Breaking Down Bridge Investment Group Holdings Inc. (BRDG) Financial Health: Key Insights for Investors

You're looking at Bridge Investment Group Holdings Inc. (BRDG) and wondering what to make of its 2025 numbers, especially with the Apollo merger closing in the near-term; the takeaway is that while the underlying business grew assets, transaction costs have defintely muddied the net income picture. Honestly, you see a firm that grew its Assets Under Management (AUM) to a solid $50.2 billion as of mid-2025, a 3% jump year-over-year, and pulled in quarterly revenue of $96.5 million in Q2 2025, beating analyst estimates. But, you have to look past the top line: the Q2 net income collapsed to just $2.8 million, a huge drop from the prior year, because of costs tied to the approximately $1.5 billion all-stock merger with Apollo Global Management. Here's the quick math: the six-month period ended June 30, 2025, actually produced a net loss of $34.8 million. That loss isn't a sign of operational failure, but a clear one-time expense hit that you need to factor into your valuation before the company fully integrates and delists.

Revenue Analysis

You need to know where the money is coming from at Bridge Investment Group Holdings Inc. (BRDG) to properly value the business, especially with the recent market shifts. The direct takeaway from the first half of 2025 is a mixed signal: while the trailing twelve months (LTM) revenue shows solid growth, the second quarter saw a noticeable dip, reflecting broader real estate market headwinds.

For the quarter ending June 30, 2025, Bridge Investment Group Holdings Inc. reported total revenue of $96.5 million. This figure represents an 8% decrease compared to the $104.8 million reported in the same quarter of the previous year. Still, looking at the bigger picture, the LTM revenue ending in Q2 2025 was approximately $426.26 million, which is actually up 15.68% year-over-year. It's a classic case of quarterly volatility against a stronger long-term trend.

Breakdown of Primary Revenue Sources

Bridge Investment Group Holdings Inc. is an asset manager, so its revenue is heavily reliant on fees from managing capital across specialized strategies like real estate, credit, renewable energy, and secondaries. The core revenue streams are Fund Management Fees and Property Management and Leasing Fees. Fund Management Fees are the stable, recurring income stream, while performance-related fees can be more volatile.

• Fund Management Fees: The largest, most defintely consistent source.
• Property Management & Leasing: Fees from operating the underlying real estate assets.
• Transaction Fees: Income from buying and selling assets within the funds.

Segment Contribution and Q2 2025 Change Analysis

The revenue decline in Q2 2025 came from a drop in the two largest fee categories. Fund Management Fees decreased from $61.5 million in Q2 2024 to $58.5 million in Q2 2025, and Property Management and Leasing Fees fell from $17.8 million to $16.7 million. Here's the quick math on how the segments contributed to the Q2 2025 total revenue of $96.5 million:

The most significant change, however, is the company's new ownership structure. The merger agreement with Apollo Global Management, Inc. closed on September 2, 2025. This means that while the Q2 2025 results show the performance of the standalone entity, all future revenue streams and segment reporting will be integrated into Apollo's massive platform. This merger is a game-changer, fundamentally altering the long-term strategic outlook and the Mission Statement, Vision, & Core Values of Bridge Investment Group Holdings Inc. (BRDG).

Profitability Metrics

You're looking at Bridge Investment Group Holdings Inc. (BRDG) because you know the alternative asset space has been a mixed bag in 2025. Honestly, the profitability picture for BRDG right now shows real pressure, especially when you stack it up against the industry's heavy hitters.

The core takeaway is this: while the top line is holding, cost control is a major issue, translating to a narrow operating margin and a net loss over the last twelve months. This is defintely a red flag that demands your attention before their expected merger with Apollo Global Management, Inc.

Margin Analysis: Gross, Operating, and Net

To get a clear view, we need to look at the Trailing Twelve Months (TTM) ending June 30, 2025. Here's the quick math on their core profitability ratios:

• Gross Margin: The TTM Gross Profit was $195.75 million on revenue of $426.26 million, giving a Gross Margin of about 45.92%.
• Operating Margin: TTM Operating Income was $44.43 million, resulting in a thin Operating Margin of just 10.42%.
• Net Margin: The company reported a TTM Net Loss of -$15.08 million, which means a Net Margin of -3.54%.

