Financial Data and Key Metrics Changes - In 2022, the company generated an average of $5.8 million of adjusted trading net income per day, with $4.4 million per day in Q4 2022. Total adjusted EPS was $3 for the full year, including $0.37 in Q4 [7][41] - Adjusted net trading income for Q4 2022 totaled $274 million, a 43% decrease year-over-year. Market making adjusted net trading income was $185 million, while Execution Services adjusted net trading income was $89 million [41] - Adjusted EBITDA for Q4 2022 was $125 million, a 62% decrease year-over-year, with a full year adjusted EBITDA of $859 million, down 34% compared to the prior year [42] Business Line Data and Key Metrics Changes - The Market Making segment earned an average of $4.2 million per day in adjusted net trading income for 2022, with a decline in the customer market-making business in Q4 due to decreased opportunity and lower quality flow from retail customers [8][9] - The Execution Services segment reported adjusted net trading income of $1.4 million per day in Q4, flat from Q3, contributing 28% to total adjusted net trading income for the year [13][41] - The noncustomer market-making business was flat year-over-year from 2021 to 2022 but increased by 11% from Q3 to Q4 2022, with notable growth in energy and natural gas [12][10] Market Data and Key Metrics Changes - In the U.S., market-wide options volumes increased by 5.5% in 2022, while adjusted net trading income from the options business grew over 100% for the second consecutive year [19] - The company noted a significant increase in options trading activity, particularly in index options, which were up approximately 40% in 2022 [104] Company Strategy and Development Direction - The company remains focused on long-term growth initiatives, particularly in options and fixed income, while continuing to invest in technology and talent to enhance market-making capabilities [17][20] - The management expressed optimism about the future of the crypto market despite recent industry turmoil, viewing it as a long-term growth opportunity [21] Management's Comments on Operating Environment and Future Outlook - Management indicated that the early days of 2023 have shown modest improvements in the customer market-making business, with efforts to enhance capture rates beginning to yield results [16][70] - The company is cautiously optimistic about the revenue environment for 2023, expecting expenses to remain flat or increase slightly, depending on market conditions [37][84] Other Important Information - The company repurchased $45 million in stock during Q4 2022 and $460 million for the full year, representing a significant portion of its shares [38][45] - The company maintained a $0.96 annual dividend, consistent with its commitment to return capital to shareholders [37][45] Q&A Session Summary Question: Insights on retail flow and profitability - Management noted that the correlation between volatility and retail flow opportunity has broken down, impacting profitability. They continue to invest in technology to improve flow monetization [49][51] Question: Factors affecting retail flow opportunity - Management speculated that increased sophistication of retail investors and a mix of institutional flow could be contributing to diminished opportunities in retail flow [55][58] Question: Current state of the options and crypto business - Management indicated that the options business has significant growth potential, while the crypto market remains a focus despite recent challenges [90][99] Question: Debt and covenants - Management confirmed that the company is covenant-light with no maintenance covenants in its long-term debt, allowing flexibility in capital management [72][73] Question: Future of options and crypto initiatives - Management expressed enthusiasm for the options business, indicating potential for significant growth, while also highlighting the complexities and risks associated with expanding into single-name options [106][108]

Financial Data and Key Metrics Changes - For Q3 2022, the company reported adjusted EPS of $0.61 and adjusted net trading income of $5.2 million per day, bringing year-to-date results to $2.61 per share and an average of $6.3 million per day [10][28] - Adjusted EBITDA for Q3 was $181 million, down 14% from the prior year and the second quarter, with an adjusted EBITDA margin of 55%, reflecting a disciplined expense management approach [37][38] - Total compensation expense for Q3 was $103 million, slightly up from the second quarter, with cash compensation ratios at 25% and 31% of adjusted net trading income respectively [36][60] Business Line Data and Key Metrics Changes - Market Making adjusted net trading