PX — P10, Inc.

Summary of P10, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Fee-Paying Assets Under Management (AUM): $29.4 billion, a 15% year-over-year increase.
• Organic Fundraising: Raised and deployed $5.1 billion in 2025, exceeding guidance by $1 billion.
• Fee-Related Revenues (FRR): $297.3 million for 2025, a 13% increase excluding catch-up fees; Q4 FRR was $81 million, up 20% year-over-year.
• Adjusted Net Income (ANI): Q4 ANI was $30.2 million, down 14% from the previous year; full-year ANI was $23 million, up from $19.7 million in 2024.
• FRE Margin: 48% in Q4; anticipated to be in the mid-40s for 2026.
• Operating Expenses: Decreased to $55.2 million in Q4 from $62.2 million in the previous year, and $231.8 million for the full year, down from $235.8 million in 2024.
• GAAP Net Income: $11 million in Q4, up from $5.7 million in the prior year.

2. Strategic Updates and Business Highlights:

• Rebranding: Transitioned to P10, Inc. to reflect a cohesive strategy and growth trajectory.
• Acquisition of Stellus: Announced acquisition of Stellus, a direct lending platform with $3.8 billion in AUM, aimed at expanding capabilities in the lower middle market.
• Global Expansion: Opened a new office in Dubai and completed the acquisition of Qualitas Funds, enhancing international presence.
• Product Development: Launched an evergreen product and expanded offerings for European investors.
• Cross-Selling Initiatives: Over 10% of capital raised since the 2024 Investor Day came from successful cross-sales among existing clients.

3. Forward Guidance and Outlook:

• 2026 Fundraising Target: Projecting to raise and deploy at least $10 billion in gross fee-paying AUM over the next two years, excluding acquisitions.
• Long-Term Goals: Aiming to double fee-paying AUM to $50 billion by 2029, primarily through organic growth.
• Core Fee Rate: Expected to average 103 basis points in 2026, with potential for expansion in the latter half of the year.

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

• Step-Downs and Expirations: Exceeded initial expectations, primarily due to early paydowns in the credit business and expirations of managed accounts, which may indicate volatility in AUM.
• Decline in ANI: The decrease in adjusted net income due to historically high catch-up fee revenue in 2024 raises concerns about sustainability.
• Market Risks: Exposure to AI-related risks was discussed, with a modest overall portfolio exposure to SaaS and software, indicating potential vulnerabilities in certain sectors.

5. Notable Q&A Insights:

• AI Exposure: Management expressed confidence in their venture portfolio's exposure to AI, viewing it as a long-term positive, while maintaining a cautious stance on traditional sectors vulnerable to AI disruption.
• Private Wealth Strategy: Plans to enhance private wealth distribution through partnerships rather than building a dedicated sales team, indicating a strategic pivot in approach.
• Stellus Acquisition Details: Management refrained from providing detailed financial metrics related to Stellus until closer to the deal's closing, highlighting a cautious approach to integration.

Overall, P10, Inc. demonstrated strong financial growth and strategic initiatives while navigating challenges related to market dynamics and portfolio management. The outlook remains optimistic with ambitious growth targets and a focus on expanding capabilities through acquisitions and product innovation.