NEW YORK, Nov. 05, 2026 (GLOBE NEWSWIRE) -- StepStone Group Inc. (Nasdaq: STEP) (“we,” “us,” or the “Company”), 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, 2026. This represents results for the second 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 December 15, 2026, to the holders of record as of the close of business on November 30, 2026.

StepStone issued a full detailed presentation of its second 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, November 5, 2026, at 5:00 pm ET to discuss the Company’s results for the second 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/BI36eb874450a245fbb866f54cd2e0216c. 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, 2026, StepStone was responsible for approximately $958 billion of total capital, including $261 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.

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, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, 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.”

Financial Highlights and Key Business Drivers/Operating Metrics

 Three Months Ended Six Months Ended September 30, Percentage Change
(in thousands, except share and per share amounts and where noted)September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026  vs. FQ2'26vs. FQ2'26
YTD
Financial Highlights           
GAAP Results           
Management and advisory fees, net$215,489 $239,932 $259,871 $269,171 $293,149  $426,662 $562,320  36%32%
Total revenues 454,225  586,511  588,580  378,889  773,144   818,512  1,152,033  70%41%
Total performance fees 238,736  346,579  328,709  109,718  479,995   391,850  589,713  101%50%
Net income (loss) (575,490) (162,435) 6,660  (170,366) 65,416   (587,501) (104,950) na(82)%
Net loss per share of Class A common stock:           
Basic$(4.66)$(1.55)$(0.10)$(1.41)$(0.87) $(5.17)$(2.28) (81)%(56)%
Diluted$(4.66)$(1.55)$(0.10)$(1.41)$(0.87) $(5.17)$(2.28) (81)%(56)%
Weighted-average shares of Class A common stock:           
Basic 78,561,587  79,465,039  80,297,984  81,995,674  82,293,951   78,206,102  82,145,627  5%5%
Diluted 78,561,587  79,465,039  80,297,984  81,995,674  82,293,951   78,206,102  82,145,627  5%5%
Quarterly dividend per share of Class A common stock(1)$0.28 $0.28 $0.28 $0.28 $0.33  $0.52 $0.61  18%17%
Supplemental dividend per share of Class A common stock(2)$— $— $— $0.55 $—  $0.40 $0.55  na38%
Accrued carried interest allocations 1,733,922  1,835,862  2,036,892  2,080,443  2,383,351     37% 
            
Non-GAAP Results(3)           
Fee revenues$217,461 $241,133 $260,285 $270,934 $297,604  $430,201 $568,538  37%32%
Adjusted revenues 282,342  494,500  305,841  300,595  362,713   519,809  663,308  28%28%
Fee-related earnings (“FRE”) 78,633  89,236  105,334  105,609  126,209   159,879  231,818  61%45%
FRE margin 36% 37% 40% 39% 42%  37% 41%   
Gross realized performance fees 64,881  253,367  45,556  29,661  65,109   89,608  94,770  —%6%
Performance fee-related earnings (“PRE”) 33,886  131,152  17,894  15,799  32,301   46,908  48,100  (5)%3%
Adjusted net income (“ANI”) 66,709  79,858  69,459  60,295  82,944   115,243  143,239  24%24%
Adjusted weighted-average shares 122,462,594  122,590,230  122,481,335  125,893,054  125,474,770   122,378,231  125,682,770  2%3%
ANI per share$0.54 $0.65 $0.57 $0.48 $0.66  $0.94 $1.14  22%21%
            
Key Business Drivers/Operating Metrics(in billions)           
Assets under management (“AUM”)(4)$209.1 $219.8 $233.3 $245.4 $261.0     25% 
Assets under advisement (“AUA”)(4) 561.6  591.3  651.8  667.9  697.2     24% 
Fee-earning AUM (“FEAUM”) 132.8  138.6  144.0  153.6  158.2     19% 
Undeployed fee-earning capital (“UFEC”) 29.8  32.7  40.1  39.3  42.4     42% 
_______________________________
(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.


