EX-99.1 2 vctr-ex99_1.htm EX-99.1 EX-99.1

EXHIBIT 99.1

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  NEWS RELEASE

 

Victory Capital Reports Record Fourth-Quarter Results

Fourth-Quarter Highlights

•
Total Client Assets of $316.6 billion
•
Long-term gross flows of $17.1 billion
•
Long-term net flows of ($2.1) billion
•
GAAP operating margin of 40.9%
•
GAAP net income per diluted share of $1.32
•
Adjusted EBITDA margin of 52.8%
•
Adjusted net income with tax benefit per diluted share of $1.78
•
Board authorizes regular quarterly cash dividend of $0.49

San Antonio, Texas, February 4, 2026 — Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or “the Company”) today reported record financial results for the quarter and year ended December 31, 2025.

“We ended 2025 with positive momentum and in a position of strength, achieving record quarterly and annual levels of gross flows, revenue, and earnings,” said David Brown, Chairman and Chief Executive Officer. “In early 2026, we achieved record high AUM and are well positioned to execute on all our growth strategies.

“Our investment performance remains excellent and improved during the fourth quarter. The percentage of our AUM outperforming benchmarks over the respective 1-, 3-, 5-, and 10-year periods ended December 31, was 63%, 63%, 68%, and 78%. In addition, 65% of our rated AUM in mutual funds and ETFs was rated four or five stars overall by Morningstar.

“The integration of Pioneer Investments is substantially complete, with $97 million of net expense synergies having been achieved by year end. The remaining $13 million of net expense synergies are on track to be completed during 2026.

“Meaningful progress continues across key growth drivers, including achieving positive net flows from our international distribution channel, our VictoryShares ETF platform, and multiple Investment Franchises. This momentum is supported by the launching of new products and vehicles, the continued ramp-up of our international sales capabilities, our enlarged US salesforce, and investments we are making into our key distribution partners.

“Capital returned to shareholders during 2025 reached a record $366 million. In the fourth quarter, we repurchased more than 800,000 shares of VCTR common stock and, combined with dividends, returned a total of $93 million to shareholders.

“As our top capital deployment priority, we remain very active and disciplined in pursuing strategic acquisitions, and we also intend to continue with our meaningful share repurchases.

“As always, we continue to focus on serving our clients, which is our top priority.”

 

 

The table below presents AUM, and certain GAAP and non-GAAP (“adjusted”) financial results. Due to rounding, AUM values and other amounts in this press release may not add up precisely to the totals provided.

 

(in millions except per share amounts or as otherwise noted)

 

 

For the Three Months Ended

 

 

For the Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Assets Under Management1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending

 

$

 

313,775

 

 

$

 

310,644

 

 

$

 

171,930

 

 

$

 

313,775

 

 

$

 

171,930

 

Average

 

 

 

312,873

 

 

 

 

303,584

 

 

 

 

175,741

 

 

 

 

268,806

 

 

 

 

169,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM Long-term Flows2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term Gross

 

$

 

17,127

 

 

$

 

16,962

 

 

$

 

6,615

 

 

$

 

58,821

 

 

$

 

25,255

 

Long-term Net

 

 

 

(2,089

)

 

 

 

(244

)

 

 

 

(1,729

)

 

 

 

(4,198

)

 

 

 

(7,090

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM Money Market/Short-term Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market / Short-term Gross

 

$

 

345

 

 

$

 

334

 

 

$

 

178

 

 

$

 

1,164

 

 

$

 

912

 

Money Market / Short-term Net

 

 

 

(22

)

 

 

 

(48

)

 

 

 

(140

)

 

 

 

(258

)

 

 

 

(287

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM Total Flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Gross

 

$

 

17,472

 

 

$

 

17,296

 

 

$

 

6,793

 

 

$

 

59,985

 

 

$

 

26,167

 

Total Net

 

 

 

(2,111

)

 

 

 

(292

)

 

 

 

(1,870

)

 

 

 

(4,456

)

 

 

 

(7,377

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Financial Results (GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 

374.1

 

 

$

 

361.2

 

 

$

 

232.4

 

 

$

 

1,306.1

 

 

$

 

893.5

 

AUM revenue realization (in bps)

 

 

 

47.4

 

 

 

 

47.2

 

 

 

 

52.5

 

 

 

 

48.6

 

 

 

 

52.6

 

Operating expenses

 

 

 

220.9

 

 

 

 

223.1

 

 

 

 

120.6

 

 

 

 

827.7

 

 

 

 

466.0

 

Income from operations

 

 

 

153.2

 

 

 

 

138.1

 

 

 

 

111.7

 

 

 

 

478.4

 

 

 

 

427.5

 

Operating margin

 

 

 

40.9

%

 

 

 

38.2

%

 

 

 

48.1

%

 

 

 

36.6

%

 

 

 

47.8

%

Net income

 

 

 

112.8

 

 

 

 

96.5

 

 

 

 

76.9

 

 

 

 

330.1

 

 

 

 

288.9

 

Earnings per diluted share

 

$

 

1.32

 

 

$

 

1.11

 

 

$

 

1.17

 

 

$

 

4.08

 

 

$

 

4.38

 

Cash flow from operations

 

 

 

145.1

 

 

 

 

165.2

 

 

 

 

91.8

 

 

 

 

385.5

 

 

 

 

340.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Performance Results (Non-GAAP)3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

 

197.5

 

 

$

 

190.5

 

 

$

 

125.5

 

 

$

 

682.9

 

 

$

 

475.6

 

Adjusted EBITDA margin

 

 

 

52.8

%

 

 

 

52.7

%

 

 

 

54.0

%

 

 

 

52.3

%

 

 

 

53.2

%

Adjusted net income

 

 

 

141.3

 

 

 

 

130.9

 

 

 

 

85.0

 

 

 

 

472.6

 

 

 

 

312.9

 

Tax benefit of goodwill and acquired intangible assets

 

 

 

10.5

 

 

 

 

10.5

 

 

 

 

10.1

 

 

 

 

41.4

 

 

 

 

40.2

 

Adjusted net income with tax benefit

 

 

 

151.7

 

 

 

 

141.3

 

 

 

 

95.1

 

 

 

 

513.9

 

 

 

 

353.1

 

Adjusted net income with tax benefit per diluted share4

 

$

 

1.78

 

 

$

 

1.63

 

 

$

 

1.45

 

 

$

 

6.38

 

 

$

 

5.36

 

 

 

1Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets.

2 Long-term AUM is defined as total AUM excluding Money Market and Short-term assets.

3 The Company reports its financial results in accordance with GAAP. Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section “Information Regarding Non-GAAP Financial Measures” at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure.

4 The Company includes participating securities in its computation of adjusted earnings per diluted share, including shares of series A Non-Voting Convertible Preferred stock for the quarterly periods ended September 30, 2025 and December 31, 2025 and the year ended December 31, 2025.

2

 

 

AUM, Flows and Investment Performance

At December 31, 2025, Victory Capital had total client assets of $316.6 billion, assets under management of $313.8 billion, and other assets of $2.8 billion. Total AUM increased by $3.2 billion to $313.8 billion at December 31, 2025, compared with $310.6 billion at September 30, 2025. The increase was due to positive market action of $6.2 billion partially offset by net outflows of $2.1 billion. Total gross flows for the fourth quarter were $17.5 billion, including long-term gross flows of $17.1 billion.

As of December 31, 2025, Victory Capital offered 187 investment strategies through its multiple autonomous Investment Franchises and Solutions Platform. The table below presents outperformance against benchmarks by AUM as of December 31, 2025.

