Revenue is overwhelmingly fee-driven with non-interest income representing 100.9% of total revenue in Q2 2026, yet operating margin remains highly volatile, ranging from -26.7% to 15.2% over the past ten quarters due to dominant and unpredictable loan loss provisions.
KKR & Co. Inc. (KKR) annual income statement — 18-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 | Dec'08 |
|---|
| Net Interest Income | 2.21B | 105.18M | 152.61M | 423.48M | 257.32M | 353.44M | 433.57M | 374.96M | 520.5M | 433.52M | 231.86M | 645.97M | 592.01M | 375.14M | 289.43M | 249.19M | 173.72M | 62.48M | 4.04M |
| NII Growth % | 5574.85% | -31.08% | -63.96% | 64.57% | -27.19% | -18.48% | 15.63% | -27.96% | 20.06% | 86.98% | -64.11% | 9.11% | 57.81% | 29.61% | 16.15% | 43.44% | 178.05% | 1446.51% | - |
| Net Interest Margin % | 0.53% | 0.03% | 0.04% | 0.13% | 0.09% | 0.13% | 0.54% | 0.62% | 1.03% | 0.95% | 0.59% | 0.91% | 0.9% | 0.73% | 0.65% | 0.62% | 0.45% | 0.21% | 0.02% |
| Interest Income | 5.34B | 2.4B | 3.46B | 3.37B | 1.9B | 1.49B | 1.4B | 1.42B | 1.4B | 1.24B | 1.02B | 1.22B | 909.21M | 474.76M | 358.6M | 321.94M | 226.82M | 142.12M | 129.6M |
| Interest Expense | 3.13B | 2.3B | 3.31B | 2.95B | 1.64B | 1.13B | 969.87M | 1.04B | 876.03M | 808.9M | 789.95M | 573.23M | 317.19M | 99.62M | 69.16M | 72.76M | 53.1M | 79.64M | 125.56M |
| Loan Loss Provision | 9.15B | 8.91B | 14.49B | 6.52B | 1.92B | 8.08B | 1.18B | 1.07B | 498.33M | 886.59M | 273.86M | 607.37M | 946.66M | 1.17B | 1.21B | 795.99M | 1.29B | -79.64M | -125.56M |
| Non-Interest Income | 15.3B | 16.86B | 18.18B | 10.95B | 3.67B | 14.62B | 2.83B | 2.8B | 999.3M | 2.31B | 1.02B | -175.43M | 200.8M | 287.79M | 209.84M | 401.68M | 208.56M | 7.94B | -12.76B |
| Non-Interest Income % | 87.36% | 99.38% | 99.17% | 96.28% | 93.45% | 97.64% | 86.7% | 88.2% | 65.75% | 84.23% | 81.45% | -37.28% | 25.33% | 43.41% | 42.03% | 61.71% | 54.56% | 99.22% | 100.03% |
| Total Net Revenue | 17.52B | 16.96B | 18.33B | 11.38B | 3.93B | 14.97B | 3.26B | 3.18B | 1.52B | 2.75B | 1.25B | 470.54M | 792.82M | 662.93M | 499.28M | 650.86M | 382.29M | 8.01B | -12.76B |
| Revenue Growth % | 36.42% | -7.47% | 61.15% | 189.7% | -73.77% | 359.18% | 2.63% | 109.06% | -44.7% | 119.86% | 165.66% | -40.65% | 19.59% | 32.78% | -23.29% | 70.25% | -95.22% | 162.76% | - |
| Non-Interest Expense | 5.11B | 7.59B | 2.92B | 2.72B | 2.35B | 1.94B | 780.64M | 791.54M | 715.11M | 641.2M | 631.66M | 690.63M | 932.22M | 500.55M | 317.93M | 345.26M | 418.21M | 8.09B | -12.63B |
| Efficiency Ratio | 29.16% | 44.76% | 15.9% | 23.93% | 59.9% | 12.97% | 23.94% | 24.91% | 47.05% | 23.33% | 50.53% | 146.77% | 117.58% | 75.51% | 63.68% | 53.05% | 109.4% | 100.99% | 99.02% |
| Operating Income | 3.25B | 461.96M | 926.2M | 2.14B | -345.58M | 4.95B | 1.3B | 1.31B | 306.36M | 1.22B | 344.54M | -827.46M | -1.09B | -1B | -1.03B | -490.38M | -1.33B | 0 | 0 |
