Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2024 Virtu Financial. All rights reserved. VIRTU FINANCIAL Presentation Title in Title Case Presentation subtitle in sentence case First Quarter 2024 Earnings Supplement Performance Highlights Normalized Adj. EPS1 Adj. NTI1 Adj. NTI/day1,2 $367M $6.0M $0.76 Debt to LTM Adj. EBITDA1 Adj. EBITDA Margin1,3 Adj. EBITDA1 $203M 55% 3.1x $4.5M $4.7M ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37352 Virtu Financial, Inc. (Exact name of registrant as specified in its charter) Delaware 32-0420206 (State or other jurisdiction ...

Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2023 Virtu Financial. All rights reserved. Presentation Title in Title Case Presentation subtitle in sentence case Fourth Quarter 2023 Earnings Supplement Performance Highlights | --- | --- | --- | --- | --- | --- | |-------------|-------|-------------------------------|------------|-------|----------------------------| | | | | | | | | | | | | ...

Financial Data and Key Metrics Changes - For the full year 2023, the company generated $4.8 million of adjusted net trading income per day, while for Q4 2023, it was $4.14 million per day [8] - The normalized adjusted EPS for Q4 2023 was $0.27, and for the full year, it was $1.84 [8] - The adjusted EBITDA for Q4 2023 was $99 million, with an adjusted EBITDA margin of 38% [32] Business Line Data and Key Metrics Changes - The market making segment earned an average of $2.7 million per day in adjusted net trading income in Q4 2023, while the execution services business delivered $1.5 million per day, reflecting a 4% increase over the prior quarter [9] - The organic growth initiatives generated $423,000 per day, representing 10% of adjusted net trading income in the period [14] - Execution services adjusted net trading income was $93 million for Q4 2023, averaging $1.5 million per day [31] Market Data and Key Metrics Changes - The company noted a significant reduction in opportunity for its customer market making business due to reduced addressable volumes and spreads, particularly in the last two months of the year [9] - The overall market conditions and market making opportunities have shown improvement in January 2024, especially around crypto products [11] Company Strategy and Development Direction - The company is focused on enhancing its core businesses and expanding its addressable market by adding more asset classes and offerings [17] - The strategic focus on growth initiatives, particularly in options and crypto market making, is expected to yield benefits in any macro environment [17] - The company is optimistic about the opportunities in the crypto market, especially following the approval of Spot Bitcoin ETFs [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver results in any environment due to disciplined expense management and operational efficiency [11] - The management highlighted the importance of a coherent regulatory framework for the cryptocurrency market to facilitate growth and institutional investment [42][43] - The company remains committed to returning capital to shareholders through dividends and share repurchase programs [29] Other Important Information - The company maintained its public $0.96 annual dividend and repurchased 2.4 million shares for approximately $44 million in Q4 2023 [29] - The trading capital remained within a range of $1.7 billion to $2 billion, indicating strong capitalization [27] Q&A Session Summary Question: Cryptocurrency opportunity and revenue growth - Management noted that the cryptocurrency market has rebounded significantly, and the company is generating meaningful daily profits from this asset class [37] - The integration of being a market maker in both crypto and ETFs has created additional profitability opportunities [39] Question: Tracking overall opportunity - Management suggested that analysts should focus on the 605 reports to better understand the company's performance metrics [46][48] Question: Organic growth initiatives - Management acknowledged a sequential decline in organic growth initiatives but highlighted strong performance in options and ETF block desks [56][58] Question: Expenses and leverage - Management discussed the cash compensation ratio and the impact of expenses on profitability, indicating a focus on maintaining a disciplined cost structure [63][68] Question: Capital structure and debt management - Management confirmed that recent swaps would be accretive to the P&L and discussed plans for managing debt and cash flow [72][74] Question: Fixed income market making initiatives - Management described ongoing efforts to build technology and infrastructure for fixed income market making, with expectations for future growth [78][80]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Virtu Financial, Inc.'s unaudited condensed consolidated financial statements, including financial condition, income, equity, and cash flows, with detailed accounting notes [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $17.62 billion from $10.58 billion, and total liabilities rose to $16.11 billion from $8.93 billion, while total equity decreased to $1.51 billion from $1.65 billion as of September 30, 2023 Condensed Consolidated Statements of Financial Condition (Unaudited) | (in thousands) | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total assets** | **$17,618,428** | **$10,583,241** | | **Total liabilities** | **$16,107,778** | **$8,931,814** | | **Total equity** | **$1,510,650** | **$1,651,427** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q3 2023 net income available to common stockholders increased to $61.9 million, while nine-month net income decreased to $136.5 million, primarily due to lower net trading income year-to-date Key Income Statement Data (Unaudited) | (in thousands, except per share data) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $630,164 | $561,044 | $1,757,396 | $1,867,044 | | **Trading income, net** | $316,085 | $397,383 | $1,034,764 | $1,315,618 | | **Net income** | $117,593 | $79,874 | $257,220 | $428,698 | | **Net income available for common stockholders** | $61,915 | $40,007 | $136,498 | $237,434 | | **Diluted EPS** | $0.63 | $0.37 | $1.36 | $2.16 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to $143.7 million for the nine months ended September 30, 2023, with significant cash used in investing and financing activities, resulting in a net decrease in cash of $311.9 million Cash Flow Summary (Unaudited) | (in thousands) | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $143,691 | $290,462 | | **Net cash used in investing activities** | ($70,463) | ($10,980) | | **Net cash used in financing activities** | ($385,285) | ($466,498) | | **Net decrease in cash and cash equivalents** | ($311,887) | ($230,506) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, business segments, goodwill, borrowings including a $1.8 billion term loan, revenue disaggregation, legal proceedings including a new SEC action, and regulatory capital requirements - The company operates through two main segments: **Market Making** and **Execution Services**[36](index=36&type=chunk) - Total goodwill was **$1.15 billion** as of September 30, 2023, with no impairment recognized during the period[58](index=58&type=chunk) - In September 2023, the SEC filed an action against the Company alleging violations related to information barriers policies from January 2018 to April 2019, which the Company intends to defend vigorously[146](index=146&type=chunk) - The company's share repurchase program has approximately **$154.4 million** remaining capacity as of September 30, 2023[170](index=170&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 total revenue growth of 12.3% to $630.2 million, driven by settlement fund recoveries despite a 20.5% decline in net trading income, and details segment performance, non-GAAP measures, liquidity, and accounting policies - Q3 2023 total revenues increased **12.3% YoY** to **$630.2 million**, primarily due to gains from settlement fund recoveries, offsetting a **20.5% decline** in net trading income[268](index=268&type=chunk)[270](index=270&type=chunk) - For the nine months ended Sep 30, 2023, total revenues decreased **5.9% YoY**, driven by a **21.3% decrease** in net trading income[291](index=291&type=chunk)[294](index=294&type=chunk) Adjusted Net Trading Income (Non-GAAP) | (in thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | **Adjusted Net Trading Income** | **$298,007** | **$331,142** | **(10.0)%** | | **Average Daily Adjusted Net Trading Income** | $4,731 | $5,174 | (9.6)% | - As of September 30, 2023, the company had **$688.8 million** in cash and cash equivalents, with primary liquidity from operations and available credit facilities[314](index=314&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market, interest rate, and foreign currency risks through proprietary tools, interest rate swaps, and hedging, noting that a 10% adverse change in USD exchange rates would decrease YTD revenues by $28.2 million - Market risk is managed through proprietary risk management tools that continuously monitor positions and can automatically freeze strategies exceeding preset limits[373](index=373&type=chunk)[375](index=375&type=chunk) - Interest rate risk is managed via floating-to-fixed interest rate swap agreements to hedge long-term debt obligations[381](index=381&type=chunk) - Approximately **16.0%** of total revenues for the nine months ended September 30, 2023, were non-U.S. dollar denominated; a hypothetical **10% adverse change** in USD exchange rate would decrease revenues by **$28.2 million** for this period[385](index=385&type=chunk) [Item 4. Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[390](index=390&type=chunk) - No material changes to internal control over financial reporting occurred during the third quarter of 2023[393](index=393&type=chunk) [PART II - OTHER INFORMATION](index=81&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=81&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal proceedings from Note 14, highlighting a September 2023 SEC action regarding information access barriers, which the company intends to vigorously defend - The company is subject to various legal and regulatory proceedings, including a recently filed SEC action in September 2023 regarding information barriers policies, as detailed in Note 14[396](index=396&type=chunk)[146](index=146&type=chunk) [Item 1A. Risk Factors](index=81&type=page&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2022 Annual Report on Form 10-K were reported - No material changes to the Risk Factors from the 2022 Form 10-K were reported[397](index=397&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased 2.94 million shares for $53.5 million, with $154.4 million remaining for future repurchases under the program Share Repurchases for Q3 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2023 | 85,167 | ~$18.66 | | August 2023 | 1,097,488 | ~$18.82 | | September 2023 | 1,759,862 | $17.77 | | **Total Q3 2023** | **2,942,517** | **$18.19** | - As of September 30, 2023, approximately **$154.4 million** remained available for future purchases under the share repurchase program[400](index=400&type=chunk)[399](index=399&type=chunk) [Other Items (Items 3, 4, 5, 6)](index=82&type=section&id=Other%20Items%20(Items%203,%204,%205,%206)) This section confirms no defaults on senior securities, no mine safety disclosures, no other material information, and lists filed exhibits - Item 3: No defaults upon senior securities[401](index=401&type=chunk) - Item 4: No mine safety disclosures[402](index=402&type=chunk) - Item 5: No other information to report[403](index=403&type=chunk)