Percentage of AUM Outperforming Benchmark

Trailing

 

Trailing

 

Trailing

 

Trailing

1-Year

 

3-Years

 

5-Years

 

10-Years

63%

 

63%

 

68%

 

78%

Fourth Quarter 2025 Compared with Third Quarter 2025

On April 1, 2025, the Company completed the acquisition of Amundi US and reintroduced the brand Pioneer Investments ("Pioneer" or "Pioneer Investments") for the acquired business and investment products. Sequential results reflect the acquisition. Revenue increased 3.6% to $374.1 million in the fourth quarter, compared with $361.2 million in the third quarter, primarily due to higher average AUM over the comparable period. GAAP operating margin expanded 270 basis points in the fourth quarter to 40.9%, up from 38.2% in the third quarter primarily due to a $5.9 million decrease in restructuring and integration related costs partially offset by a $4.0 million increase in compensation related expenses. Fourth quarter GAAP net income increased 16.9% to $112.8 million, or $1.32 per diluted share, up from $96.5 million, or $1.11 per diluted share, in the prior quarter.

 

Adjusted net income with tax benefit increased 7.4% to $151.7 million, or $1.78 per diluted share in the fourth quarter, up from $141.3 million, or $1.63 per diluted share, in the third quarter. Adjusted EBITDA increased 3.7% to $197.5 million in the fourth quarter, versus $190.5 million in the third quarter. Adjusted EBITDA margin expanded 10 basis points in the fourth quarter of 2025 to 52.8% compared with 52.7% in the prior quarter.

Fourth Quarter 2025 Compared with Fourth Quarter 2024

Current year results reflect the acquisition of Amundi US, which closed on April 1, 2025. Revenue for the three months ended December 31, 2025, increased 61.0% to $374.1 million, compared with $232.4 million in the same quarter of 2024 as a result of higher average AUM over the comparable period. Operating expenses increased 83.2% to $220.9 million, compared with $120.6 million in last year’s fourth quarter reflecting variable operating expenses that rose as a result of higher average AUM and an expanded business and restructuring and integration costs related to the acquisition of Amundi US. GAAP operating margin contracted 720 basis points to 40.9% in the fourth quarter, from 48.1% in the same quarter of 2024. GAAP net income increased 46.6% to $112.8 million, or $1.32 per diluted share, in the fourth quarter compared with $76.9 million, or $1.17 per diluted share, in the same quarter of 2024.

 

Adjusted net income with tax benefit increased 59.5% to $151.7 million, or $1.78 per diluted share, in the fourth quarter, compared with $95.1 million, or $1.45 per diluted share in the same quarter

3

 

last year. Adjusted EBITDA increased 57.4% to $197.5 million, compared with $125.5 million in the same quarter of last year. Year-over-year, adjusted EBITDA margin contracted 120 basis points to 52.8% in the fourth quarter of 2025, compared with 54.0% in the same quarter last year.

Year Ended December 31, 2025 Compared with Year Ended December 31, 2024

Current year results reflect the acquisition of Amundi US, which closed on April 1, 2025. Revenue for the year ended December 31, 2025, increased 46.2% to $1.3 billion, compared with $893.5 million in the same period of 2024. The increase was primarily due to higher average AUM.

 

Operating expenses increased 77.6% to $827.7 million for the year ended December 31, 2025, compared with $466.0 million in the same period in 2024, due to higher variable operating expenses as a result of the higher average AUM, an increase in acquisition-related costs, and an increase in restructuring and integration costs related to the acquisition of Amundi US. GAAP operating margin was 36.6% for the year ended December 31, 2025, a 1,120 basis point contraction from the 47.8% recorded in the same period in 2024. GAAP net income increased 14.3% to $330.1 million, or $4.08 per diluted share, in 2025 compared with $288.9 million, or $4.38 per diluted share, in 2024.

 

Adjusted net income with tax benefit increased 45.6% to $513.9 million for the year ended December 31, 2025, up from $353.1 million in 2024. On a per-share basis, adjusted net income with tax benefit increased 19.0% to $6.38 per diluted share for the year ended December 31, 2025 compared to $5.36 per diluted share in 2024. For the year ended December 31, 2025, adjusted EBITDA increased 43.6% to $682.9 million, compared with $475.6 million for the same period in 2024. Year-over-year, adjusted EBITDA margin contracted 90 basis points to 52.3% for the year ended December 31, 2025, compared with 53.2% in the previous year.

Balance Sheet / Capital Management

The total debt outstanding as of December 31, 2025 was approximately $983 million.

The Company’s Board of Directors approved a regular quarterly cash dividend of $0.49 per share. The dividend is payable on March 25, 2026, to shareholders of record on March 10, 2026.

Conference Call, Webcast and Slide Presentation

The Company will host a conference call tomorrow morning, February 5, at 8:00 a.m. ET to discuss the results. Analysts and investors may participate in the question-and-answer session. To participate in the conference call, please call 1-800-715-9871 (domestic) or 1-646-307-1963 (international), shortly before 8:00 a.m. ET and reference the Victory Capital Conference Call. A live, listen-only webcast will also be available via the investor relations section of the Company’s website at https://ir.vcm.com. Prior to the call, a supplemental slide presentation that will be used during the conference call will be available on the Events and Presentations page of the Company’s investor relations website. For anyone who is unable to join the live event, an archive of the webcast will be available for replay shortly after the call concludes.

About Victory Capital

Victory Capital (NASDAQ: VCTR) is a diversified global asset management firm with $316.6 billion in total client assets, as of December 31, 2025. We serve institutional, intermediary, and individual clients through our Investment Franchises and Solutions Platform, which manage specialized investment strategies across traditional and alternative asset classes. Our differentiated approach

4

 

 

combines the power of investment autonomy with the support of a robust, fully integrated operational and distribution platform. Clients have access to focused, top-tier investment talent equipped with comprehensive resources designed to deliver competitive long-term performance.

Victory Capital is headquartered in San Antonio, Texas. To learn more, visit www.vcm.com or follow us on Facebook, Twitter (X), and LinkedIn.

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements within the meaning of applicable U.S. federal and non-U.S. securities laws. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “assume,” “budget,” “continue,” “estimate,” “future,” “objective,” “outlook,” “plan,” “potential,” “predict,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof and include, but are not limited to, statements regarding the outlook for Victory Capital’s future business and financial performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Victory Capital's control and could cause Victory Capital's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward looking statements.

Although it is not possible to identify all of these risks and factors, they include, among others, the following: reductions in the assets under management (“AUM”) based on investment performance, client withdrawals, difficult market conditions and other factors such as the ongoing conflicts and potential military conflicts in Ukraine, Venezuela, China/Taiwan, and/or the Middle East, a pandemic, tariffs or trade restrictions; the nature of the Company’s contracts and investment advisory agreements; the Company's ability to maintain historical returns and sustain our historical growth; the Company's dependence on third parties to market our strategies and provide products or services for the operation of our business; the Company's ability to retain key investment professionals or members of our senior management team; the Company's reliance on the technology systems supporting our operations; the Company's ability to successfully acquire and integrate new companies; risks associated with expected benefits of the Amundi US transaction and the related impact on the Company’s business; the concentration of the Company’s investments in long only small- and mid-cap equity and U.S. clients; risks and uncertainties associated with non-U.S. investments; the Company's efforts to establish and develop new teams and strategies; the ability of the Company’s investment teams to identify appropriate investment opportunities; the Company's ability to limit employee misconduct; the Company's ability to meet the guidelines set by our clients; the Company's exposure to potential litigation (including administrative or tax proceedings) or regulatory actions; the Company's ability to implement effective information and cyber security policies, procedures and capabilities; the Company's substantial indebtedness; the potential impairment of the Company’s goodwill and intangible assets; disruption to the operations of third parties whose functions are integral to the Company’s ETF platform; the Company's determination that we are not required to register as an “investment company” under the Investment Company Act of 1940; the fluctuation of the Company’s expenses; the Company's ability to respond to recent trends in the investment management industry; the level of regulation on investment management firms and the Company’s ability to respond to regulatory developments; the competitiveness of the investment management industry; and other risks and factors included, but not limited to, those listed under the caption “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2025, which is accessible on the SEC’s website at www.sec.gov.

