StepStone Group’s Q2 2026 results showed revenue of $271.68 million, a 2.1% increase over the $266.13 million consensus estimate. The lift was driven by a 9% rise in fee‑related earnings to $78.6 million and a 17% increase in fee revenue to $217.5 million, reflecting strong demand for the firm’s private‑wealth platform and the recent launch of the StepX private‑equity interval fund.
Adjusted earnings per share fell to $0.45, missing the $0.46 consensus by 2.2%. The shortfall was largely due to a $366 million GAAP net loss, driven by accounting treatment of StepStone Private Wealth profit‑interest gains. While the adjusted EPS beat the $0.49 estimate reported by some analysts, the GAAP loss underscored the impact of one‑time accounting items on the bottom line.
Revenue growth was uneven across segments. The private‑wealth platform generated a record $2.4 billion in new subscriptions, boosting fee‑related earnings. The StepX fund attracted more than $700 million in gross subscriptions in its first month, adding to fee revenue. In contrast, the private‑debt and real‑estate segments saw modest growth, partially offsetting the gains in private equity and infrastructure.
Management guided for Q3 FY2026 revenue of $329.12 million and adjusted EPS of $0.78, up from the $0.74 guidance issued in the prior quarter. The firm also reiterated its full‑year 2026 revenue outlook of $1.08 billion, unchanged from the previous forecast. The guidance signals confidence in sustained fee‑earning growth, while the firm noted that the GAAP net loss would likely persist due to ongoing accounting adjustments.
CEO Scott Hart described the quarter as “strong on all fronts,” citing the record private‑wealth subscriptions and the StepX launch as key drivers. CFO David Park highlighted that fee revenue grew 27% year‑over‑year after excluding retroactive fees. Analysts noted that the mixed earnings picture—revenue beat but EPS miss—was a result of the GAAP loss, which investors weighed against the firm’s operational performance. The market reaction was tempered by the GAAP loss, despite the revenue beat and positive guidance.
The results suggest that StepStone’s core fee‑earning business remains robust, with continued expansion in private‑wealth and new product offerings. However, the GAAP net loss highlights the importance of accounting adjustments in evaluating profitability. The firm’s guidance indicates a focus on maintaining growth momentum while managing the impact of one‑time accounting items on its financial statements.
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