StepStone issued a full detailed presentation of its third quarter fiscal 2026 results, which can be accessed by visiting the Company's website at https://shareholders.stepstonegroup.com.
Webcast and Earnings Conference Call
Management will host a webcast and conference call today, Thursday, February 5, 2026, at 5:00 pm ET to discuss the Company's results for the third quarter of the fiscal year ending March 31, 2026. The webcast will be made available on the Shareholders section of the Company's website at https://shareholders.stepstonegroup.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register. A replay will also be available on the Shareholders section of the Company's website approximately two hours after the conclusion of the event.
To join as a live participant in the question and answer portion of the call, participants must register at https://register-conf.media-server.com/register/BI7dc23d7d84474da18f5bf6eb6bc55276. Upon registering you will receive the dial-in number and a PIN to join the call as well as an email confirmation with the details.
About StepStone Group
StepStone Group Inc. (NASDAQ:STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of December 31, 2025, StepStone was responsible for approximately $811 billion of total capital, including $220 billion of assets under management. StepStone's clients include some of the world's largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.
Forward-Looking Statements
Some of the statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Words such as "anticipate," "believe," "continue," "estimate," "expect," "future," "intend," "may," "plan" and "will" and similar expressions identify forward-looking statements. Forward-looking statements reflect management's current plans, estimates and expectations and are inherently uncertain. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, global and domestic market and business conditions, our successful execution of business and growth strategies, the favorability of the private markets fundraising environment, successful integration of acquired businesses and regulatory factors relevant to our business, as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity and the risks and uncertainties described in greater detail under the "Risk Factors" section of our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on May 23, 2025, and in our subsequent reports filed with the SEC, as such factors may be updated from time to time. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use the following non-GAAP financial measures: fee revenues, adjusted revenues, adjusted net income (on both a pre-tax and after-tax basis), adjusted net income per share, adjusted weighted-average shares, fee-related earnings, fee-related earnings margin, gross realized performance fees and performance fee-related earnings. We have provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures in this earnings release may not be comparable to similarly titled measures used by other companies in our industry or across different industries. For definitions of these non-GAAP measures and reconciliations to applicable GAAP measures, please see the section titled "Non-GAAP Financial Measures: Definitions and Reconciliations."
Financial Highlights and Key Business Drivers/Operating Metrics
Three Months Ended
Nine Months Ended December 31,
Percentage Change
(in thousands, except share and per share amounts and where noted)
December 31, 2024
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
2024
2025
vs. FQ3'25
vs. FQ3'25 YTD
Financial Highlights
GAAP Results
Management and advisory fees, net
$
190,840
$
213,401
$
211,173
$
215,489
$
239,932
$
553,613
$
666,594
26
%
20
%
Total revenues
339,023
377,729
364,287
454,225
586,511
797,101
1,405,023
73
%
76
%
Total performance fees
148,183
164,328
153,114
238,736
346,579
243,488
738,429
134
%
203
%
Net income (loss)
(287,163
)
13,153
(12,011
)
(575,490
)
(162,435
)
(185,980
)
