DigitalBridge’s third quarter results reflected robust growth across key financial metrics, including fee revenue and fee-related earnings, with management emphasizing strong progress in core business areas. CEO Marc Ganzi pointed to record data center leasing activity, successful capital formation, and a significant increase in fee-earning equity under management as the primary drivers behind the company’s operational momentum. He noted, “This quarter really exemplifies what we've been building towards at DigitalBridge... the relevance and strategic value of our power bank was on full display.”
Is now the time to buy DBRG? Find out in our full research report (it’s free for active Edge members).
DigitalBridge (DBRG) Q3 CY2025 Highlights:
- Revenue: $3.82 million vs analyst estimates of $101.8 million (95% year-on-year decline, 96.2% miss)
- EPS (GAAP): $0.09 vs analyst expectations of $0.10 (12.9% miss)
- Adjusted EBITDA: -$7.57 million vs analyst estimates of $31.3 million (-198% margin, significant miss)
- Operating Margin: -360%, down from 7.6% in the same quarter last year
- Market Capitalization: $2.13 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From DigitalBridge’s Q3 Earnings Call
- Michael Elias (TD Cowen) asked about the recognition timeline for carried interest from data center leasing. CEO Marc Ganzi explained that full realization typically occurs over three to five years and is tied to project milestones and eventual monetization events.
- Jade Rahmani (KBW) inquired about the long-term ownership structure of new data center projects and fund outflows. Ganzi described a new Data Center Income Fund attracting real estate allocators and noted that legacy fund monetization will proceed at a disciplined pace, without providing specific guidance.
- Timothy D'Agostino (B. Riley Securities) questioned the exclusivity and long-term potential of the Franklin Templeton partnership. Ganzi stated that DigitalBridge is open to additional partnerships and values the ability to pair varied investment structures with different investor types.
- Rick Prentiss (Raymond James) sought clarity on the cadence of carried interest monetization and the stability of future returns. Ganzi and CFO Thomas Mayrhofer emphasized that a steady cadence of realizations can be expected as flagship funds mature, but that some exits have been delayed by attractive reinvestment opportunities.
- Eric Luebchow (Wells Fargo) asked about the split between behind-the-meter and grid-connected power in the energy strategy. Ganzi detailed the importance of microgrids, battery storage, and dynamic grid relationships, highlighting that the approach supports both data center needs and broader energy transition trends.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace at which new data center developments like Frontier and Lighthouse translate into fee-earning revenue, (2) progress in raising capital for new digital energy and private wealth products, and (3) the achievement of initial anchor commitments in the Asia Pacific and European markets. The impact of these initiatives on margin trends and the realization of carried interest will be critical indicators of execution.
DigitalBridge currently trades at $11.67, down from $12.73 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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