StepStone Group Inc.
GAAP Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and per share amounts)

  As of
  September 30, 2026 March 31, 2026
Assets    
Cash and cash equivalents $297,038  $213,065 
Restricted cash  1,227   579 
Fees and accounts receivable  87,937   133,287 
Due from affiliates  162,507   113,150 
Investments:    
Investments in funds  285,964   249,447 
Accrued carried interest allocations  2,383,351   2,036,892 
Legacy Greenspring investments in funds and accrued carried interest allocations(1)  887,830   752,776 
Deferred income tax assets  696,522   614,788 
Lease right-of-use assets, net  140,075   81,565 
Other assets and receivables  63,084   58,946 
Intangibles, net  202,665   223,044 
Goodwill  580,542   580,542 
Assets of Consolidated Funds  3,468,923   1,704,621 
Total assets $9,257,665  $6,762,702 
Liabilities and stockholders’ equity    
Accounts payable, accrued expenses and other liabilities $89,496  $102,685 
Accrued compensation and benefits  3,055,602   2,360,770 
Accrued carried interest-related compensation  1,355,953   1,100,604 
Legacy Greenspring accrued carried interest-related compensation(1)  759,764   619,186 
Due to affiliates  368,722   362,833 
Lease liabilities  162,545   103,600 
Debt obligations  286,224   270,572 
Liabilities of Consolidated Funds  1,617,382   956,426 
Total liabilities  7,695,688   5,876,676 
Redeemable non-controlling interests in Consolidated Funds  310,327   186,236 
Redeemable non-controlling interests in subsidiaries  10,155   8,777 
Stockholders’ equity:    
Class A common stock, $0.001 par value, 650,000,000 authorized; 82,475,390 and 80,703,553 issued and outstanding as of September 30, 2026 and March 31, 2026, respectively  82   81 
Class B common stock, $0.001 par value, 125,000,000 authorized; 38,326,745 and 38,637,761 issued and outstanding as of September 30, 2026 and March 31, 2026, respectively  38   39 
Additional paid-in capital  542,240   482,057 
Accumulated deficit  (1,181,355)  (896,879)
Accumulated other comprehensive income  1,381   1,143 
Total StepStone Group Inc. stockholders’ equity  (637,614)  (413,559)
Non-controlling interests in subsidiaries  2,306,036   1,373,242 
Non-controlling interests in legacy Greenspring entities(1)  128,066   133,590 
Non-controlling interests in the Partnership  (554,993)  (402,260)
Total stockholders’ equity  1,241,495   691,013 
Total liabilities and stockholders’ equity $9,257,665  $6,762,702 

(1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.


StepStone Group Inc.
GAAP Condensed Consolidated Statements of Loss (Unaudited)
(in thousands, except share and per share amounts)

  Three Months Ended September 30, Six Months Ended September 30,
   2026   2025   2026   2025 
Revenues        
Management and advisory fees, net $293,149  $215,489  $562,320  $426,662 
Performance fees:        
Incentive fees  2,495   4,902   2,495   5,092 
Carried interest allocations:        
Realized  60,795   58,878   89,367   83,282 
Unrealized  301,710   147,813   345,685   236,696 
Total carried interest allocations  362,505   206,691   435,052   319,978 
Legacy Greenspring carried interest allocations(1)  114,995   27,143   152,166   66,780 
Total performance fees  479,995   238,736   589,713   391,850 
Total revenues  773,144   454,225   1,152,033   818,512 
Expenses        
Compensation and benefits:        
Cash-based compensation  121,402   100,348   238,636   196,333 
Equity-based compensation  378,816   884,470   696,093   1,073,188 
Performance fee-related compensation:        
Realized  32,808   30,995   46,670   42,700 
Unrealized  211,049   88,727   255,735   133,084 
Total performance fee-related compensation  243,857   119,722   302,405   175,784 
Legacy Greenspring performance fee-related compensation(1)  114,995   27,143   152,166   66,780 
Total compensation and benefits  859,070   1,131,683   1,389,300   1,512,085 
General, administrative and other  58,495   45,292   111,964   88,206 
Total expenses  917,565   1,176,975   1,501,264   1,600,291 
Other income (expense)        
Investment income (loss)  21,114   (1,210)  31,937   9,302 
Legacy Greenspring investment income (loss)(1)  3,172   1,313   (2,075)  4,695 
Investment income of Consolidated Funds  210,119   46,044   212,963   67,715 
Interest income  2,397   3,224   7,118   5,720 
Interest expense  (23,515)  (4,425)  (27,853)  (8,959)
Other income (loss)  (20,838)  1,978   (25,081)  7,130 
Total other income  192,449   46,924   197,009   85,603 
Income (loss) before income tax  48,028   (675,826)  (152,222)  (696,176)
Income tax benefit  (17,388)  (100,336)  (47,272)  (108,675)
Net income (loss)  65,416   (575,490)  (104,950)  (587,501)
Less: Net income attributable to non-controlling interests in subsidiaries  174,263   9,242   196,994   37,859 
Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)  3,172   1,313   (2,075)  4,695 
Less: Net loss attributable to non-controlling interests in the Partnership  (50,416)  (259,946)  (126,550)  (287,068)
Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds  8,672   39,659   12,335   60,616 
Less: Net income attributable to redeemable non-controlling interests in subsidiaries  941   384   1,378   963 
Net loss attributable to StepStone Group Inc. $(71,216) $(366,142) $(187,032) $(404,566)
Net loss per share of Class A common stock:        
Basic $(0.87) $(4.66) $(2.28) $(5.17)
Diluted $(0.87) $(4.66) $(2.28) $(5.17)
Weighted-average shares of Class A common stock:        
Basic  82,293,951   78,561,587   82,145,627   78,206,102 
Diluted  82,293,951   78,561,587   82,145,627   78,206,102 

