StepStone Group首季GAAP虧損擴大惟FRE增30% AUM達2454億美元

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stepfy2027q1earningspressr.htm
EX-99.1

Document

STEPSTONE GROUP REPORTS FIRST QUARTER FISCAL YEAR 2027 RESULTS
NEW YORK, August 6, 2026 – StepStone Group Inc. (Nasdaq: STEP), a global private markets investment firm focused on providing customized investment solutions and advisory and data services, today reported results for the quarter ended June 30, 2026. This represents results for the first quarter of the fiscal year ending March 31, 2027. The Board of Directors of the Company has declared a quarterly cash dividend of $0.33 per share of Class A common stock, payable on September 15, 2026, to the holders of record as of the close of business on August 31, 2026.
StepStone issued a full detailed presentation of its first quarter fiscal 2027 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, August 6, 2026, at 5:00 pm ET to discuss the Company’s results for the first quarter of the fiscal year ending March 31, 2027. 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/BIb7358a7075e744b1b4ef2e638196914a. 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 June 30, 2026, StepStone was responsible for approximately $913 billion of total capital, including $245 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.
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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 27, 2026, 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.”
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Financial Highlights and Key Business Drivers/Operating Metrics

Three Months EndedPercentage Change
(in thousands, except share and per share amounts and where noted)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026vs. FQ1'26

Financial Highlights
GAAP Results
Management and advisory fees, net$211,173 $215,489 $239,932 $259,871 $269,171 27 %
Total revenues364,287 454,225 586,511 588,580 378,889 4 %
Total performance fees153,114 238,736 346,579 328,709 109,718 (28)%
Net income (loss)(12,011)(575,490)(162,435)6,660 (170,366)na
Net loss per share of Class A common stock:
Basic$(0.49)$(4.66)$(1.55)$(0.10)$(1.41)186 %
Diluted$(0.49)$(4.66)$(1.55)$(0.10)$(1.41)186 %
Weighted-average shares of Class A common stock:

Basic77,846,710 78,561,587 79,465,039 80,297,984 81,995,674 5 %
Diluted77,846,710 78,561,587 79,465,039 80,297,984 81,995,674 5 %
Quarterly dividend per share of Class A common stock(1)
$0.24 $0.28 $0.28 $0.28 $0.28 17 %
Supplemental dividend per share of Class A common stock(2)
$0.40 $— $— $— $0.55 38 %
Accrued carried interest allocations1,585,209 1,733,922 1,835,862 2,036,892 2,080,443 31 %

Non-GAAP Results(3)

Fee revenues
$212,740 $217,461 $241,133 $260,285 $270,934 27 %
Adjusted revenues237,467 282,342 494,500 305,841 300,595 27 %
Fee-related earnings (“FRE”)81,246 78,633 89,236 105,334 105,609 30 %
FRE margin
38 %36 %37 %40 %39 %
Gross realized performance fees24,727 64,881 253,367 45,556 29,661 20 %
Performance fee-related earnings (“PRE”)13,022 33,886 131,152 17,894 15,799 21 %
Adjusted net income (“ANI”)48,534 66,709 79,858 69,459 60,295 24 %
Adjusted weighted-average shares
122,292,943 122,462,594 122,590,230 122,481,335 125,893,054 3 %
ANI per share$0.40 $0.54 $0.65 $0.57 $0.48 20 %

Key Business Drivers/Operating Metrics (in billions)

Assets under management (“AUM”)(4)
$199.3 $209.1 $219.8 $233.3 $245.4 23 %
Assets under advisement (“AUA”)(4)
524.2 561.6 591.3 651.8 667.9 27 %
Fee-earning AUM (“FEAUM”)127.2 132.8 138.6 144.0 153.6 21 %
Undeployed fee-earning capital (“UFEC”)
28.7 29.8 32.7 40.1 39.3 37 %

_______________________________
(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 2025 and 2026, 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)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.
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StepStone Group Inc.
GAAP Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)
As of
June 30, 2026March 31, 2026
Assets
Cash and cash equivalents$201,167 $213,065 
Restricted cash581 579 
Fees and accounts receivable109,711 133,287 
Due from affiliates153,019 113,150 
Investments:

