Victory Capital Holdings Inc (STU:3PK)

Q2 2026 Victory Capital Holdings, Inc. Earnings Call Transcript

Aug 6, 2026 / 12:00 PM GMT

Release Date Price: €92.5 (+6.32%)

Transcript 10-Q8-K

Key Points

Positve

Record Q2 2026 results with total client assets reaching $346 billion, up 11% from Q1 and 15% year-over-year.
Record net long-term inflows of $4.2 billion, with gross flows up 43% versus the same quarter last year.
Strong investment performance: 71% of AUM outperformed benchmarks over one year, and 81% over ten years.
Pioneer integration complete, with the full $110 million in net run rate expense synergies fully realized.
ETF platform momentum: AUM up 54% year-over-year to $23.2 billion, with annualized organic growth rate of 27%.
International business gaining traction: $62.6 billion in AUM from clients outside the US, net flow positive year-to-date.
Record adjusted EBITDA of $243 million and margin expansion to 55.8%, with long-term margin guidance raised to 50%.
Strong balance sheet with net leverage at 1.0 times adjusted EBITDA, allowing for continued capital returns and M&A activity.
Active M&A pipeline with a goal of $1 trillion in AUM, supported by a fragmented market of potential targets.

Negative

Average fee rate of 47.9 basis points was at the high end of guidance, with expectations to decline to 46-47 basis points going forward.
Performance fees and annual fees recorded in Q2 are considered episodic and may not be sustainable at current levels.
The distribution of Amundi products in the US has been less successful than the distribution of Victory products internationally.
Share repurchases are expected to be opportunistic rather than a consistent run rate, which may vary quarter to quarter.
The company faces ongoing pressure from regulatory complexity, technology requirements, and distribution scale in the industry.
While the pipeline is significant, the company does not provide a dollar figure for the one-but-not-yet-funded pipeline, creating uncertainty.
Cash compensation as a percentage of revenue is expected to remain in the low to mid-20s, indicating potential cost pressures.
The company's growth is heavily reliant on successful M&A execution, which carries inherent integration risks.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VCTR.OQ - Victory Capital Holdings, Inc.
Q2 2026 Victory Capital Holdings, Inc. Earnings Call
Aug 06, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to the Victory Capital Second Quarter 2020 Call.

All callers are in listen-only mode. Following the company's prepared remarks, there will be a question-and-answer session.

If you would like to ask a question, press *1 to raise your hand. To withdraw your question, press *1 again.

I will now turn the call over to Ms. Carly Thomas, Director of Investor Relations and Responsible Business. Please go ahead, Ms. Thomas.

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Unidentified_2 [2]
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Thank you, operator, and good morning,

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