Within the alternative asset solutions space, StepStone Group (NASDAQ: STEP ) stands out for having one of the largest global networks spanning both the limited partner (e.g., pension funds, endowments, etc.) and general partner (e.g., fund managers) sides. This network is underpinned by dedicatedAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, a ...

Core Insights - StepStone Private Wealth Solutions (SPWS) has achieved significant growth, reaching $10.2 billion in assets under management as of July 31, 2025, positioning itself as a key player in private markets investment [1][2][3] Company Overview - StepStone Group is a global private markets investment firm managing approximately $723 billion in total capital, including $199 billion in assets under management as of June 30, 2025 [6] - The firm serves a diverse clientele, including large pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [6] Growth Drivers - The growth of SPWS is attributed to increased allocations to private market assets, particularly through evergreen and semi-liquid structures, with investments from private banks, wealth managers, and family offices [2][3] - Engagement from Registered Investment Advisors (RIAs) and strategic partnerships with financial intermediaries have been crucial in driving investments across SPWS's product offerings, which include private equity, venture capital, private debt, and infrastructure [2][3] Strategic Initiatives - SPWS is enhancing investor access by lowering investment minimums and eliminating accredited investor status for several wealth products in the US [4][7] - The firm has partnered with Goji to improve access to its global private market evergreen funds, including the SCRED ELTIF and UCI Part II structure [4][7] - StepStone Academy is expanding to provide on-demand continuing education credits for financial professionals, offering resources to enhance understanding of private markets [5][7] Market Positioning - StepStone differentiates itself through its proprietary intelligence platform (SPI by StepStone) and extensive relationships with leading deal sponsors, enhancing its global reach with 29 offices [3][6] - The firm aims to address legacy barriers in private market investments, providing simplified and transparent structures for investors [3][4]

Core Insights - Nevada King Gold Corp. has reported significant gold and silver mineralization from its Phase III drilling program in the Atlanta District, indicating strong potential for discovering new deposits [2][4][5]. Exploration Highlights - The drilling at Silver Park East (SPE) revealed the highest-grade hole outside the Atlanta Resource Zone (ARZ), with hole AT25SP-32 intercepting 0.83 g/t AuEq over 67.1 meters [4][5]. - Gold mineralization has been identified over a 750-meter length at SPE, with mineralization starting at the Tertiary-Paleozoic unconformity and extending into dolomitic basement rock [5][6]. - At Atlanta South, hole AT24QR-16 encountered 0.16 g/t Au over 48.7 meters, marking the first significant gold mineralization found in the Pogonip Limestone at Atlanta [9][10]. - Drilling at Atlanta North revealed 0.28 g/t Au over 36.6 meters in hole AT25FN-6, indicating a large untested gap along the mineralizing West Atlanta Fault [12][13]. Geological Insights - The presence of a significant hydrothermal system at Atlanta is suggested by the widely spaced distribution of mineralized holes and the continuity of low-grade blanket mineralization [3][4]. - The geological similarity between the mineralization at SPE and the ARZ supports the potential for finding additional ARZ-type deposits in the region [4][7]. - The identification of arsenic as a key tracer element for gold mineralization in the Atlanta District enhances the prospectivity for discovering Carlin-type deposits [9][10]. Future Exploration Plans - The company plans to continue drilling in the Atlanta North and Jumbo target zones, focusing on areas with potential for higher-grade mineralization [13][22]. - Upcoming drilling will target the continuation of unconformity-style mineralization along the Paleozoic contact, similar to that found in the ARZ and SPE [15][22]. - The exploration strategy will also include evaluating the structural and hydrological environments necessary for forming deposits, particularly in the context of the graben model [22][19]. Resource Estimates - The Atlanta Gold Mine project hosts an NI 43-101 compliant pit-constrained oxide resource of 1,020,000 ounces of gold in the measured and indicated category, plus an inferred resource of 99,000 ounces [27][28].