5

 

 

 

In light of these risks, uncertainties and other factors, the forward-looking statements contained in this press release might not prove to be accurate. All forward-looking statements speak only as of the date made and Victory Capital undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Contacts

 

Investors:

Matthew Dennis, CFA

Chief of Staff

Director, Investor Relations

216-898-2412

mdennis@vcm.com

Media:
Jessica Davila
Director, Global Communications
210-694-9693
jessica_davila@vcm.com 

 

 

6

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Unaudited Consolidated Statements of Operations

(in thousands except per share data and percentages)

 

 

 

For the Three Months Ended

 

 

For the Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment management fees

 

$

 

301,353

 

 

$

 

288,509

 

 

$

 

183,826

 

 

$

 

1,045,469

 

 

$

 

704,583

 

Fund administration and distribution fees

 

 

 

72,769

 

 

 

 

72,686

 

 

 

 

48,545

 

 

 

 

260,662

 

 

 

 

188,894

 

Total revenue

 

 

 

374,122

 

 

 

 

361,195

 

 

 

 

232,371

 

 

 

 

1,306,131

 

 

 

 

893,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel compensation and benefits

 

 

 

100,954

 

 

 

 

96,983

 

 

 

 

58,857

 

 

 

 

362,991

 

 

 

 

217,214

 

Distribution and other asset-based expenses

 

 

 

68,315

 

 

 

 

66,160

 

 

 

 

36,924

 

 

 

 

231,991

 

 

 

 

146,489

 

General and administrative

 

 

 

22,147

 

 

 

 

23,463

 

 

 

 

14,268

 

 

 

 

83,319

 

 

 

 

56,694

 

Depreciation and amortization

 

 

 

21,593

 

 

 

 

22,032

 

 

 

 

7,514

 

 

 

 

72,851

 

 

 

 

30,176

 

Change in value of consideration payable for acquisition of business

 

 

 

3,064

 

 

 

 

3,841

 

 

 

 

294

 

 

 

 

11,403

 

 

 

 

2,694

 

Acquisition-related costs

 

 

 

570

 

 

 

 

379

 

 

 

 

2,135

 

 

 

 

35,479

 

 

 

 

11,285

 

Restructuring and integration costs

 

 

 

4,304

 

 

 

 

10,211

 

 

 

 

634

 

 

 

 

29,674

 

 

 

 

1,411

 

Total operating expenses

 

 

 

220,947

 

 

 

 

223,069

 

 

 

 

120,626

 

 

 

 

827,708

 

 

 

 

465,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

153,175

 

 

 

 

138,126

 

 

 

 

111,745

 

 

 

 

478,423

 

 

 

 

427,514

 

Operating margin

 

 

 

40.9

%

 

 

 

38.2

%

 

 

 

48.1

%

 

 

 

36.6

%

 

 

 

47.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other income (expense)

 

 

 

3,713

 

 

 

 

4,875

 

 

 

 

1,768

 

 

 

 

15,298

 

 

 

 

10,441

 

Interest expense and other financing costs

 

 

 

(15,229

)

 

 

 

(13,113

)

 

 

 

(14,657

)

 

 

 

(54,787

)

 

 

 

(63,836

)

Loss on debt extinguishment

 

 

 

—

 

 

 

 

(614

)

 

 

 

(263

)

 

 

 

(614

)

 

 

 

(363

)

Total other expense, net

 

 

 

(11,516

)

 

 

 

(8,852

)

 

 

 

(13,152

)

 

 

 

(40,103

)

 

 

 

(53,758

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

 

141,659

 

 

 

 

129,274

 

 

 

 

98,593

 

 

 

 

438,320

 

 

 

 

373,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

(28,847

)

 

 

 

(32,733

)

 

 

 

(21,654

)

 

 

 

(108,258

)

 

 

 

(84,892

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

 

112,812

 

 

$

 

96,541

 

 

$

 

76,939

 

 

$

 

330,062

 

 

$

 

288,864

 

Preferred stock dividends

 

 

 

(9,769

)

 

 

 

(9,696

)

 

 

 

—

 

 

 

 

(29,138

)

 

 

 

—

 

Income attributable to Preferred stockholders

 

 

 

(16,848

)

 

 

 

(12,528

)

 

 

 

—

 

 

 

 

(30,773

)

 

 

 

—

 

Net income attributable to common shareholders

 

$

 

86,195

 

 

$

 

74,317

 

 

$

 

76,939

 

 

$

 

270,151

 

 

$

 

288,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

1.33

 

 

$

 

1.12

 

 

$

 

1.19

 

 

$

 

4.13

 

 

$

 

4.47

 

Diluted

 

 

 

1.32

 

 

 

 

1.11

 

 

 

 

1.17

 

 

 

 

4.08

 

 

 

 

4.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

64,584

 

 

 

 

66,206

 

 

 

 

64,428

 

 

 

 

65,439

 

 

 

 

64,607

 

Diluted

 

 

 

65,329

 

 

 

 

66,964

 

 

 

 

65,519

 

 

 

 

66,376

 

 

 

 

65,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share

 

$

 

0.49

 

 

$

 

0.49

 

 

$

 

0.44

 

 

$

 

1.94

 

 

$

 

1.555

 

 

7

 

 

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures1

(unaudited; in thousands except per share data and percentages)

 

 

 

For the Three Months Ended

 

 

For the Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net income (GAAP)

 

$

 

112,812

 

 

$

 

96,541

 

 

$

 

76,939

 

 

$

 

330,062

 

 

$

 

288,864

 

Income tax expense

 

 

 

(28,847

)

 

 

 

(32,733

)

 

 

 

(21,654

)

 

 

 

(108,258

)

 

 

 

(84,892

)

Income before income taxes

 

$

 

141,659

 

 

$

 

129,274

 

 

$

 

98,593

 

 

$

 

438,320

 

 

$

 

373,756

 

Interest expense

 

 

 

15,367

 

 

 

 

12,136

 

 

 

 

13,971

 

 

 

 

52,224

 

 

 

 

60,799

 

Depreciation

 

 

 

2,519

 

 

 

 

3,295

 

 

 

 

2,228

 

 

 

 

11,218

 

 

 

 

8,959

 

Other business taxes

 

 

 

1,101

 

 

 

 

637

 

 

 

 

376

 

 

 

 

3,353

 

 

 

 

1,525

 

Amortization of acquisition-related intangible assets

 

 

 

19,074

 

 

 

 

18,737

 

 

 

 

5,286

 

 

 

 

61,633

 

 

 

 

21,217

 

Stock-based compensation

 

 

 

2,143

 

 

 

 

2,022

 

 

 

 

1,007

 

 

 

 

7,325

 

 

 

 

4,246

 

Acquisition, restructuring and exit costs

 

 

 

15,439

 

 

 

 

21,400

 

 

 

 

3,063

 

 

 

 

104,150

 

 

 

 

1,735

 

Debt issuance costs

 

 

 

174

 

 

 

 

2,950

 

 

 

 

981

 

 

 

 

