StepStone Q1 FY2027: GAAP Loss Widens to $170M, but Adjusted Net Income Rises 24% to $60M
STEP sits 21% above its 52-week low of $38.85.
Summary
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.
Updates
· Reuters — Revenue rose 4% year over year to $378.89 million. The quarterly dividend was raised to $0.33 per share from $0.28.
Key Events · Earnings and Guidance · STEP
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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).
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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.
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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.
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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.
Analysis · 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.
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At the time of this filing, STEP was trading at $46.93 on NASDAQ in the Finance sector, with a market capitalization of approximately $6.1B. The 52-week trading range was $38.85 to $77.80. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.