APO Stock: Apollo Earnings, Athene, Dividend and Debt, Q2 2026

How Apollo earns its money: four quarters of FRE and SRE

Apollo reports three segments and one headline measure. Fee related earnings (FRE) are the asset-management segment: management fees, capital-solutions fees and recurring performance fees, less compensation and other costs. Spread related earnings (SRE) are Athene, the retirement-services segment: what its investments earn above what it pays on annuities and funding agreements (the net investment spread), less operating and financing costs. Principal investing income (PII) is realized performance fees and investment income, net of compensation. Adjusted net income (ANI), Apollo's primary non-GAAP measure, is the three added together less interest at the parent and taxes. The table lines up four quarters from the earnings presentations and the 10-Q.

Two readings are worth making from the filings and not from a quote page. First, fee and spread earnings together grew 14.8% in a year, from $1,448 million to $1,662 million (our arithmetic), and FRE alone grew 25%. Second, the GAAP column swings far more than the segment columns: the first-quarter loss of $1,930 million is the Bermuda tax item described below, not an operating loss. The earnings presentation shows an income tax provision of $2,090 million for the six months against $246 million a year earlier, and $1,694 million of tax on $283 million of pre-tax income in Q1 alone.

What FRE is made of: fees, not performance

Management fees were $1,001 million in Q2, up 22.7% from $816 million (credit $722 million, equity $279 million). Capital-solutions fees hit a quarterly record of $277 million across more than 100 transactions, two-thirds credit and one-third equity. Fee-related performance fees, the part tied to indefinite-term vehicles, were $65 million. Apollo's own explanation of the first-half rise in that line names “global wealth products, Bridge funds, and perpetual capital vehicles”. The FRE margin was 58.5%, against 57.3% a year earlier.

The presentation does not break out management fees by fund. The fees from Athene, from Athora, from the funds in the next section and from institutional funds all sit in the same $1,001 million, so no filing lets you say how much of FRE comes from the non-traded funds. What the presentation says is that the 23% growth in management fees came from Athora (after its acquisition of Pension Insurance Corporation), more third-party capital from institutional and global wealth channels, the Bridge acquisition and organic growth at Athene.

What SRE is made of: Athene's spread

Athene earned $3,686 million on fixed income and other investments in Q2 and $348 million on alternatives, paid $2,942 million of cost of funds, and kept a net investment spread of $1,129 million. After $111 million of operating expenses and $141 million of interest and financing costs, that is $877 million. The net spread was 1.14% of average net invested assets, against 1.22% a year earlier and 0.97% in Q1, on $307,190 million of average net invested assets.

The last row is the number to watch. Apollo says Athene's alternative portfolio returned 9% in Q2 and that at management's long-term expected return of 11% it “would have resulted in $76 million of additional alternative net investment income”. In Q1 the shortfall against that assumption was $188 million. So SRE already includes a lower-than-assumed contribution from alternatives, and it moves with the quarterly return on them. On July 1, 2026 Apollo estimated Q2 alternative income at approximately $350 million; the reported figure was $348 million. On October 5, 2026 it estimated approximately $375 million (pre-tax) for Q3, an annualized return of about 10%, and said the figures are unaudited and may differ materially.

Where the $1.05 trillion sits

Total AUM was $1,047.3 billion at June 30, 2026, $849.3 billion of it credit and $197.9 billion equity. The 10-Q gives the amounts managed for the two insurers, and the split changes how the headline reads.

Apollo defines perpetual capital as assets that “may only be withdrawn under certain conditions or subject to certain limitations, including satisfying required hold periods or percentage limits on the amounts that may be redeemed over a particular period”. It reports $621 billion of it, 60% of total AUM and 70% of fee-generating AUM, and the split of that $621 billion is Athene $416 billion, Athora $121 billion and everything else $84 billion. The word “perpetual” here puts an insurer's balance sheet and funds sold to individuals in the same bucket.

Part of the growth is acquisitions, not new savings: the presentation says last-twelve-month inflows primarily include $65 billion from Athora's acquisition of PIC (at the end of the first quarter of 2026) and $34 billion from Apollo's acquisition of Bridge.

The funds our readers hold, as Apollo itemizes them

The 10-Q has a table of the perpetual-capital vehicles Apollo manages, excluding Athene and Athora. These are the lines that matter for the non-traded funds we cover.

Net returns are Apollo's, on NAV, Class I shares for ADREF, ADCF and ARIS. Four things stand out.

