Victory Capital Holdings, Inc. Class A Common Stock · NASDAQ:VCTR
Victory Capital Holdings, Inc. Class A Common Stock — Q3 2025 Earnings Presentation
36 slides from Victory Capital Holdings, Inc. Class A Common Stock's earnings presentation, Nov 7, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Third Quarter 2025 Earnings Presentation November 7, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not
Slide 3: Agenda
Agenda Quarterly Business Overview Investment Performance Third Quarter 2025 Financial Results Appendix 3
Slide 4: Quarterly Business Overview
Quarterly Business Overview
Slide 5: Business Overview
Business Overview Total client assets of $313Bn Long-term gross flows of $17Bn Q3 2025 Long-term net flows of -$244MM Business Adjusted EBITDA of $190.5MM Highlights Adjusted EBITDA margin of 52.7% Adjusted earnings per diluted share with tax benefit of $1.63 Realized over $86MM of the
Slide 6: Non-US Business Update
Non-US Business Update 19 UCITS $52 Bn of AUM Strong Net Flow Profile Net flow positive since acquisition close Equity Net flow positive in Q3 2025 US Equity Global Equity Enhanced Income Equity Non-US Distribution Organization Fixed Income Increasing investments in pre-existing Ultras
Slide 7: ETF Growth Update
ETF Growth Update ETF AUM (Bn) YTD Net Flows $5.4 Bn $20 53% Investment Manufacturing ETFs are managed by $15 Investment Franchises or Solutions investment team $10 o Various investment themes o Active and passive $5 Distribution All retail salespeople sell $0 ETFs Also have a dedicated ETF sa
Slide 8: Investment Performance
J Victory Capital Investment Performance
Slide 9: Commitment to Long-Term Investment Performance
Commitment to Long-Term Investment Performance 56 Total Mutual Funds and ETFs with 4- or 5-Star overall ratings 64% Total Mutual Funds and ETFs AUM with 4- or 5-Star overall ratings AUM outperforming benchmarks Strategies outperforming benchmarks 77% 68% 63% 65% 64% 65% 54% 53% 1-year period 3-year
Slide 10: Long-Term Growth & Capital Allocation Strategy
Long-Term Growth & Capital Allocation Strategy Enhancing Shareholder Value by: Enhancing Balance Sheet Flexibility with: Improving platform with every strategic acquisition Capital allocation policy that supports growth strategy Evolving product set to drive organic growth Strong free cash f
Slide 11: Acquisition Opportunity Set in US
Acquisition Opportunity Set in US > $200Bn $52.4Tr Prior Transformative Acquisitions 2025 AUM: $114 Bn $100Bn - $200Bn Focus Area ~$11.1 ~68% of AUM $6.4 Trillion Trillion of AUM; AUM: $19 Bn >110 Firms 2021 $75Bn - $100Bn ~12% of AUM $2.4 Trillion AUM: $81 Bn 2019 ~127% of AUM $50Bn - $75Bn $2.3 Tr
Slide 12: Third Quarter 2025 Financial Results
Third Quarter 2025 Financial Results
Slide 13: Financial Results
Financial Results Revenue of $361.2MM GAAP Operating Income of $138MM GAAP Net Income of $1.11 per diluted share Q3 2025 Financial Adjusted EBITDA of $190.5MM Results 52.7% Adjusted EBITDA margin Adjusted Net Income with tax benefit of $141.3MM Adjusted Net Income with tax benefit of $
Slide 14: Total Client Assets
Total Client Assets Total Client Assets at Period End ($Bn) Well-diversified US Retail US Institutional US Direct Non-US distribution channels, client base, and geographies 350 313.4 US Retail 301.6 300 US Institutional 250 US Direct Non-US 200 176.1 171.4 Clients in 60 countries 150 100
