Carlyle Group Inc. 4.625% Subordinated Notes due 2061 (CGABL) Financials

Over the last four years through Q2 2025, Carlyle Group (NASDAQ: CG) demonstrates a generally positive financial trajectory with some fluctuations driven by earnings volatility, operating cash flow challenges, and active capital management.

• Income Growth: Consolidated net income rose significantly from negative $670 million in Q4 2023 to $328 million in Q2 2025, indicating strong recovery and growth in profitability.
• Consistent EPS Improvement: Diluted EPS improved from a low of negative $1.91 in Q4 2023 to $0.87 in Q2 2025, reflecting earnings strength and operational improvements.
• Rising Non-Interest Income: The firm’s total non-interest income grew markedly, reaching over $1.6 billion in Q2 2025 from under $1 billion in early 2023, signaling increasing fee and service revenue streams.
• Strong Capital Allocation: Carlyle has consistently repurchased common equity (e.g., over $100 million in Q2 2025) and maintained steady dividend payments of $0.35 per share, reflecting confidence and shareholder return focus.
• Robust Asset Base Growth: Total assets expanded from approximately $21 billion in early 2022 to over $25 billion by mid-2025, supporting business scale and investment capabilities.

• Interest Expense Stability: Long-term debt interest expense remained relatively stable around $27 to $30 million per quarter, indicating stable debt servicing costs despite growth.
• Operating Expenses: Salaries and employee benefits, along with other operating expenses, increased in line with revenue growth, reflecting business expansion but requiring ongoing efficiency monitoring.
• Net Cash from Financing Activities: Financing activities showed fluctuations, with occasional issuance of debt and variable repayments, reflecting active capital structure management.
• Non-Cash Adjustments in Cash Flow: Significant non-cash adjustments have impacted operating cash flows each quarter; these need to be monitored for impact on real cash generation.
• Exchange Rate Effects: The impact of exchange rate changes on cash balances has been variable, introducing some volatility to reported cash flow figures.

• Volatile Operating Cash Flow: Net cash from continuing operating activities was negative in multiple quarters (e.g., -$1.27 billion in Q2 2024), indicating challenges in converting earnings to cash.
• Large Quarterly Earnings Swings: The company experienced wide swings in quarterly net income, including a substantial loss in Q4 2023 (-$670 million), which may suggest exposure to investment valuation fluctuations or market conditions.
• Accumulated Other Comprehensive Loss: The negative accumulated other comprehensive income/loss remains significant (over -$180 million in Q2 2025), indicating ongoing unrealized losses on certain assets or liabilities.
• Increasing Long-Term Debt: Long-term debt grew from about $8.3 billion in early 2023 to over $10 billion by mid-2025, raising leverage considerations.
• Negative Quarterly Total Revenues in Some Periods: Given total revenue fluctuations and occasional negative net realized and unrealized capital gains, future earnings may remain volatile, potentially impacting stability.

In summary, Carlyle Group's financial performance has rebounded strongly from significant losses in 2023, with improving income, earnings per share, and growing non-interest revenue streams. However, investors should watch the volatility in cash flow from operations, leverage levels, and periodic large earnings swings likely tied to market-sensitive investment valuations. The firm’s steady dividends and share repurchases are positive signals of management confidence and commitment to shareholder returns.