4,628

 

 

 

 

3,385

 

Adjusted EBITDA

 

$

 

197,476

 

 

$

 

190,451

 

 

$

 

125,505

 

 

$

 

682,851

 

 

$

 

475,622

 

Adjusted EBITDA margin

 

 

 

52.8

%

 

 

 

52.7

%

 

 

 

54.0

%

 

 

 

52.3

%

 

 

 

53.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

 

112,812

 

 

$

 

96,541

 

 

$

 

76,939

 

 

$

 

330,062

 

 

$

 

288,864

 

Adjustment to reflect the operating performance of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other business taxes

 

 

 

1,101

 

 

 

 

637

 

 

 

 

376

 

 

 

 

3,353

 

 

 

 

1,525

 

Amortization of acquisition-related intangible assets

 

 

 

19,074

 

 

 

 

18,737

 

 

 

 

5,286

 

 

 

 

61,633

 

 

 

 

21,217

 

Stock-based compensation

 

 

 

2,143

 

 

 

 

2,022

 

 

 

 

1,007

 

 

 

 

7,325

 

 

 

 

4,246

 

Acquisition, restructuring and exit costs

 

 

 

15,439

 

 

 

 

21,400

 

 

 

 

3,063

 

 

 

 

104,150

 

 

 

 

1,735

 

Debt issuance costs

 

 

 

174

 

 

 

 

2,950

 

 

 

 

981

 

 

 

 

4,628

 

 

 

 

3,385

 

Tax effect of above adjustments

 

 

 

(9,482

)

 

 

 

(11,437

)

 

 

 

(2,679

)

 

 

 

(38,576

)

 

 

 

(8,028

)

Adjusted net income

 

$

 

141,261

 

 

$

 

130,850

 

 

$

 

84,973

 

 

$

 

472,575

 

 

$

 

312,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per diluted share2

 

$

 

1.66

 

 

$

 

1.51

 

 

$

 

1.30

 

 

$

 

5.87

 

 

$

 

4.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - diluted (GAAP)

 

 

 

65,329

 

 

 

 

66,964

 

 

 

 

65,519

 

 

 

 

66,376

 

 

 

 

65,928

 

Weighted average number of shares outstanding - diluted (Non-GAAP)2

 

 

 

85,219

 

 

 

 

86,751

 

 

 

 

65,519

 

 

 

 

80,524

 

 

 

 

65,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax benefit of goodwill and acquired intangible assets

 

$

 

10,487

 

 

$

 

10,487

 

 

$

 

10,141

 

 

$

 

41,370

 

 

$

 

40,171

 

Tax benefit of goodwill and acquired intangible assets per diluted share2

 

$

 

0.12

 

 

$

 

0.12

 

 

$

 

0.15

 

 

$

 

0.51

 

 

$

 

0.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income with tax benefit

 

$

 

151,748

 

 

$

 

141,337

 

 

$

 

95,114

 

 

$

 

513,945

 

 

$

 

353,115

 

Adjusted net income with tax benefit per diluted share2

 

$

 

1.78

 

 

$

 

1.63

 

 

$

 

1.45

 

 

$

 

6.38

 

 

$

 

5.36

 

1 The Company reports its financial results in accordance with GAAP. Adjusted EBITDA and Adjusted Net Income are not defined by GAAP and should not be regarded as an alternative to any measurement under GAAP. Please refer to the section “Information Regarding Non-GAAP Financial Measures” at the end of this press release for an explanation of Non-GAAP financial measures and a reconciliation to the nearest GAAP financial measure.

2 The Company includes participating securities in its computation of adjusted earnings per diluted share, including shares of series A Non-Voting Convertible Preferred stock for the quarterly periods ended September 30, 2025 and December 31, 2025 and the year ended December 31, 2025.

 

 

8

 

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Unaudited Consolidated Balance Sheets

(In thousands, except for shares and per share amounts)

 

 

December 31, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

163,690

 

 

$

 

126,731

 

Investment management fees receivable

 

 

150,512

 

 

 

 

83,307

 

Fund administration and distribution fees receivable

 

 

25,861

 

 

 

 

16,014

 

Other receivables

 

 

4,768

 

 

 

 

1,346

 

Prepaid expenses

 

 

16,071

 

 

 

 

8,634

 

Investments in proprietary funds, at fair value

 

 

636

 

 

 

 

605

 

Deferred compensation plan investments, at fair value

 

 

98,758

 

 

 

 

34,608

 

Property and equipment, net

 

 

23,833

 

 

 

 

11,874

 

Goodwill

 

 

1,235,940

 

 

 

 

981,805

 

Other intangible assets, net

 

 

2,477,617

 

 

 

 

1,260,614

 

Other assets

 

 

50,164

 

 

 

 

22,053

 

Total assets

$

 

4,247,850

 

 

$

 

2,547,591

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

Accounts payable and accrued expenses

$

 

72,387

 

 

$

 

57,951

 

Accrued compensation and benefits

 

 

86,355

 

 

 

 

51,648

 

Consideration payable for acquisition of business

 

 

87,564

 

 

 

 

139,894

 

Deferred compensation plan liability

 

 

80,636

 

 

 

 

34,608

 

Deferred tax liability, net

 

 

479,792

 

 

 

 

157,120

 

Other liabilities

 

 

46,373

 

 

 

 

20,871

 

Long-term debt(1)

 

 

970,014

 

 

 

 

963,862

 

Total liabilities

 

 

1,823,121

 

 

 

 

1,425,954

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

Common stock; $0.01 par value per share: 2025 - 600,000,000 shares authorized, 87,866,675 shares issued and 64,149,525 shares outstanding; 2024 - 600,000,000 shares authorized, 83,947,949 shares issued and 63,653,212 shares outstanding

 

 

879

 

 

 

 

839

 

Preferred stock, $0.01 par value per share:
2025 - 100,000,000 shares authorized, 19,936,821 shares issued and outstanding; 2024 - 100,000,000 shares authorized, no shares issued and outstanding

 

 

199

 

 

 

 

—

 

Additional paid-in capital

 

 

2,102,938

 

 

 

 

752,371

 

Treasury stock, at cost: 2025 - 23,717,150 shares; 2024 - 20,294,737 shares

 

 

(786,008

)

 

 

 

(574,856

)

Accumulated other comprehensive income

 

 

9,020

 

 

 

 

18,683

 

Retained earnings

 

 

1,097,701

 

 

 

 

924,600

 

Total stockholders' equity

 

 

2,424,729

 

 

 

 

1,121,637

 

Total liabilities and stockholders’ equity

$

 

4,247,850

 

 

$

 

2,547,591

 

 

1 Balances at December 31, 2025 and 2024 are shown net of unamortized loan discount and debt issuance costs in the amount of $12.5 million and $8.3 million, respectively. The gross amount of the debt outstanding was $982.5 million and $972.2 million as of December 31, 2025 and 2024, respectively.

