StepStone Group (STEP)
NASDAQFinancialsAsset ManagementSnapshot 2026-09-04
$50.92+0.02%
Close 2026-09-04 · 1-day change
NASDAQFinancialsAsset ManagementSnapshot 2026-09-04
Broken: Primary pillar broken — Improve cash from operations toward positive: OCF -$457.5M vs -$23.2M target.
StepStone aims for $0.65 EPS in fiscal 2026, up from $0.40. Cash from operations improved from -$66.5M to -$23.2M, showing progress. The company completed strategic acquisitions to boost growth. Insider buying signals confidence in future earnings.
StepStone is still loss-making with negative cash flow. Revenue is expected to decline about 7%. The recent selloff and soft guidance show risks. Achieving EPS targets remains uncertain.
The price is about 7% above our fair value near $40, reflecting stretched expectations. Analysts expect about -7% revenue growth, which aligns with our cautious view but is worse than management's EPS target.
Breaks if: Cash from operations remains below -$30M in FY26-Q4
Breaks if: EPS falls below $0.50 in FY26
Breaks if: Failure to complete key acquisitions by mid-2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story in the financial sector. The current thesis state is cautious, as STEP is navigating through a period of losses while trying to stabilize its earnings and capitalize on sector momentum.
The market seems to have priced in a significant expectations gap, indicating that investors are aware of the company's recent struggles. Valuation appears unjustified compared to peers, as STEP trades at a premium despite its loss-making status.
Management has shown stability and is focused on growing assets under management, which has seen some success. However, recent financial performance has been weak, with earnings below expectations, and the risk of further misses remains elevated.
The future of STEP largely depends on guidance updates from management and the performance of sector bellwethers like BLK, BX, and KKR. Positive momentum in the financial sector could support STEP, while any negative shifts could further impact its performance.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The latest earnings miss has negatively impacted the outlook. Recent financial performance remains weak, sitting well below its industry peers. The market backdrop has also shifted, with a recent decline in the broader market.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Over the next 1 to 3 years, STEP's outlook will be influenced by its ability to improve earnings and navigate sector dynamics. Not investment advice.