Victory Capital Holdings, Inc. Class A Common Stock · NASDAQ:VCTR
Victory Capital Holdings, Inc. Class A Common Stock — Q1 2025 Earnings Presentation
36 slides from Victory Capital Holdings, Inc. Class A Common Stock's earnings presentation, May 9, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation May 9, 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. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “e
Slide 3: Agenda
Agenda Quarterly Business Overview Strategic Partnership with Amundi Investment Performance First Quarter 2025 Financial Results Appendix 3
Slide 4: Quarterly Business Overview
Quarterly Business Overview
Slide 5: Business Overview
Business Overview Total client assets of $171.4bn Long-term gross flows of $9.3bn; net flows of -$1.2bn Q1 2025 ETF gross flows of $3.1bn; net flows of $2.8bn Highlights Q1 adjusted earnings per diluted share with tax benefit of $1.36 Adjusted EBITDA of $116.4MM Adjusted EBITDA margin of
Slide 6: Strategic Partnership with Amundi
Strategic Partnership with Amundi
Slide 7: Larger, More Scaled, and Diversified Company
Larger, More Scaled, and Diversified Company Total Assets Projected Net Expense Synergies $286 Billion $110 Million Asset Class Vehicle Channel Geography 1% 1% 4% 21% 15% 27% 24% 43% 41% 55% 85% 28% 55% Equity Alternatives Mutual Fund Institutional US Fixed Income Money Market Separate Accounts and
Slide 8: Investing Strategically to Enhance Distribution
Investing Strategically to Enhance Distribution Expanded coverage and increased resources across the US Significantly larger team of sales and support professionals focusing on both institutional and intermediary channels More data and technology to enhance distribution effectiveness Enhanced
Slide 9: Investment Performance
J Victory Capital Investment Performance
Slide 10: Commitment to Long-Term Investment Performance
Commitment to Long-Term Investment Performance 45 Total Mutual Funds and ETFs with 4- or 5-Star overall ratings 67% Total Mutual Funds and ETFs AUM with 4- or 5-Star overall ratings AUM outperforming benchmarks Strategies outperforming benchmarks 63% 64% 79% 59% 64% 65% 48% 47% 1-year period 3-year
Slide 11: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results
Slide 12: Financial Results
Financial Results Revenue of $219.6MM GAAP Operating Income of $92.9MM GAAP Operating margin of 42.3% Q1 2025 GAAP Net Income of $0.96 per diluted share Financial Adjusted EBITDA of $116.4MM Results Adjusted EBITDA margin of 53.0% Adjusted Net Income with tax benefit of $88.1MM ANI p
Slide 13: Total Client Assets
Total Client Assets Total Client Assets at Period End ($Bn) Well-diversified Retail Institutional Direct distribution channels and client base 181.1 176.1 Retail 173.8 171.4 Institutional Direct Q2 '24 Q3 '24 Q4 '24 Q1 '25 Pioneer Investments’ AUM of $115 billion as of March 31, is not inclu
Slide 14: Long-Term AUM Flows
Long-Term AUM Flows Long-Term AUM Flows ($Bn) Gross flows rose during the 3/31/18 quarter Gross Flows Gross Redemptions Net Flows +41% vs Q4 2024 ETF gross flows of $3.1bn 9.3 ETF net flows of +$2.8bn 6.6 Two large redemptions 5.9 offset positive net flows 5.8 for the quarter Pioneer Inv
Slide 15: Revenue
Revenue Total Revenue ($MM) First quarter revenue was $250 impacted by: 232.4 225.6 Market action and a reduction 219.6 219.6 in average AUM Fewer days in the first quarter $200 Product mix shift $150 $100 Operating Metrics Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1 ‘25 Average Total AUM ($Bn) 167.5 171.9 175.
Slide 16: Expenses
Expenses Total Expenses ($MM) Compensation expenses Compensation Other Operating Non-Operating and Distribution & Other Cash compensation, % of revenue AUM related expenses calibrated with revenue 139.2 133.8 120.0% 123.8 Q1 compensation 118.1 100.0% expense includes annual seasonal uptick relat
Slide 17: Non-GAAP Metrics
Non-GAAP Metrics 9/30/17 Second highest adjusted EPS $MM (except per-share data) with tax benefit in Company ANI Tax Benefit ANI with tax benefit per diluted share history $1.45 $1.50 15th quarter with margins $125.0 $1.35 $1.36 equal to or above 50% $1.31 $1.40 $1.30 Maintaining long-term $10
Slide 18: Capital Management
Capital Management ($mm) 3/31/18 9/30/17 Selected Balance Sheet Items March 31, 2025 Interest Expense and Other Debt ($MM) Financing Costs ($MM) Cash / Cash Equivalents ($MM) 176 992 992 972 972 16.3 16.4 Debt ($MM) 972 14.7 13.2 Stockholders' Equity ($MM) 1,145 Diluted Shares Outstanding (MM) 64.7
Slide 19: Appendix
J VictoryC Appendix
Slide 20: 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 21: Shareholder Value Creation since IPO
Shareholder Value Creation since IPO 0.8 Cash Dividends Per Share Total Shareholder Return of 415% $60.00 Stock Price 0.7 0.6 $57.87 $50.00 March 31, 2025 0.5 $40.00 0.4 IPO: $30.00 Feb 7, 2018 0.3 $13.00 $20.00 0.2 $10.00 0.1 0 $- Impact of Share Repurchases on Shares Outstanding Diluted Shares out
Slide 22: Growth of Adjusted EBITDA & Margin Expansion
Growth of Adjusted EBITDA & Margin Expansion Quarterly Adjusted EBITDA up 192% Adjusted EBITDA Margin Expanded 1,510 bps 140 $116.4 MILLION 120 53.0% 100 Adjusted EBITDA Margin 80 Adjusted EBITDA 60 $39.8 MILLION 40 37.9% 20 0 Adj EBITDA ($mm) 22
Slide 23: Growth of Adjusted EPS with Tax Benefit
Growth of Adjusted EPS with Tax Benefit Strong history of EPS growth Quarterly Adjusted EPS with Tax Benefit up 240% $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 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) 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 GAAP Net income $ 55,691 $ 74,251 $ 81,983 $ 76,939 $ 61,975 GAAP Income tax expense (16,197) 21,524 (25,517) (21,654) (18,426) GAAP in
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) 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 GAAP Net Income $ 55,691 $ 74,251 $ 81,983 $ 76,939 $ 61,975 Other business taxes 369 414 366 376 922 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 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 32: 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 33: 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 34: Detailed Reconciliation of Q2 '24 Adjusted Net Income
Detailed Reconciliation of Q2 ‘24 Adjusted Net Income (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 Non-GAAP Acquired Basis Taxes Intan
Slide 35: Detailed Reconciliation of Q1 '24 Adjusted Net Income
Detailed Reconciliation of Q1 ‘24 Adjusted Net Income (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 Non-GAAP Acquired Basis Taxes Intan
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 March 31, 2025. Past performance does not guarantee future re