Breaking Down P10, Inc. (PX) Financial Health: Key Insights for Investors

You're looking at P10, Inc. (PX) and seeing a mixed signal-the classic private markets dilemma-so let's cut straight to the numbers from their Q3 2025 report. They posted Q3 revenue of $75.9 million, a modest 2% year-over-year increase, which frankly missed analyst estimates, but that top-line miss is overshadowed by the underlying strength in their core business: Fee-Paying Assets Under Management (AUM) surged to $29.1 billion, a robust 17% jump from the prior year. This AUM growth is the real story, plus management just raised their 2025 organic gross fundraising target to $5.0 billion, up from $4.0 billion, showing real confidence in their pipeline. The market is still trying to price this divergence, but with a consensus analyst price target sitting around $15.88, the view is clearly bullish on their long-term fee-generating power, even with GAAP Net Income at a relatively small $3.0 million for the quarter. We defintely need to see if that massive AUM growth translates into stronger revenue next quarter.

Revenue Analysis

You're looking for a clear picture of P10, Inc. (PX)'s top-line health, and the key takeaway is this: the company's revenue is overwhelmingly stable, driven by recurring management fees on a rapidly expanding asset base. While the raw revenue growth rate in Q3 2025 was modest, the underlying engine-fee-paying Assets Under Management (AUM)-is accelerating, which is what matters most for a private markets firm.

P10, Inc. reported total revenue of $75.9 million for the third quarter of 2025, which was a 2% increase year-over-year (YoY). For the trailing twelve months (TTM) ending September 30, 2025, the company's revenue reached $301.31 million, representing a 9.77% YoY growth. Here's the quick math: the growth is slowing quarter-to-quarter, but the TTM view shows a healthy, albeit decelerating, trend from the 22.63% annual growth seen in 2024.

Breakdown of Primary Revenue Sources

P10's revenue structure is highly predictable, which is a significant strength in the volatile alternative asset space. The vast majority of its revenue is Fee-Related Revenue (FRR), which is primarily composed of management and advisory fees charged on its fee-paying AUM. For Q3 2025, the total revenue of $75.9 million was essentially all Fee-Related Revenue, which grew 4% YoY. This means the firm is not relying on volatile performance fees (or 'carry') for its core operations. Management and advisory fees account for the bulk of revenue, reflecting strong demand for private market solutions. That's a solid, defintely reliable revenue base.

• Fee-Related Revenue: $75.9 million in Q3 2025.
• YoY Growth in FRR: 4% in Q3 2025.
• Average Core Fee Rate: 103 basis points (1.03%) in Q3 2025.

Segment Contribution and AUM Growth

The revenue is generated by providing access to diverse private market solutions across multiple strategies, primarily focusing on the middle and lower-middle markets. This diversification across strategies-Private Equity, Private Credit, and Venture Capital-is a key risk mitigator.

The real story is the growth in the asset base that generates these fees. Fee-paying AUM reached $29.1 billion at the end of Q3 2025, an impressive 17% increase year-over-year. This growth is fueled by strong organic fundraising, with the company raising its full-year 2025 organic gross fundraising target to $5 billion, up from the original $4 billion guidance. This future fee generation is what you should focus on.

Here is the core data on the revenue drivers and recent performance:

Analysis of Significant Changes

The most significant change in 2025 is the strategic expansion of the platform. The acquisition of Qualitas Funds, which closed in Q1 2025, significantly expanded P10, Inc.'s global presence and added to its fee-paying AUM base. This move, plus the strong organic fundraising momentum, is what drove the 17% jump in fee-paying AUM. The increase in fee-paying AUM is a leading indicator of future revenue growth, even if Q3's revenue growth was a bit light. This is a deliberate, platform-building strategy. For more on the long-term strategy, you can review the Mission Statement, Vision, & Core Values of P10, Inc. (PX).

What this estimate hides is the impact of 'step-downs and expirations,' which totaled $673 million in Q3 2025. This is capital leaving funds as they mature or are paid down early, and it slightly offsets the strong new fundraising. Still, the net effect is a substantial increase in the fee-paying base, so the long-term revenue outlook remains positive.

Profitability Metrics

You want to know if P10, Inc. (PX) is a profitable business, and more importantly, if it is efficiently profitable. The direct takeaway is that P10 has a strong core business-evidenced by its high gross margin-but its operational expenses significantly compress the final profit you see on the bottom line.

