Victory Capital Reports Record Second Quarter 2026 Results

View all news Victory Capital Reports Record Second Quarter 2026 Results August 05, 2026 Second-Quarter Highlights Total Client Assets of $346.1 billion Long-term gross flows of $22.1 billion Long-term net inflows of $4.2 billion GAAP operating margin of 44.5% GAAP net income per diluted share of $1.68 Adjusted EBITDA margin of 55.8% Adjusted net income with tax benefit per diluted share of $2.21 Board authorizes regular quarterly cash dividend of $0.50 per share Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or “the Company”) today reported record financial results for the quarter ended June 30, 2026. "The second quarter was a landmark period for Victory Capital, reporting record revenue, Adjusted EBITDA, Adjusted EBITDA margin, and earnings per share,” said David C. Brown, Chairman and Chief Executive Officer. “We also achieved record total client assets, supported by an all-time high in long-term quarterly gross sales. Notably, we achieved $4.2 billion in positive long-term net flows for the quarter and have positive long-term net flows year to date, through June 30. This reflects the strategic investments we have made, the momentum we have built across our distribution channels, and the strength of our operating platform. “Investment performance remained excellent during the quarter. As of June 30, 2026, 71%, 68%, 65%, and 81% of our AUM outperformed benchmarks over the respective 1-, 3-, 5-, and 10-year periods. In addition, 60% of our rated AUM in mutual funds and ETFs was rated four or five stars overall by Morningstar. “The drivers of our record gross sales and positive net flows this quarter were broad-based. Our international distribution efforts, our U.S. institutional channel, and, within our intermediary channel, our VictoryShares ETF platform each drove meaningful flows, together producing a result that showcases the breadth and depth of our distribution platform. "We maintained a consistent fee rate and our industry-leading margins for the quarter. Our Adjusted EBITDA margin highlights the durability of our platform and the discipline we apply across every dimension of our business. "We continued to return capital to shareholders. We returned $138 million through share repurchases of 1.1 million shares of VCTR common stock and dividends paid during the quarter. “Inorganic growth remains a strategic priority. The integration of Pioneer Investments is now complete, and the full run-rate of net expense synergies has been fully recognized. Our pipeline is full and active, our standards remain high, and we only pursue transactions that make our Company better. "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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Assets Under Management1Ending $ 342,450 $ 309,835 $ 298,563 $ 342,450 $ 298,563 Average 331,345 318,746 284,977 325,045 229,383 AUM Long-term Flows2Long-term Gross $ 22,113 $ 18,946 $ 15,423 $ 41,060 $ 24,732 Long-term Net 4,201 (457 ) (660 ) 3,744 (1,865 ) AUM Money Market/Short-term FlowsMoney Market / Short-term Gross $ 311 $ 235 $ 308 $ 546 $ 485 Money Market / Short-term Net (91 ) (197 ) (144 ) (288 ) (188 ) AUM Total FlowsTotal Gross $ 22,424 $ 19,181 $ 15,731 $ 41,606 $ 25,217 Total Net 4,110 (654 ) (804 ) 3,456 (2,053 ) Consolidated Financial Results (GAAP)Revenue $ 435.4 $ 388.0 $ 351.2 $ 823.4 $ 570.8 AUM revenue realization (in bps) 47.9 47.6 49.4 47.7 50.1 Operating expenses 241.6 228.8 257.0 470.4 383.7 Income from operations 193.7 159.2 94.2 352.9 187.1 Operating margin 44.5 % 41.0 % 26.8 % 42.9 % 32.8 % Net income 139.4 112.1 58.7 251.5 120.7 Earnings per diluted share $ 1.68 $ 1.33 $ 0.68 $ 3.01 $ 1.59 Cash flow from operations 135.4 121.0 (6.6 ) 256.4 74.5 Adjusted Performance Results (Non-GAAP)3Adjusted EBITDA $ 242.7 $ 204.0 $ 178.5 $ 446.7 $ 294.9 Adjusted EBITDA margin 55.8 % 52.6 % 50.8 % 54.3 % 51.7 % Adjusted net income 172.2 142.7 122.5 314.8 200.5 Tax benefit of goodwill and acquired intangible assets 10.7 10.5 10.3 21.2 20.4 Adjusted net income with tax benefit 182.9 153.2 132.8 336.1 220.9 Adjusted net income with tax benefit per diluted share4 $ 2.21 $ 1.82 $ 1.57 $ 4.02 $ 2.96 _______________________ 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. 