Investments in funds264,450 249,447 
Accrued carried interest allocations2,080,443 2,036,892 
Legacy Greenspring investments in funds and accrued carried interest allocations(1)
783,847 752,776 
Deferred income tax assets663,333 614,788 
Lease right-of-use assets, net95,222 81,565 
Other assets and receivables59,861 58,946 
Intangibles, net212,855 223,044 
Goodwill580,542 580,542 
Assets of Consolidated Funds
2,562,643 1,704,621 

Total assets
$7,767,674 $6,762,702 
Liabilities and stockholders’ equity
Accounts payable, accrued expenses and other liabilities$84,915 $102,685 
Accrued compensation and benefits2,681,305 2,360,770 
Accrued carried interest-related compensation1,145,080 1,100,604 
Legacy Greenspring accrued carried interest-related compensation(1)
656,035 619,186 
Due to affiliates366,798 362,833 
Lease liabilities116,465 103,600 
Debt obligations270,898 270,572 
Liabilities of Consolidated Funds
1,206,522 956,426 

Total liabilities6,528,018 5,876,676 

Redeemable non-controlling interests in Consolidated Funds259,913 186,236 
Redeemable non-controlling interests in subsidiaries9,214 8,777 
Stockholders’ equity:

Class A common stock, $0.001 par value, 650,000,000 authorized; 82,340,884 and 80,703,553 issued and outstanding as of June 30, 2026 and March 31, 2026, respectively
82 81 
Class B common stock, $0.001 par value, 125,000,000 authorized; 38,387,761 and 38,637,761 issued and outstanding as of June 30, 2026 and March 31, 2026, respectively
38 39 
Additional paid-in capital541,815 482,057 
Accumulated deficit(1,082,511)(896,879)
Accumulated other comprehensive income1,376 1,143 
Total StepStone Group Inc. stockholders’ equity(539,200)(413,559)
Non-controlling interests in subsidiaries1,867,651 1,373,242 
Non-controlling interests in legacy Greenspring entities(1)
127,812 133,590 
Non-controlling interests in the Partnership(485,734)(402,260)
Total stockholders’ equity970,529 691,013 
Total liabilities and stockholders’ equity$7,767,674 $6,762,702 

(1)Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.
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StepStone Group Inc.
GAAP Condensed Consolidated Statements of Loss (Unaudited)
(in thousands, except share and per share amounts)

Three Months Ended June 30,
20262025
Revenues
Management and advisory fees, net$269,171 $211,173 
Performance fees:
Incentive fees— 190 
Carried interest allocations:
Realized28,572 24,404 
Unrealized43,975 88,883 
Total carried interest allocations72,547 113,287 
Legacy Greenspring carried interest allocations(1)
37,171 39,637 
Total performance fees109,718 153,114 
Total revenues378,889 364,287 
Expenses
Compensation and benefits:
Cash-based compensation117,234 95,985 
Equity-based compensation317,277 188,718 
Performance fee-related compensation:
Realized13,862 11,705 
Unrealized44,686 44,357 
Total performance fee-related compensation58,548 56,062 
Legacy Greenspring performance fee-related compensation(1)
37,171 39,637 
Total compensation and benefits530,230 380,402 
General, administrative and other53,469 42,914 

Total expenses583,699 423,316 
Other income (expense)
Investment income10,823 10,512 
Legacy Greenspring investment income (loss)(1)
(5,247)3,382 
Investment income of Consolidated Funds2,844 21,671 
Interest income4,721 2,496 
Interest expense(4,338)(4,534)
Other income (loss)(4,243)5,152 
Total other income4,560 38,679 
Loss before income tax(200,250)(20,350)
Income tax benefit(29,884)(8,339)
Net loss(170,366)(12,011)
Less: Net income attributable to non-controlling interests in subsidiaries22,731 28,617 
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)
(5,247)3,382 
Less: Net loss attributable to non-controlling interests in the Partnership(76,134)(27,122)
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds3,663 20,957 
Less: Net income attributable to redeemable non-controlling interests in subsidiaries437 579 
Net loss attributable to StepStone Group Inc.$(115,816)$(38,424)
Net loss per share of Class A common stock:
Basic$(1.41)$(0.49)
Diluted$(1.41)$(0.49)
Weighted-average shares of Class A common stock:
Basic81,995,674 77,846,710 
Diluted81,995,674 77,846,710 

(1)Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.
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Non-GAAP Financial Measures: Definitions and Reconciliations
Fee Revenues
Fee revenues represents management and advisory fees, net, including amounts earned from the Consolidated Funds which are eliminated in consolidation. We believe fee revenues is useful to investors because it presents the net amount of management and advisory fee revenues attributable to us.
The table below presents the components of fee revenues.

