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Release Details

Virtu Announces Third Quarter 2023 Results

November 2, 2023

NEW YORK, Nov. 02, 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 third quarter ended September 30, 2023.

Third Quarter 2023:

  • Net income of $117.6 million; Normalized Adjusted Net Income1 of $74.7 million
  • Basic and diluted earnings per share of $0.63; Normalized Adjusted EPS1 of $0.45
  • Total revenues of $630.2 million; Trading income, net, of $316.1 million; Net income Margin of 18.7%2
    • Adjusted Net Trading Income1 of $298.0 million
  • Adjusted EBITDA1 of $139.5 million; Adjusted EBITDA Margin1 of 46.8%
  • Share buybacks of $48.8 million, or 2.7 million shares, under the Share Repurchase Program3

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

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

Third Quarter 2023:

Total revenues increased 12.3% to $630.2 million for this quarter, compared to $561.0 million for the same period in 2022. Trading income, net, decreased to $316.1 million for the quarter compared to $397.4 million for the same period in 2022. Other, net increased to $76.1 million for this quarter compared to ($1.0) million for the same period in 2022. Net income totaled $117.6 million for this quarter, compared to net income of $79.9 million in the prior year quarter.

Basic and diluted earnings per share for this quarter were $0.63, compared to a basic earnings per share of $0.38 and diluted earnings per share of $0.37, for the same period in 2022.

Adjusted Net Trading Income decreased 10.0% to $298.0 million for this quarter, compared to $331.1 million for the same period in 2022. Adjusted EBITDA decreased 22.7% to $139.5 million for this quarter, compared to $180.6 million for the same period in 2022. Each of these metrics excludes Other, net.

Normalized Adjusted Net Income, removing one-time and non-cash items, decreased 30.0% to $74.7 million for this quarter, compared to $106.8 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 $0.45 for this quarter, compared to $0.61 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 and nine months ended September 30, 2023 and 2022.

Total revenues by segment
(in thousands, unaudited)

  Three Months Ended September 30, 2023   Three Months Ended September 30, 2022
  Market
Making
  Execution
Services
  Corporate   Total   Market
Making
  Execution
Services
  Corporate   Total
Trading income, net $ 310,523   $ 5,562   $   $ 316,085   $ 392,496   $ 4,887   $     $ 397,383  
Commissions, net and technology services   6,343     103,933         110,276     10,687     110,299           120,986  
Interest and dividends income   124,803     2,890         127,693     43,446     185           43,631  
Other, net   75,682     68     360     76,110     1,257     4,228     (6,441 )     (956 )
Total Revenues $ 517,351   $ 112,453   $ 360   $ 630,164   $ 447,886   $ 119,599   $ (6,441 )   $ 561,044  

 

  Nine Months Ended September 30, 2023   Nine Months Ended September 30, 2022
  Market
Making
  Execution
Services
  Corporate   Total   Market
Making
  Execution
Services
  Corporate   Total
Trading income, net $ 1,021,179   $ 13,585   $     $ 1,034,764   $ 1,299,117   $ 16,501   $   $ 1,315,618
Commissions, net and technology services   22,677     318,546           341,223     30,881     381,100         411,981
Interest and dividends income   300,086     7,830           307,916     95,221     214         95,435
Other, net   77,580     84     (4,171 )     73,493     1,825     4,525     37,660     44,010
Total Revenues $ 1,421,522   $ 340,045   $ (4,171 )   $ 1,757,396   $ 1,427,044   $ 402,340   $ 37,660   $ 1,867,044

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

  Three Months Ended September 30, 2023   Three Months Ended September 30, 2022
  Market
Making
  Execution
Services
  Corporate   Total   Market
Making
  Execution
Services
  Corporate   Total
Trading income, net $ 310,523     $ 5,562     $   $ 316,085     $ 392,496     $ 4,887     $   $ 397,383  
Commissions, net and technology services   6,343       103,933           110,276       10,687       110,299           120,986  
Interest and dividends income   124,803       2,890           127,693       43,446       185           43,631  
Brokerage, exchange, clearance fees and payments for order flow, net   (101,077 )     (22,168 )         (123,245 )     (147,346 )     (21,523 )         (168,869 )
Interest and dividends expense   (132,523 )     (279 )         (132,802 )     (61,019 )     (970 )         (61,989 )
Adjusted Net Trading Income $ 208,069     $ 89,938     $   $ 298,007     $ 238,264     $ 92,878     $   $ 331,142  

 

  Nine Months Ended September 30, 2023   Nine Months Ended September 30, 2022
  Market
Making
  Execution
Services
  Corporate   Total   Market
Making
  Execution
Services
  Corporate   Total
Trading income, net $ 1,021,179     $ 13,585     $   $ 1,034,764     $ 1,299,117     $ 16,501     $   $ 1,315,618  
Commissions, net and technology services   22,677       318,546           341,223       30,881       381,100           411,981  
Interest and dividends income   300,086       7,830           307,916       95,221       214           95,435  
Brokerage, exchange, clearance fees and payments for order flow, net   (323,868 )     (67,370 )         (391,238 )     (401,982 )     (74,253 )         (476,235 )
Interest and dividends expense   (340,954 )     (1,942 )         (342,896 )     (149,401 )     (3,842 )         (153,243 )
Adjusted Net Trading Income $ 679,120     $ 270,649     $   $ 949,769     $ 873,836     $ 319,720     $   $ 1,193,556  

Financial Condition

As of September 30, 2023, Virtu had $726.4 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,805.4 million.

