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STEPSTONE GROUP REPORTS SECOND QUARTER FISCAL YEAR 2026 RESULTS
NEW YORK, November 6, 2025 – 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 September 30, 2025. This represents results for the second quarter of the fiscal year ending March 31, 2026. The Board of Directors of the Company has declared a quarterly cash dividend of $0.28 per share of Class A common stock, payable on December 15, 2025, to the holders of record as of the close of business on November 28, 2025.
StepStone issued a full detailed presentation of its second quarter fiscal 2026 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, November 6, 2025, at 5:00 pm ET to discuss the Company’s results for the second quarter of the fiscal year ending March 31, 2026. 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/BI6110359ebc534347ba5e789875bc419c. 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 September 30, 2025, StepStone was responsible for approximately $771 billion of total capital, including $209 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 23, 2025, 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 EndedSix Months Ended September 30,Percentage Change
(in thousands, except share and per share amounts and where noted)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025vs. FQ2'25vs. FQ2'25 YTD
Financial Highlights
GAAP Results
Management and advisory fees, net$184,758 $190,840 $213,401 $211,173 $215,489 $362,773 $426,662 17 %18 %
Total revenues271,677 339,023 377,729 364,287 454,225 458,078 818,512 67 %79 %
Total performance fees86,919 148,183 164,328 153,114 238,736 95,305 391,850 175 %311 %
Net income (loss)53,138 (287,163)13,153 (12,011)(575,490)101,183 (587,501)nana
Net income (loss) per share of Class A common stock:
Basic$0.26 $(2.61)$(0.24)$(0.49)$(4.66)$0.46 $(5.17)nana
Diluted$0.26 $(2.61)$(0.24)$(0.49)$(4.66)$0.46 $(5.17)nana
Weighted-average shares of Class A common stock:
Basic68,772,051 73,687,289 75,975,770 77,846,710 78,561,587 67,486,964 78,206,102 14 %16 %
Diluted69,695,315 73,687,289 75,975,770 77,846,710 78,561,587 69,147,549 78,206,102 13 %13 %
Quarterly dividend per share of Class A common stock(1)
$0.24 $0.24 $0.24 $0.24 $0.28 $0.45 $0.52 17 %16 %
Supplemental dividend per share of Class A common stock(2)
$— $— $— $0.40 $— $0.15 $0.40 na167 %
Accrued carried interest allocations1,381,110 1,474,543 1,495,664 1,585,209 1,733,922 26 %
Non-GAAP Results(3)
Fee revenues(4)
$185,481 $191,832 $214,662 $212,740 $217,461 $363,995 $430,201 17 %18 %
Adjusted revenues208,788 243,905 295,861 237,467 282,342 429,953 519,809 35 %21 %
Fee-related earnings (“FRE”)72,349 74,118 94,081 81,246 78,633 144,005 159,879 9 %11 %
FRE margin(5)
39 %39 %44 %38 %36 %40 %37 %
Gross realized performance fees23,307 52,073 81,199 24,727 64,881 65,958 89,608 178 %36 %
Performance fee-related earnings (“PRE”)14,540 26,596 41,543 13,022 33,886 36,343 46,908 133 %29 %
Adjusted net income (“ANI”)53,569 52,659 80,603 48,534 66,709 110,810 115,243 25 %4 %
Adjusted weighted-average shares
118,774,233 118,935,179 118,869,111 122,292,943 122,462,594 118,643,088 122,378,231 3 %3 %
ANI per share$0.45 $0.44 $0.68 $0.40 $0.54 $0.93 $0.94 20 %1 %
Key Business Drivers/Operating Metrics (in billions)
Assets under management (“AUM”)(6)
$176.1 $179.2 $189.4 $199.3 $209.1 19 %
Assets under advisement (“AUA”)(6)
505.9 518.7 519.7 524.2 561.6 11 %
Fee-earning AUM (“FEAUM”)104.4 114.2 121.4 127.2 132.8 27 %
Undeployed fee-earning capital (“UFEC”)
29.7 21.7 24.6 28.7 29.8 — %
_______________________________
(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 2024 and 2025, 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)Excludes the impact of consolidating the Consolidated Funds. See reconciliation of GAAP measures to adjusted measures that follows.