分组1 - StepStone Group Inc. reported quarterly earnings of $0.4 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.48 per share a year ago, representing an earnings surprise of -9.09% [1] - The company posted revenues of $237.47 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.33%, but up from $221.16 million year-over-year [2] - Over the last four quarters, StepStone Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has added about 0.8% since the beginning of the year, underperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the coming quarter is $0.44 on revenues of $243.13 million, and for the current fiscal year, it is $1.83 on revenues of $1.04 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $38 million or $0.49 per share for Q1 2026 [5] - Fee-related earnings were $81 million, up 13% from the prior year quarter, with an FRE margin of 38% [5][18] - Adjusted net income for the quarter was $48.5 million or $0.40 per share, down from $57.2 million or $0.48 per share in the same quarter last year [6][21] Business Line Data and Key Metrics Changes - Total gross AUM additions were $8.7 billion, driven by strong inflows in managed accounts and balanced contributions across commingled funds [8] - The company generated nearly $9 billion of gross additions during the quarter, including $6.5 billion from managed accounts [12] - Fee earning AUM increased by $6 billion, with undeployed fee earning capital growing to nearly $29 billion [14] Market Data and Key Metrics Changes - The company experienced strong fundraising momentum despite a volatile market backdrop [7] - Private wealth subscriptions exceeded $1 billion for the quarter, with a quick recovery from market volatility [8] - The company noted strong performance in Australia, the Middle East, and Asia for fundraising activities [60] Company Strategy and Development Direction - The company announced a framework agreement with FTSE Russell to develop private asset indices, aiming to enhance transparency and benchmarking capabilities in private markets [9][10] - The partnership is expected to lead to modest near-term earnings contributions, with long-term potential for asset management offerings referencing these indices [10][11] - The company is focused on expanding its private wealth platform and has increased its distribution partners to over 550 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of capital market conditions and a healthy pipeline of investment opportunities [7] - The company anticipates stronger performance fees in the second fiscal quarter, supported by improving capital market trends [9] - Management acknowledged the competitive landscape in the credit market but remains confident in their differentiated multi-manager platform [34] Other Important Information - The company raised its quarterly dividend by 17% from $0.24 to $0.28 per share, reflecting strong growth in fee-related earnings [15] - Adjusted cash-based compensation increased to $96 million, reflecting annual merit increases and headcount growth [18] Q&A Session Summary Question: Can you elaborate on the index opportunity with FTSE Russell? - Management highlighted the launch of a series of indices tracking private markets, with initial revenue expected from licensing fees [25][26] Question: What is the appetite for venture and growth products? - Management noted strong demand for their Spring product, attributing success to their established reputation in the wealth channel [31][32] Question: How much does the private wealth franchise contribute to profitability? - Management indicated that private wealth represents nearly 8% of total fee earning AUM and is expected to scale and contribute more to the bottom line [40] Question: What are the expectations for capital markets activity? - Management expects a recovery in activity levels but noted that sellers are maintaining discipline in valuations [66]

Financial Performance - GAAP consolidated statements of income (loss)显示，截至2025年6月，净亏损为1201.1万美元[7] - 归属于StepStone Group Inc的GAAP净亏损为3842.4万美元，即每股亏损0.49美元[7,8] - 截至2025年6月，调整后的净收入（ANI）为4853.4万美元，同比下降15%[9] - ANI每股0.40美元，同比下降17%[9] - 费用收入同比增长19%，达到2.127亿美元[9,12] - 实际业绩费用总额下降42%[9,12] - 费用相关收益（FRE）增长13%，达到8120万美元[9,12] Assets Under Management (AUM) and Advisement (AUA) - 资产管理规模（AUM）达到1993亿美元，同比增长18%[11,15] - 费用收入资产管理规模（FEAUM）达到1272亿美元，同比增长27%[11,18] - 待配置的费用收入资本为287亿美元，同比增长4%[11] - 顾问管理资产（AUA）为5240亿美元[15,18] Capital Raising and Deployment - 过去12个月内，为独立管理账户（SMA）筹集了180亿美元的新资本[12,18] - 过去12个月内，为混合基金筹集了100亿美元[12,18]

