155,622
Multi-asset
979,001
1,490
-
52,632
28,334
1,061,457
1,008,530
Private markets
211,974
13,964
(13,475
)
(2,481
)
5,262
215,244
212,414
Liquid alternatives
76,390
5,102
(29
)
4,369
838
86,670
80,773
Active subtotal
2,868,402
11,722
(14,765
)
115,553
70,961
3,051,873
2,934,867
ETFs:
Equity
3,106,398
87,064
-
230,091
31,564
3,455,117
3,213,790
Fixed income
985,652
77,390
-
22,432
15,750
1,101,224
1,041,285
Multi-asset
10,734
308
-
665
219
11,926
10,964
Digital assets
55,306
17,493
-
6,746
6
79,551
61,834
Commodities
72,285
10,014
-
18,390
261
100,950
87,909
ETFs subtotal
4,230,375
192,269
-
278,324
47,800
4,748,768
4,415,782
Non-ETF index
3,531,811
(74,849
)
-
176,456
123,830
3,757,248
3,577,549
Long-term
$
10,630,588
$
129,142
$
(14,765
)
$
570,333
$
242,591
$
11,557,889
$
10,928,198
Year-to-Date Component Changes by Private Markets Product Type (Long-Term)
Net
December 31,
inflows
Market
FX
June 30,
Average
2024
(outflows)
Realizations(2)
change
impact(3)
2025
AUM(4)
Private markets:
Infrastructure
$
109,606
$
7,888
$
(6,639
)
$
(428
)
$
1,896
$
112,323
$
108,936
Private equity
36,327
1,969
(4,357
)
(518
)
322
33,743
36,169
Private credit
32,425
3,581
(1,557
)
(165
)
1,701
35,985
33,815
Real estate
26,147
(28
)
(651
)
(1,340
)
1,148
25,276
25,839
Multi-alternatives
7,469
554
(271
)
(30
)
195
7,917
7,655
Total private markets
$
211,974
$
13,964
$
(13,475
)
$
(2,481
)
$
5,262
$
215,244
$
212,414
(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)
Realizations 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 seven months.
8
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Product Type(1)
Net
June 30,
inflows
Market
FX
June 30,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Equity
$
5,827,135
$
248,804
$
-
$
-
$
735,141
$
94,358
$
6,905,438
$
6,322,151
Fixed income
2,815,884
119,598
(1,261
)
-
82,630
70,446
3,087,297
2,966,961
Multi-asset
921,412
43,923
-
-
93,861
17,513
1,076,709
999,938
Alternatives:
Private markets
137,868
20,220
(13,475
)
69,875
(3,001
)
3,757
215,244
189,552
Liquid alternatives
75,483
5,417
(29
)
-
5,429
370
86,670
78,462
Alternatives subtotal
213,351
25,637
(13,504
)
69,875
2,428
4,127
301,914
268,014
Digital assets
18,531
40,563
-
-
20,451
6
79,551
46,412
Currency and
commodities(6)
71,366
11,458
-
-
23,750
406
106,980
86,004
Long-term
9,867,679
489,983
(14,765
)
69,875
958,261
186,856
11,557,889
10,689,480
Cash management
778,042
164,521
-
-
11,154
15,984
969,701
891,281
Total
$
10,645,721
$
654,504
$
(14,765
)
$
69,875
$
969,415
$
202,840
$
12,527,590
$
11,580,761
Year-over-Year Component Changes by Client Type and Product Type (Long-Term)(1)
Net
June 30,
inflows
Market
FX
June 30,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Retail:
Equity
$
490,427
$
13,248
$
-
$
-
$
43,194
$
10,964
$
557,833
$
516,634
Fixed income
313,632
8,232
-
-
8,031
3,729
333,624
322,632
Multi-asset
147,719
(723
)
-
-
14,970
886
162,852
153,373
Private markets
15,848
1,388
(655
)
-
(217
)
459
16,823
16,114
Liquid alternatives
23,870
4,468
-
-
1,298
229
29,865
25,942
Retail subtotal
991,496
26,613
(655
)
-
67,276
16,267
1,100,997
