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BlackRock Reports Full Year 2024 Diluted EPS of $42.01, or $43.61 as Adjusted; Fourth Quarter 2024 Diluted EPS of $10.63, or $11.93 as Adjusted

1. BlackRock reported $11.6 trillion AUM, highest ever, with $641 billion inflows. 2. Revenue increased 14%, largely due to market impact and GIP acquisition benefits. 3. Operating income rose 21%, and diluted EPS grew 15%, signaling solid growth. 4. BlackRock returned $4.7 billion to shareholders, including $1.6 billion in repurchases. 5. Pending acquisitions aim to enhance private markets capabilities significantly.

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FAQ

Why Very Bullish?

The strong AUM growth and increased earnings suggest robust future performance, as seen historically with companies benefiting from high net inflows.

How important is it?

The financial performance and strategic acquisitions could lead to significant market confidence, directly influencing investment decisions regarding BLK.

Why Long Term?

BlackRock's growth strategies involve long-term investments, indicating sustained future performance improvement similar to past ACV growth trends.

Related Companies

HPSPreqinGIP
NEW YORK--(BUSINESS WIRE)--BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months and year ended December 31, 2024. $11.6 trillion in AUM following a record $641 billion of full year net inflows, including $281 billion in the fourth quarter 14% increase in full year revenue driven by the positive impact of markets on average AUM, organic base fee growth, and fees on AUM acquired in the GIP Transaction, as well as higher performance fees and technology service revenue 21% increase in full year operating income (23% as adjusted) 15% increase in full year diluted EPS also reflects lower nonoperating income and a higher effective tax rate in the current year $4.7 billion returned to shareholders in 2024, including $1.6 billion of share repurchases Previously announced agreement to acquire HPS Investment Partners to create an integrated private credit franchise with approximately $220 billion in pro-forma client assets Laurence D. Fink, Chairman and CEO: “Clients entrusted BlackRock with a record $641 billion of net inflows in 2024, including $281 billion in the fourth quarter for two consecutive record flows quarters. 2024 was also a milestone year for strategic acquisitions grounded in client service, technology and scale. Our closing of GIP and planned acquisitions of HPS and Preqin are expected to significantly scale and enhance our private markets investment and data capabilities. “For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy. Client activity accelerated into the fourth quarter, resulting in 7% organic base fee growth and 12% technology services ACV growth. Our operating model delivered exceptional performance in a year of meaningful change. We crossed $20 billion of annual revenue, up 14% from 2023. As adjusted operating income grew by 23%, and our industry-leading margin of 44.5% was up 280 basis points. “Our record organic growth and financial results do not yet reflect the full integration or pending acquisitions of the high-growth businesses of GIP, HPS and Preqin. And we’ve steadily made organic investments ahead of structural trends that we expect to drive outsized growth in the years ahead. “BlackRock’s world-class talent is central to our significant growth and sustained performance. We have a longstanding, deliberate strategy of systematically elevating our strongest leaders around the world. We’re excited to again have a number of them taking on expanded roles this year. BlackRock’s leadership team alongside top talent from GIP, HPS and Preqin position us to serve our clients with excellence and seize the opportunities ahead of us. “In the 25 years since our IPO, BlackRock has delivered a 21% compounded annual total return for our shareholders, compared to 8% in the S&P 500. BlackRock enters 2025 with more growth and upside potential than ever. This is just the beginning.” FINANCIAL RESULTS NET FLOW HIGHLIGHTS(1) (in millions, Q4 Q4 Full Year Q4 Full Year except per share data) 2024 2023 2024 2023 (in billions) 2024 2024 AUM $ 11,551,251 $ 10,008,995 $ 11,551,251 $ 10,008,995 Long-term net flows: $ 201 $ 489 % change 15 % 15 % Average AUM $ 11,555,434 $ 9,384,929 $ 10,804,007 $ 9,220,700 By region: % change 23 % 17 % Americas $ 116 $ 317 Total net flows $ 281,416 $ 95,647 $ 641,351 $ 288,695 EMEA 74 149 APAC 11 23 GAAP basis: Revenue $ 5,677 $ 4,631 $ 20,407 $ 17,859 By client type: % change 23 % 14 % Operating income $ 2,075 $ 1,585 $ 7,574 $ 6,275 Retail: $ 5 $ 24 % change 31 % 21 % US 3 19 Operating margin 36.6 % 34.2 % 37.1 % 35.1 % International 2 5 Net income(1) $ 1,670 $ 1,375 $ 6,369 $ 5,502 % change 21 % 16 % ETFs: $ 143 $ 390 Diluted EPS $ 10.63 $ 9.15 $ 42.01 $ 36.51 Core equity 75 175 % change 16 % 15 % Strategic 18 113 Weighted-average Cryptocurrency 18 41 diluted shares 157.0 150.2 151.6 150.7 Other precision 32 61 % change 5 % 1 % Institutional: $ 53 $ 74 As Adjusted(2): Active 25 64 Operating income $ 2,326 $ 1,716 $ 8,110 $ 6,593 Index 28 9 % change 36 % 23 % Operating margin 45.5 % 41.6 % 44.5 % 41.7 % Net income(1) $ 1,874 $ 1,451 $ 6,612 $ 5,692 Cash management net flows $ 81 $ 153 % change 29 % 16 % Diluted EPS $ 11.93 $ 9.66 $ 43.61 $ 37.77 % change 23 % 15 % Total net flows $ 281 $ 641 _________________________ _________________________ (1) Net income represents net income attributable to BlackRock, Inc. (2) See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. (1) Totals may not add due to rounding.   