Victory Capital Holdings (VCTR) AI Stock Analysis

• Market Cap: $4.41B
• Dividend Yield: 3%
• Average Volume (3M): 311.87K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.11
• Revenue Growth: 33.03%
• EPS Growth: -3.55%
• Country: US
• Employees: 460
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.63
• Shares Outstanding: 64,935,455
• 10 Day Avg. Volume: 310,408
• 30 Day Avg. Volume: 311,873
• PEG Ratio: 0.38
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 4.73
• P/FCF Ratio: 12.49
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 7.35
• Enterprise Value/Ebitda: 10.03
• 1Y Price Target: $72.00
• Price Target Upside: 6.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.93
• Revenue Forecast (FY): $1.52B

• Rating: 77 Outperform
• Price Target: $78.00 ▲(14.93% Upside)

The score is driven primarily by strong financial performance (revenue growth, high profitability, improving leverage, and strong free cash flow) and a favorable earnings-call backdrop (record metrics, high EBITDA margin, synergy progress, and buybacks). Offsetting factors include technically overbought conditions and mixed recent flow/AUM disclosures, plus only moderate valuation support.

Positive Factors

High profitability and strong ROE

Sustained high net margins and a robust ROE indicate Victory Capital can convert fee revenue into durable profits. This supports reinvestment in distribution, continued buybacks, and resilience through market cycles, bolstering long-term shareholder returns and strategic flexibility.

Strong free cash flow generation

Consistent FCF growth and near-1:1 conversion of net income to cash provide financial flexibility to fund buybacks, integrate acquisitions, pay down debt, and invest in distribution. This cash conversion underpins sustainable capital allocation over coming quarters.

Successful integration and scalable distribution/ETF growth

Realized synergies from acquisitions and rapid ETF platform growth signal durable structural benefits: lower cost base and scalable, diversified distribution. Combined with expanded non-U.S. flows, this strengthens revenue sources beyond cyclical active fees.

Negative Factors

Net long-term client outflows

Sustained net outflows erode the fee-bearing asset base and reduce management fee revenue over time. Even with strong headline AUM, recurring outflows can pressure growth, requiring higher gross flows or retention improvements to stabilize long-term revenue trends.

Performance fee variability

Material reliance on performance fees increases earnings volatility because they depend on market returns and relative performance. Lower or lumpy performance fees complicate revenue predictability and planning for recurring investments or shareholder distributions.

Gross margin compression risk

A declining gross margin suggests rising costs or pricing pressure in core products. If structural, margin compression can reduce capacity to fund distribution, technology, and integration initiatives, weakening long-term profitability unless offset by higher fees or further cost synergies.

Victory Capital Holdings Business Overview & Revenue Model

Company Description

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company worldwide. It offers investment advisory, fund administration, fund compliance, fund transfer agent, and fund distribution services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. As of December 31, 2021, its franchises and solutions platform managed a set of 130 investment strategies for a range of institutional and retail clients, and direct investors. The company has strategic alliance with Xavier University of Louisiana. Victory Capital Holdings, Inc. was incorporated in 2013 and is headquartered in San Antonio, Texas.

How the Company Makes Money

Victory Capital generates revenue primarily through management fees and performance fees from its investment products. The company earns management fees based on the assets under management (AUM) across its various investment strategies, which can include mutual funds, separately managed accounts, and institutional investment products. Performance fees are earned when investment returns exceed specified benchmarks, providing an incentive for the firm to maximize client returns. Additionally, Victory Capital may benefit from revenue-sharing agreements with its distribution partners, which could include financial advisors and broker-dealers. The firm's extensive distribution network and partnerships enhance its ability to attract new clients and grow AUM, which is crucial for sustaining its revenue growth.

Victory Capital Holdings Financial Statement Overview

Summary

Victory Capital Holdings demonstrates strong financial performance with robust revenue growth and profitability. The company has improved its leverage position, enhancing financial stability. Cash flow generation is strong, supporting future growth and investment opportunities. However, attention should be paid to maintaining gross profit margins and further improving cash flow efficiency.

