Core Points - AeroVironment Inc. will replace ChampionX Corp. in the S&P MidCap 400, while Victory Capital Holdings Inc. will replace AeroVironment in the S&P SmallCap 600, effective July 18, 2025 [1] - Schlumberger Ltd. is acquiring ChampionX in a deal expected to close on July 16, 2025, pending final conditions [1] Summary by Category Index Changes - Effective Date: July 18, 2025 - S&P MidCap 400: Addition of AeroVironment (Ticker: AVAV, Sector: Industrials) and Deletion of ChampionX (Ticker: CHX, Sector: Energy) [2] - S&P SmallCap 600: Addition of Victory Capital Holdings (Ticker: VCTR, Sector: Financials) and Deletion of AeroVironment (Ticker: AVAV, Sector: Industrials) [2]

Group 1: Company Performance - Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $298.6 billion for June 2025, reflecting a 3.2% increase from May 31, 2025 [1][8] - U.S. large-cap equity AUM rose 4.9% to $61.8 billion, while U.S. mid-cap equity AUM increased 1.8% to $31.6 billion [1][8] - Solutions assets reached $79.9 billion, up 4.7% from May 2025, and fixed-income AUM totaled $79.7 billion, representing a 1% increase [2][8] Group 2: Market Positioning - The strong positioning of VCTR's integrated multi-boutique business model in a fast-expanding market is expected to boost its performance in the near term [3] - Over the past six months, VCTR shares have gained 29.9%, outperforming the industry's growth of 21.7% [4] Group 3: Comparison with Other Asset Managers - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.61 trillion as of June 30, 2025, which increased 2.1% from the prior month [7] - Invesco (IVZ) reported AUM of $2 trillion as of June 30, 2025, increasing 3% from the previous month, with strong market returns contributing to a $58 billion increase [9][10]

Financial Data and Key Metrics Changes - Total client assets at the end of March were $171 billion, slightly down from the start of the year, with average AUM approximately 1% lower compared to the fourth quarter [6] - Revenue for the first quarter was $219.6 million, down about 5% from the fourth quarter due to lower average AUM and fewer days in the quarter, but year-over-year revenue was higher [21][22] - Adjusted earnings per diluted share with tax benefit was $1.36, marking the second highest quarterly EPS in company history and a record for any first quarter [9][30] - Adjusted EBITDA was $116 million with a margin of 53%, reflecting a 90 basis point expansion from the first quarter of the previous year [30] Business Line Data and Key Metrics Changes - Gross sales increased by 41% from the last quarter, reaching $9.3 billion, the highest level of quarterly gross sales in three years [6] - The ETF AUM increased to over $13 billion, a 28% increase during the quarter and up 67% year-over-year [8] - The Amundi acquisition resulted in a doubling of fixed income AUM as a percentage of total assets from 14% to 28% [11] Market Data and Key Metrics Changes - The company ended the quarter with $44 billion of AUM sourced from clients outside the U.S., representing 15% of total AUM, compared to less than 5% previously [12][24] - Pioneer Investments generated positive net long-term flows of $1.7 billion in the first quarter, which is not included in the company's numbers due to the transaction closing on April 1 [13][27] Company Strategy and Development Direction - The company is strategically investing in distribution channels, data, technology, marketing, and intermediary partnerships to enhance organic growth [10][19] - Plans for several ETF launches in 2025 are underway, with a focus on expanding the product lineup [9][19] - The company aims to maintain a long-term margin target of 49%, despite short-term integration costs from the Amundi acquisition [45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying activity around flows, viewing the two large redemptions as one-time events that should not distort organic growth progress [7] - The company is well-positioned for organic growth with a larger sales force and enhanced resources dedicated to distribution efforts [19][66] - Management anticipates a potential acquisition announcement in 2025, leveraging the improved balance sheet and cash position [58] Other Important Information - The company returned $39 million to shareholders during the first quarter and increased the quarterly dividend to $0.49 per share [22] - The net leverage ratio remained steady at 1.7 times, with cash on hand increasing to $176 million [22][31] Q&A Session Summary Question: Can you elaborate on the rollout of new products outside the U.S.? - Management indicated that they are working with Amundi to identify successful products for international markets, with launches expected in the latter half of 2025 [35][38] Question: How will margins evolve in the near term? - Management confirmed that while margins are currently at 53%, they expect a slight decline during integration efforts, but remain bullish on achieving long-term targets of 49% [42][45] Question: What is the state of the acquisition pipeline? - Management stated that the company is in a strong position to execute sizable transactions and is leaning towards larger scaled opportunities [56][58] Question: How are fixed income and solutions performing in volatile markets? - Management noted that the fixed income platform has expanded and performed well, with positive net flows observed in the first quarter [64][66] Question: Have there been any dissynergies from the Amundi acquisition? - Management reported no dissynergies from the Amundi acquisition, highlighting positive net flows from Pioneer Investments [72][74] Question: What investments are being made to enhance organic growth? - Management detailed significant investments in sales, marketing, and data technology to support organic growth, with success measured by growth in business [84][87] Question: How important are alternative investment products for future acquisitions? - Management acknowledged the importance of alternative investments and is evaluating various strategies to incorporate them into the platform [90][92] Question: What is the rationale behind the change in dividend policy? - Management explained that the change allows for more opportunistic increases while prioritizing capital for acquisitions and growth [96][98]

Victory Capital (VCTR) Q1 2025 Earnings Call May 09, 2025 08:00 AM ET Speaker0 Good morning, and welcome to the Victory Capital First Quarter twenty twenty five Earnings Conference Call. All callers are on a listen only mode. Following the company's prepared remarks, there will be a question and answer session. I will now turn the call over to Mr. Matthew Dennis, Chief of Staff and Director of Investor Relations. Please go ahead, Mr. Dennis. Speaker1 Thank you. Before I turn the call over to David Brown, I ...

[Part I — Financial Information](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents Victory Capital Holdings, Inc.'s unaudited condensed consolidated financial statements for Q1 2025, covering balance sheets, operations, cash flows, and notes [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Victory Capital Holdings, Inc.'s unaudited condensed consolidated financial statements for Q1 2025, covering balance sheets, operations, cash flows, and notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.58 billion** as of March 31, 2025, driven by cash, with liabilities rising to **$1.44 billion** and equity to **$1.14 billion** Condensed Consolidated Balance Sheet Highlights (Unaudited) | (Amounts in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $175,607 | $126,731 | | Goodwill | $981,805 | $981,805 | | Other intangible assets, net | $1,255,351 | $1,260,614 | | **Total assets** | **$2,583,486** | **$2,547,591** | | **Liabilities & Stockholders' Equity** | | | | Long-term debt, net | $964,763 | $963,862 | | **Total liabilities** | **$1,438,920** | **$1,425,954** | | **Total stockholders' equity** | **$1,144,566** | **$1,121,637** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue increased to **$219.6 million** in Q1 2025, driving net income to **$62.0 million**, or **$0.96 per diluted share**, supported by higher revenue and lower expenses Statement of Operations Summary (Unaudited) | (Amounts in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $219,602 | $215,857 | | Total operating expenses | $126,694 | $131,048 | | Income from operations | $92,908 | $84,809 | | Net income | $61,975 | $55,691 | | Diluted EPS | $0.96 | $0.84 | | Dividends declared per share | $0.47 | $0.335 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$81.1 million** in Q1 2025, with financing cash outflow decreasing, leading to a **$48.9 million** increase in cash Cash Flow Summary (Unaudited) | (Amounts in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $81,094 | $68,684 | | Net cash used in investing activities | ($1,684) | ($910) | | Net cash used in financing activities | ($30,713) | ($111,342) | | Net increase (decrease) in cash | $48,876 | ($43,610) | | Cash and cash equivalents, end of period | $175,607 | $79,937 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Detailed notes explain accounting policies and financial results, covering business, revenue, acquisitions, fair value, debt, equity, and subsequent events - On April 1, 2025, the Company completed the acquisition of Amundi US and reintroduced the brand Pioneer Investments for the acquired business[32](index=32&type=chunk) Disaggregated Revenue by Type and Product (Q1 2025 vs Q1 2024) | (Amounts in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total investment management fees** | **$173,301** | **$169,785** | | Mutual funds (Victory Funds) | $114,341 | $115,173 | | ETFs (VictoryShares) | $8,729 | $5,179 | | **Total fund administration and distribution fees** | **$46,301** | **$46,072** | | **Total revenue** | **$219,602** | **$215,857** | - The estimated fair value of contingent consideration payable to sellers for the WestEnd acquisition was **$143.3 million** as of March 31, 2025, with a **$3.4 million** increase in fair value for Q1 2025[70](index=70&type=chunk)[71](index=71&type=chunk) - On May 8, 2025, the Board of Directors approved a regular quarterly cash dividend of **$0.49 per share**, payable on June 25, 2025[135](index=135&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, noting AUM decreased to **$167.5 billion** due to market action and outflows, yet Q1 2025 revenue and net income increased [Overview and Key Performance Indicators](index=29&type=section&id=MD%26A_Overview) Victory Capital's AUM decreased to **$167.5 billion** due to market depreciation and net outflows, yet financial performance improved with Adjusted EBITDA rising - As of March 31, 2025, the company had total client assets of **$171.4 billion**, including **$167.5 billion** in AUM[138](index=138&type=chunk) Key Performance Indicators (Q1 2025 vs Q1 2024) | (Amounts in millions, except for bps and %) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | AUM at period end | $167,468 | $170,342 | | Average AUM | $173,789 | $163,533 | | AUM net flows | ($1,249) | ($1,127) | | Total revenue | $219.6 | $215.9 | | Revenue realization on average AUM | 51.2 bps | 53.0 bps | | Net income | $62.0 | $55.7 | | Adjusted EBITDA | $116.4 | $112.4 | | Adjusted EBITDA Margin | 53.0% | 52.1% | [Assets Under Management (AUM)](index=31&type=section&id=Assets%20Under%20Management) Total AUM decreased to **$167.5 billion** due to **$1.2 billion** in net outflows and **$3.2 billion** in market depreciation, with varied flows across vehicles AUM Roll-Forward (Q1 2025) | (Amounts in millions) | Amount | | :--- | :--- | | Beginning AUM (Jan 1, 2025) | $171,930 | | Net client cash flows | ($1,249) | | Market appreciation (depreciation) | ($3,172) | | Realizations and distributions | ($21) | | Acquired & divested assets / Net transfers | ($20) | | **Ending AUM (Mar 31, 2025)** | **$167,468** | AUM Net Flows by Vehicle (Q1 2025) | (Amounts in millions) | Net Client Cash Flows | | :--- | :--- | | Mutual Funds | ($3,006) | | ETFs | $2,810 | | Separate Accounts and Other | ($1,053) | | **Total AUM** | **($1,249)** | [GAAP Results of Operations](index=35&type=section&id=GAAP%20Results%20of%20Operations) Q1 2025 total revenue grew **1.7%** to **$219.6 million**, driven by higher AUM, while personnel compensation decreased and acquisition-related costs significantly increased - Investment management fees increased by **$3.5 million (2.1%)** year-over-year due to a higher average AUM of **$173.8 billion** in Q1 2025 compared to **$163.5 billion** in Q1 2024[167](index=167&type=chunk) - Personnel compensation and benefits decreased by **$3.4 million (5.6%)** year-over-year, primarily due to lower unrealized gains on deferred compensation plans and reduced contingent payment compensation expense[171](index=171&type=chunk) - Acquisition-related costs rose by **$7.7 million** to **$8.8 million** in Q1 2025, primarily due to legal, professional, and proxy solicitation costs related to the Amundi US acquisition[177](index=177&type=chunk) [Supplemental Non-GAAP Financial Information](index=37&type=section&id=Supplemental%20Non-GAAP%20Financial%20Information) Non-GAAP measures like Adjusted EBITDA (**$116.4 million**) and Adjusted Net Income (**$78.0 million**) show core operating performance, excluding non-recurring costs Reconciliation of GAAP Net Income to Adjusted