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

Focused commingled funds(1)(2)
$120,036 $127,085 $144,277 $160,769 $172,483 
Separately managed accounts70,379 71,685 75,226 76,339 75,278 
Advisory and other services19,939 16,259 18,395 19,998 19,476 
Fund reimbursement revenues(1)
2,386 2,432 3,235 3,179 3,697 
Fee revenues
$212,740 $217,461 $241,133 $260,285 $270,934 

_______________________________
(1)Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2)Includes income-based incentive fees from certain funds:

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

Income-based incentive fees$4,408 $5,334 $5,998 $7,105 $6,998 

Adjusted Revenues
Adjusted revenues represents the components of revenues used in the determination of ANI and comprise fee revenues, adjusted incentive fees and realized carried interest allocations. We believe adjusted revenues is useful to investors because it presents a measure of realized revenues. 
The table below shows a reconciliation of revenues to adjusted revenues.

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

Total revenues$364,287 $454,225 $586,511 $588,580 $378,889 
Unrealized carried interest allocations(88,883)(147,813)(101,985)(201,031)(43,975)
Deferred incentive fees— 671 (1,544)(282)— 
Legacy Greenspring carried interest allocations
(39,637)(27,143)10,063 (81,994)(37,171)
Management and advisory fee revenues for the Consolidated Funds(1)
1,567 1,972 1,201 414 1,763 
Incentive fees for the Consolidated Funds(2)
133 430 254 154 1,089 
Adjusted revenues$237,467 $282,342 $494,500 $305,841 $300,595 
_______________________________
(1)Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2)Reflects the add-back of incentive fees for the Consolidated Funds, which have been eliminated in consolidation.
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Adjusted Net Income
Adjusted net income, or “ANI,” is a non-GAAP performance measure that we present before the consolidation of StepStone Funds on a pre-tax and after-tax basis used to evaluate profitability. ANI represents the after-tax net realized income attributable to us. ANI does not reflect legacy Greenspring carried interest allocation revenues, legacy Greenspring carried interest-related compensation and legacy Greenspring investment income (loss) as none of the economics are attributable to us. The components of revenues used in the determination of ANI (“adjusted revenues”) comprise fee revenues, adjusted incentive fees and realized carried interest allocations. In addition, ANI excludes: (a) unrealized carried interest allocation revenues and related compensation, (b) unrealized investment income (loss), (c) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (d) amortization of intangibles, (e) net income (loss) attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary, (f) charges associated with acquisitions and corporate transactions, and (g) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). ANI is fully taxed at our blended statutory rate. We believe ANI and adjusted revenues are useful to investors because they enable investors to evaluate the performance of our business across reporting periods.
Fee-Related Earnings 
Fee-related earnings, or “FRE,” is a non-GAAP performance measure used to monitor our baseline earnings from recurring management and advisory fees. FRE is a component of ANI and comprises fee revenues less adjusted expenses which are operating expenses other than (a) performance fee-related compensation, (b) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (c) amortization of intangibles, (d) charges associated with acquisitions and corporate transactions, and (e) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). FRE is presented before income taxes. We believe FRE is useful to investors because it provides additional insight into the operating profitability of our business and our ability to cover direct base compensation and operating expenses from total fee revenue.
The table below shows a reconciliation of GAAP measures to additional non-GAAP measures. We use the non-GAAP measures presented below as components when calculating FRE and ANI (as defined below). We believe these additional non-GAAP measures are useful to investors in evaluating both the baseline earnings from recurring management and advisory fees, which provide additional insight into the operating profitability of our business, and the after-tax net realized income attributable to us, allowing investors to evaluate the performance of our business. These additional non-GAAP measures remove the impact of Consolidated Funds that we are required to consolidate under GAAP, and certain other items that we believe are not indicative of our core operating performance.
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Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

