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Qualtrics Debt Concerns Spark Apollo, Blackstone Defense

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  Published in Stocks and Investing on Friday, February 13th 2026 at 6:57 GMT by Channel NewsAsia Singapore
      Locales: UNITED STATES, SINGAPORE, UNITED KINGDOM

NEW YORK - February 13th, 2026 - Apollo Global Management and Blackstone executives moved to publicly defend Qualtrics, the customer experience management software company, on Thursday, attempting to quell investor anxiety surrounding its substantial debt burden. The reassurances come as both private equity firms have seen their stock prices decline sharply in recent weeks, directly linked to growing concerns about Qualtrics' financial stability.

Qualtrics, acquired in 2019 through a deal heavily financed by Apollo and Blackstone, has become a focal point for scrutiny regarding the broader risks inherent in leveraged buyouts. While the use of debt to amplify returns is a standard practice within the private equity industry, the current situation with Qualtrics highlights the potential for significant losses when those leveraged investments falter.

Speaking at a recent industry conference, Apollo CEO Marc Rowan stated, "We understand the recent concerns regarding Qualtrics. Qualtrics continues to be a strategically important asset for us." He further emphasized that Apollo is actively working to improve the company's financial performance and reduce its debt load. Blackstone President Laurentian Crappe echoed these sentiments in a conference call, stating, "We're fully aligned with Apollo and confident in Qualtrics' long-term prospects."

The root of the problem lies in Qualtrics' inability to consistently generate sufficient cash flow to comfortably service its debt obligations. This shortfall has prompted a re-evaluation of the company's business model and overall financial health, leading to a steep decline in investor confidence and, consequently, a drop in the stock prices of both Apollo and Blackstone. Analysts suggest the market is concerned that Qualtrics will require further capital injections, potentially diluting existing equity, or face restructuring challenges.

The Broader Implications for Private Equity

The Qualtrics situation isn't isolated. It's triggering a wider debate about the sustainability of the debt-fueled private equity model, particularly in a higher interest rate environment. For years, low interest rates allowed firms to load companies with debt, confident they could refinance or grow their way out of it. However, the significant interest rate hikes of 2024 and 2025 have dramatically increased borrowing costs, making debt servicing more challenging for portfolio companies like Qualtrics.

"This is a wake-up call for the industry," says Dr. Eleanor Vance, a professor of finance specializing in private equity at Columbia Business School. "The era of easy money is over. Private equity firms will need to be far more discerning about the companies they acquire and the amount of debt they load onto them. A focus on sustainable growth and cash flow generation will become paramount."

The current environment is forcing a reassessment of valuation multiples. Previously, firms could justify high purchase prices based on projected future earnings, often assuming continued low interest rates. Now, those projections are being discounted more heavily, leading to lower valuations and increased risk of write-downs.

Qualtrics' Path Forward

Analysts believe Qualtrics needs to demonstrate a clear path to profitability and debt reduction. Potential strategies include streamlining operations, focusing on high-margin product offerings, and potentially divesting non-core assets. There's also been speculation about a possible strategic partnership or acquisition by a larger technology company. However, given the current debt load, any such transaction would likely require significant restructuring.

"Qualtrics has a strong product and a valuable customer base," explains technology analyst Ben Carter. "The challenge is translating that into consistent cash flow. They need to demonstrate they can compete effectively in a crowded market and deliver the growth necessary to justify the initial investment."

The coming quarters will be critical for Qualtrics and its private equity backers. The company's ability to address its debt concerns and demonstrate a clear path to sustainable profitability will not only determine its own future but also serve as a bellwether for the health of the broader private equity industry. The pressure is on for Apollo and Blackstone to deliver returns on this complex financial structure and avoid further damage to their portfolios and reputations. Investors are watching closely, and the stakes are high.