Income Statement

Victory Capital Holdings shows strong revenue growth with a 13.18% increase in TTM, indicating robust business expansion. The company maintains a high net profit margin of 34.05% in TTM, reflecting efficient cost management and profitability. However, the gross profit margin has decreased compared to previous years, suggesting rising costs or pricing pressures.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.42 in TTM, showing a decrease from previous years, which indicates improved leverage management. Return on equity remains strong at 22.24%, highlighting effective use of equity to generate profits. However, the equity ratio suggests moderate reliance on debt financing.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth of 24.49% in TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, showing efficient conversion of profits into cash. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	893.48M	821.03M	854.80M	890.26M	775.35M
Gross Profit	713.03M	529.77M	455.97M	455.50M	479.05M	402.51M
EBITDA	522.18M	481.37M	394.32M	440.14M	391.80M	328.94M
Net Income	294.19M	288.86M	213.16M	275.51M	278.39M	212.52M
Balance Sheet
Total Assets	4.21B	2.55B	2.54B	2.54B	2.58B	1.73B
Cash, Cash Equivalents and Short-Term Investments	115.74M	126.73M	123.55M	38.17M	69.53M	22.74M
Total Debt	1.02B	963.86M	989.27M	985.51M	1.13B	779.01M
Total Liabilities	1.81B	1.43B	1.49B	1.48B	1.65B	1.02B
Stockholders Equity	2.40B	1.12B	1.05B	1.07B	929.93M	707.54M
Cash Flow
Free Cash Flow	328.51M	338.70M	325.12M	329.97M	363.52M	242.56M
Operating Cash Flow	332.22M	339.98M	330.29M	335.21M	376.20M	250.62M
Investing Cash Flow	75.26M	-3.98M	-7.84M	-6.32M	-556.59M	-12.34M
Financing Cash Flow	-480.21M	-332.76M	-237.13M	-360.19M	227.22M	-252.70M

Victory Capital Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VCTR, the sentiment is Positive. The current price of 67.87 is above the 20-day moving average (MA) of 65.51, above the 50-day MA of 63.61, and above the 200-day MA of 63.61, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VCTR.

Victory Capital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCTR	77 Outperform	$4.41B	17.32	16.46%	3.00%	33.03%	-3.55%
APAM	75 Outperform	$3.58B	12.33	62.04%	8.72%	5.46%	2.10%
AMG	74 Outperform	$9.17B	19.91	15.95%	0.01%	1.08%	8.24%
AB	73 Outperform	$3.66B	13.24	19.77%	8.93%	―	-12.92%
FHI	72 Outperform	$4.22B	11.37	32.06%	2.46%	9.32%	53.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CNS	60 Neutral	$3.59B	22.11	31.53%	3.92%	12.73%	19.01%

Victory Capital Holdings Corporate Events

Victory Capital Reports Stable AUM Amid Q4 Client Outflows

On January 13, 2026, Victory Capital reported that as of December 31, 2025, it managed $313.8 billion in total assets under management and $2.8 billion in other assets, for total client assets of $316.6 billion, with U.S. client assets accounting for the majority. Average total AUM for December was $314.5 billion, while fourth-quarter long-term AUM net flows were negative $2.1 billion, indicating client outflows despite broadly stable asset levels across solutions, fixed income, equity, and alternative strategies; the company also set February 5, 2026, as the date for its conference call to discuss fourth-quarter 2025 financial results, signaling forthcoming detail on how these flows and asset trends may affect earnings and stakeholder returns.

The most recent analyst rating on (VCTR) stock is a Buy with a $78.00 price target. To see the full list of analyst forecasts on Victory Capital Holdings stock, see the VCTR Stock Forecast page.

Victory Capital Reports Growth in November 2025 Assets

On December 10, 2025, Victory Capital Holdings reported its assets under management as of November 30, 2025, totaling $314.8 billion, with total client assets reaching $317.7 billion. This announcement reflects a slight increase in assets from the previous month, indicating steady growth and a strong market position for Victory Capital, which could positively impact stakeholders by demonstrating the firm’s ongoing financial health and stability.

The most recent analyst rating on (VCTR) stock is a Buy with a $74.00 price target. To see the full list of analyst forecasts on Victory Capital Holdings stock, see the VCTR Stock Forecast page.

Victory Capital Reports Stable AUM Growth in October

On November 11, 2025, Victory Capital Holdings reported its total assets under management (AUM) as of October 31, 2025, amounting to $313.0 billion, with total client assets reaching $315.8 billion. The report highlights a slight increase in AUM from the previous month, indicating a stable growth trajectory. This announcement underscores Victory Capital’s strong market position and its ability to manage a diverse range of asset classes, benefiting stakeholders by potentially enhancing investment returns and maintaining competitive performance.

The most recent analyst rating on (VCTR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Victory Capital Holdings stock, see the VCTR Stock Forecast page.