Dennis, Policarpo, with over results the Then of who review to of Call. Investor I detail. Officer; President, Relations. morning, will Administrative financial start our joined a overview Good Chief business to of it Thanks, Director Matt. quarter. Matt Michael greater our well XXXX Capital's Staff and welcome Mike, will our Chief as as I'm Quarter Victory turn today by in Second I'm Earnings Financial going and to
report I more on the first This Mike, half testament different our produced revenue, our that and to market of is business March conditions, Matt billion $XXX.X from the of but X. which I'm COVID-XX, the the our and remarks, in volatility profit areas on to complexities end to a record At results market deliver to a generated for designed begins across to to model, the for quarter, overview for robust year. than earnings Despite XXX% to at ability of XXXX. only not billion execute quarter long-term and half pleased Slide questions. quarter to second first $XXX.X record net of grew number AUM was all growth and The to of second our quarter financial AUM will business strategy. available XX. Following related up relative margins the Victory also be prepared we up take the successfully end, is profitability XXXX. Capital
to brokerage to at Turning caused clients the One transfer acquisition of their to chose competitors some consent or was their be tied flows. can brokerage and business nature end of of Schwab, with holdings. directly of on that liquidated accounts causes asset USAA than compared accounts the impact of part same brokerage who traditional fund leakage disruption in Schwab May. and assets. was at We movement some management This of the closing by USAA's outflows the onetime in flows experienced to time, all acquisition significant other which of mutual process the
since continued movement of we date. level the see we the closing expected, improvement than to higher While slightly was have
the conjunction were Schwab's they UMP for not were in a in-house brokerage These therefore, outflows previously, addition, USAA market delays platform. We've expected and businesses, its and In as for trust profitable million USAA moved and assets of the firm investments subject capabilities, money experienced resulted in were us. billion as transitioned of and the franchise. service products sale from in USAA $X we short-term managed gaining approximately tied outflows long-term revenue-sharing our in These credit disclosed the markets. shelf Moreover, and to fixed net also which to us. arrangement income funds in our $XXX space with also impact for the trust the experienced by to business disruption net a delays in to COVID-XX with
activity We believe this a slowdown. was up back and are pick seeing just temporary
in in institutional processes search allocation as pause channel we delayed to saw Additionally, and due COVID-XX. activities certain decision-makers our a temporary finals
our We are institutional starting intermediary to see channels. to normal in and levels activity return
strong remain won and our and building pipelines momentum. nice yet sales funded quickly growing not but and are Our has book is
number is nature, for are we direct we've impact the calendar this perspective XXXX, of our channel over within this be have aforementioned some especially our the the work via growth a speed and the merely positive expect digital is this of in we the experienced to which longer growth factors, in year Overall, quarters bump and many milestone will of to of generate from first into achieving discuss of we this the to outlook ability are the over the term. platform, will of later I believe in launch remainder a Additionally, flow which attributed items. efforts a our organic close in occur our the is a we an long new trending the as term. important to year onetime positive what through presentation. flows onetime To on flows way on during the on X clear, year detail in and
the quarter, business our was for improved model. high XX.X% $XX.X at efficiency $X.XX for EBITDA a record to further was and of and the quarter, financial of share, million. adjusted demonstrating Adjusted per our benefit tax diluted or margin EBITDA the power Looking net income results
Our investment the of benchmarks XXXX. with period outstanding generated XX, during AUM performance outperforming three-year franchises for quarter, June XX% total second investment the ended
their benchmarks. outperformed total of For AUM our respective the five-year period, XX%
to debt. from currently. $X.X ended XX% continued the with million $XX capital billion We disciplined strategy. of of balance July down end, down we bring in quarter debt by allocation Subsequent $XXX to to million million We our $XXX XXXX. That's outstanding additional the reduced quarter
We have cost hedge. repricing strong by significantly debt XX% dividend and reflects rate cash The announced flows implementing through our also cash Board projected our the our today current of interest an increase reduced business. for and
allocation currently of During do was have flexibility the our free top used has cash quarter, for the preparation reduce acquisitions To clear, flow in most been future. that our our potential to debt be we evaluating. that opportunities reduce the capital debt always we acquisition to as strategy to so priority, are in
secondary about months, also this lives. objectives. programs times. want also deal organization are We've hard continued their on to business stock exceptional being for I during work a adaptable, their disruption our a our dedication talented to future. as of our the importance acknowledge doing the these substantial dividend Our to clients despite several during our nimble deliver in an behalf personal in buyback past We've clients professionals and and learned to benefit which and unprecedented great of service our the clients will and
over since of the to USAA's X. has Asset business X Turning just substantial year made been want that I closed acquisition ago. we progress discuss the to Management Slide
that year, for members channel, a so was service the a members USAA receiving. channel, paramount X high our we a last of foundation direct same replicating refresher, direct are again in level USAA once that accustomed As to July creating could We invest reopened the on success knew of to directly.