EBITDA | (Amounts in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $61,975 | $55,691 | | Adjustments (Interest, Taxes, D&A, etc.) | $54,424 | $56,665 | | **Adjusted EBITDA** | **$116,399** | **$112,356** | Reconciliation of GAAP Net Income to Adjusted Net Income | (Amounts in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $61,975 | $55,691 | | Adjustments (Amortization, Stock Comp, etc.) | $21,309 | $22,488 | | Tax effect of adjustments | ($5,327) | ($5,621) | | **Adjusted Net Income** | **$77,957** | **$72,558** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with cash increasing to **$175.6 million**, supported by an undrawn **$100.0 million** credit facility and increased operating cash flow - The company maintained a **$100.0 million** revolving credit facility which was undrawn as of March 31, 2025[190](index=190&type=chunk) - Cash flow from operating activities increased by **$12.4 million** year-over-year to **$81.1 million** for Q1 2025[205](index=205&type=chunk) - As of March 31, 2025, the company had a contingent consideration liability of **$143.3 million** related to the WestEnd Acquisition, with a maximum potential payout of **$240.0 million**[202](index=202&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Revenues are highly sensitive to market risk, with a **10%** AUM change impacting annualized revenues by **$85.2 million**, alongside exchange rate and interest rate risks - A **10%** increase or decrease in the value of AUM would cause an annualized change in revenues of approximately **$85.2 million**, based on the weighted-average fee rate of **51 basis points** for Q1 2025[209](index=209&type=chunk) - Approximately **11%** of AUM is invested in securities denominated in currencies other than the U.S. dollar, where a **10%** change in the U.S. dollar's value would impact annualized revenue by approximately **$9.4 million**[211](index=211&type=chunk)[212](index=212&type=chunk) - The company monetized its interest rate swap in October 2023 and is now exposed to interest rate risk on its outstanding variable-rate debt under the 2019 Credit Agreement[214](index=214&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of March 31, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[216](index=216&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[217](index=217&type=chunk) [Part II — Other Information](index=46&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Stockholder litigation concerning the Amundi transaction, alleging misleading disclosures, was voluntarily discontinued by plaintiffs on April 4, 2025 - Stockholder litigation was filed in September 2024 concerning the Amundi transaction, alleging incomplete and misleading disclosures in the Proxy Statement[220](index=220&type=chunk)[221](index=221&type=chunk) - On April 4, 2025, the plaintiffs in the stockholder litigation filed notices of voluntary discontinuance, effectively ending the actions[222](index=222&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors in the Annual Report on Form 10-K for the year ended December 31, 2024[224](index=224&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a share repurchase program authorizing up to **$200.0 million** through December 31, 2026, with no shares repurchased during Q1 2025 - In December 2024, the Board approved a new share repurchase program authorizing up to **$200.0 million** of Common Stock repurchases through December 31, 2026[225](index=225&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | (Amounts in millions) | Total Number of Shares Purchased | Approximate Dollar Value That May Yet Be Purchased (in millions) | | :--- | :--- | :--- | | Jan 1-31, 2025 | — | $200.0 | | Feb 1-28, 2025 | — | $200.0 | | March 1-31, 2025 | — | $200.0 | | **Total** | **—** | **$200.0** | [Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[227](index=227&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[227](index=227&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications required by Sarbanes-Oxley Act, and iXBRL data - Exhibits filed include CEO and CFO certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002[229](index=229&type=chunk)