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. AUM, Flows and Investment Performance At June 30, 2026, Victory Capital had total client assets of $346.1 billion, assets under management of $342.5 billion, and other assets of $3.6 billion. Total AUM increased by $32.7 billion to $342.5 billion at June 30, 2026, compared with $309.8 billion at March 31, 2026. The increase was primarily due to positive market action of $28.5 billion and net inflows of $4.1 billion. As of June 30, 2026, Victory Capital offered 189 investment strategies through its multiple autonomous Investment Franchises and Solutions Platform. The table below presents outperformance against benchmarks by AUM as of June 30, 2026. Percentage of AUM Outperforming Benchmark Trailing Trailing Trailing Trailing 1-Year 3-Years 5-Years 10-Years 71% 68% 65% 81% Second Quarter 2026 Compared with First Quarter 2026 Revenue increased 12.2% to $435.4 million in the second quarter, compared with $388.0 million in the first quarter, primarily due to higher average AUM and crystallization of certain annual fees over the comparable period. GAAP operating margin expanded by 350 basis points in the second quarter to 44.5%, up from 41.0% in the first quarter, due to an increase in revenue and $8.3 million decrease in acquisition-related costs, partially offset by an increase in variable operating expenses as a result of an increase in operating results. Second quarter GAAP net income increased 24.3% to $139.4 million, up from $112.1 million in the prior quarter. Adjusted net income with tax benefit increased 19.4% to $182.9 million, or $2.21 per diluted share, in the second quarter, up from $153.2 million, or $1.82 per diluted share, in the first quarter. Adjusted EBITDA increased $38.7 million to $242.7 million in the second quarter compared to $204.0 million in the first quarter. Adjusted EBITDA margin expanded 320 basis points in the second quarter of 2026 to 55.8% compared with 52.6% in the prior quarter. Second Quarter 2026 Compared with Second Quarter 2025 Revenue for the three months ended June 30, 2026, increased 24.0% to $435.4 million, compared with $351.2 million in the same quarter of 2025 as a result of higher average AUM over the comparable period. Operating expenses were $241.6 million compared with $257.0 million in last year’s second quarter reflecting decreases in acquisition-related and restructuring and integration costs of $26.4 million and $11.4 million, respectively, partially offset by increases in variable operating expenses that rose as a result of the higher average AUM. GAAP operating margin expanded 1,770 basis points to 44.5% in the second quarter, from 26.8% in the same quarter of 2025. GAAP net income increased 137.3% to $139.4 million in the second quarter compared with $58.7 million in the same quarter of 2025. Adjusted net income with tax benefit increased 37.7% to $182.9 million, or $2.21 per diluted share, in the second quarter, compared with $132.8 million, or $1.57 per diluted share in the same quarter last year. Adjusted EBITDA increased 36.0% to $242.7 million, compared with $178.5 million in the same quarter of last year. Year-over-year, adjusted EBITDA margin expanded 500 basis points to 55.8% in the second quarter of 2026, compared with 50.8% in the same quarter last year. Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025 On April 1, 2025, the Company completed the acquisition of Amundi US and reintroduced the brand Pioneer Investments for the acquired business and investment products. Year-over-year results reflect the acquisition of Amundi US, which closed on April 1, 2025. Revenue for the six months ended June 30, 2026, increased 44.2% to $823.4 million, compared with $570.8 million in the same period of 2025 as a result of higher average AUM over the comparable period. GAAP operating margin expanded 1,010 basis points, in the six months ended June 30, 2026 to 42.9%, up from 32.8% in the same period of 2025, due to higher variable operating expenses as a result of the higher average AUM and an expanded business partially offset by decreases in acquisition-related and restructuring and integration costs of $27.5 million and $9.4 million, respectively, primarily related to the acquisition of Amundi US in 2025. Six months ended June 30, 2026 GAAP net income increased 108.4% to $251.5 million, up from $120.7 million in the prior period. Adjusted net income with tax benefit increased 52.2% to $336.1 million, or $4.02 per diluted share, in the six months ended June 30, 2026, compared with $220.9 million, or $2.96 per diluted share in the same period last year. Adjusted EBITDA increased 51.5% to $446.7 million, compared with $294.9 million in the same period of last year. Year-over-year, adjusted EBITDA margin expanded 260 basis points to 54.3% in the first half of 2026, compared with 51.7% in the same first half of last year. Balance Sheet / Capital Management The total debt outstanding as of June 30, 2026 was approximately $978 million. For the three months ended June 30, 2026, the Company repurchased approximately 1.1 million shares of Common Stock. The Company’s Board of Directors approved a regular quarterly cash dividend of $0.50 per share. The dividend is payable on September 25, 2026, to shareholders of record on September 10, 2026. Conference Call, Webcast and Slide Presentation The Company will host a conference call tomorrow morning, August 6, 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 1-833-461-5787 (domestic) or 1-585-542-9983 (international), shortly before 8:00 a.m. ET and reference the Meeting ID 504 021 405. 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 $346.1 billion in total client assets, as of June 30, 2026. 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 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 Iran, 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, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2026, which is accessible on the SEC’s website at www.sec.gov. 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. 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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 RevenueInvestment management fees $ 362,243 $ 316,369 $ 282,306 $ 678,612 $ 455,607 Fund administration and distribution fees 73,118 71,620 68,906 144,738 115,207 Total revenue 435,361 387,989 351,212 823,350 570,814 ExpensesPersonnel compensation and benefits 125,500 105,855 108,918 231,355 165,054 Distribution and other asset-based expenses 68,590 67,410 62,039 136,000 97,516 General and administrative 22,915 20,615 23,381 43,530 37,709 Depreciation and amortization 20,585 20,576 21,794 41,161 29,226 Change in value of consideration payable for acquisition of business 2,041 3,537 1,092 5,578 4,498 Acquisition-related costs (653 ) 7,658 25,780 7,005 34,530 Restructuring and integration costs 2,634 3,153 13,994 5,787 15,159 Total operating expenses 241,612 228,804 256,998 470,416 383,692 Income from operations 193,749 159,185 94,214 352,934 