P10, Inc. reported significant financial improvements in its latest 10-Q filing for the three and nine months ended September 30, 2024. Total revenues for the third quarter reached $74.2 million, a 26% increase from $58.9 million in the same period of 2023. For the nine months, revenues totaled $211.4 million, up 18% from $178.7 million year-over-year. The growth in revenue was primarily driven by a 25% increase in management and advisory fees, which amounted to $72.6 million for the third quarter and $206.2 million for the nine months.

P10's income from operations surged to $8.8 million in Q3 2024, a remarkable increase from just $383,000 in Q3 2023. The company reported net income of $1.3 million for the third quarter, reversing a net loss of $8.8 million in the prior year. For the nine-month period, net income was $14.0 million, compared to a net loss of $5.9 million in 2023. This turnaround reflects a substantial change in profitability, attributed to increased revenues and improved operational efficiency.

Total operating expenses for the third quarter rose to $65.4 million, a 12% increase from $58.6 million in Q3 2023. The increase was driven by higher professional fees, which surged 173% to $9.2 million, largely due to expenses related to debt refinancing and management transitions. Despite the rise in expenses, the company managed to maintain a relatively stable compensation and benefits expense.

As of September 30, 2024, P10's total assets increased to $857.0 million from $834.1 million at the end of 2023, while total liabilities rose to $462.9 million, up from $408.9 million. The company's equity decreased to $394.1 million, down from $425.2 million, reflecting the impact of increased debt obligations, which rose to $319.4 million from $289.8 million.

P10 also engaged in strategic developments, including an equity purchase agreement to acquire Qualitas Equity Funds for $42.3 million in cash and shares, with potential additional earn-out payments based on future performance. The company has been active in its stock repurchase program, spending $78.1 million as of September 30, 2024, as part of a broader strategy to enhance shareholder value.

The company continues to focus on expanding its asset class solutions and geographic reach, capitalizing on increasing investor demand for private market solutions. P10's Fee-Paying Assets Under Management (FPAUM) reached $24.9 billion as of September 30, 2024, reflecting a robust growth trajectory in its investment management business.