StepStone Group Reports Strong Revenue Growth Amid Net Loss

Stepstone Group, Inc. ( (STEP) ) has released its Q4 earnings. Here is a breakdown of the information Stepstone Group, Inc. presented to its investors.

StepStone Group Inc., a global private markets investment firm, specializes in providing customized investment solutions and advisory and data services across various asset classes, including private equity, infrastructure, private debt, and real estate. In its latest earnings report, StepStone Group announced its financial results for the fourth quarter and fiscal year ending March 31, 2025. The company declared a quarterly cash dividend of $0.24 per share and a supplemental dividend of $0.40 per share, reflecting its commitment to returning value to shareholders.

The report highlighted a significant increase in total revenues, which rose by 65% year-over-year to $1.17 billion, driven by a 31% increase in management and advisory fees. Performance fees also saw a substantial increase of 222% compared to the previous fiscal year. However, the company reported a net loss of $172.8 million for the fiscal year, primarily due to increased compensation expenses and other costs. Despite the net loss, StepStone’s assets under management grew by 21% to $189.4 billion, indicating strong client demand and successful asset acquisition strategies.

StepStone’s non-GAAP financial measures showed positive trends, with adjusted net income per share increasing by 69% year-over-year to $2.05. Fee-related earnings also improved, with an 85% increase to $312.2 million, reflecting the firm’s operational efficiency and robust fee generation capabilities. The company’s fee-earning assets under management rose by 29% to $121.4 billion, underscoring its expanding footprint in the private markets sector.

Looking ahead, StepStone Group remains focused on executing its growth strategies and capitalizing on favorable market conditions. The management’s outlook suggests a continued emphasis on expanding its global presence and enhancing its investment solutions to meet the evolving needs of its diverse client base.