Alternative investment management firm Hamilton Lane (NASDAQ: HLNE) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 27.3% year on year to $190.9 million. Its non-GAAP profit of $1.54 per share was 39.8% above analysts’ consensus estimates.

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Company Overview

With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ: HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Hamilton Lane grew its revenue at an excellent 19.6% compounded annual growth rate. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Hamilton Lane’s annualized revenue growth of 22.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Hamilton Lane reported robust year-on-year revenue growth of 27.3%, and its $190.9 million of revenue topped Wall Street estimates by 12.8%.

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Management Fees

While assets under management are the committed capital by clients - not revenue itself - they directly influence how much firms can earn in the form of management fees, which are charged as a percentage of AUM.

Hamilton Lane’s management fees have grown at an annual rate of 15.4% over the last five years, better than the broader financials industry but slower than its total revenue. Ignoring performance fees that typically range from 10-20% of investment gains, this tells us its asset management division was a net detractor to the company. When analyzing Hamilton Lane’s management fees over the last two years, we can see that growth decelerated to 14% annually.

In Q3, Hamilton Lane’s management fees were $142.1 million, beating analysts’ expectations by 1.2%. This print was 18.7% higher than the same quarter last year.

Key Takeaways from Hamilton Lane’s Q3 Results

It was good to see Hamilton Lane beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 1.8% to $117 immediately after reporting.

Hamilton Lane put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.