Latest news with #VictoryCapitalHoldings
Business Insider
12-05-2025
- Business
- Business Insider
Analysts' Opinions Are Mixed on These Financial Stocks: Victory Capital Holdings (VCTR) and QBE Insurance Group Limited (OtherQBEIF)
Analysts have been eager to weigh in on the Financial sector with new ratings on Victory Capital Holdings (VCTR – Research Report) and QBE Insurance Group Limited (QBEIF – Research Report). Protect Your Portfolio Against Market Uncertainty Victory Capital Holdings (VCTR) Barclays analyst Benjamin Budish maintained a Hold rating on Victory Capital Holdings on May 9 and set a price target of $62.00. The company's shares closed last Friday at $59.14. According to Budish is a 5-star analyst with an average return of 15.4% and a 71.0% success rate. Budish covers the Financial sector, focusing on stocks such as Virtus Investment Partners, Intercontinental Exchange, and Apollo Global Management. Currently, the analyst consensus on Victory Capital Holdings is a Moderate Buy with an average price target of $68.86, a 16.2% upside from current levels. In a report issued on April 29, J.P. Morgan also maintained a Hold rating on the stock with a $62.00 price target. QBE Insurance Group Limited (QBEIF) Morgan Stanley analyst Andrei Stadnik maintained a Buy rating on QBE Insurance Group Limited today and set a price target of A$24.60. The company's shares closed last Wednesday at $13.50. According to Stadnik is a 4-star analyst with an average return of 7.1% and a 54.4% success rate. Stadnik covers the Financial sector, focusing on stocks such as Insurance Australia Group Limited, Macquarie Group Limited, and Insignia Financial Ltd. Currently, the analyst consensus on QBE Insurance Group Limited is a Strong Buy with an average price target of $15.12, representing a 12.0% upside. In a report issued on April 30, Goldman Sachs also maintained a Buy rating on the stock with a A$25.00 price target.
Business Wire
09-05-2025
- Business
- Business Wire
Victory Capital Reports April 2025 Total Client Assets
SAN ANTONIO--(BUSINESS WIRE)--Victory Capital Holdings, Inc. (NASDAQ: VCTR) ('Victory Capital' or the 'Company') today reported Total Assets Under Management (AUM) of $279.3 billion, Other Assets of $3.6 billion, and Total Client Assets of $282.8 billion, as of April 30, 2025. For the month of April, Average Total AUM was $275.7 billion, average Other Assets was $3.7 billion, and average Total Client Assets was $279.5 billion. Victory Capital Holdings, Inc. Total Client Assets (unaudited; in millions) 1 As of: March 31, 2025 Solutions $ 72,635 $ 63,378 Fixed Income 78,569 24,157 U.S. Mid Cap Equity 30,049 28,964 U.S. Small Cap Equity 12,421 13,182 U.S. Large Cap Equity 55,363 13,104 Global / Non-U.S. Equity 23,607 18,334 Alternative Investments 2,933 2,945 Total Long-Term Assets $ 275,579 $ 164,064 Money Market / Short Term Assets 3,703 3,404 Total Assets Under Management 2 $ 279,282 $ 167,468 By Vehicle Mutual Funds 3 $ 157,758 $ 108,392 Separate Accounts and Other Pooled Vehicles 4 111,064 48,823 ETFs 5 10,460 10,253 Total Assets Under Management 2 $ 279,282 $ 167,468 Other Assets 6 Institutional $ 3,555 $ 3,967 Total Other Assets $ 3,555 $ 3,967 Total Client Assets Total Assets Under Management $ 279,282 $ 167,468 Total Other Assets 3,555 3,967 Total Client Assets $ 282,836 $ 171,435 By Region U.S. $ 237,794 $ 165,763 Non-U.S. 45,043 5,672 Total Client Assets $ 282,836 $ 171,435 1 Due to rounding, numbers presented in these tables may not add up precisely to the totals provided. April 30, 2025 AUM includes $114 billion of assets acquired during the month. 2 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes Other Assets. 3 Includes institutional and retail share classes, money market and VIP funds. 4 Includes wrap program accounts, CITs, UMAs, UCITS, private funds, and non-U.S. domiciled pooled vehicles. 5 Represents only ETF assets held by third parties and excludes ETF assets held by other Victory Capital products. 6 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. Expand About Victory Capital Victory Capital is a diversified global asset management firm with total assets under management of $279.3 billion, and $282.8 billion in total client assets, as of April 30, 2025. The Company employs a next-generation business strategy that combines boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform. Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 12 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services. Victory Capital is headquartered in San Antonio, Texas, with offices and investment professionals in the U.S. and around the world. To learn more please visit or follow Victory Capital on Facebook, Twitter, and LinkedIn.
