StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm that specializes in primary investments, direct investments, fund of funds, secondary investments, and co-investments. The firm was founded in 2007 and is headquartered in New York, with offices across North America, South America, Europe, Asia, and Australia. StepStone ...StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm that specializes in primary investments, direct investments, fund of funds, secondary investments, and co-investments. The firm was founded in 2007 and is headquartered in New York, with offices across North America, South America, Europe, Asia, and Australia. StepStone focuses on delivering customized investment solutions to institutional investors, including pension funds, sovereign wealth funds, insurance companies, and family offices. The firm covers a wide range of sectors including technology, healthcare, natural resources, infrastructure, real estate, and credit. With over $233 billion in assets under management as of 2026, StepStone has grown significantly since its IPO in September 2020. The company employs approximately 1,300 people across 25 offices globally. Under the leadership of CEO Scott Hart, who took over in January 2022, StepStone has expanded its capabilities in data analytics and advisory services. Financially, the company has shown revenue per share of $24.49, but has reported negative net income and operating cash flow in the trailing twelve months, reflecting the nature of private markets fee structures and investment cycles. StepStone is committed to providing transparent and actionable data to clients, and its business model relies on management fees and performance fees from its investment vehicles. The company's vision is to be the leading private markets partner, offering more options and more customized solutions to meet the diverse needs of its clients worldwide.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.0B
+69.7%
-35.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-521.4M
-190.3%
-1386.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+51.0%
+769.7%
+73.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-51.3%
-140.5%
-1464.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-26.2%
-71.1%
-2209.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$63.9M
+6.7%
-1811.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+3.2%
-37.1%
-2869.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-315.6%
-247.9%
+7.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.49x
+47.8%
+1551.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for standing by. Welcome to the First Quarter Fiscal Year 2027 StepStone Group Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to Seth Weiss, Head of Investor Relations. Please go ahead.
Seth Weiss: Thank you. Joining me on today's call are Scott Hart, Chief Executive Officer; Jason Ment, President and Co-Chief Operating Officer; Mike McCabe, Head of Strategy; and David Park, Chief Financial Officer. During our prepared remarks, we will be referring to a presentation, which is available on our Investor Relations website at shareholders.stepstonegroup.com. Before we begin, I would like to remind everyone that this conference call as well as the presentation, contains certain forward-looking statements regarding the company's expected operating and financial performance for future periods. Forward-looking statements reflect management's current plans, estimates and expectations and are inherently uncertain and are subject to various risks, uncertainties and assumptions. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to changes in circumstances or a number of risks or other factors that are described in the Risk Factors section of StepStone's periodic filings. These forward-looking statements are made only as of today, and except as required, we undertake no obligation to update or revise any of them. Today's presentation contains references to non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are included in our earnings release, our presentation, and our filings with the SEC. Turning to our financial results for the first quarter of fiscal 2027. Beginning with Slide 3, we reported a GAAP net loss attributable to StepStone Group, Inc. of $116 million or $1.41 per share. As a reminder, GAAP accounting requires us to factor the change in fair value of the buy-in of the StepStone Private Wealth profits interest through our income statement, which drove the negative GAAP earnings result this quarter. We have a put-call option agreement in place with an entity composed of members of the Private Wealth team that enables StepStone's buy-in of these profits interests. The Private Wealth team entered the put period in the June quarter and StepStone will enter into the call period in the third quarter of calendar 2027. Moving to Slide 5. We generated fee-related earnings of $106 million, up 30% from the prior year quarter, and we generated an FRE margin of 39%. The quarter reflected retroactive fees primarily from our infrastructure secondaries fund. Retroactive fees contributed $1.1 million to revenue, which compares to retroactive fees of $2.9 million in the first quarter of the prior fiscal year. When excluding the impact of retroactive fees, core fee-related earnings were $105 …