Virtu Announces First Quarter 2025 Results
Virtu Financial (NASDAQ: VIRT) reported strong Q1 2025 financial results with significant year-over-year growth. Total revenues increased 30.3% to $837.9 million, while net income reached $189.6 million. Trading income rose 44.6% to $590.0 million.
Key metrics include:
- Basic and diluted EPS of $1.09 and $1.08, respectively
- Adjusted Net Trading Income up 35.5% to $497.1 million
- Adjusted EBITDA increased 57.7% to $319.9 million
- Normalized Adjusted EPS of $1.30
The company continued its share buyback program, repurchasing $48.1 million worth of shares in Q1. The Board declared a quarterly dividend of $0.24 per share, payable June 16, 2025. As of March 31, 2025, Virtu maintained $771.0 million in cash and equivalents, with total long-term debt of $1,768.3 million.
Virtu Financial (NASDAQ: VIRT) ha riportato risultati finanziari solidi per il primo trimestre del 2025, con una crescita significativa rispetto all'anno precedente. I ricavi totali sono aumentati del 30,3%, raggiungendo 837,9 milioni di dollari, mentre l'utile netto ha toccato i 189,6 milioni di dollari. Il reddito da trading è cresciuto del 44,6%, arrivando a 590,0 milioni di dollari.
Le metriche chiave includono:
- EPS base e diluito rispettivamente di 1,09 e 1,08 dollari
- Reddito netto da trading rettificato in aumento del 35,5% a 497,1 milioni di dollari
- EBITDA rettificato cresciuto del 57,7% a 319,9 milioni di dollari
- EPS rettificato normalizzato di 1,30 dollari
L'azienda ha proseguito il programma di riacquisto azionario, acquistando azioni per un valore di 48,1 milioni di dollari nel primo trimestre. Il Consiglio ha dichiarato un dividendo trimestrale di 0,24 dollari per azione, pagabile il 16 giugno 2025. Al 31 marzo 2025, Virtu disponeva di 771,0 milioni di dollari in contanti e equivalenti, con un debito a lungo termine totale di 1.768,3 milioni di dollari.
Virtu Financial (NASDAQ: VIRT) reportó resultados financieros sólidos en el primer trimestre de 2025, con un crecimiento significativo interanual. Los ingresos totales aumentaron un 30,3%, alcanzando los 837,9 millones de dólares, mientras que el ingreso neto llegó a 189,6 millones de dólares. Los ingresos por trading crecieron un 44,6%, hasta 590,0 millones de dólares.
Las métricas clave incluyen:
- EPS básico y diluido de 1,09 y 1,08 dólares, respectivamente
- Ingreso neto ajustado por trading aumentó un 35,5% hasta 497,1 millones de dólares
- EBITDA ajustado incrementó un 57,7% hasta 319,9 millones de dólares
- EPS ajustado normalizado de 1,30 dólares
La compañía continuó con su programa de recompra de acciones, adquiriendo acciones por un valor de 48,1 millones de dólares en el primer trimestre. La Junta declaró un dividendo trimestral de 0,24 dólares por acción, pagadero el 16 de junio de 2025. Al 31 de marzo de 2025, Virtu mantenía 771,0 millones de dólares en efectivo y equivalentes, con una deuda a largo plazo total de 1.768,3 millones de dólares.
Virtu Financial (NASDAQ: VIRT)는 2025년 1분기에 전년 대비 큰 폭의 성장을 기록한 강력한 실적을 발표했습니다. 총 수익은 30.3% 증가한 8억 3,790만 달러를 기록했으며, 순이익은 1억 8,960만 달러에 달했습니다. 거래 수익은 44.6% 증가하여 5억 9,000만 달러에 이르렀습니다.
주요 지표는 다음과 같습니다:
- 기본 및 희석 주당순이익 각각 1.09달러와 1.08달러
- 조정 순거래수익 35.5% 증가하여 4억 9,710만 달러
- 조정 EBITDA 57.7% 증가하여 3억 1,990만 달러
- 정상화된 조정 주당순이익 1.30달러
회사는 주식 자사주 매입 프로그램을 계속 진행하여 1분기에 4,810만 달러 상당의 주식을 매입했습니다. 이사회는 주당 0.24달러의 분기 배당금을 선언했으며, 배당금은 2025년 6월 16일에 지급될 예정입니다. 2025년 3월 31일 기준으로 Virtu는 현금 및 현금성 자산 7억 7,100만 달러를 보유하고 있으며, 총 장기 부채는 17억 6,830만 달러입니다.
