Victory Capital Holdings reported strong financial results for the third quarter ended September 30, 2024, achieving record adjusted earnings per diluted share with tax benefit of $1.35, an 11.6% increase from $1.18 in Q3 2023. Adjusted EBITDA reached $121.3 million, up 13.1% year-over-year, with an adjusted EBITDA margin of 53.7%.
Total revenue for the quarter increased by 7.6% year-over-year to $225.6 million, driven by higher average assets under management (AUM). GAAP net income rose 57.6% to $82.0 million, or $1.24 per diluted share, compared to $52.0 million, or $0.77 per diluted share, in the same period last year.
As of September 30, 2024, total client assets stood at $181.1 billion, with AUM at $176.1 billion. The company experienced long-term AUM net outflows of $2.6 billion during the quarter, partially offset by positive market action of $10.1 billion.
The Board of Directors authorized a 7% increase in the quarterly cash dividend, raising it from $0.41 to $0.44 per share, payable in December. This marks a continued commitment to returning capital to shareholders.
Progress on the Amundi transaction continued, with the company reaffirming its guidance of $100 million in annualized expense synergies. The acquisition is still anticipated to close in the first quarter of 2025, which is expected to further enhance the company's scale and distribution capabilities.
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