CONSHOHOCKEN, PA — Hamilton Lane Incorporated (Nasdaq: HLNE) posted lower year-over-year earnings for its first fiscal quarter ended June 30, 2025, as weaker incentive fees weighed on revenue, though assets under management continued to grow.
The private markets asset manager reported GAAP net income of $77.1 million, down 12% from the prior-year quarter, with net income attributable to Hamilton Lane at $53.7 million, a 9% drop. Diluted earnings per share fell 13% to $1.28. Total revenue declined 11% to $176 million, driven by a 26% slide in incentive fees to $42.3 million and a 4% decrease in management and advisory fees to $133.7 million.
Fee Related Earnings—a non-GAAP measure that strips out volatile items—rose 31% year-over-year to $83.7 million, supported by a 10% increase in fee-earning assets under management, which reached $74.4 billion. Adjusted net income was $71.6 million, down 12%, while adjusted EBITDA held steady at $95.8 million.
Assets under management totaled $140.9 billion at quarter end, up 9% from a year earlier, with assets under advisement climbing 4% to $845.3 billion. The company said over 80% of gross contributions in the past year came from existing clients, reflecting strong retention and re-investment trends.
Despite the earnings decline, Hamilton Lane raised its shareholder payout, declaring a quarterly dividend of $0.54 per share, payable October 6 to holders of record on September 19. The annualized $2.16 per share distribution marks a 10% increase from last fiscal year.
The firm’s balance sheet remained solid, with $263.3 million in cash and $288.6 million in debt as of June 30. Unrealized carried interest stood at $1.31 billion, diversified across more than 3,000 assets and 110 funds.
Management pointed to ongoing fundraising in credit, equity, infrastructure, and impact strategies, along with steady management fee rates, as positioning the business for long-term growth despite quarter-to-quarter fluctuations in incentive income.
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