StepStone Group Inc. reported its financial results for the first quarter of fiscal year 2026, which ended June 30, 2025. The company announced total revenues of $364.3 million, representing a substantial 95% increase year-over-year from Q1 FY25.
Management and advisory fees rose 19% year-over-year to $211.2 million, while carried interest allocations significantly increased to $113.3 million from $16.6 million in the prior year's quarter. Investment income also saw a 305% increase to $10.5 million.
Despite a GAAP net loss attributable to StepStone Group Inc. of $(38.42) million, primarily due to an 884% surge in equity-based compensation linked to private wealth profits interest, non-GAAP metrics showed strength. Fee-Related Earnings (FRE) reached $81.2 million, and Adjusted Net Income (ANI) was $48.5 million, or $0.40 per share.
As of June 30, 2025, Assets Under Management (AUM) grew to $199 billion, with Fee-Earning AUM (FEAUM) at $127.2 billion, up $5.8 billion from the prior quarter. Undeployed Fee-Earning Capital (UFEC) reached a record $28.7 billion, providing a clear pipeline for future management fee growth.
The Board of Directors declared a quarterly cash dividend of $0.28 per share of Class A common stock, payable on September 15, 2025, an increase from previous quarters. Additionally, the second annual exchange for non-controlling interests (NCI) buy-ins was completed in May 2025, involving $10 million in cash and $161 million in equity, which is expected to be accretive to earnings.
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