P10, Inc. (NYSE: PX) (the “Company”), a leading private
markets solutions provider, today reported financial results
for the first quarter ended March 31, 2025.
First Quarter 2025 Financial
Highlights
-
Revenue: $67.7 million, a 2% increase year over year.
-
Fee-Related Revenue: $67.6 million, a 4% increase year over
year.
-
Fee-Paying Assets Under Management: $26.3 billion, a 10%
increase year over year.
-
GAAP Net Income: $4.7 million compared to $5.2 million in the
prior year.
-
Fee-Related Earnings: $30.7 million compared to $30.7 million in
the prior year.
-
Adjusted Net Income: $23.5 million compared to $25.4 million
in the prior year.
-
Fully Diluted GAAP EPS: $0.04 compared to $0.04 in the prior
year.
-
Fully Diluted ANI per share: $0.20 compared to $0.21 in the
prior year.
A presentation of the quarterly financials may be
accessed here and is available on the Company’s
website.
“In the first quarter, P10 raised and deployed over $1.4 billion
in gross new fee-paying AUM, representing the best fundraising
quarter in our history,” said Luke Sarsfield, P10 Chairman and
Chief Executive Officer. “Our record quarter is a true testament to
the strength of our platform and what we are building here at P10.
Additionally, we recently completed the acquisition of Qualitas
Funds, significantly expanding our global presence. Looking ahead,
we believe we are well positioned to meet our fundraising targets
and further expand our client franchise by providing unrivaled
access to investment opportunities.”
Stock Repurchase Program
In the first quarter, the Company repurchased
1,215,106 shares at an average price of $12.31 per share. The
repurchase activity left approximately $28.5 million available
under the repurchase authorization at the end of the first
quarter.
Declaration of Dividend
The Board of Directors of the Company has declared a quarterly
cash dividend of $0.0375 per share on Class A and Class B
common stock, an increase of 7%, payable on June 20, 2025, to the
holders of record as of the close of business on May 30, 2025.
Conference Call Details
The Company will host a conference call at 8:30 a.m.
Eastern Time on Thursday, May 8, 2025. All participants
must register prior to joining the event.
- To join and view the live webcast,
please register here.
- To join by telephone, please
register here.
For those unable to participate in the live event, a replay will
be made available on P10’s investor relations page
at www.p10alts.com.
About P10
P10 is a leading multi-asset class private markets solutions
provider in the alternative asset management industry. P10’s
mission is to provide its investors differentiated access to a
broad set of investment solutions that address their diverse
investment needs within private markets. As of March 31, 2025,
P10’s products have a global investor base of more than 3,800
investors across 50 states, 60 countries, and six continents, which
includes some of the world’s largest pension funds, endowments,
foundations, corporate pensions, and financial institutions.
Visit www.p10alts.com.
Forward-Looking Statements
Some of the statements in this release may constitute
“forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform
Act of 1995. Words such as “will,” “expect,” “believe,” “estimate,”
“continue,” “anticipate,” “intend,” “plan” and similar expressions
are intended to identify these forward-looking statements.
Forward-looking statements discuss management’s current
expectations and projections relating to our financial position,
results of operations, plans, objectives, future performance, and
business. The inclusion of any forward-looking information in this
release should not be regarded as a representation that the future
plans, estimates, or expectations contemplated will be achieved.
Forward-looking statements reflect management’s current plans,
estimates, and expectations, and are inherently uncertain. All
forward-looking statements are subject to known and unknown risks,
uncertainties, assumptions and other important factors that may
cause actual results to be materially different; global and
domestic market and business conditions; successful execution of
business and growth strategies and regulatory factors relevant to
our business; changes in our tax status; our ability to maintain
our fee structure; our ability to attract and retain key employees;
our ability to manage our obligations under our debt agreements;
our ability to make acquisitions and successfully integrate the
businesses we acquire; assumptions relating to our operations,
financial results, financial condition, business prospects and
growth strategy; and our ability to manage the effects of events
outside of our control. The foregoing list of factors is not
exhaustive. For more information regarding these risks and
uncertainties as well as additional risks that we face, you should
refer to the “Risk Factors” included in our annual report on
Form 10-K for the year ended December 31, 2024,
filed with the U.S. Securities and Exchange
Commission (“SEC”) on February 28, 2025, and in our
subsequent reports filed from time to time with the SEC. The
forward-looking statements included in this release are made only
as of the date hereof. We undertake no obligation to update or
revise any forward-looking statement as a result of new information
or future events, except as otherwise required by law.