Core Insights - Victory Capital Holdings (VCTR) reported revenue of $219.6 million for Q1 2025, a year-over-year increase of 1.7%, but fell short of the Zacks Consensus Estimate by 2.87% [1] - The company's EPS for the same period was $1.36, compared to $1.25 a year ago, with an EPS surprise of -1.45% against the consensus estimate of $1.38 [1] Financial Performance - The total assets under management (AUM) were reported at $167.47 billion, significantly below the average estimate of $197.22 billion from four analysts [4] - The breakdown of AUM includes: - Global/Non-U.S. Equity: $18.33 billion, matching the average estimate [4] - Solutions: $63.38 billion, matching the average estimate [4] - U.S. Large Cap Equity: $13.10 billion, matching the average estimate [4] - U.S. Mid Cap Equity: $28.96 billion, matching the average estimate [4] - U.S. Small Cap Equity: $13.18 billion, matching the average estimate [4] - Alternative Investments: $2.95 billion, matching the average estimate [4] - Money Market/Short-term: $3.40 billion, matching the average estimate [4] - Total net client cash flows were reported at -$1.25 billion, worse than the average estimate of -$552.44 million [4] - Revenue from investment management fees was $173.30 million, below the average estimate of $178.26 million, but showed a year-over-year increase of 2.1% [4] - Revenue from fund administration and distribution fees was $46.30 million, also below the average estimate of $48.19 million, with a year-over-year increase of 0.5% [4] Market Performance - Victory Capital's shares returned +1.2% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Victory Capital Holdings reported quarterly earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.38 per share, but showing an increase from $1.25 per share a year ago, indicating a slight earnings surprise of -1.45% [1] Financial Performance - The company posted revenues of $219.6 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 2.87%, but an increase from $215.86 million year-over-year [2] - Over the last four quarters, Victory Capital has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Victory Capital shares have declined approximately 10.5% since the beginning of the year, compared to a decline of -4.3% for the S&P 500 [3] Future Outlook - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $1.49 on revenues of $358.75 million, and for the current fiscal year at $6.02 on revenues of $1.32 billion [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 15% of over 250 Zacks industries, which may impact stock performance [8]

First Quarter 2025 Earnings Presentation May 9, 2025 This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "assume," "budget," "continue," "estimate," "future," "objective," "outlook," "plan," "potential," "predict," "project," "will," "can have," ...

Financial Performance - First-quarter revenue was $219.6 million, a 1.7% increase year-over-year from $215.9 million, but a decrease of $12.8 million from the previous quarter[20] - GAAP net income for the first quarter was $62.0 million, down 19.5% from $76.9 million in the fourth quarter, translating to earnings of $0.96 per diluted share[18] - Adjusted EBITDA for the first quarter was $116.4 million, a decrease of 7.1% from $125.5 million in the fourth quarter, with an adjusted EBITDA margin of 53.0%[19] - Total revenue for Q1 2025 was $219.602 million, a decrease of 5.4% from $232.371 million in Q4 2024 and an increase of 1.1% from $215.857 million in Q1 2024[33] - Net income for Q1 2025 was $61.975 million, down 19.5% from $76.939 million in Q4 2024 and up 11.5% from $55.691 million in Q1 2024[33] - Adjusted EBITDA for Q1 2025 was $116.399 million, with an adjusted EBITDA margin of 53.0%[35] - The company reported a basic earnings per share of $0.97 for Q1 2025, compared to $1.19 in Q4 2024 and $0.86 in Q1 2024[33] Client Assets and Flows - Total client assets reached $171.4 billion, with assets under management (AUM) at $167.5 billion, reflecting a decrease of $4.5 billion from $171.9 billion at December 31, 2024[15] - Total client assets at the end of Q1 2025 were $171.435 million, a decrease from $176.096 million at the end of Q4 2024 and an increase from $175.459 million at the end of Q1 2024[41] - Ending assets under management (AUM) for Q1 2025 were $167.468 million, down from $171.930 million in Q4 2024 and up from $170.342 million in Q1 2024[41] - The company experienced a net cash outflow of $1.526 million in total client assets for Q1 2025, compared to $2.545 million in Q4 2024[41] - Long-term gross flows for the first quarter totaled $9.3 billion, while long-term net flows were negative at ($1.2) billion[10] - Total gross flows for the first quarter were $9.5 billion, indicating strong client engagement