Virtu Announces First Quarter 2023 Results

Rhea-AI Summary

Virtu Financial reported its Q1 2023 results, revealing a net income of $110.1 million with a 29.5% net income margin. Total revenues hit $610.5 million, a 22.6% increase from Q4 2022 but a 12.9% decline year-over-year. Trading income decreased to $411.5 million, down 31.3% from the same quarter last year. Adjusted Net Trading Income dropped 26.1% to $373.1 million. The company declared a quarterly cash dividend of $0.24 per share, payable on June 15, 2023. Share buybacks amounted to $75.6 million. Although some metrics improved compared to Q4 2022, the year-over-year declines in revenue and net income signal potential challenges ahead.

Positive

• Total revenues increased 22.6% compared to Q4 2022.
• Trading revenue net increased 31.3% from Q4 2022.
• Share buybacks totaled $75.6 million.

Negative

• Net income decreased by 44.9% year-over-year to $110.1 million.
• Total revenues decreased 12.9% year-over-year from $701.3 million.
• Adjusted Net Trading Income down 26.1% to $373.1 million compared to Q1 2022.
• Normalized Adjusted EPS fell 41.7% year-over-year to $0.74.

NEW YORK, April 20, 2023 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the first quarter ended March 31, 2023.

First Quarter 2023:

• Net income of $110.1 million; Net income margin of 29.5%; Normalized Adjusted Net Income¹ of $127.6 million
• Basic and diluted earnings per share of $0.56; Normalized Adjusted EPS¹ of $0.74
• Total revenues of $610.5 million; Trading income, net, of $411.5 million
  • Adjusted Net Trading Income¹ of $373.1 million
• Adjusted EBITDA¹ of $207.5 million; Adjusted EBITDA Margin¹ of 55.6%
• Share buybacks of $75.6 million, or 3.9 million shares, under the Share Repurchase Program²

Highlights versus quarter ended December 31, 2022: 

• Total revenues increased 22.6%
• Trading revenue, net increased 31.3%
• Adjusted Net Trading Income¹ per day up 38%, comprising:
  • Market Making Adjusted Net Trading Income¹ per day up 53%
  • Execution Services Adjusted Net Trading Income¹ per day up 8%

The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on June 15, 2023 to shareholders of record as of June 1, 2023.

Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
Note 2: Shares repurchased calculated on a settlement date basis.

Financial Results

First Quarter 2023:

Total revenues decreased 12.9% to $610.5 million for this quarter, compared to $701.3 million for the same period in 2022. Trading income, net, decreased to $411.5 million for the quarter compared to $522.3 million for the same period in 2022. Net income totaled $110.1 million for this quarter, compared to net income of $199.9 million in the prior year quarter.

Basic and diluted earnings per share for this quarter were $0.56, compared to a basic and diluted earnings per share of $0.99, and $0.98, respectively, for the same period in 2022.

Adjusted Net Trading Income decreased 26.1% to $373.1 million for this quarter, compared to $505.1 million for the same period in 2022. Adjusted EBITDA decreased 39.6% to $207.5 million for this quarter, compared to $343.8 million for the same period in 2022.

Normalized Adjusted Net Income, removing one-time and non-cash items, decreased 45.0% to $127.6 million for this quarter, compared to $231.8 million for the same period in 2022.

Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.74 for this quarter, compared to $1.27 for the same period in 2022.

Operating Segment Information

The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three months ended March 31, 2023 and 2022.

Total revenues by segment
(in thousands, unaudited)

		Three Months Ended March 31, 2023																Three Months Ended March 31, 2022
		Market Making				Execution Services				Corporate				Total				Market Making				Execution Services				Corporate				Total
Trading income, net		$	407,343			$	4,168			$	—			$	411,511			$	516,358			$	5,949			$	—			$	522,307
Commissions, net and technology services			9,701				111,743				—				121,444				9,048				145,607				—				154,655
Interest and dividends income			70,779				2,557				—				73,336				20,982				29				—				21,011
Other, net			1,190				10				2,981				4,181				173				60				2,956				3,289
Total Revenues		$	489,013			$	118,478			$	2,981			$	610,472			$	546,561			$	151,745			$	2,956			$	701,262

Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
(in thousands, unaudited)

		Three Months Ended March 31, 2023																Three Months Ended March 31, 2022
		Market Making				Execution Services				Corporate				Total				Market Making				Execution Services				Corporate				Total
Trading income, net		$	407,343			$	4,168			$	—			$	411,511			$	516,358			$	5,949			$	—			$	522,307
Commissions, net and technology services			9,701				111,743				—				121,444				9,048				145,607				—				154,655
Interest and dividends income			70,779				2,557				—				73,336				20,982				29				—				21,011
Brokerage, exchange, clearance fees and payments for order flow, net			(122,950	)			(22,573	)			—				(145,523	)			(123,515	)			(26,865	)			—				(150,380	)
Interest and dividends expense			(87,016	)			(677	)			—				(87,693	)			(41,027	)			(1,511	)			—				(42,538	)
Adjusted Net Trading Income		$	277,857			$	95,218			$	—			$	373,075			$	381,846			$	123,209			$	—			$	505,055

Financial Condition

As of March 31, 2023, Virtu had $809.2 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,808.3 million.

