StepStone Group Inc. — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total revenues for the three months ended September 30, 2026, were $773.1 million, a 70% increase from $454.2 million in the same period of 2025; year-to-date (YTD) total revenues were $1.15 billion, up 41% from $818.5 million.
• Management and advisory fees, net, were $293.1 million for the quarter, up 36% from $215.5 million in Q2 2025; YTD fees were $562.3 million, up 32%.
• Total performance fees were $479.9 million for the quarter, up 101% from $238.7 million in Q2 2025; YTD performance fees were $589.7 million, up 50%.
• GAAP net income was $65.4 million for the quarter, compared to a net loss of $575.5 million in Q2 2025; YTD GAAP net loss was $105.0 million, compared to a loss of $587.5 million.
• GAAP net loss per share (Class A) was $0.87 for the quarter, compared to $4.66 in Q2 2025; YTD net loss per share was $2.28, compared to $5.17.
• Non-GAAP Fee revenues were $297.6 million for the quarter, up 37% from $217.5 million in Q2 2025; YTD fee revenues were $568.5 million, up 32%.
• Non-GAAP Adjusted revenues were $362.7 million for the quarter, up 28% from $282.3 million in Q2 2025; YTD adjusted revenues were $663.3 million, up 28%.
• Non-GAAP Fee-related earnings (FRE) were $126.2 million for the quarter, up 61% from $78.6 million in Q2 2025; YTD FRE was $231.8 million, up 45%.
• Non-GAAP FRE margin was 42% for the quarter, up from 36% in Q2 2025; YTD FRE margin was 41%, up from 37%.
• Non-GAAP Adjusted net income (ANI) was $82.9 million for the quarter, up 24% from $66.7 million in Q2 2025; YTD ANI was $143.2 million, up 24%.
• Non-GAAP ANI per share was $0.66 for the quarter, up 22% from $0.54 in Q2 2025; YTD ANI per share was $1.14, up 21%.
• Gross realized performance fees were $65.1 million for the quarter, flat compared to $64.9 million in Q2 2025; YTD gross realized performance fees were $94.8 million, up 6%.
• Non-GAAP Performance fee-related earnings (PRE) were $32.3 million for the quarter, down 5% from $33.9 million in Q2 2025; YTD PRE was $48.1 million, up 3%.
• Cash and cash equivalents were $297.0 million as of September 30, 2026, compared to $213.1 million as of March 31, 2026.
• Debt obligations were $286.2 million as of September 30, 2026, compared to $270.6 million as of March 31, 2026.
• Accrued carried interest allocations were $2.38 billion as of September 30, 2026, up 37% from $1.73 billion in Q2 2025.

Guidance and Future Outlook

• No specific forward guidance or quantitative future outlook metrics were provided in the press release.

Business Segments and Product Lines

• Fee-earning AUM (FEAUM) was $158.2 billion as of September 30, 2026, up 19% from $132.8 billion in Q2 2025.
• FEAUM by asset class: Private equity was $87.7 billion (up 25%), Infrastructure was $31.0 billion (up 15%), Private debt was $27.0 billion (up 20%), and Real estate was $12.6 billion (down 6%).
• Assets under management (AUM) were $261.0 billion as of September 30, 2026, up 25% from $209.1 billion in Q2 2025.
• AUM by asset class: Private equity was $136.4 billion (up 28%), Infrastructure was $51.3 billion (up 21%), Private debt was $52.5 billion (up 30%), and Real estate was $20.8 billion (up 5%).
• Assets under advisement (AUA) were $697.2 billion as of September 30, 2026, up 24% from $561.6 billion in Q2 2025.
• Total capital responsibility was $958.2 billion as of September 30, 2026, up 24% from $770.7 billion in Q2 2025.
• Undeployed fee-earning capital (UFEC) was $42.4 billion as of September 30, 2026, up 42% from $29.8 billion in Q2 2025.
• Contributions to FEAUM were $8.5 billion for the quarter, up 38% from $6.1 billion in Q2 2025.
• Distributions from FEAUM were $4.5 billion for the quarter, up 241% from $1.3 billion in Q2 2025.

Market and Competitive Landscape

• The press release states 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.
• No specific market share data or competitor comparisons were included.

Risks and Challenges

• Forward-looking statements are subject to risks including global and domestic market and business conditions, execution of business and growth strategies, the favorability of the private markets fundraising environment, successful integration of acquired businesses, and regulatory factors.
• Risks also include assumptions relating to operations, financial results, liquidity, and factors detailed in the Form 10-K filed May 27, 2026.

Management Commentary and Tone

• The Board of Directors declared a quarterly cash dividend of $0.33 per share of Class A common stock, payable on December 15, 2026, to holders of record as of November 30, 2026.
• The quarterly dividend per share increased to $0.33 from $0.28 in previous quarters.
• Supplemental dividend per share was $0.55 for the six months ended September 30, 2026, compared to $0.40 in the prior year period.
• Management hosted a webcast and conference call on November 5, 2026, to discuss results.

Other Key Points

• The company reported results for the second quarter of the fiscal year ending March 31, 2027.
• The press release includes detailed non-GAAP financial measures reconciliations for Fee revenues, Adjusted revenues, FRE, FRE margin, Gross realized performance fees, PRE, ANI, and Adjusted weighted-average shares.
• Legacy Greenspring carried interest allocations were $115.0 million for the quarter and $152.2 million YTD.
• Legacy Greenspring performance fee-related compensation was $115.0 million for the quarter and $152.2 million YTD.
• The company has Class A and Class B common stock outstanding, with 82.5 million and 38.3 million shares issued and outstanding as of September 30, 2026, respectively.
• Total stockholders' equity was $1.24 billion as of September 30, 2026, compared to $691.0 million as of March 31, 2026.