(1) Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.


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
 Six Months Ended
September 30,
(in thousands) September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
September
30, 2026
  2025  2026 
Focused commingled funds(1)(2) $127,085 $144,277 $160,769 $172,483 $194,360  $247,121 $366,843 
Separately managed accounts  71,685  75,226  76,339  75,278  78,798   142,064  154,076 
Advisory and other services(1)  16,259  18,395  19,998  19,476  20,914   36,198  40,390 
Fund reimbursement revenues(1)  2,432  3,235  3,179  3,697  3,532   4,818  7,229 
Fee revenues $217,461 $241,133 $260,285 $270,934 $297,604  $430,201 $568,538 
_______________________________
(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
 Six Months Ended
September 30,
(in thousands) September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
September
30, 2026
  2025  2026 
Income-based incentive fees $5,334 $5,998 $7,105 $6,998 $8,949  $9,742 $15,947 


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 Six Months Ended
September 30,
(in thousands) September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026 
Total revenues $454,225 $586,511 $588,580 $378,889 $773,144  $818,512 $1,152,033 
Unrealized carried interest allocations  (147,813) (101,985) (201,031) (43,975) (301,710)  (236,696) (345,685)
Deferred incentive fees  671  (1,544) (282) —  903   671  903 
Legacy Greenspring carried interest allocations  (27,143) 10,063  (81,994) (37,171) (114,995)  (66,780) (152,166)
Management and advisory fee revenues for the Consolidated Funds(1)  1,972  1,201  414  1,763  4,455   3,539  6,218 
Incentive fees for the Consolidated Funds(2)  430  254  154  1,089  916   563  2,005 
Adjusted revenues $282,342 $494,500 $305,841 $300,595 $362,713  $519,809 $663,308 
_______________________________
(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 profits interest issued by our non-wholly owned subsidiaries and unrealized mark-to-market changes in the fair value of the profits interest 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 interest 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 profits interest issued by our non-wholly owned subsidiaries and unrealized mark-to-market changes in the fair value of the profits interest 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 above). 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 Ended Six Months Ended
September 30,
(in thousands) September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026 
GAAP management and advisory fees, net $215,489 $239,932 $259,871 $269,171 $293,149  $426,662 $562,320 
Adjustments(1)  1,972  1,201  414  1,763  4,455   3,539  6,218 
Fee revenues $217,461 $241,133 $260,285 $270,934 $297,604  $430,201 $568,538 
          
GAAP incentive fees $4,902 $207,954 $7,087 $— $2,495  $5,092 $2,495 
Adjustments(2)  1,101  (1,290) (128) 1,089  1,819   1,234  2,908 
Adjusted incentive fees $6,003 $206,664 $6,959 $1,089 $4,314  $6,326 $5,403 
          
