How did STEP's revenue and expenses shift in Q3 2025 compared to previous quarters?

**StepStone Group Inc. experienced a significant increase in revenue in Q3 2025 compared to the previous quarter, but incurred a higher expense, resulting in a net loss.** Here's a detailed analysis:

1. **Revenue Shift**:
- In Q3 2025, StepStone Group reported total revenues of $339.02 million.
- This is a substantial improvement from the negative revenue of $14.6 million in the prior year's same quarter.
- The company's revenue growth is notable, with a 32% increase in adjusted revenues reported, reaching $243.9 million.
2. **Expense Shift**:
- Despite the revenue surge, StepStone Group posted a net loss of $287.16 million in Q3 2025.
- A significant equity-based compensation expense and performance fee-related compensation contributed to the lower-than-expected earnings per share (EPS) of $(2.61), missing the estimated EPS of $0.48.
- General and Administrative (G&A) expenses were higher, amounting to $28 million, reflecting a $5 million increase from the prior year.
3. **Key Financial Metrics**:
- The company's management and advisory fees increased to $190.84 million, reflecting a 26% year-over-year growth.
- Fee-related earnings (FRE) saw a significant rise, achieving $74.12 million, marking a 46% increase compared to the same period last year.
- Assets Under Management (AUM) grew to $179.2 billion, reflecting a 20% year-over-year increase.
4. **Dividend and Strategic Initiatives**:
- StepStone Group declared a quarterly cash dividend of $0.24 per share, up 14% from the previous year.
- The company continued to focus on expanding its global footprint and enhancing its service offerings, including the integration of acquired businesses and the development of new investment solutions.

In conclusion, while StepStone Group saw a substantial revenue surge in Q3 2025, the increased expenses, particularly in compensation and G&A, led to a net loss. However, the company's AUM growth and dividend increase indicate a strategic focus on shareholder returns despite the short-term financial setback.