Item 1. Financial Statements

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Item 1. Financial Statements

Ares Management Corporation

Condensed Consolidated Statements of Financial Condition (Amounts in Thousands, Except Share Data)




	As of
	June 30, 2026		December 31, 2025
	(unaudited)
Assets
Cash and cash equivalents	$	557,094	$	488,896
Investments (includes accrued carried interest of $4,141,111 and $3,972,748 as of June 30, 2026 and December 31, 2025, respectively)	5,546,255		5,508,447
Due from affiliates	1,377,120		1,420,218
Other assets	1,090,376		1,032,138
Right-of-use operating lease assets	633,385		517,351
Intangible assets, net	2,095,022		2,115,830
Goodwill	3,464,289		3,454,107
Assets of Consolidated Funds:
Cash and cash equivalents	1,295,264		959,088

Investments, at fair value	13,393,347		12,844,886

Receivable for securities sold	113,294		228,442
Other assets	65,953		63,966
Total assets	$	29,631,399	$	28,633,369
Liabilities
Accounts payable, accrued expenses and other liabilities	$	1,227,298	$	1,204,467
Accrued compensation	635,157		472,978
Due to affiliates	764,768		810,409
Performance related compensation payable	3,122,566		2,951,333
Debt obligations	4,577,159		3,941,415
Operating lease liabilities	812,596		669,999
Liabilities of Consolidated Funds:
Accounts payable, accrued expenses and other liabilities	124,570		105,137

Payable for securities purchased	256,519		165,391
CLO loan obligations, at fair value	6,951,657		7,359,072
Fund borrowings	2,531,196		2,251,780
Total liabilities	21,003,486		19,931,981
Commitments and contingencies

Redeemable interest in Ares Operating Group entities	25,648		25,296
Non-controlling interests in Consolidated Funds	3,326,661		2,903,858
Non-controlling interests in Ares Operating Group entities	1,307,531		1,496,771
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025)	1,460,030		1,460,030
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (223,882,317 shares and 218,465,429 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)	2,239		2,185
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding as of June 30, 2026 and December 31, 2025)	35		35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025)	—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (102,828,576 shares and 105,079,121 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)	1,028		1,051
Additional paid-in-capital	4,346,419		4,242,678
Accumulated deficit	(1,854,800)		(1,452,259)
Accumulated other comprehensive income, net of tax	13,122		21,743
Total stockholders’ equity	3,968,073		4,275,463
Total equity	8,602,265		8,676,092
Total liabilities, redeemable interest, non-controlling interests and equity	$	29,631,399	$	28,633,369

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Operations

(Amounts in Thousands, Except Share Data)

(unaudited)


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Revenues
Management fees	$	1,017,563	$	900,622	$	2,007,090	$	1,717,609
Carried interest allocation	249,914		323,901		396,545		483,909
Incentive fees	42,753		23,079		204,687		55,127
Principal investment income	2,288		10,963		2,765		32,961
Administrative, transaction and other fees	116,092		91,563		213,959		149,327
Total revenues	1,428,610		1,350,128		2,825,046		2,438,933
Expenses
Compensation and benefits	688,660		643,709		1,381,067		1,300,834
Performance related compensation	231,927		234,706		460,263		357,339
General, administrative and other expenses	255,715		232,156		496,152		460,070

Expenses of Consolidated Funds	3,675		27,007		10,958		33,663
Total expenses	1,179,977		1,137,578		2,348,440		2,151,906
Other income (expense)
Net realized and unrealized gains on investments	72,710		12,708		76,099		12,976
Interest and dividend income	6,522		7,772		13,621		25,428
Interest expense	(52,195)		(43,575)		(102,955)		(79,962)
Other income (expense), net	(21,092)		(46,521)		3,468		(57,235)
Net realized and unrealized gains on investments of Consolidated Funds	176,396		127,752		310,412		216,158
Interest and other income of Consolidated Funds	59,123		161,890		164,568		321,962
Interest expense of Consolidated Funds	(104,155)		(145,638)		(242,956)		(298,378)
Total other income, net	137,309		74,388		222,257		140,949
Income before taxes	385,942		286,938		698,863		427,976
Income tax expense	72,977		60,958		132,849		78,495
Net income	312,965		225,980		566,014		349,481
Less: Net income attributable to non-controlling interests in Consolidated Funds	71,241		3,999		100,888		59,976
Net income attributable to Ares Operating Group entities	241,724		221,981		465,126		289,505
Less: Net income (loss) attributable to redeemable interest in Ares Operating Group entities	1,845		(274)		732		42
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	89,244		85,193		171,170		105,231
Net income attributable to Ares Management Corporation	150,635		137,062		293,224		184,232
Less: Series B mandatory convertible preferred stock dividends declared	25,312		25,312		50,625		50,625
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	125,323	$	111,750	$	242,599	$	133,607
Net income per share of Class A and non-voting common stock
Basic	$	0.49	$	0.46	$	0.95	$	0.48
Diluted	$	0.49	$	0.46	$	0.95	$	0.48
Weighted-average shares of Class A and non-voting common stock
Basic	226,304,870		218,915,599		225,175,788		214,158,085
Diluted	226,304,870		218,915,599		225,175,788		214,158,085

Substantially all revenue is earned from affiliated funds of the Company.

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Comprehensive Income

(Amounts in Thousands)

(unaudited)


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Net income	$	312,965	$	225,980	$	566,014	$	349,481
Foreign currency translation adjustments, net of tax	(1,870)		25,541		(13,832)		96,112
Total comprehensive income	311,095		251,521		552,182		445,593
Less: Comprehensive income attributable to non-controlling interests in Consolidated Funds	70,655		17,567		99,725		79,882
Less: Comprehensive income attributable to redeemable interest in Ares Operating Group entities	1,769		425		649		939
Less: Comprehensive income attributable to non-controlling interests in Ares Operating Group entities	88,903		88,615		167,205		130,587
Comprehensive income attributable to Ares Management Corporation	$	149,768	$	144,914	$	284,603	$	234,185

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)


	Series B Mandatory Convertible Preferred Stock		Class A Common Stock		Non-voting Common Stock		Class C Common Stock		Additional Paid-in-Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Non-Controlling Interest in Ares Operating Group Entities		Non-Controlling Interest in Consolidated Funds		Total Equity
Balance as of December 31, 2025	$	1,460,030	$	2,185	$	35	$	1,051	$	4,242,678	$	(1,452,259)	$	21,743	$	1,496,771	$	2,903,858	$	8,676,092
Changes in ownership interests and related tax benefits	—		34		—		(8)		(190,680)		—		—		(122,909)		(198,361)		(511,924)

Issuances of common stock	—		1		—		—		15,996		—		—		—		—		15,997

Capital contributions	—		—		—		—		—		—		—		13,727		321,956		335,683
Dividends/distributions	(25,313)		—		—		—		—		(321,588)		—		(175,554)		(79,832)		(602,287)
Net income	25,313		—		—		—		—		117,276		—		81,926		29,647		254,162
Currency translation adjustment, net of tax	—		—		—		—		—		—		(7,754)		(3,624)		(577)		(11,955)
Equity compensation	—		—		—		—		136,695		—		—		66,937		—		203,632
Balance as of March 31, 2026	1,460,030		2,220		35		1,043		4,204,689		(1,656,571)		13,989		1,357,274		2,976,691		8,359,400
Changes in ownership interests and related tax benefits	—		19		—		(15)		18,349		—		—		(33,147)		(17,216)		(32,010)

Capital contributions	—		—		—		—		—		—		—		—		302,078		302,078
Dividends/distributions	(25,312)		—		—		—		—		(323,552)		—		(164,897)		(5,547)		(519,308)
Net income	25,312		—		—		—		—		125,323		—		89,244		71,241		311,120
Currency translation adjustment, net of tax	—		—		—		—		—		—		(867)		(341)		(586)		(1,794)
Equity compensation	—		—		—		—		123,381		—		—		59,398		—		182,779
Balance as of June 30, 2026	$	1,460,030	$	2,239	$	35	$	1,028	$	4,346,419	$	(1,854,800)	$	13,122	$	1,307,531	$	3,326,661	$	8,602,265

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Changes in Equity

(Amounts in Thousands)

(unaudited)


	Series B Mandatory Convertible Preferred Stock		Class A Common Stock		Non-voting Common Stock		Class C Common Stock		Additional Paid-in-Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Non-Controlling Interest in Ares Operating Group Entities		Non-Controlling Interest in Consolidated Funds		Total Equity
Balance as of December 31, 2024	$	1,458,771	$	1,999	$	35	$	1,098	$	2,936,794	$	(837,294)	$	(17,757)	$	1,254,878	$	2,025,666	$	6,824,190

Changes in ownership interests and related tax benefits	—		47		—		(20)		(707,255)		—		—		354,253		(34,832)		(387,807)
Adjustment to issuance costs of Series B mandatory convertible preferred stock	1,147		—		—		—		—		—		—		—		—		1,147
Issuances of common stock	—		103		—		—		1,642,214		—		—		—		—		1,642,317
Issuances of AOG Units	—		—		—		3		—		—		—		15,561		—		15,564
Capital contributions	—		—		—		—		—		—		—		120		295,750		295,870
Dividends/distributions	(25,313)		—		—		—		—		(258,691)		—		(138,003)		(208,855)		(630,862)
Net income	25,313		—		—		—		—		21,857		—		20,038		55,977		123,185
Currency translation adjustment, net of tax	—		—		—		—		—		—		42,101		21,934		6,338		70,373
Equity compensation	—		—		—		—		168,955		—		—		88,907		—		257,862

Balance as of March 31, 2025	1,459,918		2,149		35		1,081		4,040,708		(1,074,128)		24,344		1,617,688		2,140,044		8,211,839

Changes in ownership interests and related tax benefits	—		10		—		(8)		(61,923)		—		—		(52,023)		243,432		129,488

Capital contributions	—		—		—		—		—		—		—		1,333		37,422		38,755

Dividends/distributions	(25,312)		—		—		—		—		(259,233)		—		(143,626)		(110,900)		(539,071)
Net income	25,312		—		—		—		—		111,750		—		85,193		3,999		226,254
Currency translation adjustment, net of tax	—		—		—		—		—		—		7,852		3,422		13,568		24,842
Equity compensation	—		—		—		—		109,276		—		—		55,815		—		165,091

Balance as of June 30, 2025	1,459,918		2,159		35		1,073		4,088,061		(1,221,611)		32,196		1,567,802		2,327,565		8,257,198

Changes in ownership interests and related tax benefits	—		8		—		(8)		4,834		—		—		(46,698)		27,846		(14,018)
Adjustment to issuance costs of Series B mandatory convertible preferred stock	840		—		—		—		—		—		—		—		—		840
Issuances of common stock	—		1		—		—		—		—		—		—		—		1
Capital contributions	—		—		—		—		—		—		—		1		121,076		121,077
Dividends/distributions	(25,313)		—		—		—		—		(260,640)		—		(137,725)		(29,264)		(452,942)
Net income	25,313		—		—		—		—		263,569		—		182,293		67,407		538,582
Currency translation adjustment, net of tax	—		—		—		—		—		—		(2,439)		(1,537)		(612)		(4,588)
Equity compensation	—		—		—		—		106,032		—		—		54,098		—		160,130

Balance as of September 30, 2025	1,460,758		2,168		35		1,065		4,198,927		(1,218,682)		29,757		1,618,234		2,514,018		8,606,280

Changes in ownership interests and related tax benefits	—		17		—		(14)		(60,991)		—		—		(16,291)		217,622		140,343
Issuance of Series B mandatory convertible preferred stock	(728)		—		—		—		—		—		—		—		—		(728)

Capital contributions	—		—		—		—		—		—		—		9		563,290		563,299
Dividends/distributions	(25,312)		—		—		—		—		(262,513)		—		(171,926)		(517,516)		(977,267)
Net income	25,312		—		—		—		—		28,936		—		18,219		126,521		198,988
Currency translation adjustment, net of tax	—		—		—		—		—		—		(8,014)		(4,198)		(77)		(12,289)
Equity compensation	—		—		—		—		104,742		—		—		52,724		—		157,466

Balance as of December 31, 2025	$	1,460,030	$	2,185	$	35	$	1,051	$	4,242,678	$	(1,452,259)	$	21,743	$	1,496,771	$	2,903,858	$	8,676,092

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Condensed Consolidated Statements of Cash Flows

(Amounts in Thousands)

(unaudited)


	Six months ended June 30,
	2026		2025
Cash flows from operating activities
Net income	$	566,014	$	349,481
Adjustments to reconcile net income to net cash provided by operating activities	614,650		462,314







Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	(1,021,132)		1,163,402




Cash flows due to changes in operating assets and liabilities	147,063		189,680





Cash flows due to changes in operating assets and liabilities allocable to redeemable and non-controlling interest in Consolidated Funds	(251,525)		245,027




Net cash provided by operating activities	55,070		2,409,904
Cash flows from investing activities
Purchase of furniture, equipment and leasehold improvements, net of disposals	(48,693)		(44,893)
Acquisitions, net of cash acquired	8,330		(1,722,715)
Net cash used in investing activities	(40,363)		(1,767,608)
Cash flows from financing activities


Proceeds from Credit Facility	955,000		1,525,000
Proceeds from Term Loan	399,415		—

Repayments of Credit Facility	(720,000)		(410,000)

Dividends and distributions	(1,036,513)		(873,259)





Taxes paid related to net share settlement of equity awards	(364,484)		(416,609)
Other financing activities	12,719		1,790
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	639,766		160,147
Distributions to non-controlling interests in Consolidated Funds	(85,379)		(319,756)
Redemptions of redeemable interests in Consolidated Funds	—		(7,143)
Borrowings under loan obligations by Consolidated Funds	1,648,487		312,491
Repayments under loan obligations by Consolidated Funds	(1,371,066)		(1,717,589)
Net cash provided by (used in) financing activities	77,945		(1,744,928)
Effect of exchange rate changes	(24,454)		104,312
Net change in cash and cash equivalents	68,198		(998,320)
Cash and cash equivalents, beginning of period	488,896		1,507,976
Cash and cash equivalents, end of period	$	557,094	$	509,656
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	15,997	$	1,657,881

See accompanying notes to the unaudited condensed consolidated financial statements.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

1. ORGANIZATION

Ares Management Corporation (the “Company”), a Delaware corporation, together with its subsidiaries, is a leading global alternative investment manager operating integrated groups across Credit, Real Assets, Secondaries and Private Equity. Information about segments should be read together with “Note 13. Segment Reporting.” Subsidiaries of the Company serve as the general partners and/or investment managers to various funds and managed accounts within each investment group (the “Ares Funds”). These subsidiaries provide investment advisory services to the Ares Funds in exchange for management fees.