Share Repurchase Program

Since inception of the program in November 2020 through settlement date October 31, 2023, the Company repurchased approximately 42.2 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,083.7 million. The Company has approximately $136.3 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 third quarter 2023 financial performance today, November 2nd, 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 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 
September 30,
  Nine Months Ended 
September 30,
(in thousands, except share and per share data) 2023   2022   2023   2022
               
Revenues:              
Trading income, net $ 316,085     $ 397,383     $ 1,034,764     $ 1,315,618  
Interest and dividends income   127,693       43,631       307,916       95,435  
Commissions, net and technology services   110,276       120,986       341,223       411,981  
Other, net   76,110       (956 )     73,493       44,010  
Total revenues   630,164       561,044       1,757,396       1,867,044  
               
Operating Expenses:              
Brokerage, exchange, clearance fees and payments for order flow, net   123,245       168,869       391,238       476,235  
Communication and data processing   57,066       52,907       170,837       164,441  
Employee compensation and payroll taxes   97,221       103,254       296,214       305,338  
Interest and dividends expense   132,802       61,989       342,896       153,243  
Operations and administrative   22,416       14,319       72,204       53,110  
Depreciation and amortization   15,815       16,658       47,076       50,470  
Amortization of purchased intangibles and acquired capitalized software   15,967       16,060       48,007       48,817  
Termination of office leases   364       361       314       1,744  
Debt issue cost related to debt refinancing, prepayment and commitment fees   1,796       1,404       5,744       28,525  
Transaction advisory fees and expenses   6       134       30       1,113  
Financing interest expense on long-term borrowings   25,361       23,483       74,499       66,905  
Total operating expenses   492,059       459,438       1,449,059       1,349,941  
               
Income before income taxes and noncontrolling interest   138,105       101,606       308,337       517,103  
Provision for income taxes   20,512       21,732       51,117       88,405  
Net income $ 117,593     $ 79,874     $ 257,220     $ 428,698  
               
Noncontrolling interest   (55,678 )     (39,867 )     (120,722 )     (191,264 )
               
Net income available for common stockholders $ 61,915     $ 40,007     $ 136,498     $ 237,434  
               
Earnings per share:              
Basic $ 0.63     $ 0.38     $ 1.36     $ 2.17  
Diluted $ 0.63     $ 0.37     $ 1.36     $ 2.16  
               
Weighted average common shares outstanding              
Basic   93,408,537       102,289,172       95,376,590       105,500,700  
Diluted   93,408,537       102,550,852       95,376,590       106,004,393  
               
Comprehensive income:              
Net income $ 117,593     $ 79,874     $ 257,220     $ 428,698  
Other comprehensive income              
Foreign exchange translation adjustment, net of taxes   (4,005 )     (18,527 )     170       (43,505 )
Net change in unrealized cash flow hedges gains, net of taxes   (7,646 )     30,731       (12,612 )     92,666  
Comprehensive income $ 105,942     $ 92,078     $ 244,778     $ 477,859  
Less: Comprehensive income attributable to noncontrolling interest   (50,832 )     (44,719 )     (115,557 )     (209,051 )
Comprehensive income available for common stockholders $ 55,110     $ 47,359     $ 129,221     $ 268,808  

 

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
September 30,
  Nine Months Ended
September 30,
(in thousands, except percentages) 2023   2022   2023   2022
               
Reconciliation of Trading income, net to Adjusted Net Trading Income              
Trading income, net $ 316,085     $ 397,383     $ 1,034,764     $ 1,315,618  
Commissions, net and technology services   110,276       120,986       341,223       411,981  
Interest and dividends income   127,693       43,631       307,916       95,435  
Brokerage, exchange, clearance fees and payments for order flow, net   (123,245 )     (168,869 )     (391,238 )     (476,235 )
Interest and dividends expense   (132,802 )     (61,989 )     (342,896 )     (153,243 )
Adjusted Net Trading Income $ 298,007     $ 331,142     $ 949,769     $ 1,193,556  
               
