STEP earnings analysis
What we found in STEP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Reported EPS was $0.48 on revenue of $300.595 million, below the provided consensus estimates of $0.53 and $311.617 million, respectively. The supplied filing excerpt does not include sufficient income-statement, segment, balance-sheet working-capital or cash-flow detail to assess margins, segment trends or free cash flow. Liquidity declined from $213.6 million to $201.7 million, while market sensitivity increased as NAV-based fees reached 27% of total net management and advisory fees; management reported no material changes to previously disclosed risk factors.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Share Repurchases Continued
- The company repurchased 469,897 Class A shares during June 2026 at an average price of $40.89 per share. Approximately $72.077 million remained available under the repurchase program at quarter-end.
- Liquidity Remains Substantial
- Cash, cash equivalents and restricted cash excluding Consolidated Funds were $201.7 million at June 30, 2026, compared with $213.6 million at March 31, 2026.
- Debt Structure Is Disclosed
- Management reported $175.0 million of Notes borrowings and $100.0 million drawn on the Revolver at June 30, 2026. The Notes carry a fixed interest rate of 5.52%.
- Controls Remained Effective
- Disclosure controls and procedures were concluded to be effective as of June 30, 2026, and management reported no changes in internal control that materially affected, or were reasonably likely to materially affect, financial reporting.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising NAV Fee Sensitivity
- NAV-based management fees increased to approximately 27% of total net management and advisory fees for the last twelve months ended June 30, 2026, versus 24% at March 31, 2026. Management estimates that a 10% decline in fund investment values would reduce annual management fees by approximately $25.3 million.
- Market Valuation and Clawback Risk
- A 10% decline in the fair value of fund investments would reduce investment income by an estimated $26.4 million based on holdings at June 30, 2026. The company also had an estimated $452.9 million of carried-interest allocations, net of tax, subject to contingent repayment assuming all investments were valued at zero.
- Variable-Rate Financing Exposure
- The company had $100.0 million outstanding under its variable-rate Revolver in addition to $175.0 million of Notes. Management estimates that a 100-basis-point increase in interest rates would increase annualized interest expense by $2.8 million.
- Financing Market Access Risk
- The company states that financing availability from financial institutions may be uncertain during market events and that it may not be able to access financing markets. This is relevant alongside $100.0 million of Revolver borrowings outstanding at June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.48
What they said about what is next.
No quantitative forward guidance was provided in the supplied 10-Q excerpt. The filing discusses sensitivity to market values, interest rates and liquidity, but does not provide revenue or EPS targets.
The filing reads worse than the one before it.
What came before.
- 10-K · May 27, 2026
- StepStone Group Inc. reported a challenging fiscal year 2026, marked by a total revenue of $1.99 billion, a 70% increase from the previous year, largely attributed to higher performance fees and management fees driven…
- 10-Q · November 6, 2025
- StepStone reported quarterly revenue of $454,225,000 (three months ended September 30, 2025), up from $271,677,000 in the prior-year quarter, driven by a surge in performance fees and higher management and advisory…
- 10-Q · August 7, 2025
- StepStone reported quarterly revenue of $364,287,000 (Q ended June 30, 2025), up sharply from $186,401,000 in the prior-year quarter, driven by higher management fees and a large pickup in performance fees/carried…
- 10-Q · February 6, 2025
- StepStone reported total revenues of $339,023,000 for the quarter ended December 31, 2024, a large YoY swing from $(14,612,000) in the prior-year quarter driven by higher management fees and a positive carried interest…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing STEP makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever