STEP
The good news: the core machine is working
StepStone Group’s fiscal fourth quarter 2026 sounded a lot like a private markets firm doing private markets things: record fee-related earnings, strong fundraising, and plenty of asset-gathering mojo. For investors, that’s the stuff that actually matters — because fees are the recurring revenue engine that keeps the lights on and the champagne budget intact.
The less-fun part: GAAP got messy
The catch? GAAP results were weighed down by accounting tied to StepStone Private Wealth profits interests. Translation: the headline earnings picture wasn’t as clean as the operating story. That doesn’t automatically mean trouble, but it does mean you should read the fine print before assuming every dollar of strength drops neatly to the bottom line.
Why traders are paying attention
This is the classic “good business, complicated accounting” setup. If you’re a mid-cap trader, the market will likely focus on whether fundraising momentum keeps feeding future fee-related earnings — because in this kind of business, today’s capital raise can turn into tomorrow’s revenue stream.
- Record fee-related earnings: a big thumbs-up for the core model
- Strong fundraising: more dry powder to earn fees on
- GAAP pressure from profits interests accounting: the wrinkle in the story
Big picture: StepStone looks like it’s still winning the slow, steady game — even if the scoreboard needs a footnote.