In This Article:
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Total Client Assets: $171 billion as of March, down slightly from the start of the year.
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Gross Sales: Increased 41% from the last quarter, reaching $9.3 billion.
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ETF AUM: Increased to more than $13 billion, a 28% increase during the quarter and up 67% year-over-year.
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Adjusted EPS: $1.36 per diluted share, second highest in company history.
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Adjusted EBITDA: $116 million with a margin of 53%.
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Revenue: $219.6 million for the first quarter, down approximately 5% from the fourth quarter.
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Cash: Ended March with $176 million, up $49 million from year-end.
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Net Leverage Ratio: Unchanged at 1.7 times.
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Dividend: Increased to $0.49 per share, payable on June 25.
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Interest Rate: Declined to 4.9%, down from above 6% in the first quarter of 2024.
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Amundi Transaction: Assets increased to over $286 billion as of April 1, with fixed income AUM doubling to 28% of total assets.
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Net Expense Synergy Projections: Increased to $110 million, with $50 million achieved as of closing.
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Long-term Net Flows: Negatively impacted by two large redemptions totaling $2.7 billion.
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Non-US Client AUM: $44 billion, representing 15% of total AUM.
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Cash from Operations: Generated $81 million during the quarter.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Victory Capital Holdings Inc (NASDAQ:VCTR) reported a significant increase in gross sales, reaching $9.3 billion, marking the highest level of quarterly gross sales in three years.
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The company's ETF platform saw substantial growth, with total ETF AUM increasing by 28% during the quarter and 67% year-over-year.
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Adjusted earnings per diluted share with tax benefit was $1.36, the second highest quarterly EPS in company history and a record high for any first quarter period.
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The acquisition and integration of Amundi US has doubled the company's fixed income AUM and expanded its global reach, with $44 billion of assets under management sourced from clients outside of the US.
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Victory Capital Holdings Inc (NASDAQ:VCTR) increased its quarterly dividend and has a $200 million share repurchase plan available, indicating strong financial flexibility and shareholder return potential.
Negative Points
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Total client assets declined by less than 3% during the quarter, primarily due to market action.
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The company experienced two large redemptions totaling $2.7 billion, which negatively impacted net flows.
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Revenue for the first quarter was down approximately 5% from the fourth quarter due to slightly lower average AUM and fewer days in the quarter.
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The integration of Amundi US is expected to cause a slight decline in adjusted EBITDA margins over the next several quarters.
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The average fee rate decreased due to product, vehicle, and channel mix shifts, impacting total revenue.