Virtu Financial (NASDAQ : VIRT) a publié de solides résultats financiers pour le premier trimestre 2025, avec une croissance significative d'une année sur l'autre. Les revenus totaux ont augmenté de 30,3 % pour atteindre 837,9 millions de dollars, tandis que le bénéfice net a atteint 189,6 millions de dollars. Les revenus de trading ont progressé de 44,6 %, atteignant 590,0 millions de dollars.
Les indicateurs clés comprennent :
- BPA de base et dilué de 1,09 $ et 1,08 $ respectivement
- Revenu net de trading ajusté en hausse de 35,5 % à 497,1 millions de dollars
- EBITDA ajusté en hausse de 57,7 % à 319,9 millions de dollars
- BPA ajusté normalisé de 1,30 $
L'entreprise a poursuivi son programme de rachat d'actions, rachetant pour 48,1 millions de dollars d'actions au premier trimestre. Le conseil d'administration a déclaré un dividende trimestriel de 0,24 $ par action, payable le 16 juin 2025. Au 31 mars 2025, Virtu disposait de 771,0 millions de dollars en liquidités et équivalents, avec une dette à long terme totale de 1 768,3 millions de dollars.
Virtu Financial (NASDAQ: VIRT) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem deutlichen Wachstum im Jahresvergleich. Die Gesamterlöse stiegen um 30,3 % auf 837,9 Millionen US-Dollar, während der Nettogewinn 189,6 Millionen US-Dollar erreichte. Der Handelsgewinn wuchs um 44,6 % auf 590,0 Millionen US-Dollar.
Wichtige Kennzahlen umfassen:
- Basis- und verwässertes Ergebnis je Aktie von 1,09 bzw. 1,08 US-Dollar
- Bereinigtes Nettohandelsergebnis stieg um 35,5 % auf 497,1 Millionen US-Dollar
- Bereinigtes EBITDA stieg um 57,7 % auf 319,9 Millionen US-Dollar
- Normalisiertes bereinigtes Ergebnis je Aktie von 1,30 US-Dollar
Das Unternehmen setzte sein Aktienrückkaufprogramm fort und kaufte im ersten Quartal Aktien im Wert von 48,1 Millionen US-Dollar zurück. Der Vorstand erklärte eine Quartalsdividende von 0,24 US-Dollar je Aktie, zahlbar am 16. Juni 2025. Zum 31. März 2025 verfügte Virtu über 771,0 Millionen US-Dollar an liquiden Mitteln und Äquivalenten sowie langfristige Verbindlichkeiten in Höhe von 1.768,3 Millionen US-Dollar.
- Net income increased 70.4% YoY to $189.6 million
- Trading income grew 44.6% to $590.0 million
- Total revenues up 30.3% to $837.9 million
- Adjusted EBITDA rose 57.7% to $319.9 million
- Continued share buyback program with $48.1 million in repurchases
- Long-term debt remains substantial at $1,768.3 million
Insights
Virtu Financial posted exceptional Q1 2025 results with 70% YoY net income growth and significant improvements across all key financial metrics.
Virtu Financial's Q1 2025 results demonstrate remarkable financial strength across all key performance indicators. Net income surged to
The company's core business operations showed exceptional momentum with total revenues climbing
Examining segment performance reveals strength across the business. The Market Making segment generated
Virtu continues prioritizing shareholder returns through its dividend program and share repurchases. The declared quarterly dividend of
The balance sheet remains solid with
NEW YORK, April 23, 2025 (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, 2025.
First Quarter 2025:
- Net income of
$189.6 million ; Normalized Adjusted Net Income1 of$208.3 million - Basic and diluted earnings per share of
$1.09 and$1.08 , respectively; Normalized Adjusted EPS1 of$1.30 - Total revenues of
$837.9 million ; Trading income, net, of$590.0 million ; Net income Margin of22.6% 2- Adjusted Net Trading Income1 of
$497.1 million
- Adjusted Net Trading Income1 of
- Adjusted EBITDA1 of
$319.9 million ; Adjusted EBITDA Margin1 of64.4% - Share buybacks of
$48.1 million , or 1.3 million shares, under the Share Repurchase Program3
The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of
Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
Note 2: Calculated by dividing Net income by Total revenue
Note 3: Shares repurchased calculated on a settlement date basis.