Slide 15: Long-Term AUM Flows
Long-Term AUM Flows Long-Term AUM Flows ($Bn) Strong gross long-term flows for the quarter 3/31/18 Gross Flows Gross Redemptions Net Flows +10% vs Q2 2025 4th consecutive quarter of improving net long-term flows Multiple Investment Franchises generated positive net long-term 17.0 flows durin
Slide 16: Revenue
Revenue Total Revenue ($MM) • Higher quarter-over-quarter revenue 351.2 361.2 • Higher average and EOP AUM quarter-over-quarter • Fee rate in line with expected range 232.4 219.6 Operating Metrics Q4 ‘24 Q1 ‘25 Q2 ‘25 Q3 ‘25 Average Total AUM ($Bn) 175.7 173.8 285.0 303.6 Average Fee Rate (bps) 52.5
Slide 17: Expenses
Expenses Total Expenses ($MM) Compensation and other variable expenses inline with Compensation Other Operating Non-Operating expectations Cash compensation, % of revenue Lower acquisition, restructuring, and integration 264.2 120.0% expense 231.9 100.0% Achieved ~$86MM of the 80.0% expected $
Slide 18: Non-GAAP Metrics
Non-GAAP Metrics 9/30/17 Adjusted net income with tax $MM (except per-share data) benefit per diluted share up Adjusted Net Income Tax benefit ANI with tax benefit per share 4% from previous quarter $1.57 $1.63 Adjusted net income with tax $1.45 $1.36 $1.60 benefit up 6% quarter over $155.0 141.
Slide 19: Capital Management
Capital Management ($mm) 3/31/18 9/30/17 Selected Balance Sheet Items Sep 30, 2025 Interest Expense and Other Debt ($MM) Financing Costs ($MM) Cash / Cash Equivalents ($MM) 116 972 972 972 985 Debt ($MM) 985 14.7 13.2 13.2 13.1 Stockholders' Equity ($MM) 2,400 Diluted Shares Outstanding (MM) 86.8 Ne
Slide 20: Appendix
J VictoryC Appendix
Slide 21: Growth of Adjusted EPS with Tax Benefit
Growth of Adjusted EPS with Tax Benefit Quarterly EPS up 308% $1.80 Strong History of EPS Growth $1.60 $1.40 $1.20 $1.00 $0.80 IPO $0.60 Q1 2018 $0.40 $0.20 $0.00 21
Slide 22: Cash Dividends Per Share
Shareholder Value Creation since IPO Sep 30, 2025 $0.80 $64.76 $70 Cash Dividends Per $0.70 Share Total Shareholder Stock Price Return of 485% $60 Cash Dividends Per Share $0.60 $50 $0.50 Stock Price $40 $0.40 IPO: $30 $0.30 Feb 7, 2018 $20 $0.20 $13.00 $0.10 $10 $0.00 $- Shares Outstanding (MM) 90
Slide 23: Growth of Adjusted EBITDA & Margin Expansion
Growth of Adjusted EBITDA & Margin Expansion Quarterly Adjusted $190.5 EBITDA up 379% MILLION $200 52.7% $150 Adj EBITDA Margin Expanded Adjusted EBITDA 1,480bps $100 $39.8 MILLION $50 IPO Q1 2018 37.9% $0 23
Slide 24: Ongoing and Future Cash-Tax Benefits
Ongoing and Future Cash-Tax Benefits Section 338(h)(10) Election • Stepped up cost basis of acquired indefinite lived intangible assets is deductible for corporate income tax purposes over 15 years o $1.6Bn in total future tax amortization o $393MM in future cash tax savings, assuming 25% tax rate o
Slide 25: Notes and Disclosures
Notes and Disclosures 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, restruct
Slide 26: Notes and Disclosures
Notes and Disclosures Information Regarding Non-GAAP Financial Measures (cont.) 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 asset
Slide 27: Consolidated Reconciliations of Adjusted EBITDA
Consolidated Reconciliations of Adjusted EBITDA For the three months ended, (in thousands except percentages) 09/30/2024 12/31/2024 03/31/2025 06/30/2025 09/30/2025 GAAP Net income $ 81,983 $ 76,939 $ 61,975 $ 58,734 $ 96,541 GAAP Income tax expense (25,517) (21,654) (18,426) (28,252) (32,733) GAAP
