StepStone Group — First Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total revenues were $378.9 million for the quarter ended June 30, 2026, a 4% increase compared to $364.3 million in the same period of the prior year.
• Management and advisory fees, net, increased 27% year-over-year to $269.2 million from $211.2 million.
• Total performance fees decreased 28% year-over-year to $109.7 million from $153.1 million.
• GAAP net loss was $170.4 million for the quarter, compared to a net loss of $12.0 million in the prior year period.
• Net loss per share of Class A common stock (basic and diluted) was $1.41, compared to $0.49 in the prior year.
• Fee revenues (non-GAAP) were $270.9 million, a 27% increase year-over-year.
• Adjusted revenues (non-GAAP) were $300.6 million, a 27% increase year-over-year.
• Fee-related earnings (FRE) (non-GAAP) were $105.6 million, a 30% increase year-over-year.
• FRE margin was 39% for the quarter, compared to 38% in the prior year period.
• Gross realized performance fees were $29.7 million, a 20% increase year-over-year.
• Performance fee-related earnings (PRE) (non-GAAP) were $15.8 million, a 21% increase year-over-year.
• Adjusted net income (ANI) (non-GAAP) was $60.3 million, a 24% increase year-over-year.
• ANI per share (non-GAAP) was $0.48, a 20% increase year-over-year.
• Weighted-average shares of Class A common stock (basic) were 82.0 million, a 5% increase year-over-year.
• Adjusted weighted-average shares were 125.9 million, a 3% increase year-over-year.
• Cash and cash equivalents were $201.2 million as of June 30, 2026, down from $213.1 million as of March 31, 2026.
• Debt obligations were $270.9 million as of June 30, 2026, compared to $270.6 million as of March 31, 2026.
• Total assets were $7.77 billion as of June 30, 2026, compared to $6.76 billion as of March 31, 2026.
• Total liabilities were $6.53 billion as of June 30, 2026, compared to $5.88 billion as of March 31, 2026.
• Total stockholders' equity was $970.5 million as of June 30, 2026, compared to $691.0 million as of March 31, 2026.

Guidance and Future Outlook

• The press release does not provide specific forward guidance, future growth targets, or long-term financial outlooks.
• Management noted that forward-looking statements are subject to risks including global and domestic market conditions, the favorability of the private markets fundraising environment, and successful execution of business strategies.

Business Segments and Product Lines

• Fee-earning AUM (FEAUM) increased 21% year-over-year to $153.6 billion as of June 30, 2026, from $127.2 billion in the prior year period.
• FEAUM by asset class:
  • Private equity: $83.8 billion (26% increase year-over-year).
  • Infrastructure: $31.3 billion (20% increase year-over-year).
  • Private debt: $25.6 billion (19% increase year-over-year).
  • Real estate: $12.9 billion (3% decrease year-over-year).
• Assets under management (AUM) increased 23% year-over-year to $245.4 billion as of June 30, 2026, from $199.3 billion in the prior year period.
• Assets under advisement (AUA) increased 27% year-over-year to $667.9 billion as of June 30, 2026, from $524.2 billion in the prior year period.
• Total capital responsibility (AUM + AUA) was $913.2 billion as of June 30, 2026, a 26% increase year-over-year.
• Undeployed fee-earning capital (UFEC) was $39.3 billion as of June 30, 2026, a 37% increase year-over-year.
• Accrued carried interest allocations were $2.08 billion as of June 30, 2026, a 31% increase year-over-year.

Market and Competitive Landscape

• The document does not provide specific market share data, competitor names, or detailed market trend analysis beyond general references to the private markets fundraising environment.
• The company serves public and private defined benefit and defined contribution pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and private wealth clients.

Risks and Challenges

• Risks include global and domestic market and business conditions, the favorability of the private markets fundraising environment, successful integration of acquired businesses, and regulatory factors.
• Results may differ materially from forward-looking statements due to assumptions regarding operations, financial results, and liquidity.
• The company reports significant unrealized carried interest allocations and equity-based compensation, which are excluded from non-GAAP measures but impact GAAP net income.

Management Commentary and Tone

• The press release does not contain direct quotes from management or specific commentary on tone.
• The Board of Directors declared a quarterly cash dividend of $0.33 per share of Class A common stock, payable on September 15, 2026.
• A quarterly dividend of $0.28 per share was paid for the quarter ended June 30, 2026, representing a 17% increase from the $0.24 paid in the prior year period.
• A supplemental cash dividend of $0.55 per share was paid for the quarter ended June 30, 2026, compared to $0.40 in the prior year period.

Other Key Points

• The Company reported results for the first quarter of the fiscal year ending March 31, 2027.
• A webcast and conference call were hosted on August 6, 2026, to discuss results.
• The company utilizes non-GAAP financial measures including Fee Revenues, Adjusted Revenues, Fee-Related Earnings (FRE), Adjusted Net Income (ANI), and Performance Fee-Related Earnings (PRE).
• Legacy Greenspring carried interest allocations and compensation are excluded from non-GAAP measures as they are not attributable to the Company.
• The company holds $913 billion of total capital responsibility, including $245 billion of assets under management.