Share Repurchase Program

Since inception of the program in November 2020 through settlement date April 19, 2023, the Company repurchased approximately 36.9 million shares of Class A Common Stock and Virtu Financial Units for approximately $987.2 million. The Company has approximately $232.8 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

Earnings Conference Call Information

Virtu Financial will host a conference call to review its first quarter 2023 financial performance today, April 20th, at 8:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

Website Information

We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Financial Measures and Other Items

To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), we use the following non-GAAP measures of financial performance:

• "Adjusted Net Trading Income", which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.
  
  
• "EBITDA", which measures our operating performance by adjusting Net Income to exclude financing interest expense on our long-term borrowings, debt issue cost related to debt refinancing, prepayment, and commitment fees, depreciation and amortization, amortization of purchased intangibles and acquired capitalized software, and income tax expense, and "Adjusted EBITDA", which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share based compensation and other expenses, which includes reserves for legal matters, and Other net, and “Adjusted EBITDA Margin”, which compares Adjusted EBITDA to Adjusted Net Trading Income.
  
  
• “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items including gains and losses from strategic investments and the sales of businesses, and other non-cash items, assuming that all vested and unvested non-voting common interest units in Virtu Financial LLC have been exchanged for shares of our Class A common stock, and applying an effective tax rate, which was approximately 24%.
  
  
• “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.
  

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

• they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
• our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
• they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
• they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
• they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

Virtu Financial, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended March 31,
(in thousands, except share and per share data)		2023				2022
Revenues:
Trading income, net	$	411,511			$	522,307
Interest and dividends income		73,336				21,011
Commissions, net and technology services		121,444				154,655
Other, net		4,181				3,289
Total revenues		610,472				701,262
Operating Expenses:
Brokerage, exchange, clearance fees and payments for order flow, net		145,523				150,380
Communication and data processing		56,812				55,835
Employee compensation and payroll taxes		103,437				103,480
Interest and dividends expense		87,693				42,538
Operations and administrative		24,299				25,215
Depreciation and amortization		15,348				17,477
Amortization of purchased intangibles and acquired capitalized software		16,020				16,480
Termination of office leases		96				707
Debt issue cost related to debt refinancing, prepayment and commitment fees		2,176				25,684
Transaction advisory fees and expenses		15				422
Financing interest expense on long-term borrowings		24,288				21,333
Total operating expenses		475,707				459,551
Income before income taxes and noncontrolling interest		134,765				241,711
Provision for income taxes		24,682				41,786
Net income	$	110,083			$	199,925
Noncontrolling interest		(52,202	)			(87,668	)
Net income available for common stockholders	$	57,881			$	112,257
Earnings per share:
Basic	$	0.56			$	0.99
Diluted	$	0.56			$	0.98
Weighted average common shares outstanding
Basic		97,795,957				109,329,468
Diluted		97,813,691				110,066,641
Comprehensive income:
Net income	$	110,083			$	199,925
Other comprehensive income
Foreign exchange translation adjustment, net of taxes		1,648				(5,168	)
Net change in unrealized cash flow hedges gains, net of taxes		(13,168	)			47,873
Comprehensive income	$	98,563			$	242,630
Less: Comprehensive income attributable to noncontrolling interest		(47,535	)			(104,159	)
Comprehensive income available for common stockholders	$	51,028			$	138,471

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)

The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

	Three Months Ended March 31,
(in thousands, except percentages)		2023				2022
Reconciliation of Trading income, net to Adjusted Net Trading Income
Trading income, net	$	411,511			$	522,307
Commissions, net and technology services		121,444				154,655
Interest and dividends income		73,336				21,011
Brokerage, exchange, clearance fees and payments for order flow, net		(145,523	)			(150,380	)
Interest and dividends expense		(87,693	)			(42,538	)
Adjusted Net Trading Income	$	373,075			$	505,055
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income		110,083				199,925
Financing interest expense on long-term borrowings		24,288				21,333
Debt issue cost related to debt refinancing, prepayment and commitment fees		2,176				25,684
Depreciation and amortization		15,348				17,477
Amortization of purchased intangibles and acquired capitalized software		16,020				16,480
Provision for income taxes		24,682				41,786
EBITDA	$	192,597			$	322,685
Severance		2,646				2,001
Transaction advisory fees and expenses		15				422
Termination of office leases		96				707
Other		(3,468	)			4,262
Share based compensation		15,583				13,712
Adjusted EBITDA	$	207,469			$	343,789
Selected Operating Margins
Net Income Margin (1)		29.5	%			39.6	%
EBITDA Margin (2)		51.6	%			63.9	%
Adjusted EBITDA Margin (3)		55.6	%			68.1	%
1 Calculated by dividing net income by Adjusted Net Trading Income.
2 Calculated by dividing EBITDA by Adjusted Net Trading Income.
3 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)
(Continued)