Business Wire
08-05-2025
- Business
- Business Wire
Victory Capital Reports Strong First Quarter Results
SAN ANTONIO, Texas--(BUSINESS WIRE)--Victory Capital Holdings, Inc. (NASDAQ: VCTR) ('Victory Capital' or 'the Company') today reported financial results for the quarter ended March 31, 2025. 'We are off to a good start in 2025 with positive momentum in a number of important areas of our business,' said David Brown, Chairman and Chief Executive Officer. 'First-quarter financial results came in strong with year-over-year increases in revenue, Adjusted EBITDA, Adjusted EBITDA margin, and earnings per share. Gross sales increased more than 41% from the fourth quarter of 2024, reaching the highest level in three years and net long-term flows improved for the second consecutive quarter. 'Our operating platform, coupled with excellent execution, lets us effectively manage through volatile market environments while maintaining strong margins. This allows us to remain focused on growth and capitalize on opportunities that arise during periods of market dislocation. 'We were pleased to have successfully closed on our multi-faceted transaction with Amundi on April 1. In addition to the increase in size and scale of our business, we have better diversification across numerous areas of our business including asset classes, investment vehicles, and geographies. Furthermore, our US distribution presence has been substantially enhanced allowing us to provide better coverage across both the intermediary and institutional channels. We are also excited about the new client opportunities that the distribution agreement with Amundi will bring us outside the US. Lastly, with an enhanced balance sheet post-closing, we have even more financial flexibility to pursue strategic growth opportunities. 'Investment performance remained strong during the first quarter, with 64%, 65%, and 79% of our AUM outperforming benchmarks over the respective 3-, 5-, and 10-year periods, ending March 31. In addition, at quarter end, more than two-thirds of our Mutual Fund and ETF AUM were rated 4- or 5-stars by Morningstar. 'Our allocation of capital remains focused on strategic growth and enhancing efficiencies. We will also continue to return excess capital to shareholders via share repurchases and dividends. Yesterday, the Board declared an increase in the quarterly cash dividend to a record high of $0.49 per share, which will be payable on June 25, 2025, to holders of record on June 10. 'As always, we continue to focus on serving our clients, which is our top priority.' Total Client Assets includes Total AUM and Other Assets. Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes Other Assets. The Company reports its financial results in accordance with generally accepted accounting principles ('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. The table below presents total AUM and certain GAAP and non-GAAP ('adjusted') financial results. Due to rounding, total AUM values and other amounts in this press release may not add up precisely to the totals provided. For the Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Assets Under Management 1 Ending $ 167,468 $ 171,930 $ 170,342 Average 173,789 175,741 163,533 AUM Long-term Flows 2 Long-term Gross $ 9,309 $ 6,615 $ 6,952 Long-term Net (1,205 ) (1,729 ) (1,028 ) AUM Money Market/Short-term Flows Money Market / Short-term Gross $ 177 $ 178 $ 236 Money Market / Short-term Net (44 ) (140 ) (99 ) AUM Total Flows Total Gross $ 9,486 $ 6,793 $ 7,187 Total Net (1,249 ) (1,870 ) (1,127 ) Consolidated Financial Results (GAAP) Revenue $ 219.6 $ 232.4 $ 215.9 AUM revenue realization (in bps) 51.2 52.5 53.0 Operating expenses 126.7 120.6 131.0 Income from operations 92.9 111.7 84.8 Operating margin 42.3 % 48.1 % 39.3 % Net income 62.0 76.9 55.7 Earnings per diluted share $ 0.96 $ 1.17 $ 0.84 Cash flow from operations 81.1 91.8 68.7 Adjusted Performance Results (Non-GAAP) 3 Adjusted EBITDA $ 116.4 $ 125.5 $ 112.4 Adjusted EBITDA margin 53.0 % 54.0 % 52.1 % Adjusted net income 