PART I [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents StepStone Group Inc.'s unaudited condensed consolidated financial statements for the three months ended June 30, 2025 and 2024, detailing financial position, performance, and cash flows with explanatory notes [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$4.78 billion** as of June 30, 2025, driven by accrued carried interest and investments, while total liabilities also rose to **$3.08 billion** due to higher compensation-related accruals Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Assets** | **$4,782,411** | **$4,586,693** | | Accrued carried interest allocations | $1,585,209 | $1,495,664 | | **Total Liabilities** | **$3,084,999** | **$2,812,321** | | Accrued compensation and benefits | $943,007 | $736,695 | | Accrued carried interest-related compensation | $802,308 | $757,968 | | **Total Stockholders' Equity** | **$1,230,579** | **$1,390,148** | [Condensed Consolidated Statements of Income (Loss)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) The company reported a **$12.0 million net loss** for Q2 2025, a shift from **$48.0 million net income** in Q2 2024, driven by a significant increase in total expenses, particularly equity-based compensation Consolidated Statement of Income (Loss) Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenues** | **$364,287** | **$186,401** | | Management and advisory fees, net | $211,173 | $178,015 | | Total carried interest allocations | $113,287 | $16,634 | | **Total Expenses** | **$423,316** | **$139,250** | | Equity-based compensation | $188,718 | $19,179 | | **Net Income (Loss)** | **$(12,011)** | **$48,045** | | **Net Income (Loss) Attributable to StepStone Group Inc.** | **$(38,424)** | **$13,328** | | **Diluted EPS** | **$(0.49)** | **$0.20** | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$46.3 million**, while net cash used in financing activities significantly increased to **$72.2 million**, resulting in a **$45.1 million** decrease in total cash during the quarter Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $46,282 | $50,170 | | Net cash used in investing activities | $(11,793) | $(13,212) | | Net cash used in financing activities | $(72,222) | $(22,899) | | **Net (decrease) increase in cash** | **$(45,149)** | **$13,858** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details the company's significant accounting policies and provides breakdowns of key financial statement items, noting a three-month lag in accounting for StepStone Fund investments - The company accounts for its investments in the StepStone Funds on a **three-month lag** due to the timing of receiving financial information from the underlying investments[55](index=55&type=chunk) - On May 30, 2025, the company completed its second annual exchange to acquire an additional **5%** of the equity interests in each of its SRA, SRE, and SPD subsidiaries, increasing its ownership to approximately **60%**, **60%**, and **59%**, respectively[188](index=188&type=chunk) - On May 22, 2025, the company declared a quarterly cash dividend of **$0.24 per share** and a supplemental cash dividend of **$0.40 per share**, both paid on June 30, 2025[193](index=193&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion analyzes quarterly financial results, highlighting a **95% revenue increase** but a **204% expense surge** leading to a net loss, alongside key operating metrics, non-GAAP measures, and liquidity [Business Overview](index=48&type=section&id=Business%20Overview) StepStone is a global private markets investment firm managing approximately **$723 billion** in total capital, including **$199 billion** in AUM and **$524 billion** in AUA, operating globally with 1,160 employees Key Business Metrics (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Total Capital Responsibility | ~$723 billion | | Assets Under Management (AUM) | $199 billion | | Assets Under Advisement (AUA) | $524 billion | - The company operates a global model with **29 offices** in **17 countries** and employs **1,160 people**, including over **385 investment