Victory Capital Reports 60% Revenue Growth to $351.2 Million in Q2 2025

Victory Capital Holdings, Inc. reported significant financial results for the second quarter of 2025, with total revenue reaching $351.2 million, a 60% increase from $219.6 million in the same period last year. For the first half of 2025, revenue totaled $570.8 million, up from $435.5 million in the prior year. The increase in revenue was primarily driven by a substantial rise in investment management fees, which surged to $282.3 million from $173.2 million year-over-year, reflecting a 63% increase. Fund administration and distribution fees also rose, reaching $68.9 million, compared to $46.5 million in the previous year.

Despite the revenue growth, net income for the second quarter decreased to $58.7 million, down from $74.3 million in the prior year, while net income for the first half of 2025 was $120.7 million, compared to $129.9 million in 2024. The decline in net income was attributed to increased expenses, particularly in personnel compensation and benefits, which rose to $108.9 million from $55.7 million, largely due to higher salaries and acquisition-related costs. The company also incurred $25.8 million in acquisition-related costs during the quarter, primarily associated with the acquisition of Amundi US.

Victory Capital's assets under management (AUM) experienced a remarkable increase, reaching $298.6 billion as of June 30, 2025, a 78.3% rise from $167.5 billion at the end of the previous quarter. This growth was largely due to the acquisition of $114 billion in AUM from Pioneer Investments, along with $20.2 billion in market appreciation, despite facing $0.8 billion in net outflows. The company reported gross client cash inflows of $15.7 billion for the quarter, compared to $6.1 billion in the same period last year.

Strategically, Victory Capital completed the acquisition of Amundi US on April 1, 2025, which has significantly enhanced its scale and diversified its investment capabilities. The acquisition involved issuing 3.3 million shares of common stock and 19.7 million shares of preferred stock to Amundi, representing a substantial addition to the company's equity structure. The integration of Pioneer Investments is expected to further bolster Victory's market position and client base.

Looking ahead, Victory Capital anticipates continued growth driven by its expanded product offerings and enhanced distribution capabilities. The company remains focused on leveraging its integrated business model to attract new clients and retain existing ones, while navigating market conditions and potential challenges related to client withdrawals and investment performance. The management expressed confidence in achieving sustainable growth and maintaining strong investment returns across its diversified strategies.