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Release Details

Virtu Announces Second Quarter 2022 Results

July 28, 2022

NEW YORK, July 28, 2022 (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 second quarter ended June 30, 2022.

Second Quarter 2022:

  • Net income of $148.9 million; Normalized Adjusted Net Income1 of $129.9 million
  • Basic and diluted earnings per share of $0.78; Normalized Adjusted EPS1 of $0.73
  • Total revenues of $604.7 million; Trading income, net, of $395.9 million; Adjusted Net Trading Income1 of $357.4 million
  • Adjusted EBITDA1 of $209.3 million; Adjusted EBITDA Margin1 of 58.6%
  • Share buybacks of $47.5 million, or 1.8 million shares, under the Share Repurchase Program2

The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on September 15, 2022 to shareholders of record as of September 1, 2022.

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

Second Quarter 2022:

Total revenues increased 10.2% to $604.7 million for this quarter, compared to $549.0 million for the same period in 2021. Trading income, net, increased to $395.9 million for the quarter compared to $384.8 million for the same period in 2021. Other, net, increased to $41.7 million for this quarter, compared to $11.5 million, for the same period in 2021, primarily due to gains on strategic investments. Net income totaled $148.9 million for this quarter, compared to net income of $108.9 million in the prior year quarter.

Basic and diluted earnings per share for this quarter were both $0.78, compared to a basic and diluted earnings per share of $0.51 and $0.50, respectively, for the same period in 2021.

Adjusted Net Trading Income increased 4.5% to $357.4 million for this quarter, compared to $341.8 million for the same period in 2021. Adjusted EBITDA increased 6.1% to $209.3 million for this quarter, compared to $197.3 million for the same period in 2021.

Normalized Adjusted Net Income, removing one-time and non-cash items, increased 6.2% to $129.9 million for this quarter, compared to $122.3 million for the same period in 2021.

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 $0.73 for this quarter, compared to $0.63 for the same period in 2021.

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 and six months ended June 30, 2022 and 2021.

Total revenues by segment
(in thousands, unaudited)

    Three Months Ended June 30, 2022   Three Months Ended June 30, 2021
    Market
Making
  Execution
Services
  Corporate   Total   Market
Making
  Execution
Services
  Corporate   Total
Trading income, net   $ 390,263   $ 5,665   $   $ 395,928   $ 380,644   $ 4,188     $   $ 384,832
Commissions, net and technology services     11,145     125,195         136,340     9,087     134,028           143,115
Interest and dividends income     30,792             30,792     9,569     (24 )         9,545
Other, net     395     137     41,146     41,678     3,241     (62 )     8,294     11,473
Total Revenues   $ 432,595   $ 130,997   $ 41,146   $ 604,738   $ 402,541   $ 138,130     $ 8,294   $ 548,965

 

                                 
    Six Months Ended June 30, 2022   Six Months Ended June 30, 2021
    Market
Making
  Execution
Services
  Corporate   Total   Market
Making
  Execution
Services
  Corporate   Total
Trading income, net   $ 906,621   $ 11,614   $   $ 918,235   $ 1,181,926   $ 15,650   $   $ 1,197,576
Commissions, net and technology services     20,194     270,801         290,995     23,217     311,547         334,764
Interest and dividends income     51,775     29         51,804     16,469     72         16,541
Other, net     568     298     44,100     44,966     4,653     100     7,903     12,656
Total Revenues   $ 979,158   $ 282,742   $ 44,100   $ 1,306,000   $ 1,226,265   $ 327,369   $ 7,903   $ 1,561,537

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

    Three Months Ended June 30, 2022   Three Months Ended June 30, 2021
    Market
Making
  Execution
Services
  Corporate   Total   Market
Making
  Execution
Services
  Corporate   Total
Trading income, net   $ 390,263     $ 5,665     $   $ 395,928     $ 380,644     $ 4,188     $   $ 384,832  
Commissions, net and technology services     11,145       125,195           136,340       9,087       134,028           143,115  
Interest and dividends income     30,792                 30,792       9,569       (24 )         9,545  
Brokerage, exchange, clearance fees and payments for order flow, net     (131,121 )     (25,865 )         (156,986 )     (144,784 )     (25,907 )         (170,691 )
Interest and dividends expense     (47,355 )     (1,361 )         (48,716 )     (22,442 )     (2,529 )         (24,971 )
Adjusted Net Trading Income   $ 253,724     $ 103,634     $   $ 357,358     $ 232,074     $ 109,756     $   $ 341,830  

 

                                 
    Six Months Ended June 30, 2022   Six Months Ended June 30, 2021
    Market Making   Execution Services   Corporate   Total   Market Making   Execution Services   Corporate   Total
Trading income, net   $ 906,621     $ 11,614     $   $ 918,235     $ 1,181,926     $ 15,650     $   $ 1,197,576  
Commissions, net and technology services     20,194       270,801           290,995       23,217       311,547           334,764  
Interest and dividends income     51,775       29           51,804       16,469       72           16,541  
Brokerage, exchange, clearance fees and payments for order flow, net     (254,636 )     (52,730 )         (307,366 )     (367,978 )     (62,045 )         (430,023 )
Interest and dividends expense     (88,382 )     (2,872 )         (91,254 )     (46,436 )     (2,563 )         (48,999 )
Adjusted Net Trading Income   $ 635,572     $ 226,842     $   $ 862,414     $ 807,198     $ 262,661     $   $ 1,069,859  

Financial Condition

As of June 30, 2022, Virtu had $849.8 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,825.8 million.

