Ares Management Corp(ARES)Stock Analysis
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Rank #290 of 2,879 stocksTOP 25%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
ARES Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Ares Management Corp (ARES), a Financials sector company. 13F Pro's AI-powered ranking engine scores ARES at 70.8/100 on a 32-signal composite quality model, placing it at rank #290 of 2,879 stocks — the top 25% of the AI-ranked universe. ARES scores in the top quartile across free cash flow (96.0), institutional flow (92.4), revenue growth (89.4). Areas of concern include earnings quality (35.5), which score below median versus the broader universe. Shareholder dilution risk is elevated at 12.0/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), Ares Management Corp reports quarterly revenue of $1.3B, net income of $142.6M, free cash flow of $406.5M. Top institutional holders of ARES by reported 13-F value include BlackRock,, VANGUARD CAPITAL MANAGEMENT, SUMITOMO MITSUI FINANCIAL GROUP,, based on the most recent SEC filings. ARES trades on the NYSE exchange and files with the SEC under CIK 1176948. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ARES daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Ares Management Corp directly from SEC EDGAR. Ares Management Corp's 13F Pro composite quality score has ranged between 44 and 75 since 2021, currently 70.8 — an improving long-term trajectory across 28 quarterly and live scoring snapshots.
What's Driving ARES's Business? Latest 10-Q Breakdown
AI-extracted from Ares Management Corp's 10-Q filed 2026-05-08 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Biggest Revenue Drivers
Total revenue: $1,396.4M+28% YoY
Increased by $172.5M primarily from perpetual wealth funds (ASIF, open-ended European direct lending, CADC) and capital deployment in private direct lending and alternative credit strategies; also includes full quarter impact of GCP Acquisition fees.
Decreased by $13.4M primarily due to reversals of unrealized carried interest from SVV market depreciation and lower valuations in certain real assets and private equity funds, partially offset by carried interest from Pathfinder II and direct lending funds.
Increased by $40.1M, driven by $21.0M from full quarter impact of property-related fees from GCP Acquisition, $6.5M in higher administrative service fees from perpetual wealth funds, and $5.2M in capital markets transaction fees.
Largest Expense Items
Increased by $35.3M, reflecting higher cash-based compensation from staff growth, full quarter GCP Acquisition employment costs ($30.8M), higher Part I Fee compensation ($14.9M), offset by lower equity compensation ($31.0M) and acquisition-related equity expense.
Increased by $105.7M, directly associated with higher carried interest allocation and incentive fees recognized during the period.
Increased by $12.5M due to full quarter GCP Acquisition operating costs ($13.2M), higher information technology spend ($5.7M), travel and marketing ($4.4M), and supplemental distribution fees ($4.2M), partially offset by lower acquisition-related costs.
Increased by $0.6M from operational expenses of consolidated funds.
Margins: Fee related earnings increased 26% to $464.4M, with the Credit Group contributing $477.4M (+17%), Real Assets Group $132.0M (+78%), and Secondaries Group $54.6M (+35%), reflecting strong management fee growth and higher performance revenues. The consolidated operations generated realized income of $502.7M (+24% YoY), demonstrating robust profitability across segments despite higher total operating expenses.
Watch Items from the Filing
- GCP Acquisition integration: The company acquired GLP Capital Partners' international business in Q1 2025 and completed the BlueCove acquisition in Q1 2026 (February 2026), resulting in significant contingent earnout liabilities of up to $1.5B for revenue and fundraising targets measured through June 2028, with $777.3M fair value liability recorded as of March 31, 2026.
- Carried interest concentration and volatility: Accrued carried interest of $4,029.5M (73% of total investments) is subject to reversal if fund performance deteriorates; reversals of $54.1M from Kodiak AI (KDK) stock price decline and performance adjustments in SVV, LREF VIII, ASOF I demonstrate sensitivity to market movements.
- High leverage in capital structure: Total debt obligations of $4,386.5M as of March 31, 2026, including new $400M Term Loan and $1,425M Credit Facility borrowings, with increased interest expense of $50.8M (+40% YoY); leverage ratio and interest coverage subject to market condition variations.
