Victory Capital Holdings reported record financial results for the second quarter ended June 30, 2025, reflecting the initial full quarter impact of the Amundi U.S. acquisition. Adjusted earnings per diluted share with tax benefit reached $1.57, a 53.3% increase from $1.31 in Q2 2024. Adjusted EBITDA was $178.5 million, up 53.2% year-over-year, with an adjusted EBITDA margin of 50.8%.
Total revenue for the quarter surged by 59.9% year-over-year to $351.2 million, primarily driven by the substantial increase in average assets under management (AUM) from Pioneer Investments. Gross sales increased to $15.4 billion, and long-term net outflows improved to just 23 basis points of AUM.
As of June 30, 2025, total client assets stood at $301.6 billion, with AUM at $298.6 billion, representing a significant increase of $131.1 billion from March 31, 2025. This growth was primarily due to $114.6 billion in acquired AUM from Amundi U.S. and $20.2 billion in positive market action.
Integration activities for the Amundi acquisition progressed as planned, with approximately $70 million of the expected $110 million in net expense synergies achieved by the end of June. This rapid realization of synergies underscores the effectiveness of the company's integration capabilities.
The company's financial condition strengthened, with the net debt to leverage ratio improving to a post-IPO low of 1.2x at June 30, 2025. The Board of Directors authorized an increase in the share repurchase program from $200 million to $500 million and extended it through December 31, 2027, demonstrating a strong commitment to returning capital to shareholders.
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