78.0 85.0 72.6 Tax benefit of goodwill and acquired intangible assets 10.1 10.1 9.7 Adjusted net income with tax benefit 88.1 95.1 82.3 Adjusted net income with tax benefit per diluted share $ 1.36 $ 1.45 $ 1.25 Expand ________________________ 1 Total 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. Expand AUM, Flows and Investment Performance At March 31, 2025, Victory Capital had total client assets of $171.4 billion, assets under management of $167.5 billion, and other assets of $4.0 billion. Total AUM decreased by $4.5 billion to $167.5 billion at March 31, 2025, compared with $171.9 billion at December 31, 2024. The decrease was due to negative market action of $3.2 billion and net outflows of $1.2 billion. Total gross flows for the first quarter were $9.5 billion, including long-term gross flows of $9.3 billion. As of March 31, 2025, Victory Capital offered 125 investment strategies through its 12 autonomous Investment Franchises and Solutions Platform. The table below presents outperformance against benchmarks by AUM as of March 31, 2025. First Quarter 2025 Compared with Fourth Quarter 2024 Revenue decreased $12.8 million to $219.6 million, in the first quarter, compared with $232.4 million in the fourth quarter, due to a decrease in average total client assets, two less days in the quarter, and a decrease in revenue realization. GAAP operating margin contracted 580 basis points in the first quarter to 42.3%, down from 48.1% in the fourth quarter, due to a $6.6 million increase in acquisition-related costs and a $3.1 million increase in non-cash amounts recorded to the change in fair value of consideration payable for acquisitions. First quarter GAAP net income decreased 19.5% to $62.0 million, down from $76.9 million in the prior quarter. On a per-share basis, GAAP net income decreased 17.9% to $0.96 per diluted share in the first quarter, versus $1.17 per diluted share in the fourth quarter. Adjusted net income with tax benefit decreased 7.4% to $88.1 million, or $1.36 per diluted share, in the first quarter, down from $95.1 million, or $1.45 per diluted share, in the fourth quarter. Adjusted EBITDA decreased $9.1 million to $116.4 million in the first quarter compared to $125.5 million in the fourth quarter. Adjusted EBITDA margin contracted 100 basis points in the first quarter of 2025 to 53.0% compared with 54.0% in the prior quarter primarily due to higher seasonal payroll taxes and benefits. First Quarter 2025 Compared with First Quarter 2024 Revenue for the three months ended March 31, 2025, increased 1.7% to $219.6 million, compared with $215.9 million in the same quarter of 2024. The increase was due to higher average total client assets, partially offset by one less day in the quarter and a decrease in revenue realization. GAAP operating margin was 42.3% in the first quarter, a 300 basis point expansion from 39.3% in the same quarter of 2024. Operating expenses decreased 3.3% to $126.7 million, compared with $131.0 million in the first quarter of 2024. The decrease was primarily due to an $8.8 million decrease in amounts recorded to the change in fair value of consideration payable for acquisitions and a $3.3 million decrease in personnel compensation and benefits expense. Partially offsetting the decrease was a $7.7 million increase in acquisition-related costs. GAAP net income increased 11.3% to $62.0 million, or $0.96 per diluted share, in the first quarter compared with $55.7 million, or $0.84 per diluted share, in the same quarter of 2024. Adjusted net income with tax benefit expanded 7.0% to $88.1 million, or $1.36 per diluted share, in the first quarter, compared with $82.3 million, or $1.25 per diluted share, in the same quarter last year. Adjusted EBITDA increased 3.6% to $116.4 million, compared with $112.4 million in the same quarter of 2024. Year-over-year, adjusted EBITDA margin expanded 90 basis points to 53.0% in the first quarter of 2025, compared with 52.1% in the same quarter last year. Balance Sheet / Capital Management The total debt