GAAP cash-based compensation $100,348 $107,114 $110,700 $117,234 $121,402  $196,333 $238,636 
Adjustments(3)  (17) —  (59) (70) 37   (34) (33)
Adjusted cash-based compensation $100,331 $107,114 $110,641 $117,164 $121,439  $196,299 $238,603 
          
GAAP equity-based compensation $884,470 $468,808 $200,061 $317,277 $378,816  $1,073,188 $696,093 
Adjustments(4)  (880,154) (464,124) (193,974) (310,650) (372,579)  (1,064,663) (683,229)
Adjusted equity-based compensation $4,316 $4,684 $6,087 $6,627 $6,237  $8,525 $12,864 
          
GAAP general, administrative and other $45,292 $50,640 $48,408 $53,469 $58,495  $88,206 $111,964 
Adjustments(5)  (11,111) (10,541) (10,185) (11,935) (14,776)  (22,708) (26,711)
Adjusted general, administrative and other $34,181 $40,099 $38,223 $41,534 $43,719  $65,498 $85,253 
          
GAAP realized investment income $2,516 $1,560 $2,677 $1,557 $5,292  $3,456 $6,849 
Adjustments(6)  —  —  11,194  —  —   —  — 
Adjusted realized investment income $2,516 $1,560 $13,871 $1,557 $5,292  $3,456 $6,849 
          
GAAP interest income $3,224 $2,455 $3,658 $4,721 $2,397  $5,720 $7,118 
Adjustments(7)  (1,273) (4) (2,060) (3,256) (640)  (2,271) (3,896)
Adjusted interest income $1,951 $2,451 $1,598 $1,465 $1,757  $3,449 $3,222 
          
GAAP interest expense $(4,425)$(5,123)$(4,420)$(4,338)$(23,515) $(8,959)$(27,853)
Adjustments(8)  —  —  —  —  19,013   —  19,013 
Adjusted interest expense $(4,425)$(5,123)$(4,420)$(4,338)$(4,502) $(8,959)$(8,840)
          
GAAP other income (loss) $1,978 $(1,312)$(5,121)$(4,243)$(20,838) $7,130 $(25,081)
Adjustments(9)  (1,073) 660  5,066  3,639  20,216   (5,232) 23,855 
Adjusted other income (loss) $905 $(652)$(55)$(604)$(622) $1,898 $(1,226)
______________________________
(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 profits interest issued by our non-wholly owned subsidiaries and unrealized mark-to-market changes in the fair value of the profits interest 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 interest expense incurred by the Consolidated Funds.
(9) 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.


The table below shows a reconciliation of income (loss) before income tax to ANI and FRE.

