Virtu Financial, Inc. (VIRT) reported second-quarter 2024 adjusted earnings per share (EPS) of 83 cents, which outpaced the Zacks Consensus Estimate by 33.9%. The bottom line jumped from 37 cents per share a year ago. Adjusted net trading income improved more than 36% year over year to $385.1 million in the quarter under review. It beat the consensus estimate by 15.8%. The strong second-quarter results benefited on the back of strong revenue contribution from the Market Making segment and higher revenues fr ...

Over the last four quarters, the company has surpassed consensus EPS estimates three times. Virtu Financial shares have added about 16% since the beginning of the year versus the S&P 500's gain of 17.2%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. It will be inter ...

Execution Services Market Making Major Market Metrics ➢ Clarity on results at different ANTI levels • Maintained expense discipline • Repurchased 1.4M shares for $31M in 2Q 20244 2Q 2024 Key Financials Commentary & Highlights See endnotes at end of this supplement o Cumulative repurchases of 47.3M shares for over $1.18B, representing 18.2% of shares outstanding, net of issuances4,5 2 Key Financial Metrics Daily Average Adj. NTI1 Trend YTD 2Q 2024 share buybacks ($67M) in line with guidance © 201X Virtu Fina ...

Second Quarter 2024: The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on September 15, 2024 to shareholders of record as of September 1, 2024. Financial Results Total revenues increased 36.7% to $693.0 million for this quarter, compared to $506.9 million for the same period in 2023. Trading income, net, increased 39.3% to $426.4 million for the quarter compared to $306.2 million for the same period in 2023. Net income totaled $128.1 ...

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP finan ...

"Maria is an accomplished athlete and exceptional role model. She is well on her way to future success on the international show jumping stage, including representing the United States at the 2028 Olympics. Virtu is proud and honored to help support Maria in the quest to achieve her championship goals," said Douglas A. Cifu, Virtu's Chief Executive Officer. Investor Relations and Media Relations Andrew Smith investor_relations@virtu.com media@virtu.com Ms. Costa has several equestrian accomplishments in her ...

Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Virtu Financial (VIRT) and Blackstone Inc. (BX) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Virtu Financial (VIRT) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 18, 2024, might help the stock move higher if these key numbers are better than ex ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements for Q1 2024 and related detailed notes [Condensed Consolidated Statements of Financial Condition (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition%20(Unaudited)) Total assets decreased to $12.8 billion while total equity slightly increased to $1.4 billion as of March 31, 2024 Condensed Consolidated Statements of Financial Condition (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total assets** | **$12,789,715** | **$14,466,384** | | Cash and cash equivalents | $399,585 | $820,436 | | Trading assets, at fair value | $6,447,132 | $7,358,611 | | Goodwill | $1,148,926 | $1,148,926 | | **Total liabilities** | **$11,365,638** | **$13,061,028** | | Trading liabilities, at fair value | $5,694,997 | $6,071,352 | | Long-term borrowings | $1,726,657 | $1,727,205 | | **Total equity** | **$1,424,077** | **$1,405,356** | [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Q1 2024 revenue rose to $642.8 million, with net income stable at $111.3 million and diluted EPS increasing to $0.59 Q1 2024 vs Q1 2023 Performance (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenue | $642,839 | $620,380 | | Trading income, net | $408,095 | $412,511 | | Total operating expenses | $503,019 | $485,615 | | Net income | $111,308 | $110,083 | | Net income available for common stockholders | $55,817 | $57,881 | | Basic EPS | $0.59 | $0.56 | | Diluted EPS | $0.59 | $0.56 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash used in operating activities increased significantly, resulting in a $426.1 million net decrease in cash Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(395,414) | $(148,382) | | Net cash used in investing activities | $(27,476) | $(35,783) | | Net cash provided by (used in) financing activities | $362 | $(46,544) | | **Net decrease in cash and cash equivalents** | **$(426,054)** | **$(229,061)** | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Details key accounting policies, segment performance, goodwill, derivatives, debt, and ongoing legal proceedings - The company operates through two main segments: Market Making and Execution Services, with Market Making contributing **$127.0 million** of pre-tax income in Q1 2024[29](index=29&type=chunk)[179](index=179&type=chunk) - As of March 31, 2024, **Goodwill remained unchanged at $1.149 billion**, with $755.3 million allocated to Market Making and $393.6 million to Execution Services[47](index=47&type=chunk)[48](index=48&type=chunk) - The company has a **$1.73 billion outstanding First Lien Term Loan Facility** maturing in 2029 and utilizes interest rate swaps to hedge interest rate risk on $1.525 billion of this principal[70](index=70&type=chunk)[78](index=78&type=chunk) - The company is defending against an **SEC action filed in September 2023** alleging violations of information barrier policies and procedures[131](index=131&type=chunk) - Subsequent to the quarter end, the Board expanded the share repurchase program by an additional **$500 million** and declared a quarterly dividend of **$0.24 per share**[186](index=186&type=chunk)[187](index=187&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2024 revenue grew 3.6% driven by interest income, while Adjusted Net Trading Income slightly decreased [Results of Operations](index=57&type=section&id=Results%20of%20Operations) Q1 2024 revenues and operating expenses both rose 3.6%, driven primarily by higher interest income and expense Revenue and Expense Comparison (in thousands) | Item | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total revenues** | **$642,839** | **$620,380** | **3.6%** | | Trading income, net | $408,095 | $412,511 | (1.1)% | | Interest and dividends income | $105,992 | $82,244 | 28.9% | | Commissions, net and technology services | $118,611 | $121,444 | (2.3)% | | **Total operating expenses** | **$503,019** | **$485,615** | **3.6%** | | Brokerage, exchange, clearance fees, net | $139,799 | $145,523 | (3.9)% | | Interest and dividends expense | $126,028 | $97,601 | 29.1% | - The increase in Interest and dividends income was primarily due to higher interest earned on cash collateral from securities borrowing and balances at banks, benefiting from **higher interest rates**[254](index=254&type=chunk) - The decrease in Commissions, net and technology services was driven by **slightly lower market volumes** and declining institutional engagement[255](index=255&type=chunk) [Non-GAAP Financial Measures](index=54&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted Net Trading Income decreased 1.7% to $366.9 million, while Normalized Adjusted EPS rose to $0.76 Non-GAAP Performance Summary (in thousands, except EPS) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Adjusted Net Trading Income | $366,871 | $373,075 | | EBITDA | $195,509 | $192,597 | | Adjusted EBITDA | $202,832 | $207,469 | | Normalized Adjusted Net Income | $124,278 | $127,552 | | Normalized Adjusted EPS | $0.76 | $0.74 | - Management believes these non-GAAP measures provide useful information by excluding certain costs and non-cash items, allowing for **better period-to-period comparison** of general operating performance[237](index=237&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through operations and credit facilities while continuing its share repurchase program - Primary sources of liquidity are cash flows from operations, available cash, and borrowings under **broker-dealer and prime brokerage credit facilities**[273](index=273&type=chunk)[294](index=294&type=chunk) Key Liquidity and Capital Figures (as of March 31, 2024) | Item | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $399.6 | | Long-term debt (principal) | $1,750.1 | | Borrowings under prime brokerage facilities | $170.7 | | Borrowings under broker-dealer facilities | $140.0 | - The company repurchased **45.6 million shares for $1.145 billion** from the program's inception through March 31, 2024, with **$74.6 million remaining capacity**[302](index=302&type=chunk) - The company is required to make payments under Tax Receivable Agreements, which are expected to range from **$0.1 million to $22.0 million per year** over the next 15 years[278](index=278&type=chunk) [Critical Accounting Policies and Estimates](index=64&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Highlights significant management judgments in valuing financial instruments, goodwill, and tax agreements - **Valuation of Financial Instruments:** Substantially all financial instruments are carried at fair value, with **Level 3 instruments requiring significant unobservable inputs** and management judgment[306](index=306&type=chunk)[307](index=307&type=chunk) - **Revenue Recognition:** Trading income is recorded on a trade-date basis, while commissions and technology services revenues are recognized when **performance obligations are satisfied**[308](index=308&type=chunk)[310](index=310&type=chunk)[314](index=314&type=chunk) - **Goodwill and Intangible Assets:** Goodwill of **$1.15B** is tested for impairment annually or when indicators arise, with the last assessment showing **fair value exceeded carrying value**[323](index=323&type=chunk)[326](index=326&type=chunk)[329](index=329&type=chunk) - **Tax Receivable Agreements:** The company records obligations based on **85% of expected cash tax savings** from favorable tax attributes, requiring complex judgments over a 15-year period[322](index=322&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details exposure to market, interest rate, and foreign currency risks and the strategies used to manage them - Market risk is managed through **proprietary risk management tools** that continuously monitor positions and can automatically freeze strategies that exceed preset limits[335](index=335&type=chunk) - Interest rate risk on long-term debt is managed using **floating-to-fixed interest rate swap agreements** to hedge against fluctuations[341](index=341&type=chunk) - For Q1 2024, **18.8% of total revenues were denominated in non-U.S. dollar currencies**, with a hypothetical 10% adverse change in the USD estimated to decrease revenues by $12.1 million[345](index=345&type=chunk) - The company uses derivative financial instruments, including futures, forwards, and options, for both **trading activities and to economically hedge** other positions[348](index=348&type=chunk) [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2024, the company's **disclosure controls and procedures were effective**[350](index=350&type=chunk) - There were **no changes in internal control over financial reporting** during Q1 2024 that materially affected or are likely to materially affect the controls[353](index=353&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) Discusses ongoing legal matters, including an SEC action regarding information barriers and related lawsuits - The company is defending an action by the **SEC filed in September 2023** regarding information barrier policies and procedures from a period in 2018-2019[131](index=131&type=chunk) - Related to the SEC investigation, the company faces a **consolidated shareholder class action lawsuit** alleging materially false and misleading statements[132](index=132&type=chunk) - Management states that they do not believe these matters will have a **material adverse impact** on the company's financial condition or operating results[138](index=138&type=chunk) [Item 1A. Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to risk factors previously disclosed in the 2023 Annual Report on Form 10-K - **No material changes** to the Risk Factors from the 2023 Form 10-K have been reported[357](index=357&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the repurchase of 2.9 million shares for $51.8 million during Q1 2024 under its authorized program Share Repurchases for Q1 2024 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Jan 2024 | 938,440 | $18.99 | 819,942 | | Feb 2024 | 1,543,047 | $16.78 | 720,636 | | Mar 2024 | 423,856 | $19.11 | 418,498 | | **Total** | **2,905,343** | **$17.83** | **1,959,076** | - As of March 31, 2024, the company had approximately **$74.6 million remaining capacity** for future purchases under its share repurchase program[359](index=359&type=chunk)

Virtu Financial, Inc. (NASDAQ:VIRT) Q1 2024 Earnings Conference Call April 24, 2024 7:30 AM ET Company Participants Andrew Smith - Head, Investor Relations Douglas Cifu - Chief Executive Officer Joseph Molluso - Co-President & Co-Chief Operating Officer Sean Galvin - Chief Financial Officer Conference Call Participants Patrick Moley - Piper Sandler Kenneth Worthington - JPMorgan Securities Chris Allen - Citi Craig Siegenthaler - Bank of America Dan Fannon - Jefferies Michael Cyprys - Morgan Stanley Operator ...