Victory Capital Holdings Inc Reports Record Asset Growth, Q2 2025 Earnings Highlights

Victory Capital Holdings reported record asset growth, with total client assets increasing 76% QoQ to $300 bln. Quarterly gross long-term flows reached $15.4 bln, while net outflows were $660 mln. Adjusted EBITDA was $179 mln, and adjusted net income per share was $1.57. The company increased its share repurchase plan to $500 mln and improved its net leverage ratio to 1.2 times.

Victory Capital Holdings, Inc. (VCTR) reported a significant increase in total client assets, with a 76% quarter-over-quarter (QoQ) growth to $300 billion. The company also achieved robust sales momentum, with quarterly gross long-term flows accelerating to $15.4 billion, while net outflows were $660 million. These results reflect the company's strong performance and strategic initiatives, including the successful integration of the Amundi U.S. acquisition.

Adjusted EBITDA for the quarter was $179 million, and adjusted net income per share was $1.57, both of which exceeded expectations. The company's improved financial performance is a testament to its strategic focus on global expansion and product diversification. Victory Capital Holdings also increased its share repurchase plan to $500 million, the largest in its history, and managed to reduce its net leverage ratio to 1.2 times, indicating a healthier financial position.

The company's management highlighted the progress made in integrating the Amundi U.S. business, achieving $70 million in net expense synergies by quarter end. Additionally, the company launched new products, including the VictoryShares Pioneer Asset-Based Income ETF and two new international free cash flow ETFs, which contributed to a significant increase in ETF assets under management to $15 billion.

Looking ahead, Victory Capital Holdings remains optimistic about its global expansion opportunities. The company's strategic partnership with Amundi is expected to facilitate the registration and go-to-market for new products in the next few quarters. The company's focus on organic growth and margin discipline positions it to capitalize on global opportunities across both active and passive investment strategies.

References:
[1] https://seekingalpha.com/news/4482611-victory-capital-outlines-500m-buyback-plan-and-110m-synergy-target-while-expanding-global-etf
[2] https://www.nasdaq.com/articles/victory-capital-holdings-vctr-surpasses-q2-earnings-and-revenue-estimates