A negative Net Margin tells you the business, on a GAAP basis, is spending more than it's earning after all costs, taxes, and non-operating items are factored in. This is not sustainable, and it's why the merger is so critical.

Operational Efficiency and Cost Management

The gap between the Gross Margin (45.92%) and the Operating Margin (10.42%) is a huge indicator of operational drag. Here's where the analysis of operational efficiency comes in: the cost of running the business-Selling, General, and Administrative (SG&A) expenses-is eating up a massive chunk of their gross profit.

For example, in the second quarter of 2025 alone, General and Administrative expense nearly doubled, rising materially from $9.4 million in Q2 2024 to $18.2 million. That kind of expense bloat is what kills operating leverage (the ability to grow profit faster than revenue). You can't have your G&A costs rising that fast in a period where revenue is declining.

Profitability Trends and Industry Comparison

The near-term trend is sharply negative. In Q2 2025, Bridge Investment Group Holdings Inc. reported a 90% year-over-year decline in GAAP Net Income, falling to just $2.8 million, while total revenue also decreased by 8% to $96.5 million. This is a clear sign that the firm is struggling with the current market environment, which has been tough for alternative managers.

When you compare these figures to the broader asset management industry, the picture gets starker:

• BRDG Operating Margin: 10.42% (TTM Jun '25)
• Industry Median Operating Margin: 32% (2023 median for asset managers)
• BlackRock Operating Margin: 40.64% (TTM Nov '25)

The difference is staggering. BRDG's operating efficiency is less than a third of the industry median, and a quarter of what a scaled player like BlackRock achieves. This highlights the intense pressure on mid-sized alternative managers who lack the massive scale to offset rising data and technology costs, a trend noted across the industry. For more on the strategic direction, you should review the Mission Statement, Vision, & Core Values of Bridge Investment Group Holdings Inc. (BRDG).

The low Gross Margin and the high operating expense ratio show that Bridge Investment Group Holdings Inc. has a fundamental challenge in converting its revenue-which is already under pressure-into meaningful operating profit. This is why the Apollo deal is a financial necessity, not just a strategic choice.

Debt vs. Equity Structure

You need to know how Bridge Investment Group Holdings Inc. (BRDG) funds its operations, and the quick answer is that its corporate leverage is balanced, but it's tightening up to industry norms right before a major equity event. The company's Debt-to-Equity (D/E) ratio is currently around 1.02 on a trailing twelve-month basis, which is just slightly above the asset management industry average of 0.95 as of November 2025.

This ratio means that for every dollar of shareholder equity, Bridge Investment Group Holdings Inc. uses about a dollar of debt to finance its assets. Honestly, for a firm heavily involved in real estate and credit strategies, this level of leverage is relatively contained. What this estimate hides, however, is the recent decline in total equity, which fell about 10% to $454.3 million in Q2 2025 from the end of 2024, naturally pushing the D/E ratio higher even if the debt load stayed flat.

Here's the quick math on the corporate debt profile, based on Q1 2025 and trailing twelve-month (TTM) data, which shows a heavy skew toward long-term obligations:

The company's total debt sits at roughly $465.50 million, with the vast majority being long-term. This structure is defintely preferred, as it reduces the near-term refinancing risk that plagues many real estate-heavy firms right now. Plus, as of March 2025, the company had a healthy cushion, remaining in compliance with all debt covenants and holding $150.0 million of available capacity on its corporate credit facility.

Balancing Debt and the Apollo Equity Infusion

The balance between debt and equity has been radically shifted by the proposed all-stock merger with Apollo Global Management, Inc., which stockholders approved in June 2025. This event, with an estimated total equity value of approximately $1.5 billion, means the company is primarily using equity-its stock-to fund its growth and strategic exit, not new corporate debt.

