Compared to Estimates, StepStone Group (STEP) Q3 Earnings: A Look at Key Metrics

Core Insights - StepStone Group Inc. reported a revenue of $494.5 million for the quarter ended December 2025, marking a 102.8% increase year-over-year and a surprise of +21.44% over the Zacks Consensus Estimate of $407.21 million [1] - The earnings per share (EPS) for the quarter was $0.65, compared to $0.44 in the same quarter last year, resulting in an EPS surprise of +9.24% against the consensus estimate of $0.60 [1] Financial Performance Metrics - Fee-Earning AUM (FEAUM) for Focused Commingled Funds reached $58.22 billion, exceeding the average estimate of $57.10 billion from three analysts [4] - Total Fee-Earning AUM (FEAUM) was reported at $138.55 billion, slightly above the average estimate of $137.13 billion [4] - FEAUM for Separately Managed Accounts (SMAs) stood at $80.33 billion, compared to the average estimate of $80.03 billion [4] - Assets Under Advisement (AUA) totaled $591.34 billion, surpassing the average estimate of $566.66 billion from two analysts [4] - Total Assets Under Management (AUM) was $219.80 billion, exceeding the average estimate of $215.68 billion [4] Revenue Breakdown - Total revenues from management and advisory fees, net, were $239.93 million, compared to the estimated $235.51 million [4] - Total revenues from performance fees (incentive fees) reached $207.95 million, significantly higher than the estimated $132.14 million [4] - Total performance fees amounted to $346.58 million, compared to the average estimate of $169.45 million [4] - Performance fees from carried interest allocations (unrealized) were reported at $101.99 million, against an average estimate of -$5.35 million [4] - Total carried interest allocations reached $148.69 million, exceeding the estimated $37.31 million [4] - Realized performance fees from carried interest allocations were $46.7 million, compared to the average estimate of $42.67 million [4] Stock Performance - Over the past month, StepStone Group's shares have returned -7.3%, while the Zacks S&P 500 composite has seen a +0.5% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]