Financial Results
First Quarter 2025:
Total revenues increased
Basic and diluted earnings per share for this quarter were
Adjusted Net Trading Income increased
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
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, cryptocurrencies, 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, 2025 and 2024.
Total revenues by segment
(in thousands, unaudited)
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||
| Market Making | Execution Services | Corporate | Total | Market Making | Execution Services | Corporate | Total | |||||||||||||||||||||
| Trading income, net | $ | 582,622 | $ | 7,361 | $ | — | $ | 589,983 | $ | 403,698 | $ | 4,397 | $ | — | $ | 408,095 | ||||||||||||
| Commissions, net and technology services | 17,312 | 133,995 | — | 151,307 | 7,202 | 111,409 | — | 118,611 | ||||||||||||||||||||
| Interest and dividends income | 106,438 | 2,615 | — | 109,053 | 103,802 | 2,190 | — | 105,992 | ||||||||||||||||||||
| Other, net | (15,200 | ) | (2,963 | ) | 5,689 | (12,474 | ) | 6,306 | (208 | ) | 4,043 | 10,141 | ||||||||||||||||
| Total Revenues | $ | 691,172 | $ | 141,008 | $ | 5,689 | $ | 837,869 | $ | 521,008 | $ | 117,788 | $ | 4,043 | $ | 642,839 | ||||||||||||
Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
(in thousands, unaudited)
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||
| Market Making | Execution Services | Corporate | Total | Market Making | Execution Services | Corporate | Total | |||||||||||||||||||||||
| Trading income, net | $ | 582,622 | $ | 7,361 | $ | — | $ | 589,983 | $ | 403,698 | $ | 4,397 | $ | — | $ | 408,095 | ||||||||||||||
| Commissions, net and technology services | 17,312 | 133,995 | — | 151,307 | 7,202 | 111,409 | — | 118,611 | ||||||||||||||||||||||
| Interest and dividends income | 106,438 | 2,615 | — | 109,053 | 103,802 | 2,190 | — | 105,992 | ||||||||||||||||||||||
| Brokerage, exchange, clearance fees and payments for order flow, net | (194,303 | ) | (27,572 | ) | — | (221,875 | ) | (115,866 | ) | (23,933 | ) | — | (139,799 | ) | ||||||||||||||||
| Interest and dividends expense | (130,051 | ) | (1,277 | ) | — | (131,328 | ) | (125,158 | ) | (870 | ) | — | (126,028 | ) | ||||||||||||||||
| Adjusted Net Trading Income | $ | 382,018 | $ | 115,122 | $ | — | $ | 497,140 | $ | 273,678 | $ | 93,193 | $ | — | $ | 366,871 | ||||||||||||||
Financial Condition
As of March 31, 2025, Virtu had
Share Repurchase Program
Since inception of the program in November 2020 through settlement date April 17, 2025, the Company repurchased approximately 52.1 million shares of Class A Common Stock and Virtu Financial Units for approximately
Earnings Conference Call Information
Virtu Financial will host a conference call to review its first quarter 2025 financial performance today, April 23rd, at 8:00 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 X account (x.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 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, which includes gains and losses from strategic investments and the sales of businesses.