  Three Months Ended Six Months Ended
September 30,
(in thousands) September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026 
Income (loss) before income tax $(675,826)$(194,649)$(344)$(200,250)$48,028  $(696,176)$(152,222)
Net income attributable to non-controlling interests in subsidiaries(1)  (27,645) (115,887) (43,399) (41,585) (53,269)  (58,370) (94,854)
Net (income) loss attributable to non-controlling interests in legacy Greenspring entities  (1,313) 527  (777) 5,247  (3,172)  (4,695) 2,075 
Unrealized carried interest allocations  (147,813) (101,985) (201,031) (43,975) (301,710)  (236,696) (345,685)
Unrealized performance fee-related compensation  88,727  69,050  140,091  44,686  211,049   133,084  255,735 
Unrealized investment (income) loss  3,726  (8,268) (19,011) (9,266) (15,822)  (5,846) (25,088)
Impact of Consolidated Funds  (43,864) (18,944) 5,852  1,912  (161,586)  (68,271) (159,674)
Deferred incentive fees  671  (1,544) (282) —  903   671  903 
Equity-based compensation(2)  880,154  464,124  193,974  310,650  372,579   1,064,663  683,229 
Amortization of intangibles  10,207  10,207  10,207  10,190  10,190   20,414  20,380 
Tax Receivable Agreements adjustments through earnings  (1,302) —  5,537  —  —   (1,302) — 
Non-core items(3)  99  106  6  294  (24)  785  270 
Pre-tax ANI  85,821  102,737  90,823  77,903  107,166   148,261  185,069 
Income taxes(4)  (19,112) (22,879) (21,364) (17,608) (24,222)  (33,018) (41,830)
ANI  66,709  79,858  69,459  60,295  82,944   115,243  143,239 
Income taxes(4)  19,112  22,879  21,364  17,608  24,222   33,018  41,830 
Realized carried interest allocations  (58,878) (46,703) (38,597) (28,572) (60,795)  (83,282) (89,367)
Realized performance fee-related compensation  30,995  122,215  27,662  13,862  32,808   42,700  46,670 
Adjusted realized investment income(5)  (2,516) (1,560) (13,871) (1,557) (5,292)  (3,456) (6,849)
Adjusted incentive fees(6)  (6,003) (206,664) (6,959) (1,089) (4,314)  (6,326) (5,403)
Adjusted interest income(7)  (1,951) (2,451) (1,598) (1,465) (1,757)  (3,449) (3,222)
Adjusted interest expense(8)  4,425  5,123  4,420  4,338  4,502   8,959  8,840 
Adjusted other (income) loss(9)  (905) 652  55  604  622   (1,898) 1,226 
Net income attributable to non-controlling interests in subsidiaries(1)  27,645  115,887  43,399  41,585  53,269   58,370  94,854 
FRE $78,633 $89,236 $105,334 $105,609 $126,209  $159,879 $231,818 
_______________________________
(1) Reflects the portion of pre-tax ANI attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interest issued in the private wealth subsidiary:


  Three Months Ended
 Six Months Ended
September 30,
(in thousands) September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
September
30, 2026
  2025  2026 
FRE attributable to non-controlling interests in subsidiaries and profits interest $24,791 $32,280 $39,988 $39,678 $49,642  $51,463 $89,320 
Performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries and profits interest  2,854  83,607  3,411  1,907  3,627   6,907  5,534 
Net income attributable to non-controlling interests in subsidiaries and profits interest $27,645 $115,887 $43,399 $41,585 $53,269  $58,370 $94,854 


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

  Three Months Ended
 Six Months Ended
September 30,
(in thousands) September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
September
30, 2026
  2025  2026 
FRE attributable to profits interest issued in the private wealth subsidiary $10,103 $14,354 $19,530 $23,908 $29,596  $18,572 $53,504 
Performance-related earnings / other income (loss) attributable to profits interest issued in the private wealth subsidiary  31  83,172  601  535  440   17  975 
Net income attributable to profits interest issued in the private wealth subsidiary $10,134 $97,526 $20,131 $24,443 $30,036  $18,589 $54,479 


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 interest issued in the private wealth subsidiary is presented below.

  Three Months Ended
 Six Months Ended
September 30,
(in thousands) September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
September
30, 2026
  2025  2026 
FRE attributable to non-controlling interests in subsidiaries $14,688 $17,926 $20,458 $15,770 $20,046  $32,891 $35,816 
Performance-related earnings / other income (loss) attributable to non-controlling interests in subsidiaries  2,823  435  2,810  1,372  3,187   6,890  4,559 
Net income attributable to non-controlling interests in subsidiaries $17,511 $18,361 $23,268 $17,142 $23,233  $39,781 $40,375 


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

  Three Months Ended Six Months Ended
September 30,
(in thousands) September
30, 2025
December
31, 2025
March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026 
Transaction costs $24 $47 $— $235 $—  $629 $235 
Loss on change in fair value for contingent consideration obligation  58  59  54  —  —   122  — 
Unrealized amounts associated with cash-based incentive awards tracked to investment funds  17  —  72  6  (45)  34  (39)
Gain realized upon vesting of cash-based incentive awards tracked to investment funds  —  —  (107) —  —   —  — 
Unrealized amounts associated with deferred compensation plan asset adjustments  —  —  —  (11) 13   —  2 
Unrealized amounts associated with deferred compensation plan liability adjustments  —  —  (13) 64  8   —  72 
Total non-core operating income and expenses $99 $106 $6 $294 $(24) $785 $270 