• The four funds are 3.8% of Apollo's AUM. $39,963 million against $1,047,279 million (our arithmetic). Adding the $12.2 billion of third-party capital in Apollo Aligned Alternatives, which the 10-Q puts inside “Other”, gives $52.2 billion, 5.0% (our arithmetic). Apollo's footnote attributes the remaining $16 billion of that vehicle's net asset value to Athene, so $12.2 billion of $28 billion is third-party (our arithmetic); our AAA page has the structure.
• Apollo Asset Backed Credit Company (ABC) is not itemized. The 10-Q table has no ABC line; if Apollo reports it, it is inside “Other” ($26.5 billion), with no separate figure. See our ABC page for what its own filings show.
• ARIS's AUM rose 14.4% in one quarter on a 1% quarterly return, so most of the increase is new money or borrowing capacity rather than performance (our reading of Apollo's AUM definition). Our ARIS corporate-structure page and ARIS review cover that fund.
• ARI left the table. It was $10.1 billion at March 31. In April, Athene bought a commercial mortgage loan portfolio from ARI for $8.7 billion including accrued interest (Form 10-Q, note 16, related parties), and the 10-Q shows a $7.8 billion AUM outflow for ARI. That is Apollo selling assets from one Apollo-managed vehicle to another Apollo-owned balance sheet; our mortgage REIT dividends page covers the sector.

Why Apollo's number for ADS is not the fund's net assets

Apollo's AUM definition for “certain perpetual capital vehicles in credit” is “gross asset value plus available financing capacity”. That is why the figures differ for the same fund:

ADS carries $12.15 billion of debt against $14.00 billion of net assets at June 30, 2026. A holder who sees “$30.6 billion” in Apollo's materials is looking at a measure of the portfolio and its borrowing room, not at the value of the shares. For the fund's own tender results, monthly NAV and distribution coverage, read our Apollo Debt Solutions page; the funds' repurchase schedules are on the Apollo Diversified Credit and Apollo Diversified Real Estate pages.

Global Wealth: $3 billion in a quarter

Apollo reports fundraising from its “Global Wealth” channel as one number a quarter in the earnings presentations.

In Q2, Asset Management inflows were $38 billion “inclusive of $3 billion of fundraising from Global Wealth”, and Retirement Services inflows were $22 billion. Global Wealth was therefore 7.9% of Asset Management inflows (our arithmetic). In Q1 the presentation said that “semi-liquid products drove over 70% of the quarter's activity” in the channel. The presentations do not split the $3 billion by product, so you cannot divide it between ADS, ADREF, ARIS, AAA and others from filings.

The inflow table has a limit worth stating: Apollo's total inflows include the Athene business and acquisitions (the $115 billion in Q1 includes Athora's $65 billion PIC deal), so the share column is a rough scale, not a market-share figure.

Redemptions: what Apollo's 10-Q says and what it leaves out

The 10-Q's discussion of the business environment has one paragraph that speaks directly to non-traded fund holders. Apollo writes that “the magnified focus has corresponded to increased redemption requests within perpetual non-traded business development company structures across the industry, resulting in lower growth for these products”, and that it believes the long-term opportunity “will remain compelling across cycles”. It says private credit is generating inquiries about “liquidity, valuation methodologies, global wealth access and technology-related portfolio allocations”. The 10-Q gives no fund-level numbers for these requests, and it says there were no material changes to the risk factors in the 2025 annual report.

The headline jump, 5.2 times the year-earlier quarter (our arithmetic), is mostly one item. Taking out the $5.0 billion AP Grange prepayment leaves $2.3 billion in Q2 2026, 1.6 times the $1.4 billion of Q2 2025 (our arithmetic). That is still higher, and it is a platform-wide figure that covers all Apollo funds, not the retail funds alone. Whether ADS, ADREF, ADCF or ARIS holders were paid in full is answered only by each fund's own tender filings. Our private credit redemptions tracker puts twelve funds' latest results side by side.

Athene: inflows, outflows and the spread

Athene took in $22,069 million of gross organic inflows in Q2 and paid out $10,141 million, a net inflow of $11,928 million. Retail sales were the largest channel, followed by funding agreements.

Three facts from the presentation frame the risk. Athene's net invested assets were $314,090 million at June 30, 2026, after removing $99,508 million attributable to ADIP, a fund with outside investors that invests alongside Athene. Apollo says 98% of Athene's fixed income portfolio is invested in investment grade assets, and that 98% of $230 billion of available-for-sale securities is designated NAIC 1 or 2. And Athene had $37.0 billion of investment commitments, mostly fund contributions and mortgage loans, at June 30. Apollo's presentation puts Athene's historical average annual credit losses at 11 basis points over the past five years, against 12 for the industry group it uses.

The dividend, the buyback and the preferred conversion

The Q2 dividend of $0.5625 follows the plan Apollo announced on February 9, 2026: to raise the annual amount 10% from $2.04 to $2.25 a share starting with the first-quarter 2026 dividend, with the proviso that the board “may change the dividend policy at any time, including, without limitation to, to eliminate the dividend entirely”. Four times $0.5625 is $2.25 (our arithmetic). The 10-Q lists every dividend:

Against adjusted net income per share of $2.11 in Q2, the $0.5625 dividend is a 27% payout (our arithmetic); a payout against GAAP earnings is not meaningful for one quarter because basic GAAP EPS was $(3.27) in Q1 and $2.18 in Q2. The repurchase table shows the other half of capital return:

In Q2, $73 million of the $102 million went to offset dilution and $29 million was opportunistic; $3.03 billion remained of the $4.0 billion program approved on February 9, 2026. These are the prices Apollo itself paid, not a view on any price. Over the last twelve months Apollo says it returned $1.6 billion to stockholders and allocated about $485 million to strategic investments.

