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Victory Capital Holdings
(NASDAQ:VCTR)
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Rating:82Outperform
Price Target:
$124.00
▲(27.57% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by strong financial performance (high profitability and high-quality free cash flow) and supportive technical momentum (price well above key moving averages with positive MACD). The latest earnings call further strengthens the outlook via raised long-term margin guidance, record results, and realized synergies. Valuation is the main offset, as the P/E is moderate rather than clearly cheap, with a modest dividend yield.
Positive Factors
High-quality free cash flow
Victory's free cash flow converts nearly all reported earnings into cash and grew strongly in the TTM period. Durable, high-quality FCF supports sustainable shareholder returns, debt reduction, and opportunistic M&A or buybacks, providing a stable funding base irrespective of short-term AUM swings.
Negative Factors
Episodic revenue components
Portions of reported revenue are episodic rather than recurring management fees, introducing structural volatility into quarterly fee recognition and margin comparability. Over the medium term, reliance on episodic items can make earnings lumpy, complicating forecasting and masking underlying organic fee trends.
Read all positive and negative factors
Positive Factors
Negative Factors
High-quality free cash flow
Victory's free cash flow converts nearly all reported earnings into cash and grew strongly in the TTM period. Durable, high-quality FCF supports sustainable shareholder returns, debt reduction, and opportunistic M&A or buybacks, providing a stable funding base irrespective of short-term AUM swings.
Read all positive factors
Victory Capital Holdings Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down where Victory Capital earns its revenue—management fees, performance fees, advisory or distribution—and shows which businesses drive growth and profitability. Reveals how dependent results are on AUM and market returns versus recurring or higher-margin businesses, highlighting where fee pressure or client outflows could hurt earnings and where strategic shifts could boost margins.
Breaks down where Victory Capital earns its revenue—management fees, performance fees, advisory or distribution—and shows which businesses drive growth and profitability. Reveals how dependent results are on AUM and market returns versus recurring or higher-margin businesses, highlighting where fee pressure or client outflows could hurt earnings and where strategic shifts could boost margins.
Data provided by:
The Fly
The FlyVictory Capital Holdings (VCTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.85B
Dividend Yield1.73%
Average Volume (3M)496.15K
Price to Earnings (P/E)20.7
Beta (1Y)1.21
Revenue Growth50.24%
EPS Growth33.56%
CountryUS
Employees699
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)5.49
Shares Outstanding61,509,570
10 Day Avg. Volume538,004
30 Day Avg. Volume496,154
Financial Highlights & Ratios
PEG Ratio-2.01
Price to Book (P/B)1.70
Price to Sales (P/S)3.16
P/FCF Ratio17.43
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$104.40Price Target Upside7.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)7.48
Revenue Forecast (FY)$1.59B
Victory Capital Holdings Business Overview & Revenue Model
Company Description
Victory Capital Holdings, Inc. operates as a global asset management enterprise, along with its various subsidiaries. The firm provides an extensive suite of services, encompassing investment advisory, fund administration, compliance, transfer age...
How the Company Makes Money
Victory Capital primarily makes money by charging fees for managing client assets (assets under management, or AUM). Its largest revenue stream is investment advisory/management fees, which are generally calculated as a percentage of average AUM a...
Victory Capital Holdings Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call communicated a strongly positive operational and financial quarter with multiple records (AUM, revenue, adjusted EBITDA, EPS) and clear evidence of sustained organic flow momentum, ETF growth, strong investment performance, and full realization of acquisition synergies. Management increased long-term margin guidance and emphasized a large international footprint via the Amundi partnership and a sizeable won-but-not-funded pipeline. Minor cautions include episodic revenue items that can cause quarterly variability, limited quantification of the won-but-not-funded pipeline, modest scale to date in distributing Amundi products in the U.S., and a relatively low cash balance on the balance sheet. Overall the positives substantially outweigh these manageable items.Positive Updates
Record Quarter Across Key Financial Metrics
Q2 2026 revenue $435.4M (+12% QoQ, +24% YoY); adjusted EBITDA $242.7M with margin 55.8% (record); adjusted net income with tax benefit $182.9M or $2.21 per diluted share (+21% QoQ, +41% YoY).
Negative Updates
Episodic Nature of Certain Revenue Components
Certain annual fees recorded in Q2 are episodic (not traditional performance fees) and can cause quarter-to-quarter variability in the investment management fee line; management reiterates long-term fee-rate guidance of 46–47 bps.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter Across Key Financial Metrics
Q2 2026 revenue $435.4M (+12% QoQ, +24% YoY); adjusted EBITDA $242.7M with margin 55.8% (record); adjusted net income with tax benefit $182.9M or $2.21 per diluted share (+21% QoQ, +41% YoY).