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

  Three Months Ended Six Months Ended
September 30,
  September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		 2025
2026
Federal statutory rate 21.0%21.0%21.0%21.0%21.0% 21.0%21.0%
Combined state, local and foreign rate 1.3%1.3%2.5%1.6%1.6% 1.3%1.6%
Blended statutory rate 22.3%22.3%23.5%22.6%22.6% 22.3%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 interest expense incurred by the Consolidated Funds.
(9) 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 and six months ended September 30, 2025), unrealized amounts associated with deferred compensation plan asset adjustments 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 Ended Six Months Ended
September 30,
(in thousands) September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026 
FRE $78,633 $89,236 $105,334 $105,609 $126,209  $159,879 $231,818 
Fee revenues  217,461  241,133  260,285  270,934  297,604   430,201  568,538 
FRE margin  36% 37% 40% 39% 42%  37% 41%


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 Six Months Ended
September 30,
(in thousands) September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026 
Incentive fees $4,902 $207,954 $7,087 $— $2,495  $5,092 $2,495 
Realized carried interest allocations  58,878  46,703  38,597  28,572  60,795   83,282  89,367 
Unrealized carried interest allocations  147,813  101,985  201,031  43,975  301,710   236,696  345,685 
Legacy Greenspring carried interest allocations  27,143  (10,063) 81,994  37,171  114,995   66,780  152,166 
Total performance fees  238,736  346,579  328,709  109,718  479,995   391,850  589,713 
Unrealized carried interest allocations  (147,813) (101,985) (201,031) (43,975) (301,710)  (236,696) (345,685)
Legacy Greenspring carried interest allocations  (27,143) 10,063  (81,994) (37,171) (114,995)  (66,780) (152,166)
Incentive fee revenues for the Consolidated Funds(1)  430  254  154  1,089  916   563  2,005 
Deferred incentive fees  671  (1,544) (282) —  903   671  903 
Gross realized performance fees  64,881  253,367  45,556  29,661  65,109   89,608  94,770 
Realized performance fee-related compensation  (30,995) (122,215) (27,662) (13,862) (32,808)  (42,700) (46,670)
PRE $33,886 $131,152 $17,894 $15,799 $32,301  $46,908 $48,100 
______________________________
(1) Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation.


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
 Six Months Ended
September 30,
(in thousands, except share and per share amounts) September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
September
30, 2026
  2025  2026 
ANI $66,709 $79,858 $69,459 $60,295 $82,944  $115,243 $143,239 
                 
Weighted-average shares of Class A common stock outstanding – Basic  78,561,587  79,465,039  80,297,984  81,995,674  82,293,951   78,206,102  82,145,627 
Assumed vesting of RSUs  509,007  590,042  320,535  343,420  383,849   428,850  363,745 
Assumed purchase under ESPP  —  —  349  408  —   —  203 
Exchange of Class B units in the Partnership(1)  39,500,159  39,094,629  39,013,494  38,555,343  38,387,098   39,553,919  38,470,761 
Exchange of Class C units in the Partnership(1)  947,580  931,103  931,103  914,619  881,103   953,768  897,770 
Exchange of Class D units in the Partnership(1)  2,944,261  2,509,417  1,917,870  4,083,590  3,528,769   3,235,592  3,804,664 
Adjusted weighted-average shares  122,462,594  122,590,230  122,481,335  125,893,054  125,474,770   122,378,231  125,682,770 
                 
ANI per share $0.54 $0.65 $0.57 $0.48 $0.66  $0.94 $1.14 
_______________________________
(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.


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 Ended Six Months Ended
September 30,		 Percentage
Change
(in millions) September
30, 2025		December
31, 2025		March 31,
2026		June 30,
2026		September
30, 2026		  2025  2026  vs. FQ2'26
Separately Managed Accounts           
Beginning balance $76,708 $78,207 $80,328 $81,815 $83,251  $73,174 $81,815  9%
Contributions(1)  2,559  2,627  2,637  2,950  4,570   5,572  7,520  79%
Distributions(2)  (725) (1,117) (1,584) (1,038) (3,171)  (1,735) (4,209) 337%
Market value, FX and other(3)  (335) 611  434  (476) 19   1,196  (457) na
Ending balance $78,207 $80,328 $81,815 $83,251 $84,669  $78,207 $84,669  8%
            