(749,936
)
(43
)%
303
%
Net loss per share of Class A common stock:
Basic
$
(2.61
)
$
(0.24
)
$
(0.49
)
$
(4.66
)
$
(1.55
)
$
(2.32
)
$
(6.72
)
(40
)%
190
%
Diluted
$
(2.61
)
$
(0.24
)
$
(0.49
)
$
(4.66
)
$
(1.55
)
$
(2.32
)
$
(6.72
)
(40
)%
190
%
Weighted-average shares of Class A common stock:
Basic
73,687,289
75,975,770
77,846,710
78,561,587
79,465,039
69,561,254
78,627,273
8
%
13
%
Diluted
73,687,289
75,975,770
77,846,710
78,561,587
79,465,039
69,561,254
78,627,273
8
%
13
%
Quarterly dividend per share of Class A common stock(1)
$
0.24
$
0.24
$
0.24
$
0.28
$
0.28
$
0.69
$
0.80
17
%
16
%
Supplemental dividend per share of Class A common stock(2)
$
—
$
—
$
0.40
$
—
$
—
$
0.15
$
0.40
na
167
%
Accrued carried interest allocations
1,474,543
1,495,664
1,585,209
1,733,922
1,835,862
25
%
Non-GAAP Results(3)
Fee revenues(4)
$
191,832
$
214,662
$
212,740
$
217,461
$
241,133
$
555,827
$
671,334
26
%
21
%
Adjusted revenues
243,905
295,861
237,467
282,342
494,500
673,858
1,014,309
103
%
51
%
Fee-related earnings ("FRE")
74,118
94,081
81,246
78,633
89,236
218,123
249,115
20
%
14
%
FRE margin(5)
39
%
44
%
38
%
36
%
37
%
39
%
37
%
Gross realized performance fees
52,073
81,199
24,727
64,881
253,367
118,031
342,975
387
%
191
%
Performance fee-related earnings ("PRE")
26,596
41,543
13,022
33,886
131,152
62,939
178,060
393
%
183
%
Adjusted net income ("ANI")
52,659
80,603
48,534
66,709
79,858
163,469
195,101
52
%
19
%
Adjusted weighted-average shares
118,935,179
118,869,111
122,292,943
122,462,594
122,590,230
118,740,805
122,449,155
3
%
3
%
ANI per share
$
0.44
$
0.68
$
0.40
$
0.54
$
0.65
$
1.38
$
1.59
48
%
15
%
Key Business Drivers/Operating Metrics(in billions)
Assets under management ("AUM")(6)
$
179.2
$
189.4
$
199.3
$
209.1
$
219.8
23
%
Assets under advisement ("AUA")(6)
518.7
519.7
524.2
561.6
591.3
14
%
Fee-earning AUM ("FEAUM")
114.2
121.4
127.2
132.8
138.6
21
%
Undeployed fee-earning capital ("UFEC")
21.7
24.6
28.7
29.8
32.7
51
%
_______________________________(1) Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned.(2) The supplemental cash dividend relates to earnings in respect of our full fiscal years 2024 and 2025, respectively.(3) Fee revenues, adjusted revenues, FRE, FRE margin, gross realized performance fees, PRE, ANI, adjusted weighted-average shares and ANI per share are non-GAAP measures. See the definitions of these measures and reconciliations to the respective, most comparable GAAP measures under "Non-GAAP Financial Measures: Definitions and Reconciliations."(4) Excludes the impact of consolidating the Consolidated Funds. See reconciliation of GAAP measures to adjusted measures that follows.(5) FRE margin is calculated by dividing FRE by fee revenues.(6) AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented. Does not include post-period investment valuation or cash activity. Net asset value ("NAV") data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.
StepStone Group Inc.GAAP Condensed Consolidated Balance Sheets (Unaudited)(in thousands, except share and per share amounts)
As of
December 31, 2025
March 31, 2025
Assets
Cash and cash equivalents
$
266,075
$
244,791
Restricted cash
564
502
Fees and accounts receivable
79,669
80,871
Due from affiliates
334,942
92,723
Investments:
Investments in funds
292,994
183,694
Accrued carried interest allocations
1,835,862
1,495,664
Legacy Greenspring investments in funds and accrued carried interest allocations(1)
670,631
629,228
Deferred income tax assets
583,565
382,886
Lease right-of-use assets, net
84,016
91,841
Other assets and receivables
61,058
62,869
Intangibles, net
233,251
263,872
Goodwill
580,542
580,542
Assets of Consolidated Funds:
Cash and cash equivalents
111,377
44,511
Investments, at fair value
105,150
415,011
Other assets
1,758
17,688
Total assets
$
5,241,454
$
4,586,693
Liabilities and stockholders' equity
Accounts payable, accrued expenses and other liabilities
$
87,118
$
89,731
Accrued compensation and benefits
2,404,228
736,695
