Digital infrastructure investor DigitalBridge Group (NYSE: DBRG) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 95% year on year to $3.82 million. Its GAAP profit of $0.09 per share was 12.9% below analysts’ consensus estimates.

Is now the time to buy DigitalBridge? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Transforming from a traditional real estate investor to a digital-focused powerhouse in 2021, DigitalBridge Group (NYSE: DBRG) is a global digital infrastructure investment firm that manages capital and operates assets across data centers, cell towers, fiber networks, and edge infrastructure.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, DigitalBridge’s demand was weak and its revenue declined by 35.2% per year. This was below our standards and is a sign of lacking business quality.

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. DigitalBridge’s recent performance shows its demand remained suppressed as its revenue has declined by 61.8% annually over the last two years. 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, DigitalBridge missed Wall Street’s estimates and reported a rather uninspiring 95% year-on-year revenue decline, generating $3.82 million of revenue.

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Assets Under Management (AUM)

Assets Under Management (AUM) encompasses all client funds under a firm's investment management umbrella. The recurring fee structure on these assets provides consistent revenue generation, offering financial stability even during periods of poor investment returns, though sustained underperformance can impact future asset flows.

DigitalBridge’s AUM has grown at an annual rate of 37.8% over the last five years, much better than the broader financials industry and faster than its total revenue. When analyzing DigitalBridge’s AUM over the last two years, we can see that growth decelerated to 18.6% annually. Fundraising or short-term investment performance were net contributors for the company over this shorter period since assets grew faster than total revenue. But again, we put less weight on asset growth given how lumpy and cyclical it can be.

In Q3, DigitalBridge’s AUM was $40.7 billion. This print was 19.4% higher than the same quarter last year.

Key Takeaways from DigitalBridge’s Q3 Results

This was a noisy quarter. AUM saw healthy growth, but revenue missed meaningfully due to a carried interest drag in the quarter. The stock traded up 1.4% to $12.91 immediately after reporting.

Big picture, is DigitalBridge a buy here and now? 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.