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 ...

Core Viewpoint - Macro uncertainty has delayed the IPO timeline, but there is significant pent-up demand for equity issuance, with expectations for a reopening in the second half of 2025 [1] Group 1: Market Outlook - The analyst forecasts a substantial runway for the electronification of fixed-income markets at Tradeweb Markets, capitalizing on political uncertainty in Washington [2] - BGC Group is expected to launch Treasury futures soon, with a projected market share in the $2 billion interest rate futures market surpassing 10% by 2027 [3] - Ongoing geopolitical uncertainty is anticipated to remain a key trading catalyst, despite expected normalization in volumes into the second half of 2025 [4] Group 2: Company Performance - Market structure stocks have seen an average increase of 8% in Q1 2025, with Nasdaq and Virtu Financial lagging behind but expected to achieve over 10% EPS beats [5] - Nasdaq-100 futures experienced a strong growth quarter, up 38% sequentially, contributing to indexing revenue [6] - Virtu Financial is expected to report solid results due to higher industry volumes in options, ETFs, and fixed income [7] Group 3: Competitive Landscape - Tradeweb Markets remains dominant in portfolio trading and D2D trading, with impressive month-to-date volume increases of 18% and 11% respectively [8] - MarketAxess Holdings is rated as underperforming, with a price target adjustment, while Tradeweb Markets and other companies like BGC Group and Nasdaq maintain buy ratings with revised price targets [8][9] - Intercontinental Exchange is expected to face near-term cyclical headwinds in its mortgage and listing business, impacting its performance [9][10]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time. Momentum Score The research service fe ...