Core Viewpoint - Virtu Financial, Inc. is transferring its Class A Common Stock listing from Nasdaq to the New York Stock Exchange, effective June 17, 2025, which reflects the company's commitment to transparency and long-term value creation for shareholders [1][2][3]. Company Overview - Virtu Financial is a leading provider of global, multi-asset financial services, utilizing advanced technology to deliver liquidity and innovative trading solutions across various asset classes [4]. - The company offers a comprehensive product suite that includes execution, liquidity sourcing, analytics, and broker-neutral platforms, enabling clients to trade on hundreds of venues in over 50 countries [4]. Strategic Move - The transition to the NYSE is seen as a significant step in Virtu's journey, allowing the company to deepen relationships with investors and leverage the NYSE's platform for growth [3]. - The NYSE President highlighted Virtu's critical role in the price formation process within the U.S. capital markets, emphasizing the importance of the company as a liquidity provider [3].

Virtu Financial, Inc. (VIRT) , a prominent name in the financial services space, is under scrutiny as analysts trim their earnings projections for 2025 and 2026. While the company extended its streak of earnings beat in the first quarter, sentiment has weakened due to downward revisions in forward estimates.The Zacks Consensus Estimate for Virtu Financial’s 2025 and 2026 adjusted earnings now stands at $3.97 and $3.83 per share, respectively, reflecting week-over-week declines of 0.5% and 1%. Though 2025 es ...

Core Insights - Virtu Financial, Inc. (VIRT) reported a strong performance in Q1 2025, with shares increasing by 1.8% following the earnings announcement on April 23, driven by higher commissions and technology services revenues [1] - The company achieved adjusted earnings per share (EPS) of $1.30, exceeding the Zacks Consensus Estimate by 9.2% and marking a 71.1% increase year over year [2] Revenue Performance - Total revenues from commissions and technology services rose 27.6% year over year to $151.3 million, surpassing both the Zacks Consensus Estimate and internal estimates [3] - Adjusted net trading income reached $497.1 million, a 35.5% increase year over year, and also exceeded the consensus estimate by 4.7% [2] Expense and Profitability Metrics - Adjusted EBITDA was reported at $319.9 million, reflecting a 57.7% year-over-year increase and exceeding internal estimates [4] - The adjusted EBITDA margin improved by 910 basis points year over year to 64.4% [4] - Total operating expenses increased by 22.1% year over year to $614.1 million, driven by higher brokerage fees, employee compensation, and interest expenses [4] Segment Performance - In the Market Making segment, adjusted net trading income was $382 million, a 39.6% year-over-year increase, with revenues climbing 32.7% to $691.2 million [5] - The Execution Services segment reported adjusted net trading income of $115.1 million, up 23.5% year over year, with total revenues rising 19.7% to $141 million [6] Financial Position - As of March 31, 2025, Virtu Financial had cash and cash equivalents of $723.7 million, a decrease of 17.1% from the end of 2024 [7] - Total assets increased by 14.2% to $17.5 billion, while total equity rose by 5% to $1.6 billion [7] Shareholder Returns - The company repurchased 1.3 million shares for $48.1 million in Q1 2025, with a remaining buyback capacity of $373.8 million [8] - A cash dividend of 24 cents per share was announced, scheduled for payment on June 16, 2025 [8]

Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Virtu Financial (VIRT) and Coinbase Global, Inc. (COIN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favo ...

