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Core Insights - Virtu Financial (VIRT) reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and up from $0.82 per share a year ago, representing an earnings surprise of +8.25% [1] - The company achieved revenues of $467.02 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.16%, and an increase from $388.03 million year-over-year [2] - Virtu Financial has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - The earnings surprise for the previous quarter was +12.5%, with actual earnings of $1.53 per share compared to an expected $1.36 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.87, with projected revenues of $417.87 million, and for the current fiscal year, the EPS estimate is $4.80 on revenues of $1.91 billion [7] Market Position - Virtu Financial shares have underperformed the market, losing about 3.1% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The company currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Virtu Financial belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The firm reported normalized adjusted EPS of $1.05 and adjusted net trading income (ANTI) of $467 million, or $7.4 million per day, driven by a positive operating environment [9] - Market making reported ANTI of $344 million, or $5.4 million per day, with strong performance in global equities, crypto, and currencies and commodities [9] - Virtu Execution Services (VES) reported ANTI of $123 million, or $1.9 million per day, marking its best quarter since early 2021 and its sixth consecutive quarter of increased ANTI [9][10] Business Line Data and Key Metrics Changes - VES showed consistent quarter-on-quarter growth, achieving a goal of $2 million per day through the cycle [10] - The workflow and analytics business generated $137 million of ANTI on a trailing 12-month basis [10] - Existing growth initiatives delivered ANTI per day slightly ahead of the prior quarter [11] Market Data and Key Metrics Changes - The firm experienced strong performance in crypto and proprietary market making business, particularly in commodities [33][39] - The 605 quoted spread opportunity declined 3% sequentially, while market making revenue fell 26% sequentially, indicating a broader market trend affecting performance [33] Company Strategy and Development Direction - The company aims to focus on growing trading results through investing in infrastructure, acquiring talent, and expanding the capital base [7] - There is a strategic pivot to include options, cryptocurrency, and ETF block trading as growth areas, while not excluding other business segments [22] - The management emphasizes a long-term plan to double the capital base to significantly grow the P&L [16][60] Management's Comments on Operating Environment and Future Outlook - Management noted a confluence of factors enabling a focus on growth, including successful integrations and a favorable external environment [20] - The firm aims to move towards the higher end of the adjusted net trading income range of $6 million-$10 million per day as a base case [7][45] - Management acknowledged the inherent volatility of the business but expressed confidence in achieving consistent growth [46] Other Important Information - The company raised over $500 million of new trading capital, which has already been deployed [15] - Management indicated that any incremental capital deployment will be within historical risk parameters [41] - The firm is actively hiring across various roles, including developers and traders, to support growth initiatives [62] Q&A Session Summary Question: Areas of significant growth opportunities - Management highlighted that growth opportunities exist across the firm, particularly in crypto options and ETF block trading, while also focusing on core businesses [15][20] Question: Capital management priorities and share repurchases - Management stated that they will dial back share repurchases to build more capital, with over $500 million raised for trading capital already deployed [15][16] Question: Timeline for options market making - Management indicated that while they are not specifically targeting customer market making in options, they are focused on excelling in trading options [29] Question: Revenue capture in market making segment - Management acknowledged a decline in market making revenue but emphasized strong performance in other areas like crypto and proprietary market making [33][39] Question: Impact of new capital on performance - Management noted that any incremental capital deployed earned a 95% return, with strong performance in crypto and options contributing to growth [38] Question: Variability in revenue due to increased capital deployment - Management expects to move towards the high end of the net trading income range but acknowledged that the business remains volatile [45][46] Question: Tokenization and infrastructure changes - Management expressed readiness to adapt to tokenized assets and highlighted ongoing participation in various crypto markets [55] Question: Prioritization of capital allocation - Management indicated flexibility in capital allocation based on market conditions, with a focus on areas like cryptocurrency and ETF block trading [64]

