BlackRock BLK · USD

27. Segment Information The Company’s management directs BlackRock’s operations as one business, the asset management business. As such, the Company operates in one asset management operating segment. The Company's chief operating decision maker ("CODM") is its Chairman and Chief Executive Officer, who reviews financial information presented, including significant expenses on a consolidated basis, as presented in the consolidated statements of income. The CODM utilizes a consolidated approach to assess performance and allocates resources using key financial metrics including total revenue, operating income and net income attributable to BlackRock, Inc. These financial metrics are used by the CODM to make key operating decisions, including capital allocation, determining annual and long-term compensation and managing costs in relation to revenue. Furthermore, these financial metrics are used to evaluate financial performance based on consolidated specific business objectives, contributions to the total firm operating margin and to evaluate the Company's relative performance against industry peers. See the consolidated financial statements for key financial metrics used by the CODM and for more financial information regarding the Company’s operating segment. The measure of segment assets is reported on the balance sheet as total consolidated assets.The following table illustrates total revenue for 2025, 2024 and 2023 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the customer resides, or affiliated services are provided. (in millions) 2025 2024 2023 Revenue Americas $ 15,956 $ 13,411 $ 11,899 Europe 7,166 6,137 5,209 Asia-Pacific 1,094 859 751 Total revenue $ 24,216 $ 20,407 $ 17,859 See Note 17, Revenue, for further information on the Company’s sources of revenue.The following table illustrates long-lived assets that consist of goodwill and property and equipment at December 31, 2025 and 2024 by geographic region. These amounts are aggregated on a legal entity basis and do not necessarily reflect where the asset is physically located. (in millions) 2025 2024 Long-lived Assets Americas $ 32,492 $ 25,515 Europe 3,921 1,437 Asia-Pacific 126 100 Total long-lived assets $ 36,539 $ 27,052 Americas is primarily comprised of the US, and also includes Latin America and Canada. Europe is primarily comprised of the UK, Luxembourg and the Netherlands, and also includes Switzerland, Ireland and France.

17. RevenueThe table below presents detail of revenue for 2025, 2024 and 2023 and includes the product type mix of investment advisory, administration fees and securities lending revenue and performance fees. (in millions) 2025 2024 2023 Revenue: Investment advisory, administration fees and securities lending revenue(1): Equity: Active $ 2,167 $ 2,166 $ 2,000 ETFs 6,043 5,124 4,418 Equity subtotal 8,210 7,290 6,418 Fixed income: Active 2,018 1,952 1,897 ETFs 1,532 1,367 1,230 Fixed income subtotal 3,550 3,319 3,127 Active multi-asset 1,332 1,248 1,172 Alternatives: Private markets 2,350 1,196 889 Liquid alternatives 669 568 572 Alternatives subtotal 3,019 1,764 1,461 Non-ETF index 1,321 1,183 1,127 Digital assets, commodities and multi-asset ETFs(2) 502 247 185 Long-term 17,934 15,051 13,490 Cash management 1,245 1,049 909 Total investment advisory, administration fees and securities lending revenue(3) 19,179 16,100 14,399 Investment advisory performance fees: Equity 132 161 99 Fixed income 16 34 4 Multi-asset 23 24 28 Alternatives: Private markets 695 308 273 Liquid alternatives 558 680 150 Alternatives subtotal 1,253 988 423 Total investment advisory performance fees 1,424 1,207 554 Technology services and subscription revenue 1,981 1,603 1,485 Distribution fees 1,355 1,273 1,262 Advisory and other revenue: Advisory 50 49 81 Other 227 175 78 Total advisory and other revenue 277 224 159 Total revenue $ 24,216 $ 20,407 $ 17,859 (1)Beginning in the first quarter of 2025, BlackRock reclassified the presentation of the Company's investment advisory, administration fees and securities lending revenue line items to align with the updated presentation of the Company's AUM line items. Such line items have been reclassified for 2024 and 2023 to conform to this new presentation. See page 11 of Exhibit 99.2 to the Current Report on Form 8-K furnished on April 11, 2025 for the reclassified presentation of the 2024 and 2023 investment advisory, administration fees and securities lending revenue line items. (2)Amounts include commodity ETFs and exchange-traded products ("ETPs"). (3)Amounts include $705 million, $615 million and $675 million of securities lending revenue for 2025, 2024 and 2023, respectively.

