Operating margins remain highly inconsistent, oscillating between a negative 14.3% in 2024Q1 and a peak of 33.2% in 2025Q3, reflecting significant variability in revenue recognition.
| Net Interest Income | -9.84M | -22.79M | 15.59M | -23.75M | -23.31M | 32.41M | 10.74M | -25.68M | -26.47M |
| NII Growth % | 243.28% | -246.19% | 165.65% | -1.85% | -171.93% | 201.72% | 141.83% | 2.98% | - |
| Net Interest Margin % | -1.43% | -2.8% | 2.54% | -4.7% | -4.77% | 5.57% | 1.7% | -6.88% | -7.12% |
| Interest Income | 2.42M | 0 | 15.59M | 0 | 0 | 52.49M | 10.74M | 0 | 0 |
| Interest Expense | 12.26M | 22.79M | 0 | 23.75M | 23.31M | 20.08M | 0 | 25.68M | 26.47M |
| Loan Loss Provision | 85.95M | -22.79M | 288.08M | 332.3M | 254M | 313.75M | 388.46M | 217.29M | 183.95M |
| Non-Interest Income | 555.04M | 565.55M | 507.88M | 451.99M | 452.52M | 525.07M | 422.39M | 416.4M | 389.62M |
| Non-Interest Income % | 99.57% | 100% | 97.02% | 100% | 100% | 90.91% | 97.52% | 100% | 100% |
| Total Revenue | 557.46M | 565.55M | 523.47M | 451.99M | 452.52M | 577.56M | 433.14M | 416.4M | 389.62M |
| Revenue Growth % | 16.71% | 8.04% | 15.82% | -0.12% | -21.65% | 33.34% | 4.02% | 6.87% | - |
| Non-Interest Expense | 322.12M | 415.84M | 161.92M | 107.79M | 94.89M | 134.32M | 87.79M | 88.47M | 104.08M |
| Efficiency Ratio | 57.78% | 73.53% | 30.93% | 23.85% | 20.97% | 23.26% | 20.27% | 21.25% | 26.71% |
| Operating Income | 137.22M | 149.71M | 73.48M | -11.85M | 80.31M | 109.4M | -43.12M | 84.97M | 75.13M |
| Operating Margin % | 24.62% | 26.47% | 14.04% | -2.62% | 17.75% | 18.94% | -9.95% | 20.41% | 19.28% |
| Operating Income Growth % | - | 103.75% | 720.29% | -114.75% | -26.59% | 353.75% | -150.74% | 13.1% | - |
| Pretax Income | 173.32M | 154.94M | 50.16M | -21.51M | 89.09M | 153.06M | -78.7M | 62.32M | 65.08M |
| Pretax Margin % | 31.09% | 27.4% | 9.58% | -4.76% | 19.69% | 26.5% | -18.17% | 14.97% | 16.7% |
| Income Tax | 12.45M | 12.9M | 13.56M | 7.69M | 9.61M | 10.99M | 4.51M | 2.32M | 1.4M |
| Effective Tax Rate % | 7.18% | 8.33% | 27.03% | -35.75% | 10.79% | 7.18% | -5.73% | 3.72% | 2.14% |
| Net Income | 50.38M | 45.37M | 18.7M | 12.77M | 19.82M | 21.48M | 4.05M | 0 | 0 |
| Net Margin % | 9.04% | 8.02% | 3.57% | 2.83% | 4.38% | 3.72% | 0.93% | 0% | 0% |
| Net Income Growth % | 195.73% | 142.69% | 46.35% | -35.55% | -7.74% | 430.55% | - | - | - |
| Net Income (Continuing) | 160.87M | 142.04M | 36.6M | -29.21M | 79.48M | 142.07M | -83.2M | 60M | 63.69M |
| EPS (Diluted) | 0.25 | 0.42 | 0.03 | -0.28 | 0.28 | 0.49 | 0.18 | 1.50 | 1.60 |
| EPS Growth % | 315.24% | 1124.49% | 112.25% | -200% | -42.86% | 172.22% | -88% | -6.25% | - |
| EPS (Basic) | - | 0.87 | 0.42 | -1.23 | 0.45 | 0.49 | 0.10 | 1.50 | 1.60 |
| Diluted Shares Outstanding | 204.76M | 197.3M | 190.59M | 187.43M | 188.57M | 43.77M | 39.98M | 39.91M | 39.91M |
Performance fee realization volatility
As reported in recent financial statements, GCMG's gross margin has fluctuated significantly, ranging from 32.1% in 2023Q4 to 100% in 2025Q2, suggesting that the firm's revenue recognition or cost allocation methodologies may be subject to substantial period-to-period variability that complicates core profitability assessment for institutional investors.
The extreme volatility in reported gross margins indicates that the firm's cost structure is not as stable as a traditional asset manager might suggest. Investors should monitor whether these swings are driven by the timing of performance-related revenue or shifts in the underlying asset mix, as such inconsistency makes it difficult to forecast long-term margin sustainability.
Based on GCMG's reported figures, operating margins have oscillated between a negative 14.3% in 2024Q1 and a peak of 33.2% in 2025Q3, reflecting a lack of consistent operating leverage that may be tied to the firm's high fixed-cost base and lumpy revenue recognition patterns.
The inability to maintain a consistent operating margin suggests that the firm's SG&A expenses are not scaling efficiently with revenue growth. This volatility warrants further investigation into whether management can effectively control compensation and administrative costs during periods of lower fee-earning activity.
According to recent SEC filings, GCMG's net income is frequently impacted by significant stock-based compensation charges, which reached $25.6 million in 2024Q1, suggesting that GAAP earnings may significantly understate the true economic cost of talent retention and dilution for the firm's public shareholders.
The high level of share-based payments relative to net income indicates that reported EPS may be a poor proxy for cash-generative capacity. Investors should adjust for these non-cash expenses to better understand the firm's underlying ability to generate sustainable earnings for equity holders.
Analysis of the income statement suggests that GCMG's reliance on volatile performance fees, combined with inconsistent operating margins, may leave the firm vulnerable to market downturns, as evidenced by the sharp earnings contraction observed in periods where performance-related revenue failed to materialize as expected.
Short-sellers may focus on the firm's inability to demonstrate a stable, fee-driven earnings floor, which is critical for an asset manager. If the firm cannot pivot toward more predictable management fee streams, the current valuation may be at risk of compression relative to more stable peers.
Quick answers to the most common questions about buying GCMG stock.
GCM Grosvenor Inc. (GCMG) is profitable, generating $45.4M in net income for the fiscal year ending 2025 with a net profit margin of 8.0%.
GCM Grosvenor Inc. (GCMG) reported an operating income of $149.7M, resulting in an operating profit margin of 26.5%. This margin reflects the operational efficiency of the business before interest and taxes.
GCM Grosvenor Inc. (GCMG) generated $565.6M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.