income was $238 million or $3.7 million per day, down 4% year-over-year and 9% from the second quarter [35] - Execution Services adjusted net trading income was $93 million or $1.5 million per day, a 12% decrease year-over-year and a 13% decrease from the second quarter [35][32] - The company’s growth initiatives in options accounted for a significant portion of adjusted net trading income, with a focus on expanding capabilities in both U.S. and international markets [13][16] Market Data and Key Metrics Changes - U.S. equity share volume in notional value trading was down 13% and 22% respectively compared to the previous quarter [31] - Average realized and applied volatility decreased by 25% and 10% respectively, indicating a challenging trading environment [31] Company Strategy and Development Direction - The company is focused on expanding its options trading capabilities and has made significant investments in technology and personnel to support this growth [15][16] - The company is also developing its crypto market-making initiatives, aiming to enhance connectivity and technology across various crypto venues [16] - The firm is committed to returning capital to shareholders through share repurchases and dividends, having repurchased 12.2% of its shares since the program's inception [30][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding financial targets for the year, despite recent performance fluctuations [28] - The company highlighted concerns regarding regulatory changes and their potential impact on market structure, emphasizing the importance of maintaining a competitive ecosystem for retail investors [25][26] - Management remains optimistic about the long-term growth potential in both options and crypto markets, despite current market conditions [16][73] Other Important Information - The company has repurchased a total of 31.1 million shares, amounting to over $870 million, with approximately $350 million remaining in repurchase capacity [12] - The firm’s long-term debt reflects a debt to trailing EBITDA ratio of 1.7x, indicating a sustainable capital structure [37] Q&A Session Summary Question: What is the view on normalized earnings and future retail flow? - Management indicated that recent quarters should not be seen as indicative of future performance, emphasizing a long-term growth trajectory [41][44] Question: Comments on regulation regarding tick sizes and order competition? - Management expressed support for certain regulatory changes but raised concerns about the potential negative impacts of proposed reforms on market quality and competition [45][46] Question: Insights on expenses and operational efficiency? - Management reassured that expense management remains disciplined, with no significant deviations expected in operational expenses moving forward [59][63] Question: Status of options and crypto initiatives? - Management noted that while growth in these areas has been steady, they are still in early stages and subject to market conditions [70][73] Question: Discussion on trading revenues and cost dynamics? - Management clarified that the divergence in trading revenues and costs was primarily due to the mix of business rather than external factors like margin requirements [97][98]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Virtu Financial, Inc.'s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2022, covering financial condition, comprehensive income, equity, and cash flows [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) As of September 30, 2022, total assets increased to **$10.97 billion** while total liabilities grew to **$9.30 billion**, leading to a decrease in total equity to **$1.67 billion** Condensed Consolidated Statements of Financial Condition (Unaudited) | (in thousands) | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total assets** | **$10,972,260** | **$10,319,971** | | Cash and cash equivalents | $836,298 | $1,071,463 | | Trading assets, at fair value | $4,803,348 | $4,256,955 | | Goodwill | $1,148,926 | $1,148,926 | | **Total liabilities** | **$9,299,352** | **$8,456,353** | | Trading liabilities, at fair value | $4,199,838 | $3,510,779 | | Long-term borrowings | $1,792,063 | $1,605,132 | | **Total equity** | **$1,672,908** | **$1,863,618** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q3 2022 saw a slight revenue increase to **$561.0 million** but net income decreased to **$79.9 million** due to higher expenses, while nine-month revenue and net income also declined year-over-year Q3 Financial Performance (Three Months Ended September 30) | (in thousands, except per share data) | 2022 | 2021 | | :--- | :--- | :--- | | Total revenue | $561,044 | $544,344 | | Total operating