StepStone Group (STEP) has wrapped up FY 2026 with Q4 total revenue of about US$588.6 million and a basic EPS loss of US$0.10, alongside trailing twelve month revenue of roughly US$2.0 billion and a cumulative EPS loss of US$6.78. Over recent quarters the company has seen revenue move from US$377.7 million and EPS loss of US$0.24 in Q4 FY 2025 to US$364.3 million and EPS loss of US$0.49 in Q1 FY 2026, US$454.2 million and EPS loss of US$4.66 in Q2, and US$586.5 million and EPS loss of US$1.55 in Q3, presenting a picture where top line scale contrasts with pressure on margins and cash funded rewards.

See our full analysis for StepStone Group.

With the headline numbers on the table, the next step is to see how this mix of strong revenue scale and ongoing losses aligns with the most widely held narratives about StepStone Group and its long term outlook.

AUM climbs to US$144.0b on US$24.1b inflows

• Across FY 2026, assets under management moved from US$121.4b at the start of the year to US$144.0b at year end, supported by US$24.1b of net inflows, which sits on top of trailing twelve month revenue of US$2.0b and a net loss of US$535.8 million.
• What stands out for a more cautious, bearish view is that this larger AUM base has not translated into profitability, as each quarter still showed a loss, including US$7.8 million in Q4 and a cumulative loss of US$535.8 million over the trailing twelve months, so bears point to scale without earnings support.

Losses deepen with US$6.78 TTM EPS shortfall

• On a trailing basis, basic EPS shows a shortfall of US$6.78 per share and net income over the same period came in as a loss of US$535.8 million, while quarterly losses ranged from US$7.8 million in Q4 FY 2026 to US$366.1 million in Q2.
• Bears argue that the growing loss profile is a core risk, and the numbers here heavily support that view, as losses over the past five years have grown at an average rate of 76.6% per year and Q2 FY 2026 alone recorded a US$366.1 million loss against US$454.2 million of revenue. This means that even with US$1.99b of trailing twelve month revenue the company is still a long way from covering its costs.
• Critics also highlight that trailing twelve month revenue is expected in the dataset to decline around 6.4% per year over the next three years, while the trailing dividend yield of 2.78% is not covered by earnings or free cash flow, so the current payout sits on top of a loss making base.
• For readers looking at valuation, the stock trades on a P/S of 2.2x compared with 2.8x for peers and 3.4x for the wider US Capital Markets industry. That lower multiple is set against these weaker earnings trends rather than against a clear path back to profits.

P/S at 2.2x against peers' 2.8x and industry 3.4x

• The current P/S of 2.2x sits below the peer average of 2.8x and the broader US Capital Markets industry at 3.4x, while the share price of US$54.74 reflects this discount despite the company generating US$2.0b of trailing twelve month revenue.
• Supporters who focus on valuation multiples see this below peer P/S as a potential positive, yet the figures create a mixed picture. The stock combines that lower multiple with a trailing twelve month EPS loss of US$6.78 and a dividend yield of 2.78% that is not covered by earnings or free cash flow, so anyone leaning on the apparent discount still needs to weigh it against the absence of profitability in the recent data.
• What is most challenging for a bullish angle is that the dataset points to an expected 6.4% per year revenue decline over the next three years on a trailing basis, even as AUM ended FY 2026 at US$144.0b. This means the current P/S discount is not clearly tied to improving sales.
• At the same time, the P/S gap to peers suggests the market is already assigning a lower value to each dollar of StepStone Group's revenue, so readers who are comfortable with this risk profile may use these numbers as a starting point for deeper work on cash flows and earnings quality.

To understand how these earnings figures line up with longer term stories about growth, risk, and valuation, it is worth seeing how other investors are framing the company in community discussions Curious how numbers become stories that shape markets? Explore Community Narratives.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on StepStone Group's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

After all this, are you leaning bullish or cautious on StepStone Group, or still undecided and keen to act before sentiment shifts again? Take a closer look at the data for yourself and weigh what matters most to you, including the 2 important warning signs.

See What Else Is Out There

StepStone Group combines US$2.0b of trailing twelve month revenue with a US$535.8 million loss, a US$6.78 EPS shortfall and an uncovered 2.78% dividend yield.

If you are uneasy about a dividend that sits on top of ongoing losses, shift your attention to 10 dividend fortresses and focus on payouts backed by stronger fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.