• Virtu Announces Second Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 18 Jul 2024 07:00:10   America/New_York

    NEW YORK, July 18, 2024 (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, 2024.

    Second Quarter 2024:

    • Net income of $128.1 million; Normalized Adjusted Net Income1 of $135.3 million
    • Basic and diluted earnings per share of $0.71; Normalized Adjusted EPS1 of $0.83
    • Total revenues of $693.0 million; Trading income, net, of $426.4 million; Net income Margin of 18.5%2
      • Adjusted Net Trading Income1 of $385.1 million
    • Adjusted EBITDA1 of $217.5 million; Adjusted EBITDA Margin1 of 56.5%
    • Share buybacks of $31.0 million, or 1.4 million shares, under the Share Repurchase Program3
    • Completed refinancing of existing debt with the issuance of $1.2 billion senior secured first lien term loan due 2031 and issuance of $0.5 billion senior secured first lien notes due 2031.

    The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on September 15, 2024 to shareholders of record as of September 1, 2024.

    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

    Second Quarter 2024:

    Total revenues increased 36.7% to $693.0 million for this quarter, compared to $506.9 million for the same period in 2023. Trading income, net, increased 39.3% to $426.4 million for the quarter compared to $306.2 million for the same period in 2023. Net income totaled $128.1 million for this quarter, compared to net income of $29.5 million in the prior year quarter.

    Basic and diluted earnings per share for this quarter were $0.71, compared to basic and diluted earnings per share of $0.16, for the same period in 2023.

    Adjusted Net Trading Income increased 38.2% to $385.1 million for this quarter, compared to $278.7 million for the same period in 2023. Adjusted EBITDA increased 78.3% to $217.5 million for this quarter, compared to $122.0 million for the same period in 2023. Normalized Adjusted Net Income, removing one-time and non-cash items, increased 119.2% to $135.3 million for this quarter, compared to $61.7 million for the same period in 2023.

    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 $0.83 for this quarter, compared to $0.37 for the same period in 2023.

    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, 2024 and 2023.

    Total revenues by segment
    (in thousands, unaudited)

      Three Months Ended June 30, 2024 Three Months Ended June 30, 2023
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $420,074  $6,321  $—  $426,395  $302,312  $3,856  $—  $306,168 
    Commissions, net and technology services  9,281   116,820   —   126,101   6,634   102,870   —   109,504 
    Interest and dividends income  104,311   2,755   —   107,066   95,595   2,384   —   97,979 
    Other, net  36,117   1,163   (3,857)  33,423   709   6   (7,512)  (6,797)
    Total Revenues $569,783  $127,059  $(3,857) $692,985  $405,250  $109,116  $(7,512) $506,854 


                     
      Six Months Ended June 30, 2024 Six Months Ended June 30, 2023
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $823,772  $10,718  $—  $834,490  $710,655  $8,024  $—  $718,679 
    Commissions, net and technology services  16,483   228,229   —   244,712   16,334   214,614   —   230,948 
    Interest and dividends income  208,113   4,945   —   213,058   175,283   4,940   —   180,223 
    Other, net  42,423   955   186   43,564   1,897   15   (4,529)  (2,617)
    Total Revenues $1,090,791  $244,847  $186  $1,335,824  $904,169  $227,593  $(4,529) $1,127,233 

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

      Three Months Ended June 30, 2024 Three Months Ended June 30, 2023
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $420,074  $6,321  $—  $426,395  $302,312  $3,856  $—  $306,168 
    Commissions, net and technology services  9,281   116,820   —   126,101   6,634   102,870   —   109,504 
    Interest and dividends income  104,311   2,755   —   107,066   95,595   2,384   —   97,979 
    Brokerage, exchange, clearance fees and payments for order flow, net  (125,972)  (24,815)  —   (150,787)  (99,842)  (22,629)  —   (122,471)
    Interest and dividends expense  (122,130)  (1,563)  —   (123,693)  (111,508)  (985)  —   (112,493)
    Adjusted Net Trading Income $285,564  $99,518  $—  $385,082  $193,191  $85,496  $—  $278,687 


                     
      Six Months Ended June 30, 2024 Six Months Ended June 30, 2023
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $823,772  $10,718  $—  $834,490  $710,655  $8,024  $—  $718,679 
    Commissions, net and technology services  16,483   228,229   —   244,712   16,334   214,614   —   230,948 
    Interest and dividends income  208,113   4,945   —   213,058   175,283   4,940   —   180,223 
    Brokerage, exchange, clearance fees and payments for order flow, net  (241,838)  (48,748)  —   (290,586)  (222,791)  (45,202)  —   (267,993)
    Interest and dividends expense  (247,288)  (2,433)  —   (249,721)  (208,431)  (1,663)  —   (210,094)
    Adjusted Net Trading Income $559,242  $192,711  $—  $751,953  $471,050  $180,713  $—  $651,763 
     

    Financial Condition

    As of June 30, 2024, Virtu had $716.7 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,766.8 million.

