StepStone Group (STEP) Q3 2026 earnings summary

Executive summary

• Reported a GAAP net loss of $123.5 million for the quarter, primarily due to fair value changes in private wealth profits interests, but improved from a $192 million loss in the prior year.

• Achieved record core fee-related earnings and strong performance fees, with total revenues for the quarter rising 73% year-over-year to $586.5 million.

• Assets under management (AUM) reached $220 billion, up 23% year-over-year, and fee-earning AUM (FEAUM) grew to $138.6 billion, up 21% year-over-year.

• Declared a quarterly cash dividend of $0.28 per share, payable March 13, 2026, and announced a supplemental dividend of $0.40 per share for fiscal years 2024 and 2025.

• Private wealth platform expanded to $15 billion, with over $2.2 billion in new subscriptions in the quarter.

Financial highlights

• Fee revenues for the quarter were $241.1 million, up 26% year-over-year; fee-related earnings (FRE) reached $89.2 million, up 20% year-over-year, with a FRE margin of 37%.

• Adjusted net income (ANI) for the quarter was $79.9 million ($0.65 per share), up 52% year-over-year.

• Gross realized performance fees for the quarter were $253.4 million, up 387% year-over-year, driven by strong incentive fees from Spring and Private Venture and Growth Funds.

• Net accrued carry ended at $875 million, with gross accrued unrealized carried interest at $1.84 billion.

• Management and advisory fees, net, increased 26% year-over-year to $239.9 million.

Outlook and guidance

• Management expects continued growth in AUM and FEAUM, supported by new client activity, private wealth expansion, and a robust pipeline of new capital commitments.

• Anticipates next year’s Spring incentive fees to moderate if returns normalize to mid-teens.

• Several new funds are in market or launching soon, targeting modest growth over prior vintages.

• No significant impact is expected from recent U.S. tax law changes for the fiscal year ending March 31, 2026.