Financial Performance - Total revenue for the three months ended March 31, 2025, was $837.9 million, a 30.4% increase from $642.8 million in the same period of 2024 [234]. - Trading income, net accounted for 70% of total revenues in Q1 2025, up from 63% in Q1 2024, reflecting increased trading activity [239]. - Net income for the three months ended March 31, 2025, was $189.6 million, compared to $111.3 million in Q1 2024, representing a 70.3% year-over-year increase [236]. - Earnings per share for Q1 2025 were $1.09 (basic) and $1.08 (diluted), compared to $0.59 for both in Q1 2024 [237]. - Adjusted Net Trading Income for Q1 2025 was $497,140,000, up from $366,871,000 in Q1 2024, representing a 35.4% increase [264]. - EBITDA for Q1 2025 was $283,023,000, compared to $195,509,000 in Q1 2024, reflecting a 44.7% growth [264]. - Adjusted EBITDA for Q1 2025 reached $319,939,000, an increase from $202,832,000 in Q1 2024, marking a 57.7% rise [264]. - Normalized Adjusted Net Income for Q1 2025 was $208,329,000, up from $124,278,000 in Q1 2024, a growth of 67.7% [266]. - Normalized Adjusted EPS for Q1 2025 was $1.30, compared to $0.76 in Q1 2024, reflecting a 71.1% increase [266]. - GAAP Net Income Margin for Q1 2025 was 22.6%, up from 17.3% in Q1 2024 [264]. - Non-GAAP Net Income Margin for Q1 2025 was 38.1%, compared to 30.3% in Q1 2024 [264]. - EBITDA Margin for Q1 2025 was 56.9%, an increase from 53.3% in Q1 2024 [264]. - Adjusted EBITDA Margin for Q1 2025 was 64.4%, up from 55.3% in Q1 2024 [264]. Operating Expenses - Total operating expenses for Q1 2025 were $614.1 million, an increase of 22.1% from $503.0 million in Q1 2024 [236]. - Employee compensation and payroll taxes increased by $18.6 million, or 18.5%, to $119.4 million for the three months ended March 31, 2025, compared to $100.8 million for the same period in 2024 [280]. - Operating expenses increased by $111.1 million, or 22.1%, to $614.1 million for the three months ended March 31, 2025, compared to $503.0 million for the same period in 2024 [277]. Liquidity and Debt - The company had cash and cash equivalents of $68.5 million as of March 31, 2025 [233]. - As of March 31, 2025, the company had $723.7 million in cash and cash equivalents, with borrowings under prime brokerage credit facilities of approximately $158.1 million and long-term debt of approximately $1,768.3 million [292]. - The company expects future liquidity needs to increase due to margin requirements from increased trading activities in existing and new markets [294]. - The company entered into a two-year $1,525.0 million floating-to-fixed interest rate swap agreement in December 2023, fixing interest payment obligations at a rate of 7.5% through November 2025 [309]. - The company completed the offering of $500.0 million aggregate principal amount of 7.50% senior secured first lien notes due 2031 on June 21, 2024 [319]. - The company reported a senior secured first lien term loan of $1,800.0 million, fully drawn on January 13, 2022, to repay previous debts and fund share repurchases [223]. - The company issued $1,245.0 million in Senior Secured First Lien Term B-1 Loans due 2031, which were used to repay all term loans previously outstanding under the Original Credit Agreement [224]. - The Term B-2 Loans, established on February 19, 2025, amount to $1,245.0 million and were used to repay the Term B-1 Loans [226]. - The company issued $500.0 million of 7.50% senior secured first lien notes due 2031, maturing on June 15, 2031 [230]. - As of March 31, 2025, $1,245.0 million was outstanding under the current term loans, with compliance to all applicable covenants [318]. Market Segments and Operations - The company operates in two segments: Market Making and Execution Services, focusing on providing liquidity and trading solutions globally [218]. - The Market Making segment provides competitive bids and offers in over 25,000 securities across 250 venues in 40 countries [219]. - The Execution Services segment earns commissions by acting as an agent for clients in various trading activities, including algorithmic trading and order routing [221]. - The company emphasizes technology and operational efficiency, utilizing a proprietary multi-asset technology platform to enhance market making and execution services [215]. - The company believes that increased market volatility positively impacts its financial performance by widening bid/ask spreads [220]. - The company aims to maintain a low-cost structure while providing a robust product suite to clients across multiple asset classes [214]. Revenue Sources - Commissions, net and technology services revenues increased by $32.7 million, or 27.6%, to $151.3 million for the three months ended March 31, 2025, compared to $118.6 million for the same period in 2024 [274]. - Trading income, net increased by $181.9 million, or 44.6%, to $590.0 million for the three months ended March 31, 2025, compared to $408.1 million for the same period in 2024 [272]. - Interest and dividends income for Q1 2025 was $109.1 million, slightly up from $106.0 million in Q1 2024 [236]. - Interest and dividends income increased by $3.1 million, or 2.9%, to $109.1 million for the three months ended March 31, 2025, compared to $106.0 million for the same period in 2024 [273]. Risk Management - The company is subject to various market risks, including changes in market prices, interest rates, and currency rates [364]. - Proprietary risk management tools are utilized to manage market risk continuously, with alerts for trading strategies generating revenues outside preset limits [367]. - The company utilizes derivative financial instruments for proprietary trading and risk management, with gains and losses included in trading income [372]. - The company employs daily hedging practices to mitigate the impact of foreign currency fluctuations on revenues [376]. - The company has entered into floating-to-fixed interest rate swap agreements to manage interest rate risk associated with long-term debt obligations [373]. - The company monitors counterparty credit exposures to limit potential losses from broker and clearing organization insolvencies [375]. Share Repurchase Program - The company repurchased approximately 51.6 million shares for approximately $1,330.0 million since the inception of the share repurchase program [333]. - The company has approximately $390.0 million remaining capacity for future purchases of shares under the share repurchase program as of March 31, 2025 [334]. Tax and Other Financial Information - Provision for income taxes was $34.1 million with an effective tax rate of 15.2% for the three months ended March 31, 2025, compared to $28.5 million and 20.4% for the same period in 2024 [291]. - Future payments under tax receivable agreements are expected to range from approximately $0.1 million to $22.1 million per year over the next 15 years, with total payments of $134.8 million made from February 2017 through March 2025 [298]. - The company recognized a gain of $5.7 million in Other Income due to the partial dedesignation of a cash flow hedge [312].

