GCM Grosvenor (NASDAQ:GCMG) Releases Earnings Results, Beats Expectations By $0.01 EPS

GCM Grosvenor (NASDAQ:GCMG) issued its quarterly earnings results on Monday. The company reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.01, FiscalAI reports. GCM Grosvenor had a return on equity of 112.98% and a net margin of 7.95%. The firm had revenue of $145.55 million during the quarter, compared to the consensus estimate of $141.60 million.

Here are the key takeaways from GCM Grosvenor’s conference call:

• Third-quarter results showed continued growth: AUM rose 13% year over year to $98 billion, fee-related earnings increased 15%, and adjusted net income grew 20%. The FRE margin expanded to 47% from 45% a year earlier.
• Fundraising totaled $2.7 billion in the quarter and $10 billion over the last 12 months; the near-term pipeline is 20% larger than a year ago. Management expects full-year 2026 fundraising to rival 2025, supported by $10.6 billion of contracted AUM not yet fee-paying.
• Absolute Return Strategies had strong returns over longer periods—13% year to date and nearly 19% over the past year—but its composite fell 2% gross in the third quarter, partly reflecting SpaceX. ARS fee-paying AUM rose 18% year over year, and management expects continued inflows.
• Unrealized carried interest reached a record approximately $1.1 billion at quarter end, including $592 million representing the firm’s share. Management called this embedded earnings potential, while cautioning that realization timing is uncertain and fund-level waterfalls affect when carry is earned.
• Management highlighted growth in newer channels and strategies: individual-investor AUM rose 40% year over year to $5.3 billion, and the firm has raised about $4 billion for credit over the past two years. The board approved a $0.12 quarterly dividend, with $54 million remaining under the share-repurchase authorization.

GCM Grosvenor Trading Up 3.5%

GCM Grosvenor stock opened at $13.92 on Wednesday. GCM Grosvenor has a 1 year low of $9.30 and a 1 year high of $14.87. The firm’s 50 day moving average price is $12.87 and its 200-day moving average price is $11.92. The company has a debt-to-equity ratio of 2.96, a current ratio of 1.89 and a quick ratio of 1.89. The stock has a market cap of $2.82 billion, a P/E ratio of 26.26 and a beta of 0.91.

GCM Grosvenor Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend is Tuesday, December 1st. GCM Grosvenor’s dividend payout ratio (DPR) is 92.31%.

Insider Buying and Selling at GCM Grosvenor

In related news, CFO Pamela Bentley sold 10,000 shares of the stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $12.68, for a total transaction of $126,800.00. Following the completion of the transaction, the chief financial officer directly owned 14,397 shares of the company’s stock, valued at approximately $182,553.96. This represents a 40.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kathleen Sullivan sold 15,037 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $13.16, for a total transaction of $197,886.92. Following the completion of the transaction, the insider directly owned 44,795 shares of the company’s stock, valued at approximately $589,502.20. This trade represents a 25.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 90,000 shares of company stock worth $1,155,350. Corporate insiders own 70.70% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on GCMG. Weiss Ratings upgraded GCM Grosvenor from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, August 13th. Oppenheimer reduced their price objective on GCM Grosvenor from $18.00 to $17.00 and set an “outperform” rating for the company in a research report on Friday, July 17th. JPMorgan Chase & Co. increased their target price on GCM Grosvenor from $13.00 to $14.50 and gave the company a “neutral” rating in a report on Tuesday. Wall Street Zen cut GCM Grosvenor from a “buy” rating to a “hold” rating in a research report on Saturday, October 10th. Finally, Piper Sandler raised their target price on GCM Grosvenor from $14.50 to $15.00 and gave the stock an “overweight” rating in a research report on Tuesday. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $15.12.

About GCM Grosvenor

GCM Grosvenor is an alternative asset management firm that provides investment solutions across private markets and hedge fund strategies. Its offerings include private equity, infrastructure, real estate and credit investments, as well as customized portfolios and multi-manager strategies. The firm invests on behalf of institutional investors and other clients through primary investments, co-investments and secondary-market transactions. Its activities span global markets, with offices in North America, Europe and Asia.