The accompanying unaudited financial statements include the condensed consolidated results of the Company and its subsidiaries. The Company is a holding company that operates and controls all of the businesses and affairs of and conducts all of its material business activities through Ares Holdings L.P. (“Ares Holdings”). Ares Holdings represents all the activities of the “Ares Operating Group” or “AOG” and may be referred to interchangeably. The Company, indirectly through its wholly owned subsidiary, Ares Holdco LLC, is the general partner of the Ares Operating Group entity.

The Company manages or controls certain entities that have been consolidated in the accompanying financial statements as described in “Note 2. Summary of Significant Accounting Policies.” These entities include Ares Funds, co-investment vehicles, structured financing vehicles, collateralized loan obligations (“CLOs”) and special purpose acquisition companies (“SPACs”) (collectively, the “Consolidated Funds”).

Including the results of the Consolidated Funds significantly increases the reported amounts of the assets, liabilities, revenues, expenses and cash flows within the accompanying unaudited condensed consolidated financial statements. However, the Consolidated Funds results included herein have no direct effect on the net income attributable to Ares Management Corporation or to its stockholders’ equity, except where accounting for a redemption or liquidation preference requires the reallocation of ownership based on specific terms of a profit sharing agreement. Instead, economic ownership interests of the investors in the Consolidated Funds are reflected as redeemable and non-controlling interests in Consolidated Funds. Further, cash flows allocable to redeemable and non-controlling interest in Consolidated Funds are specifically identifiable within the Condensed Consolidated Statements of Cash Flows.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“U.S.”) (“GAAP”) for interim financial information and instructions to the Quarterly Report on Form 10-Q. The unaudited condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments so that the unaudited condensed consolidated financial statements are presented fairly and that estimates made in preparing its unaudited condensed consolidated financial statements are reasonable and prudent, and that all such adjustments are of a normal recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”).

The unaudited condensed consolidated financial statements include the accounts and activities of the Ares Operating Group entities (“AOG entities”), their consolidated subsidiaries and certain Consolidated Funds. All intercompany balances and transactions have been eliminated upon consolidation.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on its unaudited condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disaggregated disclosure of certain expenses in the notes to the consolidated financial statements, including purchases of

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

inventory, employee compensation, depreciation and intangible asset amortization. The amendments in this update also require disclosure of: (i) the expense captions from the Condensed Consolidated Statements of Operations that include each of the relevant expense categories; (ii) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and (iii) total selling expenses and a definition of such expenses. ASU 2024-03 is effective for the Company’s fiscal year ending December 31, 2027. Early adoption is permitted and the amendments in this update may be applied on a prospective or retrospective basis. The Company is currently evaluating the impact of this guidance.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 clarifies the threshold for capitalizing internal-use software costs to be based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 is effective for the Company’s fiscal year ending December 31, 2028. Early adoption is permitted and the amendments in this update may be applied on a prospective, retrospective or modified basis. The Company is currently evaluating the impact of this guidance.

3. GOODWILL AND INTANGIBLE ASSETS

Intangible Assets, Net

The following table summarizes the carrying value, net of accumulated amortization, of the Company’s intangible assets:



	Weighted Average Amortization Period (in years) as of June 30, 2026		As of June 30,			As of December 31,
		2026			2025
Management contracts	4.4		$	898,247		$	1,023,893
Client relationships	6.3		317,920			317,920

Other	4.6		12,054			—
Finite-lived intangible assets			1,228,221			1,341,813
Foreign currency translation			6,886			6,884
Total finite-lived intangible assets			1,235,107			1,348,697
Less: accumulated amortization			(504,330)			(550,267)
Finite-lived intangible assets, net			730,777			798,430
Management contracts			1,364,245			1,317,400

Indefinite-lived management contracts			1,364,245			1,317,400
Intangible assets, net			$	2,095,022		$	2,115,830

On February 1, 2026, the Company completed the acquisition of the remaining outstanding shares of BlueCove Limited (“BlueCove”) (the “BlueCove Acquisition”). Prior to completing the BlueCove Acquisition, the Company held a 15% ownership interest in BlueCove. BlueCove is a London-based systematic fixed income manager that leverages data and technology to deliver differentiated solutions to investors. BlueCove’s results are presented within the Credit Group. The Company allocated $60.8 million and $12.1 million of the purchase consideration to the fair value of the acquired management contracts and developed technology, respectively. Certain management contracts were determined to have indefinite useful lives at the time of the BlueCove Acquisition and are not subject to amortization. The remaining management contracts and developed technology had a weighted average amortization period from the date of acquisition of 10.0 years and 5.0 years, respectively.

Amortization expense associated with intangible assets was $47.5 million and $52.7 million for the three months ended June 30, 2026 and 2025, respectively, and $94.6 million and $90.0 million for the six months ended June 30, 2026 and 2025, respectively, and has been presented within general, administrative and other expenses within the Condensed Consolidated Statements of Operations. During the six months ended June 30, 2026, the Company removed $139.6 million of fully-amortized cost basis of intangible assets.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Goodwill

The following table summarizes the carrying value of the Company’s goodwill:


	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Total




Balance as of December 31, 2025	$	313,830	$	2,601,229	$	417,640	$	121,408	$	3,454,107
Acquisitions	—		10,359		—		—		10,359

Foreign currency translation	(1,086)		912		(3)		—		(177)
Balance as of June 30, 2026	$	312,744	$	2,612,500	$	417,637	$	121,408	$	3,464,289

There was no impairment of goodwill recorded during the three and six months ended June 30, 2026 and 2025. The impact of foreign currency translation adjustments is reflected within the Condensed Consolidated Statements of Comprehensive Income.

In connection with the BlueCove Acquisition, the Company recorded a bargain purchase gain of $37.3 million during the six months ended June 30, 2026, which has been presented within other income (expense), net in the Condensed Consolidated Statements of Operations. The bargain purchase gain resulted from the fair value of the identifiable tangible and intangible assets acquired exceeding the purchase consideration. A portion of the purchase price payable to certain senior professionals is dependent upon the achievement of revenue targets and has been excluded from purchase consideration as it is subject to continued and future service. See “Note 7. Commitments and Contingencies” for further information.

4. INVESTMENTS

The following table summarizes the Company’s investments:


	As of				Percentage of total investments as of

	June 30,		December 31,		June 30,	December 31,
	2026		2025		2026	2025
Equity method investments
Equity method - carried interest(1)	$	4,141,111	$	3,972,748	74.7%	72.1%
Equity method private investment partnership interests - principal	425,655		526,372		7.7	9.6
Equity method private investment partnership interests and other (held at fair value)	249,885		675,777		4.5	12.3
Equity method private investment partnership interests and other	52,489		61,306		0.9	1.1
Total equity method investments	4,869,140		5,236,203		87.8	95.1
Collateralized loan obligations	5,398		13,217		0.1	0.2
Fixed income securities	12,173		11,252		0.2	0.2
Collateralized loan obligations and fixed income securities, at fair value	17,571		24,469		0.3	0.4
Common stock and other equity securities, at fair value	659,544		247,775		11.9	4.5
Total investments	$	5,546,255	$	5,508,447

(1)Includes carried interest held at fair value of $43.1 million and $118.1 million as of June 30, 2026 and December 31, 2025, respectively.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Equity Method Investments

The Company’s equity method investments include investments that are not consolidated but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any are significant as defined by guidance from the SEC. As of and for the three and six months ended June 30, 2026 and 2025, no individual equity method investment held by the Company met the significance criteria.

The following table presents the Company’s share of net investment income and changes in fair value of its equity method investments, which are included within principal investment income, net realized and unrealized gains on investments, and interest and dividend income within the Condensed Consolidated Statements of Operations:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Equity method private investment partnership interests - principal, net investment income	$	2,290	$	10,760	$	2,765	$	32,960
Equity method private investment partnership interests and other, net investment income	(3,146)		2,685		(5,702)		5,173
Equity method private investment partnership interests and other (held at fair value), net investment income	2,112		2,243		4,118		4,238
Equity method private investment partnership interests and other (held at fair value), changes in fair value	9,203		4,015		42,862		8,296

With respect to the Company’s equity method investments, the material assets are expected to generate either long term capital appreciation and/or interest and dividend income, the material liabilities are debt instruments collateralized by, or related to, the financing of the assets and net income is materially comprised of the changes in fair value of these net assets.

Investments of the Consolidated Funds

The following table summarizes investments held in the Consolidated Funds:


	Fair Value as of				Percentage of total investments as of

	June 30,		December 31,		June 30,	December 31,
	2026		2025		2026	2025
Fixed income investments
Loans and securitization vehicles	$	4,300,046	$	5,507,199	32.1%	42.9%

Bonds	239,643		280,911		1.8	2.2
Total fixed income investments	4,539,689		5,788,110		33.9	45.1
Partnership interests	4,643,853		3,791,056		34.7	29.6
Equity securities	4,209,805		3,265,720		31.4	25.4
Total investments, at fair value	$	13,393,347	$	12,844,886

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

5. FAIR VALUE

Fair Value of Financial Instruments Held by the Company and Consolidated Funds

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of June 30, 2026:


Financial Instruments of the Company	Level I		Level II		Level III		Total
Assets, at fair value


Investments:
Common stock, other equity securities and equity method investments	$	613,269	$	46,275	$	249,885	$	909,429
Common stock and other equity securities - carried interest	31,750		—		11,375		43,125
Collateralized loan obligations and fixed income securities	—		—		17,571		17,571

Total investments, at fair value	645,019		46,275		278,831		970,125
Derivatives-foreign currency forward contracts	—		4,950		—		4,950
Total assets, at fair value	$	645,019	$	51,225	$	278,831	$	975,075
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(446)	$	—	$	(446)
Contingent consideration	—		—		(793,790)		(793,790)
Total liabilities, at fair value	$	—	$	(446)	$	(793,790)	$	(794,236)


Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Loans and securitization vehicles	$	—	$	4,136,213	$	163,833	$	—	$	4,300,046

Bonds	—		239,643		—		—		239,643

Total fixed income investments	—		4,375,856		163,833		—		4,539,689
Partnership interests	—		—		—		4,643,853		4,643,853
Equity securities	—		533,562		3,676,243		—		4,209,805
Total investments, at fair value	—		4,909,418		3,840,076		4,643,853		13,393,347




Total assets, at fair value	$	—	$	4,909,418	$	3,840,076	$	4,643,853	$	13,393,347
Liabilities, at fair value
Loan obligations of CLOs	$	—	$	(6,951,657)	$	—	$	—	$	(6,951,657)





Total liabilities, at fair value	$	—	$	(6,951,657)	$	—	$	—	$	(6,951,657)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables summarize the financial assets and financial liabilities measured at fair value for the Company and the Consolidated Funds as of December 31, 2025:


Financial Instruments of the Company	Level I		Level II		Level III		Total
Assets, at fair value


Investments:
Common stock, other equity securities and equity method investments	$	152,163	$	95,612	$	675,777	$	923,552
Common stock and other equity securities - carried interest	68,250		—		49,813		118,063
Collateralized loan obligations and fixed income securities	—		—		24,469		24,469

Total investments, at fair value	220,413		95,612		750,059		1,066,084
Derivatives-foreign currency forward contracts	—		18,230		—		18,230
Total assets, at fair value	$	220,413	$	113,842	$	750,059	$	1,084,314
Liabilities, at fair value
Derivatives-foreign currency forward contracts	$	—	$	(2,627)	$	—	$	(2,627)
Contingent consideration	—		—		(765,370)		(765,370)
Total liabilities, at fair value	$	—	$	(2,627)	$	(765,370)	$	(767,997)


Financial Instruments of the Consolidated Funds	Level I		Level II		Level III		Investments Measured at NAV		Total
Assets, at fair value
Investments:
Fixed income investments:
Loans and securitization vehicles	$	—	$	4,873,684	$	633,515	$	—	$	5,507,199

Bonds	—		280,911		—		—		280,911
Total fixed income investments	—		5,154,595		633,515		—		5,788,110
Partnership interests	—		—		—		3,791,056		3,791,056
Equity securities	—		262,271		3,003,449		—		3,265,720
Total investments, at fair value	—		5,416,866		3,636,964		3,791,056		12,844,886

