StepStone Q1 FY2027: GAAP Loss Widens to $170M, but Adjusted Net Income Rises 24% to $60M

summarizeSummary

StepStone Group posted a Q1 FY2027 GAAP net loss of $170 million, yet adjusted net income rose 24% to $60 million as management fees surged 27% and AUM hit $245 billion.

check_boxKey Events · Earnings and Guidance · STEP

• GAAP Loss vs. Adjusted Profit

  A GAAP net loss of $170.4 million ($1.41/share) was fueled by $317 million in non-cash equity compensation. Meanwhile, adjusted net income rose 24% year over year to $60.3 million ($0.48/share).

• Fee Revenue Growth Accelerates

  Management and advisory fees, net, jumped 27% year over year to $269 million, pushing fee-related earnings to $105.6 million with a 39% margin.

• AUM and FEAUM Hit Records

  Assets under management grew 23% year over year to $245.4 billion, and fee-earning AUM rose 21% to $153.6 billion, driven by strong contributions to focused commingled funds.

• Dividend Boost

  The board declared a quarterly dividend of $0.33 per share plus a supplemental dividend of $0.55 per share, totaling $0.88 per share, payable September 15, 2026.

auto_awesomeAnalysis · STEP · Finance

StepStone's first-quarter results reveal a sharp divide between GAAP and adjusted metrics. A $317 million non-cash equity compensation charge—echoing the prior fiscal year's $1.74 billion hit—drove the GAAP net loss to $170 million, or $1.41 per share. Beneath that headline, however, the underlying business is strengthening: adjusted net income climbed 24% to $60 million, fee-related earnings reached $106 million with a 39% margin, and assets under management expanded 23% to $245 billion. Confidence in cash generation was underscored by a combined $0.88 per share in declared dividends. While the GAAP loss may unsettle some investors, the core fee-generating engine is clearly accelerating.