Company: DBRG
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001679688-25-000100
Chunk: 92

Company: DigitalBridge Group, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 92
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 as a net realized earnings measure that is used in decision making related to distributions and reinvestments. 

Income taxes applied in the determination of DE generally represents GAAP income tax related to continued operations, and includes the benefit of deductions available to the Company on certain expense items excluded from DE (for example, equity-based compensation). As the income tax benefit arising from these excluded expense items do affect actual income tax paid or payable by the Company in any one period, the Company believes their inclusion in DE is appropriate to more accurately reflect amounts available for distribution.

Non-GAAP Results

Results of our non-GAAP measures attributable to the Operating Company were determined as follows: 

Three Months Ended September 30,(In thousands)20252024ChangeFee revenue (1)$93,524 $76,664 $16,860 Cash compensation (1)(40,166)(33,774)(6,392)Administrative and other expenses (1)(16,064)(16,736)672 Fee-Related Earnings—attributable to Operating Company37,294 26,154 11,140 Realized principal investment income (loss)394 2,129 (1,735)Interest, dividend and other income3,144 2,828 316 Interest expense and preferred dividends(18,023)(18,245)222 Placement fees and other(1,319)(1,247)(72)Income tax benefit (expense)221 (887)1,108 Distributable Earnings, after tax—attributable to Operating Company$21,711 $10,732 10,979 ________

(1)    These amounts are determined based upon the definition of FRE as described above and therefore, differ from those presented on the consolidated statements of operations.

Fee-Related Earnings

FRE was $11.1 million or 43% higher at $37.3 million in the third quarter of 2025 compared to $26.2 million in the same period in 2024. FRE margin improved to 40% compared with 34% a year ago. 

Fee revenue increased $16.9 million or 22%, partially offset by higher operating cost. The increase in fee revenue is attributable to capital raised for our third flagship fund, which contributed an additional $11.5 million of fees (of which $3.4 million was incremental catch-up fees), and new co-investment vehicles, as well as additional capital deployments. This was partially