    On June 21, 2024 ("Credit Agreement Closing Date"), the Company completed issuance of a $1.2 billion senior secured first lien term loan due in 2031. The credit agreement provides (i) a senior secured first lien term loan in an aggregate principal amount of $1.2 billion, drawn in its entirety on the Credit Agreement Closing Date, and (ii) a $300.0 million senior secured first lien revolving facility. On June 21, 2024, the Company also completed issuance of $500 million senior secured first lien notes due in 2031. The proceeds of the term loan and the notes were used to repay all amounts outstanding under the prior $1.7 billion first lien term loan facility.

    Share Repurchase Program

    Since inception of the program in November 2020 through settlement date July 12, 2024, the Company repurchased approximately 47.2 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,181.4 million. Including the additional $500 million authorization by its Board on April 24, 2024, the Company has approximately $538.6 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 2024 financial performance today, July 18th, at 8:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

    Website Information

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

    Non-GAAP Financial Measures and Other Items

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

    • “Adjusted Net Trading Income”, which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.
    • “EBITDA”, which measures our operating performance by adjusting Net Income to exclude Financing interest expense on 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
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except share and per share data)  2024   2023   2024   2023 
             
    Revenues:        
    Trading income, net $426,395  $306,168  $834,490  $718,679 
    Interest and dividends income  107,066   97,979   213,058   180,223 
    Commissions, net and technology services  126,101   109,504   244,712   230,948 
    Other, net  33,423   (6,797)  43,564   (2,617)
    Total revenues  692,985   506,854   1,335,824   1,127,233 
             
    Operating Expenses:        
    Brokerage, exchange, clearance fees and payments for order flow, net  150,787   122,471   290,586   267,993 
    Communication and data processing  59,327   56,959   117,509   113,771 
    Employee compensation and payroll taxes  105,716   95,557   206,539   198,994 
    Interest and dividends expense  123,693   112,493   249,721   210,094 
    Operations and administrative  22,061   25,491   44,407   49,790 
    Depreciation and amortization  16,078   15,913   32,154   31,261 
    Amortization of purchased intangibles and acquired capitalized software  12,153   16,020   26,840   32,040 
    Termination of office leases  16   (146)  33   (50)
    Debt issue cost related to debt refinancing, prepayment and commitment fees  24,279   1,771   25,973   3,948 
    Transaction advisory fees and expenses  60   8   195   23 
    Financing interest expense on long-term borrowings  23,430   24,850   46,662   49,138 
    Total operating expenses  537,600   471,387   1,040,619   957,002 
             
    Income before income taxes and noncontrolling interest  155,385   35,467   295,205   170,231 
    Provision for income taxes  27,268   5,923   55,780   30,605 
    Net income $128,117  $29,544  $239,425  $139,626 
             
    Noncontrolling interest  (61,531)  (12,842)  (117,022)  (65,044)
             
    Net income available for common stockholders $66,586  $16,702  $122,403  $74,582 
             
    Earnings per share:        
    Basic $0.71  $0.16  $1.30  $0.73 
    Diluted $0.71  $0.16  $1.30  $0.73 
             
    Weighted average common shares outstanding        
    Basic  88,137,799   94,973,489   88,568,461   96,376,926 
    Diluted  88,358,223   94,973,489   88,671,329   96,376,926 
             
    Comprehensive income:        
    Net income $128,117  $29,544  $239,425  $139,626 
    Other comprehensive income        
    Foreign exchange translation adjustment, net of taxes  436   2,527   (3,090)  4,175 
    Net change in unrealized cash flow hedges gains, net of taxes  (12,910)  8,202   (11,363)  (4,966)
    Comprehensive income $115,643  $40,273  $224,972  $138,835 
    Less: Comprehensive income attributable to noncontrolling interest  (56,252)  (17,189)  (110,907)  (64,724)
    Comprehensive income available for common stockholders $59,391  $23,084  $114,065  $74,111 


    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)  2024   2023   2024   2023 
             
    Reconciliation of Trading income, net to Adjusted Net Trading Income        
    Trading income, net $426,395  $306,168  $834,490  $718,679 
    Commissions, net and technology services  126,101   109,504   244,712   230,948 
    Interest and dividends income  107,066   97,979   213,058   180,223 
    Brokerage, exchange, clearance fees and payments for order flow, net  (150,787)  (122,471)  (290,586)  (267,993)
    Interest and dividends expense  (123,693)  (112,493)  (249,721)  (210,094)
    Adjusted Net Trading Income $385,082  $278,687  $751,953  $651,763 
             