187,122 Operating margin 44.5 % 41.0 % 26.8 % 42.9 % 32.8 % Other income (expense)Interest income and other income 7,721 2,756 6,006 10,477 6,710 Interest expense and other financing costs (12,192 ) (14,081 ) (13,234 ) (26,273 ) (26,445 ) Loss on debt extinguishment (2,028 ) — — (2,028 ) — Total other expense, net (6,499 ) (11,325 ) (7,228 ) (17,824 ) (19,735 ) Income before income taxes 187,250 147,860 86,986 335,110 167,387 Income tax expense (47,846 ) (35,720 ) (28,252 ) (83,566 ) (46,678 ) Net income $ 139,404 $ 112,140 $ 58,734 $ 251,544 $ 120,709 Preferred stock dividends (10,018 ) (9,769 ) (9,673 ) (19,788 ) (9,673 ) Income attributable to Preferred stockholders (23,969 ) (16,846 ) (2,985 ) (40,743 ) (5,334 ) Net income attributable to common shareholders $ 105,417 $ 85,525 $ 46,076 $ 191,013 $ 105,702 Earnings per share of common stockBasic $ 1.70 $ 1.34 $ 0.69 $ 3.04 $ 1.61 Diluted 1.68 1.33 0.68 3.01 1.59 Weighted average number of shares outstandingBasic 62,151 63,635 67,239 62,889 65,484 Diluted 62,782 64,388 67,980 63,593 66,358 Dividends declared per share $ 0.50 $ 0.49 $ 0.49 $ 0.99 $ 0.96 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 Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Net income (GAAP) $ 139,404 $ 112,140 $ 58,734 $ 251,544 $ 120,709 Income tax expense (47,846 ) (35,720 ) (28,252 ) (83,566 ) (46,678 ) Income before income taxes $ 187,250 $ 147,860 $ 86,986 $ 335,110 $ 167,387 Interest expense 12,283 13,658 12,200 25,941 24,721 Depreciation 2,288 2,279 3,236 4,567 5,404 Other business taxes 431 (555 ) 693 (124 ) 1,615 Amortization of acquisition-related intangible assets 18,297 18,297 18,558 36,594 23,822 Share-based compensation 10,835 3,586 2,107 14,421 3,160 Acquisition, restructuring and exit costs 8,716 18,699 53,990 27,415 67,311 Debt issuance costs 2,617 196 755 2,813 1,504 Adjusted EBITDA $ 242,717 $ 204,020 $ 178,525 $ 446,737 $ 294,924 Adjusted EBITDA margin 55.8 % 52.6 % 50.8 % 54.3 % 51.7 % Net income (GAAP) $ 139,404 $ 112,140 $ 58,734 $ 251,544 $ 120,709 Adjustment to reflect the operating performance of the CompanyOther business taxes 431 (555 ) 693 (124 ) 1,615 Amortization of acquisition-related intangible assets 18,297 18,297 18,558 36,594 23,822 Share-based compensation 10,835 3,586 2,107 14,421 3,160 Acquisition, restructuring and exit costs 8,716 18,699 53,990 27,415 67,311 Debt issuance costs 2,617 196 755 2,813 1,504 Tax effect of above adjustments (8,142 ) (9,683 ) (12,330 ) (17,825 ) (17,657 ) Adjusted net income $ 172,158 $ 142,680 $ 122,507 $ 314,838 $ 200,464 Adjusted net income per diluted share2 $ 2.08 $ 1.69 $ 1.45 $ 3.77 $ 2.68 Weighted average number of shares outstanding - diluted (GAAP) 62,782 64,388 67,980 63,593 66,358 Weighted average number of shares outstanding - diluted (Non-GAAP)2 82,818 84,341 84,801 83,587 74,723 Tax benefit of goodwill and acquired intangible assets $ 10,716 $ 10,515 $ 10,255 $ 21,231 $ 20,396 Tax benefit of goodwill and acquired intangible assets per diluted share2 $ 0.13 $ 0.13 $ 0.12 $ 0.25 $ 0.28 Adjusted net income with tax benefit $ 182,874 $ 153,195 $ 132,762 $ 336,069 $ 220,860 Adjusted net income with tax benefit per diluted share2 $ 2.21 $ 1.82 $ 1.57 $ 4.02 $ 2.96 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. Victory Capital Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets (In thousands, except for per share amounts) June 30, 2026December 31, 2025AssetsCash and cash equivalents $ 70,126 $ 163,690 Receivables 244,330 181,141 Prepaid expenses 22,422 16,071 Investments, at fair value 91,672 99,394 Property and equipment, net 21,418 23,833 Goodwill 1,235,940 1,235,940 Other intangible assets, net 2,441,447 2,477,617 Operating lease right-of-use assets 46,610 48,650 Other assets 1,256 