 

 

 

 

 

 

 

 

 

 

9

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Total Client Assets

(unaudited; in millions)

 

 

 

For the Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2025

 

 

2024

 

Beginning AUM

 

$

 

310,644

 

 

$

 

298,563

 

 

$

 

176,113

 

Beginning other assets1

 

 

 

2,726

 

 

 

 

3,050

 

 

 

 

4,981

 

Beginning total client assets

 

 

 

313,370

 

 

 

 

301,613

 

 

 

 

181,094

 

 

 

 

 

 

 

 

 

 

 

 

 

AUM net cash flows

 

 

 

(2,111

)

 

 

 

(292

)

 

 

 

(1,870

)

Other assets net cash flows

 

 

 

—

 

 

 

 

(502

)

 

 

 

(675

)

Total client assets net cash flows

 

 

 

(2,111

)

 

 

 

(794

)

 

 

 

(2,545

)

 

 

 

 

 

 

 

 

 

 

 

 

AUM market appreciation (depreciation)

 

 

 

6,152

 

 

 

 

14,515

 

 

 

 

(2,237

)

Other assets market appreciation (depreciation)

 

 

 

120

 

 

 

 

177

 

 

 

 

(141

)

Total client assets market appreciation (depreciation)

 

 

 

6,273

 

 

 

 

14,692

 

 

 

 

(2,378

)

 

 

 

 

 

 

 

 

 

 

 

 

AUM realizations and distributions

 

 

 

(287

)

 

 

 

—

 

 

 

 

—

 

Acquired & divested assets / Net transfers4

 

 

 

(624

)

 

 

 

(2,141

)

 

 

 

(76

)

 

 

 

 

 

 

 

 

 

 

 

 

Ending AUM

 

 

 

313,775

 

 

 

 

310,644

 

 

 

 

171,930

 

Ending other assets

 

 

 

2,846

 

 

 

 

2,726

 

 

 

 

4,165

 

Ending total client assets

 

 

 

316,621

 

 

 

 

313,370

 

 

 

 

176,096

 

Average total client assets2

 

 

 

315,662

 

 

 

 

306,457

 

 

 

 

180,104

 

 

 

 

For the Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Beginning AUM

 

$

 

171,930

 

 

$

 

161,322

 

Beginning other assets1

 

 

 

4,165

 

 

 

 

5,289

 

Beginning total client assets

 

 

 

176,096

 

 

 

 

166,611

 

 

 

 

 

 

 

 

 

AUM net cash flows

 

 

 

(4,456

)

 

 

 

(7,377

)

Other assets net cash flows

 

 

 

(1,948

)

 

 

 

(1,627

)

Total client assets net cash flows

 

 

 

(6,404

)

 

 

 

(9,004

)

 

 

 

 

 

 

 

 

AUM market appreciation (depreciation)

 

 

 

37,742

 

 

 

 

18,100

 

Other assets market appreciation (depreciation)

 

 

 

629

 

 

 

 

504

 

Total client assets market appreciation (depreciation)

 

 

 

38,371

 

 

 

 

18,604

 

 

 

 

 

 

 

 

 

AUM realizations and distributions

 

 

 

(311

)

 

 

 

(2

)

Acquired & divested assets / Net transfers4

 

 

 

108,869

 

 

 

 

(113

)

 

 

 

 

 

 

 

 

Ending AUM

 

 

 

313,775

 

 

 

 

171,930

 

Ending other assets

 

 

 

2,846

 

 

 

 

4,165

 

Ending total client assets

 

 

 

316,621

 

 

 

 

176,096

 

Average total client assets3

 

 

 

272,134

 

 

 

 

174,542

 

 

1 Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class within the by asset class table and in Separate Accounts and Other Pooled Vehicles within the by vehicle table. These assets are included as part of Victory’s Regulatory Assets Under Management reported in Form ADV Part 1.

2 For the three-month periods ending December 31, 2025, September 30, 2025 and December 31, 2024 total client assets revenue realization was 47.0 basis points, 46.8 basis points and 51.3 basis points, respectively.

3For the year ended December 31, 2025 and 2024 total client assets revenue realization was 48.0 basis points and 51.2 basis points, respectively.

4Three months ended September 30, 2025 includes the impact of approximately $1 billion of divested assets from the closure of three Investment Franchises in the third quarter. The year ended December 31, 2025 includes the impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion, partially offset by assets divested due to the closure of four Investment Franchises.

10

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Total Assets Under Management1

(unaudited; in millions)

 

 

 

For the Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2025

 

 

2024

 

Beginning assets under management

 

$

 

310,644

 

 

$

 

298,563

 

 

$

 

176,113

 

Gross client cash inflows

 

 

 

17,472

 

 

 

 

17,296

 

 

 

 

6,793

 

Gross client cash outflows

 

 

 

(19,583

)

 

 

 

(17,588

)

 

 

 

(8,663

)

Net client cash flows

 

 

 

(2,111

)

 

 

 

(292

)

 

 

 

(1,870

)

Market appreciation (depreciation)

 

 

 

6,152

 

 

 

 

14,515

 

 

 

 

(2,237

)

Realizations and distributions

 

 

 

(287

)

 

 

 

—

 

 

 

 

—

 

Acquired & divested assets / Net transfers2

 

 

 

(624

)

 

 

 

(2,141

)

 

 

 

(76

)

Ending assets under management

 

 

 

313,775

 

 

 

 

310,644

 

 

 

 

171,930

 

Average assets under management

 

 

 

312,873

 

 

 

 

303,584

 

 

 

 

175,741

 

 

 

 

For the Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Beginning assets under management

 

$

 

171,930

 

 

$

 

161,322

 

Gross client cash inflows

 

 

 

59,985

 

 

 

 

26,167

 

Gross client cash outflows

 

 

 

(64,441

)

 

 

 

(33,545

)

Net client cash flows

 

 

 

(4,456

)

 

 

 

(7,377

)

Market appreciation (depreciation)

 

 

 

37,742

 

 

 

 

18,100

 

Realizations and distributions

 

 

 

(311

)

 

 

 

(2

)

Acquired assets / Net transfers2

 

 

 

108,869

 

 

 

 

(113

)

Ending assets under management

 

 

 

313,775

 

 

 

 

171,930

 

Average assets under management

 

 

 

268,806

 

 

 

 

169,658

 

1Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets.

2Three months ended September 30 includes the impact of approximately $1 billion of divested assets from the closure of three Investment Franchises in the third quarter. The year ended December 31, 2025 includes the impact of Pioneer Investments, partially offset by assets divested due to the closure of four Investment Franchises.

11

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Other Assets (Institutional)1

(unaudited; in millions)

 

 

 

For the Three Months

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2025

 

 

2024

 

Beginning other assets (institutional)

 

$

 

2,726

 

 

$

 

3,050

 

 

$

 

4,981

 

Gross client cash inflows

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Gross client cash outflows

 

 

 

—

 

 

 

 

(502

)

 

 

 

(675

)

Net client cash flows

 

 

 

—

 

 

 

 

(502

)

 

 

 

(675

)

Market appreciation (depreciation)

 

 

 

120

 

 

 

 

177

 

 

 

 

(141

)

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Acquired & divested assets / Net transfers

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Ending other assets (institutional)

 

 

 

2,846

 

 

 

 

2,726

 

 

 

 

4,165

 

Average other assets (institutional)2

 

 

 

2,788

 

 

 

 

2,873

 

 

 

 

4,363

 

 

 

 

For the Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Beginning other assets (institutional)

 

$

 

4,165

 

 

$

 

5,289

 

Gross client cash inflows

 

 

 

—

 

 

 

 

467

 

Gross client cash outflows

 

 

 

(1,949

)

 

 

 

(2,094

)

Net client cash flows

 

 

 

(1,948

)

 

 

 

(1,627

)

Market appreciation (depreciation)

 

 

 

629

 

 

 

 

504

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

Acquired & divested assets / Net transfers

 

 

 

—

 

 

 

 

—

 

Ending other assets (institutional)

 

 

 

2,846

 

 

 

 

4,165

 

Average other assets (institutional)3

 

 

 

3,328

 

 

 

 

4,883

 

1 Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class within the by asset class table and in Separate Accounts and Other Pooled Vehicles within the by vehicle table. These assets are included as part of Victory’s Regulatory Assets Under Management reported in Form ADV Part 1.

