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What were the key takeaways from Victory Capital's earnings call?

- **Q3 Record Performance**: $313B AUM, 10% QoQ gross flows, $191M EBITDA, 4% EPS growth.
- **Integration Success**: $86M of $110M synergies achieved, ahead of schedule.
- **Global Expansion**: $52B non-U.S. AUM, 53% ETF growth, UCITS top quartile performance.
- **M&A Ambition**: $1T AUM goal, strategic $50-200B deals, cautious alternatives approach.
- **Financial Strength**: 52.7% EBITDA margin, $163M shareholder returns, strong balance sheet.

**【CEO Summary Section】**
- **Record-Q3 Performance**: Total assets reached $313 billion, with long-term gross flows up 10% QoQ to $17 billion. Adjusted EBITDA hit $191 million, margin of 52.7%, and EPS rose 4% to $1.63.
- **Pioneer Integration Success**: Achieved $86 million of $110 million net expense synergies, ahead of schedule. U.S. distribution teams fully integrated, with no client impact.
- **Global Expansion Momentum**: $52 billion AUM from 60 countries, launching new UCITS products. Victory Shares ETFs saw $5.4B net flows YTD, 53% growth.
- **M&A Ambition**: Targeting $1T AUM, focusing on $50-200B AUM firms. Selective in alternatives, prioritizing income strategies.

**【CFO Financial Commentary】**
- **Revenue Growth**: $361.2M (+3% QoQ), fee rate 47.2bps. Adjusted EBITDA $190.5M (+6%), net income $141.3M (+6%).
- **Capital Returns**: Repurchased 1.8M shares, $163M returned to shareholders (record high). Balance sheet strong: $116M cash, 1.1x leverage.
- **Expense Efficiency**: Compensation 22.8% of revenue. Synergies on track for $100M by Q1 2026, final $10M over next 12 months.

**【Q&A Highlights】**
- **M&A Strategy**: Focus on strategic, accretive deals. Open to mega-deals but prioritizing $50-200B targets. Alternatives interest in curated income strategies.
- **Non-U.S. Growth**: 2026 sales ramp-up via Amundi network. UCITS performance top quartile, 11th percentile ranking.
- **Risks & Pipeline**: Integration risks mitigated via structuring. Pipeline active, with no immediate constraints on execution.
- **Fee Rate Stability**: 46-47bps expected, stable despite mix shifts. Performance fees minimal (~1-2bps annualized).

Victory Capital Holdings, Inc. (VCTR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

VCTR

VCTR fundamentals

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