10-Q · May 1, 2026
TPG's Q1 2026 report reveals a slight increase in revenue to $557.18 million, above the $555.61 million estimate, and an EPS of $0.70, surpassing the anticipated $0.64. However, performance allocation losses…
Earnings analysis · 10-Q
TPG earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
TPG delivered a strong Q2 recovery, with GAAP revenue rising 100% year over year to $1.841B, fee-related revenue increasing 27% to $628.2M, and diluted GAAP EPS improving to $0.39 from a $0.05 loss. Growth was supported…
Read full summary
TPG delivered a strong Q2 recovery, with GAAP revenue rising 100% year over year to $1.841B, fee-related revenue increasing 27% to $628.2M, and diluted GAAP EPS improving to $0.39 from a $0.05 loss. Growth was supported by higher management fees, exceptional Market Solutions capital-markets fees, and a broad recovery in performance allocations; AUM reached $326.8B. The main qualification is earnings quality: $923.2M of Q2 performance-allocation gains were unrealized, while debt increased to $2.344B and interest expense rose 43%.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.39
- Segment
- Single reportable segment; Q2 fee-related management fees by platform: Capital $145.407M, Growth $55.896M, Impact $88.067M, Credit $102.525M, Real Estate $84.592M, Market Solutions $40.366M.
- Segment
- Q2 fee-related transaction, monitoring and other fees, net: Market Solutions $92.321M, Credit $3.277M, Impact $1.986M, Capital $1.340M, Growth $0.574M, Real Estate $0.196M.
What stood out
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Revenue and fee earnings accelerated
GAAP revenue doubled year over year to $1.841B from $920.5M, driven by a $777.3M increase in performance allocations and a $135.9M increase in fees and other revenue. Fee-related revenue, the figure aligned with the earnings release, rose 27% to $628.2M from $495.1M.
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EPS returned sharply to profit
Diluted GAAP EPS improved to $0.39 from a loss of $0.05 in Q2 2025, while net income attributable to TPG Inc. increased to $93.4M from $14.9M. Income before taxes was $356.0M, versus $39.3M a year earlier.
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Strong fee-related earnings leverage
Fee-related earnings expanded 43% to $314.6M from $219.5M, with fee-related revenue up $133.1M while fee-related expenses increased only $37.9M. This implies material operating leverage in the recurring fee business.
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AUM and fundraising momentum continued
AUM rose 25% year over year to $326.8B and fee-earning AUM grew 24% to $181.0B. Capital raised was $16.1B in Q2, including $5.6B in Credit, $2.7B in Growth and $2.5B in Real Estate.
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Broad-based performance allocation rebound
Performance allocation income reached $1.113B, up 231% from $335.8M, with gains across Capital ($468.2M), Impact ($198.5M), Growth ($168.2M), Credit ($149.8M), and Real Estate ($106.0M).
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Liquidity remains substantial
Cash and equivalents increased to $944.7M from $826.1M at year-end, and the company reported total liquidity of $2.900B. Operating cash flow remained robust at $524.2M for the first half of 2026.
What to watch
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Higher leverage and interest burden
Debt obligations increased $621.1M in the first half to $2.344B following issuance of $500.0M of 2031 Senior Notes and revolving-facility borrowings. Q2 interest expense rose 43% year over year to $36.2M.
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Earnings rely heavily on unrealized carry
The Q2 carry surge was primarily valuation-driven: unrealized performance-allocation gains were $923.2M, while realized gains declined to $189.9M from $438.6M in Q2 2025. This makes GAAP revenue and earnings sensitive to market-value reversals.
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Cash conversion softened; investment outflow rose
First-half operating cash flow declined to $524.2M from $584.1M, while investing cash usage increased to $535.7M from $9.4M, primarily due to Jackson common-stock purchases and fixed-asset purchases. The filing does not disclose a standalone capex amount, so free cash flow cannot be calculated exactly.
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Material contingent carry clawback exposure
Management identifies $2.636B of performance allocations as potentially subject to clawback if remaining investments became worthless, although it considers that scenario remote. The recorded clawback at current unrealized values was $6.8M.
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No formal risk-factor update
No new or revised Item 1A risk factors were disclosed; the company directs investors to the December 31, 2025 Form 10-K. However, market risk remains material given $7.6B of accrued performance allocations in shared general-partner entities at June 30, 2026.
Management's outlook
No explicit quantitative earnings or revenue guidance was provided in the 10-Q. Management stated that $2.900B of total liquidity at June 30, 2026 is sufficient for projected capital needs and obligations for at least the next 12 months.
Earlier filings 4
10-K · February 17, 2026
TPG’s 2025 10-K emphasizes scale via organic growth and acquisitions, reporting $303.0 billion of AUM as of December 31, 2025 (up 166.4% from $113.6 billion in 2021) and describing a multi-platform franchise across…
10-Q · May 7, 2025
TPG reported a materially stronger quarter: total revenues of $1,034,876,000 in Q1 2025 (vs. $824,071,000 in Q1 2024) and net income attributable to TPG Inc. of $25,393,000 (vs. $15,519,000). Operating cash flow was…
10-Q · November 4, 2024
TPG reported total revenues of $855,403,000 for the three months ended September 30, 2024, driven by fee revenue of $524,733,000 and positive capital allocation-based income of $330,670,000. The consolidated entity…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.