Derivatives-foreign currency forward contracts	—		4,889		—		—		4,889


Total assets, at fair value	$	—	$	5,421,755	$	3,636,964	$	3,791,056	$	12,849,775
Liabilities, at fair value
Loan obligations of CLOs	$	—	$	(7,359,072)	$	—	$	—	$	(7,359,072)


Derivatives-foreign currency forward contracts	—		(4,842)		—		—		(4,842)
Derivatives-asset swaps	—		—		(114)		—		(114)

Total liabilities, at fair value	$	—	$	(7,363,914)	$	(114)	$	—	$	(7,364,028)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables set forth a summary of changes in the fair value of the Level III measurements:


Level III Assets and (Liabilities) of the Company	Equity Securities		Fixed Income		Contingent Consideration		Total
Balance as of March 31, 2026	$	692,147	$	22,813	$	(780,353)	$	(65,393)


Transfer out(1)	(434,622)		—		—		(434,622)
Purchases(2)	1,766		921		—		2,687
Change in fair value	—		—		(13,760)		(13,760)
Sales/settlements(3)	—		(7,878)		323		(7,555)
Realized and unrealized appreciation, net	1,969		1,715		—		3,684
Balance as of June 30, 2026	$	261,260	$	17,571	$	(793,790)	$	(514,959)
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	(42,687)	$	1,330	$	(13,760)	$	(55,117)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of March 31, 2026	$	3,414,814	$	266,169	$	65	$	3,681,048

Transfer in(1)	—		24,897		—		24,897
Transfer out(1)	—		(112,758)		—		(112,758)
Purchases(2)	180,000		41,569		—		221,569
Sales/settlements(3)	—		(54,493)		(118)		(54,611)
Realized and unrealized appreciation (depreciation), net	81,429		(1,551)		53		79,931
Balance as of June 30, 2026	$	3,676,243	$	163,833	$	—	$	3,840,076
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	81,429	$	(723)	$	—	$	80,706

(1)Transfers in and out include changes in the observability of inputs used in valuations and changes due to the consolidation and deconsolidation of funds. (2)Purchases include paid-in-kind interest and securities received in connection with restructurings. (3)Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.


Level III Assets and (Liabilities) of the Company	Equity Securities		Fixed Income		Contingent Consideration		Total
Balance as of March 31, 2025	$	426,377	$	18,662	$	(484,954)	$	(39,915)


Transfer in(1)	—		10,004		—		10,004
Transfer out(1)	(10,000)		—		—		(10,000)
Purchases(2)	—		35,641		—		35,641
Sales/settlements(3)	—		(14,780)		—		(14,780)
Change in fair value	—		—		(25,536)		(25,536)
Realized and unrealized appreciation, net	5,061		884		—		5,945
Balance as of June 30, 2025	$	421,438	$	50,411	$	(510,490)	$	(38,641)
Change in net unrealized appreciation/depreciation and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	5,061	$	1,417	$	(25,536)	$	(19,058)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of March 31, 2025	$	1,844,907	$	580,992	$	(749)	$	2,425,150

Transfer in(1)	—		85,051		—		85,051
Transfer out(1)	—		(78,800)		—		(78,800)
Purchases(2)	90,043		197,191		1		287,235
Sales/settlements(3)	(29)		(286,046)		—		(286,075)
Realized and unrealized appreciation, net	69,422		2,661		28		72,111
Balance as of June 30, 2025	$	2,004,343	$	501,049	$	(720)	$	2,504,672
Change in net unrealized appreciation/depreciation included in earnings related to financial assets and liabilities still held at the reporting date	$	69,396	$	(244)	$	92	$	69,244

(1)Transfers in and out include changes in the observability of inputs used in valuations and changes due to the consolidation and deconsolidation of funds. (2)Purchases include paid-in-kind interest and securities received in connection with restructurings. (3)Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


Level III Assets and (Liabilities) of the Company	Equity Securities		Fixed Income		Contingent Consideration		Total
Balance as of December 31, 2025	$	725,590	$	24,469	$	(765,370)	$	(15,311)
Established in connection with acquisition (see Note 7)	—		—		(713)		(713)
Transfer in(1)	—		209		—		209
Transfer out(1)	(468,866)		—		—		(468,866)
Purchases(2)	1,816		921		—		2,737
Sales/settlements(3)	—		(8,578)		323		(8,255)
Change in fair value	—		—		(28,030)		(28,030)
Realized and unrealized appreciation, net	2,720		550		—		3,270
Balance as of June 30, 2026	$	261,260	$	17,571	$	(793,790)	$	(514,959)
Change in net unrealized appreciation/(depreciation) and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	(38,222)	$	133	$	(28,030)	$	(66,119)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of December 31, 2025	$	3,003,449	$	633,515	$	(114)	$	3,636,850
Transfer in(1)	—		139,004		—		139,004
Transfer out(1)	(3,326)		(556,640)		—		(559,966)
Purchases(2)	483,224		89,291		—		572,515
Sales/settlements(3)	(4,234)		(126,107)		(468)		(130,809)
Realized and unrealized appreciation (depreciation), net	197,130		(15,230)		582		182,482
Balance as of June 30, 2026	$	3,676,243	$	163,833	$	—	$	3,840,076
Change in net unrealized appreciation/(depreciation) included in earnings related to financial assets and liabilities still held at the reporting date	$	195,735	$	(5,770)	$	—	$	189,965

(1)Transfers in and out include changes in the observability of inputs used in valuations and changes due to the consolidation and deconsolidation of funds. (2)Purchases include paid-in-kind interest and securities received in connection with restructurings. (3)Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.



Level III Assets and (Liabilities) of the Company	Equity Securities		Fixed Income		Contingent Consideration		Total
Balance as of December 31, 2024	$	411,179	$	41,833	$	(17,550)	$	435,462

Established in connection with acquisition (see Note 7)	—		—		(465,080)		(465,080)
Transfer in(1)	—		10,004		—		10,004
Transfer out(1)	(10,000)		—		—		(10,000)
Purchases(2)	10,546		37,171		—		47,717
Sales/settlements(3)	—		(38,437)		—		(38,437)
Change in fair value	—		—		(27,860)		(27,860)
Realized and unrealized appreciation (depreciation), net	9,713		(160)		—		9,553
Balance as of June 30, 2025	$	421,438	$	50,411	$	(510,490)	$	(38,641)
Change in net unrealized appreciation/(depreciation) and fair value included in earnings related to financial assets and liabilities still held at the reporting date	$	9,713	$	1,046	$	(27,860)	$	(17,101)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


Level III Net Assets of Consolidated Funds	Equity Securities		Fixed Income		Derivatives, Net		Total
Balance as of December 31, 2024	$	1,829,927	$	593,817	$	(1,846)	$	2,421,898

Transfer in(1)	1		167,529		—		167,530
Transfer out(1)	—		(151,064)		—		(151,064)
Purchases(2)	90,327		445,050		124		535,501
Sales/settlements(3)	(118)		(553,791)		—		(553,909)

Realized and unrealized appreciation (depreciation), net	84,206		(492)		1,002		84,716
Balance as of June 30, 2025	$	2,004,343	$	501,049	$	(720)	$	2,504,672
Change in net unrealized appreciation/(depreciation) included in earnings related to financial assets and liabilities still held at the reporting date	$	84,510	$	(873)	$	973	$	84,610

(1)Transfers in and out include changes in the observability of inputs used in valuations and changes due to the consolidation and deconsolidation of funds. (2)Purchases include paid-in-kind interest and securities received in connection with restructurings. (3)Sales/settlements include distributions, principal redemptions and securities disposed of in connection with restructurings.

Transfers out of Level III were generally attributable to certain investments that experienced a more significant level of market activity during the period and thus were valued using observable inputs either from independent pricing services or multiple brokers. Transfers into Level III were generally attributable to certain investments that experienced a less significant level of market activity during the period and thus were only able to obtain one or fewer quotes from a broker or independent pricing service.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of June 30, 2026:


Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average(1)
Assets
Equity securities
	$	89,518	Market approach	Multiple of book value	0.5x - 1.5x	1.3x
	39,108		Discounted cash flow	Discount rate	11.0% - 15.0%	13.0%
	35,615		Option pricing model	Volatility	20.0% - 52.5%	26.9%
	33,879		Income approach	Credit spread	3.0% - 4.5%	3.6%
	33,879		Market approach	N/A	N/A	N/A
	16,183		Market approach	EBITDA multiple(2)	2.7x-10.0x	9.9x
	13,078		Monte Carlo simulation	Volatility	57.5%	57.5%

Fixed income investments
	12,173		Market yield analysis	Market interest rate	16.0%	16.0%
	5,398		Broker quotes and/or third-party pricing services	N/A	N/A	N/A

Total assets	$	278,831
Liabilities
Contingent consideration	$	(793,790)	Monte Carlo simulation	Discount rate	5.8% - 6.6%	5.8%
				Volatility	10.0% - 11.1%	10.0%
Total liabilities	$	(793,790)


Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average(1)
Assets
Equity securities
	$	1,341,920	Discounted cash flow	Discount rate	9.0% - 13.0%	11.0%
	1,272,981		Market approach	Multiple of book value	1.0x - 1.7x	1.4x
	1,061,342		Market approach	EBITDA multiple(2)	14.7x - 25.4x	19.1x


Fixed income investments
	161,463		Broker quotes and/or third-party pricing services	N/A	N/A	N/A
	1,585		Market approach	Yield	7.9% -12.2%	9.4%
	785		Discounted cash flow	Discount rate	12.2%	12.2%


Total assets	$	3,840,076

(1)Unobservable inputs were weighted by the relative fair value of the investments included in the range.

(2)“EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables summarize the quantitative inputs and assumptions used for the Company’s and the Consolidated Funds’ Level III measurements as of December 31, 2025:


Level III Measurements of the Company	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average(1)
Assets
Equity securities
	$	307,942	Transaction price	N/A	N/A	N/A
	100,000		Market yield analysis	Market interest rate	8.0%	8.0%
	84,737		Market approach	Multiple of book value	0.6x - 1.5x	1.2x
	81,905		Option pricing model	Volatility	50.0%	50.0%
	59,136		Discounted cash flow	Discount rate	11.0% - 17.0%	14.0%

	58,060		Monte Carlo simulation	Volatility	52.5%	52.5%

	33,810		Market approach	EBITDA multiple(2)	11.0x - 13.0x	11.8x


Fixed income investments
	13,217		Broker quotes and/or third-party pricing services	N/A	N/A	N/A
	11,252		Market yield analysis	Market interest rate	16.5%	16.5%

Total assets	$	750,059
Liabilities
Contingent consideration	$	(765,370)	Monte Carlo simulation	Discount rate	5.8% - 6.6%	5.8%

				Volatility	10.0% - 11.1%	10.0%
Total liabilities	$	(765,370)


Level III Measurements of the Consolidated Funds	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range	Weighted Average(1)
Assets
Equity securities
	$	1,295,564	Discounted cash flow	Discount rate	9.0% - 20.0%	11.0%
	1,078,401		Market approach	Multiple of book value	1.0x - 1.7x	1.3x
	350,000		Transaction price	N/A	N/A	N/A
	278,992		Market approach	EBITDA multiple(2)	5.4x - 33.0x	13.9x
	492		Market approach	Yield	10.5% - 14.0%	11.5%


Fixed income investments
	370,588		Market approach	Yield	6.1% - 14.0%	9.2%
	232,261		Broker quotes and/or third-party pricing services	N/A	N/A	N/A


	29,484		Transaction price	N/A	N/A	N/A
	1,182		Discounted cash flow	Discount rate	12.2% - 20.0%	12.3%

Total assets	$	3,636,964
Liabilities
Derivative instruments	$	(114)	Broker quotes and/or third-party pricing services	N/A	N/A	N/A
Total liabilities	$	(114)

(1)Unobservable inputs were weighted by the relative fair value of the investments included in the range.

(2)“EBITDA” in the table above is a non-GAAP financial measure and refers to earnings before interest, tax, depreciation and amortization.

The Consolidated Funds have limited partnership interests in private equity funds managed by the Company that are valued using net asset value (“NAV”) per share. The terms and conditions of these funds do not allow for redemptions without certain events or approvals that are outside the Company’s control, and the timing of liquidation is unknown.

The following table summarizes the investments held at fair value and unfunded commitments of the Consolidated Funds interests valued using NAV per share:




	As of June 30, 2026		As of December 31, 2025
Investments (held at fair value)	$	4,643,853	$	3,791,056
Unfunded commitments	4,115,398		3,658,819

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

6. DEBT

The following table summarizes the Company’s and its subsidiaries’ debt obligations:


		As of June 30, 2026						As of December 31, 2025


	Original Borrowing Amount	Carrying Value		Fair Value(1)		Interest Rate		Carrying Value		Fair Value(1)		Interest Rate
Credit Facility maturing on 5/21/2031(2)	N/A	$	1,615,000	$	1,615,000	4.52	%	$	1,380,000	$	1,380,000	4.86	%
Senior notes due 11/10/2028(3)	500,000	497,343		516,980		6.42		496,785		529,140		6.42
Senior notes due 6/15/2030(4)	400,000	398,182		373,904		3.28		397,954		379,280		3.28
Senior notes due 2/1/2052(5)	500,000	485,219		343,785		3.77		485,011		348,840		3.77
Senior notes due 10/11/2054(6)	750,000	736,534		676,583		5.65		736,355		709,073		5.65
Subordinated notes due 6/30/2051(7)	450,000	445,401		448,983		4.16		445,310		443,943		4.13
Term Loan due 3/27/2029(8)	400,000	399,480		400,000		4.67		N/A		N/A		N/A
Total debt obligations		$	4,577,159	$	4,375,235			$	3,941,415	$	3,790,276

(1)The senior notes and subordinated notes would be classified as Level II within the fair value hierarchy and fair value is based on quoted prices in inactive markets.