16. Commitments and Contingencies Investment Commitments. At December 31, 2025, the Company had $2.4 billion of various capital commitments to fund sponsored investment products, including CIPs. These products include various private market products, including private equity funds, real assets funds and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients. Contingencies Contingent Consideration Liabilities. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to the achievement of specified performance targets or satisfaction of certain post-closing events. The fair value of this contingent consideration is estimated at the time of acquisition closing and is included in contingent consideration liabilities on the consolidated statements of financial condition. The fair value of the remaining aggregate contingent payments at December 31, 2025 totaled $8.4 billion, including $4.8 billion and $3.5 billion related to the GIP and HPS Transactions, respectively. The contingent payments related to the GIP Transaction, if any, will be settled all in stock, for a number of shares ranging from 4.0 million to 5.2 million shares, subject to achieving certain performance targets. The contingent payments related to the HPS Transaction, if any, will be delivered all in Subco Units of approximately 2.8 million to 4.4 million, subject to achieving certain post-closing conditions and financial performance milestones. See Note 3, Acquisitions, for more information.Legal Proceedings.

25. Income Taxes The components of income tax expense for 2025, 2024 and 2023, are as follows: (in millions) 2025 2024 2023 Current income tax expense: Federal $ 1,250 $ 960 $ 641 State and local 214 142 176 Foreign 844 787 538 Total net current income tax expense 2,308 1,889 1,355 Deferred income tax expense (benefit): Federal (530 ) (105 ) 101 State and local (30 ) — 11 Foreign (71 ) (1 ) 12 Total net deferred income tax expense (benefit) (631 ) (106 ) 124 Total income tax expense $ 1,677 $ 1,783 $ 1,479 Income tax expense has been based on the following components of income before taxes, less net income (loss) attributable to NCI - CIPs: (in millions) 2025 2024 2023 Domestic $ 3,837 $ 5,139 $ 4,565 Foreign 3,520 3,013 2,416 Total $ 7,357 $ 8,152 $ 6,981 The foreign income before taxes includes countries that have statutory tax rates that are different than the US federal statutory tax rate of 21%, such as the UK, Channel Islands, British Virgin Islands and Germany.

18. Stock-Based Compensation Prior to May 15, 2024, the Company maintained the BlackRock, Inc. Second Amended and Restated 1999 Stock Award and Incentive Plan. On May 15, 2024, the Company adopted, pursuant to shareholder approval, the BlackRock, Inc. Third Amended and Restated 1999 Stock Award and Incentive Plan (the "Award Plan"). Any awards granted on or after May 15, 2024 are granted pursuant to such plan.The components of stock-based compensation expense are as follows: (in millions) 2025 2024 2023 Stock-based compensation: RSUs(1) $ 1,282 $ 718 $ 596 Stock options 25 35 34 Total stock-based compensation(2) $ 1,307 $ 753 $ 630 (1)Amount for 2025 includes incentive retention awards granted in connection with the HPS and GIP Transactions of $394 million and $142 million, respectively. Amount for 2024 includes $71 million of incentive retention awards granted in connection with the GIP Transaction. (2)Amounts for 2025 and 2023 include $12 million and $14 million, respectively, of compensation expense for accelerated vesting of previously granted stock-based compensation awards recognized as part of restructuring charges. See Note 24, Restructuring Charge for more information.Stock Award and Incentive Plan. Pursuant to the Award Plan, options to purchase shares of the Company’s common stock at an exercise price not less than the market value of BlackRock’s common stock on the date of grant in the form of stock options, restricted stock or RSUs may be granted to employees and nonemployee directors. A maximum of 48,500,000 shares of common stock were authorized for issuance under the Award Plan. Of this amount, 6,154,871 shares remain available for future awards at December 31, 2025. Upon exercise of employee stock options, the issuance of restricted stock or the vesting of RSUs, the Company generally issues shares out of treasury to the extent available. RSUsTime-Based RSUsPursuant to the Award Plan, RSUs may be granted to certain employees. Substantially all RSUs vest over periods ranging from one to five years and are expensed using the straight-line method over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. RSUs are not considered participating securities for purposes of calculating EPS as the dividend equivalents are subject to forfeiture prior to vesting of the award.RSU activity for 2025 is summarized below.