outstanding as of March 31, 2025 was approximately $972 million and consisted of an existing term loan balance of $625 million and the 2021 Incremental Term Loans balance of $347 million. The Company's Board of Directors approved a regular quarterly cash dividend of $0.49 per share. The dividend is payable on June 25, 2025, to shareholders of record on June 10, 2025. Conference Call, Webcast and Slide Presentation The Company will host a conference call tomorrow morning, May 9, 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 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 is a diversified global asset management firm with total assets under management of $167.5 billion, and $171.4 billion in total client assets, as of March 31, 2025. The Company employs a next-generation business strategy that combines boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform. Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 12 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services. Victory Capital is headquartered in San Antonio, Texas, with offices and investment professionals in the U.S. and around the world. To learn more please visit or follow Victory Capital on Facebook, Twitter, and LinkedIn. FORWARD-LOOKING STATEMENTS This earnings release 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 and 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 such risks and factors, they include, among others, the following: continued geopolitical uncertainty including the conflicts in Ukraine and Israel; risks associated with expected benefits of the Amundi transaction, or impact on our business of the Amundi transaction including our ability to achieve expected synergies; reductions in AUM based on investment performance, client withdrawals, difficult market conditions and other factors such as a pandemic; the nature of the Company's contracts and investment advisory agreements; the Company's ability to maintain historical returns and sustain its historical growth; the Company's dependence on third parties to market its strategies and provide products or services for the operation of its business; the Company's ability to retain key investment professionals or members of its senior management team; the Company's reliance on the technology systems supporting its operations; the Company's ability to successfully acquire and integrate new companies; 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 its 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 Victory Capital is not required to register as an "investment company" under the 1940 Act; 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; the level of control over the Company retained by Crestview GP; and other risks and factors listed under "Risk Factors" and elsewhere in the Company's filings with the SEC. Such forward-looking statements are based on numerous assumptions regarding Victory Capital's present and future business strategies and the environment in which it will operate in the future. Any forward-looking statement made in this press release speaks only as of the date hereof. Except as required by law, Victory Capital assumes no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Victory Capital Holdings, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures 1 (unaudited; in thousands except per share data and percentages) For the Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Net income (GAAP) $ 61,975 $ 76,939 $ 55,691 Income tax expense (18,426 ) (21,654 ) (16,197 ) Income before income taxes $ 80,401 $ 98,593 $ 71,888 Interest expense 12,521 13,971 15,711 Depreciation 2,168 2,228 2,269 Other business taxes 922 376 369 Amortization of acquisition-related intangible assets 5,264 5,286 5,332 Stock-based compensation 1,053 1,007 1,327 Acquisition, restructuring and exit costs 13,321 3,063 14,705 Debt issuance costs 749 981 755 Adjusted EBITDA $ 116,399 $ 125,505 $ 112,356 Adjusted EBITDA margin 53.0 % 54.0 % 52.1 % Net income (GAAP) $ 61,975 $ 76,939 $ 55,691 Adjustment to reflect the operating