8-K: StepStone Reports Q3 FY26 Results, Boosts Dividend

StepStone Group Inc. announced its third fiscal quarter 2026 financial results, reporting significant growth in revenues and assets under management, alongside an increased quarterly cash dividend.

Summary

• Management and advisory fees, net, reached $239,932 thousand for Q3 FY26, marking a 26% increase from Q3 FY25.
• Total revenues surged to $586,511 thousand for Q3 FY26, up 73% compared to Q3 FY25.
• Total performance fees grew by 134% to $346,579 thousand for Q3 FY26 from Q3 FY25.
• The GAAP net loss for Q3 FY26 was $(162,435) thousand, an improvement from $(287,163) thousand in Q3 FY25.
• GAAP net loss per share improved to $(1.55) for Q3 FY26, compared to $(2.61) in Q3 FY25.
• A quarterly cash dividend of $0.28 per share of Class A common stock was declared, payable on March 13, 2026, an increase from $0.24 in Q3 FY25.
• Accrued carried interest allocations stood at $1,835,862 thousand as of December 31, 2025, representing a 25% increase from March 31, 2025.
• Assets under management (AUM) grew by 23% to approximately $220 billion as of December 31, 2025.
• Assets under advisement (AUA) increased by 14% to approximately $591 billion as of December 31, 2025.
• Fee-earning AUM (FEAUM) expanded by 21% to $138.6 billion as of December 31, 2025.
• Undeployed fee-earning capital (UFEC) rose by 51% to $32.7 billion as of December 31, 2025.
• Adjusted Net Income (ANI) for Q3 FY26 was $79,858 thousand, up 52% from Q3 FY25.
• Fee-Related Earnings (FRE) for Q3 FY26 increased by 20% to $89,236 thousand compared to Q3 FY25.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, driven by significant growth in assets under management, fee-earning capital, and non-GAAP profitability, alongside a notable reduction in GAAP net loss and an increased dividend, indicating robust operational execution in private markets.

Positives

• Management and advisory fees, net, increased by 26% to $239,932 thousand for Q3 FY26 compared to Q3 FY25.
• Total revenues surged by 73% to $586,511 thousand for Q3 FY26 compared to Q3 FY25.
• Total performance fees grew by 134% to $346,579 thousand for Q3 FY26 compared to Q3 FY25.
• GAAP net loss significantly narrowed to $(162,435) thousand for Q3 FY26 from $(287,163) thousand in Q3 FY25.
• GAAP net loss per share improved to $(1.55) for Q3 FY26 from $(2.61) in Q3 FY25.
• The quarterly cash dividend was increased to $0.28 per share, up 17% from $0.24 in the prior year.
• Accrued carried interest allocations rose by 25% to $1,835,862 thousand as of December 31, 2025, from March 31, 2025.
• Assets under management (AUM) increased by 23% to approximately $220 billion as of December 31, 2025.
• Assets under advisement (AUA) grew by 14% to approximately $591 billion as of December 31, 2025.
• Fee-earning AUM (FEAUM) expanded by 21% to $138.6 billion as of December 31, 2025.
• Undeployed fee-earning capital (UFEC) increased by 51% to $32.7 billion as of December 31, 2025.
• Adjusted Net Income (ANI) increased by 52% to $79,858 thousand for Q3 FY26 compared to Q3 FY25.
• Fee-Related Earnings (FRE) increased by 20% to $89,236 thousand for Q3 FY26 compared to Q3 FY25.

Negatives

• Fee-related earnings (FRE) margin decreased to 37% for Q3 FY26 from 39% in Q3 FY25, indicating a slight reduction in profitability on recurring revenues.
• The company reported a GAAP net loss of $(162,435) thousand for the quarter and a net loss of $(749,936) thousand for the nine months ended December 31, 2025, despite the improvement from the prior year.

Risks

• Global and domestic market and business conditions.
• Successful execution of business and growth strategies.
• Favorability of the private markets fundraising environment.
• Successful integration of acquired businesses.
• Regulatory factors relevant to the business.
• Assumptions relating to operations, financial results, financial condition, business prospects, growth strategy, and liquidity.

Future Outlook

The filing contains general forward-looking statements reflecting management's current plans, estimates, and expectations, which are inherently uncertain. Factors that could influence future results include global and domestic market and business conditions, the successful execution of business and growth strategies, the favorability of the private markets fundraising environment, successful integration of acquired businesses, and regulatory factors relevant to the business, as well as assumptions relating to operations, financial results, financial condition, business prospects, growth strategy, and liquidity.

Industry Context

StockSavvy.ai notes that StepStone Group's strong growth in AUM, AUA, and fee-earning capital, particularly across private equity, infrastructure, private debt, and real estate, reflects a robust demand for private markets investment solutions. The significant increase in performance fees and adjusted net income suggests effective capital deployment and realization strategies within a competitive alternative asset management landscape, potentially outperforming peers reliant solely on traditional asset classes.

Stakeholder Impact

• Shareholders: Positive impact due to the increased dividend and strong growth in AUM and profitability metrics, potentially leading to increased share value.
• Clients: Continued growth in AUM and AUA suggests strong client relationships and successful investment solutions.
• Employees: Performance fee-related compensation is a significant expense, indicating a robust incentive structure tied to performance.

Next Steps

• Management will host a webcast and conference call on February 5, 2026, at 5:00 pm ET to discuss the results.
• A replay of the webcast will be available on the Shareholders section of the Company's website approximately two hours after the conclusion of the event.
• The declared quarterly cash dividend of $0.28 per share of Class A common stock is payable on March 13, 2026.

Key Dates

Recommendation

The company demonstrated exceptional growth across all key business drivers, including AUM, AUA, and fee-earning capital, indicating strong market penetration and client demand in private markets. The substantial increase in total revenues and performance fees, coupled with a significant narrowing of the GAAP net loss and a raised quarterly dividend, signals robust operational performance and a commitment to shareholder returns. The positive trends in Adjusted Net Income and Fee-Related Earnings further underscore the underlying profitability and efficiency of the business model, making it an attractive investment.

Keywords

private markets, investment firm, asset management, AUM, AUA, fee-earning AUM, private equity, infrastructure, private debt, real estate, financial results, dividend, SEC filing, 8-K, StepStone Group