Reconciliation of Net Income to EBITDA and Adjusted EBITDA              
Net income   117,593       79,874       257,220       428,698  
Financing interest expense on long-term borrowings   25,361       23,483       74,499       66,905  
Debt issue cost related to debt refinancing, prepayment and commitment fees   1,796       1,404       5,744       28,525  
Depreciation and amortization   15,815       16,658       47,076       50,470  
Amortization of purchased intangibles and acquired capitalized software   15,967       16,060       48,007       48,817  
Provision for income taxes   20,512       21,732       51,117       88,405  
EBITDA $ 197,044     $ 159,211     $ 483,663     $ 711,820  
Severance   1,346       1,250       5,256       4,009  
Transaction advisory fees and expenses   6       134       30       1,113  
Termination of office leases   364       361       314       1,744  
Other   (74,599 )     1,556       (67,396 )     (35,813 )
Share based compensation   15,353       18,133       47,108       50,841  
Adjusted EBITDA $ 139,514     $ 180,645     $ 468,975     $ 733,714  
               
Selected Operating Margins              
GAAP Net income Margin (1)   18.7 %     14.2 %     14.6 %     23.0 %
Non-GAAP Net income Margin (2)   39.5 %     24.1 %     27.1 %     35.9 %
EBITDA Margin (3)   66.1 %     48.1 %     50.9 %     59.6 %
Adjusted EBITDA Margin (4)   46.8 %     54.6 %     49.4 %     61.5 %
               
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 
September 30,
  Nine Months Ended 
September 30,
(in thousands, except share and per share data) 2023   2022   2023   2022
               
Reconciliation of Net Income to Normalized Adjusted Net Income              
Net income $ 117,593     $ 79,874   $ 257,220     $ 428,698  
Provision for income taxes   20,512       21,732     51,117       88,405  
Income before income taxes and noncontrolling interest $ 138,105     $ 101,606   $ 308,337     $ 517,103  
Amortization of purchased intangibles and acquired capitalized software   15,967       16,060     48,007       48,817  
Debt issue cost related to debt refinancing, prepayment and commitment fees   1,796       1,404     5,744       28,525  
Severance   1,346       1,250     5,256       4,009  
Transaction advisory fees and expenses   6       134     30       1,113  
Termination of office leases   364       361     314       1,744  
Other   (74,599 )     1,556     (67,396 )     (35,813 )
Share based compensation   15,353       18,133     47,108       50,841  
Normalized Adjusted Net Income before income taxes $ 98,338     $ 140,504   $ 347,400     $ 616,339  
Normalized provision for income taxes (1)   23,601       33,702     83,374       147,922  
Normalized Adjusted Net Income $ 74,737     $ 106,802   $ 264,026     $ 468,417  
               
Weighted Average Adjusted shares outstanding (2)   167,164,049       175,893,027     169,101,067       179,290,742  
               
Normalized Adjusted EPS $ 0.45     $ 0.61   $ 1.56     $ 2.61  
               
(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 during the three and nine months ended September 30, 2023 and 2022 and the Amended and Restated ITG 2007 Equity Plan during the three and nine months ended September 30, 2022.

 

Virtu Financial, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition (Unaudited)
 
(in thousands, except share data) September 30,
2023
  December 31,
2022
       
Assets      
Cash and cash equivalents $ 688,790   $ 981,580
Cash and securities segregated under regulations and other   37,565     56,662
Securities borrowed   1,524,177     1,187,674
Securities purchased under agreements to resell   3,127,072     336,999
Receivables from broker-dealers and clearing organizations   1,696,495     1,115,185
Receivables from customers   148,445     80,830
Trading assets, at fair value   8,287,525     4,630,552
Property, equipment and capitalized software, net   92,124     85,194
Operating lease right-of-use assets   161,811     187,442
Goodwill   1,148,926     1,148,926
Intangibles (net of accumulated amortization)   273,473     321,480
Deferred taxes   132,361     146,801
Other assets   299,664     303,916
Total assets   17,618,428     10,583,241
       
Liabilities and equity      
Liabilities      
Short-term borrowings, net   97,217     3,944
Securities loaned   1,459,980     1,060,432
Securities sold under agreements to repurchase   3,376,948     627,549
Payables to broker-dealers and clearing organizations   540,464     273,843
Payables to customers   74,374     46,525
Trading liabilities, at fair value   7,941,472     4,196,974
Tax receivable agreement obligations   215,483     238,758
Accounts payable and accrued expenses and other liabilities   411,848     448,635
Operating lease liabilities   211,249     239,202
Long-term borrowings, net   1,778,743     1,795,952
Total liabilities   16,107,778     8,931,814
       
Total equity   1,510,650     1,651,427
       
Total liabilities and equity $ 17,618,428   $ 10,583,241
       
  As of September 30, 2023
Ownership of Virtu Financial LLC Interests: Interests   %
Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units   96,468,282     58.4%
Non-controlling Interests (Virtu Financial LLC)   68,699,738     41.6%
Total Virtu Financial LLC Interests   165,168,020     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
media@virtu.com

 

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Source: Virtu Financial, LLC

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