Still, their core business continues to leverage both sides of the capital stack (the mix of debt and equity used to finance a project). In October 2025, Bridge Investment Group Holdings Inc. completed fundraising for its Bridge Debt Strategies Fund V (BDS V), raising $2.15 billion in equity commitments. This capital is for their investment funds to deploy into the real estate debt market-originating loans and issuing CRE CLOs-which shows their deep expertise in managing debt as an asset class, even as their own corporate structure leans into equity for its biggest strategic move. If you want to dive deeper into who is investing in the firm, you should be Exploring Bridge Investment Group Holdings Inc. (BRDG) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

Bridge Investment Group Holdings Inc. (BRDG) maintains a generally adequate, though slightly tight, liquidity position, which is typical for an alternative investment manager focused on long-duration real assets. The key takeaway is that while the Current Ratio is above 1.0, the Quick Ratio suggests a reliance on less-liquid current assets, but this is offset by strong Trailing Twelve Months (TTM) operating cash flow.

You need to look past the headline numbers to see the real picture. For the most recent reporting period, the company's Current Ratio stands at 1.18. This means Bridge Investment Group Holdings Inc. has $1.18 in current assets for every $1.00 in current liabilities, which is a healthy baseline for covering near-term obligations. However, the Quick Ratio, which excludes less-liquid assets like receivables, is lower at 0.66. This suggests that if you strip out receivables from affiliates and other non-cash current assets, the immediate cash-to-liability coverage is less than one-to-one. This is defintely something to watch, but for a firm managing capital, a higher proportion of receivables (like management fees) is expected.

The trend in working capital-the difference between current assets and current liabilities-shows improvement. For example, the working capital position grew from approximately $1 million at the end of 2024 to about $43 million by the end of the first quarter of 2025, indicating a positive short-term shift in the balance of current assets over liabilities. This is a good sign that the firm is building a larger liquidity cushion.

Cash Flow Statement Overview

The cash flow statement provides a clearer view of the firm's operational health, especially in the context of its recent merger agreement with Apollo Global Management, Inc. The core of the business remains cash-generative. Here's the quick math on the TTM and near-term trends:

• Operating Cash Flow (OCF): The TTM OCF was a strong $95.22 million. For the first six months of 2025 alone, operating cash flow remained positive at $18.1 million. This consistent positive OCF is the primary source of liquidity.
• Investing Cash Flow (ICF): This is highly variable, as is typical for an asset manager. The firm is actively deploying capital, which is a core function.
• Financing Cash Flow (FCF): This shows significant outflows, including a $75.0 million principal repayment on its 2020 Private Placement Notes in July 2025. This debt reduction is a strategic use of cash, improving the long-term solvency picture.

The firm ended the second quarter of 2025 with $72.8 million in cash and cash equivalents. The main liquidity strength is the consistent fee-based revenue model, which generates the positive operating cash flow. The primary near-term risk is the potential for a slowdown in transaction-based fees, which could pressure the OCF, but the long-duration nature of their managed assets provides a stable base. For a deeper dive into the firm's strategy, check out the full analysis: Breaking Down Bridge Investment Group Holdings Inc. (BRDG) Financial Health: Key Insights for Investors.

What this estimate hides is the pending merger with Apollo Global Management, Inc., which, upon closing, will fundamentally change the liquidity and capital structure of Bridge Investment Group Holdings Inc. The deal is expected to close in the third quarter of 2025, making the historical liquidity analysis a near-term snapshot before a major corporate event. Your action: Finance should monitor the cash covenants related to the Apollo merger closing conditions weekly.

Valuation Analysis

You want to know if Bridge Investment Group Holdings Inc. (BRDG) is a buy, a hold, or a sell right now. The short answer is that the stock is technically Undervalued based on intrinsic value models, but the most important factor is its recent acquisition: Bridge Investment Group Holdings is now a subsidiary of Apollo Global Management, Inc., effective September 02, 2025, following an all-stock merger.

This merger changes the entire valuation landscape, as the stock is no longer an independent entity. Honest assessment: the market is essentially valuing the stock based on the agreed-upon merger terms, not its standalone growth prospects. Still, looking at the fundamentals leading up to the acquisition gives you a clear picture of the underlying business health.

