Investment Thesis
StepStone Group faces severe financial distress with negative stockholders' equity of -378.8M, indicating technical insolvency where liabilities exceed assets. Despite 65.1% revenue growth and positive free cash flow of 87.8M, the company suffers from massive operating losses (-890.8M) and a crippling -63.4% operating margin, revealing the revenue growth is unprofitable.
Strengths
- Strong revenue growth of 65.1% year-over-year indicates market demand and scaling
- Positive operating cash flow of 89.7M and free cash flow of 87.8M suggest cash generation despite losses
- Adequate cash position of 378.0M provides near-term liquidity runway
Risks
- Negative stockholders' equity of -378.8M represents technical insolvency and financial distress
- Massive operating loss of -890.8M with -37.6% net margin indicates fundamentally unprofitable business model
- Negative interest coverage of -95.5x signals inability to service debt from operations, creating refinancing risk
Key Metrics to Watch
- Path to operating profitability and timeline for returning to positive net income
- Stockholders' equity recovery trajectory and covenant compliance on 270.2M long-term debt
- Operating cash flow sustainability as revenue growth moderates and losses stabilize
Financial Metrics
Revenue
1.4B
Net Income
-528.0M
EPS (Diluted)
$-6.72
Free Cash Flow
87.8M
Total Assets
5.2B
Cash
378.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-63.4%
Net Margin
-37.6%
ROE
N/A
ROA
-10.1%
FCF Margin
6.3%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
N/A
Debt/Assets
90.1%
Interest Coverage
-95.47x
Long-term Debt
270.2M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-16T17:09:21.530932 |
Data as of: 2025-12-31 |
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