BUSINESS RESULTS Q4 2024 Q4 2024 Base fees(1) Base fees(1) December 31, 2024 and securities Q4 2024 December 31, 2024 and securities AUM lending revenue (in millions), (unaudited) Net flows AUM lending revenue % of Total % of Total RESULTS BY CLIENT TYPE Retail $ 4,650 $ 1,015,827 $ 1,105 9 % 25 % ETFs 142,641 4,230,375 1,815 37 % 41 % Institutional: Active 25,126 2,136,749 962 18 % 22 % Index 28,251 3,247,637 242 28 % 5 % Total institutional 53,377 5,384,386 1,204 46 % 27 % Long-term 200,668 10,630,588 4,124 92 % 93 % Cash management 80,748 920,663 293 8 % 7 % Total $ 281,416 $ 11,551,251 $ 4,417 100 % 100 % RESULTS BY INVESTMENT STYLE Active $ 22,830 $ 2,870,656 $ 1,991 25 % 45 % Index and ETFs 177,838 7,759,932 2,133 67 % 48 % Long-term 200,668 10,630,588 4,124 92 % 93 % Cash management 80,748 920,663 293 8 % 7 % Total $ 281,416 $ 11,551,251 $ 4,417 100 % 100 % RESULTS BY PRODUCT TYPE Equity $ 126,566 $ 6,310,191 $ 2,142 55 % 48 % Fixed income 23,784 2,905,669 950 25 % 22 % Multi-asset 24,307 992,921 326 8 % 7 % Alternatives: Private markets 4,730 211,974 480 2 % 11 % Liquid alternatives 1,165 76,390 146 1 % 3 % Currency and commodities(2) 20,116 133,443 80 1 % 2 % Total alternatives 26,011 421,807 706 4 % 16 % Long-term 200,668 10,630,588 4,124 92 % 93 % Cash management 80,748 920,663 293 8 % 7 % Total $ 281,416 $ 11,551,251 $ 4,417 100 % 100 % _________________________ (1) Base fees include investment advisory and administration fees. (2) Amounts include cryptocurrency and commodity ETFs and exchange-traded products ("ETPs"). INVESTMENT PERFORMANCE AT DECEMBER 31, 2024(1) One-year period Three-year period Five-year period Fixed income: Actively managed AUM above benchmark or peer median Taxable 69% 79% 82% Tax-exempt 69% 42% 45% Index AUM within or above applicable tolerance 97% 99% 98% Equity: Actively managed AUM above benchmark or peer median Fundamental 47% 44% 64% Systematic 93% 89% 93% Index AUM within or above applicable tolerance 94% 99% 100% _________________________ (1) Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 14 for performance disclosure detail. TELECONFERENCE, WEBCAST AND PRESENTATION INFORMATION Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito, and Chief Financial Officer, Martin S. Small, will host a teleconference call for investors and analysts on Wednesday, January 15, 2025 at 7:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (786) 460-7166, or from outside the United States, (866) 409-1555, shortly before 7:30 a.m. and reference the BlackRock Conference Call (ID Number 6231688). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com. The webcast will be available for replay by 10:30 a.m. (Eastern Time) on Wednesday, January 15, 2025. To access the replay of the webcast, please visit the investor relations section of www.blackrock.com. ABOUT BLACKROCK BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (in millions, except per share data), (unaudited) Three Months Three Months Ended Ended December 31, September 30, 2024 2023 Change 2024 Change Revenue Investment advisory, administration fees and securities lending revenue: Investment advisory and administration fees $ 4,256 $ 3,448 $ 808 $ 3,881 $ 375 Securities lending revenue 161 157 4 149 12 Total investment advisory, administration fees and securities lending revenue 4,417 3,605 812 4,030 387 Investment advisory performance fees 451 311 140 388 63 Technology services revenue 428 379 49 403 25 Distribution fees 322 303 19 323 (1 ) Advisory and other revenue 59 33 26 53 6 Total revenue 5,677 4,631 1,046 5,197 480 Expense Employee compensation and benefits 1,885 1,503 382 1,578 307 Sales, asset and account expense: Distribution and servicing costs 565 502 63 549 16 Direct fund expense 389 318 71 379 10 Sub-advisory and other 42 35 7 34 8 Total sales, asset and account expense 996 855 141 962 34 General and administration expense 596 589 7 562 34 Restructuring charge - 61 (61 ) - - Amortization and impairment of intangible assets 125 38 87 89 36 Total expense 3,602 3,046 556 3,191 411 Operating income 2,075 1,585 490 2,006 69 Nonoperating income (expense) Net gain (loss) on investments (18 ) 265 (283 ) 177 (195 ) Interest and dividend income 212 159 53 236 (24 ) Interest expense (166 ) (82 ) (84 ) (154 ) (12 ) Total nonoperating income (expense) 28 342 (314 ) 259 (231 ) Income before income taxes 2,103 1,927 176 2,265 (162 ) Income tax expense 442 438 4 574 (132 ) Net income 1,661 1,489 172 1,691 (30 ) Less: Net income (loss) attributable to noncontrolling interests (9 ) 114 (123 ) 60 (69 ) Net income attributable to BlackRock, Inc. $ 1,670 $ 1,375 $ 295 $ 1,631 $ 39 Weighted-average common shares outstanding Basic 155.0 148.7 6.3 148.0 6.9 Diluted 157.0 150.2 6.8 149.6 7.4 Earnings per share attributable to BlackRock, Inc. common stockholders Basic $ 10.78 $ 9.25 $ 1.53 $ 11.02 $ (0.24 ) Diluted $ 10.63 $ 9.15 $ 1.48 $ 10.90 $ (0.27 ) Cash dividends declared and paid per share $ 5.10 $ 5.00 $ 0.10 $ 5.10 $ - Supplemental information: AUM (end of period) $ 11,551,251 $ 10,008,995 $ 1,542,256 $ 11,475,362 $ 75,889 Shares outstanding (end of period) 154.9 148.5 6.4 148.0 7.0 GAAP: Operating margin 36.6 % 34.2 % 240 bps 38.6 % (200 ) bps Effective tax rate 20.9 % 24.2 % (330 ) bps 26.0 % (510 ) bps As adjusted: Operating income (1) $ 2,326 $ 1,716 $ 610 $ 2,128 $ 198 Operating margin (1) 45.5 % 41.6 % 390 bps 45.8 % (30 ) bps Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2) $ 39 $ 199 $ (160 ) $ 190 $ (151 ) Net income attributable to BlackRock, Inc. (3) $ 1,874 $ 1,451 $ 423 $ 1,715 $ 159 Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) $ 11.93 $ 9.66 $ 2.27 $ 11.46 $ 0.47 Effective tax rate 20.8 % 24.2 % (340 ) bps 26.0 % (520 ) bps See pages 10 through 12 for the reconciliation to accounting principles generally accepted in the United States ("GAAP") and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.   CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (in millions, except per share data), (unaudited) Year Ended December 31, 2024 2023 Change Revenue Investment advisory, administration fees and securities lending revenue: Investment advisory and administration fees $ 15,485 $ 13,724 $ 1,761 Securities lending revenue 615 675 (60 ) Total investment advisory, administration fees and securities lending revenue 16,100 14,399 1,701 Investment advisory performance fees 1,207 554 653 Technology services revenue 1,603 1,485 118 Distribution fees 1,273 1,262 11 Advisory and other revenue 224 159 65 Total revenue 20,407 17,859 2,548 Expense Employee compensation and benefits 6,546 5,779 767 Sales, asset and account expense: Distribution and servicing costs 2,171 2,051 120 Direct fund expense 1,464 1,331 133 Sub-advisory and other 140 116 24 Total sales, asset and account expense 3,775 3,498 277 General and administration expense 2,221 2,095 126 Restructuring charge - 61 (61 ) Amortization and impairment of intangible assets 291 151 140 Total expense 12,833 11,584 1,249 Operating income 7,574 6,275 1,299 Nonoperating income (expense) Net gain (loss) on investments 492 699 (207 ) Interest and dividend income 767 473 294 Interest expense (538 ) (292 ) (246 ) Total nonoperating income (expense) 721 880 (159 ) Income before income taxes 8,295 7,155 1,140 Income tax expense 1,783 1,479 304 Net income 6,512 5,676 836 Less: Net income (loss) attributable to noncontrolling interests 143 174 (31 ) Net income attributable to BlackRock, Inc. $ 6,369 $ 5,502 $ 867 Weighted-average common shares outstanding Basic 150.0 149.3 0.7 Diluted 151.6 150.7 0.9 Earnings per share attributable to BlackRock, Inc. common stockholders Basic $ 42.45 $ 36.85 $ 5.60 Diluted $ 42.01 $ 36.51 $ 5.50 Cash dividends declared and paid per share $ 20.40 $ 20.00 $ 0.40 Supplemental information: AUM (end of period) $ 11,551,251 $ 10,008,995 $ 1,542,256 Shares outstanding (end of period) 154.9 148.5 6.4 GAAP: Operating margin 37.1 % 35.1 % 200 bps Effective tax rate 21.9 % 21.2 % 70 bps As adjusted: Operating income (1) $ 8,110 $ 6,593 $ 1,517 Operating margin (1) 44.5 % 41.7 % 280 bps Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2) $ 533 $ 648 $ (115 ) Net income attributable to BlackRock, Inc. (3) $ 6,612 $ 5,692 $ 920 Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) $ 43.61 $ 37.77 $ 5.84 Effective tax rate 23.5 % 21.4 % 210 bps See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) to the condensed consolidated statements of income and supplemental information for more information on as adjusted items. Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024.   ASSETS UNDER MANAGEMENT (in millions), (unaudited) Current Quarter Component Changes by Client Type and Product Type Net September 30, inflows Market December 31, 2024 (outflows) Acquisition(1) change FX impact(2) 2024 Average AUM(3) Retail: Equity $ 521,270 $ (127 ) $ - $ (7,209 ) $ (8,816 ) $ 505,118 $ 514,867 Fixed income 324,245 4,155 - (4,823 ) (4,936 ) 318,641 321,799 Multi-asset 154,078 (424 ) - (1,909 ) (767 ) 150,978 152,157 Alternatives 41,608 1,046 - (1,009 ) (555 ) 41,090 41,243 Retail subtotal 1,041,201 4,650 - (14,950 ) (15,074 ) 1,015,827 1,030,066 ETFs: Equity 3,061,840 110,601 - (43,614 ) (22,429 ) 3,106,398 3,090,667 Fixed income 1,019,176 11,834 - (34,956 ) (10,402 ) 985,652 1,005,156 Multi-asset 10,036 1,070 - (153 ) (219 ) 10,734 10,281 Alternatives 97,283 19,136 - 11,332 (160 ) 127,591 115,012 ETFs subtotal 4,188,335 142,641 - (67,391 ) (33,210 ) 4,230,375 4,221,116 Institutional: Active: Equity 225,361 (2,050 ) - 2,432 (6,895 ) 218,848 222,045 Fixed income 873,385 (1,509 ) - (18,258 ) (13,290 ) 840,328 851,910 Multi-asset 833,975 23,844 - (8,141 ) (21,639 ) 828,039 835,579 Alternatives 178,223 4,841 69,875 448 (3,853 ) 249,534 230,800 Active subtotal 2,110,944 25,126 69,875 (23,519 ) (45,677 ) 2,136,749 2,140,334 Index: Equity 2,472,528 18,142 - 46,933 (57,776 ) 2,479,827 2,493,289 Fixed income 806,888 9,304 - (14,389 ) (40,755 ) 761,048 780,330 Multi-asset 3,426 (183 ) - (1 ) (72 ) 3,170 3,325 Alternatives 2,653 988 - 19 (68 ) 3,592 3,149 Index subtotal 3,285,495 28,251 - 32,562 (98,671 ) 3,247,637 3,280,093 Institutional subtotal 5,396,439 53,377 69,875 9,043 (144,348 ) 5,384,386 5,420,427 Long-term 10,625,975 200,668 69,875 (73,298 ) (192,632 ) 10,630,588 10,671,609 Cash management 849,387 80,748 - 2,521 (11,993 ) 920,663 883,825 Total $ 11,475,362 $ 281,416 $ 69,875 $ (70,777 ) $ (204,625 ) $ 11,551,251 $ 11,555,434 Current Quarter Component Changes by Investment Style and Product Type (Long-Term) Net September 30, inflows Market December 31, 2024 (outflows) Acquisition(1) change FX impact(2) 2024 Average AUM(3) Active: Equity $ 492,193 $ (8,057 ) $ - $ (6,198 ) $ (10,775 ) $ 467,163 $ 480,255 Fixed income 1,171,739 1,580 - (22,623 ) (16,822 ) 1,133,874 1,148,283 Multi-asset 988,035 23,420 - (10,050 ) (22,404 ) 979,001 987,720 Alternatives 219,824 5,887 69,875 (560 ) (4,408 ) 290,618 272,039 Active subtotal 2,871,791 22,830 69,875 (39,431 ) (54,409 ) 2,870,656 2,888,297 Index and ETFs: ETFs: Equity 3,061,840 110,601 - (43,614 ) (22,429 ) 3,106,398 3,090,667 Fixed income 1,019,176 11,834 - (34,956 ) (10,402 ) 985,652 1,005,156 Multi-asset 10,036 1,070 - (153 ) (219 ) 10,734 10,281 Alternatives 97,283 19,136 - 11,332 (160 ) 127,591 115,012 ETFs subtotal 4,188,335 142,641 - (67,391 ) (33,210 ) 4,230,375 4,221,116 Non-ETF index: Equity 2,726,966 24,022 - 48,354 (62,712 ) 2,736,630 2,749,946 Fixed income 832,779 10,370 - (14,847 ) (42,159 ) 786,143 805,756 Multi-asset 3,444 (183 ) - (1 ) (74 ) 3,186 3,341 