| Operating Margin % | 18.58% | 2.72% | 5.05% | 18.79% | -8.8% | 33.08% | 39.8% | 41.31% | 20.16% | 44.41% | 27.56% | -175.85% | -136.99% | -151.54% | -206.37% | -75.34% | -347.19% | 0% | 0% |
| Operating Income Growth % | - | -50.12% | -56.68% | 718.72% | -106.98% | 281.68% | -1.12% | 328.41% | -74.9% | 254.26% | 141.64% | 23.81% | -8.11% | 2.5% | -110.11% | 63.05% | - | - | - |
| Pretax Income | 6.64B | 7.1B | 5.86B | 6.55B | -292.22M | 13.85B | 5.73B | 5.17B | 2.26B | 2.78B | 975.23M | 5.34B | 5.46B | 7.89B | 8.07B | 965.73M | 7.85B | 6.89B | -13.05B |
| Pretax Margin % | 37.89% | 41.85% | 31.96% | 57.61% | -7.44% | 92.47% | 175.61% | 162.66% | 148.5% | 101.31% | 78.01% | 1135.22% | 688.52% | 1190.5% | 1616.66% | 148.38% | 2053.91% | 86.06% | 102.3% |
| Income Tax | 1.12B | 953.75M | 954.4M | 1.2B | 125.39M | 1.39B | 609.1M | 528.75M | -194.1M | 224.33M | 24.56M | 66.64M | 63.67M | 37.93M | 43.41M | 89.25M | 75.36M | 37M | 6.79M |
| Effective Tax Rate % | 16.94% | 13.43% | 16.29% | 18.27% | -42.91% | 10.07% | 10.64% | 10.23% | -8.6% | 8.06% | 2.52% | 1.25% | 1.17% | 0.48% | 0.54% | 9.24% | 0.96% | 0.54% | -0.05% |
| Net Income | 3.15B | 2.37B | 3.08B | 3.73B | -521.66M | 4.73B | 2B | 2.01B | 1.13B | 1.02B | 309.31M | 488.48M | 477.61M | 691.23M | 560.84M | 1.92M | 333.18M | 849.68M | -1.2B |
| Net Margin % | 18% | 13.97% | 16.78% | 32.81% | -13.28% | 31.6% | 61.41% | 63.1% | 74.42% | 37.05% | 24.74% | 103.81% | 60.24% | 104.27% | 112.33% | 0.3% | 87.15% | 10.61% | 9.44% |
| Net Income Growth % | 53.73% | -22.94% | -17.58% | 815.45% | -111.02% | 136.32% | -0.13% | 77.27% | 11.07% | 229.22% | -36.68% | 2.28% | -30.9% | 23.25% | 29095% | -99.42% | -60.79% | 170.54% | - |
| Net Income (Continuing) | 5.51B | 6.15B | 4.91B | 5.36B | -417.61M | 12.45B | 5.12B | 4.64B | 2.45B | 2.56B | 950.66M | 5.28B | 5.4B | 7.85B | 8.03B | 876.49M | 7.78B | 6.85B | -13.06B |
| EPS (Diluted) | 3.33 | 2.34 | 3.28 | 4.09 | -0.79 | 7.42 | 3.37 | 3.54 | 2.06 | 1.95 | 0.59 | 1.01 | 1.16 | 2.30 | 2.21 | 0.01 | 1.62 | 4.15 | -5.88 |
| EPS Growth % | 51.43% | -28.66% | -19.8% | 617.72% | -110.65% | 120.18% | -4.8% | 71.84% | 5.64% | 230.51% | -41.58% | -12.93% | -49.57% | 4.07% | 22000% | -99.38% | -60.96% | 170.58% | - |
| EPS (Basic) | - | 2.51 | 3.47 | 4.24 | -0.79 | 7.95 | 3.45 | 3.62 | 2.14 | 2.10 | 0.64 | 1.09 | 1.25 | 2.51 | 2.35 | 0.01 | 1.62 | 4.15 | -5.88 |
| Diluted Shares Outstanding | 945.58M | 955.76M | 938.9M | 911.79M | 749.5M | 633.09M | 583.69M | 557.69M | 533.71M | 506.29M | 483.43M | 482.7M | 412.05M | 300.25M | 254.09M | 222.52M | 206.04M | 204.9M | 204.9M |
Quick answers to the most common questions about buying KKR stock.
For fiscal year 2025, KKR & Co. Inc. (KKR) reported total revenue of $16.96B.
KKR & Co. Inc. (KKR) is profitable, generating $2.37B in net income for the fiscal year ending 2025 with a net profit margin of 14.0%.
