Virtu Financial(US:VIRT)2025-10-29 13:00Financial 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]