StepStone added clients and managed more money over the three months ended June 30. It also reported a $115.8 million net loss and sent operating cash flow from a $46.3 million inflow in the comparable period to a $457.5 million outflow.
That is the uncomfortable pairing in this 10-Q: the operating engine is producing growth, while the reported economics and cash line moved sharply in the other direction. Revenue rose 4.0% to $378.9 million, not enough to offset the charges that shaped the period.
Management points first to activity on the platform and the mix of products being sold:
"The increase was driven by new client activity resulting in 20% growth in average FEAUM across the platform and a higher average fee rate driven by a mix shift towards commingled funds."
StepStone Group, 10-Q, 2026-08-07
Average fee-earning assets under management, or FEAUM, grew faster than revenue. StepStone also said adjusted net income increased 24% to $60.3 million, helped by higher fee-related earnings, performance fee-related earnings, and adjusted realized investment income. The filing therefore shows operating measures improving alongside the reported loss.
The loss line was shaped by a much larger compensation charge tied to ownership interests and equity awards:
"The increase was primarily attributable to a $126.1 million increase in expenses for liability classified awards related to the profits interest issued in SPW in the current year period as compared to the prior year period, a $1.1 million increase for restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”) granted in the current year period with no comparable expense for these grants in the prior year period, and an increase of $1.1 million for the acceleration of RSU expense in the current year period with no comparable expense in the prior year period."
StepStone Group, 10-Q, 2026-08-07
Reported stock compensation rose 61.2% to $292.8 million. Diluted shares also increased 5.3% to 82.0 million. Net margin fell to negative 30.6% from negative 10.5% in the comparable three months.
Cash adds a separate question. Capital spending fell to $549,000, or about 0.1% of revenue, but operating cash flow still plunged into negative territory. StepStone does not disclose a single cause for that cash-flow swing in the supplied filing receipts, so the $126.1 million awards increase explains the reported loss more clearly than it explains the cash movement.
The annual record supplies some scale. Revenue reached $2.0 billion in the year ended March 31, up 69.7%, while net margin was negative 26.9% and diluted shares rose 11.1%. Growth has been substantial, but so has the distance between expanding activity and what reaches the bottom line.
StepStone's next quarterly report will clarify whether the liability-classified awards expense, operating cash flow, and diluted share count are still moving together at anything like this period's levels.
The tension is plain: StepStone is growing the platform while the three-month filing shows a larger loss and a much weaker cash line.
StepStone's 2026-08-07 10-Q reports higher average FEAUM and fee-related earnings alongside a $115.8 million net loss and negative operating cash flow.