Virtu Financial, Inc. (NASDAQ:VIRT) Q3 2023 Earnings Conference Call November 2, 2023 8:00 AM ET Company Participants Andrew Smith - Investor Relations Douglas Cifu - Chief Executive Officer Joseph Molluso - Co-President and Co-Chief Operating Officer Sean Galvin - Chief Financial Officer Conference Call Participants Ken Worthington - JPMorgan Chris Allen - Citi Dan Fannon - Jefferies Alex Blostein - Goldman Sachs Michael Cyprys - Morgan Stanley Operator Hello and welcome to the Virtu Financial 2023 Third Q ...

Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2023 Virtu Financial. All rights reserved. VIRTU FINANCIAL Presentation Title in Title Case Presentation subtitle in sentence case Third Quarter 2023 Earnings Supplement Performance Highlights | --- | --- | --- | --- | --- | |------------------------|-------|-------------------------------|-------|--------------------------------| | Adj. NTI 1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Virtu Financial, Inc. (Exact name of registrant as specified in its charter) Delaware 32-0420206 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1633 Broadway New York, New York (Address of principal executive offices) (Zip Code) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 o ...

Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2023 Virtu Financial. All rights reserved. VIRTU FINANCIAL Presentation Title in Title Case Presentation subtitle in sentence case Second Quarter 2023 Earnings Supplement Performance Highlights | --- | --- | --- | --- | --- | |------------------------|-------|-------------------------------|-------|------------------------------| | | | | | | | ...

Financial Data and Key Metrics Changes - In Q2 2023, the company generated $4.5 million of adjusted trading net income per day, with a normalized adjusted EPS of $0.37 [9][30] - Adjusted EBITDA was $122 million for Q2 2023, resulting in an adjusted EBITDA margin of 44% [31][20] - Cash operating expenses for the first half of the year were $322 million, approximately 3% higher than the previous year [23] Business Line Data and Key Metrics Changes - The Market Making segment earned an average of $3.1 million per day of adjusted net trading income, while Execution Services delivered $1.4 million per day [9][30] - Customer Market Making experienced decreased opportunities due to a decline in overall bid-offer spreads and retail participation levels [10] - The non-customer Market Making business performed well despite a muted volumes and volatility environment [11] Market Data and Key Metrics Changes - Pan-European volumes were down 16% in Q2, with institutionally sized large volumes down over 20% [14] - Market-wide customer index options volumes in the US were down 11% in Q2, impacting results [21] Company Strategy and Development Direction - The company is focusing on organic growth initiatives, including expansion into options Market Making and enhancing capabilities in fixed income [12][21] - There is a commitment to investing in talent and technology to improve efficiency and client engagement [17][20] - The company aims to maintain a disciplined expense management approach while pursuing growth opportunities [31] Management's Comments on Operating Environment and Future Outlook - The management noted a slow start in April but observed improving performance in the latter part of Q2 and into July [16][36] - The company remains optimistic about opportunities in US equities and fixed income markets, despite challenges in Europe [38][40] - Management emphasized the importance of adapting to market conditions and continuing to seek new opportunities [17] Other Important Information - The company maintained a $0.96 annual dividend and repurchased 2.3 million shares for approximately $42 million in Q2 [27][28] - Since the inception of the share repurchase program, the company has repurchased a total of 38.5 million shares for over $1 billion [29] Q&A Session Summary Question: Can you expand on the improvement seen in July and the asset classes involved? - Management noted that April was particularly slow due to macro issues, but performance improved through Q2, especially in US equities [36][39] Question: What is the company's presence in the corporate fixed income market? - Management confirmed ongoing efforts in market-making for credit and rates, highlighting improved win rates and credibility [40][42] Question: Update on single stock option Market Making rollout? - Management stated that while single stock options remain a goal, the focus has shifted to index options due to larger market opportunities [46][48] Question: Outlook on rates business and market structure improvements? - Management expressed optimism about centralized clearing and real-time reporting enhancing competition in the rates market [51][52] Question: Commentary on index options volumes and customer types? - Management indicated that the daily exploration product is driving volumes, with a significant portion of flow coming from smaller trading firms and options aggregators [62][66] Question: Internalization opportunities comparison between Q1 and Q2? - Management reported that internalization rates were in line with expectations, emphasizing the competitive advantage in this area [71][75] Question: Balance sheet strategy and capital return framework? - Management confirmed no changes in capital needs and expressed comfort with current debt levels, allowing for share buybacks and dividend maintenance [78][80]