Victory Capital (VCTR) Q1 2025 Earnings Call May 09, 2025 08:00 AM ET Company Participants Matthew Dennis - Chief of Staff & Director of Investor RelationsDavid Brown - Chairman of the Board of Directors & CEOMichael Policarpo - President, CFO & Chief Administrative OfficerAlexander Blostein - Managing DirectorRandy Binner - Managing DirectorMichael Cyprys - Managing DirectorKenneth Lee - Vice President Conference Call Participants Michael Cho - AnalystNone - Analyst Operator Good morning, and welcome to th ...

Victory Capital (VCTR) Q1 2025 Earnings Call May 09, 2025 08:00 AM ET Speaker0 Good morning, and welcome to the Victory Capital First Quarter twenty twenty five Earnings Conference Call. All callers are on a listen only mode. Following the company's prepared remarks, there will be a question and answer session. I will now turn the call over to Mr. Matthew Dennis, Chief of Staff and Director of Investor Relations. Please go ahead, Mr. Dennis. Speaker1 Thank you. Before I turn the call over to David Brown, I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-38388 Victory Capital Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisd ...

Victory Capital Holdings (VCTR) reported $219.6 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 1.7%. EPS of $1.36 for the same period compares to $1.25 a year ago.The reported revenue represents a surprise of -2.87% over the Zacks Consensus Estimate of $226.09 million. With the consensus EPS estimate being $1.38, the EPS surprise was -1.45%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

Victory Capital Holdings (VCTR) came out with quarterly earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.38 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.45%. A quarter ago, it was expected that this investment management firm would post earnings of $1.37 per share when it actually produced earnings of $1.45, delivering a surprise of 5.84%.Over the last ...

First Quarter 2025 Earnings Presentation May 9, 2025 This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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," ...

Exhibit 99.1 NEWS RELEASE Victory Capital Reports Strong First Quarter Results First-Quarter Highlights San Antonio, Texas, May 8, 2025 — 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 yea ...

Wall Street analysts expect Victory Capital Holdings (VCTR) to post quarterly earnings of $1.38 per share in its upcoming report, which indicates a year-over-year increase of 10.4%. Revenues are expected to be $226.09 million, up 4.7% from the year-ago quarter. Over the last 30 days, there has been a downward revision of 1.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course ...

Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $175.5 billion for February 2025. This reflected a 0.6% decline from $176.5 billion as of Jan. 31, 2024.By asset class, VCTR’s U.S. mid cap equity AUM decreased 2.9% from the January level to $30.4 billion. The U.S. small Cap equity AUM of $14.2 billion dipped 5.3%. The global/non-U.S. equity AUM rose 5.8% to $20.6 billion. The U.S. large cap equity AUM decreased 3.7% to $13.9 billion.Victory Capital recorded $65.5 billion in So ...

Assets Under Management (AUM) - Total client assets increased to $176.1 billion as of December 31, 2024, up from $17.9 billion in August 2013 following the management-led buyout[318]. - Assets under management (AUM) rose by $10.6 billion, or approximately 6.6%, to $171.9 billion from $161.3 billion at December 31, 2023, primarily driven by positive market action of $18.1 billion[325]. - Total Assets Under Management (AUM) as of December 31, 2024, reached $171.93 billion, an increase from $161.32 billion in 2023, representing a growth of approximately 6.5%[338]. - Long-term AUM increased to $168.59 billion in 2024 from $158.05 billion in 2023, reflecting a year-over-year growth of about 6.5%[338]. - Fixed Income AUM slightly increased to $24.40 billion in 2024 from $24.36 billion in 2023, while U.S. Large Cap Equity AUM rose to $14.15 billion from $12.64 billion, indicating a growth of approximately 11.9%[338]. - Solutions AUM saw a significant increase to $62.59 billion in 2024, up from $54.30 billion in 2023, marking a growth of around 15.3%[338]. - The average AUM for 2024 was $169.7 billion, compared to $153.5 billion in 2023[328]. - Long-term gross inflows were $25.3 billion for the year ended December 31, 2024, compared to $22.7 billion in 2023[325]. - Total AUM increased by $10.6 billion, or 6.6%, to $171.9 billion at December 31, 2024, from $161.3 billion at December 31, 2023, driven by positive market movement of $18.1 billion, partially offset by net outflows of $7.4 billion[343]. Financial Performance - Total revenue for the year ended December 31, 2024, was $893.5 million, compared to $821.0 million for the year ended December 31, 2023[326]. - Net income increased to $288.9 million for the year ended December 31, 2024, up from $213.2 million in 2023[326]. - Adjusted EBITDA for the year ended December 31, 2024, was $475.6 million, with an adjusted EBITDA margin of 53.2%, compared to $418.0 million and 50.9% in 2023[327]. - Net income for 2024 was $288.9 million, an increase of $75.7 million, or 35.5%, compared to $213.2 million in 2023[375]. - Earnings per share (diluted) increased to $4.38 in 2024, up from $3.12 in 2023, reflecting a growth of 40.5%[375]. - Adjusted Net Income for 2024 was $312.9 million, representing a 16.0% increase from $269.7 million in 2023[409]. Cash Flows and Expenses - The Company recorded net cash provided by operating activities of $339.979 million in 2024, an increase of $9.688 million from $330.291 million in 2023[440]. - Cash used in investing activities decreased to $3.979 million in 2024 from $7.841 million in 2023, primarily due to a decrease in purchases of property and equipment[443]. - Cash used in financing activities increased by $95.6 million to $332.763 million in 2024 from $237.132 million in 2023, mainly due to payment of consideration for acquisition and repayment of long-term senior debt[444]. - Personnel compensation and benefits represent the most significant category of expense, including salaries, incentive compensation, and acquisition-related compensation[359]. - Total operating expenses decreased by $26.6 million, or 5.4%, to $466.0 million in 2024 from $492.6 million in 2023[375]. Market and Client Flows - Net client cash flows for 2024 were negative at $(1.63) billion, compared to $(0.59) billion in 2023, indicating a decline in client inflows[333]. - Market appreciation contributed $504 million to AUM in 2024, down from $690 million in 2023, reflecting a decrease of approximately 27%[333]. - The company experienced a net client cash flow decline of $(7,377) million in 2024, indicating challenges in client retention[340]. - Net outflows were primarily driven by $3.2 billion in U.S. mid cap equity strategies, $2.2 billion in U.S. small cap equity strategies, and $1.3 billion in U.S. large cap equity strategies[344]. Acquisitions and Strategic Initiatives - The company completed the acquisition of WestEnd Advisors on December 31, 2021, enhancing its ETF strategy offerings[319]. - The company also acquired New Energy Capital on November 1, 2021, focusing on clean energy infrastructure investments[320]. - The company aims to maintain a diversified client base across various asset classes and distribution channels to enhance AUM stability[334]. - The company has adjusted its asset class categorization starting January 2022, impacting the reported figures for prior periods[339]. Interest and Financing - Interest expense and other financing costs increased by $2.6 million to $63.8 million in 2024, attributed to a higher average interest rate[400]. - The company incurred $1.0 million in upfront fees and other costs related to the Fifth Amendment to the 2019 Credit Agreement, which extended the maturity date of the $100.0 million revolving facility[429]. - The Company executed a Swap to fix the interest rate at 3.215% on $450 million of its outstanding Term Loan, which was later adjusted to 3.149% after the Swap Amendment[432].