2 For the three-month periods ending December 31, 2025, September 30, 2025 and December 31, 2024 total other assets (institutional) revenue realization was 3.5 basis points, 3.3 basis points and 3.2 basis points, respectively.

3For the year ended December 31, 2025 and 2024 total other assets (institutional) revenue realization was 3.3 basis points and 3.4 basis points, respectively.

12

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management by Asset Class

(unaudited; in millions)

 

For the Three Months Ended

 

By Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mid

 

 

U.S. Small

 

 

Fixed

 

 

U.S. Large

 

 

Non-U.S.

 

 

 

 

 

 

Alternative

 

 

Total

 

 

Money Market /

 

 

Total

 

 

 

Cap Equity

 

 

Cap Equity

 

 

Income

 

 

Cap Equity

 

 

Equity

 

 

Solutions

 

 

Investments

 

 

Long-term

 

 

Short-term

 

 

AUM1

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

31,877

 

 

$

 

12,722

 

 

$

 

80,386

 

 

$

 

63,061

 

 

$

 

28,960

 

 

$

 

86,963

 

 

$

 

3,016

 

 

$

 

306,985

 

 

$

 

3,660

 

 

$

 

310,644

 

Gross client cash inflows

 

 

 

846

 

 

 

 

266

 

 

 

 

5,555

 

 

 

 

3,347

 

 

 

 

1,848

 

 

 

 

5,043

 

 

 

 

221

 

 

 

 

17,127

 

 

 

 

345

 

 

 

 

17,472

 

Gross client cash outflows

 

 

 

(2,539

)

 

 

 

(1,913

)

 

 

 

(5,723

)

 

 

 

(4,376

)

 

 

 

(1,578

)

 

 

 

(2,902

)

 

 

 

(185

)

 

 

 

(19,216

)

 

 

 

(367

)

 

 

 

(19,583

)

Net client cash flows

 

 

 

(1,694

)

 

 

 

(1,647

)

 

 

 

(169

)

 

 

 

(1,028

)

 

 

 

271

 

 

 

 

2,142

 

 

 

 

36

 

 

 

 

(2,089

)

 

 

 

(22

)

 

 

 

(2,111

)

Market appreciation (depreciation)

 

 

 

(11

)

 

 

 

185

 

 

 

 

759

 

 

 

 

1,536

 

 

 

 

1,482

 

 

 

 

2,148

 

 

 

 

9

 

 

 

 

6,109

 

 

 

 

43

 

 

 

 

6,152

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

(287

)

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(287

)

 

 

 

—

 

 

 

 

(287

)

Acquired assets / Net transfers

 

 

 

(180

)

 

 

 

(81

)

 

 

 

(145

)

 

 

 

(189

)

 

 

 

(33

)

 

 

 

(24

)

 

 

 

(24

)

 

 

 

(676

)

 

 

 

52

 

 

 

 

(624

)

Ending assets under management

 

$

 

29,993

 

 

$

 

11,179

 

 

$

 

80,544

 

 

$

 

63,380

 

 

$

 

30,680

 

 

$

 

91,228

 

 

$

 

3,038

 

 

$

 

310,042

 

 

$

 

3,733

 

 

$

 

313,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

31,833

 

 

$

 

13,140

 

 

$

 

79,752

 

 

$

 

61,654

 

 

$

 

25,576

 

 

$

 

79,988

 

 

$

 

2,986

 

 

$

 

294,930

 

 

$

 

3,632

 

 

$

 

298,563

 

Gross client cash inflows

 

 

 

819

 

 

 

 

307

 

 

 

 

5,816

 

 

 

 

1,960

 

 

 

 

2,923

 

 

 

 

4,921

 

 

 

 

216

 

 

 

 

16,962

 

 

 

 

334

 

 

 

 

17,296

 

Gross client cash outflows

 

 

 

(2,229

)

 

 

 

(1,494

)

 

 

 

(5,491

)

 

 

 

(3,930

)

 

 

 

(930

)

 

 

 

(2,962

)

 

 

 

(169

)

 

 

 

(17,206

)

 

 

 

(382

)

 

 

 

(17,588

)

Net client cash flows

 

 

 

(1,410

)

 

 

 

(1,187

)

 

 

 

325

 

 

 

 

(1,970

)

 

 

 

1,993

 

 

 

 

1,958

 

 

 

 

47

 

 

 

 

(244

)

 

 

 

(48

)

 

 

 

(292

)

Market appreciation (depreciation)

 

 

 

1,469

 

 

 

 

977

 

 

 

 

1,247

 

 

 

 

4,003

 

 

 

 

1,695

 

 

 

 

5,112

 

 

 

 

(25

)

 

 

 

14,478

 

 

 

 

37

 

 

 

 

14,515

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Acquired assets / Net transfers2

 

 

 

(14

)

 

 

 

(209

)

 

 

 

(939

)

 

 

 

(626

)

 

 

 

(304

)

 

 

 

(95

)

 

 

 

7

 

 

 

 

(2,180

)

 

 

 

38

 

 

 

 

(2,141

)

Ending assets under management

 

$

 

31,877

 

 

$

 

12,722

 

 

$

 

80,386

 

 

$

 

63,061

 

 

$

 

28,960

 

 

$

 

86,963

 

 

$

 

3,016

 

 

$

 

306,985

 

 

$

 

3,660

 

 

$

 

310,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

32,333

 

 

$

 

15,591

 

 

$

 

25,081

 

 

$

 

14,239

 

 

$

 

19,752

 

 

$

 

62,544

 

 

$

 

3,178

 

 

$

 

172,720

 

 

$

 

3,393

 

 

$

 

176,113

 

Gross client cash inflows

 

 

 

1,163

 

 

 

 

393

 

 

 

 

987

 

 

 

 

75

 

 

 

 

1,535

 

 

 

 

2,291

 

 

 

 

170

 

 

 

 

6,615

 

 

 

 

178

 

 

 

 

6,793

 

Gross client cash outflows

 

 

 

(1,881

)

 

 

 

(1,215

)

 

 

 

(1,391

)

 

 

 

(413

)

 

 

 

(1,023

)

 

 

 

(2,037

)

 

 

 

(384

)

 

 

 

(8,344

)

 

 

 

(319

)

 

 

 

(8,663

)

Net client cash flows

 

 

 

(718

)

 

 

 

(822

)

 

 

 

(404

)

 

 

 

(338

)

 

 

 

513

 

 

 

 

254

 

 

 

 

(214

)

 

 

 

(1,729

)

 

 

 

(140

)

 

 

 

(1,870

)

Market appreciation (depreciation)

 

 

 

(1,008

)

 

 

 

21

 

 

 

 

(342

)

 

 

 

279

 

 

 

 

(1,143

)

 

 

 

(100

)

 

 

 

13

 

 

 

 

(2,279

)

 

 

 

43

 

 

 

 

(2,237

)

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Acquired assets / Net transfers

 

 

 

(24

)

 

 

 

(6

)

 

 

 

66

 

 

 

 

(32

)

 

 

 

(26

)

 

 

 

(105

)

 

 

 

3

 

 

 

 

(125

)

 

 

 

48

 

 

 

 

(76

)

Ending assets under management

 

$

 

30,584

 

 

$

 

14,785

 

 

$

 

24,402

 

 

$

 

14,148

 

 

$

 

19,095

 

 

$

 

62,593

 

 

$

 

2,980

 

 

$

 

168,586

 

 

$

 

3,344

 

 

$

 

171,930

 

 

1Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets.

2Three months ended September 30, 2025 includes the impact of approximately $1 billion of divested assets from the closure of three Investment Franchises.