- “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, and other non-cash items, assuming that all vested and unvested Virtu Financial Units have been exchanged for 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) | 2025 | 2024 | ||||||
| Revenues: | ||||||||
| Trading income, net | $ | 589,983 | $ | 408,095 | ||||
| Interest and dividends income | 109,053 | 105,992 | ||||||
| Commissions, net and technology services | 151,307 | 118,611 | ||||||
| Other, net | (12,474 | ) | 10,141 | |||||
| Total revenues | 837,869 | 642,839 | ||||||
| Operating Expenses: | ||||||||
| Brokerage, exchange, clearance fees and payments for order flow, net | 221,875 | 139,799 | ||||||
| Communication and data processing | 59,803 | 58,182 | ||||||
| Employee compensation and payroll taxes | 119,356 | 100,823 | ||||||
| Interest and dividends expense | 131,328 | 126,028 | ||||||
| Operations and administrative | 22,136 | 22,346 | ||||||
| Depreciation and amortization | 15,932 | 16,076 | ||||||
| Amortization of purchased intangibles and acquired capitalized software | 11,783 | 14,687 | ||||||
| Termination of office leases | 10 | 17 | ||||||
| Debt issue cost related to debt refinancing, prepayment and commitment fees | 1,681 | 1,694 | ||||||
| Transaction advisory fees and expenses | 338 | 135 | ||||||
| Financing interest expense on long-term borrowings | 29,891 | 23,232 | ||||||
| Total operating expenses | 614,133 | 503,019 | ||||||
| Income before income taxes and noncontrolling interest | 223,736 | 139,820 | ||||||
| Provision for income taxes | 34,101 | 28,512 | ||||||
| Net income | $ | 189,635 | $ | 111,308 | ||||
| Noncontrolling interest | (89,954 | ) | (55,491 | ) | ||||
| Net income available for common stockholders | $ | 99,681 | $ | 55,817 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 1.09 | $ | 0.59 | ||||
| Diluted | $ | 1.08 | $ | 0.59 | ||||
| Weighted average common shares outstanding | ||||||||
| Basic | 85,681,015 | 88,999,122 | ||||||
| Diluted | 86,047,558 | 88,999,122 | ||||||
| Comprehensive income: | ||||||||
| Net income | $ | 189,635 | $ | 111,308 | ||||
| Other comprehensive income | ||||||||
| Foreign exchange translation adjustment, net of taxes | 4,740 | (3,526 | ) | |||||
| Net change in unrealized cash flow hedges gain (loss), net of taxes | (2,110 | ) | 1,547 | |||||
| Comprehensive income | $ | 192,265 | $ | 109,329 | ||||
| Less: Comprehensive income attributable to noncontrolling interest | (91,075 | ) | (54,655 | ) | ||||
| Comprehensive income available for common stockholders | $ | 101,190 | $ | 54,674 | ||||
| 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) | 2025 | 2024 | ||||||
| Reconciliation of Trading income, net to Adjusted Net Trading Income | ||||||||
| Trading income, net | $ | 589,983 | $ | 408,095 | ||||
| Commissions, net and technology services | 151,307 | 118,611 | ||||||
| Interest and dividends income | 109,053 | 105,992 | ||||||
| Brokerage, exchange, clearance fees and payments for order flow, net | (221,875 | ) | (139,799 | ) | ||||
| Interest and dividends expense | (131,328 | ) | (126,028 | ) | ||||
| Adjusted Net Trading Income | $ | 497,140 | $ | 366,871 | ||||
| Reconciliation of Net Income to EBITDA and Adjusted EBITDA | ||||||||
| Net income | 189,635 | 111,308 | ||||||
| Financing interest expense on long-term borrowings | 29,891 | 23,232 | ||||||
| Debt issue cost related to debt refinancing, prepayment and commitment fees | 1,681 | 1,694 | ||||||
| Depreciation and amortization | 15,932 | 16,076 | ||||||
| Amortization of purchased intangibles and acquired capitalized software | 11,783 | 14,687 | ||||||
| Provision for income taxes | 34,101 | 28,512 | ||||||
| EBITDA | $ | 283,023 | $ | 195,509 | ||||
| Severance | 2,179 | 1,485 | ||||||
| Transaction advisory fees and expenses | 338 | 135 | ||||||
| Termination of office leases | 10 | 17 | ||||||
| Other | 12,501 | (9,347 | ) | |||||
| Share based compensation | 21,888 | 15,033 | ||||||
| Adjusted EBITDA | $ | 319,939 | $ | 202,832 | ||||
| Selected Operating Margins | ||||||||
| GAAP Net income Margin (1) | 22.6 | % | 17.3 | % | ||||
| Non-GAAP Net income Margin (2) | 38.1 | % | 30.3 | % | ||||
| EBITDA Margin (3) | 56.9 | % | 53.3 | % | ||||
| Adjusted EBITDA Margin (4) | 64.4 | % | 55.3 | % | ||||
| 1 Calculated by dividing Net income by Total revenue. | ||||||||
| 2 Calculated by dividing Net income by Adjusted Net Trading Income. | ||||||||
| 3 Calculated by dividing EBITDA by Adjusted Net Trading Income. | ||||||||