Financial Data and Key Metrics Changes - The company reported normalized adjusted EPS of $1.05 and adjusted net trading income (ANTI) of $467 million, averaging $7.4 million per day, reflecting a positive operating environment [8][9] - Market making reported ANTI of $344 million, or $5.4 million per day, driven by strong performance in global equities, crypto, and currencies and commodities [9] - Virtu Execution Services (VES) achieved ANTI of $123 million, or $1.9 million per day, marking its best quarter since early 2021 and its sixth consecutive quarter of increased ANTI [9][10] Business Line Data and Key Metrics Changes - Market making showed strong performance across all businesses, particularly in global equities, crypto, and currencies and commodities [9] - VES reported consistent quarter-on-quarter growth, achieving a goal of $2 million per day through the cycle, with a strong suite of workflow and analytics products [10] Market Data and Key Metrics Changes - The company noted continued momentum in crypto markets and strong performance in options and ETF block trading, indicating a favorable market environment for these segments [36][37] Company Strategy and Development Direction - The company plans to focus on growing trading results by investing in infrastructure, acquiring talent, and expanding its capital base, aiming to trend toward the higher end of the adjusted net trading income range of $6 million to $10 million per day [6][11] - The management emphasized a pivot to growth across all areas of the business, including options, cryptocurrency, and ETF block trading, while maintaining a disciplined approach to capital management [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current growth opportunities and the excitement among employees to refocus on growth, citing a confluence of factors that make this the right time for expansion [20][21] - The company aims to double its P&L over time, which may require doubling its capital base, indicating a long-term growth strategy [15][54] Other Important Information - The company raised over $500 million of new trading capital in 2025, which has already been deployed, and plans to continue accumulating capital organically over time [14][15] - Management highlighted the importance of maintaining a strong operational leverage while attracting and retaining top talent to support growth initiatives [24] Q&A Session Summary Question: Can you elaborate on the focus on growth opportunities? - Management indicated that there are significant growth opportunities across the firm, particularly in crypto options and ETF block trading, and they are prepared to adapt to new market conditions [14][20] Question: What is the timeline for customer market making in options? - Management stated that while they are not specifically targeting customer market making, they are focused on excelling in trading options and will explore opportunities as they arise [28] Question: How does the recent capital raise impact growth initiatives? - Management noted that any incremental capital deployed has earned a 95% return, with strong performances in crypto, options, and ETF block trading contributing to growth [36] Question: Will increased capital deployment lead to more variability in results? - Management clarified that while they aim to move towards the higher end of the net trading income range, the business will remain volatile, and results will depend on market conditions [42][44] Question: How do opportunistic buybacks fit into capital management? - Management emphasized that the priority is to invest in growth opportunities rather than buybacks, although they have the capacity to consider buybacks if necessary [46][48] Question: How is the company positioned for tokenization of assets? - Management indicated that they are actively involved in crypto markets and are prepared to adapt their technology to support trading in tokenized assets [50] Question: What areas will the company prioritize for capital allocation? - Management highlighted that capital allocation will be flexible and based on market conditions, with a focus on areas like cryptocurrency and ETF block trading [58][59]

Financial Performance - The company's Normalized Adjusted EPS was $1.05 in 3Q 2025[3], compared to $1.53 in 2Q 2025, a decrease of 31%[13] - Adjusted Net Trading Income (NTI) reached $467 million in 3Q 2025[3], a 20% decrease from $568 million in 2Q 2025 but a 21% increase from $388 million in 3Q 2024[13] - Daily Average Adjusted NTI was $7.4 million in 3Q 2025[3] - Adjusted EBITDA was $268 million in 3Q 2025, with an Adjusted EBITDA Margin of 57%[3] - The company's Debt to Last Twelve Months (LTM) Adjusted EBITDA ratio stood at 1.7x[3] - LTM 3Q'25 Normalized Adjusted EPS was $5.01 and LTM 3Q'25 Adjusted NTI/day was $8.0 million[4] Business Segments - Market Making Adjusted NTI was $344 million in 3Q 2025, representing 74% of the total Adjusted NTI[13] - Execution Services Adjusted NTI was $123 million in 3Q 2025, accounting for 26% of the total Adjusted NTI[13] - VES Adjusted NTI has increased in 6 consecutive quarters (+32% vs 1Q 2024)[4] Market Metrics - US Equity Consolidated Notional Volume averaged $827 billion daily in 3Q 2025, a 3% increase compared to 2Q 2025 and a 41% increase compared to 3Q 2024[15] - Virtu Rule 605 Executed Shares averaged 800 million in 3Q 2025, a 7% increase compared to 2Q 2025 and a 45% increase compared to 3Q 2024[15]

Core Insights - Virtu Financial, Inc. reported a strong financial performance for the third quarter of 2025, with total revenues increasing by 16.7% to $824.8 million compared to $706.8 million in the same period of 2024 [4][11] - The company declared a quarterly cash dividend of $0.24 per share, payable on December 15, 2025 [3] Financial Results - Total revenues for Q3 2025 reached $824.8 million, a 16.7% increase from $706.8 million in Q3 2024 [4] - Trading income, net, rose by 19.2% to $529.1 million compared to $444.0 million in the prior year [4] - Net income for the quarter was $149.1 million, up from $119.0 million in Q3 2024 [4][11] - Basic and diluted earnings per share were $0.86, compared to $0.65 and $0.64 for the same period in 2024 [5] Adjusted Financial Metrics - Adjusted Net Trading Income increased by 20.4% to $467.0 million for Q3 2025, compared to $388.0 million in Q3 2024 [6] - Adjusted EBITDA rose by 24.7% to $267.8 million, compared to $214.8 million in the same period last year [6] - Normalized Adjusted Net Income increased by 26.1% to $166.5 million, compared to $132.1 million in Q3 2024 [6] Operating Segments - The company operates in two segments: Market Making and Execution Services [8][9] - Market Making segment includes trading across various asset classes, while Execution Services focuses on agency-based trading and technology services [8][9] Share Repurchase Program - Since the inception of the share repurchase program in November 2020, the company has repurchased approximately 53.8 million shares for about $1.417 billion [15] - The remaining capacity for future purchases under the program is approximately $302.8 million [15] Financial Condition - As of September 30, 2025, Virtu had $755.4 million in cash and cash equivalents, with total long-term debt of $2.0687 billion [14]

