Victory Capital (VCTR) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with total client assets reaching $346.1 billion, up 11–15% sequentially and year-over-year, driven by $22.1 billion in gross flows and $4.2 billion in net long-term inflows.

• Completed integration of Pioneer Investments (Amundi US), realizing $110 million in net run rate expense synergies and expanding global scale and product diversity.

• Investment performance remained strong, with 71% of AUM outperforming benchmarks over one year and 81% over ten years; 60% of AUM rated four or five stars by Morningstar.

• Diversified business mix: U.S. equity 31%, solutions 32%, fixed income 24%, global/non-U.S. equity 11%.

• Record highs in revenue, Adjusted EBITDA, margins, and EPS.

Financial highlights

• Q2 2026 revenue was $435.4 million, up 12% sequentially and 24% year-over-year.

• Adjusted EBITDA reached $243 million (55.8% margin), up 19% sequentially and 36% year-over-year.

• Adjusted EPS was $2.21, up 21% sequentially and 41% year-over-year.

• GAAP net income for Q2 2026 was $139.4 million, up 137% year-over-year.

• Net leverage ratio at 1.0x adjusted EBITDA; ended quarter with $70 million in cash.

Outlook and guidance

• Updated long-term adjusted EBITDA margin guidance to 50%, reflecting structural efficiency gains.

• Expect average fee rate to remain in the 46–47 basis point range.

• Continued focus on organic and inorganic growth, with an active acquisition pipeline and disciplined capital allocation.

• Positive flow momentum expected to continue, supported by a significant won-but-unfunded pipeline.

• Focus remains on diversifying AUM by asset class, channel, and geography.