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(5)FRE margin is calculated by dividing FRE by fee revenues.
(6)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
September 30, 2025March 31, 2025
Assets
Cash and cash equivalents$229,824 $244,791 
Restricted cash531 502 
Fees and accounts receivable81,435 80,871 
Due from affiliates117,621 92,723 
Investments:
Investments in funds210,162 183,694 
Accrued carried interest allocations1,733,922 1,495,664 
Legacy Greenspring investments in funds and accrued carried interest allocations(1)
679,470 629,228 
Deferred income tax assets524,320 382,886 
Lease right-of-use assets, net86,646 91,841 
Other assets and receivables57,661 62,869 
Intangibles, net243,458 263,872 
Goodwill580,542 580,542 
Assets of Consolidated Funds:
Cash and cash equivalents136,353 44,511 
Investments, at fair value647,827 415,011 
Other assets2,335 17,688 
Total assets
$5,332,107 $4,586,693 
Liabilities and stockholders’ equity
Accounts payable, accrued expenses and other liabilities$93,310 $89,731 
Accrued compensation and benefits1,826,201 736,695 
Accrued carried interest-related compensation891,485 757,968 
Legacy Greenspring accrued carried interest-related compensation(1)
544,919 495,739 
Due to affiliates346,952 331,821 
Lease liabilities109,458 113,519 
Debt obligations269,920 269,268 
Liabilities of Consolidated Funds:
Other liabilities24,076 17,580 
Total liabilities4,106,321 2,812,321 
Redeemable non-controlling interests in Consolidated Funds671,705 377,897 
Redeemable non-controlling interests in subsidiaries7,290 6,327 
Stockholders’ equity:
Class A common stock, $0.001 par value, 650,000,000 authorized; 79,124,247 and 76,761,399 issued and outstanding as of September 30, 2025 and March 31, 2025, respectively
79 77 
Class B common stock, $0.001 par value, 125,000,000 authorized; 39,133,716 and 39,656,954 issued and outstanding as of September 30, 2025 and March 31, 2025, respectively
39 40 
Additional paid-in capital485,919 421,057 
Accumulated deficit(720,431)(242,546)
Accumulated other comprehensive income935 728 
Total StepStone Group Inc. stockholders’ equity(233,459)179,356 
Non-controlling interests in subsidiaries927,728 1,056,510 
Non-controlling interests in legacy Greenspring entities(1)
134,551 133,489 
Non-controlling interests in the Partnership(282,029)20,793 
Total stockholders’ equity546,791 1,390,148 
Total liabilities and stockholders’ equity$5,332,107 $4,586,693 
(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 Income (Loss) (Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended September 30,Six Months Ended September 30,
2025202420252024
Revenues
Management and advisory fees, net$215,489 $184,758 $426,662 $362,773 
Performance fees:
Incentive fees4,902 3,155 5,092 3,996 
Carried interest allocations:
Realized58,878 17,632 83,282 59,436 
Unrealized147,813 52,215 236,696 27,045 
Total carried interest allocations206,691 69,847 319,978 86,481 
Legacy Greenspring carried interest allocations(1)
27,143 13,917 66,780 4,828 
Total performance fees238,736 86,919 391,850 95,305 
Total revenues454,225 271,677 818,512 458,078 
Expenses
Compensation and benefits:
Cash-based compensation100,348 82,871 196,333 161,095 
Equity-based compensation884,470 37,332 1,073,188 56,511 
Performance fee-related compensation:
Realized30,995 8,767 42,700 29,615 
Unrealized88,727 27,748 133,084 16,825 
Total performance fee-related compensation119,722 36,515 175,784 46,440 
