ATH-PE · Athene Holding Ltd. 7.250% Fixe

Apollo Global Management's first quarter 2026 results presented a stark divergence between GAAP and non-GAAP profitability metrics, driven primarily by a significant one-time tax event. The company reported a GAAP Net Loss of $1.93 billion, or $(3.27) per share, a sharp reversal from the $418 million profit recorded in the same quarter of the previous year. This loss was attributable to a $1.7 billion tax expense resulting from the revocation of ACRA's election to be subject to the Government of Bermuda's Corporate Income Tax Act 2023, which led to a full valuation allowance against Bermuda deferred tax assets. Excluding this non-cash, one-time charge, the company's operational strength was evident. Adjusted Net Income (ANI) rose to $1.21 billion, or $1.94 per share, supported by robust performance across its core segments. Fee Related Earnings (FRE) hit a record $728 million, increasing 30% year-over-year due to record fee-related revenue and margin expansion to 57.7%. Capital solutions fees grew 60% year-over-year to $246 million, highlighting the scale of Apollo's origination ecosystem. Spread Related Earnings (SRE) declined 11% year-over-year to $719 million, primarily due to lower alternative net investment income and reduced contributions from origination platforms like Atlas. A significant milestone was achieved as Total Assets Under Management (AUM) surpassed $1 trillion, reaching $1.026 trillion, a 31% increase year-over-year. This growth was fueled by record total inflows of $115 billion in the quarter, including $65 billion from Athora's acquisition of Pension Insurance Corporation (PIC). The company continued to return capital to shareholders, repurchasing $256 million of common stock in the quarter and distributing over $1 billion in dividends over the last twelve months.