- AUM growth and embedded fee growth potential: Total AUM increased 3% to $644.3B; AUM not yet paying fees of $79.4B could generate ~$715.9M in incremental annual management fees (22% embedded growth), representing significant future revenue upside dependent on capital deployment.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$1.3B
Net Income
Q1 2026
$142.6M
Free Cash Flow
Q1 2026
$406.5M
ROIC
Q1 2026
7.8%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+28.9% YoYNet Income
-8.1% YoYTotal Assets
+15.1% YoYOp. Cash Flow
+17.0% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $4.76B +28.9% | $3.69B +14.0% | $3.24B +12.4% | $2.88B +25.8% | $2.29B +59.7% | $1.43B |
| Net Income | $426.1M -8.1% | $463.7M -2.2% | $474.3M +183.1% | $167.5M -56.7% | $386.7M +159.8% | $148.9M |
| Total Assets | $28.63B +15.1% | $24.88B +0.6% | $24.73B +12.4% | $22.00B +1.8% | $21.61B +79.8% | $12.01B |
| Operating Cash Flow | $3.27B +17.0% | $2.79B +1296.6% | $-233.3M +68.2% | $-734.1M +71.7% | $-2.60B -24.6% | $-2.08B |
AI Insight: ARES Ratio Trends
Severe earnings volatility masks underlying operational stress; Q1 2026 profitability halved versus Q3 2025 peak.
• Operating margin collapsed to 24.1% in Q1 2026 from 56.6% in Q3 2025; NPM fell to 11.0% from 25.1%.
• ROIC declined 27.2pp from Q3 2025 (58.3%) to Q1 2026 (31.1%), lowest since Q1 2025 trough of 12.7%.
• TTM metrics show stabilization: OpMargin 28.9%, NPM 12.3%, ROIC 36.2% — materially above Q1 2026 quarter.
⚠ Quarterly earnings severely unstable: Q1 quarters consistently weak (14.0%, 13.3% OpMargin); Q3 2025 anomaly unclear.
⚠ ROE dropped to 14.2% in Q1 2026 from 25.8% in Q3 2025; ROA at cyclical lows (2.0%), indicating capital deployment stress.
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Top Institutional Holders of ARES
BlackRock, Inc.
$1.8B16,169,065 shVANGUARD CAPITAL MANAGEMENT LLC
$1.5B13,489,463 shSUMITOMO MITSUI FINANCIAL GROUP, INC.
$1.5B13,364,740 shCapital World Investors
$1.3B11,784,120 shWELLINGTON MANAGEMENT GROUP LLP
$1.2B11,162,802 shVANGUARD PORTFOLIO MANAGEMENT LLC
$1.2B10,797,022 shSTATE STREET CORP
$938.8M8,604,601 shCANADA PENSION PLAN INVESTMENT BOARD
$830.8M7,614,645 shCHARLES SCHWAB INVESTMENT MANAGEMENT INC
$650.6M5,963,306 shGEODE CAPITAL MANAGEMENT, LLC
$611.2M5,624,013 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $1.8B | 16,169,065 |
| VANGUARD CAPITAL MANAGEMENT LLC | $1.5B | 13,489,463 |
| SUMITOMO MITSUI FINANCIAL GROUP, INC. | $1.5B | 13,364,740 |
| Capital World Investors | $1.3B | 11,784,120 |
| WELLINGTON MANAGEMENT GROUP LLP | $1.2B | 11,162,802 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $1.2B | 10,797,022 |
| STATE STREET CORP | $938.8M | 8,604,601 |
| CANADA PENSION PLAN INVESTMENT BOARD | $830.8M | 7,614,645 |
| CHARLES SCHWAB INVESTMENT MANAGEMENT INC | $650.6M | 5,963,306 |
| GEODE CAPITAL MANAGEMENT, LLC | $611.2M | 5,624,013 |
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Is ARES a good stock to buy?
13F Pro's AI-powered analysis of Ares Management Corp (ARES) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Financials sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for ARES are available on the ARES stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own ARES?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling ARES. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Ares Management Corp's investment landscape.