StepStone Group (STEP) Announces Fourth Quarter And Fiscal Year 2025 Earnings Results

StepStone Group Inc. (STEP) today announced its financial results for the most recent quarter, revealing a mixed performance. The company reported a revenue of $377.7 million, significantly surpassing analysts’ expectations of $229.4 million, marking a notable increase. However, StepStone’s earnings per share came in at a loss of $0.24, missing the estimated profit of $0.44 by a substantial margin.

Key Highlights

• StepStone Group Inc. reported its fourth quarter and fiscal year results for the period ending March 31, 2025.
• The company declared a quarterly cash dividend of $0.24 per share and a supplemental cash dividend of $0.40 per share, payable on June 30, 2025.
• Total revenues for the fiscal year increased by 65% to $1.17 billion, driven by a 31% increase in management and advisory fees.
• Assets under management (AUM) reached approximately $189.4 billion, reflecting a 21% increase year-over-year.
• The company reported a net loss of $172.8 million for the fiscal year, compared to a net income of $167.8 million in the previous year.

Summary

StepStone Group Inc. has announced its financial results for the fourth quarter and fiscal year ending March 31, 2025, showcasing significant growth in total revenues, which surged by 65% to $1.17 billion. This growth was primarily fueled by a 31% increase in management and advisory fees, which amounted to $767 million for the year. The company also reported a substantial increase in assets under management, reaching approximately $189.4 billion, up 21% from the previous year. Despite these positive metrics, StepStone faced a net loss of $172.8 million for the fiscal year, a stark contrast to the net income of $167.8 million reported in the prior year.

Management expressed optimism about the company’s future, highlighting the robust growth in AUM and revenues as indicators of strong demand for their investment solutions. The Board of Directors declared a quarterly cash dividend of $0.24 per share and a supplemental cash dividend of $0.40 per share, reflecting their commitment to returning value to shareholders. The company continues to focus on providing customized investment solutions and advisory services, positioning itself well for future growth in the private markets sector.

StepStone Group Inc. (STEP) has experienced a rollercoaster ride in its stock price, with a notable 54.36% increase over the past year, despite a recent dip of 5.57% in the last week. This volatility reflects the company’s dynamic financial landscape, characterized by a staggering 204.14% revenue growth over the past two years, which is impressive but contrasts sharply with its negative net profit margin of -5.32%. The negative price-to-earnings ratio of -33.96 suggests that investors are currently facing challenges in profitability, which may be a concern for potential buyers. Additionally, the company’s free cash flow has seen a decline, with a two-year CAGR of -13.26%, indicating potential liquidity issues. While the EPS growth rate of 10.59% offers a glimmer of hope for future earnings, the return on invested capital remains in the red at -2.70%. As StepStone navigates these mixed signals, investors will be keenly watching how the company addresses its profitability challenges while capitalizing on its impressive revenue growth.

StepStone 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.