Slide 28: Historical Reconciliations of Adjusted EBITDA
Historical Reconciliations of Adjusted EBITDA For the three months ended, (in thousands except percentages) 3/31/2018 6/30/2018 9/30/2018 12/18/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 GAAP Net income $ 10,524 $ 18,675 $ 20,590 $ 13,915 $ 14,527 $ 14,383 $ 25,992 $
Slide 29: Consolidated Reconciliations of Adjusted Net Income
Consolidated Reconciliations of Adjusted Net Income For the three months ended, (in thousands, except per-share data) 09/30/2024 12/31/2024 03/31/2025 06/30/2025 09/30/2025 GAAP Net Income $ 81,983 $ 76,939 $ 61,975 $ 58,734 $ 96,541 Other business taxes 366 376 922 693 637 GAAP amortization of acqu
Slide 30: Historical Reconciliations of Adjusted Net Income
Historical Reconciliations of Adjusted Net Income 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 GAAP Net Income $ 10,524 $ 18,675 $ 20,590 $ 13,915 $ 14,527 $ 14,383 $ 25,992 $ 37,589 $ 57,166 $ 44,720 $ 55,741 Other business taxes 37
Slide 31: Detailed Reconciliation of Q3 '25 Adjusted Net Income
Detailed Reconciliation of Q3 ‘25 Adjusted Net Income Three months ended September 30, 2025 (in thousands, except per-share amounts) Adjustments GAAP Amortization of Tax Benefit of Other Acquisition- Acquisition, Goodwill and U.S. GAAP Business Related Stock-Based Restructuring and Debt Issuance Tot
Slide 32: Detailed Reconciliation of Q2 '25 Adjusted Net Income
Detailed Reconciliation of Q2 ‘25 Adjusted Net Income GAAP to Non-GAAP Reconciliation Three months ended June 30, 2025 (in thousands, except per-share amounts) Adjustments GAAP Amortization Tax Benefit of Other of Acquisition- Acquisition, Goodwill and U.S. GAAP Business Related Stock-Based Restruct
Slide 33: Detailed Reconciliation of Q1 '25 Adjusted Net Income
Detailed Reconciliation of Q1 ‘25 Adjusted Net Income Three months ended March 31, 2025 (in thousands, except per-share amounts) Adjustments GAAP Amortization Tax Benefit of Other of Acquisition- Acquisition, Goodwill and U.S. GAAP Business Related Stock-Based Restructuring and Debt Issuance Total N
Slide 34: Detailed Reconciliation of Q4 '24 Adjusted Net Income
Detailed Reconciliation of Q4 ‘24 Adjusted Net Income Three months ended December 31, 2024 (in thousands, except per-share amounts) Adjustments GAAP Amortization Tax Benefit of Other of Acquisition- Acquisition, Goodwill and U.S. GAAP Business Related Stock-Based Restructuring and Debt Issuance Tota
Slide 35: Detailed Reconciliation of Q3 '24 Adjusted Net Income
Detailed Reconciliation of Q3 ‘24 Adjusted Net Income Three months ended September 30, 2024 (in thousands, except per-share amounts) Adjustments GAAP Amortization Tax Benefit of Other of Acquisition- Acquisition, Goodwill and U.S. GAAP Business Related Stock-Based Restructuring and Debt Issuance Tot
Slide 36: Notes and Disclosures
Notes and Disclosures Investing involves risk, including the potential loss of principal. There are no assurances that any fund or strategy will achieve its stated objective. All data in this presentation, unless otherwise noted, is as of September 30, 2025. Past performance does not guarantee futur
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