# StepStone Group Inc. (STEP) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/STEP/thesis · /stocks/STEP/memo

## Financial Snapshot

---
source: coverage-next-full | ticker: STEP | step: "04" | created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Summary Financials (FY2021–FY2025)

*Note: STEP fiscal year ends March 31. All figures in USD millions except per-share data.*
*FY2025 = April 1, 2024 – March 31, 2025. All figures based on available public disclosures and analyst consensus.*

##### Income Statement Summary

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025E |
|--------|--------|--------|--------|--------|---------|
| Management & advisory fees | $232M | $305M | $367M | ~$410M | ~$460M |
| Performance fees (gross) | $113M | $359M | $140M | ~$100M | ~$130M |
| **Total Revenue (GAAP approx.)** | ~$345M | ~$664M | ~$507M | ~$510M | ~$590M |
| Fee-Related Earnings (FRE) | ~$85M | ~$120M | ~$145M | ~$160M | ~$185M |
| FRE margin | ~37% | ~39% | ~40% | ~39% | ~40% |
| Net realized carry (after comp) | ~$40M | ~$130M | ~$50M | ~$35M | ~$55M |
| Distributable Earnings (DE) | ~$125M | ~$250M | ~$195M | ~$195M | ~$240M |
| DE per share (diluted) | ~$1.15 | ~$2.20 | ~$1.70 | ~$1.70 | ~$2.05 |
| FRE per share (diluted) | ~$0.78 | ~$1.05 | ~$1.26 | ~$1.40 | ~$1.60 |

*All per-share figures use diluted shares (~108-115M fully diluted including LP units).*

##### AUM Metrics

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025E |
|--------|--------|--------|--------|--------|---------|
| Total AUM ($B) | ~$262B | ~$448B | ~$570B | ~$675B | ~$750B+ |
| FPAUM ($B) | ~$67B | ~$82B | ~$94B | ~$100B+ | ~$115B+ |
| AUM YoY growth | NA | ~71% | ~27% | ~18% | ~11% |
| FPAUM YoY growth | NA | ~22% | ~15% | ~7-8% | ~12-15% |

*Note: FY2022 AUM jump includes Greenspring Associates acquisition (closed October 2021, added ~$15B+ FPAUM and significant advisory AUM).*

##### Balance Sheet (March 31, 2024)

| Item | Amount |
|------|--------|
| Cash and equivalents | ~$115M |
| GP/fund investments (co-invest) | ~$250-300M |
| Total assets | ~$1.8-2.0B |
| Long-term debt | ~$265M (revolving credit + term loan) |
| Tax receivable agreement (TRA) liability | ~$360M |
| Total equity (book) | ~$500-600M |
| Shares outstanding (Class A + B, economic) | ~110-115M fully diluted |

*TRA is a significant non-operating liability — STEP owes legacy partners 85% of tax savings from basis step-ups when LP units are exchanged. Not a cash drain today but impacts future cash flows.*

##### Per-Share Economics

| Metric | FY2022 | FY2023 | FY2024 | FY2025E |
|--------|--------|--------|--------|---------|
| FRE/share | ~$1.05 | ~$1.26 | ~$1.40 | ~$1.60 |
| DE/share | ~$2.20 | ~$1.70 | ~$1.70 | ~$2.05 |
| Dividends/share (annualized) | ~$0.72 | ~$0.80 | ~$0.84 | ~$0.84 |
| Payout ratio (DE) | ~33% | ~47% | ~50% | ~41% |

#### Valuation Context

*As of approximately late May 2026; share price ~$45-55 range (note: actual current price needed for precise ratio).*

| Metric | Value | Notes |
|--------|-------|-------|
| Market cap | ~$5.5-6.0B | ~110-115M fully diluted shares |
| P/FRE multiple | ~28-35x | On FY2025E FRE |
| P/DE multiple | ~22-28x | On FY2025E DE |
| EV/FPAUM | ~5-6% | Typical for advisory/gatekeeper models |
| Dividend yield | ~1.5-2.0% | On trailing $0.84 annualized |

**Valuation note:** Gatekeeper/advisory asset managers typically trade at discounts to pure-play alternative GPs (like BX, ARES) because: (a) lower carry optionality, (b) advisory AUM is lower-margin, (c) less operating leverage in the model. STEP is often compared to Hamilton Lane (HLNE), which trades at similar or slight premium multiples.

#### Key Financial Trends

##### Revenue Quality
- **Management/advisory fee growth:** Steady organic grower; FPAUM compounds at ~12-15% annually in normal markets
- **Performance fee volatility:** FY2022 was elevated (strong PE/VC exit environment); FY2023-2024 saw compressed carry realizations (deal activity slowdown, valuation pressure)
- **FRE growth:** More predictable; growing in-line with FPAUM + modest margin expansion

##### Margin Trajectory
- FRE margin has expanded from ~36% in FY2021 to ~40% in FY2023-2024
- Operating leverage exists as FPAUM scales over existing infrastructure
- Private wealth ramp adds revenue at potentially higher incremental margins once platform buildout costs are sunk

##### Cash Generation
- Strong free cash flow (FRE-based, excluding carry): ~$140-165M annually
- Carry adds variability: FY2022 was exceptional ($250M+ DE); normalized DE is likely $180-220M range
- Well-covered dividend: $0.21/quarter ($0.84/year) is comfortably covered by FRE alone

#### GAAP vs. Non-GAAP Reconciliation Note

STEP's GAAP financials can be confusing because:
1. **Consolidated fund accounting:** STEP consolidates certain investment vehicles, inflating both assets and liabilities/revenue on the GAAP balance sheet and income statement
2. **Non-cash carried interest:** GAAP records accrued but unrealized carry as revenue; non-GAAP (FRE/DE) only includes realized carry
3. **Stock-based compensation:** High SBC charges depress GAAP net income; FRE/DE add these back
4. **TRA remeasurement:** Non-cash charges from TRA revaluation run through GAAP income

**Analyst focus:** Street analyzes STEP primarily on FRE/share and DE/share, not GAAP EPS. GAAP net income is typically much lower and more volatile than DE.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/STEP/fundamental

## Navigation

- Overview: /stocks/STEP
- Financials (this page): /stocks/STEP/financials
- Thesis: /stocks/STEP/thesis
- Investment Memo: /stocks/STEP/memo
- Coverage universe: /stocks