Victory Capital Q3 revenue falls sequentially, misses estimates amid changes in client mix and asset classes
VCTR•Victory Capital’s Q3 revenue rose year over year but fell sequentially to $396.6 million, missing the $409 million estimate; adjusted net income of $152.5 million also missed estimates. The company reported record client assets and net inflows.
1. Revenue and earnings
Victory Capital reported Q3 revenue of $396.6 million, below the $409.004 million analyst estimate, and adjusted net income of $152.5 million, below the $156.93 million estimate. Revenue rose year over year but declined sequentially, which the company attributed to the timing of annual fee crystallization and changes in asset-class and client mix.
2. Flows and acquisition
The company reported record client assets, gross sales and net inflows, citing positive flows across U.S. intermediary, institutional and international channels and multiple asset classes. It said strong investment performance contributed to results, with a majority of assets under management outperforming benchmarks over multiple periods. Victory Capital expects its First Eagle acquisition to close by the end of Q1 2027 and is focused on integration planning.
