Victory Capital Holdings (NASDAQ:VCTR) Q3 2025 Earnings: EPS Beats, Revenue Misses Estimates

Victory Capital Holdings Inc (NASDAQ:VCTR) has announced its financial results for the third quarter of 2025, delivering a performance that presents a mixed picture when measured against analyst expectations. The firm reported record results, largely fueled by its recent acquisition, though it fell short of revenue forecasts while surpassing earnings estimates.

Earnings and Revenue Versus Estimates

The company's top-line revenue came in below what the market had anticipated. For the quarter, Victory Capital reported revenue of $361.2 million. This figure fell short of the analyst consensus estimate of approximately $370.9 million.

Conversely, the company's profitability on a per-share basis exceeded expectations. Victory Capital posted adjusted earnings per share (EPS) of $1.63. This outperformed the analyst estimate of $1.58 per share. The stronger-than-expected EPS can be attributed to significant expense management and synergies from recent integrations.

The key quarterly figures compared to estimates are summarized below:

• Reported Revenue: $361.2 million
  • Analyst Estimate: $370.9 million
• Reported Adjusted EPS: $1.63
  • Analyst Estimate: $1.58

Market Reaction and Price Action

The market's immediate response to these results appears muted, reflecting the dichotomy between the revenue miss and the earnings beat. The stock showed no significant movement in after-hours trading following the announcement. This neutral short-term reaction suggests investors are balancing the positive surprise on profitability against the weaker revenue generation.

Examining the recent performance provides further context:

• The stock has declined approximately 8.5% over the past month.
• It is down about 2.3% over the past two weeks.

This recent weakness indicates that some negative sentiment or caution may have been priced into the stock ahead of the earnings release, potentially softening the impact of the revenue shortfall.

Summary of Quarterly Performance

Beyond the earnings and revenue figures, the press release highlighted several strong operational achievements for the quarter. The company's assets under management (AUM) reached a record $310.6 billion, a significant increase from $176.1 billion in the same quarter last year, heavily influenced by the acquisition of Amundi US, now rebranded as Pioneer Investments.

Other key takeaways from the quarter include:

• Improved Flows: Long-term net outflows narrowed substantially to $244 million, marking the fourth consecutive quarter of improvement.
• ETF Growth: ETF products contributed $5.4 billion in positive net flows through the first three quarters of the year.
• Strong Investment Performance: A substantial portion of the firm's AUM outperformed its benchmarks over 3-, 5-, and 10-year periods.
• Capital Return: The company returned approximately $163 million to shareholders through share repurchases and cash dividends.
• Solid Profitability: Adjusted EBITDA margin expanded to 52.7%, up from 50.8% in the previous quarter.

Looking Ahead

While the press release did not provide a specific quantitative financial outlook for the coming periods, management expressed confidence in their integration progress and their ability to deliver on $110 million in net expense synergies from the Pioneer acquisition.

Analysts have already established estimates for the company's future performance. For the next quarter (Q4 2025), the consensus estimates are:

• Revenue Estimate: $380.1 million
• EPS Estimate: $1.65

For the full 2025 year, analysts are projecting:

• Revenue Estimate: $1.33 billion
• EPS Estimate: $6.17

Investors and followers of Victory Capital can review detailed historical earnings and future estimates on the dedicated earnings estimates page for VCTR.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The data presented is based on publicly available information and analyst estimates, which are subject to change. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.