(2)In May 2026, the Company amended its revolving credit facility (the “Credit Facility”) to, among other things: (i) extend the maturity from April 22, 2030 to May 21, 2031; (ii) increase commitments from $1.84 billion, with an accordion feature of $660.0 million, to $2.50 billion with an accordion feature of $500.0 million; and (iii) remove the credit spread adjustment for Secured Overnight Financing Rate (“SOFR”). The Credit Facility has a variable interest rate based on SOFR or a base rate plus an applicable margin, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of June 30, 2026, base rate loans bear interest calculated based on the prime rate and the SOFR loans bear interest calculated based on SOFR plus 0.90%. The unused commitment fee is 0.09% per annum. The Credit Facility has a base rate and SOFR floor of zero.

(3)The senior notes were issued by the Company at 99.80% of the face amount with interest paid semi-annually. The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(4)The senior notes were issued by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(5)The senior notes were issued by Ares Finance Co. IV LLC, an indirect subsidiary of the Company, at 97.78% of the face amount with interest paid semi-annually. The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(6)The senior notes were issued by the Company at 99.24% of the face amount with interest paid semi-annually. The Company may redeem the senior notes prior to maturity, subject to the terms of the indenture governing the senior notes.

(7)The subordinated notes were issued by Ares Finance Co. III LLC, an indirect subsidiary of the Company with interest paid semi-annually at a fixed rate of 4.125%. On June 30, 2026, the interest rate reset to 7.357% and will continue to reset on every fifth year based on the five-year U.S. Treasury Rate plus 3.237%. The Company may redeem the subordinated notes prior to maturity or defer interest payments up to five consecutive years, subject to the terms of the indenture governing the subordinated notes.

(8)The Term Loan has a variable interest rate based on SOFR plus an applicable margin, which is subject to change with the Company’s underlying credit agency rating. As of June 30, 2026, the SOFR loan bears interest calculated based on SOFR plus 1.00%. The Term Loan has a SOFR floor of zero.

As of June 30, 2026, the Company and its subsidiaries were in compliance with all covenants under the debt obligations.

The Company typically incurs and pays debt issuance costs when entering into a new debt obligation or when amending an existing debt agreement. Debt issuance costs related to the various senior notes (the “Senior Notes”), the subordinated notes (the “Subordinated Notes”) and the Term Loan (collectively, the “Term Debt Obligations”) are recorded as a reduction of the corresponding debt obligation, and debt issuance costs related to the Credit Facility are included within other assets within the Condensed Consolidated Statements of Financial Condition. All debt issuance costs are amortized over the remaining term of the related obligation into interest expense within the Condensed Consolidated Statements of Operations.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents the activity of the Company’s debt issuance costs:


	Credit Facility		Term Debt Obligations



Unamortized debt issuance costs as of December 31, 2025	$	5,760	$	21,682
Debt issuance costs incurred	2,679		585
Amortization of debt issuance costs	(696)		(1,030)
Unamortized debt issuance costs as of June 30, 2026	$	7,743	$	21,237

Loan Obligations of the Consolidated CLOs

Loan obligations of the Consolidated Funds that are CLOs and other financing obligations (“Consolidated CLOs”) represent amounts due to holders of debt securities issued by the Consolidated CLOs. The Company measures the loan obligations of the Consolidated CLOs using the fair value of the financial assets of its Consolidated CLOs.

The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs:


	As of June 30, 2026				As of December 31, 2025


	Fair Value of Loan Obligations		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)	Fair Value of Loan Obligations		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)
Senior secured notes	$	6,171,017	5.44%	9.2	$	6,561,286	5.19%	9.0
Subordinated notes(1)	780,640		N/A	10.5	797,786		N/A	10.4
Total loan obligations of Consolidated CLOs	$	6,951,657			$	7,359,072

(1)The notes do not have contractual interest rates; instead, holders of the notes receive a variable rate of interest amounting to the excess cash flows generated by each Consolidated CLO.

Loan obligations of the Consolidated CLOs are collateralized by the assets held by the Consolidated CLOs, consisting of cash and cash equivalents, corporate loans and corporate bonds, among other securities and financial interests. The assets of one Consolidated CLO may not be used to satisfy the liabilities of another Consolidated CLO. Loan obligations of the Consolidated CLOs include floating rate notes, deferrable floating rate notes, revolving lines of credit and subordinated notes. Amounts borrowed under the notes are repaid based on available cash flows subject to priority of payments under each Consolidated CLO’s governing documents. Based on the terms of these facilities, the creditors of the facilities have no recourse to the Company.

Credit Facilities of the Consolidated Funds

Certain Consolidated Funds maintain credit facilities to fund investments between capital drawdowns. These facilities generally are collateralized by the net assets of the Consolidated Funds or the unfunded capital commitments of the Consolidated Funds’ limited partners, bear an annual commitment fee based on unfunded commitments and contain various affirmative and negative covenants and reporting obligations, including restrictions on additional indebtedness, liens, margin stock, affiliate transactions, dividends and distributions, release of capital commitments and portfolio asset dispositions. The creditors of these facilities only have recourse to the Company to the extent the debt is guaranteed by the Company. As of June 30, 2026 and December 31, 2025, the Consolidated Funds were in compliance with all covenants under such credit facilities.

The Consolidated Funds had the following credit facilities outstanding:


	As of June 30, 2026								As of December 31, 2025


	Total Capacity		Outstanding Loan		Fair Value		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)	Total Capacity		Outstanding Loan		Fair Value		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)
Credit Facilities(1)	$	4,677,635	$	2,531,196	$	2,531,196	5.77%	4.2	$	4,878,724	$	2,251,780	$	2,251,780	5.95%	3.4

(1)The credit facilities have varying maturities and bear interest at spreads to market rates or at stated fixed rates. The fair values of floating-rate borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate and would be classified within Level II of the fair value hierarchy. The fair values of fixed rate borrowings would be classified within Level III of the fair value hierarchy.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

7. COMMITMENTS AND CONTINGENCIES

Indemnification Arrangements

Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain indemnities for affiliates of the Company, persons acting on behalf of the Company or such affiliates and third parties. The terms of the indemnities vary from contract to contract and the Company’s maximum exposure under these arrangements cannot be determined and has not been recorded within the Condensed Consolidated Statements of Financial Condition. As of June 30, 2026, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

Commitments

As of June 30, 2026 and December 31, 2025, the Company had aggregate unfunded commitments to invest in funds it manages or to support certain strategic initiatives of $1,635.5 million and $1,172.9 million, respectively.

Guarantees

As of June 30, 2026 and December 31, 2025, the Company’s maximum exposure to losses from guarantees was $7.3 million and $7.1 million, respectively. The guarantee agreements that the Company enters into with financial institutions are primarily to guarantee credit facilities held by certain funds. In the ordinary course of business, the guarantee of credit facilities held by funds may indicate control and result in consolidation of the fund.

Contingent Earnout Arrangements

GCP International

In connection with the acquisition of the international business of GLP Capital Partners Limited excluding its operations in Greater China (“GCP International”) (the “GCP Acquisition”) during the first quarter of 2025, the Company established two arrangements with the sellers and with certain of its professionals that became employees of the Company, including (i) an earnout arrangement related to the data center business (“DC Earnout”) based on the achievement of revenue targets of certain digital infrastructure funds; and (ii) an earnout arrangement related to the Japan business (“Japan Earnout”) based on the achievement of fundraising targets of certain Japanese real estate funds. The DC Earnout and Japan Earnout represent contingent liabilities not to exceed $1.0 billion and $0.5 billion, respectively. The Company expects to settle the contingent liabilities at the Company’s discretion with no less than 15.0% cash and the remaining balance in equity awards.

The portion of the DC Earnout and Japan Earnout attributable to the sellers represents a component of purchase consideration that will be accounted for as contingent consideration. The contingent liabilities are subject to change over the measurement periods, which will end no later than June 30, 2028. As of June 30, 2026 and December 31, 2025, the fair value of the contingent liabilities was $791.0 million and $763.0 million, respectively, and was recorded within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition. For the three and six months ended June 30, 2026, changes in fair value of $13.6 million and $27.9 million, respectively, and $25.5 million for both the three and six months ended June 30, 2025 are presented within other income (expense), net within the Condensed Consolidated Statements of Operations.

The portion of the DC Earnout and Japan Earnout attributable to the professionals that became employees of the Company requires continued service through the measurement periods. The DC Earnout and Japan Earnout are remeasured each period with incremental changes in fair value for the cash and equity components of these liabilities recognized within compensation and benefits expense within the Condensed Consolidated Statements of Operations. Following the measurement period end dates, the cash components will be paid and the equity awards will be granted at fair value for the balance of the liability. As of June 30, 2026 and December 31, 2025, the fair value of the contingent liabilities was $339.0 million and $327.0 million, respectively, of which $113.8 million and $70.1 million, respectively, has been recorded within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense of $22.2 million and $13.7 million for the three months ended June 30, 2026 and 2025, respectively, and $43.7 million and $18.0 million for the six months ended June 30, 2026 and 2025, respectively, is presented within compensation and benefits within the Condensed Consolidated Statements of Operations. The unpaid liabilities at the respective measurement period end dates will be reclassified from liability to additional paid-in-capital. Any compensation expense associated with the DC Earnout and Japan

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Earnout that was not previously recorded through the final measurement period end date will be recognized as equity-based compensation expense over the remaining service periods ranging from three to six years, measured from the GCP Acquisition close date.

Other Arrangements

The Company also entered into various other contingent earnout arrangements in connection with acquisitions. The maximum exposure for the contingent earnout arrangements was $351.7 million and $175.0 million as of June 30, 2026 and December 31, 2025, respectively.

As of June 30, 2026 and December 31, 2025, the fair value of these contingent liabilities attributable to employees was $116.5 million and $24.2 million, respectively, of which $20.4 million and $7.8 million, respectively, has been recorded within accrued compensation within the Condensed Consolidated Statements of Financial Condition. Compensation expense of $6.0 million and $7.7 million for the three months ended June 30, 2026 and 2025, respectively, and $12.5 million and $14.7 million for the six months ended June 30, 2026 and 2025, respectively, is presented within compensation and benefits within the Condensed Consolidated Statements of Operations.

The remaining portions of these contingent earnout arrangements were classified as contingent consideration. As of June 30, 2026 and December 31, 2025, the fair value of these contingent liabilities was $2.4 million and $2.3 million, respectively, and has been recorded within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition. There was no change in fair value during the three months ended June 30, 2026. Changes in fair value of $0.1 million for the six months ended June 30, 2026, and $0.1 million and $0.2 million for the three and six months ended June 30, 2025, respectively, are presented within other income (expense), net within the Condensed Consolidated Statements of Operations.

Carried Interest

Carried interest is affected by changes in the fair values of the underlying investments in the funds that are advised by the Company. Valuations, on an unrealized basis, can be significantly affected by a variety of external factors including, but not limited to, public equity market volatility, industry trading multiples and interest rates. Generally, if at the termination of a fund (and increasingly at interim points in the life of a fund), the fund has not achieved investment returns that exceed the preferred return threshold or the general partner has received net profits over the life of the fund in excess of its allocable share under the applicable partnership agreement, the Company will be obligated to repay carried interest that was received by the Company in excess of the amounts to which the Company is entitled. This contingent obligation is normally reduced by income taxes paid by the Company related to its carried interest.

Senior professionals of the Company who have received carried interest distributions are responsible for funding their proportionate share of any contingent repayment obligations. However, the governing agreements of certain of the Company’s funds provide that if a current or former professional does not fund his or her respective share for such fund, then the Company may have to fund additional amounts beyond what was received in carried interest, although the Company will generally retain the right to pursue any remedies under such governing agreements against those carried interest recipients who fail to fund their obligations.

Additionally, at the end of the life of the funds there could be a payment due to a fund by the Company if the Company has received more carried interest than was ultimately earned. The general partner obligation amount, if any, will depend on final realized values of investments at the end of the life of the fund.

As of June 30, 2026 and December 31, 2025, if the Company assumed all existing investments were worthless, the amount of carried interest subject to potential repayment, net of tax distributions, which may differ from the recognition of revenue, would have been $242.2 million and $125.6 million, respectively, of which $167.0 million and $99.8 million, respectively, is reimbursable to the Company by certain professionals who are the recipients of such carried interest. Management believes the possibility of all of the investments becoming worthless is remote. As of June 30, 2026 and December 31, 2025, if the funds were liquidated at their fair values, there would be no material contingent repayment obligation or liability.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Litigation

From time to time, the Company is named as a defendant in legal actions relating to transactions and other matters conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, the Company does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial condition or cash flows.

