Ares Management (ARES) 10-K Summary — Year Ended Dec 31, 2023
Ares Management Corporation is a financial services firm that manages investment funds and is subject to extensive regulation. In the most recent fiscal year, revenue grew year over year, net income was positive, but operating cash flow was negative.
Key takeaway
Year ended Dec 31, 2023 · FY2025 10-K
Ares Management Corporation is a financial services firm that manages investment funds and is subject to extensive regulation. In the most recent fiscal year, revenue grew year over year, net income was positive, but operating cash flow was negative.
Financial snapshot
Selected annual figures reported with the filing, shown separately from the narrative summary.
Annual revenue
$3.6B
Revenue reported for the fiscal year.
Operating income
n/a
Income from operations reported for the year.
Net income
$474.3M
Net income reported for the year.
Operating cash flow
-$233.3M
Cash generated by operating activities.
Annual revenue trend
Reported annual revenue and its change from the preceding fiscal year.
| Period ended | Revenue | Year-over-year change |
|---|---|---|
| Dec 31, 2022 | $3.1B | n/a |
| Mar 31, 2023 | $813.4M | -73.4% |
| Dec 31, 2023 | $3.6B | +346.5% |
Business overview
The company operates in the financial services industry, managing investment funds that invest in businesses across highly regulated sectors. Its operations are subject to extensive regulation by governmental agencies and self-regulatory organizations in the U.S. and abroad. The filing does not provide a detailed description of the company's business activities beyond these regulatory references.
Financial performance
Revenue increased year over year compared to the prior fiscal year, though it experienced a significant decline in one quarter before a larger increase in the final quarter. Net income was positive for the year. Operating cash flow was negative, indicating a net use of cash from operations.
Material risks
The company is subject to extensive regulation, including antitrust, anti-money laundering, anti-bribery, tax, and data privacy laws, and any failure to comply could result in liability or reputational harm. Changes in laws, rules, or regulatory oversight in the U.S. or other jurisdictions could directly affect the company's operations and profitability. Additional legislation or increased global regulatory scrutiny may also pose risks.
Liquidity and capital
The company reported negative operating cash flow, suggesting reliance on external financing or other sources to meet liquidity needs. The filing discusses liquidity and capital resources in terms of sources and uses, though no specific capital allocation actions are detailed.
What to watch
Monitor the revenue trend in the next filing, as quarterly results showed significant volatility during the reported period.