Alternatives 2,660 988 - 18 (68 ) 3,598 3,153 Non-ETF index subtotal 3,565,849 35,197 - 33,524 (105,013 ) 3,529,557 3,562,196 Index and ETFs subtotal 7,754,184 177,838 - (33,867 ) (138,223 ) 7,759,932 7,783,312 Long-term $ 10,625,975 $ 200,668 $ 69,875 $ (73,298 ) $ (192,632 ) $ 10,630,588 $ 10,671,609 Current Quarter Component Changes by Product Type (Long-Term) Net September 30, inflows Market December 31, 2024 (outflows) Acquisition(1) change FX impact(2) 2024 Average AUM(3) Equity $ 6,280,999 $ 126,566 $ - $ (1,458 ) $ (95,916 ) $ 6,310,191 $ 6,320,868 Fixed income 3,023,694 23,784 - (72,426 ) (69,383 ) 2,905,669 2,959,195 Multi-asset 1,001,515 24,307 - (10,204 ) (22,697 ) 992,921 1,001,342 Alternatives: Private markets 141,409 4,730 69,875 (746 ) (3,294 ) 211,974 193,493 Liquid alternatives 75,990 1,165 - 240 (1,005 ) 76,390 76,211 Currency and commodities(4) 102,368 20,116 - 11,296 (337 ) 133,443 120,500 Alternatives subtotal 319,767 26,011 69,875 10,790 (4,636 ) 421,807 390,204 Long-term $ 10,625,975 $ 200,668 $ 69,875 $ (73,298 ) $ (192,632 ) $ 10,630,588 $ 10,671,609 _________________________ (1) Amounts include AUM attributable to the acquisition of Global Infrastructure Management, LLC ("GIP") in October 2024 (the "GIP Transaction"). (2) Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. (3) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months. (4) Amounts include cryptocurrency and commodity ETFs and ETPs.   ASSETS UNDER MANAGEMENT (in millions), (unaudited) Year-over-Year Component Changes by Client Type and Product Type Net December 31, inflows Market December 31, 2023 (outflows) Acquisition(1) change FX impact(2) 2024 Average AUM(3) Retail: Equity $ 435,734 $ 15,285 $ 4,074 $ 54,257 $ (4,232 ) $ 505,118 $ 485,161 Fixed income 312,799 11,671 - 1,483 (7,312 ) 318,641 316,520 Multi-asset 139,537 (2,328 ) - 14,420 (651 ) 150,978 147,169 Alternatives 41,627 (261 ) - 69 (345 ) 41,090 41,087 Retail subtotal 929,697 24,367 4,074 70,229 (12,540 ) 1,015,827 989,937 ETFs: Equity 2,532,631 236,357 - 359,322 (21,912 ) 3,106,398 2,845,456 Fixed income 898,403 112,341 - (16,291 ) (8,801 ) 985,652 948,250 Multi-asset 9,140 1,025 - 841 (272 ) 10,734 9,451 Alternatives 59,125 40,710 - 27,919 (163 ) 127,591 89,331 ETFs subtotal 3,499,299 390,433 - 371,791 (31,148 ) 4,230,375 3,892,488 Institutional: Active: Equity 186,688 5,380 - 30,876 (4,096 ) 218,848 207,929 Fixed income 836,823 (2,843 ) - 16,885 (10,537 ) 840,328 841,830 Multi-asset 717,182 54,887 - 72,798 (16,828 ) 828,039 774,210 Alternatives 171,980 7,023 69,875 3,618 (2,962 ) 249,534 191,190 Active subtotal 1,912,673 64,447 69,875 124,177 (34,423 ) 2,136,749 2,015,159 Index: Equity 2,138,291 (31,454 ) - 420,860 (47,870 ) 2,479,827 2,333,824 Fixed income 756,001 42,500 - (5,068 ) (32,385 ) 761,048 759,871 Multi-asset 4,945 (1,906 ) - 204 (73 ) 3,170 3,693 Alternatives 3,252 234 - 165 (59 ) 3,592 2,912 Index subtotal 2,902,489 9,374 - 416,161 (80,387 ) 3,247,637 3,100,300 Institutional subtotal 4,815,162 73,821 69,875 540,338 (114,810 ) 5,384,386 5,115,459 Long-term 9,244,158 488,621 73,949 982,358 (158,498 ) 10,630,588 9,997,884 Cash management 764,837 152,730 - 10,606 (7,510 ) 920,663 806,123 Total $ 10,008,995 $ 641,351 $ 73,949 $ 992,964 $ (166,008 ) $ 11,551,251 $ 10,804,007 Year-over-Year Component Changes by Investment Style and Product Type (Long-Term) Net December 31, inflows Market December 31, 2023 (outflows) Acquisition(1) change FX impact(2) 2024 Average AUM(3) Active: Equity $ 427,448 $ (6,333 ) $ 4,074 $ 48,479 $ (6,505 ) $ 467,163 $ 461,583 Fixed income 1,123,422 9,184 - 18,516 (17,248 ) 1,133,874 1,133,152 Multi-asset 856,705 52,553 - 87,221 (17,478 ) 979,001 921,364 Alternatives 213,603 6,760 69,875 3,687 (3,307 ) 290,618 232,274 Active subtotal 2,621,178 62,164 73,949 157,903 (44,538 ) 2,870,656 2,748,373 Index and ETFs: ETFs: Equity 2,532,631 236,357 - 359,322 (21,912 ) 3,106,398 2,845,456 Fixed income 898,403 112,341 - (16,291 ) (8,801 ) 985,652 948,250 Multi-asset 9,140 1,025 - 841 (272 ) 10,734 9,451 Alternatives 59,125 40,710 - 27,919 (163 ) 127,591 89,331 ETFs subtotal 3,499,299 390,433 - 371,791 (31,148 ) 4,230,375 3,892,488 Non-ETF index: Equity 2,333,265 (4,456 ) - 457,514 (49,693 ) 2,736,630 2,565,331 Fixed income 782,201 42,144 - (5,216 ) (32,986 ) 786,143 785,069 Multi-asset 4,959 (1,900 ) - 201 (74 ) 3,186 3,708 Alternatives 3,256 236 - 165 (59 ) 3,598 2,915 Non-ETF index subtotal 3,123,681 36,024 - 452,664 (82,812 ) 3,529,557 3,357,023 Index and ETFs subtotal 6,622,980 426,457 - 824,455 (113,960 ) 7,759,932 7,249,511 Long-term $ 9,244,158 $ 488,621 $ 73,949 $ 982,358 $ (158,498 ) $ 10,630,588 $ 9,997,884 Year-over-Year Component Changes by Product Type (Long-Term) Net December 31, inflows Market December 31, 2023 (outflows) Acquisition(1) change FX impact(2) 2024 Average AUM(3) Equity $ 5,293,344 $ 225,568 $ 4,074 $ 865,315 $ (78,110 ) $ 6,310,191 $ 5,872,370 Fixed income 2,804,026 163,669 - (2,991 ) (59,035 ) 2,905,669 2,866,471 Multi-asset 870,804 51,678 - 88,263 (17,824 ) 992,921 934,523 Alternatives: Private markets 136,909 9,457 69,875 (1,803 ) (2,464 ) 211,974 154,597 Liquid alternatives 74,233 (2,609 ) - 5,482 (716 ) 76,390 75,402 Currency and commodities(4) 64,842 40,858 - 28,092 (349 ) 133,443 94,521 Alternatives subtotal 275,984 47,706 69,875 31,771 (3,529 ) 421,807 324,520 Long-term $ 9,244,158 $ 488,621 $ 73,949 $ 982,358 $ (158,498 ) $ 10,630,588 $ 9,997,884 _________________________ (1) Amounts include AUM attributable to the GIP Transaction and the acquisition of SpiderRock Advisors, LLC in May 2024 (the "SpiderRock Transaction"). (2) Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes. (3) Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months. (4) Amounts include cryptocurrency and commodity ETFs and ETPs.   