Patria shares tumble as Q2 earnings miss analyst expectations

Published 01/08/2025, 13:56
Patria shares tumble as Q2 earnings miss analyst expectations

Investing.com -- Patria Investments Ltd (NASDAQ:PAX) reported second quarter earnings that fell short of analyst expectations, sending shares down 5.4% as investors reacted to the earnings miss despite solid fundraising progress.

The alternative asset manager posted earnings per share of $0.24 for the second quarter ended June 30, 2025, missing the analyst consensus estimate of $0.28 by $0.04. The company reported Fee Related Earnings (FRE) of $46.1 million, representing a 17% increase from $39.5 million in the same quarter last year, with an FRE margin of 56.8%.

Patria’s Fee-Earning Assets Under Management (FEAUM) grew 20% YoY and 6% sequentially, with over $600 million in organic net inflows during the quarter. The company raised $1.3 billion in the second quarter, bringing total fundraising for the first half of 2025 to approximately $4.5 billion.

"In 2Q we made continued progress in leveraging and expanding the diversified platform we’ve built the past several years," said Alex Saigh, Patria’s CEO. "While a looming trade war and global economic concerns create potential headwinds, we believe we are well positioned to generate the $200 to $225 million of FRE we are targeting for 2025."

Based on strong fundraising momentum, Patria raised its full-year fundraising outlook to 5%-10% above its initial $6 billion target. The company also declared a quarterly dividend of $0.15 per share, payable on September 15, 2025, to shareholders of record as of August 15, 2025.

Additionally, Patria’s board authorized a new share repurchase program for up to 3 million outstanding Class A common shares, beginning in August 2025 and continuing until August 2026 or until completion of the repurchase.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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