StepStone Group Inc. (NASDAQ:STEP), a financial services firm specializing in private market investments, continues to show resilience while navigating performance-based revenue volatility.
For its fiscal third quarter of 2026, StepStone reported earnings per share of $0.65, beating consensus estimates by approximately $0.05. This marks the second consecutive quarter of exceeding expectations.
Revenue surged 54.5% over the last twelve months, driven by strong Performance Related Earnings (PRE), also known as carried interest. However, the company was not profitable over the trailing twelve-month period.
Wealth fundraising reached a record $2.4 billion in flows during the fiscal second quarter of 2026, nearly double the previous record. This signals robust momentum in the wealth management channel.
Despite the earnings beat, Fee-Related Earnings (FRE) missed expectations due to higher operating expenses and lower Separately Managed Account management fees. This highlights the business model's reliance on performance fees.