GAAP management and advisory fees, net$211,173 $215,489 $239,932 $259,871 $269,171 
Adjustments(1)
1,567 1,972 1,201 414 1,763 
Fee revenues
$212,740 $217,461 $241,133 $260,285 $270,934 

GAAP incentive fees$190 $4,902 $207,954 $7,087 $— 
Adjustments(2)
133 1,101 (1,290)(128)1,089 
Adjusted incentive fees
$323 $6,003 $206,664 $6,959 $1,089 

GAAP cash-based compensation$95,985 $100,348 $107,114 $110,700 $117,234 
Adjustments(3)
(17)(17)— (59)(70)
Adjusted cash-based compensation$95,968 $100,331 $107,114 $110,641 $117,164 

GAAP equity-based compensation$188,718 $884,470 $468,808 $200,061 $317,277 
Adjustments(4)
(184,509)(880,154)(464,124)(193,974)(310,650)
Adjusted equity-based compensation$4,209 $4,316 $4,684 $6,087 $6,627 

GAAP general, administrative and other$42,914 $45,292 $50,640 $48,408 $53,469 
Adjustments(5)
(11,597)(11,111)(10,541)(10,185)(11,935)
Adjusted general, administrative and other$31,317 $34,181 $40,099 $38,223 $41,534 

GAAP realized investment income$940 $2,516 $1,560 $2,677 $1,557 
Adjustments(6)
— — — 11,194 — 
Adjusted realized investment income$940 $2,516 $1,560 $13,871 $1,557 

GAAP interest income$2,496 $3,224 $2,455 $3,658 $4,721 
Adjustments(7)
(998)(1,273)(4)(2,060)(3,256)
Adjusted interest income$1,498 $1,951 $2,451 $1,598 $1,465 

GAAP other income (loss)$5,152 $1,978 $(1,312)$(5,121)$(4,243)
Adjustments(8)
(4,159)(1,073)660 5,066 3,639 
Adjusted other income (loss)$993 $905 $(652)$(55)$(604)
______________________________
(1)Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
(2)Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation, and deferred incentive fees that are not included in GAAP revenues.
(3)Reflects the removal of unrealized amounts associated with cash-based incentive awards tracked to the performance of a designated investment fund and unrealized amounts associated with deferred compensation plan liability adjustments.
(4)Reflects the removal of equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.
(5)Reflects the removal of amortization of intangibles, transaction-related costs, unrealized mark-to-market changes in fair value for contingent consideration obligation, the impact of consolidation of the Consolidated Funds and other non-core operating income and expenses.
(6)Reflects the realization of a seed capital investment in the StepStone Funds, which is eliminated in consolidation.
(7)Reflects the removal of interest income earned by the Consolidated Funds.
(8)Reflects the removal of amounts for Tax Receivable Agreements adjustments recognized as other income (loss), unrealized amounts associated with deferred compensation plan asset adjustments and the impact of consolidation of the Consolidated Funds.
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The table below shows a reconciliation of income (loss) before income tax to ANI and FRE.

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

Loss before income tax$(20,350)$(675,826)$(194,649)$(344)$(200,250)
Net income attributable to non-controlling interests in subsidiaries(1)
(30,725)(27,645)(115,887)(43,399)(41,585)
Net (income) loss attributable to non-controlling interests in legacy Greenspring entities(3,382)(1,313)527 (777)5,247 

Unrealized carried interest allocations(88,883)(147,813)(101,985)(201,031)(43,975)
Unrealized performance fee-related compensation44,357 88,727 69,050 140,091 44,686 
Unrealized investment (income) loss(9,572)3,726 (8,268)(19,011)(9,266)
Impact of Consolidated Funds(24,407)(43,864)(18,944)5,852 1,912 
Deferred incentive fees— 671 (1,544)(282)— 
Equity-based compensation(2)
184,509 880,154 464,124 193,974 310,650 
Amortization of intangibles10,207 10,207 10,207 10,207 10,190 