    Reconciliation of Net Income to EBITDA and Adjusted EBITDA        
    Net income  128,117   29,544   239,425   139,626 
    Financing interest expense on long-term borrowings  23,430   24,850   46,662   49,138 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  24,279   1,771   25,973   3,948 
    Depreciation and amortization  16,078   15,913   32,154   31,261 
    Amortization of purchased intangibles and acquired capitalized software  12,153   16,020   26,840   32,040 
    Provision for income taxes  27,268   5,923   55,780   30,605 
    EBITDA $231,325  $94,021  $426,834  $286,618 
    Severance  1,476   1,265   2,961   3,910 
    Transaction advisory fees and expenses  60   8   195   23 
    Termination of office leases  16   (146)  33   (50)
    Other  (33,318)  10,671   (42,665)  7,204 
    Share based compensation  17,963   16,171   32,996   31,754 
    Adjusted EBITDA $217,522  $121,990  $420,354  $329,459 
             
    Selected Operating Margins        
    GAAP Net income Margin (1)  18.5%  5.8%  17.9%  12.4%
    Non-GAAP Net income Margin (2)  33.3%  10.6%  31.8%  21.4%
    EBITDA Margin (3)  60.1%  33.7%  56.8%  44.0%
    Adjusted EBITDA Margin (4)  56.5%  43.8%  55.9%  50.5%
             
    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
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except share and per share data)  2024   2023   2024   2023 
             
    Reconciliation of Net Income to Normalized Adjusted Net Income        
    Net income $128,117  $29,544  $239,425  $139,626 
    Provision for income taxes  27,268   5,923   55,780   30,605 
    Income before income taxes and noncontrolling interest $155,385  $35,467  $295,205  $170,231 
    Amortization of purchased intangibles and acquired capitalized software  12,153   16,020   26,840   32,040 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  24,279   1,771   25,973   3,948 
    Severance  1,476   1,265   2,961   3,910 
    Transaction advisory fees and expenses  60   8   195   23 
    Termination of office leases  16   (146)  33   (50)
    Other  (33,318)  10,671   (42,665)  7,204 
    Share based compensation  17,963   16,171   32,996   31,754 
    Normalized Adjusted Net Income before income taxes $178,014  $81,227  $341,538  $249,060 
    Normalized provision for income taxes (1)  42,723   19,495   81,969   59,772 
    Normalized Adjusted Net Income $135,291  $61,732  $259,569  $189,288 
             
    Weighted Average Adjusted shares outstanding (2)  162,305,397   168,831,964   162,566,398   170,085,629 
             
    Normalized Adjusted EPS $0.83  $0.37  $1.60  $1.11 
             
    (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 the 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 six months ended June 30, 2024 and 2023.


    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Financial Condition (Unaudited)
     
    (in thousands, except share data) June 30,
    2024    		 December 31,
    2023
         
    Assets    
    Cash and cash equivalents $684,806  $820,436 
    Cash and securities segregated under regulations and other  31,857   35,024 
    Securities borrowed  1,918,973   1,722,440 
    Securities purchased under agreements to resell  793,292   1,512,114 
    Receivables from broker-dealers and clearing organizations  900,456   737,724 
    Receivables from customers  124,769   106,245 
    Trading assets, at fair value  7,329,430   7,358,611 
    Property, equipment and capitalized software, net  95,076   100,365 
    Operating lease right-of-use assets  200,926   229,499 
    Goodwill  1,148,926   1,148,926 
    Intangibles (net of accumulated amortization)  226,819   257,520 
    Deferred taxes  125,183   133,760 
    Assets of business held for sale  3,052   — 
    Other assets  341,949   303,720 
    Total assets  13,925,514   14,466,384 
         
    Liabilities and equity    
    Liabilities    
    Short-term borrowings, net  73,692   — 
    Securities loaned  1,557,661   1,329,446 
    Securities sold under agreements to repurchase  1,072,043   1,795,994 
    Payables to broker-dealers and clearing organizations  840,701   1,167,712 
    Payables to customers  58,708   23,229 
    Trading liabilities, at fair value  6,287,382   6,071,352 
    Tax receivable agreement obligations  196,254   216,480 
    Accounts payable and accrued expenses and other liabilities  423,976   451,293 
    Operating lease liabilities  248,217   278,317 
    Long-term borrowings, net  1,738,056   1,727,205 
    Total liabilities  12,496,690   13,061,028 
         
    Total equity  1,428,824   1,405,356 
         
    Total liabilities and equity $13,925,514  $14,466,384 
         
      As of June 30, 2024
    Ownership of Virtu Financial LLC Interests: Interests %
    Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units  92,731,239   57.4%
    Non-controlling Interests (Virtu Financial LLC)  68,699,738   42.6%
    Total Virtu Financial LLC Interests  161,430,977   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 recent SEC proposals 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


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