Blackstone Reports $3.29 Billion Revenue in Q1 2025, 11% Decrease Year-Over-Year

Blackstone Inc. reported a total revenue of $3.29 billion for the first quarter of 2025, reflecting an 11% decrease from $3.69 billion in the same period last year. The decline was primarily driven by a significant drop in investment income, which fell by 29% to $1.17 billion, largely due to a decrease in unrealized investment income. Specifically, unrealized performance allocations decreased by 41% to $263.2 million, while realized performance allocations also saw a decline of 14% to $562.1 million. The company's net income attributable to Blackstone Inc. was $614.9 million, down 27% from $847.4 million in the prior year.

In terms of expenses, Blackstone's total expenses increased by 6% to $1.89 billion, with compensation and benefits rising by 9% to $1.43 billion. This increase was largely due to higher management and advisory fees, which were up 10% to $1.90 billion. The company also reported a notable increase in compensation costs, which rose by 30% compared to the previous year. Despite these challenges, Blackstone's other income improved significantly, with net gains from fund investment activities reaching $57.6 million, a substantial increase from a loss of $17.8 million in the prior year.

Strategically, Blackstone has continued to expand its operations, with total assets under management increasing to $1.17 trillion as of March 31, 2025, up from $1.13 trillion at the end of 2024. This growth was attributed to inflows across various segments, particularly in private equity and credit, which saw increases of $18.8 billion and $13.2 billion, respectively. The firm also reported a rise in fee-earning assets under management, which reached $860.1 billion, an increase of $29.4 billion from the previous quarter.

Operationally, Blackstone's employee headcount has remained stable, with no significant changes reported in staffing levels. The company continues to focus on enhancing its investment strategies across its four main segments: Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing. The firm has also maintained a robust share repurchase program, having repurchased 0.2 million shares at a cost of $31 million during the quarter, with $1.8 billion remaining available for future repurchases.

Looking ahead, Blackstone's management expressed cautious optimism regarding market conditions, noting potential challenges stemming from ongoing global trade negotiations and economic uncertainties. The firm anticipates that these factors could impact fundraising and investment performance in the near term. However, Blackstone remains committed to leveraging its extensive resources and expertise to navigate these challenges and capitalize on emerging opportunities in the alternative asset management space.