PX — P10, Inc.

Summary of P10 Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Total Fee-Paying AUM: $29.1 billion, up 17% year-over-year.
• Organic Fundraising: $915 million in Q3; total of $4.3 billion raised in the first three quarters of 2025, a 48% increase from the same period in 2024.
• Fee-Related Revenue (FRR): $75.9 million for Q3, a 4% year-over-year increase; 13% increase when excluding catch-up fees.
• Adjusted Net Income (ANI): $28.6 million, down 7% year-over-year; ANI per share at $0.24 versus $0.26 in Q3 2024.
• Operating Expenses: $65.2 million, flat compared to Q3 2024.
• Cash and Cash Equivalents: Approximately $40 million at quarter-end; total debt of $398 million.
• Dividend: Quarterly cash dividend of $0.0375 per share announced.

2. Strategic Updates and Business Highlights:

• Fundraising Momentum: Exceeded the annual organic gross fundraising guidance of $4 billion, raising expectations to nearly $5 billion for the year.
• Commingled Funds: 17 funds in the market; notable success with RCP's Secondary Fund V, which closed at $1.26 billion.
• Market Positioning: Focus on middle and lower-middle markets, with plans to expand private credit offerings.
• M&A Activity: Active pipeline with disciplined evaluation of potential acquisitions; emphasis on strategic growth through partnerships and joint ventures.
• Dual Listing: Announced dual listing on NYSE Texas to enhance engagement with investors.

3. Forward Guidance and Outlook:

• 2025 Expectations: Anticipate finishing the year with nearly $5 billion in organic gross fundraising; expect step-downs and expirations to stabilize around historical averages in 2026.
• Long-term Growth: Continued focus on expanding AUM and diversifying investment strategies, particularly in private credit and NAV lending.

4. Bad News, Challenges, or Points of Concern:

• Step-downs and Expirations: Increased step-downs and expirations anticipated to exceed initial expectations of 5%-7% for 2025, primarily due to early paydowns in credit portfolios.
• Adjusted Net Income Decline: ANI decreased year-over-year, attributed to lower cash interest paid in the previous year and higher borrowing costs from acquisitions.
• Market Sensitivity: While P10 is less affected by macro trends compared to peers, a downturn in the broader M&A environment could impact growth opportunities.

5. Notable Q&A Insights:

• Client Commitments: New mandates from clients have already contributed to fee-paying AUM, despite earlier-than-expected expirations.
• Insurance Channel Growth: Noted success in expanding relationships with insurance companies, alongside other large capital allocators.
• Credit Platform Growth: Emphasis on disciplined underwriting and expansion of credit strategies, including NAV lending and impact credit.
• Synergies with Qualitas: Highlighted the potential for cross-selling and joint ventures, particularly with the new U.S. fund targeting European investors.
• Buyback Authorization: $26 million remaining on buyback authorization; management remains committed to share repurchases as part of capital allocation strategy.

Overall, P10's Q3 2025 results reflect strong fundraising momentum and strategic growth initiatives, despite some challenges related to step-downs and market conditions. The company remains optimistic about its positioning in the middle and lower-middle markets and is focused on leveraging synergies across its platforms.