Revenue is dominated by volatile non-interest income, which constituted 70.4% of total revenue in Q2 2026, while net interest margin compression to 1.2% and the emergence of a $249.1 million provision expense highlight the strain on core profitability.
The Carlyle Group Inc. (CG) annual income statement — 17-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Net Interest Income | 1.1B | 2.07B | 109.9M | 181.6M | 96.2M | 30.2M | 43.7M | 75.7M | 61.7M | -261.6M | -206.6M | -247.8M | -387.5M | -81.2M | 4.6M | 0 | 0 | 0 |
| NII Growth % | 28042.75% | 1782.44% | -39.48% | 88.77% | 218.54% | -30.89% | -42.27% | 22.69% | 123.59% | -26.62% | 16.63% | 36.05% | -377.22% | -1865.22% | - | - | - | - |
| Net Interest Margin % | 3.91% | 7.11% | 0.48% | 0.86% | 0.45% | 0.14% | 0.28% | 0.55% | 0.48% | -2.13% | -2.07% | -0.77% | -1.08% | -0.23% | 0.01% | 0% | 0% | 0% |
| Interest Income | 1.43B | 2.19B | 795.8M | 724.5M | 418.2M | 322M | 301.2M | 289.6M | 308.5M | 204M | 190.8M | 994.1M | 885.5M | 888.7M | 787.3M | 0 | 0 | 0 |
| Interest Expense | 322.2M | 123.9M | 685.9M | 542.9M | 322M | 291.8M | 257.5M | 213.9M | 246.8M | 465.6M | 397.4M | 1.24B | 1.27B | 969.9M | 782.7M | 0 | 0 | 0 |
| Loan Loss Provision | 840.1M | 1.54B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.39B | 429M | 348.4M |
| Non-Interest Income | 2.54B | 2.71B | 3.29B | 1.14B | 3.26B | 5.5B | 1.83B | 2.63B | 1.75B | 2.57B | 1.74B | 2.37B | 3.01B | 3.07B | 3.63B | 1.91B | 2.14B | 1.32B |
| Non-Interest Income % | 69.7% | 56.66% | 96.77% | 86.29% | 97.13% | 99.45% | 97.67% | 97.2% | 96.59% | 111.32% | 113.44% | 111.7% | 114.78% | 102.72% | 99.87% | 100% | 100% | 100% |
| Total Net Revenue | 3.64B | 4.77B | 3.4B | 1.32B | 3.36B | 5.53B | 1.88B | 2.7B | 1.81B | 2.31B | 1.54B | 2.12B | 2.62B | 2.98B | 3.63B | 1.91B | 2.14B | 1.32B |
| Revenue Growth % | -1.86% | 40.31% | 156.94% | -60.53% | -39.35% | 194.76% | -30.56% | 49.43% | -21.73% | 50.35% | -27.43% | -19.21% | -12.16% | -17.8% | 89.81% | -10.56% | 62.37% | - |
| Non-Interest Expense | 2.04B | 1.95B | 2.01B | 1.93B | 1.78B | 1.5B | 1.3B | 1.47B | 1.45B | 1.18B | 1.49B | 1.72B | 1.63B | 1.54B | 1.19B | -978M | -15.5M | 256.5M |
| Efficiency Ratio | 56.12% | 40.77% | 59.04% | 145.38% | 53.13% | 27.19% | 69.09% | 54.36% | 80.08% | 51% | 97.05% | 81.01% | 62.16% | 51.61% | 32.8% | -51.13% | -0.72% | 19.47% |
| Operating Income | 757.4M | 1.28B | 1.39B | -600.9M | 1.57B | 4.03B | 580M | 1.23B | 360.2M | 1.13B | 45.3M | 402.2M | 991.9M | 1.44B | 2.44B | 1.5B | 1.73B | 712.2M |
| Operating Margin % | 20.8% | 26.87% | 40.96% | -45.38% | 46.87% | 72.81% | 30.91% | 45.64% | 19.92% | 49% | 2.95% | 18.99% | 37.84% | 48.39% | 67.2% | 78.32% | 80.66% | 54.07% |
| Operating Income Growth % | - | -7.95% | 331.94% | -138.21% | -60.96% | 594.4% | -52.98% | 242.42% | -68.19% | 2399.56% | -88.74% | -59.45% | -31.31% | -40.82% | 62.86% | -13.15% | 142.22% | - |