performance of the Company Other business taxes 922 376 369 Amortization of acquisition-related intangible assets 5,264 5,286 5,332 Stock-based compensation 1,053 1,007 1,327 Acquisition, restructuring and exit costs 13,321 3,063 14,705 Debt issuance costs 749 981 755 Tax effect of above adjustments (5,327 ) (2,679 ) (5,621 ) Adjusted net income $ 77,957 $ 84,973 $ 72,558 Adjusted net income per diluted share $ 1.20 $ 1.30 $ 1.10 Tax benefit of goodwill and acquired intangible assets $ 10,141 $ 10,141 $ 9,748 Tax benefit of goodwill and acquired intangible assets per diluted share $ 0.16 $ 0.15 $ 0.15 Adjusted net income with tax benefit $ 88,098 $ 95,114 $ 82,306 Adjusted net income with tax benefit per diluted share $ 1.36 $ 1.45 $ 1.25 Expand 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. Expand Victory Capital Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (In thousands, except for shares) December 31, 2024 Assets Cash and cash equivalents $ 175,607 $ 126,731 Receivables 95,823 100,667 Prepaid expenses 8,868 8,634 Investments, at fair value 34,511 35,213 Property and equipment, net 11,124 11,874 Goodwill 981,805 981,805 Other intangible assets, net 1,255,351 1,260,614 Other assets 20,397 22,053 Total assets $ 2,583,486 $ 2,547,591 Liabilities and stockholders' equity Accounts payable and accrued expenses $ 71,064 $ 57,951 Accrued compensation and benefits 42,361 51,648 Consideration payable for acquisition of business 143,300 139,894 Deferred tax liability, net 163,435 157,120 Other liabilities 53,997 55,479 Long-term debt, net 1 964,763 963,862 Total liabilities 1,438,920 1,425,954 Stockholders' equity Common stock, $0.01 par value per share: 2025 - 600,000,000 shares authorized, 84,376,002 shares issued and 63,925,017 shares outstanding; 2024 - 600,000,000 shares authorized, 83,947,949 shares issued and 63,653,212 shares outstanding 844 839 Additional paid-in capital 756,420 752,371 Treasury stock, at cost: 2025 - 20,450,985 shares; 2024 - 20,294,737 shares (584,051 ) (574,856 ) Accumulated other comprehensive income 15,707 18,683 Retained earnings 955,646 924,600 Total stockholders' equity 1,144,566 1,121,637 Total liabilities and stockholders' equity $ 2,583,486 $ 2,547,591 Expand 1 Balances at March 31, 2025 and December 31, 2024 are shown net of unamortized loan discount and debt issuance costs in the amount of $7.4 million and $8.3 million, respectively. The gross amount of the debt outstanding was $972.2 million as of March 31, 2025 and December 31, 2024. Expand Victory Capital Holdings, Inc. and Subsidiaries Total Client Assets (unaudited; in millions) For the Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Beginning AUM $ 171,930 $ 176,113 $ 161,322 Beginning other assets 1 4,165 4,981 5,289 Beginning total client assets 176,096 181,094 166,611 AUM net cash flows (1,249 ) (1,870 ) (1,127 ) Other assets net cash flows (277 ) (675 ) (524 ) Total client assets net cash flows (1,526 ) (2,545 ) (1,651 ) AUM market appreciation (depreciation) (3,172 ) (2,237 ) 10,178 Other assets market appreciation (depreciation) 78 (141 ) 352 Total client assets market appreciation (depreciation) (3,094 ) (2,378 ) 10,529 AUM realizations and distributions (21 ) — — Acquired & divested assets / Net transfers (20 ) (76 ) (31 ) Ending AUM 167,468 171,930 170,342 Ending other assets 3,967 4,165 5,117 Ending total client assets 171,435 176,096 175,459 Average total client assets 2 177,849 180,104 168,865 Expand 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 March 31, 2025, December 31, 2024 and March 31, 2024 total client assets revenue realization was 50.1 basis points, 51.3 basis points and 51.4 basis points, respectively. Expand Victory Capital Holdings, Inc. and Subsidiaries Total Assets Under Management 1 (unaudited; in millions) For the Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Beginning assets under management $ 171,930 $ 176,113 $ 161,322 Gross client cash inflows 9,486 6,793 7,187 Gross client cash outflows (10,736) (8,663) (8,314) Net client cash