Tax Receivable Agreements adjustments through earnings— (1,302)— 5,537 — 
Non-core items(3)
686 99 106 6 294 
Pre-tax ANI62,440 85,821 102,737 90,823 77,903 
Income taxes(4)
(13,906)(19,112)(22,879)(21,364)(17,608)
ANI48,534 66,709 79,858 69,459 60,295 
Income taxes(4)
13,906 19,112 22,879 21,364 17,608 
Realized carried interest allocations(24,404)(58,878)(46,703)(38,597)(28,572)
Realized performance fee-related compensation
11,705 30,995 122,215 27,662 13,862 
Adjusted realized investment income(5)
(940)(2,516)(1,560)(13,871)(1,557)
Adjusted incentive fees(6)
(323)(6,003)(206,664)(6,959)(1,089)

Adjusted interest income(7)
(1,498)(1,951)(2,451)(1,598)(1,465)
Interest expense4,534 4,425 5,123 4,420 4,338 
Adjusted other (income) loss(8)
(993)(905)652 55 604 

Net income attributable to non-controlling interests in subsidiaries(1)
30,725 27,645 115,887 43,399 41,585 

FRE$81,246 $78,633 $89,236 $105,334 $105,609 
_______________________________
(1)Reflects the portion of pre-tax ANI attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary:

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

FRE attributable to non-controlling interests in subsidiaries and profits interests
$26,672 $24,791 $32,280 $39,988 $39,678 
Performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests
4,053 2,854 83,607 3,411 1,907 
Net income attributable to non-controlling interests in subsidiaries and profits interests
$30,725 $27,645 $115,887 $43,399 $41,585 

The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and profits interests and performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below.
9

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

FRE attributable to profits interests issued in the private wealth subsidiary$8,469 $10,103 $14,354 $19,530 $23,908 
Performance-related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary(14)31 83,172 601 535 
Net income attributable to profits interests issued in the private wealth subsidiary
$8,455 $10,134 $97,526 $20,131 $24,443 

The contribution to pre-tax ANI attributable to non-controlling interests in subsidiaries and performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries presented above specifically not attributable to the profits interests issued in the private wealth subsidiary is presented below.

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

FRE attributable to non-controlling interests in subsidiaries
$18,203 $14,688 $17,926 $20,458 $15,770 
Performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries
4,067 2,823 435 2,810 1,372 
Net income attributable to non-controlling interests in subsidiaries
$22,270 $17,511 $18,361 $23,268 $17,142 

(2)Reflects equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.
(3)Includes (income) expense related to the following non-core operating income and expenses:

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

Transaction costs$605 $24 $47 $— $235 

Loss on change in fair value for contingent consideration obligation64 58 59 54 — 

Unrealized amounts associated with cash-based incentive awards tracked to investment funds17 17 — 72 6 
Gain realized upon vesting of cash-based incentive awards tracked to investment funds— — — (107)— 
Unrealized amounts associated with deferred compensation plan asset adjustments— — — — (11)
Unrealized amounts associated with deferred compensation plan liability adjustments— — — (13)64 

Total non-core operating income and expenses$686 $99 $106 $6 $294 

(4)Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:

Three Months Ended
June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

Federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %
Combined state, local and foreign rate1.3 %1.3 %1.3 %2.5 %1.6 %
Blended statutory rate22.3 %22.3 %22.3 %23.5 %22.6 %

(5)Reflects the realization of a seed capital investment in the StepStone Funds, which is eliminated in consolidation.
(6)Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation, and deferred incentive fees that are not included in GAAP revenues.
(7)Reflects the removal of interest income earned by the Consolidated Funds.
(8)Reflects the removal of Tax Receivable Agreements adjustments recognized as other income (loss) ($(5.5) million for the three months ended March 31, 2026 and $1.3 million for the three months ended September 30, 2025), unrealized amounts associated with deferred compensation plan asset adjustments and the impact of consolidation of the Consolidated Funds.
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Fee-Related Earnings Margin
FRE margin is a non-GAAP performance measure which is calculated by dividing FRE by fee revenues. We believe FRE margin is an important measure of profitability on revenues that are largely recurring by nature. We believe FRE margin is useful to investors because it enables them to better evaluate the operating profitability of our business across periods.
The table below shows a reconciliation of FRE to FRE margin.