Legacy Greenspring performance fee-related compensation(1)
27,143 13,917 66,780 4,828 
Total compensation and benefits1,131,683 170,635 1,512,085 268,874 
General, administrative and other45,292 50,061 88,206 91,072 
Total expenses1,176,975 220,696 1,600,291 359,946 
Other income (expense)
Investment income (loss)(1,210)2,051 9,302 4,646 
Legacy Greenspring investment income (loss)(1)
1,313 (4,031)4,695 (5,286)
Investment income of Consolidated Funds46,044 8,206 67,715 15,841 
Interest income3,224 3,016 5,720 5,073 
Interest expense(4,425)(3,512)(8,959)(6,502)
Other income1,978 1,177 7,130 826 
Total other income46,924 6,907 85,603 14,598 
Income (loss) before income tax(675,826)57,888 (696,176)112,730 
Income tax expense (benefit)(100,336)4,750 (108,675)11,547 
Net income (loss)(575,490)53,138 (587,501)101,183 
Less: Net income attributable to non-controlling interests in subsidiaries9,242 19,125 37,859 35,740 
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)
1,313 (4,031)4,695 (5,286)
Less: Net income (loss) attributable to non-controlling interests in the Partnership(259,946)13,580 (287,068)26,904 
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds39,659 6,525 60,616 12,196 
Less: Net income attributable to redeemable non-controlling interests in subsidiaries384 307 963 669 
Net income (loss) attributable to StepStone Group Inc.$(366,142)$17,632 $(404,566)$30,960 
Net income (loss) per share of Class A common stock:
Basic$(4.66)$0.26 $(5.17)$0.46 
Diluted$(4.66)$0.26 $(5.17)$0.46 
Weighted-average shares of Class A common stock:
Basic78,561,587 68,772,051 78,206,102 67,486,964 
Diluted78,561,587 69,695,315 78,206,102 69,147,549 
(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 EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
Focused commingled funds(1)(2)
$107,855 $105,718 $124,604 $120,036 $127,085 $212,653 $247,121 
Separately managed accounts61,393 66,245 67,695 70,379 71,685 118,769 142,064 
Advisory and other services14,907 17,458 19,927 19,939 16,259 29,676 36,198 
Fund reimbursement revenues(1)
1,326 2,411 2,436 2,386 2,432 2,897 4,818 
Fee revenues
$185,481 $191,832 $214,662 $212,740 $217,461 $363,995 $430,201 
_______________________________
(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 EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
Income-based incentive fees$1,347 $2,120 $3,377 $4,408 $5,334 $2,460 $9,742 
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.
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The table below shows a reconciliation of revenues to adjusted revenues.
Three Months EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
Total revenues$271,677 $339,023 $377,729 $364,287 $454,225 $458,078 $818,512 
Unrealized carried interest allocations(52,215)(93,325)(21,177)(88,883)(147,813)(27,045)(236,696)
Deferred incentive fees2,445 — (513)— 671 2,451 671 
Legacy Greenspring carried interest allocations
(13,917)(8,207)(61,306)(39,637)(27,143)(4,828)(66,780)
Management and advisory fee revenues for the Consolidated Funds(1)
723 992 1,261 1,567 1,972 1,222 3,539 
Incentive fees for the Consolidated Funds(2)
75 5,422 (133)133 430 75 563 
Adjusted revenues$208,788 $243,905 $295,861 $237,467 $282,342 $429,953 $519,809 
_______________________________
(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.
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.
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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.