Use of Non-GAAP Financial Measures by
P10
The non-GAAP financial measures contained in this press release
(including, without limitation, Fee-Related Revenue (“FRR”),
Fee-Related Earnings (“FRE”), Fee-Related Earnings Margin, Adjusted
Net Income (“ANI”), Fully Diluted ANI per share and fee-paying
assets under management) are not GAAP measures of the Company’s
financial performance or liquidity and should not be considered as
alternatives to net income (loss) as a measure of financial
performance or cash flows from operations as measures of liquidity,
or any other performance measure derived in accordance with GAAP. A
reconciliation of such non-GAAP measures to their most directly
comparable GAAP measure is included later in this press release.
The Company believes the presentation of these non-GAAP measures
provide useful additional information to investors because it
provides better comparability of ongoing operating performance to
prior periods. It is reasonable to expect that one or more excluded
items will occur in future periods, but the amounts recognized can
vary significantly from period to period. These non-GAAP measures
should not be considered substitutes for net income or cash flows
from operating, investing, or financing activities. You are
encouraged to evaluate each adjustment to non-GAAP financial
measures and the reasons management considers it appropriate for
supplemental analysis. Our presentation of these measures should
not be construed as an inference that our future results will be
unaffected by unusual or non-recurring items.
Key Financial & Operating Metrics
Fee-paying assets under management reflects the assets from
which we earn management and advisory fees. Our vehicles typically
earn management and advisory fees based on committed capital, and
in certain cases, net invested capital, depending on the fee terms.
Management and advisory fees based on committed capital are not
affected by market appreciation or depreciation.
P10 Investor Contact:info@p10alts.com
P10 Media Contact:Josh ClarksonTaylor
Donahuepro-p10@prosek.com
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
(Dollars in thousands except share and per share amounts) |
|
Three Months Ended |
|
% Change |
|
|
March 31, 2025 |
March 31, 2024 |
|
Q1'25 vs Q1'24 |
GAAP Net Income |
|
$ |
4,696 |
|
$ |
5,243 |
|
|
-10% |
Adjustments: |
|
|
|
|
|
Depreciation & amortization |
|
|
5,804 |
|
|
7,083 |
|
|
-18% |
Interest expense, net |
|
|
6,417 |
|
|
5,776 |
|
|
11% |
Income tax expense |
|
|
265 |
|
|
1,758 |
|
|
-85% |
Non-recurring expenses |
|
|
3,460 |
|
|
691 |
|
|
401% |
Non-cash stock based compensation |
|
|
5,855 |
|
|
5,945 |
|
|
-2% |
Non-cash stock based compensation - acquisitions |
|
|
710 |
|
|
771 |
|
|
-8% |
Earn out related compensation |
|
|
3,519 |
|
|
3,558 |
|
|
-1% |
Non-Fee Related Income |
|
|
(39 |
) |
|
(84 |
) |
|
-54% |
Fee-Related Earnings |
|
$ |
30,687 |
|
$ |
30,741 |
|
|
0% |
Plus: |
|
|
|
|
|
Non-Fee Related Income |
|
$ |
39 |
|
$ |
84 |
|
|
-54% |
Less: |
|
|
|
|
|
Cash interest expense |
|
|
(6,696 |
) |
|
(5,406 |
) |
|
24% |
Cash income taxes, net of taxes related to acquisitions |
|
|
(570 |
) |
|
(19 |
) |
|
2900% |
Adjusted Net Income |
|
$ |
23,460 |
|
$ |
25,400 |
|
|
-8% |
|
|
|
|
|
|
Fully Diluted ANI per Share |
|
|
|
|
|
Shares outstanding |
|
|
110,907 |
|
|
115,129 |
|
|
-4% |
Fully Diluted Shares outstanding |
|
|
119,352 |
|
|
122,841 |
|
|
-3% |