Key Valuation Multiples (TTM/Current)

When you strip away the merger noise and look at the Trailing Twelve Months (TTM) data, the picture is mixed. The negative earnings are a red flag, but the low Price-to-Book (P/B) ratio suggests the assets are cheap relative to the stock price. Here's the quick math on the key ratios, using data closest to the end of the 2025 fiscal year:

• Price-to-Earnings (P/E): Not meaningful. The TTM Earnings Per Share (EPS) as of June 30, 2025, was -$0.52, meaning the company reported a net loss. This results in a negative P/E ratio, which is common for companies in a transitional or investment phase, but you defintely need to see a path back to profitability.
• Price-to-Book (P/B): Approximately 0.69 (FY 2024). This is a strong indicator of undervaluation, as it suggests the stock is trading at roughly 31% below its book value-the net asset value per share.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM multiple is around 11.1x. This is below the industry median of 14.3x, which further supports the view that the company was relatively inexpensive on an operating cash flow basis before the merger was finalized.

The low P/B and EV/EBITDA ratios are why independent analysis pegged the intrinsic value per share at $12.49, suggesting the stock, trading near $9.60, was undervalued by about 23%.

Stock Performance and Analyst Sentiment

Over the last 12 months, the stock has been volatile, moving between a 52-week low of $6.95 and a high of $11.05. The stock price has increased by +15.39% over the past year, reflecting some positive momentum, likely driven by the expectation of the Apollo merger.

The analyst consensus on Bridge Investment Group Holdings is a firm Hold, with a consensus price target ranging from $10.83 to $11.30. This target implies a potential upside of approximately 14.52% to 17.71% from the current price, which aligns with the intrinsic value assessment.

The dividend picture is also conservative. The current dividend yield is around 1.90%, with an estimated payout ratio of 26.47% based on this year's earnings estimates. This low payout ratio suggests the company, prior to the merger, was retaining most of its earnings for reinvestment, which is a sign of financial stability and a focus on growth.

The key takeaway here is that the merger with Apollo Global Management, Inc. is the dominant factor. All other numbers-the low P/B, the negative EPS, and the Hold rating-are now historical context for the price at which the deal was struck. If you want to dive deeper into the players who were buying and selling leading up to this event, you should be Exploring Bridge Investment Group Holdings Inc. (BRDG) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking for the clear-cut risks facing Bridge Investment Group Holdings Inc. (BRDG), especially with the massive strategic shift underway, and honestly, the biggest near-term risk is the successful execution of the Apollo Global Management, Inc. merger. The financial health of Bridge Investment Group Holdings Inc. (BRDG) in 2025 shows a clear operational slowdown, which complicates that transition, so investors need to focus on both the deal mechanics and the underlying real estate market volatility.

The core strategic risk is tied to the all-stock merger with Apollo Global Management, Inc., which has an estimated total equity value of approximately $1.5 billion and was expected to close in early September 2025. What this estimate hides is the critical closing condition: the company must maintain at least an 85% revenue run-rate covenant for clients as of December 31, 2024. If client retention or revenue generation falters before the final close, this entire strategic pivot is at risk. It's a high-stakes, all-or-nothing scenario.

Operationally, the second quarter of 2025 showed a defintely concerning financial contraction, which is a significant internal risk. Total revenues declined by about 7.8% year-over-year to $96.5 million, down from $104.8 million in the prior-year quarter. Here's the quick math on the profit squeeze:

• Quarterly net income plummeted from $27.5 million in Q2 2024 to just $2.8 million in Q2 2025.
• Investment income, a key driver for an alternative asset manager, fell sharply to $6.3 million from $25.6 million.
• The six-month period ended June 30, 2025, produced a larger net loss of $34.8 million, worsening from a $9.3 million loss a year earlier.

Plus, general and administrative expenses nearly doubled, rising materially to $18.2 million in Q2 2025 from $9.4 million in Q2 2024, which puts further pressure on margins. The company's equity also declined by around 10% to $454.3 million from the end of 2024. This operational deterioration creates a weaker negotiating position and post-merger integration challenge for Apollo, even with Bridge Investment Group Holdings Inc.'s approximately $50 billion in assets under management (AUM) as of June 30, 2025.