Read all positive updates
Company Guidance
Victory updated its long‑term guidance and capital priorities: long‑term adjusted EBITDA margin guidance was raised to 50% (from 49%), it expects a normalized investment management fee rate of 46–47 bps (Q2 was 47.9 bps), and cash compensation is expected to run in the low‑to‑mid‑20% of revenue while more than two‑thirds of operating expenses remain variable; strategic acquisitions remain the primary use of capital but the firm will be opportunistic on buybacks (Q2 repurchases 1.1M shares; YTD 3.2M) and shareholder returns (Q2 cash returned $138M; dividend declared $0.50/sh), with a current net leverage of 1.0x adjusted EBITDA, $70M of cash, an undrawn $100M revolver, ~$2.5M in annual interest savings from Term Loan repricing, and the full $110M of Pioneer net run‑rate expense synergies now realized.Victory Capital Holdings Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.31B | 893.48M | 821.03M | 854.80M | 890.26M |
| Gross Profit | 1.11B | 928.44M | 529.77M | 455.97M | 455.50M | 479.05M |
| EBITDA | 745.23M | 565.96M | 481.37M | 394.32M | 440.14M | 391.80M |
| Net Income | 460.90M | 330.06M | 288.86M | 213.16M | 275.51M | 278.39M |
Balance Sheet | ||||||
| Total Assets | 4.18B | 4.25B | 2.55B | 2.54B | 2.54B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 70.13M | 163.69M | 126.73M | 123.55M | 38.17M | 69.53M |
| Total Debt | 1.01B | 970.01M | 963.86M | 989.27M | 985.51M | 1.13B |
| Total Liabilities | 1.80B | 1.82B | 1.43B | 1.49B | 1.48B | 1.65B |
| Stockholders Equity | 2.38B | 2.42B | 1.12B | 1.05B | 1.07B | 929.93M |
Cash Flow | ||||||
| Free Cash Flow | 563.22M | 236.85M | 338.70M | 325.12M | 329.97M | 363.52M |
| Operating Cash Flow | 566.99M | 240.41M | 339.98M | 330.29M | 335.21M | 376.20M |
| Investing Cash Flow | 12.03M | 77.66M | -3.98M | -7.84M | -6.32M | -556.59M |
| Financing Cash Flow | -616.58M | -329.45M | -332.76M | -237.13M | -360.19M | 227.22M |
Victory Capital Holdings Risk Analysis
Victory Capital Holdings disclosed 51 risk factors in its most recent earnings report. Victory Capital Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Victory Capital Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $4.71B | 11.58 | 34.06% | 2.42% | 15.25% | 19.43% | |
82 Outperform | $6.85B | 20.70 | 19.29% | 1.98% | 50.24% | 33.56% | |
78 Outperform | $9.40B | 11.66 | 26.95% | 0.01% | 11.74% | 108.91% | |
78 Outperform | $4.22B | 25.78 | 29.72% | 3.17% | 12.59% | 2.98% | |
75 Outperform | $3.45B | 10.95 | 25.41% | 9.17% | ― | 0.94% | |
73 Outperform | $3.42B | 9.95 | 70.99% | 10.07% | 7.40% | 9.66% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
VCTR
Victory Capital Holdings
113.65
42.95
60.75%
AMG
Affiliated Managers
359.07
139.40
63.46%
AB
AllianceBernstein
37.02
-0.51
-1.36%
CNS
Cohen & Steers
84.31
11.69
16.10%
FHI
Federated Hermes
63.00
12.18
23.97%
APAM
Artisan Partners
43.32
<0.01
<0.01%
Victory Capital Holdings Corporate Events
Executive/Board Changes
Victory Capital appoints Nicolas Calcoen to board
Positive
Jul 23, 2026
On July 22, 2026, Victory Capital director Dominique Carrel-Billiard notified the board of his intent to resign effective July 23, 2026, following his departure from Amundi, with the company noting the move did not stem from any disagreement over ...
Business Operations and StrategyFinancial Disclosures
Victory Capital Reports Record Second-Quarter Asset Growth
Positive
Jul 13, 2026
On June 13, 2026, Victory Capital Holdings Inc. reported that its total assets under management reached $342.4 billion and total client assets stood at $346.1 billion as of June 30, 2026. The firm’s asset mix showed strength in solutions, fi...
Business Operations and StrategyFinancial Disclosures
Victory Capital reports May 2026 asset growth momentum
Positive
Jun 9, 2026
Victory Capital Holdings, Inc., a diversified global asset manager, reported that as of May 31, 2026, it managed $338.9 billion in total assets under management, $3.6 billion in other assets, and $342.4 billion in total client assets. For May, ave...
Business Operations and StrategyPrivate Placements and Financing
Victory Capital Reprices Term Loans to Lower Financing Costs
Positive
May 21, 2026
On May 18, 2026, Victory Capital Holdings, Inc. entered into a Seventh Amendment to its existing credit agreement, working with Bank of America, N.A. as administrative agent and its existing lender group. The company refinanced its existing term l...
Business Operations and StrategyFinancial Disclosures
Victory Capital Reports Strong April Asset Growth Momentum
Positive
May 12, 2026
Victory Capital reported that as of April 30, 2026, it managed $329.1 billion in total assets under management, $3.5 billion in other assets, and $332.6 billion in total client assets, reflecting substantial growth from March 31, 2026. Long-term a...
Executive/Board ChangesShareholder Meetings
Victory Capital Shareholders Back Board, Auditor and Pay
Positive
May 12, 2026
Victory Capital Holdings, Inc. reported the results of its 2026 Annual Meeting of Stockholders held on May 6, 2026, where shareholders voted on board elections, auditor ratification, and executive compensation matters. Stockholders elected Class I...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.