Virtu Financial - Earnings Call - Q3 2025

Executive Summary

• Q3 2025 printed solid results with Normalized Adjusted EPS of $1.05, above S&P Global consensus $0.93* on strong Market Making and continued VES momentum; Adjusted Net Trading Income (ANTI) was $467.0M and Adjusted EBITDA $267.8M with 57.3% margin. EPS beat and management’s clear pivot to growth were the key positive narratives this quarter.
• Sequentially, activity normalized from a very strong Q2: total revenues fell to $824.8M (from $999.6M), ANTI to $467.0M (from $567.7M), and Adjusted EBITDA to $267.8M (from $369.4M), compressing margins; YoY comparisons remained positive across revenue, ANTI and EBITDA.
• Strategy pivot: management will prioritize scaling trading capital, talent, and infrastructure to drive ANTI toward the higher end of the historic $6–$10M/day framework; they have already raised >$500M of new trading capital in 2025 and reported a 95% incremental return on capital, implying high reinvestment returns.
• Capital return cadence shifting: dividend maintained at $0.24/share, but buybacks dialed back ($20.9M in Q3 vs $66.3M in Q2) as capital is reallocated to growth opportunities; remaining repurchase authorization ~$302.8M.

What Went Well and What Went Wrong

• What Went Well

  • EPS beat and resilient profitability: Normalized Adjusted EPS $1.05 vs S&P Global $0.93*; Adjusted EBITDA $267.8M with a 57.3% margin and YoY increase in EBITDA and ANTI.
  • Broad-based strength and VES momentum: “ANTI was $467M, or $7.4M per day,” with Market Making $5.4M/day and VES $1.9M/day; VES delivered its “best quarter since early 2021” and its “sixth consecutive quarter of increased ANTI”.
  • Strategic clarity and high-return reinvestment: Management is “ready to focus on growing…through investing in…infrastructure, acquiring talent, and expanding our capital base,” aiming to “trend toward the higher end” of $6–$10M/day; >$500M new trading capital raised and “95% incremental return on…capital” underscored attractive deployment opportunities.

• What Went Wrong

  • Sequential normalization: Revenues declined to $824.8M (from $999.6M), ANTI to $467.0M (from $567.7M), and Adjusted EBITDA to $267.8M (from $369.4M) as the environment cooled from Q2 highs, compressing Adjusted EBITDA margin to 57.3% (from 65.1%).
  • Market Making deceleration vs Q2: Market Making ANTI fell to $344.1M from $451.5M; an analyst noted 605 spread opportunity down ~3% QoQ while Market Making revenue declined more; management pointed to mix and strength across crypto, commodities and broader operations beyond retail.
  • Capital returns taper: Buybacks fell to $20.9M (0.5M shares) from $66.3M in Q2 as the firm prioritizes funding growth, a headwind for near-term share-count reduction.

Transcript

Operator (participant)

Hello everybody, and welcome to the Virtu Financial third quarter 2025 earnings call. My name is Elliot, and I'll be coordinating your call today. If you would like to register a question during today's event, please press star one on your telephone keypad. Now, I'll hand over to Andrew Smith, Head of Investor Relations. Please go ahead.

Andrew Smith (Head of Investor Relations)

Thank you, Elliot, and good morning everyone. Thank you for joining us. Our third quarter 2025 results were released this morning and are available on our website. With us today this morning, we have Mr. Aaron Simon, our Chief Executive Officer, Mr. Joseph Molluso, our Co-President and Co-Chief Operating Officer, and Ms. Cindy Lee, our Chief Financial Officer. We'll begin with prepared remarks and then take your questions. First, a few reminders. Today's call may include forward-looking statements which represent Virtu Financial's current belief regarding future events and are therefore subject to risks, assumptions, and uncertainties which may be outside the company's control. Please note that our actual results and financial conditions may differ materially from what is indicated in these forward-looking statements.

It is important to note that any forward-looking statements made on this call are based on information presently available to the company, and we do not undertake to update or revise any forward-looking statements as new information becomes available. We refer you to disclaimers in our press release and encourage you to review the description of risk factors contained in our annual report, Form 10-K, and other public filings. During today's call, in addition to GAAP measures, we may refer to certain non-GAAP measures including adjusted net trading income, adjusted net income, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP measures should be considered as supplemental to and not as superior to financial measures as reported in accordance with GAAP.

We direct listeners to consult the investor portion of our website where you'll find additional supplemental information referred to on this call, as well as a reconciliation of non-GAAP measures to the equivalent GAAP term in the earnings materials, with an explanation of why we deem this information meaningful, as well as how management uses these measures. With that, I'd like to turn the call over to Aaron.

