How does Ares Management (ARES) make money?

Ares Management (ARES) generates revenue primarily from Management Service, which accounted for 60.5% of total revenue in TTM through Q1 2026. The company reported $6.31B in revenue and converted 9.9% of it into net profit, equivalent to roughly $623M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Ares Management (ARES)?

Ares Management (ARES) reported a gross profit margin of 70.7% in TTM through Q1 2026, equivalent to $4.46B in gross profit on $6.31B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Ares Management (ARES)?

Ares Management (ARES) reported an operating profit margin of 22.9% in TTM through Q1 2026, equivalent to $1.44B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Ares Management (ARES)?

Ares Management (ARES) reported a net profit margin of 9.9% in TTM through Q1 2026, equivalent to $623M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Ares Management (ARES) profitable?

Yes. Ares Management (ARES) reported $623M in net income for TTM through Q1 2026, with a net profit margin of 9.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Ares Management (ARES) spend on capital expenditures?

Ares Management (ARES) spent $65.8M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.0% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Ares Management (ARES) generate?

Ares Management (ARES) generated $1.61B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 25.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Ares Management (ARES)?

Ares Management (ARES) had an effective tax rate of 16.5% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Ares Management (ARES)?

Ares Management (ARES) reports revenue across 6 reportable product segments, led by Management Service at 60.5% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Ares Management Makes Money: 2026 Visual Revenue Map

Ares Management (ARES) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 27, 2026 (reported March 31, 2026).

Ares Management discloses geographic revenue only in annual filings. to view the full breakdown.

Ares Management (ARES) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Ares Management (ARES), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Management Service	$3.82B	60.5%
Carried Interest	$1.34B	21.3%
Management Incentive	$438M	6.9%
Administrative Service	$406M	6.4%
Principal Investment	$183M	2.9%
Principal Investment Income	$120M	1.9%
Total	$6.31B	100%

Management Service$3.82B
Carried Interest$1.34B
Management Incentive$438M
Administrative Service$406M
Principal Investment$183M
Principal Investment Income$120M
Total$6.31B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Ares Management (ARES) reports revenue across 6 reportable product segments; the largest segment was Management Service at 60.5%, followed by Carried Interest (21.3%) and Management Incentive (6.9%).

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