Apollo's second quarter arrived with two things to prove at once: that the asset-management flywheel kept spinning after the $1.4 billion Athora-financed Pension Insurance Corporation acquisition, and that the spread engine at Athene could keep growing into a $1.05 trillion balance sheet. Both stories showed up in the numbers. Total AUM crossed $1.05 trillion for the first time, up 25% year over year on $298 billion of last-twelve-month inflows, of which roughly $99 billion was inorganic (the Bridge close in September 2025 and Athora's PIC acquisition in the first quarter). Underneath, Fee Related Earnings hit a record $785 million, up 25% year over year, and Spread Related Earnings hit a record $877 million, up 7%. The non-GAAP earnings line Apollo runs the business on - Adjusted Net Income - reached $1.31 billion, or $2.11 per share, lifting the year-to-date to $2.52 billion, or $4.05 per share. The headline GAAP line told a different story: net income to common stockholders of $1.34 billion, or $2.18 per share, a more than doubling from $605 million a year ago, but masked by the volatile Athene accounting that swung the first quarter to a $1.93 billion GAAP loss on a one-time $1.69 billion tax provision.
This is a quarter in which the adjusted number is the truer one, the two engines grew in different ways for different reasons, and a quiet corporate-finance event landed after the books closed: on July 31, the 28.7 million shares of 6.75% Mandatory Convertible Preferred Stock that had been outstanding since 2023 automatically converted to 14.6 million shares of common at a 0.5074 ratio, leaving Apollo with a single class of common equity outstanding going forward, saving roughly $95 million a year in preferred dividends that drop to common.
The valuation question is now cleaner because the share count is cleaner. At a reference price of $138.61 (market cap roughly $80 billion on common, $86 billion on the Adjusted Net Income share count that still includes the preferred), Apollo trades at roughly 14x forward earnings and yields about 1.6% on a $2.25-a-year dividend - modest by asset-manager standards. The market is pricing Apollo as the second-cheapest large alt manager, and the report's own test is whether the second-half run rate, the FRE margin path, and the post-conversion share count deliver what the multiple promises.