P10, Inc. reported third‑quarter 2025 results that showed adjusted earnings per share of $0.24, matching the consensus estimate of $0.23 and delivering a $0.01 beat, or a 4.3% surprise. The company’s revenue, however, fell short of expectations, coming in at $75.9 million versus the $77.97 million forecast by analysts—a miss of roughly 2.6%. The revenue shortfall was driven by a modest decline in the private‑credit segment, which saw a 3% drop in fee‑based income, offsetting a 5% rise in private‑equity fees.
Gross new fee‑paying assets under management grew 17% year‑over‑year to $915 million, bringing total fee‑paying AUM to $29.1 billion, up from $24.9 billion in Q3 2024. The jump reflects a 48% increase in organic fundraising and deployments across the first three quarters of 2025 compared with the same period in 2024, underscoring strong capital‑raising momentum in the middle‑market space.
Management highlighted that the company has surpassed its 2025 organic gross‑fundraising guidance of $4 billion and now expects to raise roughly $5 billion in total capital. The guidance lift signals confidence in continued demand for the firm’s private‑equity, private‑credit, and venture‑capital solutions, even as the firm maintains a disciplined approach to expanding its private‑credit platform, which currently represents less than 20% of fee‑paying AUM.
Operating margins contracted to 47% from 48% in the prior year, a 1‑percentage‑point decline attributed to higher operating expenses and a shift toward lower‑margin private‑credit deals. Despite the margin squeeze, the company’s fee‑related earnings margin remained robust, and the adjusted net income of $28.6 million reflected a 7% decline from $30.8 million in Q3 2024, largely due to increased investment‑related expenses and a one‑time restructuring charge of $1.2 million.
P10 also completed a share‑repurchase of 110,032 shares at an average price of $11.34, leaving approximately $26 million under its repurchase authorization. The firm declared a quarterly cash dividend of $0.0375 per share, payable on December 19, 2025. CEO Luke Sarsfield emphasized that the firm’s diversified platform and disciplined underwriting continue to support its growth trajectory, while noting that the private‑credit expansion remains a strategic priority.
The company’s market‑reaction was muted, with investors focusing on the revenue miss as the primary driver of the quarter’s performance. The earnings beat on EPS was offset by the top‑line shortfall, illustrating that investors prioritize revenue growth over earnings in assessing the firm’s execution.
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