The firm maintains high profitability with operating margins peaking at 75.5% in 2025Q1, though gross margins remain volatile, fluctuating from 99.0% in 2025Q3 to 82.3% in 2026Q1.
| Sales/Revenue | 5.06B | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 4.35B | 4.57B | 2.83B | 3.01B | 2.93B | 2.38B | 1.64B |
| Gross Margin % | 85.83% | 93.17% | 71% | 74.2% | 80.7% | 77.23% | 75.91% |
| Gross Profit Growth % | - | 61.59% | -6.24% | 2.97% | 22.78% | 45.81% | - |
| Operating Expenses | 1.34B | 1.75B | 64M | 56M | 81M | 132M | 114M |
| OpEx % of Revenue | - | 35.6% | 1.61% | 1.38% | 2.23% | 4.28% | 5.29% |
| Selling, General & Admin | 18M | 0 | 64M | 56M | 81M | 132M | 114M |
| SG&A % of Revenue | - | - | 1.61% | 1.38% | 2.23% | 4.28% | 5.29% |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | 3B | 2.82B | 2.76B | 2.96B | 2.85B | 2.25B | 1.52B |
| Operating Margin % | 59.32% | 57.57% | 69.4% | 72.82% | 78.47% | 72.95% | 70.61% |
| Operating Income Growth % | - | 2.16% | -6.63% | 3.94% | 26.38% | 48.06% | - |
| EBITDA | 3.07B | 2.89B | 2.78B | 2.97B | 2.86B | 2.26B | 1.53B |
| EBITDA Margin % | 60.58% | 58.98% | 69.75% | 73.17% | 78.83% | 73.31% | 70.94% |
| EBITDA Growth % | 2.55% | 4.13% | -6.59% | 3.95% | 26.34% | 48.1% | - |
| D&A (Non-Cash Add-back) | 64.2M | 69.19M | 14M | 14M | 13M | 11M | 7M |
| EBIT | 3.03B | 2.98B | 2.42B | 2.62B | 2.61B | 2.07B | 1.36B |
| Net Interest Income | 204.13M | 212.66M | -136M | -71M | -3M | -382M | -377M |
| Interest Income | 364.48M | 212.66M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 160.35M | 0 | 136M | 71M | 3M | 382M | 377M |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | 3.03B | 2.98B | 2.55B | 2.55B | 3.49B | 3.33B | 783M |
| Pretax Margin % | 59.94% | 60.72% | 63.97% | 62.88% | 96.28% | 107.94% | 36.35% |
| Income Tax | 556.54M | 536.23M | 438M | 417M | 627M | 504M | 226M |
| Effective Tax Rate % | 18.34% | 18.02% | 17.2% | 16.33% | 17.96% | 15.13% | 28.86% |
| Net Income | 2.51B | 2.53B | 2.17B | 1.84B | 1.92B | 1.85B | 382M |
| Net Margin % | 49.64% | 51.59% | 54.47% | 45.27% | 52.8% | 59.96% | 17.73% |
| Net Income Growth % | 8.88% | 16.63% | 17.89% | -3.97% | 3.46% | 384.56% | - |
| Net Income (Continuing) | 2.48B | 2.44B | 2.11B | 2.14B | 2.87B | 2.83B | 557M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.65B | 1.4B | 31M | 9M | 0 | 4.53B | 2.84B |
| EPS (Diluted) | 1.55 | 1.55 | 1.28 | 1.16 | 0.05 | 4.64 | 0.99 |
| EPS Growth % | 10.39% | 21.09% | 10.51% | 2311.92% | -98.97% | 368.69% | - |
| EPS (Basic) | - | 1.57 | 1.33 | 1.17 | 0.05 | 4.64 | 0.99 |
| Diluted Shares Outstanding | 1.62B | 1.63B | 1.68B | 1.56B | 1.6B | 1.61B | 1.61B |
| Basic Shares Outstanding | 1.61B | 1.61B | 1.64B | 1.56B | 1.58B | 1.61B | 1.61B |
| Dividend Payout Ratio | - | - | 29.06% | 27.46% | 166.27% | 75.36% | 330.89% |
Parental dependency and complexity
As reported in recent financial statements, BAM's gross margin fluctuated significantly from a high of 99.0% in 2025Q3 to 82.3% in 2026Q1, suggesting that while the firm maintains an asset-light model, the timing of fee recognition and performance-based carry creates inherent quarterly variability in profitability.
The wide variance in gross margins indicates that the firm's revenue is not purely linear, likely reflecting the episodic nature of carried interest realizations. Investors should monitor whether these fluctuations represent a structural shift in the fee mix toward lower-margin products or merely the timing of fund exits.
Based on the provided income statement data, operating margins have demonstrated resilience, peaking at 75.5% in 2025Q1, which suggests that the firm successfully leverages its existing infrastructure to manage incremental fee-bearing capital without a proportional increase in operating expenses, maintaining a lean cost structure relative to peers.
The ability to maintain operating margins above 60% in most periods highlights the scalability of the asset management platform. However, the recent compression to 48.7% in 2026Q1 warrants further investigation into whether this reflects a temporary increase in overhead or a more permanent shift in the cost of retaining specialized investment talent.
According to the income statement, stock-based compensation reached a peak of $166 million in 2024Q4, which significantly impacted net income and suggests that equity-based incentives remain a substantial, albeit non-cash, component of the firm's total compensation strategy that investors must reconcile when evaluating true economic profitability.
The volatility in net income is frequently tied to these large, periodic stock-based compensation charges, which can obscure the underlying operational performance. Analysts should focus on Fee-Related Earnings as a more reliable proxy for cash-generative capacity, as net income figures appear heavily influenced by these accounting adjustments.
While BAM maintains a clean balance sheet, the firm's reliance on Brookfield Corporation for anchor capital and reputation, as noted in recent market analysis, suggests that any localized distress within the parent's real estate portfolio could disproportionately impair the manager's future fundraising and fee-earning potential.
The structural symbiosis with the parent company creates a unique risk profile that is not fully captured by the manager's standalone income statement. Investors should remain cautious regarding the potential for cross-affiliate conflicts or contagion risks that could arise if the parent's capital-intensive assets face prolonged valuation pressure.
Quick answers to the most common questions about buying BAM stock.
Brookfield Asset Management Ltd. (BAM) is profitable, generating $2.53B in net income for the fiscal year ending 2025 with a net profit margin of 51.6%.
Brookfield Asset Management Ltd. (BAM) reported an operating income of $2.82B, resulting in an operating profit margin of 57.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Brookfield Asset Management Ltd. (BAM) generated $4.57B in gross profit for the year, representing a gross profit margin of 93.2%. This demonstrates the company's core pricing power and production efficiency.