Victory Capital recently released its 10-Q report. Victory Capital Holdings, Inc. is an asset management company based in San Antonio, Texas, operating in the United States and internationally. It serves institutions, intermediaries, retirement platforms, and individual investors with actively and passively managed mutual funds, ETFs, separate accounts, variable insurance products, alternative investments, private closed-end funds, and a 529 education savings plan.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
For the three months ended March 31, 2026, Victory reported total client assets of $313.1 billion, including $309.8 billion of assets under management and $3.3 billion of other assets. Average AUM was $318.7 billion, up from $173.8 billion a year earlier, reflecting the addition of Pioneer Investments on April 1, 2025, which the company said became its largest investment franchise.
AUM at March 31, 2026 declined by $3.9 billion, or 1.3%, from $313.8 billion at December 31, 2025. The company said the decline came from $2.8 billion of negative market action and $0.7 billion of net outflows. Gross flows in the quarter totaled $19.2 billion, including $18.9 billion of long-term gross flows, compared with $9.5 billion of gross flows and $9.3 billion of long-term gross flows in the first quarter of 2025.
Revenue for the quarter was $388.0 million, up from $219.6 million a year earlier. Net income rose to $112.1 million from $62.0 million. Adjusted EBITDA was $204.0 million, equal to 52.6% of revenue, compared with $116.4 million, or 53.0% of revenue, in the prior-year quarter. Adjusted net income with tax benefit was $153.2 million, versus $88.1 million in the first quarter of 2025.
Revenue realization on average AUM declined to 47.6 basis points from 51.2 basis points. The company’s AUM net flows were negative $654 million, compared with negative $1.249 billion in the prior-year period. Short-term net flows were negative $197 million, while long-term net flows were negative $457 million.
Victory said 58 of its mutual funds and ETFs carried Morningstar ratings of four or five stars, and 68% of fund and ETF AUM was rated four or five stars. By strategy AUM, 71% beat benchmarks over one year, 67% over three years, 68% over five years, and 81% over ten years. On an equal-weighted basis, 69% outperformed over one year, 67% over three years, 70% over five years, and 70% over ten years.
The company’s total client assets moved from $316.6 billion at the start of the quarter to $313.1 billion at quarter-end. That change reflected $264 million of net cash outflows, $2.8 billion of market depreciation, and $489 million of realizations, distributions, and net transfers. Other assets ended the quarter at $3.268 billion, up from $2.846 billion at the start of the period.
By asset class, Solutions represented $92.4 billion of AUM at March 31, 2026. Fixed income was $79.7 billion, U.S. mid cap equity was $29.3 billion, global/non-U.S. equity was $31.5 billion, and U.S. small cap equity was $10.5 billion. Today the company's shares have moved 4.17% to a price of $85.72. For more information, read the company's full 10-Q submission here.
