UNITED STATES SECURITIES AND EXCHANGE COMMISSION STEPSTONE GROUP INC. (Exact name of Registrant as specified in its charter) Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ___________________________ Commission file number 001-39510 (S ...

STEPSTONE GROUP REPORTS THIRD QUARTER FISCAL YEAR 2026 RESULTS NEW YORK, February 5, 2026 – StepStone Group Inc. (Nasdaq: STEP), a global private markets investment firm focused on providing customized investment solutions and advisory and data services, today reported results for the quarter ended December 31, 2025. This represents results for the third quarter of the fiscal year ending March 31, 2026. The Board of Directors of the Company has declared a quarterly cash dividend of $0.28 per share of Class ...

Core Insights - StepStone Group Inc. reported its third quarter results for the fiscal year ending March 31, 2026, highlighting significant growth in revenues and performance fees [1][4]. Financial Performance - Total revenues for the quarter ended December 31, 2025, reached $586.5 million, a 73% increase compared to $339.0 million in the same quarter of the previous year [6][17]. - Management and advisory fees for the same period were $239.9 million, up 26% from $190.8 million year-over-year [6][17]. - Total performance fees surged to $346.6 million, a 134% increase from $148.2 million in the prior year [6][17]. - The company reported a net loss of $162.4 million for the quarter, compared to a net loss of $287.2 million in the same quarter of the previous year, indicating a 43% improvement [6][17]. Dividends - The Board of Directors declared a quarterly cash dividend of $0.28 per share of Class A common stock, payable on March 13, 2026, to shareholders of record as of February 27, 2026 [1]. Assets Under Management - As of December 31, 2025, StepStone managed approximately $811 billion in total capital, including $220 billion in assets under management (AUM) [4][6]. Key Business Metrics - Fee-related earnings (FRE) for the quarter were $78.6 million, with a FRE margin of 37% [6][8]. - Adjusted net income (ANI) was reported at $66.7 million, reflecting a 19% increase year-over-year [6][8]. - The company’s weighted-average shares of Class A common stock increased to 79.5 million, an 8% rise compared to the previous year [6][8].

Core Insights - StepStone Real Estate (SRE) has appointed Jennifer Jones as a Partner to launch S-Core, a platform aimed at enhancing SRE's Core/Core+ real estate activities [1][3] - S-Core will be structured as a series of separate accounts, allowing investors to customize their portfolios based on geography, property types, investment structures, and leverage levels [3][4] Company Background - Prior to joining SRE, Jennifer Jones spent nearly two decades at UBS, leading over $20 billion in transactions and serving as Senior Portfolio Manager for its Global Core Plus vehicle [2] - SRE has a strong track record in investing in Core/Core+ funds, secondaries, and co-investments, with over $17 billion allocated globally in 2025 [4][5] Investment Strategy - S-Core will follow StepStone's investment approach, focusing on accessing seasoned assets at discounts and favorable fees, leveraging existing secondaries, co-investment, and fund investment capabilities [4] - The platform aims to address investor demand for Core/Core+ investments, which have shown returns similar to non-core investments over the past 30 years but with significantly less volatility [6][7] Market Position - SRE's connectivity to the market is expected to provide an advantage in information, market intelligence, and transaction sourcing, with a significant portion of investments coming off-market [4] - The firm emphasizes the importance of current cash flow, capital preservation, and inflation hedging as key attributes sought by investors in real estate [7][8]

Core Viewpoint - StepStone Group Inc. will release its financial results for the third quarter of the fiscal year ending March 31, 2026, on February 5, 2026, after market close [1]. Group 1: Earnings Release - The results will cover the quarter ended December 31, 2025 [1]. - A webcast and conference call will be held on the same day at 5:00 pm ET to discuss the results [2]. - The webcast will be accessible on the Shareholders section of the Company's website [2]. Group 2: Participation Details - Participants wishing to join the Q&A portion must register in advance to receive dial-in information and a PIN [3]. - Registration for the call can be completed through a specified link [3]. Group 3: Company Overview - StepStone Group Inc. is a global private markets investment firm with approximately $771 billion in total capital as of September 30, 2025, including $209 billion in assets under management [4]. - The firm serves a diverse clientele, including large pension funds, sovereign wealth funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals [4]. - StepStone focuses on developing customized private markets portfolios across various asset classes, including private equity, infrastructure, private debt, and real estate [4].