The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

	Three Months Ended March 31,
(in thousands, except share and per share data)		2023				2022
Reconciliation of Net Income to Normalized Adjusted Net Income
Net income	$	110,083			$	199,925
Provision for income taxes		24,682				41,786
Income before income taxes and noncontrolling interest	$	134,765			$	241,711
Amortization of purchased intangibles and acquired capitalized software		16,020				16,480
Debt issue cost related to debt refinancing, prepayment and commitment fees		2,176				25,684
Severance		2,646				2,001
Transaction advisory fees and expenses		15				422
Termination of office leases		96				707
Other		(3,468	)			4,262
Share based compensation		15,583				13,712
Normalized Adjusted Net Income before income taxes	$	167,833			$	304,979
Normalized provision for income taxes (1)		40,281				73,195
Normalized Adjusted Net Income	$	127,552			$	231,784
Weighted Average Adjusted shares outstanding (2)		171,353,224				183,172,671
Normalized Adjusted EPS	$	0.74			$	1.27
(1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
(2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company's Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company's Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company's Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan and the Amended and Restated ITG 2007 Equity Plan during the three months ended March 31, 2023 and 2022.

Virtu Financial, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition (Unaudited)

(in thousands, except share data)	March 31, 2023				December 31, 2022
Assets
Cash and cash equivalents	$	768,982			$	981,580
Cash and securities segregated under regulations and other		40,199				56,662
Securities borrowed		1,458,021				1,187,674
Securities purchased under agreements to resell		713,364				336,999
Receivables from broker-dealers and clearing organizations		1,165,830				1,115,185
Receivables from customers		109,205				80,830
Trading assets, at fair value		5,438,336				4,630,552
Property, equipment and capitalized software, net		93,424				85,194
Operating lease right-of-use assets		186,629				187,442
Goodwill		1,148,926				1,148,926
Intangibles (net of accumulated amortization)		305,460				321,480
Deferred taxes		141,250				146,801
Other assets		291,689				303,916
Total assets		11,861,315				10,583,241
Liabilities and equity
Liabilities
Short-term borrowings, net		121,238				3,944
Securities loaned		1,027,536				1,060,432
Securities sold under agreements to repurchase		1,007,307				627,549
Payables to broker-dealers and clearing organizations		258,752				273,843
Payables to customers		107,526				46,525
Trading liabilities, at fair value		5,114,781				4,196,974
Tax receivable agreement obligations		238,758				238,758
Accounts payable and accrued expenses and other liabilities		333,343				448,292
Deferred tax liabilities		367				343
Operating lease liabilities		237,254				239,202
Long-term borrowings, net		1,779,079				1,795,952
Total liabilities		10,225,941				8,931,814
Total equity		1,635,374				1,651,427
Total liabilities and equity	$	11,861,315			$	10,583,241
	As of March 31, 2023
Ownership of Virtu Financial LLC Interests:	Interests				%
Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units		101,227,595				59.5	%
Non-controlling Interests (Virtu Financial LLC)		68,948,271				40.5	%
Total Virtu Financial LLC Interests		170,175,866				100.0	%

About Virtu Financial, Inc.

Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic and governmental and other responses thereto; fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

CONTACT

Investor & Media Relations
Andrew Smith
media@virtu.com

FAQ

What were Virtu Financial's Q1 2023 earnings?

Virtu Financial reported a net income of $110.1 million and earnings per share of $0.56 for Q1 2023.

How did Virtu Financial perform compared to Q1 2022?

Compared to Q1 2022, Virtu Financial's net income fell 44.9% from $199.9 million and total revenues decreased by 12.9%.

What is the dividend declaration for Virtu Financial in Q1 2023?

Virtu Financial declared a quarterly cash dividend of $0.24 per share, payable on June 15, 2023.

How much did Virtu Financial allocate for share buybacks in Q1 2023?

In Q1 2023, Virtu Financial spent $75.6 million on share buybacks.

What was the decline in Adjusted Net Trading Income for Virtu Financial?

Adjusted Net Trading Income decreased 26.1% to $373.1 million in Q1 2023 compared to Q1 2022.