professionals**[211](index=211&type=chunk) [Consolidated Results of Operations](index=61&type=section&id=Consolidated%20Results%20of%20Operations) Total revenues increased **95%** to **$364.3 million** due to higher carried interest, but total expenses surged **204%** to **$423.3 million**, primarily from equity-based compensation, resulting in a pre-tax loss - Management and advisory fees, net, increased **19% YoY** to **$211.2 million**, driven by new client activity and **28% growth** in average FEAUM[288](index=288&type=chunk) - Equity-based compensation increased **884% YoY** to **$188.7 million**, mainly due to a **$170.5 million** increase in expenses for liability classified awards related to the profits interest issued in SPW[294](index=294&type=chunk) - Realized carried interest allocation revenues decreased **42%** to **$24.4 million**, reflecting lower realization activity[290](index=290&type=chunk) [Key Operating Metrics](index=66&type=section&id=Key%20Operating%20Metrics) As of June 30, 2025, AUM reached **$199 billion**, AUA stood at **$524 billion**, and FEAUM grew to **$127.2 billion**, with **$28.7 billion** in undeployed fee-earning capital Key Operating Metrics Growth (YoY) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | AUM | $199 billion | $169 billion | | AUA | $524 billion | $531 billion | | FEAUM | $127.2 billion | $100.4 billion | - Undeployed fee-earning capital, which will generate future management fees upon investment or activation, was **$28.7 billion** as of June 30, 2025[322](index=322&type=chunk) [Non-GAAP Financial Measures](index=68&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Fee-Related Earnings (FRE) increased **13%** to **$81.2 million**, but Adjusted Net Income (ANI) decreased **15%** to **$48.5 million**, resulting in **$0.40** ANI per share Non-GAAP Performance (Q1 FY2026 vs Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Fee-Related Earnings (FRE) | $81.2 million | $71.7 million | | Adjusted Net Income (ANI) | $48.5 million | $57.2 million | | ANI per share | $0.40 | $0.48 | [Liquidity and Capital Resources](index=76&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$192.0 million** in cash and **$269.6 million** in debt as of June 30, 2025, supported by a **$300 million** revolving credit facility and **$175 million** in senior notes, with a recent **$0.28** per share dividend announced - As of June 30, 2025, the company had **$192.0 million** of cash, cash equivalents and restricted cash (excluding Consolidated Funds) and total debt obligations of **$269.6 million**[359](index=359&type=chunk) - The company has a **$300 million** multicurrency revolving credit facility maturing in May 2029 and **$175.0 million** in 5.52% Series A senior notes due October 2029[365](index=365&type=chunk)[371](index=371&type=chunk) - On August 7, 2025, the company announced a quarterly cash dividend of **$0.28 per share** of Class A common stock, payable on September 15, 2025[382](index=382&type=chunk) [Item 3. Qualitative and Quantitative Disclosures about Market Risk](index=83&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20about%20Market%20Risk) This section outlines the company's exposure to price, interest-rate, and foreign exchange-rate risks, noting that a **10%** market value decline could decrease annual management fees by **$12.9 million** and investment income by **$20.3 million** - A hypothetical **10% decline** in the market value of investments in the company's funds as of June 30, 2025, would result in an estimated decrease of **$12.9 million** in annual management fees and **$20.3 million** in investment income[397](index=397&type=chunk)[402](index=402&type=chunk) - A **100 basis point increase** in interest rates would increase annualized interest expense by an estimated **$2.8 million** and increase interest income by an estimated **$1.9 million** as of June 30, 2025[401](index=401&type=chunk) [Item 4. Controls and Procedures](index=85&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[406](index=406&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[407](index=407&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=85&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business, but does not expect any current proceedings to materially affect its financial statements - The company does