Private markets investment firm StepStone Group (NASDAQ: STEP) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 118% year on year to $454.2 million. Its non-GAAP profit of $0.54 per share was 10.6% above analysts’ consensus estimates.

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Company Overview

Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, StepStone Group grew its revenue at an incredible 31.4% compounded annual growth rate. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. StepStone Group’s annualized revenue growth of 42.8% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, StepStone Group reported magnificent year-on-year revenue growth of 118%, and its $454.2 million of revenue beat Wall Street’s estimates by 71.1%.

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Key Takeaways from StepStone Group’s Q3 Results

We were impressed by how significantly StepStone Group blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $62.24 immediately after reporting.

StepStone Group may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.