Core Insights - Victory Capital Holdings (VCTR) reported quarterly earnings of $1.63 per share, exceeding the Zacks Consensus Estimate of $1.60 per share, and showing an increase from $1.35 per share a year ago, resulting in an earnings surprise of +1.87% [1] - The company posted revenues of $361.2 million for the quarter ended September 2025, which was slightly below the Zacks Consensus Estimate by 0.16%, and a significant increase from $225.63 million year-over-year [2] - Victory Capital has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The future performance of Victory Capital's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.60, with expected revenues of $371.03 million, and for the current fiscal year, the EPS estimate is $6.22 on revenues of $1.3 billion [7] Industry Context - The Financial - Investment Management industry, to which Victory Capital belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - GAAP revenue for Q3 2025 was $361.2 million, a 60.1% increase compared to $225.6 million in Q3 2024, driven by higher average AUM[22]. - Adjusted net income with tax benefit increased 6.5% to $141.3 million, or $1.63 per diluted share, compared to $132.8 million, or $1.57 per diluted share, in Q2 2025[21]. - Net income for Q3 2025 was $96.5 million, compared to $58.7 million in Q2 2025, representing a 64.4% increase[41]. - Earnings per share (EPS) for Q3 2025 was $1.12, compared to $0.69 in Q2 2025[41]. - Adjusted EBITDA for Q3 2025 was $190.5 million, reflecting a 57.1% increase from $121.3 million in Q3 2024[24]. - Adjusted EBITDA for the nine months ended September 30, 2025, reached $485,375 million, compared to $350,117 million for the same period in 2024, reflecting a growth of 38.6%[43]. - The company reported an adjusted net income of $130,850 million for the three months ended September 30, 2025, compared to $122,507 million in the previous quarter, marking a 2.7% increase[43]. Client Assets and Management - Total client assets reached $313 billion, with assets under management (AUM) of $310.6 billion, reflecting an increase of $12.1 billion from $298.6 billion at the end of Q2 2025[16]. - Total client assets at the end of September 30, 2025, were $313,370 million, up from $301,613 million at the end of June 30, 2025[49]. - Ending assets under management (AUM) for September 30, 2025, were $310,644 million, an increase from $298,563 million at June 30, 2025[50]. - Total assets under management (AUM) as of September 30, 2025, reached $310.6 billion, a significant increase from $176.1 billion in 2024, representing an increase of 76.3%[71]. - The U.S. market accounted for 83% of total AUM at $258.5 billion, while non-U.S. assets comprised 17% at $52.2 billion[71]. Cash Flows and Dividends - Long-term gross flows amounted to $17 billion, while long-term net outflows were $244 million for the quarter, marking an improvement in net flows for the fourth consecutive quarter[5]. - The company repurchased 1.8 million shares and returned approximately $163 million to shareholders through share buybacks and cash dividends[7]. - The board authorized a regular quarterly cash dividend of $0.49 per share, payable on December 23, 2025[29]. - The company declared a dividend of $0.49 per share for Q3 2025, consistent with Q2 2025[41]. - For the nine months ended September 30, 2025, gross client cash inflows totaled $42.513 million, a substantial increase from $19.375 million in the same period in 2024, marking a growth of 120%[59]. - The company reported gross client cash outflows of $(44.86) billion for the nine months ended September 30, 2025, up from $(24.88) billion in the previous year[80]. Operational Efficiency - GAAP operating margin expanded to 38.2%, up from 26.8% in the previous quarter, due to reduced personnel and acquisition-related costs[20]. - Total operating expenses decreased to $223.1 million in Q3 2025 from $257.0 million in Q2 2025[41]. - The company’s net debt to leverage ratio improved to 1.1x, enhancing its capacity for inorganic growth opportunities[7]. - The company is on track to achieve $110 million in net expense synergies from the integration of Pioneer Investments[4]. Market Conditions and Strategic Focus - Future business outlook remains cautious due to potential risks including market conditions and geopolitical factors[36]. - The company is focused on maintaining historical returns and exploring new investment strategies[36]. - The company’s strategic focus includes expanding its investment capabilities and enhancing client offerings through new product developments and market expansions[68]. Market Appreciation and Asset Transfers - The company experienced a market appreciation of $14,692 million in total client assets for the three months ended September 30, 2025[50]. - Market appreciation for the three months ended September 30, 2025, was $14.515 million, compared to $10.076 million in the same period of 2024, reflecting a 44% increase[54]. - The company experienced a significant impact from the closure of three Investment Franchises, resulting in approximately $1 billion of divested assets during the third quarter of 2025[55]. - The company experienced a net transfer of assets amounting to negative $2.1 billion, reflecting divestitures related to the closure of three investment franchises[74]. - The company experienced a net transfer of acquired assets amounting to $3 billion during the nine months ended September 30, 2025[80].

