StepStone Group (STEP) reported a strong QQ2 2025 despite a generally slower realizations environment in private markets. GAAP net income of $53.1 million and adjusted earnings per share of $0.45 signaling solid profitability alongside a record level of fee-related earnings (FRE) of $72.3 million, representing a 65% year-over-year increase and a FRE margin of 39%. Excluding retroactive fees, core FRE margins were 34%, marking the best quarterly/core margin levels across recent periods. The quarter underscored durable growth in fee-earning AUM, with fee-earning assets rising by $4.0 billion sequentially to $134 billion and undeployed fee-earning capital (UFEC) near $30 billion. The company continues to leverage scale across its asset classes, particularly private wealth, private equity secondaries, and evergreen funds, to drive operating leverage and margin expansion even as it deploys capital over multi-year horizons.