not expect any potential liability from current legal proceedings to materially affect its condensed consolidated financial statements as of June 30, 2025[196](index=196&type=chunk)[409](index=409&type=chunk) [Item 1A. Risk Factors](index=86&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Form 10-K for the fiscal year ended March 31, 2025 - No material changes have occurred from the risk factors previously disclosed in the Form 10-K for the fiscal year ended March 31, 2025[411](index=411&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=86&type=section&id=Other%20Items%20(Items%202,%203,%204,%205,%206)) This section covers standard disclosures, reporting no unregistered equity sales, no defaults on senior securities, and no Rule 10b5-1 trading arrangement changes by directors or officers during the quarter - The company reported no unregistered sales of equity securities or defaults upon senior securities for the period[412](index=412&type=chunk)[414](index=414&type=chunk) - During the quarter ended June 30, 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement[418](index=418&type=chunk)

Report Overview and Key Announcements [First Quarter Fiscal 2026 Results Announcement](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Results%20Announcement) StepStone Group announced Q1 FY2026 results, including a net loss and a **$0.28 per share** quarterly dividend - The Board of Directors declared a quarterly cash dividend of **$0.28 per share** of Class A common stock[1](index=1&type=chunk) - The results cover the first quarter of the fiscal year ending March 31, 2026[1](index=1&type=chunk) [Company Profile](index=1&type=section&id=Company%20Profile) StepStone Group is a global private markets investment firm managing **$723 billion** total capital and **$199 billion** AUM Capital Responsibility as of June 30, 2025 | Metric | Amount (USD) | | :--- | :--- | | Total Capital | ~$723 billion | | Assets Under Management (AUM) | $199 billion | - The firm's clients include large institutional investors like pension funds and sovereign wealth funds, as well as family offices and private wealth clients[4](index=4&type=chunk) - StepStone specializes in private equity, infrastructure, private debt, and real estate asset classes[4](index=4&type=chunk) Financial Performance [Financial Highlights and Key Operating Metrics Summary](index=3&type=section&id=Financial%20Highlights%20and%20Key%20Operating%20Metrics%20Summary) Q1 FY2026 reported a GAAP net loss of **$12.0 million**, with Adjusted Net Income at **$48.5 million** Q1 FY2026 vs Q1 FY2025 GAAP Performance | Metric | Q1 FY2026 (ended Jun 30, 2025) (USD million) | Q1 FY2025 (ended Jun 30, 2024) (USD million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | 364.3 | 186.4 | +95% | | Net Income (Loss) | (12.0) | 48.0 | N/A | | Diluted EPS | (0.49) | 0.20 | N/A | Q1 FY2026 vs Q1 FY2025 Non-GAAP Performance | Metric | Q1 FY2026 (ended Jun 30, 2025) (USD million) | Q1 FY2025 (ended Jun 30, 2024) (USD million) | YoY Change | | :--- | :--- | :--- | :--- | | Fee Revenues | 212.7 | 178.5 | +19% | | Fee-Related Earnings (FRE) | 81.2 | 71.7 | +13% | | Adjusted Net Income (ANI) | 48.5 | 57.2 | -15% | | ANI Per Share | 0.40 | 0.48 | -17% | Key Business Drivers (as of June 30) | Metric | 2025 (USD billion) | 2024 (USD billion) | YoY Change | | :--- | :--- | :--- | :--- | | Assets Under Management (AUM) | 199.3 | 169.3 | +18% | | Fee-Earning AUM (FEAUM) | 127.2 | 100.4 | +27% | | Assets Under Advisement (AUA) | 524.2 | 531.4 | -1% | [GAAP Condensed Consolidated Financial Statements](index=4&type=section&id=GAAP%20Condensed%20Consolidated%20Financial%20Statements) GAAP financials show total assets at **$4.78 billion**, liabilities at **$3.08 billion**, and a **$12.0 million** net loss [Balance Sheets](index=4&type=section&id=Balance%20Sheets) As of June 30, 2025, total assets were **$4.78 billion**, total liabilities **$3.08 billion**, and stockholders' equity **$1.23 billion** Selected Balance Sheet Items | Account | June 30, 2025 (USD thousands) | March 31, 2025 (USD thousands) | | :--- | :--- | :--- | | **Total Assets** | **4,782,411** | **4,586,693** | | Cash and cash equivalents | 191,469 | 244,791 | | Accrued carried interest allocations | 1,585,209 | 1,495,664 | | **Total Liabilities** | **3,084,999** | **2,812,321** | | Accrued