Core Insights - StepStone Real Estate (SRE) and Blue Moon Capital Partners have completed a $250 million continuation vehicle to operate five Class A stabilized senior housing communities [1] - The partnership aims to acquire additional high-quality senior housing communities and enhance their existing portfolio [1][2] Company Overview - StepStone Group is a global private markets investment firm managing approximately $771 billion in total capital, with $209 billion in assets under management as of September 30, 2025 [3] - Blue Moon Capital Partners focuses exclusively on senior housing, investing in Independent Living, Assisted Living, and Memory Care sectors [4] Strategic Focus - SRE is committed to building its senior housing exposure by partnering with experienced operators like Blue Moon across the US and Europe [2] - The collaboration emphasizes incorporating technology into operations and advancing workforce culture to maintain market leadership in senior housing [2][3] Growth Potential - Blue Moon aims to capitalize on the expected dramatic growth in resident demand for senior housing over the next two decades [4]

Core Viewpoint - StepStone Group Inc. (STEP) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][5]. Recent Performance and Projections - StepStone Group is projected to earn $1.98 per share for the fiscal year ending March 2026, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.7% over the past three months [8]. - The upgrade to Zacks Rank 2 places StepStone in the top 20% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10].

Core Insights - Pan Global Resources Inc. announced positive results from six step-out drillholes at the La Romana target within its 100%-owned Escacena Project in southern Spain, aimed at extending mineralization for a maiden Mineral Resource Estimate [1][4] Drill Highlights - The La Romana mineralized trend shows excellent continuity over 1.7 km east-west, with higher-grade copper-tin mineralization confirmed to extend down-dip and remain open to the north and northwest [3] - Key drill results include 1.26% copper, 0.01% tin, and 2.3 g/t silver over 6 meters, and 1.01% copper, 0.16% tin, and 4.5 g/t silver over 5 meters [6][8] - Downhole electromagnetics indicate that higher-grade copper mineralization extends and plunges to the northwest a further 125 meters [6][9] Future Plans - Additional step-out drilling is planned for 2026 to further extend the strike of the La Romana mineralized trend [3] - The maiden Mineral Resource Estimate for the Escacena Project is in progress and will be announced upon completion [4] Escacena Project Overview - The Escacena Project has expanded from 5,760 hectares to over 10,000 hectares, with additional mineral rights awarded in September 2025 [11] - The project is strategically located near operating mines and hosts multiple prospective targets, including the La Romana copper-tin-silver deposit and the Cañada Honda copper-gold discovery [11] Company Background - Pan Global Resources is focused on exploring copper-rich mineral deposits, with a favorable outlook for copper as a critical metal for global electrification and energy transition [12] - The company operates in the Iberian Pyrite Belt, a low-risk jurisdiction for mining investment, supported by a favorable permitting track record and excellent infrastructure [13]

Core Viewpoint - STEP Energy Services Ltd. has successfully completed a take-private transaction with ARC Energy Fund 8, resulting in ARC Energy Fund 8 acquiring all outstanding common shares of STEP not already owned by them or related entities for cash consideration of $5.50 per share [1][2]. Group 1: Transaction Details - The acquisition was executed through a plan of arrangement under the Business Corporations Act (Alberta) [1]. - ARC Energy Fund 8 acquired 24,700,000 shares, while the Purchaser acquired 7,958,832 shares, leading to ARC Energy Fund 8 owning 70.44% of all outstanding shares post-transaction [7][8]. - Prior to the transaction, ARC Energy Fund 8 held approximately 36.56% of the outstanding shares, and together with ARC Energy Fund 6, they controlled about 55.20% [6]. Group 2: Regulatory and Compliance - STEP has applied to delist its shares from the Toronto Stock Exchange, with an expected delisting date around December 17, 2025 [3]. - The transaction triggers early warning requirements under National Instrument 62-104 and National Instrument 62-103 [2]. Group 3: Company Background - STEP is an energy services company specializing in coiled tubing, fluid and nitrogen pumping, and hydraulic fracturing solutions, primarily serving the North American market [16][17]. - The company has a strong focus on safety and quality execution, differentiating itself in high-pressure and complex well environments [16][18].

Company Overview - STEP Energy Services Ltd. is an energy services company specializing in coiled tubing, fluid and nitrogen pumping, and hydraulic fracturing solutions [4] - Founded in 2011, STEP has evolved into a North American service provider delivering completion and stimulation services to exploration and production companies in Canada and the U.S. [5] - The company focuses its Canadian services in the Western Canadian Sedimentary Basin and its U.S. services in key regions such as the Permian and Eagle Ford in Texas, and the Bakken in North Dakota [5] Recent Developments - The Court of King's Bench of Alberta has granted final approval for a plan of arrangement involving ARC Energy Fund 8 and STEP, allowing the Purchaser Parties to acquire all outstanding common shares of STEP not already owned by ARC Energy Fund 8 [1] - This final court approval follows shareholder approval obtained at a special meeting on December 12, 2025 [1] - The arrangement is expected to close on December 16, 2025, subject to the satisfaction or waiver of conditions outlined in the definitive arrangement agreement dated October 17, 2025 [2] Core Values and Culture - STEP emphasizes a high-performance, safety-focused culture, with core values of Safety, Trust, Execution, and Possibilities guiding its operations [6] - The company is committed to providing innovative, reliable, and cost-effective solutions to its clients, supported by experienced technical office and field professionals [4]