13

 

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management by Asset Class

(unaudited; in millions)

 

For the Year Ended

 

By Asset Class

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global /

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Mid

 

 

U.S. Small

 

 

Fixed

 

 

U.S. Large

 

 

Non-U.S.

 

 

 

 

 

 

Alternative

 

 

Total

 

 

Money Market /

 

 

Total

 

 

 

Cap Equity

 

 

Cap Equity

 

 

Income

 

 

Cap Equity

 

 

Equity

 

 

Solutions

 

 

Investments

 

 

Long-term

 

 

Short-term

 

 

AUM1

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

30,584

 

 

$

 

14,785

 

 

$

 

24,402

 

 

$

 

14,148

 

 

$

 

19,095

 

 

$

 

62,593

 

 

$

 

2,980

 

 

$

 

168,586

 

 

$

 

3,344

 

 

$

 

171,930

 

Gross client cash inflows

 

 

 

3,622

 

 

 

 

1,475

 

 

 

 

18,314

 

 

 

 

7,646

 

 

 

 

8,428

 

 

 

 

18,421

 

 

 

 

916

 

 

 

 

58,821

 

 

 

 

1,164

 

 

 

 

59,985

 

Gross client cash outflows

 

 

 

(8,121

)

 

 

 

(4,994

)

 

 

 

(18,771

)

 

 

 

(12,137

)

 

 

 

(7,131

)

 

 

 

(10,925

)

 

 

 

(939

)

 

 

 

(63,019

)

 

 

 

(1,422

)

 

 

 

(64,441

)

Net client cash flows

 

 

 

(4,500

)

 

 

 

(3,518

)

 

 

 

(458

)

 

 

 

(4,491

)

 

 

 

1,297

 

 

 

 

7,496

 

 

 

 

(23

)

 

 

 

(4,198

)

 

 

 

(258

)

 

 

 

(4,456

)

Market appreciation (depreciation)

 

 

 

1,737

 

 

 

 

353

 

 

 

 

3,506

 

 

 

 

12,367

 

 

 

 

6,836

 

 

 

 

12,677

 

 

 

 

119

 

 

 

 

37,595

 

 

 

 

146

 

 

 

 

37,742

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

(287

)

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(24

)

 

 

 

(311

)

 

 

 

—

 

 

 

 

(311

)

Acquired assets / Net transfers2

 

 

 

2,172

 

 

 

 

(440

)

 

 

 

53,381

 

 

 

 

41,356

 

 

 

 

3,452

 

 

 

 

8,463

 

 

 

 

(15

)

 

 

 

108,368

 

 

 

 

500

 

 

 

 

108,869

 

Ending assets under management

 

$

 

29,993

 

 

$

 

11,179

 

 

$

 

80,544

 

 

$

 

63,380

 

 

$

 

30,680

 

 

$

 

91,228

 

 

$

 

3,038

 

 

$

 

310,042

 

 

$

 

3,733

 

 

$

 

313,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

30,604

 

 

$

 

15,959

 

 

$

 

24,355

 

 

$

 

12,635

 

 

$

 

16,772

 

 

$

 

54,296

 

 

$

 

3,431

 

 

$

 

158,051

 

 

$

 

3,271

 

 

$

 

161,322

 

Gross client cash inflows

 

 

 

4,516

 

 

 

 

2,043

 

 

 

 

4,912

 

 

 

 

284

 

 

 

 

3,762

 

 

 

 

8,634

 

 

 

 

1,105

 

 

 

 

25,255

 

 

 

 

912

 

 

 

 

26,167

 

Gross client cash outflows

 

 

 

(7,685

)

 

 

 

(4,195

)

 

 

 

(5,905

)

 

 

 

(1,540

)

 

 

 

(2,893

)

 

 

 

(8,509

)

 

 

 

(1,618

)

 

 

 

(32,345

)

 

 

 

(1,200

)

 

 

 

(33,545

)

Net client cash flows

 

 

 

(3,169

)

 

 

 

(2,152

)

 

 

 

(993

)

 

 

 

(1,256

)

 

 

 

869

 

 

 

 

125

 

 

 

 

(513

)

 

 

 

(7,090

)

 

 

 

(287

)

 

 

 

(7,377

)

Market appreciation (depreciation)

 

 

 

3,189

 

 

 

 

1,035

 

 

 

 

924

 

 

 

 

2,873

 

 

 

 

1,570

 

 

 

 

8,290

 

 

 

 

47

 

 

 

 

17,929

 

 

 

 

172

 

 

 

 

18,100

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(2

)

 

 

 

(2

)

 

 

 

—

 

 

 

 

(2

)

Acquired assets / Net transfers

 

 

 

(40

)

 

 

 

(58

)

 

 

 

116

 

 

 

 

(104

)

 

 

 

(115

)

 

 

 

(118

)

 

 

 

17

 

 

 

 

(301

)

 

 

 

188

 

 

 

 

(113

)

Ending assets under management

 

$

 

30,584

 

 

$

 

14,785

 

 

$

 

24,402

 

 

$

 

14,148

 

 

$

 

19,095

 

 

$

 

62,593

 

 

$

 

2,980

 

 

$

 

168,586

 

 

$

 

3,344

 

 

$

 

171,930

 

 

1Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets.

2The year ended December 31, 2025 includes the impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion, partially offset by assets divested due to the closure of four Investment Franchises.

14

 

 


Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management by Region

(unaudited; in millions)

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

(in millions)

 

Amount

 

 

% of total

 

 

Amount

 

 

% of total

 

U.S.

 

$

258,975

 

 

 

83

%

 

$

165,706

 

 

 

96

%

Non-U.S.

 

 

54,799

 

 

 

17

%

 

 

6,224

 

 

 

4

%

Total AUM1&2

 

$

313,775

 

 

 

100

%

 

$

171,930

 

 

 

100

%

 

1Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets.

2Includes the impact of Pioneer Investments, partially offset by assets divested due to the closure of four Investment Franchises.

15

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management by Vehicle

(unaudited; in millions)

 

For the Three Months Ended

 

By Vehicle

 

 

 

 

 

 

 

 

 

 

 

Separate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts

 

 

 

 

 

 

 

Mutual

 

 

 

 

 

 

and Other

 

 

Total

 

 

 

Funds1

 

 

ETFs2

 

 

Vehicles3

 

 

AUM4

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

172,923

 

 

$

 

13,786

 

 

$

 

123,935

 

 

$

 

310,644

 

Gross client cash inflows

 

 

 

7,422

 

 

 

 

1,274

 

 

 

 

8,776

 

 

 

 

17,472

 

Gross client cash outflows

 

 

 

(11,115

)

 

 

 

(246

)

 

 

 

(8,222

)

 

 

 

(19,583

)

Net client cash flows

 

 

 

(3,693

)

 

 

 

1,027

 

 

 

 

555

 

 

 

 

(2,111

)

Market appreciation (depreciation)

 

 

 

3,211

 

 

 

 

233

 

 

 

 

2,709

 

 

 

 

6,152

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

(287

)

 

 

 

(287

)

Acquired assets / Net transfers5

 

 

 

(238

)

 

 

 

2

 

 

 

 

(389

)

 

 

 

(624

)

Ending assets under management

 

$

 

172,203

 

 

$

 

15,049

 

 

$

 

126,523

 

 

$

 

313,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

167,973

 

 

$

 

11,975

 

 

$

 

118,615

 

 

$

 

298,563

 

Gross client cash inflows

 

 

 

7,088

 

 

 

 

1,573

 

 

 

 

8,635

 

 

 

 

17,296

 