Core Insights - Victory Capital Holdings (VCTR) is a finance stock with a year-to-date price change of -3.47% and currently pays a dividend of $0.49 per share, resulting in a dividend yield of 3.1% [3] - The company's annualized dividend of $1.96 has increased by 26% from the previous year, with an average annual increase of 48.75% over the last five years [4] - The Zacks Consensus Estimate for VCTR's earnings in 2025 is $6.22 per share, indicating a year-over-year earnings growth rate of 16.04% [5] - VCTR has a payout ratio of 35%, meaning it distributes 35% of its trailing 12-month earnings per share as dividends [4] - The company is ranked 2 (Buy) by Zacks, indicating it is viewed as a compelling investment opportunity [6] Industry Context - The Financial - Investment Management industry has a dividend yield of 2.94%, while the S&P 500's yield is 1.49%, positioning VCTR favorably within its sector [3] - Dividends are significant contributors to long-term returns, often accounting for over one-third of total returns [2] - Established firms with secure profits are typically seen as the best dividend options, while high-growth businesses and tech startups rarely offer dividends [6]

Core Insights - Victory Capital Holdings (VCTR) is currently viewed as a better value opportunity compared to Carlyle Group (CG) based on various financial metrics and rankings [1] Valuation Metrics - VCTR has a forward P/E ratio of 10.60, while CG has a forward P/E of 13.58, indicating that VCTR is more attractively priced [5] - The PEG ratio for VCTR is 0.65, suggesting it is undervalued relative to its expected earnings growth, whereas CG has a PEG ratio of 1.17 [5] - VCTR's P/B ratio stands at 1.79, compared to CG's P/B of 3.02, further highlighting VCTR's relative undervaluation [6] Zacks Rank and Earnings Outlook - VCTR holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to recent revisions, while CG has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes earnings estimates and revisions, which favor VCTR's improving earnings outlook [2][3] Value Grades - VCTR has been assigned a Value grade of B, while CG has a Value grade of D, reflecting VCTR's stronger valuation metrics [6]

Core Insights - Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $310.6 billion for September 2025, reflecting a 2.3% increase from August 31, 2025 [1][8] - The growth in AUM was primarily driven by an 8.6% increase in global/non-U.S. equity AUM and a 4.1% increase in Solutions assets [2][8] - VCTR's integrated multi-boutique business model and effective distribution platform are expected to enhance its performance in the near term [3][8] Asset Class Performance - U.S. mid-cap equity AUM decreased marginally to $31.9 billion [1] - U.S. small-cap equity AUM declined 1.6% to $12.7 billion [1] - U.S. large-cap equity AUM increased 1.9% to $63.1 billion [1] - Fixed-income AUM totaled $80.4 billion, showing a marginal increase [2] - Alternative investments asset balance decreased slightly to $3 billion [2] - Money market/short-term assets declined nearly 1% to $3.6 billion [2] Market Position and Performance - Over the past six months, VCTR shares gained 22.5%, outperforming the industry's growth of 17.9% [4] - Victory Capital currently holds a Zacks Rank 1 (Strong Buy) [5] Comparison with Other Asset Managers - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.66 trillion as of September 30, 2025, increasing nearly 1% from the prior month [6][9] - Invesco Ltd. (IVZ) reported AUM of $2,124.8 billion as of September 30, 2025, reflecting a 2.9% increase from the previous month [9][10]