1,514 Total assets $ 4,175,221 $ 4,247,850 Liabilities and stockholders' equityAccounts payable and accrued expenses $ 77,525 $ 72,387 Accrued compensation and benefits 85,499 86,355 Consideration payable for acquisition of business 53,199 87,564 Deferred tax liability, net 492,135 479,792 Operating lease liabilities 44,165 45,610 Other liabilities 79,662 81,399 Long-term debt, net1 967,974 970,014 Total liabilities 1,800,159 1,823,121 Stockholders' equityCommon stock, $0.01 par value per share:2026 - 600,000 shares authorized, 88,554 shares issued and 61,561 shares outstanding; 2025 - 600,000 shares authorized, 87,867 shares issued and 64,150 shares outstanding 886 879 Preferred stock, $0.01 par value per share:2026 - 100,000 shares authorized, 20,037 shares issued and outstanding; 2025 - 100,000 shares authorized, 19,937 shares issued and outstanding 200 199 Additional paid-in capital 2,128,399 2,102,938 Treasury stock, at cost: 2026 - 26,993 shares; 2025 - 23,717 shares (1,028,046 ) (786,008 ) Accumulated other comprehensive income 7,033 9,020 Retained earnings 1,266,590 1,097,701 Total stockholders' equity 2,375,062 2,424,729 Total liabilities and stockholders' equity $ 4,175,221 $ 4,247,850 1 Balances at June 30, 2026 and December 31, 2025 are shown net of unamortized loan discount and debt issuance costs in the amount of $9.6 million and $12.5 million, respectively. The gross amount of debt outstanding was $977.6 million and $982.5 million at June 30, 2026 and December 31, 2025, respectively. Victory Capital Holdings, Inc. and Subsidiaries Total Client Assets (unaudited; in millions) For the Three Months Ended June 30, March 31, June 30, 2026 2026 2025 Beginning AUM $ 309,835 $ 313,775 $ 167,468 Beginning other assets1 3,268 2,846 3,967 Beginning total client assets 313,103 316,621 171,435 AUM net cash flows 4,110 (654 ) (804 ) Other assets net cash flows — 390 (1,170 ) Total client assets net cash flows 4,110 (264 ) (1,973 ) AUM market appreciation (depreciation) 28,510 (2,797 ) 20,247 Other assets market appreciation (depreciation) 343 32 253 Total client assets market appreciation (depreciation) 28,853 (2,765 ) 20,500 AUM realizations and distributions (5 ) (456 ) (3 ) Acquired & divested assets / Net transfers3 — (33 ) 111,654 Ending AUM 342,450 309,835 298,563 Ending other assets 3,611 3,268 3,050 Ending total client assets 346,061 313,103 301,613 Average total client assets2 334,856 321,784 288,568 For the Six Months Ended June 30, June 30, 2026 2025 Beginning AUM $ 313,775 $ 171,930 Beginning other assets1 2,846 4,165 Beginning total client assets 316,621 176,096 AUM net cash flows 3,456 (2,053 ) Other assets net cash flows 390 (1,446 ) Total client assets net cash flows 3,846 (3,499 ) AUM market appreciation (depreciation) 25,713 17,075 Other assets market appreciation (depreciation) 375 331 Total client assets market appreciation (depreciation) 26,089 17,406 AUM realizations and distributions (461 ) (24 ) Acquired & divested assets / Net transfers3 (33 ) 111,634 Ending AUM 342,450 298,563 Ending other assets 3,611 3,050 Ending total client assets 346,061 301,613 Average total client assets4 328,320 233,209 1 Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class within the 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 June 30, 2026, March 31, 2026 and June 30, 2025 total client assets revenue realization was 47.4 basis points, 47.2 basis points and 49.4 basis points, respectively. 3 Includes the impact of Pioneer Investments as of April 1, 2025, increasing our AUM by $114.6 billion. 