Distribution feesThin moat

BlackRock (BLK) — moat facet

Revenue on the page and a cost in practice: BlackRock pays its distributors $1.82 for every dollar of these fees.

Distribution fees are the smallest line that looks like revenue and behaves like a cost. They were $1,355 million in 2025, against $1,273 million in 2024 and $1,262 million in 2023 1, about 6% of revenue 2.

Distribution fees against distribution and servicing costs ($m)$1,273mFees 2024$2,171mCosts 2024$1,355mFees 2025$2,460mCosts 2025BlackRock Form 10-K FY2025; recognised gross
BlackRock pays its distributors about $1.1bn a year more than the distribution fees it collects.

What sits inside is mostly other people's money passing through. Distribution fees primarily consist of ongoing distribution fees, shareholder servicing fees and upfront sales commissions on certain mutual funds BlackRock underwrites 3. The fees are passed through to third-party distributors, who sell the funds and service shareholders, and BlackRock records the fees and the related distribution and servicing costs gross 4.

That is why the line cannot be read on its own. Distribution and servicing costs were $2,460 million in 2025 against $2,171 million in 2024 5. BlackRock paid the brokers and platforms that sell its funds about $1,105 million more than it collected as distribution fees in 2025 6. The difference comes out of base fees: it is the price of reaching retail savers through intermediaries BlackRock does not own.

The history is flat. The line grew 0.9% in 2024 and 6.4% in 2025 7, mostly with the value of the assets it is charged on.

The latest quarter shows the cost growing faster than the fee. Distribution fees were $395 million in Q2 2026 against $320 million, and distribution and servicing costs $732 million against $576 million 8. The filing attributes the fee increase primarily to higher average AUM 9.

The outlook for the line itself hardly matters; what matters is the gap. In 2025 BlackRock paid out about $1.82 in distribution and servicing costs for every dollar of distribution fees it collected 10, and in Q2 2026 about $1.85 11. A gap that keeps widening would mean the intermediaries are taking a larger share of the retail fees that make that client group the best paid in the firm.

Moat trajectory: Narrowing

Distribution and servicing costs grew 27% in Q2 2026 against 23% for distribution fees.

The number that tests this moat
Moat Explorer calc
Distribution costs per dollar of distribution fees, latest quarter
$1.85 in Q2 2026 ($732m against $395m), from $1.82 in 2025

A widening gap means intermediaries are taking a larger share of the retail fees.

How it's calculated: Distribution and servicing costs / distribution fees
Source: BlackRock Form 10-Q, Q2 2026 ↗
References
  1. ReportedThey were $1,355 million in 2025, against $1,273 million in 2024 and $1,262 million in 2023 , about 6% of revenue .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcThey were $1,355 million in 2025, against $1,273 million in 2024 and $1,262 million in 2023 , about 6% of revenue .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedDistribution fees primarily consist of ongoing distribution fees, shareholder servicing fees and upfront sales commissions on certain mutual funds BlackRock underwrites .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedThe fees are passed through to third-party distributors, who sell the funds and service shareholders, and BlackRock records the fees and the related distribution and servicing costs gross .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  5. ReportedDistribution and servicing costs were $2,460 million in 2025 against $2,171 million in 2024 .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  6. Moat Explorer calcBlackRock paid the brokers and platforms that sell its funds about $1,105 million more than it collected as distribution fees in 2025 .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  7. Moat Explorer calcThe line grew 0.9% in 2024 and 6.4% in 2025 , mostly with the value of the assets it is charged on.
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  8. ReportedDistribution fees were $395 million in Q2 2026 against $320 million, and distribution and servicing costs $732 million against $576 million .
    BlackRock, Inc. Form 10-Q, quarter ended 30 June 2026 - revenue by line, base fees by product and client type, performance fees by product, distribution costs, AUM by client type and product — Q2 2026 · publ. August 2026 · source ↗
  9. ReportedThe filing attributes the fee increase primarily to higher average AUM .
    BlackRock, Inc. Form 10-Q, quarter ended 30 June 2026 - revenue by line, base fees by product and client type, performance fees by product, distribution costs, AUM by client type and product — Q2 2026 · publ. August 2026 · source ↗
  10. Moat Explorer calcIn 2025 BlackRock paid out about $1.82 in distribution and servicing costs for every dollar of distribution fees it collected , and in Q2 2026 about $1.85 .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  11. Moat Explorer calcIn 2025 BlackRock paid out about $1.82 in distribution and servicing costs for every dollar of distribution fees it collected , and in Q2 2026 about $1.85 .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026