1,034,695
ETFs:
Equity
2,830,268
242,214
-
-
361,224
21,411
3,455,117
3,115,075
Fixed income
931,217
137,034
-
-
21,917
11,056
1,101,224
1,017,002
Multi-asset
9,204
1,692
-
-
983
47
11,926
10,424
Digital assets
18,531
40,563
-
-
20,451
6
79,551
46,412
Commodities
66,554
10,816
-
-
23,411
169
100,950
80,443
ETFs subtotal
3,855,774
432,319
-
-
427,986
32,689
4,748,768
4,269,356
Institutional:
Active:
Equity
208,177
3,371
-
-
24,095
6,455
242,098
222,821
Fixed income
823,716
434
(1,261
)
-
45,887
13,156
881,932
854,758
Multi-asset
761,194
43,194
-
-
77,691
16,542
898,621
832,866
Private markets
122,020
18,832
(12,820
)
69,875
(2,784
)
3,298
198,421
173,438
Liquid alternatives
51,613
949
(29
)
-
4,131
141
56,805
52,520
Active subtotal
1,966,720
66,780
(14,110
)
69,875
149,020
39,592
2,277,877
2,136,403
Index
3,053,689
(35,729
)
-
-
313,979
98,308
3,430,247
3,249,026
Institutional subtotal
5,020,409
31,051
(14,110
)
69,875
462,999
137,900
5,708,124
5,385,429
Long-term
$
9,867,679
$
489,983
$
(14,765
)
$
69,875
$
958,261
$
186,856
$
11,557,889
$
10,689,480
(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").
(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.
9
ASSETS UNDER MANAGEMENT
(in millions), (unaudited)
Year-over-Year Component Changes by Investment Style and Product Type (Long-Term)(1)
Net
June 30,
inflows
Market
FX
June 30,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Active:
Equity
$
466,518
$
(10,283
)
$
-
$
-
$
37,115
$
11,204
$
504,554
$
478,604
Fixed income
1,112,578
4,658
(1,261
)
-
53,069
14,904
1,183,948
1,150,632
Multi-asset
908,897
42,471
-
-
92,661
17,428
1,061,457
986,223
Private markets
137,868
20,220
(13,475
)
69,875
(3,001
)
3,757
215,244
189,552
Liquid alternatives
75,483
5,417
(29
)
-
5,429
370
86,670
78,462
Active subtotal
2,701,344
62,483
(14,765
)
69,875
185,273
47,663
3,051,873
2,883,473
ETFs:
Equity
2,830,268
242,214
-
-
361,224
21,411
3,455,117
3,115,075
Fixed income
931,217
137,034
-
-
21,917
11,056
1,101,224
1,017,002
Multi-asset
9,204
1,692
-
-
983
47
11,926
10,424
Digital assets
18,531
40,563
-
-
20,451
6
79,551
46,412
Commodities
66,554
10,816
-
-
23,411
169
100,950
80,443
ETFs subtotal
3,855,774
432,319
-
-
427,986
32,689
4,748,768
4,269,356
Non-ETF index
3,310,561
(4,819
)
-
-
345,002
106,504
3,757,248
3,536,651
Long-term
$
9,867,679
$
489,983
$
(14,765
)
$
69,875
$
958,261
$
186,856
$
11,557,889
$
10,689,480
Year-over-Year Component Changes by Private Markets Product Type (Long-Term)
Net
June 30,
inflows
Market
FX
June 30,
Average
2024
(outflows)(2)
Realizations(2)
Acquisitions(3)
change
impact(4)
2025
AUM(5)
Private markets:
Infrastructure
$
37,294
$
11,675
$
(6,639
)
$
69,875
$
(1,030
)
$
1,148
$
112,323
$
87,054
Private equity
36,117
1,971
(4,357
)
-
(230
)
242
33,743
35,998
Private credit
30,877
5,811
(1,557
)
-
(445
)
1,299
35,985
32,812
Real estate
26,147
130
(651
)
-
(1,252
)
902
25,276
26,136
Multi-alternatives
7,433
633
(271
)
-
(44
)
166
7,917
7,552
Total private markets
$
137,868
$
20,220
$
(13,475
)
$
69,875
$
(3,001
)
$
3,757
$
215,244
$
189,552
(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.