Focused Commingled Funds           
Beginning balance $50,511 $54,584 $58,223 $62,232 $70,313  $48,216 $62,232  39%
Contributions(1)  3,547  3,245  4,494  8,205  3,885   5,569  12,090  10%
Distributions(2)  (580) (547) (1,252) (1,596) (1,282)  (972) (2,878) 121%
Market value, FX and other(3)  1,106  941  767  1,472  656   1,771  2,128  (41)%
Ending balance $54,584 $58,223 $62,232 $70,313 $73,572  $54,584 $73,572  35%
            
Total           
Beginning balance $127,219 $132,791 $138,551 $144,047 $153,564  $121,390 $144,047  21%
Contributions(1)  6,106  5,872  7,131  11,155  8,455   11,141  19,610  38%
Distributions(2)  (1,305) (1,664) (2,836) (2,634) (4,453)  (2,707) (7,087) 241%
Market value, FX and other(3)  771  1,552  1,201  996  675   2,967  1,671  (12)%
Ending balance $132,791 $138,551 $144,047 $153,564 $158,241  $132,791 $158,241  19%
_______________________________
(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.


Asset Class Summary

  Three Months Ended
 Percentage
Change
(in millions) September
30, 2025
December
31, 2025
March 31,
2026
June 30,
2026
September
30, 2026
 vs. FQ2'26
FEAUM             
Private equity $69,932 $73,193 $75,626 $83,774 $87,694  25%
Infrastructure  27,007  27,897  30,745  31,311  30,967  15%
Private debt  22,443  23,882  24,797  25,583  26,971  20%
Real estate  13,409  13,579  12,879  12,896  12,609  (6)%
Total $132,791 $138,551 $144,047 $153,564 $158,241  19%
              
Separately managed accounts $78,207 $80,328 $81,815 $83,251 $84,669  8%
Focused commingled funds  54,584  58,223  62,232  70,313  73,572  35%
Total $132,791 $138,551 $144,047 $153,564 $158,241  19%
              
AUM(1)             
Private equity $106,408 $112,190 $119,698 $127,569 $136,389  28%
Infrastructure  42,437  44,624  47,569  49,518  51,331  21%
Private debt  40,438  42,269  45,587  47,706  52,457  30%
Real estate  19,864  20,716  20,493  20,558  20,802  5%
Total $209,147 $219,799 $233,347 $245,351 $260,979  25%
              
Separately managed accounts $124,991 $130,111 $136,133 $140,132 $148,057  18%
Focused commingled funds  68,014  73,375  80,807  88,876  96,488  42%
Advisory AUM  16,142  16,313  16,407  16,343  16,434  2%
Total $209,147 $219,799 $233,347 $245,351 $260,979  25%
              
AUA             
Private equity $283,034 $301,403 $341,289 $345,565 $353,558  25%
Infrastructure  78,762  86,955  94,706  103,784  112,656  43%
Private debt  23,402  24,173  25,918  25,061  31,289  34%
Real estate  176,357  178,810  189,892  193,487  199,700  13%
Total $561,555 $591,341 $651,805 $667,897 $697,203  24%
              
Total capital responsibility(2) $770,702 $811,140 $885,152 $913,248 $958,182  24%
_____________________________
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).


Contacts

Shareholder Relations:
Seth Weiss
shareholders@stepstonegroup.com
1-212-351-6106

Media:
Jordan Niezelski / Maggie Duffy
Edelman
StepStone@edifi-dje.com

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, 2026 reflects final data for the prior period (June 30, 2026), adjusted for net new client account activity through September 30, 2026. NAV data for underlying investments is as of June 30, 2026, as reported by underlying managers up to the business day occurring on or after 100 days following June 30, 2026. When NAV data is not available by the business day occurring on or after 100 days following June 30, 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 September 30, 2026 reflects final data for the prior period (June 30, 2026), adjusted for net new client account activity through September 30, 2026. NAV data for underlying investments is as of June 30, 2026, as reported by underlying managers up to the business day occurring on or after 100 days following June 30, 2026. When NAV data is not available by the business day occurring on or after 100 days following June 30, 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.

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.