StepStone Group Inc. (NASDAQ: STEP) has authorized a $100 million stock repurchase program for its Class A common stock. The board granted the company flexibility to buy back shares through open‑market purchases, private negotiations, or Rule 10b5‑1 plans, allowing management to deploy capital as market conditions warrant.
The buyback is part of StepStone’s broader capital‑allocation strategy, which also includes a quarterly dividend and an annual supplemental dividend. The company currently offers a 3.85% dividend yield, with dividend growth of 33% over the past twelve months. StepStone’s free‑cash‑flow generation has supported this strategy, as evidenced by the $80 million adjusted net income reported for the third quarter of fiscal year 2026, up from $53 million in the same period a year earlier.
Mike McCabe, Head of Strategy, said, “Our capital‑efficient business model generates significant free cash flow, which underpins our consistent and growing quarterly dividend. In addition to our normal quarterly dividend, we intend to balance paying a recurring annual supplemental dividend with retaining flexibility to adjust that supplemental payout as we evaluate the most compelling uses of capital. The authorization of a share repurchase program adds another attractive and opportunistic lever to our capital‑allocation framework.”
The announcement comes as the company’s shares have been trading at $45.25, a level that analysts view as below fair value. The buyback signals management’s confidence in StepStone’s intrinsic value and its ability to support share price appreciation.
By adding a $100 million buyback program, StepStone enhances shareholder value while preserving liquidity for future growth initiatives. The move underscores the company’s commitment to returning capital to shareholders and reflects confidence in its free‑cash‑flow generation and capital‑efficient business model.
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