DigitalBridge Group, Inc. (DBRG) | The Buildout — AI Infrastructure
The Verdict
DigitalBridge is a global alternative asset manager that raises and invests capital in digital infrastructure. Its funds own and control data center, cell tower, and fiber platforms, which build and lease capacity to hyperscalers and AI providers. This makes DigitalBridge a capital layer in the AI buildout: AI demand reaches it indirectly through management fees, co-investment fees, carried interest, and mark-to-market income on its own principal investments.
| Market Cap | — |
| Revenue (TTM) | $486M |
| Revenue Growth | −13.7% |
| EBITDA Margin (TTM) | 74.6% |
| Net Cash | $82M |
| Earnings Beats | 5 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- FEEUM reached $41.0 billion at December 31, 2025, ahead of the original $40 billion year-end target.
- Portfolio held over 20 GW of secured power and leased a record 2.6 GW in Q3 2025.
- Frontier and Lighthouse campuses total roughly $40 billion of contracted, pre-leased development with first deliverables expected in 2H 2026.
- Co-invest fee rate expanded to 70 basis points in Q3 2025, up from roughly 60 bps historically.
- Public shareholders own roughly 28% of carried interest across fund products, with realizations expected to begin in 2026–2028.
What We’re Watching
- Frontier and Lighthouse first data hall deliveries expected in 2H 2026; slippage would delay fee activation.
- Realized carried interest was zero in Q1 2026; management expects realizations to begin from the 2019-vintage fund in 2026–2028.
- Legacy fund outflows for DBP I, II, and InfraBridge remain unquantified; management declined to give 2026 specifics.
- SoftBank merger closing conditions include flagship fund consents, fee-paying client consents, and regulatory approvals; no closing date provided.
The underlying operating thesis strengthened through Q3 2025: the power bank converted to record leasing, FEEUM beat its target early, and co-invest fee rates improved. Since then, Q1 2026 results showed the expected catch-up fee step-down and another carried interest reversal, while the pending SoftBank transaction has suspended detailed guidance. The investment case is intact but disclosure-limited. The key open question is whether the contracted Frontier and Lighthouse data halls deliver on time in 2H 2026 and when realized carried interest turns positive.
Earnings Beat
DigitalBridge reported Q1 2026 revenue of $117.0 million, a gross margin of 90.9%, and EBITDA of $71.2 million. Fee-related earnings fell to $24.0 million from $35.0 million a year earlier, a 31% decline, as catch-up fees from the flagship fund's final close rolled off.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $117M | $133M | $45M | +157.7% |
| Gross margin | 90.9% | 90.2% | 68.2% | +2270bps |
| EBITDA | $71M | $81M | $6M | +1149.1% |
| EPS | $0.11 | $0.37 | $0.08 | +38.3% |
| Fee-related earnings (FRE) | $24.0M | $37.7M | $35.0M | -31.3% YoY |
Management tone: No earnings call on record for the latest period.
Management Guidance
No guidance was issued; the company said it would not provide detailed financial guidance during the pendency of the SoftBank transaction.
Trajectory
Q1 2026 revenue of $117 million followed $133 million in Q4 2025, while gross margin ticked up to 90.9% from 90.2%. The company's fee-related earnings fell to $24.0 million from $37.7 million sequentially, as catch-up fees rolled off and cash compensation rose 19% year over year. Management had warned that elevated margins would last only through the final flagship close in Q4 2025.
The Model
The model projects FY+1 revenue of $480 million and EBITDA of $291 million (60.6% margin), rising to $554 million revenue and $349 million EBITDA (63.0% margin) in FY+2. Near-term estimates sit below the trailing $486 million TTM revenue as catch-up fees normalize; the FY+2 lift is built on continued capital deployment and the newer digital power, stabilized data center, and private wealth strategies.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $415M | $480M | $554M |
| YoY Growth | — | +15.8% | +15.4% |
| EBITDA | $297M | $291M | $349M |
| EBITDA Margin | 71.7% | 60.6% | 63.0% |
Projections are the median of 5 independent model runs. The model’s revenue sits 12.4% above analyst consensus.