Looking at the Trailing Twelve Months (TTM) data, which gives us the clearest picture leading up to November 2025, P10's profitability metrics tell a story of a high-margin service business with heavy overhead. The TTM Revenue stands at approximately $301.31 million. Here is the quick math on the key margins:

• Gross Profit Margin: 54.57% (This is the profit after deducting costs directly tied to providing the service, like fund administration).
• Operating Profit Margin: 30.33% (This is what's left after covering all operating expenses, like salaries and rent).
• Net Profit Margin (GAAP): 5.09% (This is the final profit after interest and taxes).

That drop from 54.57% Gross Margin to 30.33% Operating Margin is the first place you should focus your analytical lens. It means that for every dollar of gross profit, nearly half is being eaten up by selling, general, and administrative (SG&A) costs. Operational efficiency, or the lack thereof, is defintely a key risk here.

Trends and Operational Efficiency

The trend in net profitability through 2025 has been volatile, which is common in the alternative asset management space due to the timing of performance fees and non-cash adjustments. While the company reported an increase in Fee-Paying Assets Under Management (AUM) to $29.1 billion by Q3 2025, the GAAP Net Income has been inconsistent.

Here is the quarterly Net Profit Margin trend for 2025, showing the quarter-to-quarter volatility:

The Q3 2025 GAAP Net Income of $3.0 million is lower than Q2's $4.2 million, despite higher revenue. This suggests that while the top line is growing-revenue was $75.9 million in Q3 2025-the cost base is expanding or non-operating factors are weighing heavily. The company often emphasizes its Fee-Related Earnings (FRE) and Adjusted Net Income (ANI)-Q3 2025 ANI was $28.6 million-which strips out non-cash and non-recurring items. You need to decide which metric is more relevant for your valuation: the strict GAAP number or the adjusted figure that reflects the core fee business.

Industry Comparison

When you compare P10, Inc. (PX) to the broader Financials sector, specifically the asset management industry, the numbers are stark. P10 operates in a specialized niche, so direct comparisons are tricky, but the gap in gross profitability is notable.

The Financials sector's TTM Gross Margin is around 92.47%, and the Operating Margin is about 72.07%. P10's Gross Margin of 54.57% is significantly lower. This difference is largely structural, reflecting P10's business model which includes more direct costs relative to pure-play asset managers. Still, the fact that P10's margin compression from gross to operating is roughly 24 percentage points (54.57% to 30.33%) versus the industry's 20 percentage points (92.47% to 72.07%) suggests that P10's operating leverage is currently weaker than the sector average.

The core issue for P10 is turning that strong fee-related revenue into robust GAAP net income. To get a full picture of the company's financial standing, you should also review the capital structure, which we cover in the next section of the blog post Breaking Down P10, Inc. (PX) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You want to know if P10, Inc. (PX) is leaning too heavily on debt to fuel its growth. The short answer is no, but they are right on the edge of the industry norm. As of the third quarter of 2025, P10, Inc. maintains a balanced capital structure, with a Debt-to-Equity (D/E) ratio of approximately 1.00, which is just slightly above the industry average for asset managers.

This ratio, which compares total debt to shareholder equity, shows that for every dollar of equity capital, the company has about one dollar of debt. For a growth-oriented private markets solutions provider that uses debt for strategic acquisitions, this is a manageable level of financial leverage (the use of borrowed money to finance assets).

Here's the quick math on their financing components based on the latest Q3 2025 data:

• Total Debt: Approximately $398 million.
• Total Equity: Nearly $397 million.
• Debt-to-Equity Ratio: 1.00.

Debt Levels and Industry Comparison

P10, Inc.'s debt is primarily composed of a long-term term loan, which stood at $325 million as of Q2 2025, plus a drawn revolving credit facility (short-term debt). It's a classic private equity financing playbook: use a term loan to fund acquisitions that expand your Fee-Paying Assets Under Management (FPAUM), which generates predictable, long-duration management fees. This is a smart use of debt when the underlying revenue streams are stable.

To be fair, the company's D/E ratio of 1.00 is a tick higher than the broader Asset Management industry average, which currently sits around 0.95 as of November 2025. This means P10, Inc. is using a little more leverage than its peers, but it is defintely not an outlier. A ratio of 1.00 is generally considered healthy, especially in a sector where revenue is locked in for ten to fifteen years, like P10, Inc.'s is.

