BlackRock (BLK.US) reported its Q1 2025 results, which came in slightly below expectations. These results do not yet include the market panic that emerged after Trump's "Liberation Day," but they already reflect increased investor uncertainty, resulting in lower-than-expected net inflows. Nevertheless, the fund set another record in assets under management, reaching $11.58 trillion at the end of Q1 2025, up 11% year-over-year.
Pre-market trading indicates a slightly positive opening (about 0.7% above yesterday's close), although this is not so much due to a positive investor reception of the results as it is due to the earlier pricing of potential weakness from the strong declines in the last week.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation
BlackRock reported below-expectation results on almost every key financial metric. Although the company's revenue was $5.28 billion, which is close to the estimated $5.3 billion, its net inflows amounted to $84.17 billion, nearly $12 billion less than the consensus estimate. Institutional net outflows of $37.18 billion indicate a slight deterioration in sentiment among professional clients.
There is a sharp decline in revenues in the performance fee segment, although, given the significant declines in the U.S. market since the beginning of the year and a record-low quarter, this should not come as a big surprise.
The company's operating margin was 32.2%, almost 4 percentage points lower than the consensus expectation.
A positive aspect of the results, however, is the adjusted EPS, which came in at $11.30—over $1 higher than the consensus estimate.
1Q25 FINANCIAL RESULTS:
- Assets under management $11.58 trillion, +11% y/y, estimate $11.62 trillion
- Adjusted EPS $11.30 vs. $9.81 y/y, estimate $10.11
- Net inflows $84.17 billion, +47% y/y, estimate $96.02 billion
- Long-term inflows $83.35 billion, estimate $105.15 billion
- Institutional net outflows $37.18 billion
- Retail net inflows $13.12 billion
- Equity net inflows $19.31 billion, estimate $35.41 billion
- Fixed Income net inflows $37.74 billion
- Revenue $5.28 billion, estimate $5.3 billion
- Investment advisory performance fees $60 million, -71% y/y, estimate $126.9 million
- Base fees and securities lending revenue $4.40 billion, +16% y/y, estimate $4.36 billion
- Technology services revenue $436 million, +16% y/y, estimate $439.4 million
- Operating margin 32.2%, estimate 36%
- Adjusted operating margin 43.2%, estimate 42.6%
- Total expenses $3.58 billion, +18% y/y, estimate $3.4 billion
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.