KKR & Co. Inc. (KKR) reported an operating income of $462.0M, resulting in an operating profit margin of 2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
KKR & Co. Inc. (KKR) generated $8.06B in gross profit for the year, representing a gross profit margin of 47.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Earnings volatility from realization cycles
Metrics are mathematically derived from official filings.
Net Interest Income Negligible Amid Insurance Consolidation
Net interest income is immaterial to KKR's earnings model, with NII contributing less than 1% of total revenue in recent quarters, as reported in financial statements, reflecting the firm's asset management and insurance-driven revenue structure.
The negligible and often negative NII figures indicate that KKR's balance sheet is not deployed for traditional net interest spread generation. Instead, the firm's interest-related economics are embedded within the Global Atlantic insurance segment's investment income and the credit platform's origination activities, which are captured in non-interest income lines. This structure means KKR's earnings are driven by fee generation and investment performance, not by rate-sensitive net interest margins.
Operating Margin Volatility Masks Core Fee Strength
The reported operating margin of 2.7% in Q2 2026 is highly volatile, ranging from -26.7% to 15.2% over the past ten quarters, suggesting significant noise from non-cash items and insurance consolidation rather than reflecting underlying operational efficiency.
The extreme swings in operating margin, including a negative reading in Q1 2025, are inconsistent with a traditional asset manager and point to the material impact of mark-to-market adjustments on the balance sheet and the consolidation of Global Atlantic's insurance operations. Investors should focus on the Fee Related Earnings (FRE) margin, which management highlighted as a record, as a more stable indicator of the core platform's profitability. The current margin compression appears to be a function of accounting treatment and realization timing, not a deterioration in the fee-generating business.
Provision Expense Dominates Income Statement Dynamics
Loan loss provisions have been the single largest and most volatile expense line, reaching $3.8 billion in Q2 2026 and accounting for over 66% of total revenue, indicating that credit cycle management is a primary driver of reported earnings.
The magnitude of provision expense, which has swung from $1.4 billion to $7.8 billion in recent quarters, underscores the significant credit exposure embedded within KKR's insurance and credit platforms. This volatility suggests that earnings are highly sensitive to the credit quality of the underlying loan and bond portfolios, particularly in commercial real estate and direct lending. The provision levels warrant close monitoring, as they can obscure the performance of the core asset management franchise and may indicate proactive reserve building or specific portfolio stress.
Fee Income Provides Stability Amid Revenue Contraction
Non-interest fee income consistently represents over 97% of total revenue, providing a stable base, yet total revenue still declined 7.5% year-over-year in Q2 2026, suggesting that lower realization and investment income are offsetting the fee growth.
The dominance of fee income confirms the asset-light, recurring revenue model at the heart of KKR's business. However, the negative revenue growth despite this stable fee base indicates that the firm is experiencing a significant drag from its principal investment and performance fee components. This implies that while the management fee stream is growing, it is not yet large enough to fully offset the cyclical downturn in realization activity and mark-to-market losses, creating a period of top-line pressure.
Q2 2026 Beat Signals FRE Momentum, Not Revenue Recovery
The Q2 2026 EPS beat of $1.63 versus the $1.60 consensus, as reported in recent filings, appears driven by record Fee Related Earnings rather than a top-line recovery, marking a potential inflection in earnings quality toward more durable sources.
This quarter represents a key inflection where management's emphasis on record FRE and Adjusted Net Income suggests the core fee business is scaling effectively. The beat occurred despite negative revenue growth, indicating that cost discipline and the mix shift toward higher-margin fee streams are supporting profitability. This could signal the beginning of a period where earnings become less dependent on volatile performance fees, though the sustainability of this trend through a full market cycle remains to be seen.
Earnings Quality Challenged by Provision and Realization Volatility
The strongest challenge to KKR's earnings quality is the extreme volatility in provision expense and non-interest income, which together cause net income to swing from -$185.9 million to $1.1 billion quarter-to-quarter, making sustainable earnings trajectory difficult to assess.
While management highlights record FRE, the consolidated income statement is dominated by multi-billion dollar swings in provisions and investment gains/losses. This volatility suggests that GAAP earnings are a poor proxy for underlying business performance and that the firm's reported profitability is heavily influenced by credit provisioning decisions and the timing of realizations. Investors relying on headline EPS may misjudge the firm's core earning power, as the most predictable component (management fees) is a fraction of the total revenue and profit.