SUMMARY OF REVENUE Three Months Three Months Ended Ended Year Ended December 31, September 30, December 31, (in millions), (unaudited) 2024 2023 Change 2024 Change 2024 2023 Change Revenue Investment advisory, administration fees and securities lending revenue: Equity: Active $ 558 $ 484 $ 74 $ 553 $ 5 $ 2,166 $ 2,000 $ 166 ETFs 1,375 1,102 273 1,309 66 5,124 4,418 706 Non-ETF index 209 183 26 198 11 784 743 41 Equity subtotal 2,142 1,769 373 2,060 82 8,074 7,161 913 Fixed income: Active 494 468 26 493 1 1,952 1,897 55 ETFs 360 311 49 354 6 1,367 1,230 137 Non-ETF index 96 85 11 93 3 369 353 16 Fixed income subtotal 950 864 86 940 10 3,688 3,480 208 Multi-asset 326 299 27 325 1 1,278 1,203 75 Alternatives: Private markets 480 251 229 235 245 1,196 889 307 Liquid alternatives 146 138 8 143 3 568 572 (4 ) Currency and commodities(1) 80 44 36 63 17 247 185 62 Alternatives subtotal 706 433 273 441 265 2,011 1,646 365 Long-term 4,124 3,365 759 3,766 358 15,051 13,490 1,561 Cash management 293 240 53 264 29 1,049 909 140 Total investment advisory, administration fees and securities lending revenue 4,417 3,605 812 4,030 387 16,100 14,399 1,701 Investment advisory performance fees: Equity 112 61 51 13 99 161 99 62 Fixed income 22 2 20 3 19 34 4 30 Multi-asset 10 5 5 1 9 24 28 (4 ) Alternatives: Private markets 108 149 (41 ) 7 101 308 273 35 Liquid alternatives 199 94 105 364 (165 ) 680 150 530 Alternatives subtotal 307 243 64 371 (64 ) 988 423 565 Total investment advisory performance fees 451 311 140 388 63 1,207 554 653 Technology services revenue 428 379 49 403 25 1,603 1,485 118 Distribution fees 322 303 19 323 (1 ) 1,273 1,262 11 Advisory and other revenue: Advisory 14 15 (1 ) 11 3 49 81 (32 ) Other 45 18 27 42 3 175 78 97 Total advisory and other revenue 59 33 26 53 6 224 159 65 Total revenue $ 5,677 $ 4,631 $ 1,046 $ 5,197 $ 480 $ 20,407 $ 17,859 $ 2,548 _________________________ (1) Amounts include cryptocurrency and commodity ETFs and ETPs. Highlights Investment advisory, administration fees and securities lending revenue increased $812 million from the fourth quarter of 2023 and $387 million from the third quarter of 2024, primarily driven by organic base fee growth, the impact of market beta on average AUM and approximately $230 million of fees related to AUM acquired in the GIP Transaction. Securities lending revenue of $161 million increased from $157 million in the fourth quarter of 2023 and $149 million in the third quarter of 2024. Performance fees increased $140 million from the fourth quarter of 2023, reflecting higher revenue from liquid alternative and long-only products, partially offset by lower revenue from private markets products. Performance fees increased $63 million from the third quarter of 2024, primarily driven by higher revenue from private markets and long-only products, partially offset by strong performance from a single hedge fund with an annual performance measurement period that ends in the third quarter. Technology services revenue increased $49 million from the fourth quarter of 2023 and $25 million from the third quarter of 2024, reflecting the successful onboarding of a number of new clients. Technology services annual contract value (“ACV”)(1) increased 12% from the fourth quarter of 2023, driven by strong demand for a full range of Aladdin technology offerings. _________________________ (1) See note (4) to the condensed consolidated statements of income and supplemental information on page 12 for more information on ACV.   SUMMARY OF OPERATING EXPENSE Three Months Three Months Ended Ended Year Ended December 31, September 30, December 31, (in millions), (unaudited) 2024 2023 Change 2024 Change 2024 2023 Change Operating expense Employee compensation and benefits $ 1,885 $ 1,503 $ 382 $ 1,578 $ 307 $ 6,546 $ 5,779 $ 767 Sales, asset and account expense(1): Distribution and servicing costs 565 502 63 549 16 2,171 2,051 120 Direct fund expense 389 318 71 379 10 1,464 1,331 133 Sub-advisory and other 42 35 7 34 8 140 116 24 Total sales, asset and account expense 996 855 141 962 34 3,775 3,498 277 General and administration expense: Marketing and promotional 92 87 5 64 28 314 309 5 Occupancy and office related 113 105 8 105 8 421 418 3 Portfolio services 68 68 - 65 3 262 270 (8 ) Technology 182 186 (4 ) 175 7 674 607 67 Professional services 88 67 21 67 21 277 195 82 Communications 10 11 (1 ) 10 - 39 47 (8 ) Foreign exchange remeasurement (7 ) (4 ) (3 ) 3 (10 ) - (6 ) 6 Contingent consideration fair value adjustments (28 ) 2 (30 ) (2 ) (26 ) (36 ) 3 (39 ) Other general and administration 78 67 11 75 3 270 252 18 Total general and administration expense 596 589 7 562 34 2,221 2,095 126 Restructuring charge - 61 (61 ) - - - 61 (61 ) Amortization and impairment of intangible assets 125 38 87 89 36 291 151 140 Total operating expense $ 3,602 $ 3,046 $ 556 $ 3,191 $ 411 $ 12,833 $ 11,584 $ 1,249 _________________________ (1) Beginning in the first quarter of 2024, BlackRock, Inc. updated the presentation of the Company’s expense line items within the condensed consolidated statements of income by including a new “sales, asset and account expense” income statement caption. Such expense line items have been recast for 2023 to conform to this new presentation. For a recast of 2023 expense line items, see page 12 of Exhibit 99.1 to the Current Report on Form 8-K furnished on April 12, 2024. Highlights Employee compensation and benefits expense increased $382 million from the fourth quarter of 2023 and $307 million from the third quarter of 2024, primarily reflecting higher incentive compensation as a result of higher performance fees and