Core Insights - Virtu Financial, Inc. (VIRT) is scheduled to report its third-quarter 2025 results on October 29, with earnings per share (EPS) estimated at $1.00 and revenues projected at $420.1 million, reflecting a year-over-year earnings increase of 22% and revenue growth of 8.3% [1][2] Financial Performance Estimates - For the full year 2025, the Zacks Consensus Estimate for Virtu Financial's revenues is $1.9 billion, indicating a year-over-year rise of 19.4%. The consensus for EPS is $4.80, suggesting a 35.2% increase year-over-year [2] - The company has consistently beaten consensus earnings estimates in the past four quarters, with an average surprise of 14.9% [2] Earnings Prediction Model - The current model does not predict an earnings beat for Virtu Financial this quarter, as it has an Earnings ESP of -7.36% and a Zacks Rank of 4 (Sell) [3] Revenue Drivers - The expected growth in Virtu Financial's top line is attributed to improved net trading income, higher commissions, and technology services revenues, along with increased interest and dividends income. The consensus estimate for overall net trading income is $489.1 million, reflecting a 10.1% year-over-year increase [4] - The consensus estimate for commissions and technology services is $150 million, indicating a 14% year-over-year increase [5] - Interest and dividends income is estimated at $132.2 million, which implies a 5.5% rise from the previous year [8] Segment Performance - The Market Making segment's net trading income is estimated at $485 million, indicating a 10.1% year-over-year rise, while the Execution Services segment's net trading income is projected at $4.1 million, reflecting a 15.4% growth [9] Cost Pressures - Virtu Financial's margins are expected to be impacted by rising operating costs, which are anticipated to increase by 10.2% year-over-year to $617 million. This includes higher brokerage, exchange, clearance fees, and employee compensation costs [10]

Core Insights - Virtu Financial, Inc. will announce its third quarter 2025 financial results on October 29, 2025, before the US market opens [1] - A conference call to discuss the financial results will take place at 8:00 AM (EDT) and will be accessible to the public via a live webcast [2] Company Overview - Virtu Financial is a leading provider of financial services and products, utilizing advanced technology to deliver liquidity and innovative trading solutions to clients [3] - The company offers a comprehensive product suite that includes execution, liquidity sourcing, analytics, and broker-neutral, multi-dealer platforms across various asset classes [3] - Virtu operates in over 50 countries, allowing clients to trade on hundreds of venues in global equities, ETFs, foreign exchange, futures, fixed income, cryptocurrency, and other commodities [3] - The integrated, multi-asset analytics platform provides pre-, intra-, and post-trade services, data products, and compliance tools for clients to manage risk and invest across global markets [3]

Core Insights - Virtu Financial, Inc. has been recognized for its leadership in the financial services industry, particularly through the achievements of Pegah Esmaeili, who received the Excellence in Sales & Trading (Equities) award at the European Women in Finance Awards [1][4] Company Overview - Virtu Financial is a leading provider of global, multi-asset financial services, delivering liquidity and innovative products across the investment cycle to global markets [1][5] - The firm utilizes advanced technology to offer execution services, data analytics, and connectivity products, enabling clients to trade across hundreds of venues in over 50 countries and multiple asset classes [5] Leadership and Recognition - Pegah Esmaeili has over a decade of experience in her role and has been pivotal in establishing Virtu as a key player in the Nordic region through her client-first approach and collaborative efforts [2] - Esmaeili is also the driving force behind Virtu's Winter Conference in Stockholm, which has become a significant forum for discussions on market innovations and shifts [3] Commitment to Excellence - David Angel, EMEA's Head of Business Development at Virtu Financial, highlighted Esmaeili's recognition as a testament to her hard work and dedication, reflecting the company's commitment to excellence, innovation, and teamwork [4]

Core Viewpoint - Virtu Financial is considered one of the most undervalued financial stocks by Wall Street analysts, despite a recent downgrade in earnings estimates due to reduced market volatility [1][2][3]. Group 1: Earnings Forecast and Price Target - Jefferies has cut its price target for Virtu Financial from $51 to $49 while maintaining a "Buy" rating, citing a revised adjusted earnings estimate for Q3 2025 from $1.02 per share to $0.83 per share [1][2]. - The downgrade in earnings forecast is attributed to a 31% decrease in the average level of the VIX index compared to the previous quarter, indicating lower market volatility [2]. Group 2: Business Model and Market Position - Despite the reduced volatility, Jefferies maintains that retail trading engagement remains positive, which supports Virtu's core revenue streams [3]. - Analysts express confidence in Virtu's business model and profitability, highlighting its ability to generate strong financial results even during periods of lower volatility [3]. Group 3: Company Overview - Virtu Financial, Inc. is a financial services company that utilizes proprietary technology to provide market-making, execution services, and multi-asset analytics across various sectors including equities, fixed income, currencies, commodities, options, futures, and cryptocurrencies [4].