| Pretax Income | 642.4M | 1.16B | 1.39B | -600.9M | 1.57B | 4.03B | 580M | 1.23B | 360.2M | 1.13B | 45.3M | 402.2M | 991.9M | 1.44B | 2.44B | 1.18B | 1.48B | 678.4M |
| Pretax Margin % | 17.65% | 24.28% | 40.96% | -45.38% | 46.87% | 72.81% | 30.91% | 45.64% | 19.92% | 49% | 2.95% | 18.99% | 37.84% | 48.39% | 67.2% | 61.84% | 69.19% | 51.51% |
| Income Tax | 101.5M | 214.5M | 302.6M | -104.2M | 287.8M | 982.3M | 197.2M | 49M | 31.3M | 124.9M | 30M | 2.1M | 76.8M | 96.2M | 40.4M | 28.5M | 20.3M | 14.8M |
| Effective Tax Rate % | 15.8% | 18.5% | 21.71% | 17.34% | 18.3% | 24.39% | 34% | 3.97% | 8.69% | 11.03% | 66.23% | 0.52% | 7.74% | 6.66% | 1.66% | 2.41% | 1.37% | 2.18% |
| Net Income | 363.9M | 808.7M | 1.02B | -608.4M | 1.23B | 2.97B | 348.2M | 380.9M | 116.5M | 244.1M | 6.4M | -18.4M | 85.8M | 104.1M | 20.3M | 1.36B | 1.53B | 694.1M |
| Net Margin % | 10% | 16.94% | 29.99% | -45.94% | 36.51% | 53.77% | 18.55% | 14.09% | 6.44% | 10.56% | 0.42% | -0.87% | 3.27% | 3.49% | 0.56% | 70.94% | 71.34% | 52.7% |
| Net Income Growth % | -71.03% | -20.75% | 267.72% | -149.67% | -58.82% | 754.31% | -8.58% | 226.95% | -52.27% | 3714.06% | 134.78% | -121.45% | -17.58% | 412.81% | -98.5% | -11.06% | 119.8% | - |
| Net Income (Continuing) | 540.9M | 944.7M | 1.09B | -496.7M | 1.28B | 3.05B | 382.8M | 1.18B | 328.9M | 1.01B | 15.3M | 400.1M | 915.1M | 1.35B | 2.4B | 1.15B | 1.46B | 663.6M |
| EPS (Diluted) | 0.99 | 2.18 | 2.77 | -1.68 | 3.35 | 8.20 | 0.97 | 2.82 | 0.82 | 2.38 | -0.08 | -0.06 | 0.29 | 2.05 | 0.07 | 4.46 | 45.79 | 20.83 |
| EPS Growth % | -71.86% | -21.3% | 264.88% | -150.15% | -59.15% | 745.36% | -65.6% | 243.9% | -65.55% | 3075% | -43.11% | -119.28% | -85.85% | 2841.18% | -98.44% | -90.26% | 119.83% | - |
| EPS (Basic) | - | 2.25 | 2.85 | -1.68 | 3.39 | 8.37 | 0.99 | 3.05 | 0.89 | 2.58 | 0.08 | -0.27 | 1.35 | 2.24 | 0.48 | 4.46 | 50.02 | 22.76 |
| Diluted Shares Outstanding | 367.3M | 370.9M | 368.02M | 361.4M | 365.71M | 362.57M | 358.39M | 122.63M | 113.39M | 100.08M | 308.52M | 298.74M | 296.15M | 278.25M | 291.38M | 316.81M | 304.5M | 304.5M |
Quick answers to the most common questions about buying CG stock.
For fiscal year 2025, The Carlyle Group Inc. (CG) reported total revenue of $4.77B. This represents a 262.4% increase compared to $1.32B in 2009.
The Carlyle Group Inc. (CG) is profitable, generating $808.7M in net income for the fiscal year ending 2025 with a net profit margin of 16.9%.
The Carlyle Group Inc. (CG) reported an operating income of $1.28B, resulting in an operating profit margin of 26.9%. This margin reflects the operational efficiency of the business before interest and taxes.
The Carlyle Group Inc. (CG) generated $3.23B in gross profit for the year, representing a gross profit margin of 67.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Lumpy performance fee realization
Metrics are mathematically derived from official filings.
