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StepStone Group (STEP)
NASDAQ:STEP
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StepStone Group
(NASDAQ:STEP)
Rating:60Neutral
Price Target:
$65.00
▲(5.43% Upside)
Positive Factors
Earnings
The earnings per share (EPS) for the first quarter of 2025 has been raised.
Price Target
The price target has been increased by 2%.
Negative Factors
Analyst Recommendation
The analyst's recommendation remains Equal-weight with a modest upside.
StepStone Group (STEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.21B
Dividend Yield2.27%
Average Volume (3M)605.83K
Price to Earnings (P/E)103.1
Beta (1Y)1.34
Revenue Growth88.68%
EPS Growth-494.20%
CountryUS
Employees1,090
SectorFinancial
Sector Strength75
IndustryAsset Management
Share Statistics
EPS (TTM)0.40
Shares Outstanding78,552,910
10 Day Avg. Volume586,914
30 Day Avg. Volume605,825
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue4.43
Enterprise Value/Gross Profit34.01
Enterprise Value/Ebitda-21.67
Forecast
1Y Price Target
$69.20Price Target Upside12.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
StepStone Group Business Overview & Revenue Model
Company DescriptionStepStone Group Inc. is an investment firm specializing in direct, fund of funds, secondary direct, and secondary indirect investments. For direct investment, it seeks to invest in venture debt, incubation, mezzanine, distressed/vulture, seed/startup, early venture, mid venture, late venture, emerging growth, later stage, turnaround, growth capital, industry consolidation, recapitalization, and buyout investments in mature and middle market companies. It prefers to invest in natural resources, technology, healthcare, services, materials, manufacturing, consumer durables, apparel, hotels, restaurants and leisure, media, retailing, consumer staples, financials, telecommunication services, energy, infrastructure, real estate, and real asset. The firm invests globally with a focus on United States, North America, Europe, Asia, Latin America, Middle East, Africa, Brazil, Mexico, Argentina, Colombia, New Zealand, China, India, Korea, Japan, Taiwan, and Australia region. It typically invests between $15 million and $200 million in firms with enterprise value between $150 million and $25000 million. The firm invests between 5% and 40% in emerging markets. For fund of fund investment, it seeks to invest in private equity funds, venture capital funds, Special situation funds, Real estate funds, Infrastructure funds, mezzanine funds, and turnaround/distressed funds. It considers investments in both domestic and international funds. It also seeks to make co-investments and follow-on investments and considers partial interests in funds. StepStone Group Inc. was founded in 2007 and is based in New York, New York with additional offices across North America, South America, Europe, Australia, and Asia.
How the Company Makes MoneyStepStone Group makes money primarily through management fees and performance fees. The company earns management fees by providing advisory services and managing investment portfolios on behalf of its clients, which include public pension funds, insurance companies, and other institutional investors. Performance fees are earned based on the investment performance of the funds and portfolios managed by StepStone, usually taking the form of a percentage of the profits generated. Additionally, the company may generate revenue from data services and strategic partnerships that enhance its investment capabilities and expand its client base.
StepStone Group Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in fee-related earnings, adjusted net income, and assets under management, bolstered by successful fundraising and expansion of the private wealth platform. Despite reporting a GAAP net loss and acknowledging market volatility, the positive performance metrics and strategic achievements suggest a strong overall position.Q4-2025 Updates
Positive Updates
Record Fee-Related Earnings and Margin
The company reported fee-related earnings of $94.1 million, up 85% from the prior year quarter, with an FRE margin of 44%, marking the highest levels ever for both quarterly and annual results.
Strong Adjusted Net Income Growth
Adjusted net income for the quarter was $80.6 million or $0.68 per share, up from $37.7 million or $0.33 per share in the fourth quarter of the previous year.
Record Dividend Distribution
StepStone declared a base quarterly dividend of $0.24 and a supplemental dividend of $0.40, with the full dividend payout for the fiscal year amounting to $1.36, up from last year's total of $0.99.
Significant Growth in Private Wealth AUM
The private wealth platform grew from $3.4 billion at the end of fiscal 2024 to over $8 billion by the end of fiscal 2025.
Successful Fundraising and Asset Growth
Total gross inflows were $9.9 billion for the quarter, with fee-earning AUM surpassing $121 billion, up $7.2 billion from the previous quarter.
Largest Real Estate Secondary Fund Raised
The real estate secondaries fund closed at $3.75 billion, the largest ever raised in the industry.
Negative Updates
GAAP Net Loss Reported
StepStone reported a GAAP net loss attributable to the company of $18.5 million or $0.24 per share for the quarter.
Volatility in Capital Markets
The company noted a shift in the capital markets environment in April, characterized by volatility and widening bid-ask spreads, creating uncertainty for future operations.