flows (1,249) (1,870) (1,127) Market appreciation (depreciation) (3,172) (2,237) 10,178 Realizations and distributions (21) — — Acquired & divested assets / Net transfers (20) (76) (31) Ending assets under management 167,468 171,930 170,342 Average assets under management 173,789 175,741 163,533 Expand 1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. Expand Victory Capital Holdings, Inc. and Subsidiaries Other Assets (Institutional) 1 (unaudited; in millions) For the Three Months March 31, December 31, March 31, 2025 2024 2024 Beginning other assets (institutional) $ 4,165 $ 4,981 $ 5,289 Gross client cash inflows — — — Gross client cash outflows (277 ) (675 ) (524 ) Net client cash flows (277 ) (675 ) (524 ) Market appreciation (depreciation) 78 (141 ) 352 Realizations and distributions — — — Acquired & divested assets / Net transfers — — — Ending other assets (institutional) 3,967 4,165 5,117 Average other assets (institutional) 2 4,060 4,363 5,332 Expand 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 March 31, 2025, December 31, 2024 and March 31, 2024 total other assets (institutional) revenue realization was 3.4 basis points, 3.2 basis points and 3.5 basis points, respectively. Expand Victory Capital Holdings, Inc. and Subsidiaries Total 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 AUM 1 March 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 1,098 445 928 82 2,137 4,363 256 9,309 177 9,486 Gross client cash outflows (1,733 ) (847 ) (1,545 ) (469 ) (3,251 ) (2,318 ) (351 ) (10,514 ) (222 ) (10,736 ) Net client cash flows (635 ) (402 ) (617 ) (386 ) (1,114 ) 2,045 (96 ) (1,205 ) (44 ) (1,249 ) Market appreciation (depreciation) (979 ) (1,194 ) 328 (630 ) 396 (1,202 ) 79 (3,202 ) 30 (3,172 ) Realizations and distributions — — — — — — (21 ) (21 ) — (21 ) Acquired assets / Net transfers (6 ) (7 ) 44 (27 ) (44 ) (57 ) 2 (94 ) 75 (20 ) Ending assets under management $ 28,964 $ 13,182 $ 24,157 $ 13,104 $ 18,334 $ 63,378 $ 2,945 $ 164,064 $ 3,404 $ 167,468 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 March 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 1,371 507 1,298 68 1,090 2,165 452 6,952 236 7,187 Gross client cash outflows (1,845 ) (925 ) (1,367 ) (332 ) (751 ) (2,410 ) (349 ) (7,980 ) (335 ) (8,314 ) Net client cash flows (474 ) (418 ) (69 ) (264 ) 339 (245 ) 103 (1,028 ) (99 ) (1,127 ) Market appreciation (depreciation) 2,795 801 176 1,555 1,133 3,749 (75 ) 10,135 42 10,178 Realizations and distributions — — — — — — — — — — Acquired assets / Net transfers (7 ) (45 ) 18 (31 ) (44 ) 33 5 (69 ) 38 (31 ) Ending assets under management $ 32,918 $ 16,297 $ 24,481 $ 13,895 $ 18,200 $ 57,833 $ 3,465 $ 167,089 $ 3,253 $ 170,342 Expand 1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. Expand 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 Funds 1 ETFs 2 Vehicles 3 Total AUM 4 March 31, 2025 Beginning assets under management $ 113,645 $ 7,508 $ 50,777 $ 171,930 Gross client cash inflows 3,323 3,061 3,102 9,486 Gross client cash outflows (6,328 ) (251 ) (4,156 ) (10,736 ) Net client cash flows (3,006 ) 2,810 (1,053 ) (1,249 ) Market appreciation (depreciation) (2,243 ) (50 ) (880 ) (3,172 ) Realizations and distributions — — (21 ) (21 ) Acquired assets / Net transfers (5 ) (15 ) — (20 ) Ending assets under management $ 108,392 $ 10,253 $ 48,823 $ 167,468 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 March 31, 2024 Beginning assets under management $ 108,802 $ 4,970 $ 47,551 $ 161,322 Gross client cash inflows 4,303 451 2,434 7,187 Gross client cash outflows (5,956 ) (449 ) (1,909 ) (8,314 ) Net client cash flows (1,653 ) 2 525 (1,127 ) Market appreciation (depreciation) 6,796 215 3,167 10,178 Realizations and distributions — — — — Acquired assets / Net transfers (48 ) 43 (26 ) (31 ) Ending assets under management $ 113,897 $ 5,229 $ 51,217 $ 170,342 Expand 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. 4 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. Expand 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.
