Victory Capital Holdings, Inc. Segments Disclosure
NOTE 19. SEGMENT REPORTING
ASU 2023-07, which is based on a management approach to segment reporting, establishes requirements to report segment revenue and significant expenses reported in Net income, the primary measurement used by our CODM in evaluating segment performance.
The Company provides investment management services and products to institutional, intermediary, retirement platforms and individual investors. The presentation of financial results as one reportable segment is consistent with the way discrete financial information is available that is regularly provided to our , the CODM. When making decisions about allocating resources, assessing performance, and understanding how our long-term organic revenue growth is driven by investment decisions our CODM uses Net income and considers the impact on consolidated, entity-wide performance and financial results.
Significant segment expenses are presented in the Consolidated Statements of Operations. Additional disaggregated significant segment expenses that are not separately presented in the Consolidated Statements of Operations are presented below. Supplemental information related to significant segment expenses included the Consolidated Statements of Operations is as follows:
|
|
Year Ended December 31, |
|
||||||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
Salaries, payroll related taxes and employee benefits |
|
$ |
|
136,161 |
|
|
$ |
|
88,599 |
|
|
$ |
|
90,884 |
|
Incentive compensation |
|
|
|
140,133 |
|
|
|
|
102,712 |
|
|
|
|
87,081 |
|
Sales-based compensation(1) |
|
|
|
38,661 |
|
|
|
|
24,338 |
|
|
|
|
20,945 |
|
Equity awards granted to employees and directors(2) |
|
|
|
20,442 |
|
|
|
|
15,220 |
|
|
|
|
16,548 |
|
Acquisition and transaction-related compensation(3) |
|
|
|
27,594 |
|
|
|
|
(13,655 |
) |
|
|
|
5,534 |
|
Total personnel compensation and benefits expense |
|
$ |
|
362,991 |
|
|
$ |
|
217,214 |
|
|
$ |
|
220,992 |
|
|
|
Year Ended December 31, |
|
||||||||||||
(in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
||||||
Broker-dealer distribution fees |
|
$ |
|
70,725 |
|
|
$ |
|
20,222 |
|
|
$ |
|
20,275 |
|
Platform distribution fees |
|
|
|
121,734 |
|
|
|
|
89,233 |
|
|
|
|
92,509 |
|
Sub-administration |
|
|
|
21,015 |
|
|
|
|
17,010 |
|
|
|
|
15,877 |
|
Sub-advisory |
|
|
|
7,471 |
|
|
|
|
9,152 |
|
|
|
|
10,576 |
|
Middle-office |
|
|
|
11,046 |
|
|
|
|
10,872 |
|
|
|
|
10,359 |
|
Total distribution and other asset-based expenses |
|
$ |
|
231,991 |
|
|
$ |
|
146,489 |
|
|
$ |
|
149,596 |
|
Substantially all of the Company’s identifiable assets are located in the United States. In addition, we have historically derived substantially all of our revenue from clients in the United States.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.