Victory Capital Holdings ( (VCTR) ) has released its Q1 earnings. Here is a breakdown of the information Victory Capital Holdings presented to its investors.
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Victory Capital Holdings, Inc. is a diversified global asset management firm based in San Antonio, Texas, offering a wide range of investment products and services through its 12 autonomous Investment Franchises and Solutions Platform. The company caters to institutions, intermediaries, retirement platforms, and individual investors.
Victory Capital reported strong financial results for the first quarter of 2025, with total client assets reaching $171.4 billion. The company saw a significant increase in gross sales, marking the highest level in three years, and improved net long-term flows for the second consecutive quarter. The Board of Directors authorized an increase in the regular quarterly cash dividend to $0.49 per share.
Key financial metrics for the quarter include a GAAP operating margin of 42.3% and a GAAP net income per diluted share of $0.96. Adjusted EBITDA margin was reported at 53.0%, with adjusted net income per diluted share at $1.36. The company successfully closed a transaction with Amundi, enhancing its business scale, diversification, and U.S. distribution presence.
Despite a decrease in revenue and net income compared to the previous quarter, Victory Capital showed year-over-year growth in revenue and net income. The company maintained strong investment performance, with a significant portion of its assets under management outperforming benchmarks over various periods.
Looking ahead, Victory Capital remains focused on strategic growth and capital management, with plans to continue returning excess capital to shareholders through share repurchases and dividends. The company is well-positioned to capitalize on new client opportunities and pursue strategic growth initiatives.