Three Months EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
GAAP management and advisory fees, net$184,758 $190,840 $213,401 $211,173 $215,489 $362,773 $426,662 
Management and advisory fee revenues for the Consolidated Funds(1)
723 992 1,261 1,567 1,972 1,222 3,539 
Fee revenues
$185,481 $191,832 $214,662 $212,740 $217,461 $363,995 $430,201 
GAAP incentive fees$3,155 $22,369 $5,910 $190 $4,902 $3,996 $5,092 
Adjustments(2)
2,520 5,422 (646)133 1,101 2,526 1,234 
Adjusted incentive fees
$5,675 $27,791 $5,264 $323 $6,003 $6,522 $6,326 
GAAP cash-based compensation$82,871 $85,203 $85,510 $95,985 $100,348 $161,095 $196,333 
Adjustments(3)
(285)339 — (17)(17)(713)(34)
Adjusted cash-based compensation$82,586 $85,542 $85,510 $95,968 $100,331 $160,382 $196,299 
GAAP equity-based compensation$37,332 $486,418 $126,197 $188,718 $884,470 $56,511 $1,073,188 
Adjustments(4)
(34,947)(483,958)(123,263)(184,509)(880,154)(51,732)(1,064,663)
Adjusted equity-based compensation$2,385 $2,460 $2,934 $4,209 $4,316 $4,779 $8,525 
GAAP general, administrative and other$50,061 $43,130 $43,152 $42,914 $45,292 $91,072 $88,206 
Adjustments(5)
(21,900)(13,418)(11,015)(11,597)(11,111)(36,243)(22,708)
Adjusted general, administrative and other$28,161 $29,712 $32,137 $31,317 $34,181 $54,829 $65,498 
GAAP interest income$3,016 $2,559 $3,218 $2,496 $3,224 $5,073 $5,720 
Interest income earned by the Consolidated Funds(6)
(1,363)(887)(1,600)(998)(1,273)(2,270)(2,271)
Adjusted interest income$1,653 $1,672 $1,618 $1,498 $1,951 $2,803 $3,449 
GAAP other income (loss)$1,177 $(2,452)$(31,024)$5,152 $1,978 $826 $7,130 
Adjustments(7)
(1,082)1,883 30,606 (4,159)(1,073)(1,154)(5,232)
Adjusted other income (loss)$95 $(569)$(418)$993 $905 $(328)$1,898 
______________________________
(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 compensation paid to certain employees as part of an acquisition earn-out and unrealized amounts associated with cash-based incentive awards tracked to the performance of a designated investment fund.
(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.
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(5)Reflects the removal of amortization of intangibles, transaction-related costs, unrealized mark-to-market changes in fair value for contingent consideration obligation and other non-core operating income and expenses.
(6)Reflects the removal of interest income earned by the Consolidated Funds.
(7)Reflects the removal of amounts for Tax Receivable Agreements adjustments recognized as other income (loss), loss associated with payment made in connection with a secondary transaction executed by one of our private wealth funds and the impact of consolidation of the Consolidated Funds.
The table below shows a reconciliation of income (loss) before income tax to ANI and FRE.
Three Months EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
Income (loss) before income tax$57,888 $(344,715)$9,950 $(20,350)$(675,826)$112,730 $(696,176)
Net income attributable to non-controlling interests in subsidiaries(1)
(17,812)(32,765)(33,369)(30,725)(27,645)(36,763)(58,370)
Net (income) loss attributable to non-controlling interests in legacy Greenspring entities4,031 (1,167)(2,934)(3,382)(1,313)5,286 (4,695)
Unrealized carried interest allocations(52,215)(93,325)(21,177)(88,883)(147,813)(27,045)(236,696)
Unrealized performance fee-related compensation27,748 49,670 27,777 44,357 88,727 16,825 133,084 
Unrealized investment (income) loss(430)656 (6,007)(9,572)3,726 (1,610)(5,846)
Impact of Consolidated Funds(9,267)(6,892)(35,723)(24,407)(43,864)(16,998)(68,271)
Deferred incentive fees2,445 — (513)— 671 2,451 671 
Equity-based compensation(2)
34,947 483,958 123,263 184,509 880,154 51,732 1,064,663 
Amortization of intangibles10,250 10,250 10,250 10,207 10,207 20,500 20,414 
Tax Receivable Agreements adjustments through earnings— — (348)— (1,302)— (1,302)
Non-core items(3)
11,349 2,094 32,474 686 99 15,486 785 
Pre-tax ANI68,934 67,764 103,643 62,440 85,821 142,594 148,261 
