ARES US S&P 500Russell 1000 Earnings call
Ares Management (ARES) · Q2 2026 results and valuation
Share price: $137.89 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter
Net income up 5.6% on the previous quarter. The language turned more upbeat.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+5.6%
Net income vs Q1 2026
Outlook given
Net income 150.6M vs 142.6M
Revenue −0.4%
2 · How management spoke
More upbeat
Language tone vs last period
Language: upbeat — more upbeat than in Q1 2026.
3 · What stood out
Ares Management expects to complete the final close of a fund later this year at a level above the $5 billion raised for the prior vintage.
Valuation
Is Ares Management undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $42.78 a share — the stock trades 222% above it. Today's price assumes 25.5% growth a year.
Current price
$137.89
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+25.5% for 10 yrs
Fair value / share
$42.78
Buy below
$32.08
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
If you were look at the Japan business, as Ares Management talked about in the prepared remarks, it is in the market…
Source quote
“If you were look at the Japan business, as we talked about in the prepared remarks, we are in the market... We have made significant progress on all three.”
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Guidance
Final close expected later this year above the prior vintage's $5 billion, including leverage and related vehicles.
Source quote
“We expect to complete the final close later this year at a level above the $5 billion raised for the prior vintage, including leverage and related vehicles.”
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Fading
Strong deployment spanned Infrastructure, Real Estate, and European Direct Lending, while platform diversification was said to shine through.
Source quote
“We saw really strong deployment in our Infrastructure and Real Estate businesses; our European Direct Lending business had very strong... In terms of the pipelines, the diversification of the platform really shines through in the quarter. Direct Lending part of the business.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Upbeat — more upbeat than in Q1 2026.
Sentences that drove the tone
“This AUM growth translated into even healthier increases in our fee-related earnings and realized income, which increased 20% and over 30%, respectively, as we benefit from our growing scale and...”
“In closing, we're very pleased with our progress, the broad-based strength and momentum we're seeing across the firm and the positioning of our leading global businesses in dynamic growth markets.”
“Our second quarter and year-to-date financial results reflect continued strong growth across our key financial metrics, increasing scale and diversification of our platform and the benefits of our strong long-term...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.29B | 1.30B | −0.4% | 1.04B | +24.3% |
| Operating income | 385.9M | 312.9M | +23.3% | 286.9M | +34.5% |
| Net income | 150.6M | 142.6M | +5.6% | 137.1M | +9.9% |
| P/E | — | — | — | — | — |
Topics
Most discussed now
- New Ares Management need to have a view that it can actually make the business better by delivering revenue synergy and information...
- Credit equity increased 27%, real assets increased 11% and other businesses.
- As Ares Management mentioned, it is in market with its fourth institutional loan fund and everything that it is seeing on the...
- It's a pretty well-honed framework, both for identifying candidates and then also for unlocking growth post acquisition.
- Ares Management needed to be strategically accretive, i.e., bring new capability or capacity or distribution to the table.
Faded since Q1 2026
- Dropped Because they do not operate with a significant amount of dry powder, when you look at the net flows into...
- Dropped The weighted average remaining maturity in Ares Management's software portfolio—probably similar to the general market—is about three…
- Dropped If you look at the history of its direct lending business—Ares Management has been doing this for over 30 years, over...
- Fading This growth continues to be driven by expansion in FPAUM, which increased 19% year-over-year due to strong underlying fundraising and...
Latest announcements
Official filings, newest first.
- Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K