Leases

The Company’s leases primarily consist of operating leases for office space and certain office equipment. The Company’s leases have remaining lease terms up to 17 years. The tables below present certain supplemental quantitative disclosures regarding the Company’s operating leases:


Maturity of operating lease liabilities	As of June 30, 2026
2026	$	38,689
2027	77,164
2028	94,412
2029	90,743
2030	88,983
Thereafter	830,518
Total future payments	1,220,509
Less: interest	407,913
Total operating lease liabilities	$	812,596


	Three months ended June 30,				Six months ended June 30,
Classification within general, administrative and other expenses	2026		2025		2026		2025
Operating lease expense	$	25,716	$	22,773	$	49,538	$	43,728



	Six months ended June 30,
Supplemental information on the measurement of operating lease liabilities	2026		2025
Operating cash flows for operating leases	$	41,075	$	31,126



Leased assets obtained in exchange for new operating lease liabilities	146,342		48,353


	As of June 30,	As of December 31,

Lease term and discount rate	2026	2025

Weighted-average remaining lease terms (in years)	13.2	12.9


Weighted-average discount rate	5.7%	5.8%

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

8. RELATED PARTY TRANSACTIONS

Substantially all of the Company’s revenue is earned from its affiliates. The related accounts receivable are included within due from affiliates within the Condensed Consolidated Statements of Financial Condition, except that accrued carried interest, which is predominantly due from affiliated funds, is presented separately within investments within the Condensed Consolidated Statements of Financial Condition.

The Company has investment management agreements with the Ares Funds that it manages. In accordance with these agreements, these Ares Funds may bear certain operating costs and expenses which are initially paid by the Company and subsequently reimbursed by the Ares Funds.

Employees and other related parties may be permitted to participate in co-investment vehicles that generally invest in Ares Funds alongside fund investors. Participation is limited by law to individuals who qualify under applicable securities laws. These co-investment vehicles generally do not require these individuals to pay management fees, carried interest or incentive fees.

Carried interest and incentive fees from the funds can be distributed to professionals or their related entities on a current basis, subject, in the case of carried interest programs, to repayment by the subsidiary of the Company that acts as general partner of the relevant fund in the event that certain specified return thresholds are not ultimately achieved. The professionals have personally guaranteed, subject to certain limitations, the obligations of these subsidiaries in respect of this general partner obligation. Such guarantees are several, and not joint, and are limited to distributions received by the relevant recipient.

The Company considers its professionals and non-consolidated funds to be affiliates. Amounts due from and to affiliates were composed of the following:


	As of June 30,		As of December 31,

	2026		2025
Due from affiliates
Management fees receivable from non-consolidated funds	$	863,480	$	817,767
Incentive fee receivable from non-consolidated funds	41,956		150,674
Payments made on behalf of and amounts due from non-consolidated funds and employees	471,684		451,777

Due from affiliates—Company	$	1,377,120	$	1,420,218


Due to affiliates
Management fee received in advance and rebates payable to non-consolidated funds	$	7,422	$	10,197
Tax receivable agreement liability	621,992		579,893
Realized carried interest and incentive fees payable	121,496		206,270
Payments made by non-consolidated funds on behalf of and payable by the Company	13,858		14,049
Due to affiliates—Company	$	764,768	$	810,409

Due from and Due to Ares Funds and Portfolio Companies

In the normal course of business, the Company pays certain expenses on behalf of Consolidated Funds and non-consolidated funds for which it is reimbursed. Conversely, Consolidated Funds and non-consolidated funds may pay certain expenses that are reimbursed by the Company. Certain expenses initially paid by the Company, primarily professional services, travel and other costs associated with particular portfolio company holdings, are subject to reimbursement by the portfolio companies.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

9. INCOME TAXES

The Company’s income tax provision includes corporate income taxes and other entity level income taxes, as well as income taxes incurred by certain affiliated funds that are consolidated in these financial statements.

The Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any Consolidated Funds. For the three and six months ended June 30, 2026 and 2025, the Company recorded its interim income tax provision utilizing the estimated annual effective tax rate.

The income tax effects of temporary differences give rise to significant portions of deferred tax assets and liabilities, which are presented on a net basis. As of June 30, 2026 and December 31, 2025, the Company recorded a net deferred tax asset of $426.0 million and $352.3 million, respectively, within other assets within the Condensed Consolidated Statements of Financial Condition. A valuation allowance is recorded on our net deferred tax assets when it is more likely than not that such assets will not be realized or when timing is unknown. For the Consolidated Funds, a net deferred tax liability of $23.3 million and $15.0 million as of June 30, 2026 and December 31, 2025, respectively, was included within accounts payable, accrued expenses and other liabilities within the Condensed Consolidated Statements of Financial Condition.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local and foreign tax authorities. With limited exceptions, the Company is generally no longer subject to corporate income tax audits by taxing authorities for any years prior to 2021. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s unaudited condensed consolidated financial statements.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

10. EARNINGS PER SHARE

The Company has Class A and non-voting common stock outstanding. The non-voting common stock has the same economic rights as the Class A common stock; therefore, earnings per share is presented on a combined basis. Income of the Company has been allocated on a proportionate basis to the two common stock classes.

Basic earnings per share of Class A and non-voting common stock is computed by using the two-class method. Diluted earnings per share of Class A and non-voting common stock is computed using the more dilutive method of either the two-class method or the treasury stock and if-converted methods.

For the three and six months ended June 30, 2026 and 2025, the two-class method was the more dilutive method.

The following table presents the computation of basic and diluted earnings per common share:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Basic earnings per share of Class A and non-voting common stock
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	125,323	$	111,750	$	242,599	$	133,607
Dividends declared and paid on Class A and non-voting common stock	(306,504)		(245,650)		(610,843)		(490,238)
Distributions on unvested restricted units	(13,066)		(10,384)		(26,289)		(21,188)

Dividends in excess of earnings available to Class A and non-voting common stockholders	$	(194,247)	$	(144,284)	$	(394,533)	$	(377,819)
Basic weighted-average shares of Class A and non-voting common stock	226,304,870		218,915,599		225,175,788		214,158,085
Dividends in excess of earnings per share of Class A and non-voting common stock	$	(0.86)	$	(0.66)	$	(1.75)	$	(1.76)
Dividend declared and paid per Class A and non-voting common stock	1.35		1.12		2.70		2.24
Basic earnings per share of Class A and non-voting common stock	$	0.49	$	0.46	$	0.95	$	0.48

Diluted earnings per share of Class A and non-voting common stock
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	125,323	$	111,750	$	242,599	$	133,607
Distributions on unvested restricted units	(13,066)		(10,384)		(26,289)		(21,188)

Net income available to Class A and non-voting common stockholders	$	112,257	$	101,366	$	216,310	$	112,419





Diluted weighted-average shares of Class A and non-voting common stock	226,304,870		218,915,599		225,175,788		214,158,085
Diluted earnings per share of Class A and non-voting common stock	$	0.49	$	0.46	$	0.95	$	0.48

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

11. EQUITY COMPENSATION

Equity-based compensation expense, net of forfeitures, recorded by the Company is presented in the following table:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Unvested awards	$	179,755	$	162,064	$	380,397	$	418,966
AOG Unit awards	3,024		3,027		6,014		3,987
Total equity-based compensation expense	$	182,779	$	165,091	$	386,411	$	422,953

Equity Incentive Plan

Equity-based compensation is generally granted under the 2023 Ares Management Corporation Equity Incentive Plan (the “Equity Incentive Plan”). The total number of shares available to be issued under the Equity Incentive Plan resets based on a formula defined in the Equity Incentive Plan and may increase on January 1 of each year. On January 1, 2026, the total number of shares available for issuance under the Equity Incentive Plan reset to 50,423,141 shares and as of June 30, 2026, 45,356,728 shares remained available for issuance.

Generally, unvested awards are forfeited upon termination of employment in accordance with the Equity Incentive Plan. The Company recognizes forfeitures as a reversal of previously recognized compensation expense in the period the forfeiture occurs.

Unvested Awards

Each unvested award represents either a share of the Company’s Class A common stock that is subject to restriction or a restricted unit, representing an unfunded, unsecured right of the holder to receive a share of the Company’s Class A common stock on a specific date. The unvested awards vest and the restrictions lapse or are settled in shares of Class A common stock, as applicable, over service periods up to five years from the grant date, in each case generally subject to the holder’s continued employment as of the applicable vesting date (subject to accelerated vesting upon certain qualifying terminations of employment or retirement eligibility provisions). Compensation expense associated with unvested awards is recognized on a straight-line basis over the requisite service period of the award.

Restricted units are delivered net of the holder’s payroll-related taxes upon vesting. For the six months ended June 30, 2026, 5.9 million restricted units vested and 3.3 million shares of Class A common stock were delivered to the holders. For the six months ended June 30, 2025, 5.0 million restricted units vested and 2.9 million shares of Class A common stock were delivered to the holders.

The holders of restricted units, other than awards that have not yet been issued, generally have the right to receive as current compensation an amount in cash equal to: (i) the amount of any dividend paid with respect to a share of Class A common stock multiplied by (ii) the number of restricted units held at the time such dividends are declared (“Dividend Equivalent”).

The following table summarizes the Company’s dividends declared and Dividend Equivalents paid during the six months ended June 30, 2026:


Record Date	Dividends Per Share		Dividend Equivalents Paid
March 17, 2026	$	1.35	$	25,442
June 15, 2026	1.35		25,194

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents unvested awards’ activity:


	Unvested Awards	Weighted Average Grant Date Fair Value Per Unvested Award
Balance as of December 31, 2025	19,760,606	$	118.49
Granted	4,928,284	152.99
Vested	(5,851,767)	96.54
Forfeited	(78,648)	152.32
Balance as of June 30, 2026	18,758,475	$	134.26

The total compensation expense expected to be recognized in all future periods associated with unvested awards is $1,894.7 million as of June 30, 2026 and is expected to be recognized over the remaining weighted average period of 3.3 years.

Other Equity-Based Compensation

The following table presents unvested AOG Unit awards’ activity:


	Unvested AOG Unit Awards	Weighted Average Grant Date Fair Value Per Unvested AOG Unit Award
Balance as of December 31, 2025	212,448	$	170.94

Vested	(70,816)	170.94

Balance as of June 30, 2026	141,632	$	170.94

The total compensation expense expected to be recognized in all future periods associated with unvested AOG Unit awards is $20.2 million as of June 30, 2026 and is expected to be recognized over the remaining weighted average period of 1.7 years.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

12. EQUITY AND REDEEMABLE INTEREST

Common Stock

The Company’s common stock consists of Class A, Class B, Class C and non-voting common stock, each $0.01 par value per share. The non-voting common stock has the same economic rights as the Class A common stock. The Class B common stock and Class C common stock are non-economic and holders are not entitled to dividends from the Company or to receive any assets of the Company in the event of any dissolution, liquidation or winding up of the Company. Ares Management GP LLC is the sole holder of the Class B common stock and Ares Voting LLC (“Ares Voting”) is the sole holder of the Class C common stock.

In February 2026, the Company’s board of directors authorized the renewal of the stock repurchase program that allows for the repurchase of up to $750.0 million of shares of Class A common stock. Under the program, shares may be repurchased from time to time in open market purchases, privately negotiated transactions or otherwise, including in reliance on Rule 10b5-1 of the Securities Act. The program is scheduled to expire in March 2027. Repurchases under the program, if any, will depend on the prevailing market conditions and other factors. During the six months ended June 30, 2026 and 2025, the Company did not repurchase any shares as part of the stock repurchase program.

The following table presents the changes in each class of common stock:


	Class A Common Stock	Non-Voting Common Stock	Class B Common Stock	Class C Common Stock	Total
Balance as of December 31, 2025	218,465,429	3,489,911	1,000	105,079,121	327,035,461
Issuance of common stock, net of unvested share forfeitures	105,715	—	—	—	105,715
Exchanges of common stock	2,250,545	—	—	(2,250,545)	—


Vesting of restricted unit awards, net of shares withheld for tax	3,060,628	—	—	—	3,060,628

Balance as of June 30, 2026	223,882,317	3,489,911	1,000	102,828,576	330,201,804

The following table presents each partner’s AOG Units and corresponding ownership interest in each of the AOG entities, as well as its daily average ownership of AOG Units in each of the AOG entities:


							Daily Average Ownership
	As of June 30, 2026			As of December 31, 2025			Three months ended June 30,				Six months ended June 30,
	AOG Units	Direct Ownership Interest		AOG Units	Direct Ownership Interest		2026		2025		2026		2025
Ares Management Corporation	227,372,228	68.86	%	221,955,340	67.87	%	68.61	%	67.03	%	68.37	%	66.41	%
Ares Owners Holdings, L.P.	102,828,576	31.14		105,079,121	32.13		31.39		32.97		31.63		33.59
Total	330,200,804	100.00	%	327,034,461	100.00	%

Preferred Stock

As of June 30, 2026 and December 31, 2025, the Company had 30,000,000 shares of Series B mandatory convertible preferred stock outstanding. When, as and if declared by the Company’s board of directors, dividends on the Series B mandatory convertible preferred stock are payable quarterly at a rate per annum equal to 6.75%. Dividends on Series B mandatory convertible preferred stock are cumulative and the Series B mandatory convertible preferred stock, unless previously converted or redeemed, will automatically convert into the Company’s Class A common stock on October 1, 2027. Unless converted earlier in accordance with its terms, each share of Series B mandatory convertible preferred stock will automatically convert on the mandatory conversion date into between 0.2717 and 0.3260 shares of the Company’s Class A common stock, in each case, subject to customary anti-dilution adjustments. The conversion rate that will apply to mandatory conversions will be determined based on the average of the daily volume-weighted average prices over the 20 consecutive trading days beginning on, and including, the 21st scheduled trading day immediately before October 1, 2027.