Core Insights - Victory Capital Holdings, Inc. reported Total Assets Under Management (AUM) of $310.6 billion and Total Client Assets of $313.4 billion as of September 30, 2025 [1][5] - The company experienced long-term AUM net flows of -$244 million for the third quarter [2] Financial Performance - Average Total AUM for September was $308.0 billion, with average Other Assets at $2.7 billion and average Total Client Assets at $310.7 billion [2] - The third-quarter financial results will be reported after market close on November 6, 2025, followed by a conference call on November 7, 2025, at 8:00 a.m. ET [3][4] Company Overview - Victory Capital is a diversified global asset management firm with $313 billion in total client assets as of September 30, 2025, serving institutional, intermediary, and individual clients [5] - The firm utilizes a differentiated approach that combines investment autonomy with a robust operational and distribution platform [5]

Core Viewpoint - Investors should closely monitor Victory Capital Holdings, Inc. (VCTR) due to significant movements in the options market, particularly the high implied volatility of the Oct 17, 2025 $55.00 Call option [1] Company Analysis - Victory Capital Holdings is currently rated as a Zacks Rank 1 (Strong Buy) in the Financial - Investment Management Industry, which ranks in the top 24% of the Zacks Industry Rank [3] - Over the past 60 days, three analysts have raised their earnings estimates for the current quarter, while none have lowered them, resulting in an increase in the Zacks Consensus Estimate from $1.56 per share to $1.61 per share [3] Options Market Insights - The high implied volatility surrounding Victory Capital Holdings suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Core Viewpoint - Victory Capital Holdings (VCTR) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have a strong correlation with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, Victory Capital is expected to earn $6.22 per share, with a 2.2% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Insights - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 11.28% and a net return of 11.02% for Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% [1] - The fund's performance was attributed to double-digit returns in equities driven by improved global economic activity [1] Company Highlights - Victory Capital Holdings, Inc. (NASDAQ:VCTR) is highlighted as a key stock, with a one-month return of 0.79% and a 52-week gain of 36.07%, closing at $70.70 per share on September 11, 2025, with a market capitalization of $4.722 billion [2] - In the Financials sector, the strategy favors asset managers like Victory Capital over banks facing credit issues, noting an 11% gain for Victory Capital in Q2 2025, with earnings aligning with projections due to effective expense controls [3] - Victory Capital's Q2 revenue surged 60% from Q1 to $351.2 million, with 22 hedge fund portfolios holding its stock at the end of Q2, up from 16 in the previous quarter [4]

Group 1 - Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $303.7 billion for August 2025, reflecting a 1.3% increase from July 31, 2025 [1][8] - The U.S. mid-cap equity AUM increased to $32.1 billion, while U.S. small-cap equity AUM rose 2.8% to $12.9 billion, and global/non-U.S. equity AUM increased 3.5% to $26.6 billion [1][8] - The U.S. large-cap equity AUM decreased marginally to $61.9 billion [1] Group 2 - Victory Capital recorded $83.5 billion in Solutions, up 3.2% from July 2025, with alternative investments increasing nearly 1% to $3 billion [2][8] - Fixed-income AUM totaled $79.9 billion, representing a marginal increase from July 2025, while money market/short-term assets declined to $3.6 billion [2] Group 3 - The integrated multi-boutique business model of VCTR is well-positioned in a fast-expanding market, which is expected to enhance its performance in the near term [3] Group 4 - Over the past six months, VCTR shares have gained 19.9%, outperforming the industry's growth of 13.9% [4] Group 5 - Victory Capital currently carries a Zacks Rank 3 (Hold) [5] Group 6 - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.64 trillion as of August 31, 2025, which increased 1.7% from the prior month [6][9]