13. LeasesThe following table presents components of lease cost included in general and administration expense on the consolidated statements of income: (in millions) 2025 2024 2023 Lease cost: Operating lease cost(1) $ 233 $ 183 $ 189 Variable lease cost(2) 69 60 49 Total lease cost $ 302 $ 243 $ 238 (1)Amounts include short-term leases, which are immaterial for 2025, 2024 and 2023.(2)Amounts include operating lease payments, which may be adjusted based on usage, changes in an index or market rate, as well as common area maintenance charges and other variable costs not included in the measurement of ROU assets and operating lease liabilities.Supplemental information related to operating leases is summarized below: (in millions) 2025 2024 2023 Supplemental cash flow information: Operating cash flows from operating leases included in the measurement of operating lease liabilities $ 210 $ 183 $ 142 Supplemental noncash information: ROU assets in exchange for operating lease liabilities(1) $ 489 $ 235 $ 32 (1) Amount for 2025 includes $178 million of ROU assets obtained in connection with the HPS Transaction. Amount for 2024 includes $75 million of ROU assets obtained in connection with the GIP Transaction. See Note 3, Acquisitions, for further information.

3. AcquisitionsHPS Investment PartnersOn July 1, 2025, BlackRock completed the acquisition of 100% of the business and assets of HPS, a leading global credit investment manager, with substantially all consideration paid in Subco Units. The HPS Transaction, which added $165 billion of client AUM and $118 billion of fee-paying AUM, positions the Company to provide an integrated private credit platform with both public and private income solutions for clients across their whole portfolios. At close, approximately 8.5 million Subco Units were delivered to former equityholders of HPS and valued at $8.5 billion, based on the price of BlackRock's common stock on June 30, 2025 of approximately $1,049 and discounted for a one-year lack of marketability before exchange rights begin. Such Subco Units are exchangeable on a one-for-one basis into BlackRock common stock (accordingly, the value of each unit delivered was based on the price of a share of BlackRock's common stock and the specific terms of the Subco Units). Subco Units are also eligible to receive distributions at an amount equal to the dividend amount paid on each share of BlackRock common stock.In addition, as part of the purchase consideration, a contingent consideration payment, all in Subco Units, may be due subject to the achievement of certain post-closing conditions and financial performance milestones. The contingent consideration, if any, ranges from approximately 2.8 million to 4.4 million Subco Units and is expected to be payable approximately five years following the closing of the HPS Transaction. The fair value of the contingent consideration payment, which was determined by using the income approach with the assistance of a third-party valuation specialist, was $3.4 billion at close, and was recorded within contingent consideration liabilities in the consolidated statements of financial condition. Certain significant inputs were used to determine the fair value, including assumptions on discount rates as well as estimates of the timing and amounts of fundraising and fee related earnings forecasts, cost of equity, and future stock price performance (Level 3 inputs). The contingent consideration was classified as a liability as the value of the consideration to be delivered in Subco Units is predominately based on achieving certain performance targets or certain settlement provisions of the Subco Units.

Item 1C. CybersecurityCybersecurity Risk Management and StrategyBlackRock recognizes the importance of identifying, assessing, and managing material risks associated with cybersecurity threats. Cybersecurity represents an important component of the Company’s approach to enterprise risk management (“ERM”). The Company leverages a multi-layered defense model in which cybersecurity operational processes are executed by global information security and other firmwide teams, supported by dedicated internal audit and technology risk management (“TRM”) teams that independently review technology risks. The Company’s cybersecurity program is fully integrated into its ERM framework and is aligned with recognized frameworks, such as NIST Cybersecurity Framework, Cyber Risk Institute Profile, ISO/IEC 27001/27002, and other leading frameworks. BlackRock aims to inform and continuously improve its cybersecurity program through engagement with regulatory, client, insurer, vendor, partner, peer, government and industry organizations and associations, as well as external audit, technology risk, information security and other assessments.BlackRock seeks to address cybersecurity risks through a global, multilayered strategy of control programs that are designed to preserve the confidentiality, integrity and availability of the information that BlackRock collects and stores by identifying, preventing and mitigating cybersecurity threats and incidents. As one of the critical elements of the Company’s overall ERM framework, BlackRock’s cybersecurity program is focused on the following key areas:•Governance: As discussed in more detail under the heading “Cybersecurity Governance” below, the Board’s oversight of cybersecurity risk management is supported by the Risk Committee, which regularly interacts with the Company’s risk management function, the Company’s Chief Risk Officer (“CRO”) and Chief Information Security Officer (“CISO”), along with other members of management. In addition, technology and cybersecurity risks are formally overseen by a dedicated management risk governance committee, the Technology Risk and Cybersecurity Committee (“TRCC”), which is a sub-committee of the firmwide Enterprise Risk Committee (“ERC”).