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.

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