4 For the six-month periods ending June 30, 2026 and 2025 total client assets revenue realization was 47.3 basis points and 50.1 basis points, respectively. Victory Capital Holdings, Inc. and Subsidiaries Total Assets Under Management1 (unaudited; in millions) For the Three Months Ended June 30, March 31, June 30, 2026 2026 2025 Beginning assets under management $ 309,835 $ 313,775 $ 167,468 Gross client cash inflows 22,424 19,181 15,731 Gross client cash outflows (18,314 ) (19,835 ) (16,534 ) Net client cash flows 4,110 (654 ) (804 ) Market appreciation (depreciation) 28,510 (2,797 ) 20,247 Realizations and distributions (5 ) (456 ) (3 ) Acquired & divested assets / Net transfers2 — (33 ) 111,654 Ending assets under management 342,450 309,835 298,563 Average assets under management 331,345 318,746 284,977 For the Six Months Ended June 30, June 30, 2026 2025 Beginning assets under management $ 313,775 $ 171,930 Gross client cash inflows 41,606 25,217 Gross client cash outflows (38,150 ) (27,270 ) Net client cash flows 3,456 (2,053 ) Market appreciation (depreciation) 25,713 17,075 Realizations and distributions (461 ) (24 ) Acquired assets / Net transfers2 (33 ) 111,634 Ending assets under management 342,450 298,563 Average assets under management 325,045 229,383 1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. 2 Includes the impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion. Victory Capital Holdings, Inc. and Subsidiaries Other Assets (Institutional)1 (unaudited; in millions) For the Three Months June 30, March 31, June 30, 2026 2026 2025 Beginning other assets (institutional) $ 3,268 $ 2,846 $ 3,967 Gross client cash inflows — 627 — Gross client cash outflows — (237 ) (1,170 ) Net client cash flows — 390 (1,170 ) Market appreciation (depreciation) 343 32 253 Realizations and distributions — — — Acquired & divested assets / Net transfers — — — Ending other assets (institutional) 3,611 3,268 3,050 Average other assets (institutional)2 3,511 3,039 3,591 For the Six Months Ended June 30, June 30, 2026 2025 Beginning other assets (institutional) $ 2,846 $ 4,165 Gross client cash inflows 627 — Gross client cash outflows (237 ) (1,446 ) Net client cash flows 390 (1,446 ) Market appreciation (depreciation) 375 331 Realizations and distributions — — Acquired & divested assets / Net transfers — — Ending other assets (institutional) 3,611 3,050 Average other assets (institutional)3 3,275 3,826 1 Includes low-fee (2 to 4 bps) institutional assets, previously reported in the Solutions asset class within the 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 June 30, 2026, March 31, 2026 and June 30, 2025 total other assets (institutional) revenue realization was 3.4 basis points, 3.5 basis points and 3.1 basis points, respectively. 3 For the six-month periods ending June 30, 2026 and 2025 total other assets (institutional) revenue realization was 3.5 basis points and 3.2 basis points, respectively. 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 June 30, 2026Beginning assets under management $ 29,283 $ 10,535 $ 79,716 $ 59,798 $ 31,473 $ 92,396 $ 3,033 $ 306,235 $ 3,599 $ 309,835 Gross client cash inflows 571 286 8,305 1,894 3,879 6,740 439 22,113 311 22,424 Gross client cash outflows (2,274 ) (1,302 ) (5,640 ) (2,917 ) (1,895 ) (3,718 ) (166 ) (17,913 ) (402 ) (18,314 ) Net client cash flows (1,703 ) (1,016 ) 2,666 (1,023 ) 1,984 3,022 272 4,201 (91 ) 4,110 Market appreciation (depreciation) 3,709 1,815 999 7,636 4,006 10,250 65 28,480 30 28,510 Realizations and distributions — — — — — — (5 ) (5 ) — (5 ) Acquired assets / Net transfers (4 ) (3 ) 31 (21 ) (22 ) (28 ) (1 ) (47 ) 47 — Ending assets under management $ 31,285 $ 11,331 $ 83,412 $ 66,390 $ 37,441 $ 105,641 $ 3,365 $ 338,864 $ 3,585 $ 342,450 March 31, 2026Beginning assets under management $ 29,993 $ 11,179 $ 80,544 $ 63,380 $ 30,680 $ 91,228 $ 3,038 $ 310,042 $ 3,733 $ 313,775 Gross client cash inflows 776 250 5,070 3,057 2,789 6,718 287 18,946 