(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.
10
SUMMARY OF REVENUE
Three Months
Three Months
Six Months
Ended
Ended
Ended
June 30,
March 31,
June 30,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Revenue
Investment advisory, administration fees and
securities lending revenue(1):
Equity:
Active
$
507
$
539
$
(32
)
$
518
$
(11
)
$
1,025
$
1,055
$
(30
)
ETFs
1,401
1,250
151
1,349
52
2,750
2,440
310
Equity subtotal
1,908
1,789
119
1,867
41
3,775
3,495
280
Fixed income:
Active
487
481
6
492
(5
)
979
965
14
ETFs
366
326
40
352
14
718
653
65
Fixed income subtotal
853
807
46
844
9
1,697
1,618
79
Active multi-asset
312
306
6
313
(1
)
625
611
14
Alternatives:
Private markets
499
241
258
535
(36
)
1,034
481
553
Liquid alternatives
157
141
16
150
7
307
279
28
Alternatives subtotal
656
382
274
685
(29
)
1,341
760
581
Non-ETF index
313
285
28
307
6
620
573
47
Digital assets, commodities and multi-asset
ETFs(2)
108
59
49
92
16
200
104
96
Long-term
4,150
3,628
522
4,108
42
8,258
7,161
1,097
Cash management
304
247
57
293
11
597
492
105
Total investment advisory, administration
fees and securities lending revenue
4,454
3,875
579
4,401
53
8,855
7,653
1,202
Investment advisory performance fees:
Equity
12
28
(16
)
10
2
22
36
(14
)
Fixed income
2
5
(3
)
12
(10
)
14
9
5
Multi-asset
6
11
(5
)
4
2
10
13
(3
)
Alternatives:
Private markets
39
68
(29
)
24
15
63
193
(130
)
Liquid alternatives
35
52
(17
)
10
25
45
117
(72
)
Alternatives subtotal
74
120
(46
)
34
40
108
310
(202
)
Total investment advisory performance fees
94
164
(70
)
60
34
154
368
(214
)
Technology services and subscription revenue
499
395
104
436
63
935
772
163
Distribution fees
320
318
2
321
(1
)
641
628
13
Advisory and other revenue:
Advisory
13
11
2
14
(1
)
27
24
3
Other
43
42
1
44
(1
)
87
88
(1
)
Total advisory and other revenue
56
53
3
58
(2
)
114
112
2
Total revenue
$
5,423
$
4,805
$
618
$
5,276
$
147
$
10,699
$
9,533
$
1,166
(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 Exhibit 99.2 to the Current Report on Form 8-K furnished on April 11, 2025 for the reclassified presentation of the 2024 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 $579 million from the second quarter of 2024, primarily driven by organic base fee growth, the impact of market beta and foreign exchange movements on average AUM, and approximately $240 million of fees related to the GIP Transaction. Securities lending revenue of $171 million increased from $154 million in the second quarter of 2024, primarily reflecting higher average balances of securities on loan.
Investment advisory, administration fees and securities lending revenue increased $53 million from the first quarter of 2025, primarily driven by organic base fee growth, the impact of market beta and foreign exchange movements on average AUM, and the effect of one additional day in the quarter. Securities lending revenue of $171 million increased from $157 million in the first quarter of 2025, primarily reflecting higher spreads.
•
Performance fees decreased $70 million from the second quarter of 2024, primarily reflecting lower revenue from private markets, liquid alternative and long-only products.
Performance fees increased $34 million from the first quarter of 2025, primarily reflecting higher revenue from liquid alternative and private markets products.
•
Technology services and subscription revenue increased $104 million from the second quarter of 2024 and $63 million from the first quarter of 2025, reflecting the sustained demand for Aladdin® technology offerings and revenue from the acquisition of Preqin Holding Limited ("Preqin") in March 2025 (the "Preqin Transaction"), which added approximately $60 million to second quarter revenue. Technology services and subscription annual contract value (“ACV”)(1) increased 32% from the second quarter of 2024 including ACV acquired with the Preqin Transaction, and increased 16% excluding ACV acquired with the Preqin Transaction.