What this estimate hides is the company's liquidity. They have been actively managing their short-term obligations, including paying down $11.5 million on their revolving credit facility following the end of the second quarter of 2025. Plus, their cash and cash equivalents were approximately $40 million at the end of Q3 2025.

Balancing Debt and Equity for Growth

P10, Inc. is balancing its financing through a mix of debt and equity, a strategy that maximizes returns on equity. The use of debt, specifically the term loan, is a key driver for their inorganic growth strategy, such as the acquisition of Qualitas Funds, which added $1 billion to their fee-paying AUM in Q2 2025.

While the company does not have a public credit rating from a major agency like S&P or Moody's, its ability to service its debt is strong. The Interest Coverage ratio-EBITDA divided by interest expense-is a key metric here, sitting at a solid 3.37. This means their operating earnings are more than three times what they need to cover their interest payments. That's a good cushion.

The company's capital allocation strategy is clear:

• Debt: Used for strategic, accretive acquisitions to scale the platform.
• Equity: Used for smaller, non-dilutive share repurchases, with about $26 million remaining under their repurchase authorization as of Q3 2025.
• Dividends: A quarterly cash dividend of $0.0375 per share was declared for Q3 2025.

The capital structure is optimized for growth in a low-rate environment, but investors need to monitor the Interest Coverage ratio as rates fluctuate. This is a good time to dive deeper into the firm's overall financial picture by reading the full post: Breaking Down P10, Inc. (PX) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if P10, Inc. (PX) can cover its short-term bills, and honestly, the picture is strong. The company maintains excellent liquidity, with its current and quick ratios well above the safe benchmark of 1.0, signaling it has more than enough liquid assets to meet its obligations over the next twelve months.

This financial strength is defintely a core pillar of their strategy, which you can read more about in their Mission Statement, Vision, & Core Values of P10, Inc. (PX).

Assessing P10, Inc.'s Liquidity Positions

The key indicators for P10, Inc.'s immediate financial health-the Current Ratio and Quick Ratio-show a very comfortable margin. The Current Ratio, which measures total current assets against current liabilities, stands at a robust 2.50 for the trailing twelve months (LTM). This means P10, Inc. holds $2.50 in current assets for every dollar of current liabilities. The Quick Ratio, which is a stricter test since it excludes less-liquid assets like inventory, is also very strong at 2.13.

Here's the quick math on their short-term capacity:

• Current Ratio: 2.50 (LTM)-A solid buffer against short-term debt.
• Quick Ratio: 2.13 (LTM)-Strong capacity even without relying on inventory.

A ratio over 2.0 is generally considered excellent, so P10, Inc. has substantial working capital (current assets minus current liabilities) to manage its day-to-day operations and withstand unexpected expenses. For a financial services firm, this kind of liquidity is crucial for investor confidence.

Cash Flow Dynamics and Working Capital Trends

The trends in working capital are generally positive, though cash flow can be lumpy, which is common for alternative asset managers. For the LTM period, P10, Inc. generated positive operating cash flow of $27.77 million, which is a healthy sign that the core business is generating cash. After accounting for capital expenditures of -$4.97 million, the resulting Free Cash Flow (FCF) was $22.80 million.

However, looking at the quarterly detail shows the variability. In Q1 2025, the company had a net cash use in operating activities of ($4.729) million, which was offset by net cash provided by financing activities of $13.293 million. This suggests that while the LTM is strong, quarter-to-quarter operating cash flow can fluctuate, likely due to the timing of fee collections and compensation payments. The Q2 2025 working capital changes also included a positive adjustment of $4.2 million.

The table below breaks down the cash flow statement trends, showing where the cash is moving:

The Q1 2025 financing cash flow surge, which was $13.293 million, was largely driven by new borrowings on debt obligations, totaling $37.0 million. This is an important detail: they are using debt to fund operations and growth, even with a temporary dip in operating cash flow.

Liquidity Strengths and Near-Term Actions

The primary strength is the high liquidity ratios; they are not facing a cash crunch anytime soon. The positive LTM FCF of $22.80 million confirms the business model's ability to generate surplus cash over time. The only real liquidity concern is the quarterly volatility in operating cash flow, which you should monitor for a sustained negative trend, but for now, it appears to be timing-related and easily covered by their significant cash reserves and access to financing.

