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]

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]

Core Insights - Victory Capital reported strong financial results for Q2 2025, driven by the acquisition of Amundi US, which nearly doubled assets under management and led to GAAP revenue of $351.2 million, exceeding analyst expectations by $14.4 million or 4.3% [1][2] - Despite record growth in scale, the company faced margin pressure with GAAP operating margin dropping to 26.8% from 50.4% in Q2 2024 due to integration and restructuring costs [1][6] Financial Performance - Non-GAAP diluted earnings per share reached $1.57, surpassing estimates of $1.48 and showing a year-over-year increase of 19.8% from $1.31 in Q2 2024 [2] - Revenue (GAAP) increased by 59.9% year-over-year, from $219.6 million in Q2 2024 to $351.2 million in Q2 2025 [2][6] - Net income (GAAP) decreased by 20.9% year-over-year, from $74.3 million in Q2 2024 to $58.7 million in Q2 2025 [2] Business Overview - Victory Capital operates a diversified global asset management platform, offering various investment strategies through multiple autonomous franchises [3] - The company aims to minimize risk by diversifying assets across client types, investment vehicles, and geographic regions [3] Strategic Focus - The acquisition of Amundi US significantly expanded Victory Capital's product lineup and international reach, particularly in fixed income and solutions products [4] - Key priorities include driving organic growth, integrating acquired franchises, and advancing ETF and alternative investment offerings [4] Asset Management Growth - Assets under management (AUM) reached $298.6 billion as of June 30, 2025, a significant increase from $168.7 billion in Q2 2024, primarily due to the Amundi US acquisition [5] - The company recorded long-term net outflows of $660 million, an improvement from previous quarters, but still not a return to organic growth [5] Margin and Expense Management - Operating expenses increased due to acquisition and restructuring costs, contributing to the decline in GAAP operating margin [6] - Management reaffirmed a long-term operating margin target near 49%, indicating expectations for margin normalization post-integration [6][11] Diversification and Performance - Non-U.S. assets accounted for $48.5 billion (16% of total AUM) as of June 30, 2025, a significant increase from $5.5 billion (3%) the previous year [7] - 58% of AUM outperformed benchmarks over a three-year period, and 64% of mutual fund and ETF assets received four- or five-star ratings from Morningstar [7] Capital Management - Net leverage improved to 1.2x EBITDA, the lowest since becoming a public company [10] - The company declared a quarterly dividend of $0.49 per share and repurchased 439,000 shares during the period [10] Future Outlook - Management outlined continued investment in organic growth, global expansion, and digital capabilities, particularly in ETF and alternative product development [11] - The mergers and acquisitions pipeline remains active, with potential further expansion announcements in 2025 [11]