compensation and benefits | 943,007 | 736,695 | | **Total Stockholders' Equity** | **1,230,579** | **1,390,148** | [Statements of Income (Loss)](index=5&type=section&id=Statements%20of%20Income%20(Loss)) Q1 FY2026 total revenues rose to **$364.3 million**, but expenses surged to **$423.3 million**, resulting in a **$12.0 million** net loss Condensed Income Statement | Account | Three Months Ended June 30, 2025 (USD thousands) | Three Months Ended June 30, 2024 (USD thousands) | | :--- | :--- | :--- | | Management and advisory fees, net | 211,173 | 178,015 | | Total performance fees | 153,114 | 8,386 | | **Total revenues** | **364,287** | **186,401** | | Equity-based compensation | 188,718 | 19,179 | | **Total expenses** | **423,316** | **139,250** | | **Net income (loss)** | **(12,011)** | **48,045** | | Net income (loss) attributable to StepStone Group Inc. | (38,424) | 13,328 | Non-GAAP Financial Measures and Reconciliations [Fee Revenues and Adjusted Revenues](index=6&type=section&id=Fee%20Revenues%20and%20Adjusted%20Revenues) Q1 FY2026 fee revenues increased **19%** to **$212.7 million**, with adjusted revenues reaching **$237.5 million** Fee Revenues by Source | Source | Q1 FY2026 (Jun 30, 2025) (USD thousands) | Q1 FY2025 (Jun 30, 2024) (USD thousands) | | :--- | :--- | :--- | | Focused commingled funds | 120,036 | 104,798 | | Separately managed accounts | 70,379 | 57,376 | | Advisory and other services | 19,939 | 14,769 | | **Total Fee Revenues** | **212,740** | **178,514** | - Adjusted revenues are reconciled from total GAAP revenues by excluding unrealized carried interest allocations and other specific items to present a measure of realized revenues[23](index=23&type=chunk)[25](index=25&type=chunk) [Adjusted Net Income (ANI) and Fee-Related Earnings (FRE)](index=7&type=section&id=Adjusted%20Net%20Income%20(ANI)%20and%20Fee-Related%20Earnings%20(FRE)) Q1 FY2026 Adjusted Net Income was **$48.5 million**, Fee-Related Earnings **$81.2 million**, with an FRE margin of **38%** - ANI is a non-GAAP measure of after-tax net realized income used to evaluate profitability, excluding unrealized items, certain equity compensation, and amortization of intangibles[28](index=28&type=chunk) - FRE is a component of ANI used to monitor baseline earnings from recurring management and advisory fees[29](index=29&type=chunk) Reconciliation to ANI and FRE for Q1 FY2026 | Metric | Amount (USD thousands) | | :--- | :--- | | Income (loss) before income tax | (20,350) | | Adjustments (Unrealized items, Equity comp, etc.) | 82,790 | | **Pre-tax ANI** | **62,440** | | Income taxes | (13,906) | | **ANI** | **48,534** | | Adjustments to derive FRE | 18,806 | | **FRE** | **81,246** | - The FRE margin for the quarter ended June 30, 2025 was **38%**, calculated as FRE (**$81.2 million**) divided by Fee Revenues (**$212.7 million**)[44](index=44&type=chunk)[45](index=45&type=chunk) [Performance Fee-Related Earnings (PRE)](index=11&type=section&id=Performance%20Fee-Related%20Earnings%20(PRE)) Q1 FY2026 Performance Fee-Related Earnings (PRE) were **$13.0 million**, a **40% decrease** year-over-year PRE Calculation for Q1 FY2026 | Metric | Amount (USD thousands) | | :--- | :--- | | Gross realized performance fees | 24,727 | | Realized performance fee-related compensation | (11,705) | | **PRE** | **13,022** | - Gross realized performance fees for Q1 FY2026 (**$24.7 million**) decreased by **42%** from Q1 FY2025 (**$42.7 million**)[8](index=8&type=chunk) [Adjusted Net Income (ANI) Per Share](index=12&type=section&id=Adjusted%20Net%20Income%20(ANI)%20Per%20Share) Q1 FY2026 ANI per share was **$0.40**, a **17% decrease** year-over-year, based on **122.3 million** adjusted shares ANI Per Share Calculation for Q1 FY2026 | Metric | Amount | | :--- | :--- | | ANI (USD thousands) | 48,534 | | Adjusted weighted-average shares | 122,292,943 | | **ANI per share (USD)** | **0.40** | - Adjusted weighted-average shares increased by **3%** year-over-year to **122.3 million**[8](index=8&type=chunk) Key Operating Metrics [Fee-Earning AUM (FEAUM)](index=13&type=section&id=Fee-Earning%20AUM%20(FEAUM)) FEAUM grew **27%** year-over-year to **$127.2 billion** as of June 30, 2025, with **$5.0 billion** in quarterly contributions FEAUM Roll-Forward | Metric | Q1 FY2026 (ended Jun 30, 