ANI per share |
|
$ |
0.21 |
|
$ |
0.22 |
|
|
-4% |
Fully Diluted ANI per share(1) |
|
$ |
0.20 |
|
$ |
0.21 |
|
|
-5% |
|
|
|
|
|
|
Fee-Related Revenue |
|
|
|
|
|
Total Revenues |
|
$ |
67,667 |
|
$ |
66,115 |
|
|
2% |
Adjustments: |
|
|
|
|
|
Non-Fee Related Revenue |
|
|
(39 |
) |
|
(1,108 |
) |
|
-96% |
Fee-Related Revenue |
|
$ |
67,628 |
|
$ |
65,007 |
|
|
4% |
|
|
|
|
|
|
Fee-Related Earnings Margin |
|
|
|
|
|
Fee-Related Revenue |
|
$ |
67,628 |
|
$ |
65,007 |
|
|
4% |
Fee-Related Earnings |
|
$ |
30,687 |
|
$ |
30,741 |
|
|
0% |
Fee-Related Earnings Margin |
|
|
45 |
% |
|
47 |
% |
|
N/A |
(1) Fully Diluted ANI EPS calculations include the total of all
shares of common stock, stock options under the treasury stock
method, restricted stock awards, and the redeemable non-controlling
interests of P10 Intermediate converted to Class A stock as of each
period presented.
Notes to Reconciliation of Non-GAAP
Financial Measures
Above is a calculation of our unaudited non-GAAP financial
measures. These are not measures of financial performance under
GAAP and should not be construed as a substitute for the most
directly comparable GAAP measures, which are reconciled in the
table above. These measures have limitations as analytical tools,
and when assessing our operating performance, you should not
consider these measures in isolation or as a substitute for GAAP
measures. Other companies may calculate these measures differently
than we do, limiting their usefulness as a comparative measure.
We use Adjusted Net Income, or ANI, Fee-Related Revenues,
Fee-Related Earnings and Fee-Related Earnings Margin to provide
additional measures of profitability. We use the measures to assess
our performance relative to our intended strategies, expected
patterns of profitability, and budgets, and use the results of that
assessment to adjust our future activities to the extent we deem
necessary. ANI reflects an estimate of our cash flows generated by
our core operations. ANI is calculated as Fee-Related Earnings,
plus Non-Fee Related Income, less actual cash paid for interest and
federal and state income taxes.
In order to compute Fee-Related Earnings, we adjust our GAAP Net
Income for the following items:
- Expenses that typically do not require us to pay them in cash
in the current period (such as depreciation, amortization and
stock-based compensation);
- The cost of financing our business;
- One-time expenses related to restructuring of the management
team including placement/search fees;
- Expenses related to one-time technical accounting matters;
- Acquisition-related expenses which reflects the actual costs
incurred during the period for the acquisition of new businesses,
which primarily consists of fees for professional services
including legal, accounting, and advisory, as well as bonuses paid
to employees directly related to the acquisition;
- The effects of income taxes;
- Non-Fee Related Income.
Fee-Related Revenues is calculated as Total Revenues less
Non-Fee Related Revenue.
Fee-Related Earnings is a non-GAAP performance measure used to
monitor our baseline earnings less any incentive fee revenue and
excluding any incentive fee-related expenses.
Fee-Related Earnings Margin is calculated as Fee-Related
Earnings divided by Fee-Related Revenues.
Adjusted Net Income reflects net cash paid for federal and state
income taxes and cash interest expense.
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