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026
FRE$81,246 $78,633 $89,236 $105,334 $105,609 
Fee revenues212,740 217,461 241,133 260,285 270,934 
FRE margin38 %36 %37 %40 %39 %

Gross Realized Performance Fees
Gross realized performance fees represents realized carried interest allocations and adjusted incentive fees. We believe gross realized performance fees is useful to investors because it presents the total performance fees realized by us.
Performance Fee-Related Earnings
Performance fee-related earnings, or “PRE,” represents gross realized performance fees less realized performance fee-related compensation. We believe PRE is useful to investors because it presents the performance fees attributable to us, net of amounts paid to employees as performance fee-related compensation. 
The table below shows a reconciliation of total performance fees to gross realized performance fees and PRE. 

Three Months Ended
(in thousands)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

Incentive fees$190 $4,902 $207,954 $7,087 $— 
Realized carried interest allocations
24,404 58,878 46,703 38,597 28,572 
Unrealized carried interest allocations
88,883 147,813 101,985 201,031 43,975 
Legacy Greenspring carried interest allocations
39,637 27,143 (10,063)81,994 37,171 
Total performance fees153,114 238,736 346,579 328,709 109,718 
Unrealized carried interest allocations
(88,883)(147,813)(101,985)(201,031)(43,975)
Legacy Greenspring carried interest allocations(39,637)(27,143)10,063 (81,994)(37,171)
Incentive fee revenues for the Consolidated Funds(1)
133 430 254 154 1,089 
Deferred incentive fees— 671 (1,544)(282)— 
Gross realized performance fees24,727 64,881 253,367 45,556 29,661 
Realized performance fee-related compensation
(11,705)(30,995)(122,215)(27,662)(13,862)
PRE$13,022 $33,886 $131,152 $17,894 $15,799 
______________________________
(1)Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
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Adjusted Weighted-Average Shares and Adjusted Net Income Per Share
ANI per share measures our per-share earnings assuming all Class B units, Class C units and Class D units in the Partnership were exchanged for Class A common stock in SSG, including the dilutive impact of outstanding equity-based awards. ANI per share is calculated as ANI divided by adjusted weighted-average shares outstanding. We believe adjusted weighted-average shares and ANI per share are useful to investors because they enable investors to better evaluate per-share operating performance across reporting periods.
The following table shows a reconciliation of diluted weighted-average shares of Class A common stock outstanding to adjusted weighted-average shares outstanding used in the computation of ANI per share.

Three Months Ended
(in thousands, except share and per share amounts)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026

ANI$48,534 $66,709 $79,858 $69,459 $60,295 

Weighted-average shares of Class A common stock outstanding – Basic77,846,710 78,561,587 79,465,039 80,297,984 81,995,674 
Assumed vesting of RSUs347,813 509,007 590,042 320,535 343,420 

Assumed purchase under ESPP— — — 349 408 
Exchange of Class B units in the Partnership(1)
39,608,270 39,500,159 39,094,629 39,013,494 38,555,343 
Exchange of Class C units in the Partnership(1)
960,025 947,580 931,103 931,103 914,619 
Exchange of Class D units in the Partnership(1)
3,530,125 2,944,261 2,509,417 1,917,870 4,083,590 
Adjusted weighted-average shares122,292,943 122,462,594 122,590,230 122,481,335 125,893,054 

ANI per share$0.40 $0.54 $0.65 $0.57 $0.48 
_______________________________
(1)Assumes the full exchange of Class B units, Class C units or Class D units in the Partnership for Class A common stock of SSG pursuant to the Class B Exchange Agreement, Class C Exchange Agreement or Class D Exchange Agreement, respectively.
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Key Operating Metrics
We monitor certain operating metrics that are either common to the asset management industry or that we believe provide important data regarding our business. Refer to the Glossary below for a definition of each of these metrics.
Fee-Earning AUM 

Three Months EndedPercentage Change
(in millions)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026vs. FQ1'26

Separately Managed Accounts
Beginning balance$73,174 $76,708 $78,207 $80,328 $81,815 12 %
Contributions(1)
3,013 2,559 2,627 2,637 2,950 (2)%
Distributions(2)
(1,010)(725)(1,117)(1,584)(1,038)3 %

Market value, FX and other(3)
1,531 (335)611 434 (476)na
Ending balance$76,708 $78,207 $80,328 $81,815 $83,251 9 %