2025) (USD millions) | | :--- | :--- | | Beginning Balance | 121,390 | | Contributions | 5,035 | | Distributions | (1,402) | | Market value, FX and other | 2,196 | | **Ending Balance** | **127,219** | - Contributions to FEAUM for the quarter were **$5.0 billion**, a **35% decrease** from the **$7.7 billion** contributed in the same quarter of the prior year[56](index=56&type=chunk) [Asset Class Summary](index=14&type=section&id=Asset%20Class%20Summary) As of June 30, 2025, total capital responsibility was **$723.5 billion**, AUM **$199.3 billion**, and FEAUM **$127.2 billion** FEAUM by Asset Class (as of June 30, 2025) | Asset Class | FEAUM (USD millions) | YoY Change | | :--- | :--- | :--- | | Private equity | 66,428 | +21% | | Infrastructure | 26,090 | +28% | | Private debt | 21,435 | +33% | | Real estate | 13,266 | +48% | | **Total** | **127,219** | **+27%** | AUM by Asset Class (as of June 30, 2025) | Asset Class | AUM (USD millions) | YoY Change | | :--- | :--- | :--- | | Private equity | 100,540 | +13% | | Infrastructure | 40,087 | +22% | | Private debt | 39,242 | +29% | | Real estate | 19,445 | +15% | | **Total** | **199,314** | **+18%** | - Total capital responsibility, the sum of AUM and AUA, reached **$723.5 billion**, a **3% increase** year-over-year[60](index=60&type=chunk)[61](index=61&type=chunk) Supplementary Information [Legal Disclaimers and Non-GAAP Measures](index=2&type=section&id=Legal%20Disclaimers%20and%20Non-GAAP%20Measures) The report includes forward-looking statements and utilizes non-GAAP financial measures, which supplement but do not substitute GAAP results - The report includes forward-looking statements that are not guarantees of future performance and are subject to various risks and uncertainties[5](index=5&type=chunk) - The company uses several non-GAAP financial measures to supplement its GAAP financial statements, for which definitions and reconciliations are provided within the report[6](index=6&type=chunk) [Glossary of Terms](index=16&type=section&id=Glossary%20of%20Terms) The glossary defines key metrics including AUM, AUA, FEAUM, and total capital responsibility, used throughout the report - AUM: Assets where the firm has full discretion over investment decisions[67](index=67&type=chunk) - AUA: Client assets for which the firm provides advisory or monitoring services without full discretion[65](index=65&type=chunk) - FEAUM: Assets from which the company earns management fee revenue, typically based on capital commitments or net invested capital[70](index=70&type=chunk)

Core Viewpoint - StepStone Group Inc. reported its financial results for the first quarter of fiscal year 2026, highlighting a quarterly cash dividend declaration and significant financial metrics [1][4]. Financial Highlights - The company reported total revenues of $364.287 million for the quarter ended June 30, 2025, representing a 95% increase compared to the same quarter in the previous year [9]. - Management and advisory fees, net, were $211.173 million, a 19% increase from the previous quarter [9]. - The net loss for the quarter was $12.011 million, compared to a net income of $48.045 million in the same quarter last year [9][19]. - The company declared a quarterly cash dividend of $0.28 per share of Class A common stock, payable on September 15, 2025 [1]. Non-GAAP Financial Measures - Fee revenues for the quarter were reported at $212.740 million, a 19% increase from the previous quarter [9]. - Adjusted revenues were $237.467 million, reflecting a 7% decrease compared to the previous quarter [9]. - Fee-related earnings (FRE) were $81.246 million, with a FRE margin of 38% [9][10]. - Adjusted net income (ANI) was $48.534 million, with ANI per share at $0.40, a 17% decrease from the previous quarter [10]. Key Business Drivers - As of June 30, 2025, StepStone managed approximately $723 billion in total capital, including $199 billion in assets under management (AUM), which represents an 18% increase year-over-year [4][10]. - Fee-earning AUM increased by 27% to $127.2 billion [10]. - The company reported a 4% increase in undeployed fee-earning capital, totaling $28.7 billion [10].

Wall Street expects a year-over-year decline in earnings on higher revenues when StepStone Group Inc. (STEP) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Augus ...