Company Overview - Virtu Financial, Inc. is a global financial technology company specializing in market making and trade execution across various asset classes, including equities, fixed income, currencies, commodities, and digital assets [1] Research Focus - The analysis primarily targets small- to mid-cap companies, which are often overlooked by many investors, while also occasionally examining large-cap companies to provide a comprehensive view of the broader equity markets [2]

Financial Performance Highlights - Adjusted Net Trading Income (NTI) reached $497 million[5] - Adjusted NTI per day averaged $83 million[5] - Adjusted EBITDA stood at $320 million[5] - Adjusted EBITDA Margin was 64%[5] - Normalized Adjusted EPS was $130[5] - Debt to Last Twelve Months (LTM) Adjusted EBITDA was 17x[5] Share Repurchase and Capital Management - The company repurchased 13 million shares for $48 million in 1Q 2025[6] - Cumulative repurchases totaled 52 million shares for $135 billion, representing 189% of shares outstanding, net of issuances[6] - Quarterly Dividend of $024 per share[28] Market Metrics and Volatility - Market Making Adjusted NTI increased by 15% annually and 42% quarterly[7] - Execution Services Adjusted NTI increased by 10% annually and 26% quarterly[7] - Recent volatility is akin to levels seen in late 2021[14] Growth and Opportunities - LTM 1Q'25 EPS was $409 and LTM 1Q'25 Adjusted NTI/day was $69 million[6] - The company saw strong performance in customer and non-customer market making businesses[6] - The best quarter for VES since 1Q 2022[6] - Non-customer market making business has significant opportunities for diversified growth[12] - Post-2019 growth is secular with a Compound Annual Growth Rate (CAGR) of approximately 17%[16]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a normalized adjusted EPS of $1.30 and total adjusted net trading income per day of $8.3 million, with quarterly EBITDA at $320 million and an EBITDA margin of 64% [9][38]. - The adjusted net trading income totaled $497 million, with market making adjusted net trading income at $382 million and execution services adjusted net income at $115 million [38]. Business Line Data and Key Metrics Changes - The market making segment had its best quarter since Q1 2021, with strong performance in non-customer global equities, digital assets, and ETN block market making franchises [10][11]. - The execution services segment (VES) has shown consistent growth, achieving its seventh consecutive quarter of increasing net trading income [13][14]. Market Data and Key Metrics Changes - Retail participation in the market has been robust, with levels comparable to the pandemic days of 2020, indicating a long-term bullish outlook for retail engagement [24][26]. - The company noted a significant increase in retail account openings, suggesting sustained retail participation [84]. Company Strategy and Development Direction - The company is focused on diversifying its market making operations and expanding its execution services, with a goal of achieving a $2 million per day run rate for VES in the medium term [19][66]. - Strategic initiatives include enhancing technology platforms, expanding product offerings, and improving operational efficiencies across various business segments [17][27]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of retail engagement and the overall market environment, citing strong operational performance during recent market volatility [21][84]. - The company anticipates continued growth driven by market volumes and volatility, as well as the expansion of its options, digital asset, and ETF block businesses [26][27]. Other Important Information - The company has repurchased over 52 million shares at an average price of $25.85 per share, demonstrating a commitment to returning capital to shareholders [41]. - The company has streamlined operations and improved technology platforms, resulting in higher EBITDA margins for its businesses [18]. Q&A Session Summary Question: Can you help us think about the balance between the wholesale business and beyond exchange business? - Management indicated that the increase in market making NTI was evenly allocated between customer and non-customer businesses, with strong performance across various segments [46][48]. Question: What gives you confidence in the $2 million per day target for the VES business? - Confidence stems from significant improvements in technology, product offerings, and successful cross-selling initiatives within the execution services segment [66][71]. Question: Is there any indication that retail participation is slowing? - Management noted that retail engagement remains healthy and sustainable, with account openings continuing to grow, contradicting any narrative of a slowdown [82][84]. Question: Can you provide more details on the growth of the core non-customer market making business? - The company is focused on enhancing technology, improving execution quality, and diversifying revenue streams, indicating that the non-customer market making business is vibrant and growing [92][95]. Question: What is the product roadmap for the crypto business? - The company is expanding its crypto offerings, providing liquidity for a growing number of coins and exchanges, and is positioned to support institutional demand for digital asset products [100][108]. Question: How does your offering stack up against competitors in the outsourced trading business? - Management highlighted that their offering is more of an agency aggregation tool for smaller firms, contrasting with competitors' more focused white-label solutions, which do not scale as effectively [112][116].

Virtu Financial (VIRT) came out with quarterly earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.24%. A quarter ago, it was expected that this high-speed trading company would post earnings of $0.86 per share when it actually produced earnings of $1.14, delivering a surprise of 32.56%.Over the last four quar ...

Virtu Financial (VIRT) Q1 2025 Earnings Call April 23, 2025 08:00 AM ET Company Participants Andrew Smith - Senior VP of Global Business Development & Corporate StrategyDouglas Cifu - CEOJoseph Molluso - Co-President & Co-COOCindy Lee - Chief Financial OfficerChristopher Allen - Managing Director Conference Call Participants Daniel Fannon - Managing Director - Research AnalystKen Worthington - Financial AnalystNone - Analyst Operator Ladies and gentlemen, thank you for standing by and welcome to Virtu Finan ...