despite net outflows[15] - Gross client cash inflows for the three months ended March 31, 2025, were $9,486 million, an increase from $6,793 million in the previous quarter[45] - Gross client cash outflows increased to $10,736 million for the three months ended March 31, 2025, compared to $8,663 million in the previous quarter[45] - Net client cash flows for the three months ended March 31, 2025, were negative at $(1,249) million, improving from $(1,870) million in the previous quarter[45] Market Performance - Investment performance remained strong, with 64%, 65%, and 79% of AUM outperforming benchmarks over the 3-, 5-, and 10-year periods, respectively[7] - Market depreciation for the quarter was $(3.172) billion, compared to $(2.237) billion in the previous quarter, representing a decline of about 42%[53] - Market appreciation for other assets (institutional) was $78 million for the three months ended March 31, 2025, recovering from a depreciation of $(141) million in the previous quarter[47] Dividends and Shareholder Returns - The Board declared a record quarterly cash dividend of $0.49 per share, payable on June 25, 2025[10] Company Transactions and Strategic Moves - The company successfully closed a transaction with Amundi on April 1, enhancing its scale and diversification across asset classes and geographies[6] Assets and Liabilities - Total assets as of March 31, 2025, were $2.583 billion, an increase from $2.548 billion at the end of Q4 2024[37] - Victory Capital's total liabilities were $1.439 billion as of March 31, 2025, compared to $1.426 billion at the end of Q4 2024[37] - Other institutional assets decreased to $3,967 million as of March 31, 2025, from $4,165 million as of December 31, 2024[47] - The company experienced a net cash outflow of $(10.736) billion for the quarter, compared to $(8.663) billion in the previous quarter, indicating a worsening liquidity position[53] Adjusted Metrics - Adjusted EBITDA and Adjusted Net Income are used to measure operating profitability, excluding one-time acquisition and restructuring costs[55] - The tax benefit from amortization of acquired intangible assets and goodwill is significant, providing additional economic benefits to the company[56] - The company added back various expenses, including income tax, interest on debt, and stock-based compensation, to calculate Adjusted EBITDA[57]

Core Viewpoint - Analysts expect Victory Capital Holdings (VCTR) to report quarterly earnings of $1.38 per share, reflecting a year-over-year increase of 10.4%, with revenues projected at $226.09 million, up 4.7% from the previous year [1]. Earnings Projections - Over the last 30 days, there has been a downward revision of 1.3% in the consensus EPS estimate for the quarter, indicating a collective reconsideration by analysts of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue and Key Metrics - Analysts forecast 'Revenue- Fund administration and distribution fees' at $48.19 million, a year-over-year increase of 4.6% [5]. - The average prediction for 'Revenue- Investment management fees' is $178.26 million, indicating a 5% increase from the prior-year quarter [5]. - 'Ending Assets Under Management' is expected to reach $197.22 billion, up from $170.34 billion in the same quarter last year [5]. Specific Asset Management Estimates - 'Ending assets under management - Global/Non-U.S. Equity' is projected at $18.33 billion, slightly up from $18.20 billion a year ago [6]. - 'Ending assets under management - Solutions' is expected to be $63.38 billion, compared to $57.83 billion last year [6]. - 'Ending assets under management - U.S. Large Cap Equity' is estimated at $13.10 billion, down from $13.90 billion a year ago [7]. - 'Ending assets under management - U.S. Mid Cap Equity' is projected at $28.96 billion, down from $32.92 billion last year [7]. - 'Ending assets under management - U.S. Small Cap Equity' is expected to be $13.18 billion, down from $16.30 billion [8]. - 'Ending assets under management - Alternative Investments' is projected at $2.95 billion, down from $3.47 billion [8]. - 'Ending assets under management - Money Market/Short-term' is estimated at $3.40 billion, up from $3.25 billion last year [9]. - 'Ending assets under management - Fixed Income' is expected to be $24.16 billion, slightly down from $24.48 billion a year ago [9]. Stock Performance - Shares of Victory Capital have returned +13.5% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [9].