STEPHIGH SIGNALFINANCIAL10-K

StepStone experienced substantial revenue growth while facing significant operational cash flow deterioration and balance sheet stress, with debt increasing 81% and stockholders' equity declining 45%.

The company appears to be in a period of aggressive expansion, substantially growing assets under management from $678B to $709B and meaningfully expanding its workforce from 990 to 1,130 employees. However, the sharp decline in operating cash flow combined with rising debt levels and reduced equity suggests potential strain on financial flexibility during this growth phase.

Comparing 2025-05-23 vs 2024-05-24View on EDGAR →
FINANCIAL ANALYSIS

StepStone delivered substantially higher revenue performance while simultaneously experiencing a notable decline in operating cash flow generation, creating a concerning disconnect between top-line growth and cash conversion. The balance sheet shows signs of increasing leverage with debt rising 81% to $269M and stockholders' equity declining significantly to $179M, while total assets grew more modestly at 21%. The combination of reduced cash position, lower capital expenditures, and deteriorating cash flow metrics suggests the company may be prioritizing growth over near-term financial stability.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
+80.9%
$148.8M→$269.3M

Debt increased 80.9% — substantial leverage increase; assess whether deployed for growth or covering losses.

Capital Expenditure
Cash Flow
-74%
$19.6M→$5.1M

Capex reduced 74% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Revenue
P&L
+65.1%
$711.6M→$1.2B

Strong top-line growth of 65.1% — accelerating demand or successful expansion into new markets.

Operating Cash Flow
Cash Flow
-59.8%
$161.5M→$64.9M

Operating cash flow fell 59.8% — earnings quality concerns; investigate working capital changes and non-cash items.

Total Liabilities
Balance Sheet
+46.8%
$1.9B→$2.8B

Liabilities grew 46.8% — significant increase in debt or obligations, assess impact on financial flexibility.

Stockholders Equity
Balance Sheet
-44.7%
$324.5M→$179.4M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Cash & Equivalents
Balance Sheet
-35.3%
$179.9M→$116.4M

Cash declined 35.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Assets
Balance Sheet
+21.1%
$3.8B→$4.6B

Asset base grew 21.1% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2025-05-23
PRIOR — 2024-05-24
ADDED
As of May 21, 2025, there were 76,761,399 shares of the registrant s Class A common stock and 39,656,954 shares of the registrant s Class B common stock, issued and outstanding.
federal partnership audit rules and potentially also state and local tax rules; (viii) federal, state and foreign anti-corruption and sanctions laws; (ix) regulation of investment advisers outside the United States; and (x) divergent views of investors and differing approaches by governmental authorities in respect of the incorporation of sustainability-related factors in our investment and portfolio management process as well as human capital management.
As of March 31, 2025, we were responsible for approximately $709 billion of total capital, including $189 billion of AUM and $520 billion of AUA.
As of April 1, 2025, 108 partners led the firm, with an average of over 20 years of investment or industry experience.
As of March 31, 2025, we had approximately 1,130 total employees, including over 375 investment professionals and approximately 750 employees across our operating team and implementation teams dedicated to sourcing, executing, analyzing and monitoring private markets opportunities.
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REMOVED
As of May 22, 2024, there were 65,614,902 shares of the registrant s Class A common stock and 45,030,959 shares of the registrant s Class B common stock, issued and outstanding.
TRADEMARKS, SERVICE MARKS AND TRADE NAMES We own or have rights to trademarks, service marks or trade names that we use in connection with the operation of our business.
federal partnership audit rules and potentially also state and local tax rules; (viii) federal, state and foreign anti-corruption and sanctions laws; (ix) regulation of investment advisers outside the United States; and (x) increasing scrutiny from institutional clients with respect to environmental, social and governance ( ESG ) costs of investments made by the StepStone Funds.
As of March 31, 2024, we were responsible for $678 billion of total capital, including $157 billion of AUM and $521 billion of AUA.
As of March 31, 2024, 100 partners led the firm, with an average of over 20 years of investment or industry experience.
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