Gross client cash outflows

 

 

 

(9,081

)

 

 

 

(320

)

 

 

 

(8,187

)

 

 

 

(17,588

)

Net client cash flows

 

 

 

(1,993

)

 

 

 

1,252

 

 

 

 

449

 

 

 

 

(292

)

Market appreciation (depreciation)

 

 

 

8,218

 

 

 

 

560

 

 

 

 

5,737

 

 

 

 

14,515

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Acquired assets / Net transfers6

 

 

 

(1,276

)

 

 

 

—

 

 

 

 

(866

)

 

 

 

(2,141

)

Ending assets under management

 

$

 

172,923

 

 

$

 

13,786

 

 

$

 

123,935

 

 

$

 

310,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

117,044

 

 

$

 

6,694

 

 

$

 

52,375

 

 

$

 

176,113

 

Gross client cash inflows

 

 

 

3,545

 

 

 

 

1,167

 

 

 

 

2,082

 

 

 

 

6,793

 

Gross client cash outflows

 

 

 

(5,865

)

 

 

 

(130

)

 

 

 

(2,667

)

 

 

 

(8,663

)

Net client cash flows

 

 

 

(2,320

)

 

 

 

1,036

 

 

 

 

(586

)

 

 

 

(1,870

)

Market appreciation (depreciation)

 

 

 

(1,063

)

 

 

 

(146

)

 

 

 

(1,028

)

 

 

 

(2,237

)

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Acquired assets / Net transfers

 

 

 

(15

)

 

 

 

(76

)

 

 

 

15

 

 

 

 

(76

)

Ending assets under management

 

$

 

113,645

 

 

$

 

7,508

 

 

$

 

50,777

 

 

$

 

171,930

 

 

1 Includes institutional and retail share classes, money market and VIP funds.

2 Represents only ETF assets held by third parties. Excludes ETF assets held by other Victory Capital products.

3 Includes collective trust funds, wrap program accounts, UMAs, UCITS, private funds and non-U.S. domiciled pooled vehicles.

4Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets.

5Three months ended December 31, 2025 includes the impact of divested assets from one Investment Franchise closure in the fourth quarter.

6Three months ended September 30, 2025 includes the impact of approximately $1 billion of divested assets from the closure of three Investment Franchises in the third quarter.

16

 

 

Victory Capital Holdings, Inc. and Subsidiaries

Assets Under Management by Vehicle

(unaudited; in millions)

 

For the Year Ended

 

By Vehicle

 

 

 

 

 

 

 

 

 

 

 

Separate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts

 

 

 

 

 

 

 

Mutual

 

 

 

 

 

 

and Other

 

 

Total

 

 

 

Funds1

 

 

ETFs2

 

 

Vehicles3

 

 

AUM4

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

113,645

 

 

$

 

7,508

 

 

$

 

50,777

 

 

$

 

171,930

 

Gross client cash inflows

 

 

 

24,768

 

 

 

 

7,476

 

 

 

 

27,741

 

 

 

 

59,985

 

Gross client cash outflows

 

 

 

(36,240

)

 

 

 

(1,082

)

 

 

 

(27,119

)

 

 

 

(64,441

)

Net client cash flows

 

 

 

(11,472

)

 

 

 

6,394

 

 

 

 

622

 

 

 

 

(4,456

)

Market appreciation (depreciation)

 

 

 

20,651

 

 

 

 

1,062

 

 

 

 

16,029

 

 

 

 

37,742

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

(311

)

 

 

 

(311

)

Acquired assets / Net transfers5

 

 

 

49,379

 

 

 

 

85

 

 

 

 

59,405

 

 

 

 

108,869

 

Ending assets under management

 

$

 

172,203

 

 

$

 

15,049

 

 

$

 

126,523

 

 

$

 

313,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning assets under management

 

$

 

108,802

 

 

$

 

4,970

 

 

$

 

47,551

 

 

$

 

161,322

 

Gross client cash inflows

 

 

 

14,954

 

 

 

 

3,089

 

 

 

 

8,124

 

 

 

 

26,167

 

Gross client cash outflows

 

 

 

(22,408

)

 

 

 

(915

)

 

 

 

(10,222

)

 

 

 

(33,545

)

Net client cash flows

 

 

 

(7,454

)

 

 

 

2,174

 

 

 

 

(2,097

)

 

 

 

(7,377

)

Market appreciation (depreciation)

 

 

 

12,561

 

 

 

 

404

 

 

 

 

5,136

 

 

 

 

18,100

 

Realizations and distributions

 

 

 

—

 

 

 

 

—

 

 

 

 

(2

)

 

 

 

(2

)

Acquired assets / Net transfers

 

 

 

(263

)

 

 

 

(40

)

 

 

 

189

 

 

 

 

(113

)

Ending assets under management

 

$

 

113,645

 

 

$

 

7,508

 

 

$

 

50,777

 

 

$

 

171,930

 

 

1 Includes institutional and retail share classes, money market and VIP funds.

2 Represents only ETF assets held by third parties. Excludes ETF assets held by other Victory Capital products.

3 Includes collective trust funds, wrap program accounts, UMAs, UCITS, private funds and non-U.S. domiciled pooled vehicles.

4Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets.

5The year ended December 31, 2025 includes the impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion, partially offset by assets divested due to the closure of four Investment Franchises.

 

17

 

 

Information Regarding Non-GAAP Financial Measures

Victory Capital uses non-GAAP financial measures referred to as Adjusted EBITDA and Adjusted Net Income to measure the operating profitability of the Company. These measures eliminate the impact of one-time acquisition, restructuring and integration costs and demonstrate the ongoing operating earnings metrics of the Company. The Company has included these non-GAAP measures to provide investors with the same financial metrics used by management to assess the operating performance of the Company.

Adjusted EBITDA

Adjustments made to GAAP Net Income to calculate Adjusted EBITDA, as applicable, are:

•
Adding back income tax expense;
•
Adding back interest paid on debt and other financing costs, net of interest income;
•
Adding back depreciation on property and equipment;
•
Adding back other business taxes;
•
Adding back amortization expense on acquisition-related intangible assets;
•
Adding back stock-based compensation expense associated with equity awards issued from pools created in connection with the management-led buyout and various acquisitions and as a result of equity grants related to the IPO;
•
Adding back direct incremental costs of acquisitions, including restructuring costs;
•
Adding back debt issuance cost expense;
•
Adjusting for earnings/losses on equity method investments.

 

Adjusted Net Income

Adjustments made to GAAP Net Income to calculate Adjusted Net Income, as applicable, are:

•
Adding back other business taxes;
•
Adding back amortization expense on acquisition-related intangible assets;
•
Adding back stock-based compensation expense associated with equity awards issued from pools created in connection with the management-led buyout and various acquisitions and as a result of any equity grants related to the IPO;
•
Adding back direct incremental costs of acquisitions, including restructuring costs;
•
Adding back debt issuance cost expense;
•
Subtracting an estimate of income tax expense applied to the sum of the adjustments above.

 

Tax Benefit of Goodwill and Acquired Intangible Assets

 

Due to Victory Capital’s acquisitive nature, tax deductions allowed on acquired intangible assets and goodwill provide it with additional significant supplemental economic benefit. The tax benefit of goodwill and intangible assets represent the tax benefits associated with deductions allowed for intangible assets and goodwill generated from prior acquisitions in which the Company received a step-up in basis for tax purposes. Acquired intangible assets and goodwill may be amortized for tax purposes, generally over a 15-year period. The tax benefit from amortization on these assets is included to show the full economic benefit of deductions for all acquired intangible assets with a step-up in tax basis.

18