(1)
See note (4) to the condensed consolidated statements of income and supplemental information on page 16 for more information on ACV.
11
SUMMARY OF OPERATING EXPENSE
Three Months
Three Months
Six Months
Ended
Ended
Ended
June 30,
March 31,
June 30,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Operating expense
Employee compensation and benefits
$
1,764
$
1,503
$
261
$
1,741
$
23
$
3,505
$
3,083
$
422
Sales, asset and account expense:
Distribution and servicing costs
576
539
37
570
6
1,146
1,057
89
Direct fund expense
441
358
83
392
49
833
696
137
Sub-advisory and other
46
32
14
47
(1
)
93
64
29
Total sales, asset and account expense
1,063
929
134
1,009
54
2,072
1,817
255
General and administration expense:
Marketing and promotional
93
76
17
97
(4
)
190
158
32
Occupancy and office related
120
102
18
114
6
234
203
31
Portfolio services
62
63
(1
)
64
(2
)
126
129
(3
)
Technology
198
157
41
189
9
387
317
70
Professional services
51
64
(13
)
73
(22
)
124
122
2
Communications
11
9
2
10
1
21
19
2
Foreign exchange remeasurement
4
2
2
(8
)
12
(4
)
4
(8
)
Contingent consideration fair value
adjustments
76
1
75
96
(20
)
172
(6
)
178
Other general and administration
74
60
14
76
(2
)
150
117
33
Total general and administration expense
689
534
155
711
(22
)
1,400
1,063
337
Restructuring charge
39
-
39
-
39
39
-
39
Amortization of intangible assets
137
39
98
117
20
254
77
177
Total operating expense
$
3,692
$
3,005
$
687
$
3,578
$
114
$
7,270
$
6,040
$
1,230
Highlights
•
Employee compensation and benefits expense increased $261 million from the second quarter of 2024, primarily reflecting the impact of the GIP and Preqin Transactions, including nonrecurring retention-related deferred compensation expense(1), partially offset by the impact of lower performance fees.
Employee compensation and benefits expense increased $23 million from the first quarter of 2025, primarily reflecting the impact of the Preqin Transaction and higher incentive compensation as a result of higher performance fees, partially offset by higher seasonal payroll taxes in the prior quarter.
•
Sales, asset and account expense increased $134 million from the second quarter of 2024 and $54 million from the first quarter of 2025, driven by higher direct fund expense and distribution and servicing costs, primarily reflecting higher average AUM.
•
General and administration expense increased $155 million from the second quarter of 2024, primarily associated with a higher noncash contingent consideration fair value adjustment(1) in connection with the GIP Transaction and higher technology expense.
General and administration expense decreased $22 million from the first quarter of 2025, primarily associated with lower acquisition-related transaction costs(1) recorded in professional services expense and a lower noncash contingent consideration fair value adjustment(1) in connection with the GIP Transaction, partially offset by a higher impact from foreign exchange remeasurement.
•
Amortization of intangible assets(1) increased $98 million from the second quarter of 2024 and $20 million from the first quarter of 2025, primarily reflecting amortization of intangible assets acquired in the GIP and Preqin Transactions.
•
A restructuring charge(1) of $39 million, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in the second quarter of 2025 in connection with an initiative to modify our organization to fit more closely with strategic priorities.
(1)
These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustments for acquisition-related costs and a restructuring charge, as applicable. See pages 14 through 16 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.