operating income. Fourth quarter 2024 employee compensation and benefit expense was also impacted by the GIP Transaction, including nonrecurring retention-related deferred compensation expense(1). Sales, asset and account expense increased $141 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, driven by higher distribution and servicing costs and direct fund expense, primarily reflecting higher average AUM. General and administration expense increased $7 million from the fourth quarter of 2023 and $34 million from the third quarter of 2024, primarily associated with the acquisition-related costs(1) in connection with the GIP Transaction, including transaction costs recorded in professional services expense, partially offset by lower contingent consideration fair value adjustments. The general and administration expense increase from the third quarter of 2024 also included higher seasonal marketing and promotional expense. Amortization and impairment of intangible assets(1) increased $87 million from the fourth quarter of 2023 and $36 million from the third quarter of 2024, primarily reflecting amortization of intangible assets acquired in the GIP Transaction. In addition, third quarter 2024 amortization and impairment of intangible assets included the impact of a $50 million noncash impairment charge related to certain of the Company's indefinite-lived management contracts. In the fourth quarter of 2023, a restructuring charge(1) of $61 million, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, was recorded in connection with initiatives to reorganize specific platforms, primarily Aladdin and private markets. _________________________ (1) These expenses have been excluded from the Company's "as adjusted" financial results under the expense adjustments for acquisition-related costs and restructuring charge, as applicable. See pages 10 through 12 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.   SUMMARY OF NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS Three Months Three Months Ended Ended Year Ended December 31, September 30, December 31, (in millions), (unaudited) 2024 2023 Change 2024 Change 2024 2023 Change Nonoperating income (expense), GAAP basis $ 28 $ 342 $ (314 ) $ 259 $ (231 ) $ 721 $ 880 $ (159 ) Less: Net income (loss) attributable to noncontrolling interests ("NCI") (9 ) 114 (123 ) 60 (69 ) 143 174 (31 ) Nonoperating income (expense), net of NCI 37 228 (191 ) 199 (162 ) 578 706 (128 ) Less: Hedge gain (loss) on deferred cash compensation plans(1) (2 ) 29 (31 ) 9 (11 ) 45 58 (13 ) Nonoperating income (expense), net of NCI, as adjusted(2) $ 39 $ 199 $ (160 ) $ 190 $ (151 ) $ 533 $ 648 $ (115 ) Three Months Three Months Ended Ended Year Ended December 31, September 30, December 31, (in millions), (unaudited) 2024 2023 Change 2024 Change 2024 2023 Change Net gain (loss) on investments, net of NCI Private equity $ (42 ) $ 68 $ (110 ) $ 9 $ (51 ) $ (10 ) $ 349 $ (359 ) Real assets (5 ) 2 (7 ) 13 (18 ) 14 13 1 Other alternatives(3) 8 17 (9 ) 9 (1 ) 41 49 (8 ) Other investments(4) 42 15 27 20 22 127 66 61 Hedge gain (loss) on deferred cash compensation plans(1) (2 ) 29 (31 ) 9 (11 ) 45 58 (13 ) Subtotal 1 131 (130 ) 60 (59 ) 217 535 (318 ) Other income/gain (expense/loss)(5) (10 ) 20 (30 ) 57 (67 ) 132 (10 ) 142 Total net gain (loss) on investments, net of NCI (9 ) 151 (160 ) 117 (126 ) 349 525 (176 ) Interest and dividend income 212 159 53 236 (24 ) 767 473 294 Interest expense (166 ) (82 ) (84 ) (154 ) (12 ) (538 ) (292 ) (246 ) Net interest income (expense) 46 77 (31 ) 82 (36 ) 229 181 48 Nonoperating income (expense), net of NCI 37 228 (191 ) 199 (162 ) 578 706 (128 ) Less: Hedge gain (loss) on deferred cash compensation plans(1) (2 ) 29 (31 ) 9 (11 ) 45 58 (13 ) Nonoperating income (expense), net of NCI, as adjusted(2) $ 39 $ 199 $ (160 ) $ 190 $ (151 ) $ 533 $ 648 $ (115 ) _________________________ (1) Amounts relate to the gains (losses) from economically hedging certain BlackRock deferred cash compensation plans. (2) Management believes nonoperating income (expense), net of NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating results, which ultimately impacts BlackRock’s book value. For more information on as adjusted items and the reconciliation to GAAP, see notes to the condensed consolidated statements of income and supplemental information on pages 10 through 12. (3) Amounts primarily include net gains (losses) related to credit funds, direct hedge fund strategies and hedge fund solutions. (4) Amounts primarily include net gains (losses) related to BlackRock's seed investment portfolio, net of impact of certain hedges. (5) Amounts for the three months and year ended December 31, 2024, include earnings (losses) from certain equity method minority investments, which the Company recorded within nonoperating income (expense) beginning in the first quarter of 2024 and noncash pre-tax gains (losses) related to the revaluation of certain minority investments. In addition, amount for the year ended December 31, 2024 includes a pre-tax gain of approximately $66 million in connection with a transaction related to a minority investment in EquiLend Holdings, LLC and a noncash pre-tax gain in connection with the SpiderRock Transaction of approximately $19 million. SUMMARY OF INCOME TAX EXPENSE Three Months Three Months Ended Ended Year Ended December 31, September 30, December 31, (in millions), (unaudited) 2024 2023 Change 2024 Change 2024 2023 Change Income tax expense $ 442 $ 438 $ 4 $ 574 $ (132 ) $ 1,783 $ 1,479 $ 304 Effective tax rate 20.9 % 24.2 % (330) bps 26.0 % (510) bps 21.9 % 21.2 % 70 bps Highlights Fourth quarter 2024 income tax expense includes $63 million of discrete tax benefits related to the