- Record 2025 Earnings Apollo achieved $5.9B combined fee/spread-related earnings, driving $5.2B adjusted net income (+14% YoY).
- 2026 Growth Outlook Asset Management FRE growth targeted at 20%+; Retirement Services expects $85B inflows, including $5B from new markets.
- Origination Scale 2025 origination volumes reached $305B, with spreads of 290 bps over treasuries (IG: 220 bps; sub-IG: 200 bps over corporates).
- Retirement Demand Organic inflows rose to $182B in 2025, fueled by diversified demand sources like 401(k)s and wealth strategies (+50% YoY global wealth fundraising).
- Strategic Positioning ARI transaction to add 50-75 bps of spread; $9B commercial mortgage acquisition targets durable SRE growth and 10%+ average SRE growth through 2029.
Financial Performance
The company's strong financial performance was driven by broad-based strength across its business, with origination record volume exceeding $300 billion and capital formation setting a record with $228 billion in inflows. Apollo's asset management segment generated 25% year-over-year growth in AUM and fee-generating AUM, driving record fee-related earnings of $2.5 billion in 2025.
Valuation Metrics
To understand what's priced into Apollo's stock, we can look at its valuation metrics. The company's P/E Ratio is 18.65, P/B Ratio is 3.41, and P/S Ratio is 2.83. Additionally, the EV/EBITDA ratio is 8.64, indicating a reasonable valuation. The ROE is 21.78%, indicating strong profitability. With a Dividend Yield of 1.49% and Free Cash Flow Yield of 3.31%, Apollo offers a relatively attractive return to investors.
Business Outlook
Looking ahead to 2026, Apollo expects 20% plus FRE growth in Asset Management, driven by continued demand for retirement income and the global retirement crisis. The company's Retirement Services segment expects approximately $85 billion in inflows, with more than $5 billion coming from a new market. As Marc Rowan emphasized, Apollo's business is well-positioned to meet the growing demand for long-term security, with a strong earnings flywheel and sustained execution against its long-term strategy.
Growth Drivers
Apollo's growth is driven by its origination capabilities, balance sheet, and global wealth business. The company's origination volumes totaled $305 billion in 2025, with $282 billion in debt, comprised of 80% IG with an average rating of single A and 20% sub-investment grade rating with a rating of single B. The global wealth business had an excellent year, with fundraising totaling $18 billion, up nearly 50% year over year.