12
SUMMARY OF NONOPERATING INCOME (expense), less net income (loss) attributable TO noncontrolling interests
Three Months
Three Months
Six Months
Ended
Ended
Ended
June 30,
March 31,
June 30,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Nonoperating income (expense), GAAP basis
$
521
$
214
$
307
$
65
$
456
$
586
$
434
$
152
Less: Net income (loss) attributable to
noncontrolling interests ("NCI")
72
42
30
5
67
77
92
(15
)
Nonoperating income (expense), net of NCI
449
172
277
60
389
509
342
167
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
45
7
38
(15
)
60
30
38
(8
)
Nonoperating income (expense), net of NCI, as
adjusted(2)
$
404
$
165
$
239
$
75
$
329
$
479
$
304
$
175
Three Months
Three Months
Six Months
Ended
Ended
Ended
June 30,
March 31,
June 30,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Net gain (loss) on investments, net of NCI
Private equity
$
25
$
15
$
10
$
48
$
(23
)
$
73
$
23
$
50
Real assets
1
9
(8
)
(2
)
3
(1
)
6
(7
)
Other alternatives(3)
3
10
(7
)
9
(6
)
12
24
(12
)
Other investments(4)
11
34
(23
)
(10
)
21
1
65
(64
)
Hedge gain (loss) on deferred cash
compensation plans(1)
45
7
38
(15
)
60
30
38
(8
)
Subtotal
85
75
10
30
55
115
156
(41
)
Other income/gain (expense/loss)(5)
393
45
348
23
370
416
85
331
Total net gain (loss) on investments, net of NCI
478
120
358
53
425
531
241
290
Interest and dividend income
144
178
(34
)
173
(29
)
317
319
(2
)
Interest expense
(173
)
(126
)
(47
)
(166
)
(7
)
(339
)
(218
)
(121
)
Net interest income (expense)
(29
)
52
(81
)
7
(36
)
(22
)
101
(123
)
Nonoperating income (expense), net of NCI
449
172
277
60
389
509
342
167
Less: Hedge gain (loss) on deferred cash
compensation plans(1)
45
7
38
(15
)
60
30
38
(8
)
Nonoperating income (expense), net of NCI, as
adjusted(2)
$
404
$
165
$
239
$
75
$
329
$
479
$
304
$
175
(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 14 through 16.
(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)
Amounts for the three and six months ended June 30, 2025, include nonoperating noncash pre-tax gains in connection with the Company's minority investments in Circle Internet Group, Inc. of approximately $330 million and Scalable Capital Limited of approximately $32 million. In addition, amounts for the three and six months ended June 30, 2025, include nonoperating noncash pre-tax gains in connection with iCapital Network, Inc. of approximately $29 million and $65 million, respectively. The amount for the three and six months ended June 30, 2024 included a noncash pre-tax gain in connection with the acquisition of SpiderRock Advisors, LLC in May 2024 of approximately $19 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
Six Months
Ended
Ended
Ended
June 30,
March 31,
June 30,
(in millions), (unaudited)
2025
2024
Change
2025
Change
2025
2024
Change
Income tax expense
$
587
$
477
$
110
$
248
$
339
$
835
$
767
$
68
Effective tax rate
26.9
%
24.2
%
270 bps
14.1
%
1,280 bps
21.2
%
20.0
%
120 bps
Highlights
•
Second quarter 2025 and 2024 effective income tax rate was 26.9% and 24.2%, respectively. First quarter 2025 effective income tax rate of 14.1% included the impact of $149 million of discrete tax benefits related to the realization of capital losses from changes in the Company's organizational structure and a $46 million discrete tax benefit related to stock-based compensation awards that vested in the first quarter.
13
RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
(in millions), (unaudited)
2025
2024
2025
2025
2024
Operating income, GAAP basis
$
1,731
$
1,800
$
1,698
$
3,429
$
3,493
Non-GAAP expense adjustments:
Compensation expense related to appreciation (depreciation)
on deferred cash compensation plans (a)
30
9
(3
)
27
36
Amortization of intangible assets (b)
137
39
117
254
77
Acquisition-related compensation costs (b)
76
19
85
161
21
Acquisition-related transaction costs (b)(1)
10
13
39
49
35
Contingent consideration fair value adjustments (b)
76
1
96
172
(6
)
Restructuring charge (c)
39
-
-
39
-
Operating income, as adjusted (1)
$
2,099
$
1,881
$
2,032
$
4,131
$
3,656
Revenue, GAAP basis
$
5,423
$
4,805
$
5,276
$
10,699
$
9,533
Non-GAAP adjustments:
Distribution fees
(320
)
(318
)
(321
)
(641
)
(628
)
Investment advisory fees
(256
)
(221
)
(249
)
(505
)
(429
)
Revenue used for operating margin measurement
$
4,847
$
4,266
$
4,706
$
9,553
$
8,476
Operating margin, GAAP basis
31.9
%
37.5
%
32.2
%
32.0
%
36.6
%
Operating margin, as adjusted (1)
43.3
%
44.1
%
43.2
%
43.2
%
43.1
%
(1)
Amounts included within general and administration expense.