realization of capital losses from changes in the Company’s organizational tax structure. In addition, fourth quarter 2024 income tax expense includes a $14 million net noncash tax expense related to the revaluation of certain deferred income tax liabilities. Third quarter 2023 income tax expense included approximately $223 million of discrete tax benefits related to the resolution of certain outstanding tax matters. RECONCILIATION OF GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED Three Months Ended Year Ended December 31, September 30, December 31, (in millions), (unaudited) 2024 2023 2024 2024 2023 Operating income, GAAP basis $ 2,075 $ 1,585 $ 2,006 $ 7,574 $ 6,275 Non-GAAP expense adjustments: Compensation expense related to appreciation (depreciation) on deferred cash compensation plans (a) - 28 7 43 57 Amortization and impairment of intangible assets (b) 125 38 89 291 151 Acquisition-related compensation costs (b) 116 2 11 148 17 Acquisition-related transaction costs (b)(1) 38 - 17 90 7 Contingent consideration fair value adjustments (b) (28 ) 2 (2 ) (36 ) 3 Lease costs - New York (c) - - - - 14 Restructuring charge (d) - 61 - - 61 Reduction of indemnification asset (e)(1) - - - - 8 Operating income, as adjusted (1) $ 2,326 $ 1,716 $ 2,128 $ 8,110 $ 6,593 Revenue, GAAP basis $ 5,677 $ 4,631 $ 5,197 $ 20,407 $ 17,859 Non-GAAP adjustments: Distribution fees (322 ) (303 ) (323 ) (1,273 ) (1,262 ) Investment advisory fees (243 ) (199 ) (226 ) (898 ) (789 ) Revenue used for operating margin measurement $ 5,112 $ 4,129 $ 4,648 $ 18,236 $ 15,808 Operating margin, GAAP basis 36.6 % 34.2 % 38.6 % 37.1 % 35.1 % Operating margin, as adjusted (1) 45.5 % 41.6 % 45.8 % 44.5 % 41.7 % _________________________ (1) Amounts included within general and administration expense.   See note (1) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items. RECONCILIATION OF GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), LESS NET INCOME (LOSS) ATTRIBUTABLE TO NCI, AS ADJUSTED Three Months Ended Year Ended December 31, September 30, December 31, (in millions), (unaudited) 2024 2023 2024 2024 2023 Nonoperating income (expense), GAAP basis $ 28 $ 342 $ 259 $ 721 $ 880 Less: Net income (loss) attributable to NCI (9 ) 114 60 143 174 Nonoperating income (expense), net of NCI 37 228 199 578 706 Less: Hedge gain (loss) on deferred cash compensation plans (a) (2 ) 29 9 45 58 Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted (2) $ 39 $ 199 $ 190 $ 533 $ 648 See notes (1) and (2) to the condensed consolidated statements of income and supplemental information on pages 11 and 12 for more information on as adjusted items. RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED Three Months Ended Year Ended December 31, September 30, December 31, (in millions, except per share data), (unaudited) 2024 2023 2024 2024 2023 Net income attributable to BlackRock, Inc., GAAP basis $ 1,670 $ 1,375 $ 1,631 $ 6,369 $ 5,502 Non-GAAP adjustments(1): Net impact of hedged deferred cash compensation plans (a) 2 (1 ) (2 ) (1 ) (1 ) Amortization and impairment of intangible assets (b) 94 28 67 218 114 Acquisition-related compensation costs (b) 87 1 8 110 12 Acquisition-related transaction costs (b) 28 - 13 66 5 Contingent consideration fair value adjustments (b) (21 ) 2 (2 ) (27 ) 3 Lease costs - New York (c) - - - - 11 Restructuring charge (d) - 46 - - 46 Income tax matters 14 - - (123 ) - Net income attributable to BlackRock, Inc., as adjusted (3) $ 1,874 $ 1,451 $ 1,715 $ 6,612 $ 5,692 Diluted weighted-average common shares outstanding 157.0 150.2 149.6 151.6 150.7 Diluted earnings per common share, GAAP basis $ 10.63 $ 9.15 $ 10.90 $ 42.01 $ 36.51 Diluted earnings per common share, as adjusted (3) $ 11.93 $ 9.66 $ 11.46 $ 43.61 $ 37.77 _________________________ (1) Non-GAAP adjustments, excluding income tax matters, are net of tax.   See note (3) to the condensed consolidated statements of income and supplemental information on page 12 for more information on as adjusted items.   NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited) BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented. Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows: (1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers. Operating income, as adjusted, includes the following non-GAAP expense adjustments: (a) Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income. This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies. (b) Acquisition-related costs. Acquisition related costs include adjustments related to amortization and noncash impairment of intangible assets, other acquisition-related costs, including professional services expense and compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies. (c) Lease costs – New York. In 2023, the Company continued to recognize lease expense within general and administration expense for both its current headquarters located at 50 Hudson Yards in New York and prior headquarters until the Company's lease on its prior headquarters expired in April 2023. The Company began lease payments related to its current headquarters in May 2023, but began recording lease expense in August 2021 when it obtained access to the building to begin its tenant improvements. Prior to the Company’s move to its current headquarters in February 2023, the impact of lease costs related to 50 Hudson Yards was excluded from operating income, as adjusted. In February 2023, the Company completed the majority of its move to 50 Hudson Yards and no longer excluded the impact of these lease costs. Subsequently, from February 2023 through April 2023, the Company excluded the impact of lease costs related to the Company's prior headquarters. Management believes