On the external front, you have two major challenges: regulatory changes and market conditions. The signing of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, introduced significant changes to federal tax law and other regulatory provisions. Bridge Investment Group Holdings Inc. is still evaluating the full impact of the OBBBA on its financial position and cash flows, but new tax complexity is never a positive for a real estate investment manager.

The broader real estate market remains a headwind. While Bridge Investment Group Holdings Inc. is strategically focused on resilient sectors like living strategies (multifamily, senior housing) and modern logistics, the firm's performance is still exposed to macroeconomic shifts. Their mitigation strategy, beyond the Apollo merger, is to focus on these high-conviction areas and leverage their integrated platform. For a deeper dive into the firm's strategy, you can read more at Breaking Down Bridge Investment Group Holdings Inc. (BRDG) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking at Bridge Investment Group Holdings Inc. (BRDG) to understand its future, but the most critical insight is this: the company's growth prospects are now intrinsically tied to a major strategic move. The primary driver of future growth isn't a new product line; it's the pending acquisition by Apollo Global Management, an all-stock transaction valued at approximately $1.5 billion, which was expected to close in the third quarter of 2025. This isn't a small partnership; it's a game-changer that positions Bridge Investment Group as a standalone real estate equity and credit platform within a global alternative asset manager.

The immediate opportunity is leveraging Apollo's massive integrated platform, which should help scale Bridge Investment Group's specialized products, particularly in the wealth channel. This access to a broader, deeper capital base is the new competitive advantage. The internal growth engines, however, are what made the company an attractive target in the first place.

Here's the quick math on the pre-merger value proposition:

• Assets Under Management (AUM): Gross AUM grew to $50.2 billion as of June 30, 2025, a 3% year-over-year increase, showing consistent capital attraction.
• Dry Powder: The firm held $3.2 billion in dry powder (uncalled capital) in Q2 2025, ready to deploy into new investment opportunities as market conditions improve.
• Earnings Estimates: Analyst consensus, prior to the merger's full impact, projected earnings per share (EPS) to grow from $0.68 to $0.80 in the next year, an expected 17.65% increase.

To be fair, the second quarter of 2025 saw some softness, with total revenue declining to $96.5 million, an 8% drop from the prior year's quarter, and GAAP net income falling significantly to $2.8 million. Still, the core fee-related earnings (FRE) for the quarter were a solid $28.0 million, demonstrating the resilience of the management fee model.

Strategic Focus and Competitive Edge

Bridge Investment Group's future growth will be driven by its continued focus on high-conviction real estate sectors-what they call 'living strategies'-and its vertically integrated model. This means they don't just invest; they manage the properties in-house, which helps drive operational efficiency and net operating income (NOI) growth.

The investment thesis is simple: focus on demographic-driven demand. This includes:

• Multifamily and Workforce Housing: Capitalizing on affordability challenges and the growing renter demographic.
• Modern Logistics: Targeting small-bay urban properties and advanced manufacturing facilities.
• Private Real Estate Credit: Focusing on refinancing and origination opportunities amid constrained conventional lending.

This specialization, coupled with a data-driven approach, is the engine Apollo is acquiring. The firm's deep expertise in these specific property sectors and its ability to raise capital, even in a challenging market (Q2 2025 capital raised was primarily driven by credit strategies), position it to capitalize on the anticipated real estate market recovery in the second half of 2025. The merger just pours rocket fuel on that engine. You can dive deeper into the firm's shareholder base here: Exploring Bridge Investment Group Holdings Inc. (BRDG) Investor Profile: Who's Buying and Why?

Here is a snapshot of the Q2 2025 financial performance that underpins the value of the merger:

The key action for you, as an investor, is to monitor the integration process with Apollo. If onboarding takes 14+ days, churn risk rises, but in this case, the risk is in the seamless transition of capital access and operational continuity. The deal's successful closing, approved by stockholders, defintely marks the start of a new, potentially higher-growth chapter.