provide bring that As at member quickly as today. parallel channel. level during surveys we've enhance dedicating remain and and members. quite and our USAA foundation were which the service successfully handle success In digital platform was resources our we our technology, In of to Genesys based business professional goal our with to scores call our completed integration our efforts ownership, enhanced an is improved efficiency. to in platform, times and April, and on launched first financial for will quarter the above system new been achievement our this That on for
so richer marketing with the our attract members be is platform. digital transact combination excellent experience the and supported existing of service digital new delivering is gain and to a rolling by significantly channel. our a formula new in new for fully Later modern better wallet integrated advance or marketing who out online. share initiatives from and state-of-the-art and supported our opportunities platform, going supports campaigns, representatives our to success members we'll system center prefer is to platform. innovative The marketing be while growth channel year, new digital CRM this contact our our members focused technology, a for it direct the this with Additionally, This to
the specifically the of about close a we XX,XXX acquisition provide members. Account were date. year. half equates in single-digit brand accounts. Since We talk closed in benefit we've set of growth to to X, we That high diversified some XXX opportunity I'd rate, from to approximately Plan reopened more and support last examples XXXX to with channel the to progress the strong and ability mutual of first growth and new minimal fund to of leverage the deliver annual second will openings date. USAA opened channel, to to like marketing our direct only to the our half in XX% up On relative Slide also products see the a
results good will into investment opportunity plan, Again, limited only with execute efforts our is College our registrations an marketing monthly and a us. The Additionally, and our mutual for growth these automatic XX% USAA new represents a for recurring Savings of example expect fund against approximately our growth progress plan accelerate are and complete as that achieved electing investments represents XXX products. we support channel. build integration Plan we this which
is a periods. plans. of year-to-date XXX those USAA XXX same than positive also net Plan of acquisition. up investment the set XXX close Plan we Net up accounts the new provider Plan AUM are for as time the exclusive the XXX As Plan. flow are of accounts automatic and since XX% are More reminder,
the a those in seeing we're military new strong our the even first to campaign we'll media online we of community presence. with engagement launching when by in In the Additionally, improve The military our and to general. among versus trend campaign expect designed U.S., a and is regions membership USAA each brand in and number launch increase opening see drive awareness strong numbers experience. be QX, further a accounts multichannel phone digital towards
in which We grow expect efforts time, to the of these will of both scale growth frequency support and the kinds channel. over
our USAA that to choice we mutual for expand digital new are QX, funds as advisers classes we share to through are advisers. the members ensuring we efforts, focused financial well to At continuing added that and addition on additional and several their we provide as the expertise to investment In marketing to end of offer end-clients.
later funds platform. means We will a able this member share will introducing no-load year. directly not mutual previously members new and for Victory This XX be invest the be USAA available classes of to in existing on class funds funds also asset our through that
Additionally, intend military this X VictoryShares developed thematic X ETFs year, community. launch of to the which for new are specifically we being
Schwab trusted for business community. and Finally, service. serve to we to a partner and provide serve excited commitment with and are USAA alongside to programs We're client to is exceptional partnering them focused Schwab be the our military long-time working members members. deliver shares
Turning to referral I'd like additional our provide Slide USAA. detail with some agreement X. around to
place to an report in us million USAA who to that not market our is XX.X process continue working. with to We partner the have today. pleased I'm do referral approximately to we USAA products with that have account members
gained of run a page USAA, our behalf. we've since membership broader As of opening a includes mutual and The Once as system e-mail connectivity there Victory Plan a previous brand, doing Capital with by automated Victory Plan contact or clear previously, strong for fund the a generation determined a whom chooses us. in with them are The license is direct toll-free to USAA's questions and part online is other is tactics. last usaa.com, which USAA USAA experienced path asked Keep a XXX them member account campaigns to I to appropriate to efforts USAA response mutual members. the This call if and that voice referral demand series is which mentioned by is easy A we among member exclusive mind registration it center, many accesses process on core the employees. paid July. that USAA XX,XXX media representatives, XXX well account to number. fund service member Capital on staffed of creates use have an
the outstanding results So they for military I and the the quarter. On of our investment understand Slide members. community will importance review service providing XX, to
International income those trailing significantly of funds out as investment of June and funds performance our five funds by improved XX. mutual three-year as and in overall placement company-wide As of June I, was franchise, quarter-over-quarter. X managed RX XX% were AUM XX ETFs the XX% funds quintile June ranked the XX. and by This ranked XX The which our by USAA the us its of X Victory were period NASDAQ-XXX those Nine top Cap ranked institutional, the Small-Cap Stock Morningstar Trivalent including distribution USAA Performance products of for ranked AUM Investments in X-year of by over or respective or efforts. of were USAA four overall Morningstar will top was excellent in Class XX, Stars stars benchmarks the funds, trailing outperforming decile. help Index fixed in Class Small X Morningstar. period percentage of in
our the the achieved three quarter VictoryShares ranked to and five top four recap three VictoryShares three-year On model. as Morningstar, of from ETFs, ETF, Dividend the shares the XX. at of in Accelerator ranked overall ETFs, quartile ETF the one-year Slide period. and respectively, I'd Minimum Morningstar five including percentile second for Volatility Looking our performance track were and rankings benefits XX, earned by in Victory Stars, business Two top of their like trailing Multi-Factor during next-generation records June of
maintain are growth in a are industry We status struggling company where quo. the most to the
combines centralized distribution the with model, unique. which is a fully autonomous and Our genuinely qualities benefits integrated, of operating platform, investment
highlights effectiveness our and of to the effectively current resiliency the model. environment ability navigate Our
Our real facing such lack ownership, as complexity, from of structure operating none control partial redundancies share the avoids multi-boutiques, of these of We disadvantages or lacks scale. challenges.
separate our effective Victory view a ourselves franchise Let independently-branded not single in me not but their our This a generate Capital as to process investment while entities, provides platform be alpha. autonomous completely platform. multi-boutique. are to and solutions their clear, do investment investment and also remain part of we franchises registered our adviser quest each is in controls and allowing company
mitigates creates our franchises Additionally, alignment, with redundancies. model no complexity our have operating we revenue-sharing and significant and
model significant unique M&A Finally, culture our makes current the ability each preserve while to franchise our very to centralized platform environment. of synergies our investment to conducive achieving the
it Mike financial Now I'll Mike? review. his turn over to for
