KKR & Co. Inc. (KKR) Executive Summary KKR & Co. Inc. is a global alternative asset manager that originates, invests and manages private equity, credit and real assets, with a financial profile characterized by strong cash generation and marked volatility in top‑line and earnings from period to period. Positive Highlights Operating cash flow has swung to a meaningful positive $6.65B TTM after mult
KKR & Co. Inc. is a global alternative asset manager that originates, invests and manages private equity, credit and real assets, with a financial profile characterized by strong cash generation and marked volatility in top‑line and earnings from period to period.
The foundation of business quality and long-term value creation
KKR & Co. Inc.'s revenue has shown material quarter-to-quarter volatility over the most recent reporting periods. After multibillion-dollar quarters in late 2024 and 2025 (notably $12.22B for 2024-12-31 and $15.06B for 2025-12-31), revenue declined to $6.20B in the quarter ending 2026-03-31; earlier in 2025 revenue ranged from $969.4M (2025-06-30) to $3.43B (2025-03-31), illustrating large swings rather than a steady trend.
Net income follows a similarly volatile pattern. Net income swung from a loss of -$185.9M in the quarter ended 2025-03-31 to gains of $900.4M (2025-09-30) and $1.66B (2025-12-31), then fell to $405.2M in the quarter ended 2026-03-31. The most recent quarterly revenue was $6.20B and the most recent quarterly net income was $405.2M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Apr 2025 to Mar 2026
Analyzing long-term margin stability and competitive positioning
KKR & Co. Inc.'s most recent margin readings show a mixed picture: the latest reported net profit margin is positive at 12.2% (period ending 2025-12-31), while the most recent gross and operating margins (period ending 2024-12-31) were negative at −6.5% and −102.4%, respectively. These recent data points indicate a divergence between top-line profitability measures (gross and operating) reported in 2024 and the subsequent net margin outcome reported in 2025.
Looking back, net profit margins have been highly volatile over the history shown, with very large positive spikes in 2016–2017 (164.7% on 2016-12-31 and 150.4% on 2017-06-30) and both positive and negative readings in earlier periods (for example, 57.4% on 2015-12-31 and −18.0% on 2016-03-31). The most recent values are: net profit margin 12.2% (2025-12-31), gross margin −6.5% (2024-12-31), and operating margin −102.4% (2024-12-31).
Understanding Profit Margins
Between Apr 2025 and Mar 2026, Kkr Co Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
Over the most recent periods, KKR & Co. Inc.'s trailing twelve‑month net income has declined from earlier highs around $4.6B (reported for the 2021 and early‑2022 TTM points) to $2.37B in the most recent Net Income TTM observation (period end 2025‑12‑31). Operating cash flow shows a contrasting pattern: it was deeply negative in 2022 (−$5.28B at 2022‑12‑31) and remained negative at −$1.49B in the 2023 TTM, then moved to a materially positive level in the 2024 TTM.
The clear inflection is in operating cash flow, which crossed from significant negative TTM values in 2022–2023 to a positive $6.65B in the 2024 TTM, while net income settled lower than its 2021–2022 peak. The most recent Net Income (TTM) was $2.37B (period end 2025‑12‑31), and the most recent Operating Cash Flow (TTM) was $6.65B (period end 2024‑12‑31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
KKR & Co. Inc.'s ROE shows a recent downward move from the mid-single-digit peaks in 2020–2022 toward low single digits by the end of 2025. After reaching 7.3% at 2021-12-31 and 6.5% at 2022-03-31, the metric declined to 2.9% in the most recent 2025-12-31 period, making the latest quarters notably weaker than the 2021 high.
Over the fuller history on the chart, ROE was generally low and volatile: sub-2% readings through 2013–2016, a sharp uptick to 6.8% by 2017-06-30, a rise again around 2020–2021, and then a fall into 2025. Across all reported quarters, the level has remained well below the commonly cited 15–20% “strong” threshold. The most recent trailing twelve-month Return on Equity (ROE) was 2.9%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
KKR & Co. Inc.’s trailing twelve-month operating cash flow shows a clear improvement in the most recent period: operating cash flow moved to a positive $6.65B for the TTM ending 2024-12-31 after being negative -$1.49B at the 2023 year-end and -$5.28B at the 2022 year-end, marking a notable inflection from multi-year negative to positive operating cash generation.
Over the same recent TTM, investing cash flow is strongly negative at $-19.05B (2024-12-31), a much larger outflow than the smaller negatives reported in prior years (for example, $-207.4M in 2019 and $-153.4M in 2020). Financing cash flow on a TTM basis has declined from earlier multi-year peaks (e.g., $22.06B at 2022-12-31 and $20.36B at 2021-12-31) to $7.08B as of 2024-12-31. The most recent trailing twelve-month values are: Operating Cash Flow (TTM) $6.65B, Investing Cash Flow (TTM) $-19.05B, and Financing Cash Flow (TTM) $7.08B.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
KKR & Co. Inc.'s trailing twelve‑month PE ratio shows a pronounced rise in the most recent quarter: after mid‑2021 to 2022 readings in the low-to-mid teens (15.2x at 2021-12-31, 12.1x at 2022-03-31, 17.8x at 2022-06-30), the metric increases sharply to 51.4x as of the period ending 2025-12-31. The most recent data point is the dominant feature of the series, representing a substantial upward shift relative to the 2020–2022 range.
Looking further back, there are earlier peaks around 2014–2016 (46.4x at 2014-12-31 and 48.9x at 2016-12-31) and a general decline into the teens by 2020–2022 before the recent jump. Notable inflection points in the provided history are the 2014–2016 highs, the drop into the low teens by 2021–03/2022, and the large increase to the latest value. The most recent Price-to-Earnings (PE) ratio was 51.4x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.