excluding the impact of these respective New York lease costs (“Lease costs – New York”) when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented. (d) Restructuring charge. In the fourth quarter of 2023, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with initiatives to reorganize specific platforms, primarily Aladdin and private markets. Management believes excluding the impact of these restructuring charges when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented. (e) Reduction of indemnification asset. In connection with a previous acquisition, BlackRock recorded an $8 million indemnification asset. Due to the resolution of certain tax matters in the third quarter of 2023, BlackRock recorded $8 million of general and administration expense to reflect the reduction of the indemnification asset and an offsetting $8 million tax benefit. The $8 million general and administrative expense and $8 million tax benefit have been excluded from as adjusted results as there was no impact on BlackRock’s book value. Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed-through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed-through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client. The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries. (2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value. (3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. Amounts for income tax matters in 2024 include a discrete tax benefit of $137 million recognized in connection with the reorganization and establishment of a more efficient global intellectual property and technology platform and corporate structure. This discrete tax benefit has been excluded from as adjusted results due to the nonrecurring nature of the intellectual property reorganization. In addition, amounts for 2024 include a net noncash expense of $14 million associated with the revaluation of deferred tax liabilities related to intangible assets and goodwill as a result of tax rate changes. This discrete tax expense has been excluded from the as adjusted results as it does not have a cash flow impact as well as to ensure comparability among periods presented. Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares outstanding. (4) ACV: Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward-looking, annualized estimated value of the recurring subscription fees under client contracts, assuming all client contracts that come up for renewal are renewed, unless we have received a notice of termination, even though such notice may not be effective until a later date. ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and excludes nonrecurring fees such as implementation and consulting fees. FORWARD-LOOKING STATEMENTS This earnings release, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of HPS (the “HPS Transaction”), Preqin (the “Preqin Transaction”) and the GIP Transaction (together with the HPS Transaction and the Preqin Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) risks related to the HPS Transaction and the Preqin Transaction, including delays in the expected closing date of the HPS Transaction or the Preqin Transaction, the possibility that either or both of the HPS Transaction or the Preqin Transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions; the possibility that expected synergies and value creation from the HPS Transaction or the Preqin Transaction will not be realized, or will not be realized within the expected time period; and the risk of impacts to business and operational relationships related to disruptions from the HPS Transaction or the Preqin Transaction; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (12) the failure to effectively manage the development and use of artificial intelligence; (13) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (14) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (15) changes in law and policy and uncertainty pending any such changes; (16) any failure to effectively manage conflicts of interest; (17) damage to BlackRock’s reputation; (18) increasing focus from stakeholders regarding environmental, social and governance matters; (19) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (20) climate-related risks to BlackRock’s business, products, operations and clients; (21) the ability to attract, train and retain highly qualified and diverse professionals; (22) fluctuations in the carrying value of BlackRock’s economic investments; (23) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (24) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (25) the failure by key third-party providers of BlackRock to fulfill their obligations to BlackRock; (26) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (27) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded funds platform; (28) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (29) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions. BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on the Company’s website is not a part of this earnings release. PERFORMANCE NOTES Past performance is not indicative of future results. Except as specified, the performance information shown is as of December 31, 2024 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including US registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of November 30, 2024. The performance data does not include accounts terminated prior to December 31, 2024 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown. Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of December 31, 2024 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions. Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

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