235 19,181 Gross client cash outflows (2,418 ) (1,329 ) (5,639 ) (3,956 ) (1,830 ) (3,960 ) (270 ) (19,403 ) (432 ) (19,835 ) Net client cash flows (1,643 ) (1,079 ) (569 ) (899 ) 959 2,757 17 (457 ) (197 ) (654 ) Market appreciation (depreciation) 942 438 (13 ) (2,632 ) (140 ) (1,594 ) 170 (2,829 ) 32 (2,797 ) Realizations and distributions — — (266 ) — — — (190 ) (456 ) — (456 ) Acquired assets / Net transfers (9 ) (3 ) 21 (50 ) (26 ) 5 (1 ) (64 ) 31 (33 ) Ending assets under management $ 29,283 $ 10,535 $ 79,716 $ 59,798 $ 31,473 $ 92,396 $ 3,033 $ 306,235 $ 3,599 $ 309,835 June 30, 2025Beginning assets under management $ 28,964 $ 13,182 $ 24,157 $ 13,104 $ 18,334 $ 63,378 $ 2,945 $ 164,064 $ 3,404 $ 167,468 Gross client cash inflows 850 457 6,014 2,266 1,520 4,093 222 15,423 308 15,731 Gross client cash outflows (1,597 ) (740 ) (6,012 ) (3,385 ) (1,373 ) (2,742 ) (233 ) (16,083 ) (451 ) (16,534 ) Net client cash flows (748 ) (284 ) 2 (1,118 ) 147 1,351 (11 ) (660 ) (144 ) (804 ) Market appreciation (depreciation) 1,233 385 1,172 7,482 3,263 6,620 55 20,210 37 20,247 Realizations and distributions — — — — — — (3 ) (3 ) — (3 ) Acquired assets / Net transfers2 2,194 (143 ) 54,420 42,376 3,833 8,639 — 111,318 335 111,654 Ending assets under management $ 31,643 $ 13,140 $ 79,752 $ 61,844 $ 25,576 $ 79,988 $ 2,986 $ 294,930 $ 3,633 $ 298,563 1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. 2 Includes the impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion. Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Asset Class (unaudited; in millions) For the Six Months EndedBy Asset ClassGlobal /U.S. MidU.S. SmallFixedU.S. LargeNon-U.S.AlternativeTotalMoney Market /Cap EquityCap EquityIncomeCap EquityEquitySolutionsInvestmentsLong-termShort-termTotal AUM1June 30, 2026Beginning assets under management $ 29,993 $ 11,179 $ 80,544 $ 63,380 $ 30,680 $ 91,228 $ 3,038 $ 310,042 $ 3,733 $ 313,775 Gross client cash inflows 1,347 536 13,375 4,951 6,668 13,458 726 41,060 546 41,606 Gross client cash outflows (4,693 ) (2,631 ) (11,278 ) (6,873 ) (3,725 ) (7,678 ) (437 ) (37,316 ) (834 ) (38,150 ) Net client cash flows (3,346 ) (2,095 ) 2,096 (1,922 ) 2,943 5,780 289 3,744 (288 ) 3,456 Market appreciation (depreciation) 4,651 2,253 986 5,004 3,866 8,656 236 25,651 62 25,713 Realizations and distributions — — (266 ) — — — (195 ) (461 ) — (461 ) Acquired assets / Net transfers (13 ) (5 ) 52 (72 ) (48 ) (23 ) (2 ) (112 ) 79 (33 ) Ending assets under management $ 31,285 $ 11,331 $ 83,412 $ 66,390 $ 37,441 $ 105,641 $ 3,365 $ 338,864 $ 3,585 $ 342,450 June 30, 2025Beginning 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 1,947 902 6,943 2,349 3,656 8,456 478 24,732 485 25,217 Gross client cash outflows (3,331 ) (1,587 ) (7,557 ) (3,854 ) (4,623 ) (5,060 ) (585 ) (26,597 ) (673 ) (27,270 ) Net client cash flows (1,383 ) (685 ) (614 ) (1,505 ) (967 ) 3,396 (107 ) (1,865 ) (188 ) (2,053 ) Market appreciation (depreciation) 254 (809 ) 1,500 6,852 3,659 5,417 134 17,008 67 17,075 Realizations and distributions — — — — — — (24 ) (24 ) — (24 ) Acquired assets / Net transfers2 2,188 (150 ) 54,464 42,349 3,789 8,582 2 111,224 410 111,634 Ending assets under management $ 31,643 $ 13,140 $ 79,752 $ 61,844 $ 25,576 $ 79,988 $ 2,986 $ 294,930 $ 3,633 $ 298,563 1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. 2 Includes the impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion. Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Region (unaudited; in millions) As of June 30, 2026 2025 (in millions) Amount % of total Amount % of total U.S. $ 279,879 82 % $ 250,035 84 % Non-U.S. 62,571 18 % 48,528 16 % Total AUM1 $ 342,450 100 % $ 298,563 100 % 1 Total AUM includes both discretionary assets under management and non-discretionary assets under advisement and excludes other assets. Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Vehicle (unaudited; in millions) For the Three Months EndedBy VehicleSeparateAccountsMutualand OtherFunds1ETFs2Vehicles3Total AUM4June 30, 2026Beginning assets under management $ 167,775 $ 16,401 $ 125,659 $ 309,835 Gross client cash inflows 7,271 1,535 13,618 22,424 Gross client cash outflows (10,174 ) (341 ) (7,799 ) (18,314 ) Net client cash flows (2,903 ) 1,194 5,819 4,110 Market appreciation (depreciation) 15,849 1,576 11,084 28,510 Realizations and distributions — — (5 ) (5 ) Acquired assets / Net transfers (25 ) — 25 — Ending assets under management $ 180,696 $ 19,171 $ 142,583 $ 342,450 March 31, 2026Beginning assets under management $ 172,203 $ 15,049 $ 126,523 $ 313,775 Gross client cash inflows 7,793 1,770 9,618 19,181 Gross client cash outflows (11,372 ) (464 ) (7,999 ) (19,835 ) Net client cash flows (3,579 ) 1,306 1,619 (654 ) Market appreciation (depreciation) (849 ) 79 (2,027 ) (2,797 ) Realizations and distributions — — (456 ) (456 ) Acquired assets / Net transfers — (33 ) — (33 ) Ending assets under management $ 167,775 $ 16,401 $ 125,659 $ 309,835 June 30, 2025Beginning assets under management $ 108,392 $ 10,253 $ 48,823 $ 167,468 Gross client cash inflows 6,935 1,568 7,227 15,731 Gross client cash outflows (9,716 ) (264 ) (6,554 ) (16,534 ) Net client cash flows (2,781 ) 1,305 672 (804 ) Market appreciation (depreciation) 11,465 319 8,463 20,247 Realizations and distributions — — (3 ) (3 ) Acquired assets / Net transfers5 50,897 97 60,660 111,654 Ending assets under management $ 167,973 $ 11,975 $ 118,615 $ 298,563 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. 5 Includes impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion. Victory Capital Holdings, Inc. and Subsidiaries Assets Under Management by Vehicle (unaudited; in millions) For the Six Months EndedBy VehicleSeparateAccountsMutualand OtherFunds1ETFs2Vehicles3Total AUM4June 30, 2026Beginning assets under management $ 172,203 $ 15,049 $ 126,523 $ 313,775 Gross client cash inflows 15,065 3,305 23,236 41,606 Gross client cash outflows (21,547 ) (805 ) (15,797 ) (38,150 ) Net client cash flows (6,482 ) 2,500 7,439 3,456 Market appreciation (depreciation) 15,000 1,656 9,058 25,713 Realizations and distributions — — (461 ) (461 ) Acquired assets / Net transfers (25 ) (33 ) 25 (33 ) Ending assets under management $ 180,696 $ 19,171 $ 142,583 $ 342,450 June 30, 2025Beginning assets under management $ 113,645 $ 7,508 $ 50,777 $ 171,930 Gross client cash inflows 10,258 4,630 10,329 25,217 Gross client cash outflows (16,044 ) (515 ) (10,710 ) (27,270 ) Net client cash flows (5,786 ) 4,115 (381 ) (2,053 ) Market appreciation (depreciation) 9,222 270 7,583 17,075 Realizations and distributions — — (24 ) (24 ) Acquired assets / Net transfers5 50,892 82 60,660 111,634 Ending assets under management $ 167,973 $ 11,975 $ 118,615 $ 298,563 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. 5 Includes the impact of Pioneer Investments as of April 1, 2025, increasing the Company’s AUM by $114.6 billion. 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 share-based compensation expense associated with equity awards in connection with acquisitions and certain one-time performance-based shares;Adding back direct incremental costs of acquisitions, including restructuring costs;Adding back debt issuance cost expense; 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 share-based compensation expense associated with equity awards in connection with acquisitions and certain one-time performance-based shares;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. Source: Victory Capital Holdings, Inc. Multimedia Files: View all news