| 4 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) | 2025 | 2024 | |||||
| Reconciliation of Net Income to Normalized Adjusted Net Income | |||||||
| Net income | $ | 189,635 | $ | 111,308 | |||
| Provision for income taxes | 34,101 | 28,512 | |||||
| Income before income taxes and noncontrolling interest | $ | 223,736 | $ | 139,820 | |||
| Amortization of purchased intangibles and acquired capitalized software | 11,783 | 14,687 | |||||
| Debt issue cost related to debt refinancing, prepayment and commitment fees | 1,681 | 1,694 | |||||
| Severance | 2,179 | 1,485 | |||||
| Transaction advisory fees and expenses | 338 | 135 | |||||
| Termination of office leases | 10 | 17 | |||||
| Other | 12,501 | (9,347 | ) | ||||
| Share based compensation | 21,888 | 15,033 | |||||
| Normalized Adjusted Net Income before income taxes | $ | 274,116 | $ | 163,524 | |||
| Normalized provision for income taxes (1) | 65,787 | 39,246 | |||||
| Normalized Adjusted Net Income | $ | 208,329 | $ | 124,278 | |||
| Weighted Average Adjusted shares outstanding (2) | 160,301,753 | 162,842,086 | |||||
| Normalized Adjusted EPS | $ | 1.30 | $ | 0.76 | |||
| (1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately | |||||||
| (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 | |||||||
| Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Financial Condition (Unaudited) | |||||||
| (in thousands, except share data) | March 31, 2025 | December 31, 2024 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 723,650 | $ | 872,513 | |||
| Cash and securities segregated under regulations and other | 47,364 | 41,478 | |||||
| Securities borrowed | 2,780,405 | 2,294,529 | |||||
| Securities purchased under agreements to resell | 1,153,090 | 983,941 | |||||
| Receivables from broker-dealers and clearing organizations | 1,857,854 | 1,100,850 | |||||
| Receivables from customers | 189,382 | 149,804 | |||||
| Trading assets, at fair value | 8,720,981 | 7,802,652 | |||||
| Property, equipment and capitalized software, net | 92,815 | 91,415 | |||||
| Operating lease right-of-use assets | 163,230 | 175,046 | |||||
| Goodwill | 1,148,926 | 1,148,926 | |||||
| Intangibles (net of accumulated amortization) | 190,280 | 203,188 | |||||
| Deferred taxes | 125,762 | 135,046 | |||||
| Assets of business held for sale | 4,573 | 4,615 | |||||
| Other assets | 349,902 | 357,740 | |||||
| Total assets | 17,548,214 | 15,361,743 | |||||
| Liabilities and equity | |||||||
| Liabilities | |||||||
| Short-term borrowings, net | 112,149 | 38,541 | |||||
| Securities loaned | 2,827,025 | 2,431,878 | |||||
| Securities sold under agreements to repurchase | 1,461,415 | 1,271,788 | |||||
| Payables to broker-dealers and clearing organizations | 774,809 | 918,566 | |||||
| Payables to customers | 66,732 | 46,112 | |||||
| Trading liabilities, at fair value | 8,116,856 | 6,440,971 | |||||
| Tax receivable agreement obligations | 175,819 | 196,592 | |||||
| Accounts payable and accrued expenses and other liabilities | 492,892 | 558,100 | |||||
| Operating lease liabilities | 216,314 | 229,825 | |||||
| Long-term borrowings, net | 1,741,092 | 1,740,467 | |||||
| Liabilities of business held for sale | 1,455 | 1,526 | |||||
| Total liabilities | 15,986,558 | 13,874,366 | |||||
| Total equity | 1,561,656 | 1,487,377 | |||||
| Total liabilities and equity | $ | 17,548,214 | $ | 15,361,743 | |||
| As of March 31, 2025 | |||||||
| Ownership of Virtu Financial LLC Interests: | Interests | % | |||||
| Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units | 91,932,822 | 57.4 | % | ||||
| Non-controlling Interests (Virtu Financial LLC) | 68,286,587 | 42.6 | % | ||||
| Total Virtu Financial LLC Interests | 160,219,409 | 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 fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties, clients, 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; potential consequences of pending SEC proposals by the prior administration focused on equity markets which may, if adopted, result in reduced overall and off-exchange trading volumes and market making opportunities, impose additional or heightened regulatory obligations on market makers and other market participants, and generally increase the implicit and explicit cost as well as the complexity of the U.S. equities eco-system for all participants; 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
investor_relations@virtu.com
media@virtu.com
FAQ
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