StepStone Group Inc. (NASDAQ: STEP) Q4 2025 Earnings Call | 05/23/2025

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StepStone Group Inc. (NASDAQ: STEP) reported its Q4 and full-year fiscal 2025 results on May 23, 2025, highlighting robust growth in fee-related earnings and assets under management despite a sharp decline in GAAP net income. For the quarter ended March 31, 2025, total revenues rose to $377.7 million, up 5.9% year-over-year, with management and advisory fees increasing 39% to $213.4 million. Fee-related earnings (FRE) soared 85% to $94.1 million, supported by retroactive fees of $15.7 million, and the FRE margin reached 44% for the period. Adjusted net income for the quarter was $80.6 million, or $0.68 per share, up from $37.7 million, or $0.33 per share, in the prior year. However, GAAP net income dropped to $13.2 million, or $(0.24) per share, compared to $82.5 million, or $0.48 per share, a year ago, reflecting higher compensation costs and market-driven adjustments. For the full fiscal year, total revenue surged 65% to $1.18 billion, and assets under management (AUM) grew 21% to $189.4 billion, with fee-earning AUM (FEAUM) up 29% to $121.4 billion. Assets under advisement (AUA) remained stable at $519.7 billion. Operationally, StepStone achieved $9.9 billion in gross inflows for the quarter, pushing FEAUM up by $7.2 billion sequentially. The company declared a base quarterly dividend of $0.24 per share and a supplemental dividend of $0.40 per share, for a total annual dividend payout of $1.36 per share, up from $0.99 last year. The board also reaffirmed its commitment to returning capital to shareholders. Management emphasized continued strong client demand for private markets solutions, with a focus on expanding across private equity, infrastructure, private debt, and real estate. The firm remains optimistic about its fundraising pipeline, especially in private wealth and commingled funds, and expects ongoing growth in AUM and FEAUM, despite increased competition and market volatility. Outlook: Management expects continued AUM and FEAUM growth driven by strong fundraising and client demand. Focus remains on expanding private wealth offerings, scaling commingled funds, and maintaining high FRE margins. Scenario planning and operational discipline will be key as the firm navigates a volatile capital markets environment. About Inside Ticker: For more expert analysis and real-time updates on StepStone Group Inc. (NASDAQ: STEP) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #StepStone #STEP #EarningsCall #Q42025 #PrivateMarkets #AUM #FeeEarnings #Dividends #FinancialResults #StockMarket #InsideTicker