Income taxes(4)
(15,365)(15,105)(23,040)(13,906)(19,112)(31,784)(33,018)
ANI53,569 52,659 80,603 48,534 66,709 110,810 115,243 
Income taxes(4)
15,365 15,105 23,040 13,906 19,112 31,784 33,018 
Realized carried interest allocations(17,632)(24,282)(75,935)(24,404)(58,878)(59,436)(83,282)
Realized performance fee-related compensation
8,767 25,477 39,656 11,705 30,995 29,615 42,700 
Realized investment income(1,621)(1,720)(3,379)(940)(2,516)(3,036)(3,456)
Adjusted incentive fees(5)
(5,675)(27,791)(5,264)(323)(6,003)(6,522)(6,326)
Adjusted interest income(6)
(1,653)(1,672)(1,618)(1,498)(1,951)(2,803)(3,449)
Interest expense3,512 3,008 3,191 4,534 4,425 6,502 8,959 
Adjusted other (income) loss(7)
(95)569 418 (993)(905)328 (1,898)
Net income attributable to non-controlling interests in subsidiaries(1)
17,812 32,765 33,369 30,725 27,645 36,763 58,370 
FRE$72,349 $74,118 $94,081 $81,246 $78,633 $144,005 $159,879 
_______________________________
(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:
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Three Months EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
FRE attributable to non-controlling interests in subsidiaries and profits interests
$14,969 $21,063 $30,451 $26,672 $24,791 $28,277 $51,463 
Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interests
2,843 11,702 2,918 4,053 2,854 8,486 6,907 
Net income attributable to non-controlling interests in subsidiaries and profits interests
$17,812 $32,765 $33,369 $30,725 $27,645 $36,763 $58,370 
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.
Three Months EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
FRE attributable to profits interests issued in the private wealth subsidiary$2,051 $2,956 $6,399 $8,469 $10,103 $2,625 $18,572 
Performance related earnings / other income (loss) attributable to profits interests issued in the private wealth subsidiary206 11,137 (224)(14)31 257 17 
Net income attributable to profits interests issued in the private wealth subsidiary
$2,257 $14,093 $6,175 $8,455 $10,134 $2,882 $18,589 
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 EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
FRE attributable to non-controlling interests in subsidiaries
$12,918 $18,107 $24,052 $18,203 $14,688 $25,652 $32,891 
Performance related earnings / other income (loss) attributable to non-controlling interests in subsidiaries
2,637 565 3,142 4,067 2,823 8,229 6,890 
Net income attributable to non-controlling interests in subsidiaries
$15,555 $18,672 $27,194 $22,270 $17,511 $33,881 $39,781 
(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.
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(3)Includes (income) expense related to the following non-core operating income and expenses:
Three Months EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
Transaction costs$140 $12 $179 $605 $24 $812 $629 
(Gain) loss on change in fair value for contingent consideration obligation10,888 2,476 (205)64 58 13,841 122 
Compensation paid to certain employees as part of an acquisition earn-out321 (394)— — — 803 — 
Unrealized amounts associated with cash-based incentive awards tracked to investment funds— — — 17 17 — 34 
Loss on payment made in connection with private wealth fund secondary transaction— — 32,500 — — — — 
Other non-core items— — — — — 30 — 
Total non-core operating income and expenses$11,349 $2,094 $32,474 $686 $99 $15,486 $785 
(4)Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:
Three Months EndedSix Months Ended September 30,
September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
Federal statutory rate21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %21.0 %
Combined state, local and foreign rate1.3 %1.3 %1.2 %1.3 %1.3 %1.3 %1.3 %
Blended statutory rate22.3 %22.3 %22.2 %22.3 %22.3 %22.3 %22.3 %
(5)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.
(6)Reflects the removal of interest income earned by the Consolidated Funds.
(7)Reflects the removal of Tax Receivable Agreements adjustments recognized as other income (loss) ($1.3 million for the three months ended September 30, 2025, $0.3 million for the three months ended March 31, 2025, and $1.3 million for the six months ended September 30, 2025), loss associated with payment made in connection with a secondary transaction executed by one of our private wealth funds ($32.5 million for the three months ended March 31, 2025), and the impact of consolidation of the Consolidated Funds.
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 EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
FRE$72,349 $74,118 $94,081 $81,246 $78,633 $144,005 $159,879 
Fee revenues185,481 191,832 214,662 212,740 217,461 363,995 430,201 
FRE margin39 %39 %44 %38 %36 %40 %37 %
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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 EndedSix Months Ended September 30,
(in thousands)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
Incentive fees$3,155 $22,369 $5,910 $190 $4,902 $3,996 $5,092 
Realized carried interest allocations
17,632 24,282 75,935 24,404 58,878 59,436 83,282 
Unrealized carried interest allocations
52,215 93,325 21,177 88,883 147,813 27,045 236,696 
Legacy Greenspring carried interest allocations
13,917 8,207 61,306 39,637 27,143 4,828 66,780 
Total performance fees86,919 148,183 164,328 153,114 238,736 95,305 391,850 
Unrealized carried interest allocations
(52,215)(93,325)(21,177)(88,883)(147,813)(27,045)(236,696)
Legacy Greenspring carried interest allocations(13,917)(8,207)(61,306)(39,637)(27,143)(4,828)(66,780)
Incentive fee revenues for the Consolidated Funds(1)
75 5,422 (133)133 430 75 563 
Deferred incentive fees2,445 — (513)— 671 2,451 671 
Gross realized performance fees23,307 52,073 81,199 24,727 64,881 65,958 89,608 
Realized performance fee-related compensation
(8,767)(25,477)(39,656)(11,705)(30,995)(29,615)(42,700)
PRE$14,540 $26,596 $41,543 $13,022 $33,886 $36,343 $46,908 
______________________________
(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 EndedSix Months Ended September 30,
September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025
ANI$53,569 $52,659 $80,603 $48,534 $66,709 $110,810 $115,243 
Weighted-average shares of Class A common stock outstanding – Basic68,772,051 73,687,289 75,975,770 77,846,710 78,561,587 67,486,964 78,206,102 
Assumed vesting of RSUs921,166 491,014 270,492 347,813 509,007 798,186 428,850 
Assumed vesting and exchange of Class B2 units(1)
— — — — — 861,344 — 
Assumed purchase under ESPP2,098 — — — — 1,055 — 
Exchange of Class B units in the Partnership(2)
45,212,921 41,729,937 40,122,028 39,608,270 39,500,159 45,518,634 39,553,919 
Exchange of Class C units in the Partnership(2)
1,626,812 1,016,737 965,761 960,025 947,580 1,737,720 953,768 
Exchange of Class D units in the Partnership(2)
2,239,185 2,010,202 1,535,060 3,530,125 2,944,261 2,239,185 3,235,592 
Adjusted weighted-average shares118,774,233 118,935,179 118,869,111 122,292,943 122,462,594 118,643,088 122,378,231 
ANI per share$0.45 $0.44 $0.68 $0.40 $0.54 $0.93 $0.94 
_______________________________
(1)The Class B2 units fully vested in June 2024.
