Victory Capital (VCTR) Q1 2026 earnings summary

Executive summary

• Total client assets ended Q1 2026 at $313 billion, up 1% sequentially and 11% year-over-year, with record long-term gross flows of $19 billion and strong execution on strategic investments.

• Adjusted EBITDA reached $204 million (52.6% margin), up 3% sequentially and 75% year-over-year, and adjusted EPS with tax benefit was $1.82, up 2% sequentially and 34% year-over-year.

• Integration of the Pioneer (Amundi US) acquisition is nearly complete, with $104 million of $110 million expected net expense synergies recognized and international distribution gaining traction.

• Investment performance remained strong, with 68% of AUM in mutual funds/ETFs rated four or five stars by Morningstar and 71% of AUM outperforming benchmarks over one year.

• $185 million was returned to shareholders in Q1 2026 through dividends and repurchasing 2 million shares, including a dividend increase to $0.50 per share.

Financial highlights

• Total revenue for Q1 2026 was $388 million, up 4% sequentially and 77% year-over-year.

• GAAP net income was $112.1 million ($1.33 per diluted share), up 81% year-over-year.

• Adjusted net income with tax benefit was $153 million.

• Investment management fees rose 83% to $316.4 million year-over-year.

• Personnel compensation and benefits grew 89% to $105.9 million, reflecting business expansion.

Outlook and guidance

• Fee rate guidance remains at 46-47 basis points, with average fee rate at 47.6 bps in Q1 2026.

• Continued investment in distribution, product development, and intermediary platform partnerships, with additional ETF and UCITS launches planned for 2026.

• Capital allocation will prioritize strategic acquisitions, complemented by ongoing buybacks and dividends.

• Management remains focused on disciplined inorganic growth and maintaining strong investment performance.