expenses | $459,438 | $399,245 | | Net income | $79,874 | $123,138 | | Diluted EPS | $0.37 | $0.59 | Year-to-Date Financial Performance (Nine Months Ended September 30) | (in thousands, except per share data) | 2022 | 2021 | | :--- | :--- | :--- | | Total revenue | $1,867,044 | $2,105,881 | | Total operating expenses | $1,349,941 | $1,335,994 | | Net income | $428,698 | $641,276 | | Diluted EPS | $2.16 | $3.01 | [Condensed Consolidated Statements of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased to **$1.67 billion** by September 30, 2022, primarily due to **$415.3 million** in treasury stock purchases and **$78.4 million** in dividends, partially offset by net income - For the nine months ended September 30, 2022, the company purchased treasury stock totaling **$415.3 million** ($287.2 million in Q1, $47.5 million in Q2, $80.6 million in Q3)[18](index=18&type=chunk) - Dividends paid to common stockholders and distributions to noncontrolling interests for the nine months ended September 30, 2022, amounted to **$78.4 million** ($27.1 million in Q1, $26.1 million in Q2, $25.3 million in Q3)[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$290.5 million** for the nine months ended September 30, 2022, while financing activities used **$466.5 million**, resulting in a **$230.5 million** net decrease in cash Cash Flow Summary (Nine Months Ended September 30) | (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $290,462 | $374,522 | | Net cash used in investing activities | ($10,980) | ($65,440) | | Net cash used in financing activities | ($466,498) | ($550,322) | | **Net decrease in cash and cash equivalents** | **($230,506)** | **($252,692)** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's operations, accounting policies, and financial items, including segment structure, goodwill, debt refinancing, revenue disaggregation, and the share repurchase program - The company operates through two main segments: Market Making and Execution Services[36](index=36&type=chunk) - On January 13, 2022, the company entered into a new Credit Agreement for a **$1.8 billion** senior secured first lien term loan and a **$250 million** revolving facility, using the proceeds to repay a previous credit agreement and fund share repurchases[78](index=78&type=chunk) - The company's share repurchase program was expanded to **$1.22 billion**, with authorization extending through November 3, 2023; as of September 30, 2022, approximately **$365.6 million** remained available for future repurchases[161](index=161&type=chunk) Pre-tax Earnings by Segment (Nine Months Ended Sep 30) | (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Market Making | $448,943 | $713,723 | | Execution Services | $32,005 | $51,941 | | Corporate | $36,155 | $4,223 | | **Consolidated Total** | **$517,103** | **$769,887** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and nine-month 2022 financial results, noting a decline in Adjusted Net Trading Income and Normalized Adjusted EPS due to lower market volumes, alongside details on liquidity, capital, and share repurchases Q3 2022 vs Q3 2021 Performance Summary | Metric | Q3 2022 (in millions) | Q3 2021 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $561.0 | $544.3 | 3.1% | | Net Income | $79.9 | $123.1 | (35.1)% | | Adjusted Net Trading Income | $331.1 | $354.4 | (6.6)% | | Normalized Adjusted EPS | $0.61 | $0.70 | (12.9)% | 9M 2022 vs 9M 2021 Performance Summary | Metric | 9M 2022 (in millions) | 9M 2021 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,867.0 | $2,105.9 | (11.3)% | | Net Income | $428.7 | $641.3 | (33.2)% | | Adjusted Net Trading Income | $1,193.6 | $1,424.3 | (16.2)% | | Normalized Adjusted EPS | $2.61 | $3.38 | (22.8)% | - The company's share repurchase program authorization was increased to **$1.22 billion**, extending through November 2023; from inception through September 30, 2022, the company repurchased approximately **30.3 million shares** for **$854.4 million**, with **$365.6 million** remaining capacity[332](index=332&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks, including price, interest rate, and currency fluctuations, through market-neutral strategies, proprietary tools, and interest rate swaps, with **19.4%** of nine-month revenues exposed to foreign currency risk - Market making strategies are designed to minimize risk by capturing bid-ask spreads and are not dependent on market direction; proprietary risk management tools monitor activity and can automatically freeze strategies that exceed preset limits[364](index=364&type=chunk)[366](index=366&type=chunk) - For the nine months ended September 30, 2022, approximately **19.4%** of total revenues were denominated in non-U.S. dollar