Victory Capital Holdings, Inc. Class A Common Stock · NASDAQ:VCTR
Victory Capital Holdings, Inc. Class A Common Stock — Q1 2026 Earnings Presentation
36 slides from Victory Capital Holdings, Inc. Class A Common Stock's earnings presentation, May 7, 2026
Slide 1: First Quarter 2026 Earnings Presentation
First Quarter 2026 Earnings Presentation May 7, 2026
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 First Quarter 2026 Financial Results Appendix 3
Slide 4: Quarterly Business Overview
Quarterly Business Overview
Slide 5: Q1 2026 Highlights
Q1 2026 Highlights vs Q4 2025 vs Q1 2025 ▪ Total client assets of $313Bn ↓ 1% ↑ 83% ▪ Long-term gross flows of $19Bn ↑11% ↑ 104% Q1 2026 Business ▪ Long-term net flows of -$457MM ↑ $1,632MM ↑ $748MM Highlights ▪ Adjusted EBITDA of $204MM ↑ 3% ↑ 75% ▪ Adjusted EBITDA margin of ↓ 20bps ↓ 40bps 52.6% ▪
Slide 6: ETF Platform Update
ETF Platform Update ETF AUM (Bn) Q1 26 Net Flows $1.3 Bn AUM up 7% QoQ Gaining Momentum ▪ ETF AUM up 53% Y-o-Y $20 ▪ AUM CAGR of 28% since 2017 Distribution $15 ▪ Investing in intermediary platform partnerships ▪ Winning new platform placements and home office recommendations $10 ▪ Commenced selling
Slide 7: International Business Update
International Business Update $55Bn 23 UCITS Products Equity Fixed Income Assets Under Management • US Equity • Ultrashort 60 • Global Equity • Core and Core-Plus • Enhanced Income Equity • Corporate Credit Countries with clients Global Multi-Asset • Investment Grade 29 • Income • Non-investment gra
Slide 8: Investment Performance
Investment Performance
Slide 9: Commitment to Long-Term Investment Performance
Commitment to Long-Term Investment Performance 58 Total Mutual Funds and ETFs with 4- or 5-Star overall ratings 68% Total Mutual Funds and ETFs AUM with 4- or 5-Star overall ratings AUM outperforming benchmarks Strategies outperforming benchmarks 81% 69% 70% 70% 71% 67% 67% 68% 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: First Quarter 2026 Financial Results
First Quarter 2026 Financial Results
Slide 13: Financial Results
Financial Results ▪ Revenue of $388MM ▪ GAAP Operating Income of $159MM ▪ GAAP Net Income of $1.33 per diluted share Q1 2026 Financial ▪ Adjusted EBITDA of $204MM Results ▪ Adjusted EBITDA margin of 52.6% ▪ Adjusted Net Income with tax benefit of $153MM ▪ Adjusted Net Income with tax benefit of $1.8
Slide 14: Total Client Assets
Total Client Assets Total Client Assets at Period End ($Bn) ▪ Well-diversified distribution US Retail US Institutional US Direct International channels, client base, and geographies ➢ US Retail 313.4 316.6 313.1 301.6 ➢ US Institutional ➢ US Direct ➢ International ▪ Clients in 60 countries Q2 '25 Q3
Slide 15: Long-Term AUM Flows
Long-Term AUM Flows Long-Term AUM Flows ($Bn) 3/31/18 ▪ Quarterly gross long-term flows of Gross Flows Gross Redemptions Net Flows $18.9Bn ➢ Up 23% since the first full Gross Flows up 23% quarter following the Pioneer Investments acquisition 18.9 17.0 17.1 17.1 18.9 ▪ Multiple Investment Franchises
Slide 16: Revenue
Revenue Total Revenue ($MM) 388.0 • Revenue up 4% quarter- 374.1 351.2 361.2 over-quarter ➢ Up 77% vs Q1 2025 • Higher average AUM Q-o-Q and Y-o-Y • Average fee rate up Q-o-Q Operating Metrics Q2 ‘25 Q3 ‘25 Q4 ‘25 Q1 ‘26 Average Total AUM ($Bn) 285.0 303.6 312.9 318.7 Average Fee Rate (bps) 49.4 47.
Slide 17: Expenses
Expenses Total Expenses ($MM) ▪ Compensation and other variable expenses in line Compensation Other Operating Non-Operating with expectations Cash compensation, % of revenue ▪ Q1 compensation reflects the seasonal increase in 264.2 120.0% 232.5 240.1 annual bonuses and payroll 231.9 100.0% taxes 80.
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 2% quarter over quarter $1.78 $1.82 ▪ Up 34% vs Q1 2025 $180.0 $1.57 $1.63 $1.75 ▪ Adjusted net income with tax $155.0 151.7
Slide 19: Capital Management
Capital Management ($mm) 3/31/18 Selected Balance Sheet Items Mar 31, 2026 Cash Interest Debt ($MM) Expense ($MM) Cash / Cash Equivalents ($MM) 76 972 985 983 980 Debt ($MM) 980 16.3 16.6 15.1 14.0 Stockholders' Equity ($MM) 2,360 Diluted Shares Outstanding (MM) 84.3 Net Debt / Adjusted EBITDA 1.1x
Slide 20: Appendix
Appendix
Slide 21: Growth of Adjusted EPS with Tax Benefit
Growth of Adjusted EPS with Tax Benefit Quarterly EPS up 355% $2.00 Strong History $1.80 of EPS Growth $1.60 $1.40 $1.20 $1.00 $0.80 IPO Q1 2018 $0.60 $0.40 $0.20 $0.00 21
Slide 22: Cash Dividends Per Share
Shareholder Value Creation since IPO May 5, 2026 $0.80 Cash Dividends Per Share $81.26 $90 $0.70 Stock Price Total Shareholder $80 Return of 646% $70 Cash Dividends Per Share $0.60 $60 $0.50 Stock Price $50 $0.40 IPO: $40 $0.30 Feb 7, 2018 $30 $0.20 $13.00 $20 $0.10 $10 $0.00 $- WA Diluted Shares Ou
Slide 23: Adjusted EBITDA
Growth of Adjusted EBITDA & Margin Expansion Quarterly Adjusted $204.0MM EBITDA up 413% $200 $150 52.6% Adjusted EBITDA Adj EBITDA Margin Expanded 1,470bps $100 IPO Q1 2018 $39.8MM $50 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 $1.4Bn in total future tax amortization o $350MM 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) 03/31/2025 06/30/2025 09/30/2025 12/31/2025 3/31/2026 GAAP Net income $ 61,975 $ 58,734 $ 96,541 $ 112,812 $ 112,140 GAAP Income tax expense (18,426) (28,252) (32,733) (28,847) (35,720) 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) 03/31/2025 06/30/2025 09/30/2025 12/31/2025 3/31/2026 GAAP Net Income $ 61,975 $ 58,734 $ 96,541 $ 112,812 $ 112,140 Other business taxes 922 693 637 1,101 (555) GAAP amortization of
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 '26 Adjusted Net Income
Detailed Reconciliation of Q1 ‘26 Adjusted Net Income Three months ended March 31, 2026 (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 '25 Adjusted Net Income
Detailed Reconciliation of Q4 ‘25 Adjusted Net Income Three months ended December 31, 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 Tota
Slide 33: 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 34: Detailed Reconciliation of Q2 '25 Adjusted Net Income
Detailed Reconciliation of Q2 ‘25 Adjusted Net Income 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 Restructuring and Debt Issuance Total No
Slide 35: 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 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, 2026. Past performance does not guarantee future re
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