Key Highlights

• Record long-term gross sales of $30.5 billion and record net inflows of $11.7 billion in Q3 2026, representing an annualized organic growth rate of approximately 14%

• Total client Assets reached a record $355.5 billion at quarter-end, with AUM of $351.9 billion

• Adjusted EBITDA Margin of 53.5% for the quarter, with the company returning $81 million to shareholders

• Victory Capital announced a definitive agreement to acquire First Eagle Investments, with closing expected by the end of Q1 2027

Victory Capital Holdings, Inc.(NASDAQ:VCTR), a diversified global asset management firm, reported financial results for the third quarter ended September 30, 2026, delivering record levels across multiple key performance metrics. The company recorded long-term gross sales of $30.5 billion and long-term net inflows of $11.7 billion, both all-time highs. Year-to-date, long-term net flows reached $15.4 billion.

Record Assets and Flow Momentum

Total client assets reached $355.5 billion at the end of the quarter, a record. Average assets under management for the period were $350.6 billion, compared with $331.3 billion in Q2 2026 and $303.6 billion in Q3 2025. The long-term net inflows of $11.7 billion represented an annualized organic growth rate of approximately 14%. The drivers of the record gross sales and net flows were described as broad-based, with U.S. intermediary, U.S. institutional, and international channels each generating positive long-term net flows. Net flows were positive across multiple asset classes including fixed income, solutions, and global equity, with contributions from multiple Investment Franchises and the Solutions Platform, driven by the VictoryShares ETF platform. Chairman and CEO David C. Brown noted that these results showcase the breadth and depth of the company's product set and distribution capability.

Financial Performance and Margins

On a GAAP basis, Operating Margin for Q3 2026 was 34.7%, with Net Income per diluted share of $1.11. On an adjusted basis, EBITDA margin was 53.5% for the quarter and 54.0% year to date. Adjusted net income with tax benefit per diluted share was $1.98. The company described this margin as industry-leading, reflecting the durability of its platform and disciplined management across all dimensions of the business. During the quarter, Victory Capital returned $81 million to shareholders, consisting of $39 million in share repurchases and the remainder through dividends. The Board declared a regular quarterly cash Dividend of $0.50 per share.

Investment Performance and First Eagle Acquisition

Investment performance during the quarter showed that 60%, 69%, 63%, and 77% of AUM outperformed benchmarks over the respective 1-, 3-, 5-, and 10-year periods. Additionally, 62% of rated Mutual fund and ETF AUM held an Overall Morningstar Rating of four or five stars. In August 2026, Victory Capital announced a definitive agreement to acquire First Eagle Investments. The Acquisition is expected to add scale across the business, increase distribution footprint both domestically and internationally, and bring complementary Equity and fixed income capabilities along with a scaled CLO and alternative Credit platform. The transaction is expected to close by the end of Q1 2027, subject to customary closing conditions, regulatory approvals, and client consents. Integration planning is underway.

Looking Ahead

Victory Capital's Q3 2026 results highlight a period of record-setting asset gathering and operational execution. The company's ability to generate $11.7 billion in net inflows across multiple channels and asset classes, while maintaining an adjusted EBITDA margin above 53%, reflects the scale of its diversified platform. The pending acquisition of First Eagle Investments represents a transformational transaction that would further expand the firm's capabilities and global reach. The company's focus on serving clients while preparing for integration of the acquisition will shape the trajectory of the coming quarters.