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 ...

Financial Data and Key Metrics Changes - The company reported a normalized EPS of $1.3 and total adjusted net trading income per day of $8,300,000, with quarterly EBITDA at $320,000,000 and an EBITDA margin of 64% [5][22]. - Adjusted net trading income totaled $497,000,000 for Q1 2025, with market making adjusted net trading income at $382,000,000 and execution services adjusted net trading income at $115,000,000 [22]. Business Line Data and Key Metrics Changes - Market Making had its best quarter since Q1 2021, with strong performance in noncustomer Global Equities, digital assets, and ETF block market making franchises [6][7]. - The Execution Services segment reported its seventh consecutive quarter of increasing net trading income, indicating a strong growth trajectory [9]. Market Data and Key Metrics Changes - Retail participation, as measured by retail shares and quoted spread, was significantly higher than in 2024 and Q1 2025, with levels comparable to the pandemic days of 2020 [15][16]. - The company noted a secular uptrend in retail engagement, supported by strong new account openings from retail brokers [16][59]. Company Strategy and Development Direction - The company aims to sharpen its edge in existing businesses, extend into new products and markets, and benefit from rising market volumes and volatility [17]. - The strategic focus includes enhancing the Execution Services business, with a target of achieving a $2,000,000 per day run rate [20][45]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of retail engagement, citing data that indicates continued healthy levels of retail participation [57]. - The company highlighted the resilience of market infrastructure during recent volatility, with no significant operational issues reported [13][14]. Other Important Information - The company repurchased 1,300,000 shares at an average price of $36.44 per share, totaling $48,000,000, and has repurchased over 52,000,000 shares since the initiation of the program [24]. - The company remains committed to a $0.24 reported dividend, demonstrating a commitment to return capital to shareholders [24]. Q&A Session Summary Question: Can you help us think about the balance between the wholesale business and the on-exchange business? - Management indicated that the increase from Q4 to Q1 was evenly allocated between customer and noncustomer businesses, with strong performance across various segments including precious metals and options [30][31]. Question: What gives you confidence in the $2,000,000 per day target for the VES business? - Confidence stems from significant improvements in technology, product enhancements, and a strong customer-facing approach, with a focus on cross-selling and distribution partnerships [45][49]. Question: Is there any indication that retail engagement is slowing? - Management noted that retail engagement remains healthy and sustainable, with data showing continued growth in account openings among key retail brokers [57][59]. Question: Can you provide an update on the product roadmap for your crypto business? - The company is expanding its crypto offerings, providing liquidity for a growing number of coins and establishing partnerships with various exchanges [73][76].

Core Insights - Virtu Financial, Inc. reported a strong financial performance for the first quarter of 2025, with total revenues increasing by 30.3% to $837.9 million compared to $642.8 million in the same period of 2024 [3][22] - The company declared a quarterly cash dividend of $0.24 per share, payable on June 16, 2025, to shareholders of record as of May 30, 2025 [1] Financial Performance - Trading income, net, rose by 44.6% to $590.0 million for the quarter, up from $408.1 million in the prior year [3][22] - Net income for the quarter was $189.6 million, compared to $111.3 million in the same quarter of 2024 [3][22] - Basic and diluted earnings per share were $1.09 and $1.08, respectively, compared to $0.59 for the same period in 2024 [4][22] Adjusted Financial Metrics - Adjusted Net Trading Income increased by 35.5% to $497.1 million, compared to $366.9 million in the same period of 2024 [5][22] - Adjusted EBITDA rose by 57.7% to $319.9 million for the quarter, compared to $202.8 million in the same period in 2024 [5][22] - Normalized Adjusted Net Income increased by 67.6% to $208.3 million, compared to $124.3 million in the same period of 2024 [5][22] Operating Segments - The company operates in two segments: Market Making and Execution Services, with Market Making primarily focusing on cash, futures, and options markets across various asset classes [7][8] - Execution Services includes agency-based trading and trading venues, providing execution services in global equities, options, futures, and fixed income [8] Share Repurchase Program - Since the inception of the share repurchase program in November 2020, the company has repurchased approximately 52.1 million shares for about $1,346.2 million, with $373.8 million remaining for future purchases [13] Financial Condition - As of March 31, 2025, Virtu had $771.0 million in cash, cash equivalents, and restricted cash, with total long-term debt of $1,768.3 million [12][34]

Core Viewpoint - Kahn Swick & Foti, LLC is investigating Virtu Financial, Inc. due to allegations of failing to implement effective information access barriers, which has led to scrutiny from regulators and a securities class action lawsuit against the company and its executives [1][2][3][4]. Group 1: Regulatory Scrutiny - Virtu Financial has been under intense scrutiny from finance media and regulators for allegedly failing to protect sensitive trading data, allowing employees unrestricted access [2]. - The company disclosed in early 2023 that it was responding to requests from the U.S. Securities and Exchange Commission (SEC) regarding its information access barriers and anticipates a Wells Notice from the SEC if no settlement is reached [2]. - On September 12, 2023, the SEC filed charges against Virtu Financial [2]. Group 2: Legal Actions - The company and certain executives are facing a securities class action lawsuit for failing to disclose material information during the Class Period, violating federal securities laws [3]. - A court has denied Virtu's motion to dismiss the class action lawsuit, allowing the case to proceed [3]. Group 3: Investigation Focus - KSF's investigation is centered on whether Virtu's officers and/or directors breached their fiduciary duties to shareholders or violated state or federal laws [4].

NEW YORK, April 03, 2025 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ:VIRT), a leading provider of global, multi-asset financial services that delivers liquidity and innovative, transparent products across the complete investment cycle to the global markets, will announce its results for the first quarter 2025 on Wednesday, April 23, 2025, before the US market open. Virtu will host a conference call to discuss the company's financial results at 8:00 AM (EDT). A live webcast of the event will be availab ...

Macro uncertainty has delayed the timeline for an IPO comeback, but there remains substantial pent-up supply for equity issuance.That’s according to BofA Securities analyst Craig Siegenthaler, who maintained all of his ratings and continues to look for a reopening in the second half of 2025. This will restart Nasdaq, Inc‘s NDAQ strategic flywheel across listings, trading, and corporate services, he says.Also Read: Nasdaq Plans 24-Hour Trading To Tap Global Investor DemandSiegenthaler continued to forecast t ...