Holders of shares of Series B mandatory convertible preferred stock have the option to convert all or any portion of their shares of Series B mandatory convertible preferred stock at any time. The conversion rate applicable to any early conversion may in certain circumstances be increased to compensate holders of the Series B mandatory convertible preferred stock for certain unpaid accumulated dividends.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Redeemable Interest

The following table summarizes the activities associated with the redeemable interest in AOG entities:


	Total
Balance as of December 31, 2024	$	23,496

Net income	316
Currency translation adjustment, net of tax	198

Distributions	(300)

Balance as of March 31, 2025	23,710

Net loss	(274)
Currency translation adjustment, net of tax	699



Balance as of June 30, 2025	24,135

Net income	1,797
Currency translation adjustment, net of tax	(182)



Balance as of September 30, 2025	25,750

Net loss	(490)
Currency translation adjustment, net of tax	36



Balance as of December 31, 2025	25,296

Net loss	(1,113)
Currency translation adjustment, net of tax	(7)

Distributions	(297)

Balance as of March 31, 2026	23,879

Net income	1,845
Currency translation adjustment, net of tax	(76)


Balance as of June 30, 2026	$	25,648

The following table summarizes the activities associated with the redeemable interest in Consolidated Funds:


	Total




Balance as of December 31, 2024	$	550,700
Change in redemption value	5,698
Balance as of March 31, 2025	556,398
Redemptions from Class A ordinary shares of Ares Acquisition Corporation II (“AAC II”) (subsequently renamed to Kodiak AI, Inc. (Nasdaq: KDK))	(7,143)
Change in redemption value	8,795
Balance as of June 30, 2025	558,050
Redemptions from Class A ordinary shares of AAC II	(502,360)
Change in redemption value	7,214
Deconsolidation of AAC II	(62,904)
Balance as of September 30, 2025	$	—

As of June 30, 2026 and December 31, 2025, there was no redeemable interest in Consolidated Funds.

13. SEGMENT REPORTING

The Company operates through its distinct operating segments. The Company’s operating segments are summarized below:

Credit Group: The Credit Group manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, opportunistic credit, direct lending and Asia-Pacific (“APAC”) credit.

Real Assets Group: The Real Assets Group manages comprehensive equity and debt strategies across real estate and infrastructure investments.

Secondaries Group: The Secondaries Group invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit.

Private Equity Group: The Private Equity Group broadly categorizes its investment strategies as corporate private equity and APAC private equity.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Other: Other represents a compilation of operating segments and strategic investments that seek to expand the Company’s reach and its scale in new and existing global markets but individually are not yet material to the Company’s results. These results include activities from: (i) Ares Insurance Solutions (“AIS”), the Company’s insurance platform that provides solutions to insurance clients including asset management, capital solutions and corporate development; (ii) the SPACs sponsored by the Company; (iii) a venture capital business with fund strategies that are focused on growth-stage companies and applied artificial intelligence, among others; and (iv) other initiatives, such as activities from the Company’s investments in certain structured financing vehicles.

The Operations Management Group (the “OMG”) consists of shared resource groups to support the Company’s operating segments by providing infrastructure and administrative support in the areas of accounting/finance, operations, information technology, legal, compliance, human resources, strategy, relationship management, and distribution, including the Company’s wealth distribution platform, Ares Wealth Management Solutions (“AWMS”). Through our registered broker-dealer subsidiary, Ares Management Capital Markets LLC (“AMCM”), AWMS facilitates the product development, distribution, marketing and client management activities for investment offerings in the global wealth management channel. Additionally, the OMG provides services to certain of the Company’s managed funds and vehicles, which may reimburse the OMG for expenses either equal to the costs of services provided or as a percentage of invested capital. The OMG’s revenues and expenses are not allocated to the Company’s operating segments but the Company does consider the financial results of the OMG when evaluating its financial performance.

Segment Profit Measure: Realized income (“RI”), which includes fee related earnings (“FRE”) as a component, supplements and should be considered in addition to, and not in lieu of, the Condensed Consolidated Statements of Operations prepared in accordance with GAAP.

RI, a non-GAAP measure, is an operating metric used by management to evaluate performance of the business based on operating performance and the contribution of each of the business segments to that performance, while removing the fluctuations of unrealized income and expenses, which may or may not be eventually realized at the levels presented and whose realizations depend more on future outcomes than current business operations. RI differs from income before taxes by excluding: (i) operating results of the Consolidated Funds; (ii) depreciation and amortization expense; (iii) the effects of changes arising from corporate actions; (iv) unrealized gains and losses related to carried interest, incentive fees and investment performance; and adjusts for certain other items that the Company believes are not indicative of operating performance. Changes arising from corporate actions include equity-based compensation expenses, the amortization of intangible assets, transaction costs associated with mergers, acquisitions and capital activities, underwriting costs and expenses incurred in connection with corporate reorganization. Placement fee adjustment represents the net portion of either expense deferral or amortization of certain upfront fees to placement agents that is presented to match the timing of expense recognition with the period over which management fees are expected to be earned from the associated fund for segment purposes and differ from the expenses recorded in accordance with GAAP. For periods in which the amortization of these upfront fees for segment purposes is higher than the GAAP expense, the placement fee adjustment is presented as a reduction to RI. Management believes RI is a more appropriate metric to evaluate the Company’s current business operations.

FRE, a non-GAAP measure that is a component of RI, is used to assess core operating performance by determining whether recurring revenue, primarily consisting of management fees and fee related performance revenues, is sufficient to cover operating expenses and to generate profits. FRE differs from income before taxes computed in accordance with GAAP as it excludes net performance income, investment income and adjusts for certain other items that the Company believes are not indicative of its core operating performance. Fee related performance revenues, together with fee related performance compensation, are presented within FRE because they represent incentive fees from perpetual capital vehicles that are measured and eligible to be received on a recurring basis and not dependent on realization events from the underlying investments.

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and other data that is presented before giving effect to the consolidation of any of the Consolidated Funds. Consequently, all segment data excludes the assets, liabilities and operating results related to the Consolidated Funds and non-consolidated funds. Total assets by segments is not disclosed because such information is not used by the Company’s CODM in evaluating the segments.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following tables present the financial results for the Company’s operating segments, as well as the OMG:


	Three months ended June 30, 2026
	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Other		Total Segments		OMG		Total
Management fees	$	703,460	$	202,590	$	71,875	$	33,800	$	18,291	$	1,030,016	$	—	$	1,030,016
Fee related performance revenues	1,081		354		39,094		—		—		40,529		—		40,529
Other fees	17,848		62,318		1,804		677		136		82,783		9,179		91,962
Compensation and benefits	(178,500)		(80,760)		(37,358)		(14,102)		(8,933)		(319,653)		(153,045)		(472,698)
General, administrative and other expenses	(45,436)		(37,314)		(14,507)		(5,072)		(2,880)		(105,209)		(93,545)		(198,754)
Fee related earnings	498,453		147,188		60,908		15,303		6,614		728,466		(237,411)		491,055
Performance income—realized	128,422		5,946		—		5,961		—		140,329		—		140,329
Performance related compensation—realized	(80,091)		(3,402)		—		(5,933)		—		(89,426)		—		(89,426)
Realized net performance income	48,331		2,544		—		28		—		50,903		—		50,903
Investment income (loss)—realized	(676)		26,433		800		289		2,285		29,131		(448)		28,683
Interest income	490		301		16		1		921		1,729		1,314		3,043
Interest expense	(2,790)		(32,066)		(2,027)		(3,475)		(11,748)		(52,106)		(77)		(52,183)
Realized net investment income (loss)	(2,976)		(5,332)		(1,211)		(3,185)		(8,542)		(21,246)		789		(20,457)
Realized income	$	543,808	$	144,400	$	59,697	$	12,146	$	(1,928)	$	758,123	$	(236,622)	$	521,501

	Three months ended June 30, 2025
	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Other		Total Segments		OMG		Total
Management fees	$	617,141	$	175,924	$	61,643	$	31,767	$	13,810	$	900,285	$	—	$	900,285
Fee related performance revenues	314		147		16,236		—		—		16,697		—		16,697
Other fees	13,362		48,558		5,801		434		132		68,287		7,831		76,118
Compensation and benefits	(160,205)		(80,289)		(23,067)		(16,796)		(6,470)		(286,827)		(134,645)		(421,472)
General, administrative and other expenses	(44,302)		(30,695)		(10,076)		(5,559)		(2,708)		(93,340)		(69,177)		(162,517)
Fee related earnings	426,310		113,645		50,537		9,846		4,764		605,102		(195,991)		409,111
Performance income—realized	21,915		3,681		—		29,958		—		55,554		—		55,554
Performance related compensation—realized	(13,248)		(2,317)		—		(23,506)		—		(39,071)		—		(39,071)
Realized net performance income	8,667		1,364		—		6,452		—		16,483		—		16,483
Investment income (loss)—realized	4,096		6,544		17		369		2,107		13,133		(893)		12,240
Interest income	1,135		665		23		1		1,085		2,909		646		3,555
Interest expense	(4,714)		(24,570)		(1,862)		(3,810)		(8,613)		(43,569)		(6)		(43,575)
Realized net investment income (loss)	517		(17,361)		(1,822)		(3,440)		(5,421)		(27,527)		(253)		(27,780)
Realized income	$	435,494	$	97,648	$	48,715	$	12,858	$	(657)	$	594,058	$	(196,244)	$	397,814

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	Six months ended June 30, 2026
	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Other		Total Segments		OMG		Total
Management fees	$	1,388,123	$	399,216	$	142,150	$	66,919	$	35,179	$	2,031,587	$	—	$	2,031,587
Fee related performance revenues	6,337		2,955		50,793		—		—		60,085		—		60,085
Other fees	32,947		109,070		3,589		1,177		186		146,969		18,960		165,929
Compensation and benefits	(354,737)		(160,851)		(57,857)		(27,886)		(16,897)		(618,228)		(303,117)		(921,345)
General, administrative and other expenses	(96,781)		(71,233)		(23,134)		(10,050)		(5,443)		(206,641)		(174,156)		(380,797)
Fee related earnings	975,889		279,157		115,541		30,160		13,025		1,413,772		(458,313)		955,459
Performance income—realized	294,650		17,609		—		41,618		—		353,877		—		353,877
Performance related compensation—realized	(182,340)		(10,802)		—		(34,496)		—		(227,638)		—		(227,638)
Realized net performance income	112,310		6,807		—		7,122		—		126,239		—		126,239
Investment income (loss)—realized	3,348		31,879		969		367		4,479		41,042		(579)		40,463
Interest income	1,322		485		35		1		921		2,764		2,255		5,019
Interest expense	(6,145)		(63,155)		(3,650)		(6,891)		(22,889)		(102,730)		(213)		(102,943)
Realized net investment income (loss)	(1,475)		(30,791)		(2,646)		(6,523)		(17,489)		(58,924)		1,463		(57,461)
Realized income	$	1,086,724	$	255,173	$	112,895	$	30,759	$	(4,464)	$	1,481,087	$	(456,850)	$	1,024,237

	Six months ended June 30, 2025
	Credit Group		Real Assets Group		Secondaries Group		Private Equity Group		Other		Total Segments		OMG		Total
Management fees	$	1,202,537	$	306,377	$	119,293	$	63,765	$	26,689	$	1,718,661	$	—	$	1,718,661
Fee related performance revenues	18,709		147		25,892		—		—		44,748		—		44,748
Other fees	23,960		69,938		5,923		831		268		100,920		13,368		114,288
Compensation and benefits	(324,952)		(136,991)		(41,438)		(30,627)		(13,533)		(547,541)		(251,113)		(798,654)
General, administrative and other expenses	(85,350)		(51,547)		(18,549)		(9,816)		(4,191)		(169,453)		(133,203)		(302,656)
Fee related earnings	834,904		187,924		91,121		24,153		9,233		1,147,335		(370,948)		776,387
Performance income—realized	76,027		68,986		—		35,989		—		181,002		—		181,002
Performance related compensation—realized	(47,506)		(49,124)		—		(26,857)		—		(123,487)		—		(123,487)
Realized net performance income	28,521		19,862		—		9,132		—		57,515		—		57,515
Investment income (loss)—realized	9,475		14,463		155		(4,233)		4,637		24,497		(562)		23,935
Interest income	5,555		3,283		980		2,023		12,773		24,614		1,249		25,863
Interest expense	(11,022)		(40,287)		(3,870)		(7,990)		(16,531)		(79,700)		(262)		(79,962)
Realized net investment income (loss)	4,008		(22,541)		(2,735)		(10,200)		879		(30,589)		425		(30,164)
Realized income	$	867,433	$	185,245	$	88,386	$	23,085	$	10,112	$	1,174,261	$	(370,523)	$	803,738

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents the components of the Company’s operating segments’ revenue, expenses and realized net investment income (loss):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Segment revenues
Management fees	$	1,030,016	$	900,285	$	2,031,587	$	1,718,661
Fee related performance revenues	40,529		16,697		60,085		44,748
Other fees	82,783		68,287		146,969		100,920
Performance income—realized	140,329		55,554		353,877		181,002
Total segment revenues	$	1,293,657	$	1,040,823	$	2,592,518	$	2,045,331
Segment expenses
Compensation and benefits	$	319,653	$	286,827	$	618,228	$	547,541
General, administrative and other expenses	105,209		93,340		206,641		169,453
Performance related compensation—realized	89,426		39,071		227,638		123,487
Total segment expenses	$	514,288	$	419,238	$	1,052,507	$	840,481
Segment realized net investment income (loss)
Investment income—realized	$	29,131	$	13,133	$	41,042	$	24,497
Interest income	1,729		2,909		2,764		24,614
Interest expense	(52,106)		(43,569)		(102,730)		(79,700)
Total segment realized net investment loss	$	(21,246)	$	(27,527)	$	(58,924)	$	(30,589)