The preferred stock is gone. Apollo's 28,749,227 shares of 6.75% Series A Mandatory Convertible Preferred Stock were outstanding on June 30 and converted automatically on July 31, 2026 at 0.5074 common shares each; 14,587,300 common shares were issued, including early conversions. Apollo filed a Form 15-12G on August 11, 2026 for the preferred shares, which reports 0 holders of record. Apollo's share reconciliation already counted 14,587,841 shares for the preferred inside its 623,554,455 adjusted net income shares at June 30, and GAAP common shares outstanding were 575,971,752.

Debt: $13.7 billion, split between Apollo and Athene

The 10-Q debt note shows two separate borrowers. The Apollo parent and asset-management subsidiaries owe $5,762 million of recourse senior and subordinated notes and $133 million of nonrecourse warehouse debt due January 21, 2027. Athene Holding owes $7,832 million. Total debt rose from $13,364 million at December 31, 2025 to $13,727 million.

No parent note matures before 2029 now that the $500 million 4.40% notes were repaid on May 27, 2026; $1,569 million falls due in 2029 to 2031 (our arithmetic). The $1.25 billion revolving credit facility, maturing November 21, 2029, had nothing drawn, and Apollo said it was in compliance with its covenants. Cash and cash equivalents at the parent and asset-management level, which excludes Athene, were $3,412 million.

After the quarter ended, Athene Holding issued $1.0 billion of 6.150% Senior Notes due August 15, 2036 (August 7, 2026), which is not in the table. Athene also has a $1.75 billion credit facility maturing June 26, 2031 and a $2.6 billion liquidity facility maturing June 25, 2027. Apollo's presentation shows ratings of A2 / A / A for Apollo Global Management (Moody's, S&P, Fitch) and A1 / A+ / A+ / A+ for Athene's primary insurance subsidiaries (Moody's, S&P, Fitch, A.M. Best).

What the filings flag as risks

None of these is a forecast. They are the items the company itself discloses, with its own wording on whether it can quantify them.

How a share of APO differs from a share of an Apollo fund

A stockholder owns a claim on Apollo's earnings after the fees, the insurer's spread, the parent's debt and taxes. A holder of ADS, ADREF, ADCF or ARIS owns a slice of one portfolio at its NAV, with Apollo paid a fee for managing it. The stock does not bring you the fund's NAV; the fund does not bring you Apollo's fee income. The overlap is the redemption pressure. Apollo itself describes “lower growth for these products”; fees on them are part of FRE, though the filings do not say how much. If you want the sector's other side, our BDC stocks list covers the listed BDCs and our non-traded BDC list the unlisted ones; the private credit funds page ranks 28 funds sold to individuals. Apollo's acquisition of Bridge Investment Group, completed on September 2, 2025, is on our Bridge page.

What a holder or interested reader can do with this

• Find your Apollo vehicle in Apollo's table. If you hold ADS, ADREF, ADCF, ARIS or AAA, the 10-Q line gives Apollo's AUM and quarterly net return; the fund's own filing gives its net assets, debt and tender results. They will not match, and the difference is the AUM definition.
• Watch the next two dates. Apollo's third-quarter results are scheduled for November 3, 2026, and last quarter the 10-Q followed six days after the results; the funds' own tender filings come on their schedules.
• Read the three disclosure lines that have no numbers. The IRS notice, the Bermuda tax position and the alternatives return assumption are where Apollo itself says outcomes may differ.
• See your Apollo exposure as one position. A stock in APO and a non-traded fund from the same sponsor are different securities, but both depend on Apollo's origination and on how private credit is viewed. Whether that matters to you depends on your plan, not on this page.
• If you need cash from an Apollo fund, the redemption mechanics are in the fund's own documents and in our fund pages above; a tender offer can be prorated, as our ADS page shows.

FAQ

All figures are from Apollo Global Management, Inc. (CIK 1858681) filings read on EDGAR on October 15, 2026: Form 10-Q for June 30, 2026 (accession 0001858681-26-000040, filed August 10, 2026) and for March 31, 2026 (0001858681-26-000026); the earnings presentations furnished as Exhibit 99.2 to Form 8-K on February 9, May 6 and August 4, 2026 (0001858681-26-000007, -000021, -000036) and the press release Exhibit 99.1 of August 4; Forms 8-K of July 1 (0001858681-26-000033) and October 5, 2026 (0001858681-26-000054); Form 15-12G of August 11, 2026 (0000950142-26-002302); and, for the ADS comparison, the Form 10-Q of Apollo Debt Solutions BDC (CIK 1837532, accession 0001193125-26-341358). Shares, changes, payout ratios and sums are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.