| Revenue Recognition |
NOTE 2. REVENUE RECOGNITION In accordance with the revenue recognition standard requirements, the following table disaggregates our revenue by type and product:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Investment management fees |
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Mutual funds (Victory Funds) |
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$ |
195,214 |
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$ |
175,308 |
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$ |
384,324 |
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$ |
289,649 |
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ETFs (VictoryShares) |
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15,892 |
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9,834 |
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30,920 |
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18,563 |
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Separate accounts and other vehicles |
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91,102 |
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78,103 |
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177,970 |
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126,096 |
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Performance-based fees |
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Mutual funds (Victory Funds III & IV) |
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4,134 |
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1,607 |
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8,488 |
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3,798 |
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Separate accounts and other vehicles |
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55,901 |
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17,454 |
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76,910 |
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17,501 |
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Total investment management fees |
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$ |
362,243 |
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$ |
282,306 |
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$ |
678,612 |
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$ |
455,607 |
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Fund administration and distribution fees |
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Administration fees |
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Mutual funds (Victory Funds) |
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33,906 |
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32,333 |
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66,827 |
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59,178 |
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ETFs (VictoryShares) |
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1,603 |
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1,218 |
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3,086 |
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2,312 |
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Distribution fees |
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Separate accounts and other vehicles |
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1,129 |
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1,033 |
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2,387 |
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1,033 |
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Mutual funds (Victory Funds) |
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24,270 |
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21,552 |
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47,801 |
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26,899 |
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Transfer agent fees |
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Mutual funds (Victory Funds III) |
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12,210 |
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12,770 |
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24,637 |
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25,785 |
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Total fund administration and distribution fees |
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$ |
73,118 |
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$ |
68,906 |
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$ |
144,738 |
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$ |
115,207 |
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Total revenue |
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$ |
435,361 |
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$ |
351,212 |
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$ |
823,350 |
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$ |
570,814 |
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The following table presents balances of receivables:
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(in thousands) |
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June 30, 2026 |
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December 31, 2025 |
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Customer receivables |
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Mutual funds (Victory Funds) |
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$ |
90,026 |
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$ |
91,191 |
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ETFs (VictoryShares) |
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6,615 |
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5,499 |
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Separate accounts and other vehicles |
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142,078 |
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80,193 |
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Receivables from contracts with customers |
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238,719 |
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176,883 |
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Non-customer receivables |
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5,611 |
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4,258 |
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Total receivables |
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$ |
244,330 |
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$ |
181,141 |
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Revenue The Company’s revenue includes fees earned from providing; •investment management services, •fund administration services, •fund transfer agent services, and •fund distribution services. Revenue is recognized for each distinct performance obligation identified in customer contracts when the performance obligation has been satisfied by transferring services to a customer either over time or at the point in time when the customer obtains control of the service. Revenue is recognized in the amount of variable or fixed consideration allocated to the satisfied performance obligation that Victory expects to be entitled to in exchange for transferring services to a customer. Variable consideration is included in the transaction price only when it is probable that a significant reversal of such revenue will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
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