StepStone Group Inc
STEP
$62.85 0.71%
Exchange: NASDAQ | Sector: Financial Services | Industry: Asset Management
Q1 2025
Published: Aug 8, 2024

Earnings Highlights

  • Revenue of $186.40M up 4.7% year-over-year
  • EPS of $0.20 decreased by 41.2% from previous year
  • Gross margin of 57.6%
  • Net income of 13.33M
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STEP
Company STEP

Executive Summary

StepStone Group reported a solid opening quarter for 2025 (Q1 2025) with revenue of $186.4 million and a robust gross margin of 57.6%, underscored by an EBITDA margin of approximately 37.3% and an operating margin of 25.3%. Net income was $13.3 million, or $0.20 per diluted share, reflecting a period of strong cash generation amid seasonally softer quarterly activity. Operating cash flow totaled $50.2 million and free cash flow was approximately $49.6 million, supporting a continued focus on liquidity management and potential capital deployment. However, the quarter also highlights seasonality in quarterly revenue, with revenue dropping 47.8% quarter-over-quarter (QoQ) after a high prior quarter, while year-over-year (YoY) revenue rose about 4.7%. The balance sheet remains healthy with total assets of $3.83 billion, a cash balance of $196.2 million, and modest leverage (total debt to capitalization ~44%). Intangible assets and goodwill stand at roughly $875.2 million, signaling ongoing platform investments but also potential impairment risk if market conditions deteriorate. Valuation multiples are notably premium (P/E ~57x, P/B ~8.3x, EV/Revenue ~4.5x), consistent with the growth expectations embedded in a fee-based asset manager with strong cash generation. The results reinforce a defensible earnings base but require monitoring of AUM growth, fundraising cadence, and realized carry for sustained earnings expansion.

Key Performance Indicators

Revenue
Increasing
186.40M
QoQ: -47.76% | YoY: 4.71%
Gross Profit
Increasing
107.34M
57.59% margin
QoQ: -31.13% | YoY: 8.90%
Operating Income
Decreasing
47.15M
QoQ: -52.12% | YoY: -17.01%
Net Income
Decreasing
13.33M
QoQ: -56.76% | YoY: -37.34%
EPS
Decreasing
0.20
QoQ: -58.33% | YoY: -41.18%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 366.30 -0.49 +96.5% View
Q4 2025 0.00 -0.24 +0.0% View
Q3 2025 339.02 -2.61 +2.0% View
Q2 2025 271.68 0.26 +41.9% View
Q1 2025 186.40 0.20 +4.7% View