Yahoo
11-03-2025
- Business
- Yahoo
Victory Capital Holdings (NasdaqGS:VCTR) Sees 10% Drop As Deloitte Replaces Ernst & Young As Auditor
Victory Capital Holdings experienced a 10% decline in their stock price over the past week—a notable move amidst significant shifts. The company announced a major transition in its auditing practice as Deloitte & Touche LLP replaced Ernst & Young LLP as the new auditor effective after the completion of statutory audits for 2024. While this change was proactive, the news arrives amid wider market turbulence attributed to heightened U.S. tariffs on Canadian steel and aluminum, leading to broader market caution. The Dow Jones and S&P 500 both dropped 1.2% and 0.8%, respectively, as investor concerns over tariff-related economic slowdowns increased, impacting corporate operations with global footprints. Victory Capital's significant price decrease aligns with the Nasdaq Composite's biggest decline since 2022, suggesting sensitivity to economic and policy shifts. These broader market downturns contrast with the past year's market gains of 8.8%, highlighting momentary challenges for firms like Victory Capital. Unlock comprehensive insights into our analysis of Victory Capital Holdings stock here. The last five years have seen Victory Capital Holdings deliver a substantial total return of 376.33%, reflecting strong performance over an extended period. This impressive growth is supported by robust earnings acceleration, with recent annual earnings growth significantly outpacing its five-year average. The company's high-quality earnings and strategic financial management have been key contributors, as evidenced by increased dividends and a significant share repurchase program of US$94.29 million completed last December. Meanwhile, Victory Capital's focus on value, with its Price-To-Earnings Ratio assessing favorably against industry averages, is another factor likely underpinning its long-term gains. Moreover, strategic endeavors such as the Memorandum of Understanding with Amundi in April 2024 highlight Victory Capital's ambition for global expansion, potentially enhancing future growth opportunities. Additionally, recent earnings announcements indicate continued upward momentum, with notable increases in both revenue and net income. This growth, coupled with proactive financial initiatives like the credit agreement amendment, positions Victory Capital with enhanced financial flexibility for future endeavors. See how Victory Capital Holdings measures up with our analysis of its intrinsic value versus market price. Assess the downside scenarios for Victory Capital Holdings with our risk evaluation. Have a stake in Victory Capital Holdings? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:VCTR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
Victory Capital (VCTR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended December 2024, Victory Capital Holdings (VCTR) reported revenue of $232.37 million, up 12.9% over the same period last year. EPS came in at $1.45, compared to $1.15 in the year-ago quarter. The reported revenue represents a surprise of +0.70% over the Zacks Consensus Estimate of $230.75 million. With the consensus EPS estimate being $1.37, the EPS surprise was +5.84%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Victory Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Ending Assets Under Management: $171.93 billion versus $173.46 billion estimated by four analysts on average. Total Net client cash flows: -$1.87 billion versus -$1.60 billion estimated by four analysts on average. Ending assets under management - Solutions: $62.59 billion compared to the $62.59 billion average estimate based on three analysts. Ending assets under management - U.S. Large Cap Equity: $14.15 billion versus $14.15 billion estimated by three analysts on average. Ending assets under management - U.S. Mid Cap Equity: $30.58 billion versus $30.58 billion estimated by three analysts on average. Ending assets under management - U.S. Small Cap Equity: $14.79 billion versus the three-analyst average estimate of $14.79 billion. Ending assets under management - Alternative Investments: $2.98 billion versus the three-analyst average estimate of $2.98 billion. Ending assets under management - Money Market/ Short-term: $3.34 billion compared to the $3.34 billion average estimate based on three analysts. Net client cash flows - U.S. Mid Cap Equity: -$718 million compared to the -$1.08 billion average estimate based on three analysts. Net client cash flows - U.S. Small Cap Equity: -$822 million versus the three-analyst average estimate of -$768.08 million. Revenue- Investment management fees: $183.83 million versus $181.05 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +14.4% change. Revenue- Fund administration and distribution fees: $48.55 million compared to the $49.69 million average estimate based on four analysts. The reported number represents a change of +7.6% year over year. View all Key Company Metrics for Victory Capital here>>>Shares of Victory Capital have returned +3.7% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research Sign in to access your portfolio