See note (1) to the condensed consolidated statements of income and supplemental information on page 15 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
Six Months Ended
June 30,
March 31,
June 30,
(in millions), (unaudited)
2025
2024
2025
2025
2024
Nonoperating income (expense), GAAP basis
$
521
$
214
$
65
$
586
$
434
Less: Net income (loss) attributable to NCI
72
42
5
77
92
Nonoperating income (expense), net of NCI
449
172
60
509
342
Less: Hedge gain (loss) on deferred cash compensation
plans (a)
45
7
(15
)
30
38
Nonoperating income (expense), less net income (loss)
attributable to NCI, as adjusted (2)
$
404
$
165
$
75
$
479
$
304
See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 15 and 16 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
Six Months Ended
June 30,
March 31,
June 30,
(in millions, except per share data), (unaudited)
2025
2024
2025
2025
2024
Net income attributable to BlackRock, Inc., GAAP basis
$
1,593
$
1,495
$
1,510
$
3,103
$
3,068
Non-GAAP adjustments(1):
Net impact of hedged deferred cash compensation plans (a)
(11
)
2
9
(2
)
(1
)
Amortization of intangible assets (b)
102
29
87
189
57
Acquisition-related compensation costs (b)
57
13
63
120
15
Acquisition-related transaction costs (b)
9
10
29
38
25
Contingent consideration fair value adjustments (b)
97
1
72
169
(4
)
Restructuring charge (c)
29
-
-
29
-
Income tax matters
7
-
-
7
(137
)
Net income attributable to BlackRock, Inc., as adjusted (3)
$
1,883
$
1,550
$
1,770
$
3,653
$
3,023
Diluted weighted-average common shares outstanding
156.3
149.7
156.6
156.4
149.9
Diluted earnings per common share, GAAP basis
$
10.19
$
9.99
$
9.64
$
19.83
$
20.47
Diluted earnings per common share, as adjusted (3)
$
12.05
$
10.36
$
11.30
$
23.35
$
20.17
(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 16 for more information on as adjusted items.
14
NOTES TO THE 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 (primarily associated with noncash contingent consideration) 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. 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.
(c)
Restructuring charge. In the second quarter of 2025, the Company recorded a restructuring charge, comprised of
severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify our organization to fit more closely with strategic priorities. Management believes excluding the impact of this restructuring charge when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.
•
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.
15
(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. In addition, the non-GAAP adjustment in the second quarter of 2025 related to contingent consideration fair value adjustments includes a tax impact associated with the deductibility of contingent consideration. In addition, the amount for income tax matters in 2024 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.
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.
16
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 acquisitions of GIP, Preqin and HPS Investment Partners (collectively, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) the unfavorable resolution of legal proceedings; (9) the extent and timing of any share repurchases; (10) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (11) the failure to effectively manage the development and use of artificial intelligence; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) increasing focus from stakeholders regarding environmental and social-related matters; (18) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including the Middle East conflicts, 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; (19) climate-related risks to BlackRock’s business, products, operations and clients; (20) the ability to attract, train and retain highly qualified professionals; (21) fluctuations in the carrying value of BlackRock’s economic investments; (22) 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; (23) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (24) the failure by key third-party providers to fulfill their obligations to BlackRock; (25) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (26) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (27) 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 (28) 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.
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PERFORMANCE NOTES
Past performance is not indicative of future results. Except as specified, the performance information shown is as of June 30, 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 May 31, 2025. The performance data does not include accounts terminated prior to June 30, 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 June 30, 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.
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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 | 10 | — | — |
| 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