Company Guidance
During the fiscal fourth quarter of 2025, StepStone Group Inc. reported several key financial metrics. The company experienced a GAAP net loss of $18.5 million or $0.24 per share. However, their fee-related earnings surged to $94.1 million, reflecting an 85% increase from the previous year's quarter, with an FRE margin of 44%. The adjusted net income for the quarter was $80.6 million or $0.68 per share, a significant improvement from the $37.7 million or $0.33 per share recorded in the same period of the last fiscal year. The company declared a base quarterly dividend of $0.24 and a supplemental dividend of $0.40. For the full fiscal year, they raised over $31 billion in assets under management, with a 29% growth in fee-earning AUM, which contributed to their record earnings. StepStone also reported total gross inflows of $9.9 billion for the quarter, with $1.2 billion from evergreen subscriptions, marking their best private wealth quarter ever. The company's fee-earning assets under management increased to over $121 billion, up $7.2 billion from the previous quarter.StepStone Group Financial Statement Overview
Summary
StepStone Group's financial performance is challenged by high leverage and negative profitability margins, despite strong revenue growth. The balance sheet shows significant financial risk with a high debt-to-equity ratio, and cash flow management indicates resilience but is under pressure.Income Statement
StepStone Group's income statement shows a mixed performance. The company experienced a significant revenue growth rate of 15.31% in the TTM period, indicating strong top-line growth. However, profitability metrics are concerning, with negative net profit and EBIT margins, suggesting operational challenges. The gross profit margin has also declined compared to previous periods, reflecting increased cost pressures.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.48 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting recent losses. The equity ratio has decreased, suggesting a weaker capital structure. These factors highlight potential financial instability and increased risk exposure.40
Negative
Cash Flow
Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -7.37% in the TTM period. The operating cash flow to net income ratio is low, indicating limited cash generation relative to net income. However, the free cash flow to net income ratio remains relatively strong, suggesting some resilience in cash flow management despite profitability challenges.50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35B | 1.17B | 711.63M | -67.57M | 1.37B | 787.72M |
| Gross Profit | 176.45M | -89.47M | 339.09M | -281.81M | 562.83M | 384.55M |
| EBITDA | -276.93M | -205.23M | 249.86M | 11.60M | 538.42M | 334.30M |
| Net Income | -231.31M | -179.56M | 58.09M | -18.40M | 193.88M | 62.63M |
Balance Sheet | ||||||
| Total Assets | 4.78B | 4.59B | 3.79B | 3.50B | 4.19B | 1.32B |
| Cash, Cash Equivalents and Short-Term Investments | 244.13M | 289.30M | 181.59M | 128.56M | 116.39M | 179.89M |
| Total Debt | 382.08M | 382.79M | 268.56M | 219.57M | 133.84M | 0.00 |
| Total Liabilities | 3.08B | 2.81B | 1.92B | 1.84B | 2.36B | 661.08M |
| Stockholders Equity | 153.93M | 179.36M | 324.48M | 771.57M | 817.63M | 249.41M |
Cash Flow | ||||||
| Free Cash Flow | 55.42M | 59.83M | 141.91M | 145.56M | 212.18M | 148.04M |
| Operating Cash Flow | 61.04M | 64.93M | 161.52M | 151.18M | 214.28M | 149.30M |
| Investing Cash Flow | -42.06M | -43.48M | -47.35M | -30.81M | -210.24M | -11.17M |
| Financing Cash Flow | 38.16M | 87.48M | -57.98M | -108.02M | -70.44M | -45.31M |
StepStone Group Technical Analysis
Positive
61.65
Price Trends
59.43
Positive
56.48
Positive
57.23
Positive
Market Momentum
0.65
Negative
55.57
Neutral
53.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STEP, the sentiment is Positive. The current price of 61.65 is above the 20-day moving average (MA) of 60.44, above the 50-day MA of 59.43, and above the 200-day MA of 57.23, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 53.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STEP.
StepStone Group Risk Analysis
StepStone Group disclosed 68 risk factors in its most recent earnings report. StepStone Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
StepStone Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.53B | 17.31 | 13.47% | 0.02% | -5.87% | -21.51% | |
79 Outperform | $6.91B | 16.70 | 8.87% | 3.50% | 17.59% | -8.81% | |
76 Outperform | $4.35B | 11.72 | 18.55% | 8.57% | ― | 16.78% | |
76 Outperform | $13.20B | 48.74 | 2.16% | 4.93% | 4.72% | -67.85% | |
74 Outperform | $9.66B | 23.25 | 5.74% | 3.78% | 6.79% | ― | |
68 Neutral | $18.05B | 11.73 | 10.24% | 3.73% | 9.66% | 1.70% | |
60 Neutral | $7.21B | 103.13 | -88.82% | 2.27% | 88.68% | -494.20% |
* Financial Sector Average
Performance Comparison
STEP
StepStone Group
61.65
10.40
20.29%
AMG
Affiliated Managers
233.05
69.19
42.23%
AB
AllianceBernstein
39.44
9.14
30.17%
BEN
Franklin Resources
25.74
7.74
43.00%
IVZ
Invesco
21.96
6.93
46.11%
JHG
Janus Henderson Group
45.10
10.81
31.53%
StepStone Group Corporate Events
M&A TransactionsBusiness Operations and Strategy
StepStone Group Completes Significant Equity Acquisition
Positive
May 30, 2025
On May 30, 2025, StepStone Group Inc. and StepStone Group LP completed a significant transaction to acquire additional equity interests in their Asset Class Entities, including StepStone Group Real Estate LP, StepStone Group Real Assets LP, and StepStone Group Private Debt AG. This exchange increased their ownership to approximately 60% in SRE and SRA, and 61% in SPD, involving a consideration of $11 million in cash, shares of Class A Common Stock, and Class D Units. The transaction is expected to enhance StepStone’s market positioning by consolidating its control over these entities, potentially impacting its operational strategy and stakeholder interests.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.