Share Repurchase Program

Since inception of the program in November 2020 through settlement date July 27, 2022, the Company repurchased approximately 27.4 million shares of Class A Common Stock and Virtu Financial Units for approximately $787.8 million. The Company has approximately $432.2 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 second quarter 2022 financial performance today, July 28th, at 7:30 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 market making 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, COVID-19 one-time costs and donations 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
June 30,
  Six Months Ended
June 30,
(in thousands, except share and per share data)     2022       2021       2022       2021  
                 
Revenues:                
Trading income, net   $ 395,928     $ 384,832     $ 918,235     $ 1,197,576  
Interest and dividends income     30,792       9,545       51,804       16,541  
Commissions, net and technology services     136,340       143,115       290,995       334,764  
Other, net     41,678       11,473       44,966       12,656  
Total revenues     604,738       548,965       1,306,000       1,561,537  
                 
Operating Expenses:                
Brokerage, exchange, clearance fees and payments for order flow, net     156,986       170,691       307,366       430,023  
Communication and data processing     55,699       52,507       111,534       104,197  
Employee compensation and payroll taxes     98,604       83,849       202,084       188,620  
Interest and dividends expense     48,716       24,971       91,254       48,999  
Operations and administrative     13,577       21,753       38,792       47,408  
Depreciation and amortization     16,334       16,349       33,812       33,127  
Amortization of purchased intangibles and acquired capitalized software     16,277       18,077       32,757       36,154  
Termination of office leases     677       3,667       1,384       4,888  
Debt issue cost related to debt refinancing, prepayment and commitment fees     1,437       1,989       27,121       3,744  
Transaction advisory fees and expenses     558       (3 )     980       (17 )
Financing interest expense on long-term borrowings     22,089       20,113       43,422       39,605  
Total operating expenses     430,954       413,963       890,506       936,748  
                 
Income before income taxes and noncontrolling interest     173,784       135,002       415,494       624,789  
Provision for income taxes     24,888       26,095       66,674       106,650  
Net income   $ 148,896     $ 108,907     $ 348,820     $ 518,139  
                 
Noncontrolling interest     (63,729 )     (45,997 )     (151,397 )     (215,824 )
                 
Net income available for common stockholders   $ 85,167     $ 62,910     $ 197,423     $ 302,315  
                 
Earnings per share:                
Basic   $ 0.78     $ 0.51     $ 1.78     $ 2.43  
Diluted   $ 0.78     $ 0.50     $ 1.77     $ 2.41  
                 
Weighted average common shares outstanding                
Basic     104,960,826       119,681,845       107,133,079       120,865,624  
Diluted     105,478,278       121,181,392       107,759,784       122,279,261  
                 
Comprehensive income:                
Net income   $ 148,896     $ 108,907     $ 348,820     $ 518,139  
Other comprehensive income                
Foreign exchange translation adjustment, net of taxes     (19,810 )     66       (24,978 )     (3,610 )
Net change in unrealized cash flow hedges gains, net of taxes     14,062       (7,206 )     61,935       14,700  
Comprehensive income   $ 143,148     $ 101,767     $ 385,777     $ 529,229  
Less: Comprehensive income attributable to noncontrolling interest     (60,173 )     (42,929 )     (164,332 )     (220,545 )
Comprehensive income available for common stockholders   $ 82,975     $ 58,838     $ 221,445     $ 308,684  

 

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
June 30,
  Six Months Ended
June 30,
(in thousands, except percentages)     2022       2021       2022       2021  
                 
Reconciliation of Trading income, net to Adjusted Net Trading Income                
Trading income, net   $ 395,928     $ 384,832     $ 918,235     $ 1,197,576  
Commissions, net and technology services     136,340       143,115       290,995       334,764  
Interest and dividends income     30,792       9,545       51,804       16,541  
Brokerage, exchange, clearance fees and payments for order flow, net     (156,986 )     (170,691 )     (307,366 )     (430,023 )
Interest and dividends expense     (48,716 )     (24,971 )     (91,254 )     (48,999 )
Adjusted Net Trading Income   $ 357,358     $ 341,830     $ 862,414     $ 1,069,859  
                 