NII Volatility Masks Underlying Credit Growth
Net interest income has swung from a $420.3 million loss in Q1 2026 to a $329.4 million gain in Q2 2026, a 254.4% quarter-over-quarter increase, suggesting significant volatility in the firm's credit portfolio valuation or funding dynamics.
The extreme NII volatility, including negative quarters, is atypical for a traditional bank and likely reflects mark-to-market movements on the firm's credit and investment portfolio rather than core lending activity. This pattern indicates that NII is not a reliable driver of recurring earnings for Carlyle, and investors should focus on fee-related metrics instead. The recent positive swing may be driven by favorable credit spread movements or portfolio repositioning, but its sustainability is questionable given the historical pattern.
NIM Compression Highlights Non-Interest Revenue Dominance
Net interest margin collapsed to 1.2% in Q2 2026 from 4.1% in Q4 2025, while non-interest income constituted 70.4% of total revenue, underscoring that Carlyle's earnings power is fundamentally tied to fee generation and performance realizations.
The minimal and volatile NIM confirms that Carlyle operates with a fundamentally different balance sheet than a traditional depository institution, where net interest income is the core earnings engine. The firm's profitability is overwhelmingly driven by management fees and carried interest, making the NIM metric largely irrelevant for valuation. The recent NIM compression appears to be a function of portfolio composition changes rather than a structural funding cost issue, but it reinforces the need to analyze the firm through an asset management lens.
Efficiency Ratio Swings Signal Cost Structure Rigidity
The efficiency ratio deteriorated sharply to 49.5% in Q2 2026 from an artificially low 3.3% in Q1 2026, indicating that the firm's high fixed-cost base creates significant operating leverage that amplifies both positive and negative revenue swings.
The wild swings in the efficiency ratio are a direct consequence of Carlyle's revenue model, where large, lumpy performance fees can temporarily mask the underlying cost structure. The Q1 2026 ratio was distorted by a net loss, while the Q2 2026 figure of 49.5% is more representative of a normalized quarter. This volatility suggests that during periods of low realization activity, margins could compress significantly, as the firm's global infrastructure and compensation commitments persist. Investors should monitor the ratio over a full cycle to assess true operating efficiency.
Provision Expense Emergence Marks New Risk Phase
After eight consecutive quarters with zero provision expense, Carlyle recorded a $249.1 million provision in Q2 2026, a significant shift that may indicate emerging credit stress within its Global Credit portfolio or a strategic repositioning of risk reserves.
The sudden appearance of a material provision expense after a long period of zero charges is a critical development that warrants close scrutiny. This could reflect deteriorating credit quality in the firm's direct lending or structured credit holdings, potentially driven by higher interest rates impacting borrower cash flows. Alternatively, it may represent a proactive build-up of reserves in anticipation of a broader credit cycle downturn. The lack of historical provision data makes it difficult to assess the adequacy of this charge, but it introduces a new and significant variable to the firm's earnings profile.
Q2 2026 EPS Miss Signals Realization Headwinds
The Q2 2026 EPS of $0.37 missed the consensus estimate of $1.08 by 65.7%, creating a stark disconnect with the CEO's characterization of a 'strongest quarter' and suggesting that fee realization and expense timing may be under greater pressure than the top-line revenue suggests.
This earnings miss represents a critical inflection point where the narrative of platform strength clashes with bottom-line profitability. The significant gap between revenue of $1.1 billion and net income of only $137.1 million implies that high compensation expenses, likely tied to performance fees, and the new provision charge are consuming a disproportionate share of earnings. This event may force a reassessment of the firm's ability to convert top-line growth into distributable earnings, especially if the exit environment remains sluggish and performance fees remain difficult to realize.
Performance Fee Volatility Undermines Earnings Quality
The firm's reliance on non-interest income, which swung from $571.3 million in Q1 2026 to $782.1 million in Q2 2026, introduces significant earnings unpredictability that may not be fully reflected in the current valuation multiple.
The core analytical challenge to Carlyle's earnings quality is the inherent lumpiness and unpredictability of performance-related revenues, which constitute the majority of its income. The Q2 2026 EPS miss, despite strong revenue, demonstrates that the conversion of these fees into net income is not linear and is subject to significant timing and expense pressures. Furthermore, the emergence of provision expenses adds a new layer of earnings volatility that was absent in prior periods. This combination suggests that the firm's reported earnings may overstate its sustainable, cash-generative power, and investors should apply a higher discount to the performance fee component of the valuation.