Focused Commingled Funds
Beginning balance$48,216 $50,511 $54,584 $58,223 $62,232 29 %
Contributions(1)
2,022 3,547 3,245 4,494 8,205 306 %
Distributions(2)
(392)(580)(547)(1,252)(1,596)307 %

Market value, FX and other(3)
665 1,106 941 767 1,472 121 %
Ending balance$50,511 $54,584 $58,223 $62,232 $70,313 39 %

Total
Beginning balance$121,390 $127,219 $132,791 $138,551 $144,047 19 %
Contributions(1)
5,035 6,106 5,872 7,131 11,155 122 %
Distributions(2)
(1,402)(1,305)(1,664)(2,836)(2,634)88 %

Market value, FX and other(3)
2,196 771 1,552 1,201 996 (55)%
Ending balance$127,219 $132,791 $138,551 $144,047 $153,564 21 %
_______________________________
(1)Contributions consist of new capital commitments that earn fees on committed capital and capital contributions to funds and accounts that earn fees on net invested capital or NAV.
(2)Distributions consist of returns of capital from funds and accounts that pay fees on net invested capital or NAV and reductions in fee-earning AUM from funds that moved from a committed capital to net invested capital fee basis or from funds and accounts that no longer pay fees.
(3)Market value, FX and other primarily consist of changes in market value appreciation (depreciation) for funds that pay on NAV and the effect of foreign exchange rate changes on non-U.S. dollar denominated commitments.
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Asset Class Summary

Three Months EndedPercentage Change
(in millions)June 30, 2025September 30, 2025December 31, 2025March 31, 2026June 30, 2026vs. FQ1'26

FEAUM
Private equity$66,428 $69,932 $73,193 $75,626 $83,774 26%
Infrastructure26,090 27,007 27,897 30,745 31,311 20%
Private debt21,435 22,443 23,882 24,797 25,583 19%
Real estate13,266 13,409 13,579 12,879 12,896 (3)%
Total$127,219 $132,791 $138,551 $144,047 $153,564 21%

Separately managed accounts$76,708 $78,207 $80,328 $81,815 $83,251 9%
Focused commingled funds50,511 54,584 58,223 62,232 70,313 39%
Total$127,219 $132,791 $138,551 $144,047 $153,564 21%

AUM(1)

Private equity$100,540 $106,408 $112,190 $119,698 $127,569 27%
Infrastructure40,087 42,437 44,624 47,569 49,518 24%
Private debt39,242 40,438 42,269 45,587 47,706 22%
Real estate19,445 19,864 20,716 20,493 20,558 6%
Total$199,314 $209,147 $219,799 $233,347 $245,351 23%

Separately managed accounts$120,649 $124,991 $130,111 $136,133 $140,132 16%
Focused commingled funds62,672 68,014 73,375 80,807 88,876 42%
Advisory AUM15,993 16,142 16,313 16,407 16,343 2%
Total$199,314 $209,147 $219,799 $233,347 $245,351 23%

AUA
Private equity$262,472 $283,034 $301,403 $341,289 $345,565 32%
Infrastructure71,126 78,762 86,955 94,706 103,784 46%
Private debt20,874 23,402 24,173 25,918 25,061 20%
Real estate169,679 176,357 178,810 189,892 193,487 14%
Total$524,151 $561,555 $591,341 $651,805 $667,897 27%

