Ares reported GAAP net income of $85.3 million for the third quarter, a significant decline from $288.9 million in the same quarter of the previous year. GAAP earnings per share fell from $1.15 to $0.21, due to unrealized investment losses and market valuation fluctuations.
However, the company’s non-GAAP metrics painted a more positive picture of its underlying business performance. Profit after taxes, excluding unrealized gains and losses, reached $449.6 million, an increase of 6% from $425.8 million in the third quarter of 2025. Earnings after taxes per share were $1.26, slightly below analysts’ forecast of $1.27, but representing a 6% increase from the prior year.
The company’s asset growth accelerated in many respects during the quarter. Total assets under management (AUM) reached $690.6 billion as of September 30, 2026, an increase of $94.9 billion, or 16%, from $595.7 billion a year earlier. Fee-based AUM, which directly generates management fees, grew by 13% from $367.6 billion to $416.4 billion. Ares raised $31.0 billion in gross capital commitments during the third quarter.
A key aspect of Ares’ investment strategy is the growth potential inherent in capital that has already been raised but is not yet subject to fees. The company ended the quarter with $117.1 billion in assets under management for which no fees are currently being charged. Of this amount, $93.8 billion is available for future investments, and $2.3 billion is in development projects that have not yet stabilized.