Revenue surged 69.7% year-over-year to $378.9M in 2027Q1, but GAAP net income remained negative at -$115.8M, with a 154.1% efficiency ratio and cumulative losses of $1.1B over the past year indicating persistent profitability challenges.
StepStone Group Inc. (STEP) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 |
|---|
| Net Interest Income | -15.74M | -6.67M | -1.85M | -5.67M | -2.27M | -776K | -6.95M | -8.78M | -8.75M | -770K |
| NII Growth % | -4542.86% | -260.29% | 67.34% | -149.87% | -192.27% | 88.83% | 20.83% | -0.24% | -1036.88% | - |
| Net Interest Margin % | -0.17% | -0.1% | -0.04% | -0.15% | -0.06% | -0.02% | -0.53% | -1.29% | -1.78% | -0.17% |
| Interest Income | 21.65M | 11.83M | 10.85M | 3.66M | 1.92M | 337K | 413K | 1.44M | 1.51M | 143K |
| Interest Expense | 37.4M | 18.5M | 12.7M | 9.33M | 4.19M | 1.11M | 7.36M | 10.21M | 10.26M | 913K |
| Loan Loss Provision | 859.52M | 958.46M | 1.25B | 320.86M | -243.37M | 787.59M | 395.8M | 230.18M | 129.56M | 145.78M |
| Non-Interest Income | 2.31B | 1.98B | 1.16B | 707.97M | -69.5M | 1.37B | 787.3M | 445.18M | 254.76M | 264.13M |
| Non-Interest Income % | 100.69% | 100.34% | 100.16% | 100.81% | 96.84% | 100.06% | 100.89% | 102.01% | 103.56% | 100.29% |
| Total Net Revenue | 2.29B | 1.98B | 1.16B | 702.3M | -71.76M | 1.36B | 780.36M | 436.4M | 246.01M | 263.36M |
| Revenue Growth % | 50.63% | 69.96% | 65.47% | 1078.64% | -105.26% | 74.84% | 78.82% | 77.39% | -6.59% | - |
| Non-Interest Expense | 2.02B | 2.04B | 161.25M | 209.67M | 172.1M | 124.46M | 56.38M | 54.28M | 50.03M | 36.04M |
| Efficiency Ratio | 88.27% | 103.29% | 13.88% | 29.86% | -239.82% | 9.12% | 7.23% | 12.44% | 20.34% | 13.68% |
| Operating Income | -590.82M | -1.02B | -250.72M | 171.77M | -497K | 452.36M | 328.17M | 151.94M | 66.42M | 81.55M |
| Operating Margin % | -25.8% | -51.81% | -21.57% | 24.46% | 0.69% | 33.15% | 42.05% | 34.82% | 27% | 30.96% |
| Operating Income Growth % | - | -308.17% | -245.96% | 34661.57% | -100.11% | 37.84% | 115.98% | 128.76% | -18.55% | - |
| Pretax Income | -347.21M | -891.17M | -222.03M | 195.4M | -41.45M | 512.58M | 337.85M | 148.74M | 61.6M | 85.81M |
| Pretax Margin % | -15.16% | -45.12% | -19.11% | 27.82% | 57.77% | 37.57% | 43.29% | 34.08% | 25.04% | 32.58% |
| Income Tax | -86.49M | -147.89M | -49.21M | 27.58M | 3.82M | 28.3M | 23.26M | 3.96M | 1.64M | 1.99M |
| Effective Tax Rate % | 24.91% | 16.6% | 22.16% | 14.11% | -9.22% | 5.52% | 6.88% | 2.66% | 2.66% | 2.31% |
| Net Income | -318.27M | -521.36M | -179.56M | 58.09M | -18.4M | 193.88M | 62.63M | 0 | 0 | 81.44M |
| Net Margin % | -13.9% | -26.4% | -15.45% | 8.27% | 25.64% | 14.21% | 8.03% | 0% | 0% | 30.92% |
| Net Income Growth % | 48.26% | -190.35% | -409.11% | 415.75% | -109.49% | 209.55% | - | - | -100% | - |
| Net Income (Continuing) | -260.73M | -743.28M | -172.83M | 167.82M | -45.27M | 484.28M | 314.59M | 144.78M | 59.96M | 83.82M |
| EPS (Diluted) | -3.87 | -6.70 | -2.52 | 0.91 | -0.30 | 3.84 | 2.06 | 4.51 | 2.25 | 3.06 |
| EPS Growth % | 50.91% | -165.87% | -376.92% | 403.33% | -107.81% | 86.41% | -54.32% | 100.44% | -26.47% | - |
| EPS (Basic) | - | -6.80 | -2.52 | 0.92 | -0.30 | 3.89 | 2.11 | 4.51 | 2.25 | 3.06 |
| Diluted Shares Outstanding | 82.29M | 80.3M | 71.14M | 66.54M | 61.88M | 53.6M | 33.27M | 26.61M | 29.24M | 29.24M |
Quick answers to the most common questions about buying STEP stock.