Total capital responsibility(2)
$723,465 $770,702 $811,140 $885,152 $913,248 26%
_____________________________
Note: Amounts may not sum to total due to rounding. AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented, and 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.
(1)Allocation of AUM by asset class is presented by underlying investment asset classification.
(2)Total capital responsibility equals assets under management (AUM) plus assets under advisement (AUA).
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Contacts
Shareholder Relations:
Seth Weiss
[email protected]
1-212-351-6106
Media:
Jordan Niezelski / Maggie Duffy
Edelman
[email protected]
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Glossary
Assets under advisement, or “AUA,” consists of client assets for which we do not have full discretion to make investment decisions but play a role in advising the client or monitoring their investments. We generally earn revenue for advisory-related services on a contractual fixed fee basis. Advisory-related services include asset allocation, strategic planning, development of investment policies and guidelines, screening and recommending investments, legal negotiations, monitoring and reporting on investments, and investment manager review and due diligence. Advisory fees vary by client based on the scope of services, investment activity and other factors. Most of our advisory fees are fixed, and therefore, increases or decreases in AUA do not necessarily lead to proportionate changes in revenue. We believe AUA is a useful metric for assessing the relative size of our advisory business.
Our AUA is calculated as the sum of (i) the NAV of client portfolio assets for which we do not have full discretion and (ii) the unfunded commitments of clients to the underlying investments. Our AUA reflects the investment valuations in respect of the underlying investments of our client accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUA does not include post-period investment valuation or cash activity. AUA as of June 30, 2026 reflects final data for the prior period (March 31, 2026), adjusted for net new client account activity through June 30, 2026. NAV data for underlying investments is as of March 31, 2026, as reported by underlying managers up to the business day occurring on or after 100 days following March 31, 2026. When NAV data is not available by the business day occurring on or after 100 days following March 31, 2026, such NAVs are adjusted for cash activity following the last available reported NAV.
Assets under management, or “AUM,” primarily reflects the assets associated with our separately managed accounts (“SMAs”) and focused commingled funds. We classify assets as AUM if we have full discretion over the investment decisions in an account or have responsibility or custody of assets. Although management fees are based on a variety of factors and are not linearly correlated with AUM, we believe AUM is a useful metric for assessing the relative size and scope of our asset management business. 
Our AUM is calculated as the sum of (i) the net asset value (“NAV”) of client portfolio assets, including the StepStone Funds and (ii) the unfunded commitments of clients to the underlying investments and the StepStone Funds. Our AUM reflects the investment valuations in respect of the underlying investments of our funds and accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUM does not include post-period investment valuation or cash activity. AUM as of June 30, 2026 reflects final data for the prior period (March 31, 2026), adjusted for net new client account activity through June 30, 2026. NAV data for underlying investments is as of March 31, 2026, as reported by underlying managers up to the business day occurring on or after 100 days following March 31, 2026. When NAV data is not available by the business day occurring on or after 100 days following March 31, 2026, such NAVs are adjusted for cash activity following the last available reported NAV.
Consolidated Funds refer to the StepStone Funds that we are required to consolidate as of the applicable reporting period. We consolidate funds and other entities in which we hold a controlling financial interest.
Consolidated VIEs refer to the variable interest entities that we are required to consolidate as of the applicable reporting period. We consolidate VIEs in which we hold a controlling financial interest.
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Fee-earning AUM, or “FEAUM,” reflects the assets from which we earn management fee revenue (i.e., fee basis) and includes assets in our SMAs, focused commingled funds and assets held directly by our clients for which we have fiduciary oversight and are paid fees as the manager of the assets. Our SMAs and focused commingled funds typically pay management fees based on capital commitments, net invested capital and, in certain cases, NAV, depending on the fee terms. Management fees are only marginally affected by market appreciation or depreciation because substantially all of the StepStone Funds pay management fees based on capital commitments or net invested capital. As a result, management fees and FEAUM are not materially affected by changes in market value. We believe FEAUM is a useful metric in order to assess assets forming the basis of our management fee revenue.
Legacy Greenspring entities refers to certain entities for which the Company, indirectly through its subsidiaries, became the sole and/or managing member in connection with the Greenspring acquisition.
SSG refers solely to StepStone Group Inc., a Delaware corporation, and not to any of its subsidiaries.
StepStone Funds refer to SMAs and focused commingled funds of the Company, including acquired Greenspring funds, for which the Partnership or one of its subsidiaries acts as both investment adviser and general partner or managing member.
The Partnership refers solely to StepStone Group LP, a Delaware limited partnership, and not to any of its subsidiaries.
Total capital responsibility equals AUM plus AUA. AUM includes any accounts for which StepStone Group has full discretion over the investment decisions, has responsibility to arrange or effectuate transactions, or has custody of assets. AUA refers to accounts for which StepStone Group provides advice or consultation but for which the firm does not have discretionary authority, responsibility to arrange or effectuate transactions, or custody of assets.
Undeployed fee-earning capital represents the amount of capital commitments to StepStone Funds that has not yet been invested or considered active but will generate management fee revenue once invested or activated. We believe undeployed fee-earning capital is a useful metric for measuring the amount of capital that we can put to work in the future and thus earn management fee revenue thereon.

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