Shares of Blue Owl Capital Inc. (OWL) plunged 5.02% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results. The alternative asset management firm reported earnings that fell short of analyst expectations and showed a significant decrease in GAAP net income.

Blue Owl Capital posted adjusted earnings per share of $0.17 for the quarter, missing the FactSet consensus estimate of $0.18. The company's revenue also fell short of expectations, coming in at $620.2 million compared to the anticipated $622.9 million. While the firm reported a 33% increase in GAAP revenues, reaching $683.5 million, its GAAP net income attributable to Blue Owl Capital Inc. dropped sharply by 70% to $7.4 million from $25.1 million in the same period last year.

Despite the overall growth in revenue, the company faced challenges in its management fee structure. Management fees as a percentage of permanent capital decreased from 90% to 81%, potentially raising concerns about the stability of its fee-generating base. However, Blue Owl Capital did see notable growth in its Real Assets segment, which experienced a 155% increase in revenues compared to the previous year. The Credit segment also showed positive momentum with a 28% revenue increase.