Victory Capital Holdings, Inc. Class A Common Stock · NASDAQ:VCTR
Victory Capital Holdings, Inc. Class A Common Stock — Q2 2025 Earnings Presentation
33 slides from Victory Capital Holdings, Inc. Class A Common Stock's earnings presentation, Aug 8, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
Second Quarter 2025 Earnings Presentation August 8, 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 Second Quarter 2025 Financial Results Appendix 3
Slide 4: Quarterly Business Overview
Quarterly Business Overview
Slide 5: Business Overview
Business Overview Total client assets of $301.6Bn Long-term gross flows of $15.4Bn Long-term net flows of -$660MM Q2 2025 Adjusted EBITDA of $178.5MM Business Adjusted EBITDA margin of 50.8% Highlights Adjusted earnings per diluted share with tax benefit of $1.57 Closed acquisition of
Slide 6: Investment Performance
J Victory Capital Investment Performance
Slide 7: Commitment to Long-Term Investment Performance
Commitment to Long-Term Investment Performance 57 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 73% 67% 66% 67% 60% 58% 56% 56% 1-year period 3-year
Slide 8: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results
Slide 9: Financial Results Q2 2025
Financial Results Revenue of $351.2MM GAAP Operating Income of $94.2MM GAAP Net Income of $0.68 per diluted share Q2 2025 Financial Adjusted EBITDA of $178.5MM Results 50.8% Adjusted EBITDA margin Adjusted Net Income with tax benefit of $132.8MM Adjusted Net Income with tax benefit of
Slide 10: Total Client Assets
Total Client Assets Total Client Assets at Period End ($Bn) Well-diversified US Retail US Institutional US Direct Non-US distribution channels, client base, and geographies 301.6 US Retail US Institutional US Direct Non-US 181.1 176.1 171.4 Q3 '24 Q4 '24 Q1 '25 Q2 '25 10
Slide 11: Long-Term AUM Flows
Long-Term AUM Flows Long-Term AUM Flows ($Bn) Strong gross long-term flows for the quarter 3/31/18 Gross Flows Gross Redemptions Net Flows +66% vs Q1 2025 +165% vs Q2 2024 Third consecutive quarter of 15.4 improving long-term net flows Multiple Investment Franchises 9.3 generated positive
Slide 12: Revenue
Revenue Total Revenue ($MM) • Fee rate declined 1.8 basis 351.2 points Less than expected due to positive asset mix and fee realization in quarter 225.6 232.4 219.6 Normalized fee rate expected to be 46-47 bps Operating Metrics Q3 ‘24 Q4 ‘24 Q1 ‘25 Q2 ‘25 Average Total AUM ($Bn) 171.9 175.7 173.
Slide 13: Expenses
Expenses Total Expenses ($MM) Expenses increased inline with addition of Pioneer Compensation Other Operating Non-Operating Investments and increased Cash compensation, % of revenue investments in distribution channels 264.2 120.0% Achieved ~$70MM of the 100.0% expected $110MM in total net expen
Slide 14: Non-GAAP Metrics
Non-GAAP Metrics 9/30/17 Adjusted net income with tax $MM (except per-share data) benefit up 51% ANI Tax Benefit ANI with tax benefit per diluted share Adjusted EBITDA up 53% from $155.0 $1.57 previous quarter $1.45 $1.60 $1.35 $1.36 132.8 Adjusted net income with tax $1.40 $130.0 benefit per
Slide 15: Capital Management
Capital Management ($mm) 3/31/18 9/30/17 Selected Balance Sheet Items June 30, 2025 Interest Expense and Other Debt ($MM) Financing Costs ($MM) Cash / Cash Equivalents ($MM) 108 992 972 972 972 16.4 Debt ($MM) 972 14.7 13.2 13.2 Stockholders' Equity ($MM) 2,465 Diluted Shares Outstanding (MM) 84.6 N
Slide 16: Appendix
J VictoryC Appendix
Slide 17: 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 $396MM in future cash tax savings, assuming 25% tax rate o
Slide 18: 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 19: Shareholder Value Creation since IPO
Shareholder Value Creation since IPO August 6, 2025 $69.19 Cash Dividends 0.8 Per Share Total Shareholder $65.00 0.7 Stock Price Return of 521% $55.00 0.6 $45.00 0.5 IPO: $35.00 0.4 Feb 7, 2018 $25.00 0.3 $13.00 $15.00 0.2 $5.00 0.1 0 $(5.00) Impact of Share Repurchases on Shares Outstanding Diluted
Slide 20: Growth of Adjusted EBITDA & Margin Expansion
Growth of Adjusted EBITDA & Margin Expansion Quarterly Adjusted EBITDA up 348% Adjusted EBITDA Margin Expanded 1,290 bps $178.5 MILLION $190 $170 50.8% $150 Adjusted EBITDA Margin $130 $110 Adjusted EBITDA $39.8 $90 MILLION $70 $50 $30 37.9% $10 -$10 Adj EBITDA ($mm) 20
Slide 21: 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% $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 21
Slide 22: 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 23: 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 24: Consolidated Reconciliations of Adjusted EBITDA
Consolidated Reconciliations of Adjusted EBITDA For the three months ended, (in thousands except percentages) 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 GAAP Net income $ 74,251 $ 81,983 $ 76,939 $ 61,975 $ 58,734 GAAP Income tax expense 21,524 (25,517) (21,654) (18,426) (28,252) GAAP in
Slide 25: 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 26: Consolidated Reconciliations of Adjusted Net Income
Consolidated Reconciliations of Adjusted Net Income For the three months ended, (in thousands, except per-share data) 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 GAAP Net Income $ 74,251 $ 81,983 $ 76,939 $ 61,975 $ 58,734 Other business taxes 414 366 376 922 693 GAAP amortization of acqu
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 June 30, 2025. Past performance does not guarantee future res
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