For fiscal year 2026, StepStone Group Inc. (STEP) reported total revenue of $1.98B. This represents a 650.0% increase compared to $263.4M in 2018.
StepStone Group Inc. (STEP) reported a net loss of $521.4M for the fiscal year ending 2026.
StepStone Group Inc. (STEP) reported an operating income of $-1023.4M, resulting in an operating profit margin of -51.8%. This margin reflects the operational efficiency of the business before interest and taxes.
StepStone Group Inc. (STEP) generated $1.02B in gross profit for the year, representing a gross profit margin of 51.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Performance fee volatility and GAAP losses
Metrics are mathematically derived from official filings.
Fee Income Drives Revenue Surge
StepStone's revenue surged 69.7% year-over-year to $378.9M in 2027Q1, driven almost entirely by non-interest income, which comprised 96.5% of total revenue, according to the latest quarterly report.
Net interest income is negligible, averaging near zero or negative across the period, confirming that StepStone operates as a fee-based asset manager rather than a traditional lender. The explosive growth in non-interest income, from $184.3M in 2025Q1 to $365.7M in 2027Q1, suggests a significant acceleration in performance-related fees or scaling of managed solutions. However, the sequential decline from $588.6M in 2026Q4 to $378.9M in 2027Q1 indicates that revenue is highly volatile and may be peaking, warranting close monitoring of fee sustainability.
GAAP Margins Distorted by Non-Cash Charges
StepStone's operating margin fell to -51.3% in 2027Q1, a sharp deterioration from positive margins in early 2025, reflecting heavy non-cash compensation and performance fee accrual timing, as reported in financial statements.
The negative operating margin, despite robust revenue growth, suggests that compensation costs, including stock-based incentives and carried interest participation, are outpacing fee generation. The efficiency ratio spiked to 154.1% in 2027Q1, versus 61.0% in 2026Q4, indicating that expenses are growing faster than revenue on a GAAP basis. This may imply that the firm is investing heavily in talent and infrastructure, but investors should monitor whether these costs translate into sustained fee-related earnings growth or simply erode shareholder value.
Provision Reversals Mask Underlying Losses
StepStone reported a provision benefit of $4.3M in 2027Q1, but cumulative provisions over the past year totaled $1.2B, indicating significant credit-related charges that have pressured net income, based on reported figures.
The provision line, which is atypical for an asset manager, likely reflects impairments or valuation adjustments on investments held on the balance sheet. The large provisions in 2025Q3 ($652.4M) and 2025Q4 ($337.7M) contributed to substantial net losses, suggesting that underlying portfolio performance has been weak. The recent reversal in 2027Q1 may indicate a recovery in valuations, but the volatility in this line item underscores the risk of further write-downs, which could continue to weigh on profitability.
Performance Fees Create Earnings Volatility
Non-interest income, which includes performance-related fees, accounted for over 99% of revenue in most quarters, with a 69.7% year-over-year increase in 2027Q1, according to the latest income statement.
The heavy reliance on performance fees, which are often unrealized and subject to clawback, makes StepStone's earnings highly sensitive to private market valuations and exit activity. While the revenue growth is impressive, the sequential decline from 2026Q4 suggests that performance fee accruals may be slowing, potentially reflecting a cooling in private market conditions. Investors should focus on fee-related earnings (FRE) to gauge the stability of the business, as the current revenue mix appears to be cyclical and unpredictable.
2026Q2 Marks Profitability Trough
StepStone's net loss widened to -$366.1M in 2026Q2, the deepest quarterly loss in the period, with an operating margin of -159.1%, based on reported financial data.
The 2026Q2 quarter appears to be a critical inflection point, as it represents the peak of operating losses and likely reflects a combination of high compensation costs, provisions, and possibly acquisition-related charges. The subsequent quarters show a gradual improvement in net income, from -$366.1M to -$115.8M in 2027Q1, suggesting that cost controls or revenue growth are beginning to take effect. However, the path to sustained profitability remains uncertain, and the Q1 EPS miss of $0.48 versus $0.58 estimate indicates that consensus expectations may still be too optimistic.
Earnings Quality Questioned by Non-Cash Items
Despite a 69.7% revenue surge, StepStone's GAAP net income remains negative, with cumulative losses of $1.1B over the past year, raising concerns about earnings quality, as per financial statements.
The persistent GAAP losses, despite strong revenue growth, suggest that a significant portion of reported revenue may be non-cash or subject to reversal, such as unrealized performance fees. The negative ROE of -39.2% and the reliance on stock-based compensation indicate that reported earnings may not reflect the firm's cash-generative capacity. Investors should challenge the sustainability of the revenue growth, as it may be driven by mark-to-market gains that could reverse in a downturn, and monitor the firm's ability to convert revenue into actual cash profits.