StepStone Group (STEP) Q4 2026 earnings summary

Executive summary

• Achieved record fee-related earnings and fundraising, with $105.3 million in quarterly FRE and nearly $14 billion in capital formation for the quarter, capping a fiscal year with $38 billion in gross AUM additions and AUM reaching $233.3 billion, up 23% year-over-year.

• Organic private wealth subscriptions reached all-time highs, with $2.3 billion in new subscriptions and strong demand across funds, especially in venture and credit strategies.

• Fee revenues grew 21% for both the quarter and full year, driven by FEAUM growth and higher-fee evergreen products.

• Investments in data, technology, and defined contribution solutions are expected to drive future growth, including partnerships with FTSE Russell, Kroll, and PitchBook.

• Declared a quarterly cash dividend of $0.28 per share and a supplemental dividend of $0.55 per share, both payable June 30, 2026.

Financial highlights

• Fee-related earnings (FRE) were $105.3 million for the quarter (+12% YoY), $354.4 million for the year (+14% YoY); FRE margin was 40% for the quarter and 38% for the year.

• Fee revenues reached $260.3 million for the quarter (+21% YoY), $931.6 million for the year (+21% YoY).

• Adjusted net income (ANI) was $69.5 million for the quarter (-14% YoY), $264.6 million for the year (+8% YoY); ANI per share was $0.57 for the quarter (-16% YoY), $2.16 for the year (+5% YoY).

• GAAP net loss attributable to the company was $7.8 million for the quarter and $535.8 million for the year; FY 2026 net loss was $743.3 million.

• Total performance fees for FY 2026 were $1.07 billion, up 162% year-over-year.

Outlook and guidance

• Expect continued top-line growth and operating leverage to drive FRE growth in fiscal 2027.

• Margin expansion anticipated over the long term, though not expected to be linear.

• Anticipate a similar blended statutory tax rate of 22.6% for fiscal 2027.

• Management highlighted the use of non-GAAP measures to supplement GAAP results and cautioned that forward-looking statements are subject to risks including market conditions, regulatory factors, and successful execution of growth strategies.