The following table reconciles the Company’s consolidated revenues to segment revenue:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Total consolidated revenue	$	1,428,610	$	1,350,128	$	2,825,046	$	2,438,933
Performance income—unrealized	(124,837)		(300,592)		(216,872)		(365,035)
Management fees of Consolidated Funds eliminated in consolidation	21,614		8,954		43,127		18,848
Performance income of Consolidated Funds eliminated in consolidation	13,060		7,096		29,178		12,224
Administrative, transaction and other fees of Consolidated Funds eliminated in consolidation	2,378		6,555		2,461		6,679
Administrative fees(1)	(26,562)		(22,027)		(50,597)		(41,755)
OMG revenue	(9,180)		(7,831)		(18,960)		(13,368)


Principal investment income, net of eliminations	(2,288)		(10,963)		(2,765)		(32,961)
Net (revenue) expense of non-controlling interests in consolidated subsidiaries	(9,138)		9,503		(18,100)		21,766
Total consolidation adjustments and reconciling items	(134,953)		(309,305)		(232,528)		(393,602)
Total segment revenue	$	1,293,657	$	1,040,823	$	2,592,518	$	2,045,331

(1)Represents administrative fees from expense reimbursements that are presented within administrative, transaction and other fees within the Company’s Condensed Consolidated Statements of Operations and are netted against the respective expenses for segment reporting.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table reconciles the Company’s consolidated expenses to segment expenses:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Total consolidated expenses	$	1,179,977	$	1,137,578	$	2,348,440	$	2,151,906
Performance related compensation-unrealized	(123,748)		(207,731)		(205,170)		(248,281)
Expenses of Consolidated Funds added in consolidation	(27,668)		(42,778)		(56,546)		(59,462)
Expenses of Consolidated Funds eliminated in consolidation	23,993		15,771		45,588		25,799
Administrative fees(1)	(26,562)		(22,027)		(50,597)		(41,755)
Depreciation and amortization expense	(60,449)		(63,180)		(120,143)		(111,409)
Equity compensation expense	(182,779)		(165,091)		(386,411)		(422,953)
Acquisition-related compensation expense(2)	(28,239)		(44,305)		(56,439)		(66,304)
Acquisition and merger-related expense	(692)		(2,791)		(1,936)		(37,399)
Placement fee adjustment	8,096		1,092		14,918		1,098
OMG expenses	(246,590)		(203,822)		(477,273)		(384,316)
Expense of non-controlling interests in consolidated subsidiaries	(1,051)		16,522		(1,924)		33,557
Total consolidation adjustments and reconciling items	(665,689)		(718,340)		(1,295,933)		(1,311,425)
Total segment expenses	$	514,288	$	419,238	$	1,052,507	$	840,481

(2)Represents bonus payments, a portion of earnouts and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. See “Note 7. Commitments and Contingencies” for a further description of the various contingent earnout arrangements.

The following table reconciles the Company’s consolidated other income to segment realized net investment loss:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Total consolidated other income	$	137,309	$	74,388	$	222,257	$	140,949
Investment income—unrealized	(64,839)		(106,579)		(84,977)		(128,217)
Interest and other investment loss—unrealized	6,060		24,083		2,687		27,857
Other income, net of Consolidated Funds added in consolidation	(130,696)		(145,705)		(237,416)		(232,127)
Other expense (income), net of Consolidated Funds eliminated in consolidation	(335)		10,971		(571)		12,771
OMG other income	(1,044)		(4,927)		(1,719)		(730)
Principal investment income	18,442		91,377		47,454		118,216
Other (income) expense, net	14,672		27,163		(8,334)		29,689
Other loss (income) of non-controlling interests in consolidated subsidiaries	(815)		1,702		1,695		1,003
Total consolidation adjustments and reconciling items	(158,555)		(101,915)		(281,181)		(171,538)
Total segment realized net investment loss	$	(21,246)	$	(27,527)	$	(58,924)	$	(30,589)

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

The following table presents the reconciliation of income before taxes as reported in the Condensed Consolidated Statements of Operations to segment results of RI and FRE:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Income before taxes	$	385,942	$	286,938	$	698,863	$	427,976
Adjustments:
Depreciation and amortization expense	60,449		63,180		120,143		111,409
Equity compensation expense	182,779		165,091		386,411		422,953
Acquisition-related compensation expense(1)	28,239		44,305		56,439		66,304
Acquisition and merger-related expense	692		2,791		1,936		37,399
Placement fee adjustment	(8,096)		(1,092)		(14,918)		(1,098)
OMG expense, net	236,367		191,064		456,594		370,218
Other (income) expense, net	14,672		27,163		(8,334)		29,689
Income before taxes of non-controlling interests in consolidated subsidiaries	(8,903)		(5,317)		(14,481)		(10,788)
Income before taxes of non-controlling interests in Consolidated Funds, net of eliminations	(74,150)		(4,708)		(107,574)		(62,687)
Total performance income—unrealized	(124,837)		(300,592)		(216,872)		(365,035)
Total performance related compensation—unrealized	123,748		207,731		205,170		248,281
Total net investment income—unrealized	(58,779)		(82,496)		(82,290)		(100,360)
Realized income	758,123		594,058		1,481,087		1,174,261
Total performance income—realized	(140,329)		(55,554)		(353,877)		(181,002)
Total performance related compensation—realized	89,426		39,071		227,638		123,487
Total net investment loss—realized	21,246		27,527		58,924		30,589
Fee related earnings	$	728,466	$	605,102	$	1,413,772	$	1,147,335

(1)Represents bonus payments, a portion of earnouts and other costs recorded in connection with various acquisitions that are recorded as compensation expense and are presented within compensation and benefits within the Company’s Condensed Consolidated Statements of Operations. See “Note 7. Commitments and Contingencies” for a further description of the various contingent earnout arrangements.

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

14. CONSOLIDATION

Deconsolidation of Funds

Certain funds that have historically been consolidated in the financial statements are no longer consolidated because: (i) such funds have been liquidated or dissolved; or (ii) the Company is no longer deemed to be the primary beneficiary of the variable interest entities (“VIEs”) as it no longer has a significant economic interest.

Investments in Consolidated Variable Interest Entities

The Company consolidates entities in which the Company has a variable interest and, as the general partner or investment manager, has both the power to direct the most significant activities and a significant economic interest. Investments in the consolidated VIEs are reported at fair value and represent the Company’s maximum exposure to loss.

Investments in Non-Consolidated Variable Interest Entities

The Company holds interests in certain VIEs that are not consolidated as the Company is not the primary beneficiary. The Company’s interest in such entities generally is in the form of direct equity interests, fixed fee arrangements or both. The maximum exposure to loss represents the potential loss of assets by the Company relating to its direct investments in these non-consolidated entities. Investments in the non-consolidated VIEs are carried at fair value.

The Company’s interests in consolidated and non-consolidated VIEs, as presented within the Condensed Consolidated Statements of Financial Condition, its respective maximum exposure to loss relating to non-consolidated VIEs, and its net income attributable to non-controlling interests related to consolidated VIEs, as presented within the Condensed Consolidated Statements of Operations, are as follows:


	As of June 30,		As of December 31,

	2026		2025
Maximum exposure to loss attributable to the Company’s investment in non-consolidated VIEs	$	369,983	$	469,455
Maximum exposure to loss attributable to the Company’s investment in consolidated VIEs	1,657,779		1,346,592
Assets of consolidated VIEs	13,788,662		13,468,979
Liabilities of consolidated VIEs	8,957,382		9,354,024


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Net income attributable to non-controlling interests related to consolidated VIEs	$	(2,632)	$	2,298	$	24,393	$	55,274

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

Consolidating Schedules

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Company’s financial condition, results from operations and cash flows:


	As of June 30, 2026
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	557,094	$	—	$	—	$	557,094
Investments (includes $4,141,111 of accrued carried interest)	7,333,193		—		(1,786,938)		5,546,255
Due from affiliates	1,402,537		—		(25,417)		1,377,120
Other assets	1,090,945		—		(569)		1,090,376
Right-of-use operating lease assets	633,385		—		—		633,385
Intangible assets, net	2,095,022		—		—		2,095,022
Goodwill	3,464,289		—		—		3,464,289
Assets of Consolidated Funds
Cash and cash equivalents	—		1,295,264		—		1,295,264

Investments, at fair value	—		13,393,347		—		13,393,347
Due from affiliates	—		—		—		—
Receivable for securities sold	—		113,294		—		113,294
Other assets	—		68,328		(2,375)		65,953
Total assets	$	16,576,465	$	14,870,233	$	(1,815,299)	$	29,631,399
Liabilities
Accounts payable, accrued expenses and other liabilities	$	1,227,445	$	—	$	(147)	$	1,227,298
Accrued compensation	635,157		—		—		635,157
Due to affiliates	767,143		—		(2,375)		764,768
Performance related compensation payable	3,122,566		—		—		3,122,566
Debt obligations	4,577,159		—		—		4,577,159

Operating lease liabilities	812,596		—		—		812,596
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		125,923		(1,353)		124,570
Due to affiliates	—		24,607		(24,607)		—
Payable for securities purchased	—		256,519		—		256,519
CLO loan obligations, at fair value	—		7,015,534		(63,877)		6,951,657
Fund borrowings	—		2,531,196		—		2,531,196
Total liabilities	11,142,066		9,953,779		(92,359)		21,003,486
Commitments and contingencies

Redeemable interest in Ares Operating Group entities	25,648		—		—		25,648
Non-controlling interest in Consolidated Funds	—		4,916,454		(1,589,793)		3,326,661
Non-controlling interest in Ares Operating Group entities	1,348,995		—		(41,464)		1,307,531
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)	1,460,030		—		—		1,460,030
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (223,882,317 shares issued and outstanding)	2,239		—		—		2,239
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding)	35		—		—		35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding)	—		—		—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (102,828,576 shares issued and outstanding)	1,028		—		—		1,028
Additional paid-in-capital	4,438,102		—		(91,683)		4,346,419
Accumulated deficit	(1,854,800)		—		—		(1,854,800)
Accumulated other comprehensive income, net of tax	13,122		—		—		13,122
Total stockholders’ equity	4,059,756		—		(91,683)		3,968,073
Total equity	5,408,751		4,916,454		(1,722,940)		8,602,265
Total liabilities, redeemable interest, non-controlling interests and equity	$	16,576,465	$	14,870,233	$	(1,815,299)	$	29,631,399

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	As of December 31, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Assets
Cash and cash equivalents	$	488,896	$	—	$	—	$	488,896
Investments (includes $3,972,748 of accrued carried interest)	6,940,314		—		(1,431,867)		5,508,447
Due from affiliates	1,446,083		—		(25,865)		1,420,218
Other assets	1,032,138		—		—		1,032,138
Right-of-use operating lease assets	517,351		—		—		517,351
Intangible assets, net	2,115,830		—		—		2,115,830
Goodwill	3,454,107		—		—		3,454,107
Assets of Consolidated Funds
Cash and cash equivalents	—		959,088		—		959,088

Investments, at fair value	—		12,844,886		—		12,844,886

Receivable for securities sold	—		228,442		—		228,442
Other assets	—		63,966		—		63,966
Total assets	$	15,994,719	$	14,096,382	$	(1,457,732)	$	28,633,369
Liabilities
Accounts payable, accrued expenses and other liabilities	$	1,204,618	$	—	$	(151)	$	1,204,467
Accrued compensation	472,978		—		—		472,978
Due to affiliates	810,409		—		—		810,409
Performance related compensation payable	2,951,333		—		—		2,951,333
Debt obligations	3,941,415		—		—		3,941,415
Operating lease liabilities	669,999		—		—		669,999
Liabilities of Consolidated Funds
Accounts payable, accrued expenses and other liabilities	—		105,722		(585)		105,137
Due to affiliates	—		25,021		(25,021)		—
Payable for securities purchased	—		165,391		—		165,391
CLO loan obligations, at fair value	—		7,424,717		(65,645)		7,359,072
Fund borrowings	—		2,251,780		—		2,251,780
Total liabilities	10,050,752		9,972,631		(91,402)		19,931,981
Commitments and contingencies

Redeemable interest in Ares Operating Group entities	25,296		—		—		25,296
Non-controlling interest in Consolidated Funds	—		4,123,751		(1,219,893)		2,903,858
Non-controlling interest in Ares Operating Group entities	1,543,823		—		(47,052)		1,496,771
Stockholders’ Equity

Series B mandatory convertible preferred stock, $0.01 par value, 1,000,000,000 shares authorized (30,000,000 shares issued and outstanding)	1,460,030		—		—		1,460,030
Class A common stock, $0.01 par value, 1,500,000,000 shares authorized (218,465,429 shares issued and outstanding)	2,185		—		—		2,185
Non-voting common stock, $0.01 par value, 500,000,000 shares authorized (3,489,911 shares issued and outstanding)	35		—		—		35
Class B common stock, $0.01 par value, 1,000 shares authorized (1,000 shares issued and outstanding)	—		—		—		—
Class C common stock, $0.01 par value, 499,999,000 shares authorized (105,079,121 shares issued and outstanding)	1,051		—		—		1,051
Additional paid-in-capital	4,342,063		—		(99,385)		4,242,678
Accumulated deficit	(1,452,259)		—		—		(1,452,259)
Accumulated other comprehensive income, net of tax	21,743		—		—		21,743
Total stockholders’ equity	4,374,848		—		(99,385)		4,275,463
Total equity	5,918,671		4,123,751		(1,366,330)		8,676,092
Total liabilities, redeemable interest, non-controlling interests and equity	$	15,994,719	$	14,096,382	$	(1,457,732)	$	28,633,369

