KKR · Financials(investment advice) · 10 years of annual accounts filed with the SEC · latest fiscal year ended 2025-12-31
KKR & Co. Inc. reported revenue of $19.5 billion in fiscal 2025, after growing 32.5% a year over the previous 9 years. Its operating margin narrowed from 233.1% in 2017 to 50.7%. On the accounting screens, it passes 2 of 6 Piotroski tests; 1 of the six cross-checks between its statements fires.
Revenue, fiscal 202519.5B+32.5% a year over 9 years
Operating margin50.7%gross margin —
Return on invested capital—24.6% on average over 1 years
Free cash flow—
Net debt ÷ EBITDA—net debt —
Piotroski F-score2/6tests of improvement passed
Is it growing?
Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.
RevenueOperating income
010.0B20.0B30.0B
2017Revenue 1.5BOperating income 3.6B
2018
2018Revenue 1.8BOperating income 3.1B
2019Revenue 1.8BOperating income 6.2B
2020Revenue 2.0BOperating income 6.7B
2021Revenue 16.2BOperating income 14.9B
2022Revenue 5.7BOperating income 1.3B
2023Revenue 14.5BOperating income 9.3B
2024Revenue 21.9BOperating income 8.9B
2025Revenue 19.5BOperating income 9.9B
2017201820182019202020212022202320242025
Compound growth a year
3 yrs
5 yrs
9 yrs
Revenue
+50.6%
+57.5%
+32.5%
Operating income
+98.7%
+8.1%
+11.9%
Net income
—
+3.4%
+9.8%
Earnings per share
—
-5.3%
—
Dividend per share
+12.2%
+7.0%
—
Shares
+1.2%
+9.2%
—
Falling shares are buybacks: each remaining share owns more of the company.
Does it earn more than its capital costs?
Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.
Needs a cost of capital, which comes from the valuation below.
Return on equity
7.7%
Return on assets
0.6%
Asset turnover
0.05×
Is the profit cash, and where does the cash go?
Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.
Net incomeFree cash flowAfter stock-based pay
-10.0B-5.0B05.0B
2017Net income 1.0BFree cash flow -3.6BAfter stock-based pay -4.0B
2018
2018Net income 1.1BFree cash flow -7.7BAfter stock-based pay -8.0B
2019Net income 2.0BFree cash flow -5.9BAfter stock-based pay -6.2B
2020Net income 2.0B
2021Net income 4.7B
2022Net income -521.7M
2023Net income 3.7B
2024Net income 3.1B
2025Net income 2.4B
2017201820182019202020212022202320242025
Per share
Earnings per shareFree cash flow per shareDividend per share
$-15.00$-10.00$-5.00$0.00$5.00$10.00
2017
2018
2018
2019Earnings per share $3.58Free cash flow per share $-10.49Dividend per share $0.48
2020Earnings per share $3.50Dividend per share $0.52
2021Earnings per share $7.94Dividend per share $0.56
2022Earnings per share $-0.61Dividend per share $0.52
2023Earnings per share $4.22Dividend per share $0.64
2024Earnings per share $3.46Dividend per share $0.69
2025Earnings per share $2.66Dividend per share $0.73
2017201820182019202020212022202320242025
Shares outstanding
Diluted shares
500.0M600.0M700.0M800.0M900.0M
2017
2018
2018
2019Diluted shares 560.0M
2020Diluted shares 572.9M
2021Diluted shares 595.7M
2022Diluted shares 861.1M
2023Diluted shares 885.0M
2024Diluted shares 888.2M
2025Diluted shares 891.5M
2017201820182019202020212022202320242025
How strong is the balance sheet?
Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.
Net debt
010.0B20.0B30.0B
2017Net debt 19.6B
2018
2018Net debt 20.9B
2019Net debt 24.8B
2020Net debt 28.1B
2021Net debt 26.4B
2022
2023
2024
2025
2017201820182019202020212022202320242025
Net debt ÷ EBITDA
—
Interest coverage
4× operating income ÷ interest
Current ratio
— current assets ÷ current liabilities
Cash conversion cycle
—
Three classic screens of the accounts
Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.
Piotroski F-score
Is the business improving? Nine yes-or-no tests, this year against last.
2of 6 tests passed
✓ProfitableReturn on assets above zeropassed
✓Cash from operationsOperating cash flow above zeropassed
✕Profitability improvedReturn on assets higher than a year beforefailed
✕Profit backed by cashOperating cash flow above net income (low accruals)failed
–Less long-term debtLong-term debt as a share of assets fell — not reportedno data
–More liquidCurrent ratio higher than a year before — not reportedno data
✕No new sharesShare count did not growfailed
–Better gross marginGross margin higher than a year before — not reportedno data
✕Sells more per assetAsset turnover higher than a year beforefailed
Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.
Altman Z''-score
Does the balance sheet look like those of companies that went bankrupt?
The accounts lack a line it needs (retained earnings, current assets or liabilities).
Beneish M-score
Do the accounts resemble those of companies that manipulated their earnings?
The accounts lack too many of the lines it needs.
Where the statements disagree
Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.
Reported profit comfortably exceeds the cash generated (2,370M against 478M).
Benign
Growth consuming working capital, or the seasonality of the year-end.
Worrying
Profit held up by accounting entries that do not turn into money.
What is it worth, under which assumptions?
A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.
The SEC accounts lack the lines needed for revenue, free cash flow or the share count, so there is no DCF for this company.
What it has filed lately
The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.
Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.