(2)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 EndedSix Months Ended September 30,Percentage Change
(in millions)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 202520242025vs. FQ2'25
Separately Managed Accounts
Beginning balance$60,272 $62,121 $69,974 $73,174 $76,708 $58,897 $73,174 27 %
Contributions(1)
1,723 9,033 3,874 3,013 2,559 3,808 5,572 49 %
Distributions(2)
(535)(1,000)(1,225)(1,010)(725)(1,365)(1,735)36 %
Market value, FX and other(3)
661 (180)551 1,531 (335)781 1,196 na
Ending balance$62,121 $69,974 $73,174 $76,708 $78,207 $62,121 $78,207 26 %
Focused Commingled Funds
Beginning balance$40,084 $42,294 $44,192 $48,216 $50,511 $34,961 $48,216 26 %
Contributions(1)
2,122 2,520 3,403 2,022 3,547 7,775 5,569 67 %
Distributions(2)
(282)(682)(313)(392)(580)(943)(972)106 %
Market value, FX and other(3)
370 60 934 665 1,106 501 1,771 199 %
Ending balance$42,294 $44,192 $48,216 $50,511 $54,584 $42,294 $54,584 29 %
Total
Beginning balance$100,356 $104,415 $114,166 $121,390 $127,219 $93,858 $121,390 27 %
Contributions(1)
3,845 11,553 7,277 5,035 6,106 11,583 11,141 59 %
Distributions(2)
(817)(1,682)(1,538)(1,402)(1,305)(2,308)(2,707)60 %
Market value, FX and other(3)
1,031 (120)1,485 2,196 771 1,282 2,967 (25)%
Ending balance$104,415 $114,166 $121,390 $127,219 $132,791 $104,415 $132,791 27 %
_______________________________
(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. The three months ended March 31, 2025 include a $0.6 billion secondary transaction within focused commingled funds.
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Asset Class Summary
Three Months EndedPercentage Change
(in millions)September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 2025vs. FQ2'25
FEAUM
Private equity$57,136 $62,811 $65,007 $66,428 $69,932 22%
Infrastructure20,986 23,411 23,830 26,090 27,007 29%
Private debt16,975 17,882 19,517 21,435 22,443 32%
Real estate9,318 10,062 13,036 13,266 13,409 44%
Total$104,415 $114,166 $121,390 $127,219 $132,791 27%
Separately managed accounts$62,121 $69,974 $73,174 $76,708 $78,207 26%
Focused commingled funds42,294 44,192 48,216 50,511 54,584 29%
Total$104,415 $114,166 $121,390 $127,219 $132,791 27%
AUM(1)
Private equity$91,891 $93,404 $95,937 $100,540 $106,408 16%
Infrastructure35,392 36,156 37,026 40,087 42,437 20%
Private debt31,854 31,987 37,133 39,242 40,438 27%
Real estate16,996 17,665 19,284 19,445 19,864 17%
Total$176,133 $179,212 $189,380 $199,314 $209,147 19%
Separately managed accounts$107,252 $109,305 $114,806 $120,649 $124,991 17%
Focused commingled funds53,870 55,142 59,410 62,672 68,014 26%
Advisory AUM15,011 14,765 15,164 15,993 16,142 8%
Total$176,133 $179,212 $189,380 $199,314 $209,147 19%
AUA
Private equity$255,125 $263,420 $262,884 $262,472 $283,034 11%
Infrastructure62,891 67,100 69,027 71,126 78,762 25%
Private debt19,328 19,325 19,726 20,874 23,402 21%
Real estate168,519 168,807 168,047 169,679 176,357 5%
Total$505,863 $518,652 $519,684 $524,151 $561,555 11%
Total capital responsibility(2)
$681,996 $697,864 $709,064 $723,465 $770,702 13%
_____________________________
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
shareholders@stepstonegroup.com
1-212-351-6106
Media:
Brian Ruby / Chris Gillick / Matt Lettiero, ICR
StepStonePR@icrinc.com
1-203-682-8268
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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 September 30, 2025 reflects final data for the prior period (June 30, 2025), adjusted for net new client account activity through September 30, 2025. NAV data for underlying investments is as of June 30, 2025, as reported by underlying managers up to the business day occurring on or after 100 days following June 30, 2025. When NAV data is not available by the business day occurring on or after 100 days following June 30, 2025, 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 September 30, 2025 reflects final data for the prior period (June 30, 2025), adjusted for net new client account activity through September 30, 2025. NAV data for underlying investments is as of June 30, 2025, as reported by underlying managers up to the business day occurring on or after 100 days following June 30, 2025. When NAV data is not available by the business day occurring on or after 100 days following June 30, 2025, 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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