No guidance was issued; the company said it would not provide detailed financial guidance during the pendency of the SoftBank transaction.
What Could Go Right — and Wrong
- Frontier and Lighthouse first data halls deliver on schedule in 2H 2026, activating co-invest capital into FEEUM.
- The over 7 GW sales funnel converts to contracted leasing at rates that sustain co-invest fee growth.
- Realized carried interest from the 2019-vintage fund begins in 2026–2028 as management expects.
- New products (digital power, DCIF, private wealth) secure anchor commitments and raise fee-earning capital in 2026.
- Co-invest fee rate holds at 70 bps or better on new commitments.
- Frontier and Lighthouse deliveries slip, delaying fee activation and carry accrual.
- Legacy fund outflows for DBP I, II, and InfraBridge exceed replacement capital, shrinking FEEUM and FRE.
- Carried interest reversals continue beyond the 2026–2028 window; realized carry remains zero.
- Tenant credit issues among neocloud AI providers force lease or pricing concessions.
- The SoftBank transaction fails to close, or the March 2026 Hernandez v. Colony Capital jury verdict creates additional unquantified litigation exposure.
Looking Ahead
The next twelve months hinge on first deliveries at Frontier and Lighthouse in 2H 2026, the SoftBank merger closing conditions, and the launch of new products. No detailed guidance is available while the transaction is pending, so filings and press releases become the primary disclosure.
- 2H 2026Frontier and Lighthouse first deliveries — Tests whether $40B contracted pipeline converts to delivered capacity on schedule.
- May 2026Financing facilities priced / closed — $300 million facility priced May 1, 2026 to repay Series 2021-1 notes; $400 million securitized notes closed May 11, 2026.
- 2026New product capital formation — Digital power, DCIF, and private wealth are the stated 2026 drivers.
- 2026–2028Carried interest realizations begin — Management expects first realizations from the 2019-vintage fund.
- PendingSoftBank merger close — Subject to fund consents, fee-paying client consents, and regulatory approvals.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $592M | $415M | $486M | -30.0% |
| Gross Margin | 102.0% | 82.9% | 88.7% | 1,907bps |
| EBITDA | $166M | $297M | $5.0B | +79.5% |
| EBITDA Margin | 27.9% | 71.7% | 74.6% | +4,373bps |
| Net Income | $70M | $142M | $148M | +101.3% |
| Free Cash Flow | $56M | $258M | −$631M | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)88.7%
- EBITDA Margin (TTM)74.6%
- Net Margin (TTM)30.5%
- ROIC13.1%
- FCF Conversion46.3%
- SBC / Revenue7.0%
The Company
DigitalBridge is a global alternative asset manager focused on digital infrastructure. Its funds own and control platforms that operate data centers, cell towers, and fiber networks. Because it is the capital layer rather than an operator, AI demand reaches DigitalBridge indirectly through management fees, co-investment fees, carried interest, and principal investment income.
The company reports five strategies: DBP infrastructure equity, Core Equity, DigitalBridge Credit, Liquid Strategies, and InfraBridge. Corporate headquarters are in Boca Raton, Florida, in roughly 31,500 leased square feet. Management describes 11 data center platforms and more than 400 data centers across North America, Europe, APAC, and Latin America.
Business Segments
Competitive Landscape
Management frames competition around secured power and execution, emphasizing DigitalBridge's 11 data center platforms and 400+ data centers. The source set also flags that hyperscalers are building more capacity themselves rather than leasing from DigitalBridge portfolio companies, meaning DigitalBridge platforms are not the only route to capacity.
Supply Chain
DigitalBridge sits between institutional and private investors and the operating digital infrastructure platforms its funds own. AI demand flows from hyperscalers and AI providers to those platforms, then back to DigitalBridge as fees and carry. The provided sources do not name specific suppliers.