Your next step is to analyze the debt structure and maturity schedule to ensure the financing cash flow is strategic, not reactive. Finance: Map out the debt maturity profile against the FCF forecast by next week.

Valuation Analysis

You're looking at P10, Inc. (PX) and asking the right question: is the market missing something, or is the stock priced exactly where it should be? The short answer is that P10, Inc. appears undervalued based on forward-looking earnings multiples, especially when you consider the strong analyst consensus. Still, the stock's poor price performance this year is a clear warning sign you can't ignore.

Here's the quick math on the valuation metrics. The current forward price-to-earnings (P/E) ratio-which uses the expected earnings per share (EPS) for the next 12 months-sits at a compelling 8.98. To be fair, that's a significant discount to its 5-year average forward P/E of 13.03, [cite: 9 from step 2] suggesting the market is pricing in a lot of risk or simply hasn't caught up to the firm's projected earnings for the 2025 fiscal year, which are expected to be around $0.90 per share. [cite: 11 from step 1]

Other key valuation multiples tell a similar story, though they point to a more mixed picture:

• Price-to-Book (P/B) Ratio: At approximately 2.97, the stock trades at a premium to its book value, which is typical for an asset-light financial services firm like P10, Inc. that relies on intellectual capital and management fees.
• Enterprise Value-to-EBITDA (EV/EBITDA): The trailing EV/EBITDA is around 12.00. This is a reasonable multiple for a growing asset manager, but it's defintely not a deep-value signal.

Stock Performance and Analyst Sentiment

The biggest disconnect right now is between the valuation multiples and the stock's recent performance. Over the last 12 months, P10, Inc.'s stock price has fallen by roughly -23.11%. The price dropped by an even sharper 27.49% throughout 2025, [cite: 7 from step 1] with the 52-week low hitting $8.85 in June 2025. [cite: 10 from step 1] This bearish trend is a result of broader market pressures on alternative asset managers and some revenue misses, even as fee-paying assets under management (AUM) grew.

Despite the price volatility, Wall Street analysts maintain a strong conviction. The consensus rating on P10, Inc. is a Buy, with 80% of analysts recommending a Buy and 20% suggesting a Hold as of November 2025. [cite: 13 from step 1] The average 1-year price target is aggressive, sitting between $15.38 and $15.70, [cite: 9 from step 2, 13 from step 1] which implies a substantial upside from the current price, which is hovering around the $9.16 to $10.335 range. [cite: 6, 9 from step 2]

Dividend Payout and Sustainability

P10, Inc. does offer a dividend, but you need to look past the yield. The annual dividend per share is around $0.15 to $0.16, [cite: 1 from step 1, 2 from step 1] which translates to a yield of about 1.40% to 1.60%. [cite: 1 from step 1, 4] The real issue is the payout ratio. At 103.6% to 121.5%, [cite: 1 from step 1, 2 from step 1, 3 from step 1] the company is paying out more in dividends than it is earning in net income. This is not sustainable long-term and often signals a dividend cut is on the horizon, or that the company is relying on adjusted earnings figures or other sources for the payout. You should monitor this closely.

Here is a summary of the key valuation metrics for P10, Inc. (PX) as of late 2025:

The stock is cheap on a forward P/E basis, but that high payout ratio is a real concern that limits the margin of safety. You need to dig into the quality of those forward earnings estimates and the company's fee structure to understand why the analysts are so bullish while the price has tanked. You can get a deeper dive into the institutional ownership and motivations of big players by Exploring P10, Inc. (PX) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at P10, Inc. (PX), and while their Fee-Paying Assets Under Management (FPAUM) growth is impressive, you need to map the near-term risks that could trip up their revenue. The core issue for P10 is a revenue growth headwind and the inherent volatility of their private markets business, despite their strong fundraising momentum.

The biggest internal risk right now is the higher-than-expected capital 'step-downs and expirations' in 2025. This is essentially capital leaving funds as investments are paid down or fund terms end. In the third quarter of 2025 alone, these step-downs hit $673 million, a significant jump from $435 million in Q2 2025. This was driven by early paydowns in the credit business and an early Separately Managed Account (SMA) expiration. That's a lot of capital to replace.

• Revenue Growth Pressure: Q3 2025 revenue was $75.9 million, missing analyst estimates.
• Fund Volatility: Higher step-downs mean a faster erosion of the fee-paying base.
• Integration Risk: Successfully integrating new acquisitions, like Qualitas Funds, requires flawless execution.