Reconciliation of Net Income to EBITDA and Adjusted EBITDA                
Net income     148,896       108,907       348,820       518,139  
Financing interest expense on long-term borrowings     22,089       20,113       43,422       39,605  
Debt issue cost related to debt refinancing, prepayment and commitment fees     1,437       1,989       27,121       3,744  
Depreciation and amortization     16,334       16,349       33,812       33,127  
Amortization of purchased intangibles and acquired capitalized software     16,277       18,077       32,757       36,154  
Provision for income taxes     24,888       26,095       66,674       106,650  
EBITDA   $ 229,921     $ 191,530     $ 552,606     $ 737,419  
Severance     757       1,020       2,759       3,039  
Transaction advisory fees and expenses     558       (3 )     980       (17 )
Termination of office leases     677       3,667       1,384       4,888  
Other     (41,631 )     (11,434 )     (37,369 )     (8,603 )
Share based compensation     18,997       12,552       32,709       25,330  
Adjusted EBITDA   $ 209,279     $ 197,332     $ 553,069     $ 762,056  
                 
Selected Operating Margins                
Net Income Margin (1)     41.7 %     31.9 %     40.4 %     48.4 %
EBITDA Margin (2)     64.3 %     56.0 %     64.1 %     68.9 %
Adjusted EBITDA Margin (3)     58.6 %     57.7 %     64.1 %     71.2 %
                 
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
June 30,
  Six Months Ended
June 30,
(in thousands, except share and per share data)     2022       2021       2022       2021  
                 
Reconciliation of Net Income to Normalized Adjusted Net Income                
Net income   $ 148,896     $ 108,907     $ 348,820     $ 518,139  
Provision for income taxes     24,888       26,095       66,674       106,650  
Income before income taxes and noncontrolling interest   $ 173,784     $ 135,002     $ 415,494     $ 624,789  
Amortization of purchased intangibles and acquired capitalized software     16,277       18,077       32,757       36,154  
Debt issue cost related to debt refinancing, prepayment and commitment fees     1,437       1,989       27,121       3,744  
Severance     757       1,020       2,759       3,039  
Transaction advisory fees and expenses     558       (3 )     980       (17 )
Termination of office leases     677       3,667       1,384       4,888  
Other     (41,631 )     (11,434 )     (37,369 )     (8,603 )
Share based compensation     18,997       12,552       32,709       25,330  
Normalized Adjusted Net Income before income taxes   $ 170,856     $ 160,870     $ 475,835     $ 689,324  
Normalized provision for income taxes (1)     41,006       38,609       114,201       165,438  
Normalized Adjusted Net Income   $ 129,850     $ 122,261     $ 361,634     $ 523,886  
                 
Weighted Average Adjusted shares outstanding (2)     178,886,524       194,770,445       181,017,758       195,861,065  
                 
Normalized Adjusted EPS   $ 0.73     $ 0.63     $ 2.00     $ 2.67  
                 
(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 and six months ended June 30, 2022 and 2021 as well as warrants issued in connection with the Founder Member Loan during the three and six months ended June 30, 2021.

 

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

(in thousands, except share data)   June 30,
2022
  December 31,
2021
         
Assets        
Cash and cash equivalents   $ 810,649   $ 1,071,463  
Cash and securities segregated under regulations and other     39,121     49,490  
Securities borrowed     1,369,616     1,349,322  
Securities purchased under agreements to resell     122,766     119,453  
Receivables from broker-dealers and clearing organizations     1,419,628     1,026,807  
Receivables from customers     226,933     146,476  
Trading assets, at fair value     5,180,721     4,256,955  
Property, equipment and capitalized software, net     86,056     89,595  
Operating lease right-of-use assets     208,476     225,328  
Goodwill     1,148,926     1,148,926  
Intangibles (net of accumulated amortization)     353,575     386,332  
Deferred taxes     141,922     158,518  
Other assets     307,225     291,306  
Total assets     11,415,614     10,319,971  
         
Liabilities and equity        
Liabilities        
Short-term borrowings, net     157,114     61,510  
Securities loaned     1,049,609     1,142,048  
Securities sold under agreements to repurchase     501,193     514,325  
Payables to broker-dealers and clearing organizations     704,897     571,526  
Payables to customers     106,969     54,999  
Trading liabilities, at fair value     4,471,229     3,510,779  
Tax receivable agreement obligations     237,938     259,282  
Accounts payable and accrued expenses and other liabilities     396,128     457,942  
Deferred tax liabilities     73     65  
Operating lease liabilities     257,673     278,745  
Long-term borrowings, net     1,792,383     1,605,132  
Total liabilities     9,675,206     8,456,353  
         
Total equity     1,740,408     1,863,618  
         
Total liabilities and equity   $ 11,415,614   $ 10,319,971  
         
    As of June 30, 2022
Ownership of Virtu Financial LLC Interests:   Interests   %
Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units     108,175,982     61.0 %
Non-controlling Interests (Virtu Financial LLC)     69,123,361     39.0 %
Total Virtu Financial LLC Interests     177,299,343     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
investor_relations@virtu.com


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Source: Virtu Financial, LLC

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