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	Three months ended June 30, 2026
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,039,177	$	—	$	(21,614)	$	1,017,563
Carried interest allocation	262,974		—		(13,060)		249,914
Incentive fees	42,753		—		—		42,753
Principal investment income	18,442		—		(16,154)		2,288
Administrative, transaction and other fees	118,470		—		(2,378)		116,092
Total revenues	1,481,816		—		(53,206)		1,428,610
Expenses
Compensation and benefits	688,660		—		—		688,660
Performance related compensation	231,927		—		—		231,927
General, administrative and other expenses	255,715		—		—		255,715
Expenses of the Consolidated Funds	—		27,668		(23,993)		3,675
Total expenses	1,176,302		27,668		(23,993)		1,179,977
Other income (expense)
Net realized and unrealized gains on investments	73,208		—		(498)		72,710
Interest and dividend income	6,522		—		—		6,522
Interest expense	(52,195)		—		—		(52,195)
Other expense, net	(21,257)		—		165		(21,092)
Net realized and unrealized gains on investments of the Consolidated Funds	—		175,899		497		176,396
Interest and other income of the Consolidated Funds	—		59,123		—		59,123
Interest expense of the Consolidated Funds	—		(104,326)		171		(104,155)
Total other income, net	6,278		130,696		335		137,309
Income before taxes	311,792		103,028		(28,878)		385,942
Income tax expense	70,068		2,909		—		72,977
Net income	241,724		100,119		(28,878)		312,965
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		100,119		(28,878)		71,241
Net income attributable to Ares Operating Group entities	241,724		—		—		241,724
Less: Net income attributable to redeemable interest in Ares Operating Group entities	1,845		—		—		1,845
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	89,244		—		—		89,244
Net income attributable to Ares Management Corporation	150,635		—		—		150,635


Less: Series B mandatory convertible preferred stock dividends declared	25,312		—		—		25,312

Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	125,323	$	—	$	—	$	125,323

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	Three months ended June 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	909,576	$	—	$	(8,954)	$	900,622
Carried interest allocation	330,735		—		(6,834)		323,901
Incentive fees	23,341		—		(262)		23,079
Principal investment income	91,377		—		(80,414)		10,963
Administrative, transaction and other fees	98,118		—		(6,555)		91,563
Total revenues	1,453,147		—		(103,019)		1,350,128
Expenses
Compensation and benefits	643,709		—		—		643,709
Performance related compensation	234,706		—		—		234,706
General, administrative and other expenses	232,156		—		—		232,156
Expenses of the Consolidated Funds	—		42,778		(15,771)		27,007
Total expenses	1,110,571		42,778		(15,771)		1,137,578
Other income (expense)
Net realized and unrealized gains on investments	22,551		—		(9,843)		12,708
Interest and dividend income	7,813		—		(41)		7,772
Interest expense	(43,575)		—		—		(43,575)
Other expense, net	(47,135)		—		614		(46,521)
Net realized and unrealized gains on investments of the Consolidated Funds	—		130,282		(2,530)		127,752
Interest and other income of the Consolidated Funds	—		161,890		—		161,890
Interest expense of the Consolidated Funds	—		(146,467)		829		(145,638)
Total other income (expense), net	(60,346)		145,705		(10,971)		74,388
Income before taxes	282,230		102,927		(98,219)		286,938
Income tax expense	60,249		709		—		60,958
Net income	221,981		102,218		(98,219)		225,980
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		102,218		(98,219)		3,999
Net income attributable to Ares Operating Group entities	221,981		—		—		221,981
Less: Net loss attributable to redeemable interest in Ares Operating Group entities	(274)		—		—		(274)
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	85,193		—		—		85,193
Net income attributable to Ares Management Corporation	137,062		—		—		137,062
Less: Series B mandatory convertible preferred stock dividends declared	25,312		—		—		25,312
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	111,750	$	—	$	—	$	111,750

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	Six months ended June 30, 2026
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	2,050,217	$	—	$	(43,127)	$	2,007,090
Carried interest allocation	425,723		—		(29,178)		396,545
Incentive fees	204,687		—		—		204,687
Principal investment income	47,454		—		(44,689)		2,765
Administrative, transaction and other fees	216,420		—		(2,461)		213,959
Total revenues	2,944,501		—		(119,455)		2,825,046
Expenses
Compensation and benefits	1,381,067		—		—		1,381,067
Performance related compensation	460,263		—		—		460,263
General, administrative and other expenses	496,152		—		—		496,152
Expenses of the Consolidated Funds	—		56,546		(45,588)		10,958
Total expenses	2,337,482		56,546		(45,588)		2,348,440
Other income (expense)
Net realized and unrealized gains on investments	70,366		—		5,733		76,099
Interest and dividend income	13,621		—		—		13,621
Interest expense	(102,955)		—		—		(102,955)
Other income, net	3,238		—		230		3,468
Net realized and unrealized gains on investments of the Consolidated Funds	—		315,807		(5,395)		310,412
Interest and other income of the Consolidated Funds	—		164,568		—		164,568
Interest expense of the Consolidated Funds	—		(242,959)		3		(242,956)
Total other income (expense), net	(15,730)		237,416		571		222,257
Income before taxes	591,289		180,870		(73,296)		698,863
Income tax expense	126,163		6,686		—		132,849
Net income	465,126		174,184		(73,296)		566,014
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		174,184		(73,296)		100,888
Net income attributable to Ares Operating Group entities	465,126		—		—		465,126
Less: Net income attributable to redeemable interest in Ares Operating Group entities	732		—		—		732
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	171,170		—		—		171,170
Net income attributable to Ares Management Corporation	293,224		—		—		293,224
Less: Series B mandatory convertible preferred stock dividends declared	50,625		—		—		50,625
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	242,599	$	—	$	—	$	242,599

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	Six months ended June 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Revenues
Management fees	$	1,736,457	$	—	$	(18,848)	$	1,717,609
Carried interest allocation	495,861		—		(11,952)		483,909
Incentive fees	55,399		—		(272)		55,127
Principal investment income	118,216		—		(85,255)		32,961
Administrative, transaction and other fees	156,006		—		(6,679)		149,327
Total revenues	2,561,939		—		(123,006)		2,438,933
Expenses
Compensation and benefits	1,300,834		—		—		1,300,834
Performance related compensation	357,339		—		—		357,339
General, administrative and other expenses	460,070		—		—		460,070
Expenses of the Consolidated Funds	—		59,462		(25,799)		33,663
Total expenses	2,118,243		59,462		(25,799)		2,151,906
Other income (expense)
Net realized and unrealized gains on investments	33,182		—		(20,206)		12,976
Interest and dividend income	26,016		—		(588)		25,428
Interest expense	(79,962)		—		—		(79,962)
Other expense, net	(57,643)		—		408		(57,235)
Net realized and unrealized gains on investments of the Consolidated Funds	—		214,009		2,149		216,158
Interest and other income of the Consolidated Funds	—		321,962		—		321,962
Interest expense of the Consolidated Funds	—		(303,844)		5,466		(298,378)
Total other income (expense), net	(78,407)		232,127		(12,771)		140,949
Income before taxes	365,289		172,665		(109,978)		427,976
Income tax expense	75,784		2,711		—		78,495
Net income	289,505		169,954		(109,978)		349,481
Less: Net income attributable to non-controlling interests in Consolidated Funds	—		169,954		(109,978)		59,976
Net income attributable to Ares Operating Group entities	289,505		—		—		289,505
Less: Net income attributable to redeemable interest in Ares Operating Group entities	42		—		—		42
Less: Net income attributable to non-controlling interests in Ares Operating Group entities	105,231		—		—		105,231
Net income attributable to Ares Management Corporation	184,232		—		—		184,232
Less: Series B mandatory convertible preferred stock dividends declared	50,625		—		—		50,625
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders	$	133,607	$	—	$	—	$	133,607

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	Six months ended June 30, 2026
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities
Net income	$	465,126	$	174,184	$	(73,296)	$	566,014
Adjustments to reconcile net income to net cash provided by (used in) operating activities	449,016		—		165,634		614,650







Adjustments to reconcile net income to net cash provided by (used in) operating activities allocable to non-controlling interests in Consolidated Funds	—		(1,022,900)		1,768		(1,021,132)




Cash flows due to changes in operating assets and liabilities	106,539		—		40,524		147,063





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		82,628		(334,153)		(251,525)




Net cash provided by (used in) operating activities	1,020,681		(766,088)		(199,523)		55,070
Cash flows from investing activities
Purchase of furniture, equipment and leasehold improvements, net of disposals	(48,693)		—		—		(48,693)
Acquisitions, net of cash acquired	8,330		—		—		8,330
Net cash used in investing activities	(40,363)		—		—		(40,363)
Cash flows from financing activities


Proceeds from Credit Facility	955,000		—		—		955,000
Proceeds from Term Loan	399,415		—		—		399,415

Repayments of Credit Facility	(720,000)		—		—		(720,000)


Dividends and distributions	(1,036,513)		—		—		(1,036,513)



Taxes paid related to net share settlement of equity awards	(364,484)		—		—		(364,484)
Other financing activities	12,719		—		—		12,719
Allocable to redeemable and non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		825,582		(185,816)		639,766
Distributions to non-controlling interests in Consolidated Funds	—		(134,542)		49,163		(85,379)

Borrowings under loan obligations by Consolidated Funds	—		1,648,487		—		1,648,487
Repayments under loan obligations by Consolidated Funds	—		(1,371,066)		—		(1,371,066)
Net cash provided by (used in) financing activities	(753,863)		968,461		(136,653)		77,945
Effect of exchange rate changes	(11,597)		(12,857)		—		(24,454)
Net change in cash and cash equivalents	214,858		189,516		(336,176)		68,198
Cash and cash equivalents, beginning of period	488,896		959,088		(959,088)		488,896
Cash and cash equivalents, end of period	$	703,754	$	1,148,604	$	(1,295,264)	$	557,094
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	15,997	$	—	$	—	$	15,997

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)


	Six months ended June 30, 2025
	Consolidated Company Entities		Consolidated Funds		Eliminations		Consolidated
Cash flows from operating activities
Net income	$	289,505	$	169,954	$	(109,978)	$	349,481
Adjustments to reconcile net income to net cash provided by operating activities	548,460		—		(86,146)		462,314







Adjustments to reconcile net income to net cash provided by operating activities allocable to non-controlling interests in Consolidated Funds	—		1,175,691		(12,289)		1,163,402





Cash flows due to changes in operating assets and liabilities	326,562		—		(136,882)		189,680





Cash flows due to changes in operating assets and liabilities allocable to non-controlling interest in Consolidated Funds	—		(189,822)		434,849		245,027




Net cash provided by operating activities	1,164,527		1,155,823		89,554		2,409,904
Cash flows from investing activities
Purchase of furniture, equipment and leasehold improvements, net of disposals	(44,893)		—		—		(44,893)
Acquisitions, net of cash acquired	(1,722,715)		—		—		(1,722,715)
Net cash used in investing activities	(1,767,608)		—		—		(1,767,608)
Cash flows from financing activities


Proceeds from Credit Facility	1,525,000		—		—		1,525,000


Repayments of Credit Facility	(410,000)		—		—		(410,000)


Dividends and distributions	(873,259)		—		—		(873,259)




Taxes paid related to net share settlement of equity awards	(416,609)		—		—		(416,609)
Other financing activities	1,790		—		—		1,790
Allocable to non-controlling interests in Consolidated Funds:
Contributions from redeemable and non-controlling interests in Consolidated Funds	—		167,832		(7,685)		160,147
Distributions to non-controlling interests in Consolidated Funds	—		(443,128)		123,372		(319,756)
Redemptions of redeemable interests in Consolidated Funds	—		(7,143)		—		(7,143)
Borrowings under loan obligations by Consolidated Funds	—		312,491		—		312,491
Repayments under loan obligations by Consolidated Funds	—		(1,717,589)		—		(1,717,589)
Net cash used in financing activities	(173,078)		(1,687,537)		115,687		(1,744,928)
Effect of exchange rate changes	27,962		76,350		—		104,312
Net change in cash and cash equivalents	(748,197)		(455,364)		205,241		(998,320)
Cash and cash equivalents, beginning of period	1,507,976		1,227,489		(1,227,489)		1,507,976
Cash and cash equivalents, end of period	$	759,779	$	772,125	$	(1,022,248)	$	509,656
Supplemental disclosure of non-cash financing activities:
Equity issued in connection with acquisition-related activities	$	1,657,881	$	—	$	—	$	1,657,881

Ares Management Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements (Continued)

(Dollars in Thousands, Except Share Data and As Otherwise Noted)

15. SUBSEQUENT EVENTS

The Company evaluated all events or transactions that occurred after June 30, 2026 through the date the unaudited condensed consolidated financial statements were issued. During this period, the Company had the following material subsequent events that require disclosure:

In July 2026, the Company’s board of directors declared a quarterly dividend of $1.35 per share of Class A and non-voting common stock payable on September 30, 2026 to common stockholders of record at the close of business on September 16, 2026.

In July 2026, the Company’s board of directors declared a quarterly dividend of $0.84375 per share of Series B mandatory convertible preferred stock payable on October 1, 2026 to preferred stockholders of record on September 15, 2026.

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