Company: DBRG
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001679688-25-000043
Chunk: 58

Company: DigitalBridge Group, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 58
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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 March 31,(In thousands)20252024ChangeFee revenue (1)$90,229 $72,791 $17,438 Cash compensation (1)(38,096)(36,893)(1,203)Administrative and other expenses (1)(17,183)(16,335)(848)Fee-Related Earnings—attributable to Operating Company34,950 19,563 15,387 Realized principal investment income34,907 2,301 32,606 Distributed carried interest and incentive fees subject to realization events, net of associated expense allocation864 99 765 Interest, dividend and other income2,941 4,375 (1,434)Interest expense and preferred dividends(18,010)(19,162)1,152 Placement fees and other expenses(647)(3,698)3,051 Income tax benefit (expense)(301)(1,246)945 Distributable Earnings, after tax—attributable to Operating Company$54,704 $2,232 52,472 ________

(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 $15.4 million or 79% higher at $35.0 million in the first quarter of 2025 compared to $19.6 million in the same period in 2024. FRE margin in the first quarter of 2025 improved to 39% from 27% a year ago. 

Fee revenue increased $17.4 million or 24%, 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 $20.6 million of fees, including $10.7 million of catch-up fees. This was partially offset by