Victory Capital Holdings, Inc. Goodwill & Intangibles Disclosure
NOTE 9. Goodwill and Other Intangible Assets
The following table presents changes in the goodwill balance for the periods ended December 31, 2025 and 2024:
|
|
December 31, |
|
|||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
||||
Balance, beginning of period |
|
$ |
|
981,805 |
|
|
$ |
|
981,805 |
|
Goodwill recorded in Amundi US acquisition |
|
|
|
254,135 |
|
|
|
|
— |
|
Balance, end of period |
|
$ |
|
1,235,940 |
|
|
$ |
|
981,805 |
|
There were no impairments to goodwill recognized during the years ended December 31, 2025, 2024 or 2023.
Identifiable Intangible Assets
The following table presents a summary of indefinite‑lived intangible assets by type:
|
|
Fund |
|
|
|
|
|
|
|
|
|||||
|
|
Agent and |
|
|
Trade |
|
|
|
|
|
|||||
(in thousands) |
|
Contracts |
|
|
Names |
|
|
Totals |
|
||||||
December 31, 2023 balance |
|
$ |
|
1,113,000 |
|
|
$ |
|
16,800 |
|
|
$ |
|
1,129,800 |
|
Additions or transfers |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
December 31, 2024 balance |
|
$ |
|
1,113,000 |
|
|
$ |
|
16,800 |
|
|
$ |
|
1,129,800 |
|
Amundi US Acquisition |
|
|
|
949,000 |
|
|
|
|
17,000 |
|
|
|
|
966,000 |
|
December 31, 2025 balance |
|
$ |
|
2,062,000 |
|
|
$ |
|
33,800 |
|
|
$ |
|
2,095,800 |
|
During 2023, the Company recognized a $3.8 million impairment loss on an indefinite-lived trade name asset primarily due to changing the asset’s estimated remaining useful life. The asset was transferred to definite lived intangible assets and the remaining book value of the asset was amortized on a straight-line basis over the asset’s remaining economic life. The impairment loss was recorded in depreciation and amortization in the Consolidated Statements of Operations. There were no impairments to indefinite-lived intangible assets recognized in 2025 and 2024.
The following table presents a summary of definite‑lived intangible assets by type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(in thousands) |
|
Customer |
|
|
Fund Advisory Contracts/Other |
|
|
Trade Names |
|
|
|
Intellectual Property/Other |
|
|
Totals |
|
|||||||||
Gross book value - December 31, 2024 |
|
$ |
|
310,286 |
|
|
$ |
|
— |
|
|
$ |
|
45,462 |
|
|
$ |
|
7,547 |
|
|
$ |
|
363,295 |
|
Accumulated amortization |
|
|
|
(182,925 |
) |
|
|
|
— |
|
|
|
|
(42,009 |
) |
|
|
|
(7,547 |
) |
|
|
|
(232,481 |
) |
Net book value - December 31, 2024 |
|
$ |
|
127,361 |
|
|
$ |
|
— |
|
|
$ |
|
3,453 |
|
|
$ |
|
— |
|
|
$ |
|
130,814 |
|
Weighted average useful life (yrs) |
|
|
|
6.5 |
|
|
|
|
|
|
|
|
2.3 |
|
|
|
|
|
|
|
|
6.2 |
|
||
Gross book value - December 31, 2025 |
|
$ |
|
387,286 |
|
|
$ |
|
247,068 |
|
|
$ |
|
45,462 |
|
|
$ |
|
7,547 |
|
|
$ |
|
687,363 |
|
Accumulated amortization |
|
|
|
(215,933 |
) |
|
|
|
(37,890 |
) |
|
|
|
(44,176 |
) |
|
|
|
(7,547 |
) |
|
|
|
(305,546 |
) |
Net book value - December 31, 2025 |
|
$ |
|
171,353 |
|
|
$ |
|
209,178 |
|
|
$ |
|
1,286 |
|
|
$ |
|
— |
|
|
$ |
|
381,817 |
|
Weighted average useful life (yrs) |
|
|
|
4.6 |
|
|
|
|
6.1 |
|
|
|
|
0.7 |
|
|
|
|
|
|
|
|
5.2 |
|
|
The Company recorded $77.0 million of definite-lived intangible assets related to customer relationships with weighted average useful lives 4.4 years and $235 million of definite-lived intangible assets related to fund advisory contracts with weighted average useful lives of 6.9 years as a result of the Amundi US acquisition, which is included as a component of other intangible assets, net in the accompanying Consolidated Balance Sheets. Amortization expense for definite‑lived intangible assets for the years ended December 31, 2025, 2024 and 2023 was $61.6 million, $21.2 million and $29.0 million, respectively, and is recorded in depreciation and
amortization in the Consolidated Statements of Operations. There were no impairments to definite-lived intangible assets recognized in 2025, 2024 or 2023.
The following table presents estimated amortization expense for definite‑lived intangible assets for each of the five succeeding years and thereafter:
2026 |
|
$ |
|
72,340 |
|
2027 |
|
|
|
71,952 |
|
2028 |
|
|
|
70,007 |
|
2029 |
|
|
|
60,204 |
|
2030 |
|
|
|
50,779 |
|
Thereafter |
|
|
|
56,535 |
|
Total |
|
$ |
|
381,817 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 29, 2018 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.