This operational challenge directly impacts financial performance. Here's the quick math: strong FPAUM growth (up 17% year-over-year to $29.1 billion in Q3 2025) should translate to revenue, but the Q3 revenue miss shows a gap. The market is defintely watching if the projected full-year sales estimate of around $302.3 million is achievable given the near-term revenue headwinds.

The external risks are what you'd expect for an alternative asset manager. P10, Inc. operates in a highly competitive landscape, and macroeconomic uncertainties-like interest rate changes or a slowdown in private market deal flow-could slow their ability to deploy capital and raise new funds. Also, any changes to the regulatory environment (like new rules from the SEC on private fund advisers) could increase compliance costs and operational complexity.

Still, P10 has clear mitigation strategies. Management expects the elevated step-down rate to normalize in 2026, and they noted that a portion of the Q3 step-downs is 'recyclable capital' that will be redeployed into new funds. Plus, they've raised their 2025 organic fundraising target to $5 billion, a strong signal of confidence that they can offset the outflows. They are also maintaining a disciplined underwriting approach, which is crucial for managing credit risk.

To be fair, the private markets are competitive. You need to watch for the firm's ability to maintain its average fee rate of 103 basis points on management fees, especially as competitors try to undercut on price. This is the core of their business model.

The table below summarizes the key financial risk indicators from the Q3 2025 report:

Your next step is to track the Q4 2025 fundraising figures to see if they hit that $5 billion target and if the step-down rate shows signs of slowing. For a deeper dive, review the full context at Breaking Down P10, Inc. (PX) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for a clear path forward for P10, Inc. (PX), and the short answer is that their growth engine is firing on multiple cylinders, even with some revenue misses this year. The company's strategy of focusing on smaller, less-contested markets is defintely paying off in terms of capital raising, which is the lifeblood of an alternative asset manager.

The core of P10's future growth rests on two pillars: strategic acquisitions and a laser focus on the middle and lower-middle market. This market segment offers structural advantages like lower upfront valuations and less competition, which CEO Luke Sarsfield has repeatedly highlighted as key to generating durable alpha (returns above a benchmark). It's a smart place to be when the larger private equity deals are getting bloated.

A major growth driver in 2025 was the acquisition of Qualitas Funds, which closed in April. This move immediately added $1 billion to their Fee-Paying Assets Under Management (FPAUM) and gave P10 a strong European footprint, plus access to over 1,300 new high-net-worth investors. This inorganic growth is already integrated and set to drive future fee-related revenue.

Looking at the numbers for the full fiscal year, the consensus estimates show continued expansion. Here's the quick math on what analysts are projecting for the full 2025 fiscal year, compared to the revenue P10 actually reported in the first three quarters:

The company is seeing strong momentum in capital formation, raising its full-year 2025 organic gross fundraising target to nearly $5 billion, up from the initial $4 billion guidance. This is a clear signal of investor demand for their strategies. P10's Fee-Paying AUM grew 17% year-over-year to $29.1 billion as of Q3 2025.

The company's strategic initiatives are focused on product innovation and platform synergies, not just fundraising volume. They are actively expanding their Private Credit business, especially in NAV lending (Net Asset Value lending), which saw deployment double in the first half of 2025 compared to 2024. This is a high-growth area in private markets. Plus, they are using the combined platform to increase cross-selling between their different strategies, which is a low-cost way to grow revenue from existing clients.

Their competitive advantage is simple: a stable, predictable revenue stream. About 99% of P10's total revenue is fee-related revenue (FRR), largely composed of management and advisory fees. This means their earnings are less exposed to the volatility of performance fees. They also have a deep pipeline of new funds, including the upcoming launch of the HARC Five fund and exploring Evergreen structures.

• Focus on less-competitive middle market.
• Grow FPAUM through organic fundraising and M&A.
• Expand high-margin private credit and secondaries.
• Leverage cross-selling across the platform.

What this estimate hides is the risk of a slowdown in the broader private markets, but P10's long-term fee arrangements-averaging over seven years-offer a strong buffer. Honestly, the biggest challenge is translating that impressive FPAUM growth into a proportional revenue increase, a common issue in the asset management space. You can review the foundational principles driving this strategy in their Mission Statement, Vision, & Core Values of P10, Inc. (PX).