BlackRock's Q2 Net Inflows, Performance Fees Take A Hit

Investment manager giant BlackRock, Inc. BLK reported that second-quarter 2025 revenue grew 13% year-over-year to $5.42 billion, beating the consensus of $5.34 billion. 

Investment advisory, administration fees, and securities lending revenue increased to $4.45 billion from $3.88 billion a year ago, 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.

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Performance fees decreased $70 million from the second quarter of 2024, primarily reflecting lower revenue from private markets, liquid alternative, and long-only products.

BlackRock stated that $68 billion of quarterly total net inflows, down from $81.6 billion a year ago, reflect the impact of a single institutional client’s $52 billion lower-fee index partial redemption.

Net inflows reached $152 billion year to date, led by a record first half for iShares ETFs, alongside private markets and cash net inflows.

At the end of the quarter, total AUM was $12.53 trillion, compared to $10.65 trillion in the prior year quarter.

Adjusted operating income rose 12% to $2.09 billion. Adjusted EPS increased 16% to $12.05, beating the consensus of $10.80.

Laurence Fink, Chairman and CEO, commented, “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.”

“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,” Fink added.

Price Action: BLK stock is trading lower by 1.12% to $1,099 during the premarket session at last check Tuesday.

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