Accrued carried interest-related compensation
960,513
757,968
Legacy Greenspring accrued carried interest-related compensation(1)
536,484
495,739
Due to affiliates
354,610
331,821
Lease liabilities
106,497
113,519
Debt obligations
270,246
269,268
Liabilities of Consolidated Funds:
Other liabilities
2,305
17,580
Total liabilities
4,722,001
2,812,321
Redeemable non-controlling interests in Consolidated Funds
171,870
377,897
Redeemable non-controlling interests in subsidiaries
7,914
6,327
Stockholders' equity:
Class A common stock, $0.001 par value, 650,000,000 authorized; 80,135,346 and 76,761,399 issued and outstanding as of December 31, 2025 and March 31, 2025, respectively
80
77
Class B common stock, $0.001 par value, 125,000,000 authorized; 39,017,716 and 39,656,954 issued and outstanding as of December 31, 2025 and March 31, 2025, respectively
39
40
Additional paid-in capital
486,542
421,057
Accumulated deficit
(866,331
)
(242,546
)
Accumulated other comprehensive income
876
728
Total StepStone Group Inc. stockholders' equity
(378,794
)
179,356
Non-controlling interests in subsidiaries
948,365
1,056,510
Non-controlling interests in legacy Greenspring entities(1)
134,147
133,489
Non-controlling interests in the Partnership
(364,049
)
20,793
Total stockholders' equity
339,669
1,390,148
Total liabilities and stockholders' equity
$
5,241,454
$
4,586,693
(1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.
StepStone Group Inc.GAAP Condensed Consolidated Statements of Loss (Unaudited)(in thousands, except share and per share amounts)
Three Months Ended December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
Revenues
Management and advisory fees, net
$
239,932
$
190,840
$
666,594
$
553,613
Performance fees:
Incentive fees
207,954
22,369
213,046
26,365
Carried interest allocations:
Realized
46,703
24,282
129,985
83,718
Unrealized
101,985
93,325
338,681
120,370
Total carried interest allocations
148,688
117,607
468,666
204,088
Legacy Greenspring carried interest allocations(1)
(10,063
)
8,207
56,717
13,035
Total performance fees
346,579
148,183
738,429
243,488
Total revenues
586,511
339,023
1,405,023
797,101
Expenses
Compensation and benefits:
Cash-based compensation
107,114
85,203
303,447
246,298
Equity-based compensation
468,808
486,418
1,541,996
542,929
Performance fee-related compensation:
Realized
122,215
25,477
164,915
55,092
Unrealized
69,050
49,670
202,134
66,495
Total performance fee-related compensation
191,265
75,147
367,049
121,587
Legacy Greenspring performance fee-related compensation(1)
(10,063
)
8,207
56,717
13,035
Total compensation and benefits
757,124
654,975
2,269,209
923,849
General, administrative and other
50,640
43,130
138,846
134,202
Total expenses
807,764
698,105
2,408,055
1,058,051
Other income (expense)
Investment income
9,829
1,064
19,131
5,710
Legacy Greenspring investment income (loss)(1)
(527
)
1,167
4,168
(4,119
)
Investment income of Consolidated Funds
21,282
15,037
88,997
30,878
Interest income
2,455
2,559
8,175
7,632
Interest expense
(5,123
)
(3,008
)
(14,082
)
(9,510
)
Other income (loss)
(1,312
)
(2,452
)
5,818
(1,626
)
Total other income
26,604
14,367
112,207
28,965
Loss before income tax
(194,649
)
(344,715
)
(890,825
)
(231,985
)
Income tax benefit
(32,214
)
(57,552
)
(140,889
)
(46,005
)
Net loss
(162,435
)
(287,163
)
(749,936
)
(185,980
)
Less: Net income attributable to non-controlling interests in subsidiaries
24,562
27,226
62,421
62,966
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)
(527
)
1,167
4,168
(4,119
)
Less: Net loss attributable to non-controlling interests in the Partnership
(82,207
)
(134,760
)
(369,275
)
(107,856
)
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds
18,564
10,905
79,180
23,101
Less: Net income attributable to redeemable non-controlling interests in subsidiaries
624
314
1,587
983
Net loss attributable to StepStone Group Inc.
$
(123,451
)
$
(192,015
)
$
(528,017
)
$
(161,055
)
Net loss per share of Class A common stock:
