StepStone Group delivered results that surpassed Wall Street’s expectations this quarter, supported by a surge in private market fundraising and robust fee-related earnings. Management attributed the strong performance to balanced contributions across separate accounts, commingled funds, and evergreen offerings, as well as durable investment performance. CEO Scott Hart highlighted that the company’s scale and breadth across asset classes positioned StepStone to capture opportunities despite ongoing headwinds in private markets. The quarter also benefited from retroactive fees and a favorable mix shift toward higher-fee products.
Is now the time to buy STEP? Find out in our full research report (it’s free for active Edge members).
StepStone Group (STEP) Q3 CY2026 highlights:
- Revenue $362.7 million vs S&P analyst consensus of $331.4 million (28.5% year-on-year growth, 9.4% beat)
- Adjusted EPS $0.66 vs S&P analyst consensus of $0.55 (19.1% beat)
- Operating margin -39.8%, up from -256% in the same quarter last year
- Market capitalization $3.91 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from StepStone Group’s Q3 earnings call
- Mike Brown (UBS) asked about future private wealth growth and defined contribution penetration; President Jason Ment said expansion will come from both new partners and deepening relationships, and current products can address regulatory hurdles.
- Ken Worthington (JPMorgan) questioned the sustainability of margin levels; CFO David Park cautioned against assuming the current margin as a run rate, citing higher hiring and seasonal expenses but projected overall improvement versus last year.
- Ben Budish (Barclays) inquired about future margin trends and the impact of the private wealth platform buy-in; Park indicated sequential improvement is likely, especially post buy-in, but specifics depend on future business mix and expenses.
- Brennan Hawken (BMO) asked how StepStone plans to deepen penetration among distribution partners; Ment emphasized education, value-added tools, and ongoing support to drive more partners to offer multiple products.
- Michael Cyprys (Morgan Stanley) pressed for detail on insurance, retirement, and data initiatives; Ment and Head of Strategy Mike McCabe described ongoing product tailoring and data partnerships, emphasizing long-term revenue potential but noting a gradual build.
Catalysts in upcoming quarters
In the coming quarters, our analysts will be watching (1) the pace of fundraising and deployment in new and existing asset classes, (2) the adoption and growth of StepStone’s private wealth and retirement solutions, and (3) the effectiveness of technology and data partnerships in driving new revenue streams. The ability to manage liquidity constraints and sustain fee-related margin improvements will also be key performance markers.
StepStone Group currently trades at $47.48, up from $42.81 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free).
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