currencies, exposing the company to foreign exchange rate fluctuations[376](index=376&type=chunk) - The company uses floating-to-fixed interest rate swap agreements, designated as cash flow hedges, to manage interest rate risk associated with its long-term debt obligations[372](index=372&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective[381](index=381&type=chunk) - No material changes to internal control over financial reporting occurred during the third quarter of 2022[384](index=384&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) The company faces various legal claims, lawsuits, and regulatory examinations, but management believes these will not materially impact financial condition or operating results - The company is a defendant in several legal matters, including *In re United States Oil Fund, LP Securities Litigation* and *Iron Workers Local No. 55 Pension Fund v. Virtu Financial, Inc.*, and is subject to ongoing regulatory reviews by the SEC and FINRA[142](index=142&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) [Risk Factors](index=82&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K were reported - No material changes to the Risk Factors described in the 2021 Form 10-K were reported[388](index=388&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2022, the company repurchased **3.47 million** shares for **$81.4 million**, with **$365.6 million** remaining available under the share repurchase program Share Repurchases for Q3 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2022 | 700,211 | $22.32 | | August 2022 | 1,950,038 | $24.29 | | September 2022 | 824,570 | $22.35 | | **Total Q3 2022** | **3,474,819** | **$23.43** | - As of September 30, 2022, the company had approximately **$365.6 million** remaining capacity for future share repurchases under its program, which is authorized through November 3, 2023[391](index=391&type=chunk) [Other Items (Items 3, 4, 5, 6)](index=83&type=section&id=Other%20Items%20(Items%203%2C%204%2C%205%2C%206)) This section confirms no defaults on senior securities, no mine safety disclosures, and no other material information to report, along with a list of filed exhibits - The company reported no defaults upon senior securities, no mine safety disclosures, and no other information under Item 5[392](index=392&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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, 2022 Commission file number: 001-37352 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 princip ...

Virtu Financial, Inc. (NASDAQ:VIRT) Q2 2022 Earnings Conference Call July 28, 2022 7:30 AM ET Company Participants Andrew Smith - Head, Investor Relations Douglas Cifu - Chief Executive Officer Cindy Lee - Deputy Chief Financial Officer Conference Call Participants Rich Repetto - Piper Sandler Dan Fannon - Jefferies Alex Kramm - UBS Michael Cyprys - Morgan Stanley Paul Gulberg - Bloomberg Intelligence Operator Hello. And welcome to the Virtu Financial 2022 Second Quarter Results Call. My name is Laura, and ...

Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2022 Virtu Financial. All rights reserved. Presentation Title in Title Case Presentation subtitle in sentence case Second Quarter 2022 Earnings Supplement Second Quarter & YTD Highlights Year-to-Date 2Q 2022 Adj. NTI1 Adj. NTI1 $862M $357M $7.0 $5.8 issuances)4 $2.00 $0.73 $553M $209M Adj. NTI/day1,2 Adj. NTI/day1,2 Normalized Adj. EPS1 Normal ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 March 31, 2022 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 jurisd ...

sentence case Presenter Name Event name xx Month 201x © 201X Virtu Financial. All rights reserved. Not to be reproduced or retransmitted without permission. Compliance #XXXX-XXXX © 2022 Virtu Financial. All rights reserved. Presentation Title in First Quarter 2022 Title Case Earnings Supplement Presentation subtitle in First Quarter Highlights Adj. NTI1 Normalized Adj. EPS1 • Repurchased 8.9M shares in 1Q 2022 at an $505M $1.27 average price of $32.24; cumulative repurchases of 25.2M shares at an average pr ...

Virtu Financial, Inc. (NASDAQ:VIRT) Q1 2022 Results Conference Call April 28, 2022 7:30 AM ET Company Participants Andrew Smith - Head, IR Douglas Cifu - CEO Joseph Molluso - Co-President and Co-COO Sean Galvin - CFO Conference Call Participants Richard Repetto - Piper Sandler Alex Blostein - Goldman Sachs Ken Worthington - JP Morgan Alex Kramm - UBS Investment Bank Dan Fannon - Jefferies Sean Horgan - Rosenblatt Chris Allen - Compass Point Michael Cyprys - Morgan Stanley Operator Good day, all, and thank y ...

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, 2021 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 ...