Aaron Simon (CEO)

Thanks, Andrew. Good morning. Let me begin by noting this quarter's prepared marks are brief in order to leave more time for questions. As usual, all relevant performance data are included in our earnings release and supplemental material. Before I turn it over to Cindy to discuss our results, I just wanted to make a few high-level marks to orient everyone as the company's direction moving forward. Over the past several years, we've completed major integrations, established trading in new asset classes, and returned significant capital to shareholders. Our edge in the market is created by our technology, our risk management, and our operational efficiency. Additionally, as a business, we carry over our attention to detail to expense management, as well as our client relationships. None of that is changing.

However, now we feel ready to focus on growing our trading results through investing in our infrastructure, acquiring talent, and expanding our capital base. Importantly, this will not be limited to a small number of previously highlighted growth initiatives, rather an overall focus on growth everywhere in the firm. You may recall in the past we have provided earning scenarios at different levels of adjusted net trading income in the range of $6 million-$10 million per day, and our goal is to grow our business to trend toward the higher end of this range as a base case. Just on a personal note, I took over the role of CEO on August 1st, almost exactly 17 years after first starting at Virtu. An unbelievable amount has changed since then, and somehow now is always the most exciting time to be a part of this company.

With that, I'd like to turn it over to Cindy for details on this quarter's performance.

Cindy Lee (CFO)

Thank you, Aaron. Good morning, everyone. Turning to this quarter's results, the firm reported normalized adjusted EPS of $1.05. Adjusted net trading income, or ANTI, was $467 million, or $7.4 million per day, predominantly driven by a positive operating environment, which has persisted for most of the year, as well as a renewed focus on growth. Market making reported ANTI of $344 million, or $5.4 million per day, driven by strong performance across all businesses, particularly global equities, crypto, and currencies and commodities. We're also seeing continued momentum in Virtu Execution Services and are excited about our work expanding the VES product set to include multi-asset class capabilities. VES reported ANTI of $123 million, or $1.9 million per day, marking its best quarter since early 2021 and its sixth consecutive quarter of increased ANTI.

Earlier this year, we noted a goal of $2 million per day through the cycle for VES. We're encouraged by VES performance and consistent quarter-on-quarter growth regardless of the environments. VES offers market-leading financial trading products globally across the entire lifecycle of a trade. Notably, VES has a suite of workflow and analytics products led by Tryon, which was recently awarded the top spot in The Trade's 2025 EMS survey for the third year in a row. These products represent a strong embedded base of revenue. On a trailing 12-month basis, the workflow and analytics business generated $137 million of ANTI. In terms of legacy revenue disclosures, we achieved strong results on our existing growth initiatives, which delivered ANTI per day that was slightly ahead of the prior quarter.

While the areas included within the existing growth initiatives are important and represent businesses that have grown meaningfully over the years, we will look to grow more rapidly in all areas of our business. While we will, of course, maintain our annual dividend, we will seek to grow our capital base to take advantage of the trading opportunities as they arise. Now we can turn it over for Q&A.

Operator (participant)

Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. First question comes from Patrick Moley with Piper Sandler. Your line is open. Please go ahead.

Patrick Moley (Senior Research Analyst)

Yeah, thanks. Good morning and welcome, Aaron. Really looking forward to working with you. I have a two-part question. First, I appreciate all the disclosure around the focus shifting to growth opportunities. I was hoping you could break that down for us a little bit more and maybe speak to some of the areas where you see the most significant opportunity for growth, how much of that's going to be expanding into existing areas where you already have a presence versus entirely new opportunities. As a second part, you mentioned in the deck that you'll look to dial back share repurchases in order to build more capital. I was hoping you could flesh out for us maybe how much capital you could potentially be looking to build and what that means for your longer-term capital return priorities. Thanks.

Aaron Simon (CEO)

Sure. Thanks, Patrick. I think it's hard to predict in advance. We've always been a firm that reacts to the opportunity that's in front of us. Currently, I think there's a pretty good growth opportunity everywhere in the firm. Obviously, the areas that we've highlighted previously, like crypto options and ETF block, continue to be fast-growing areas, especially given the environment. You'll probably continue to see growth there. In terms of the additional capital, I think we provided in the supplemental materials already in 2025, through retained earnings as well as debt financing. We've raised over $500 million of new trading capital, which has already been immediately deployed. In terms of a long-term plan, we want to significantly grow the P&L. If you look at our return on capital rates, they've always been in the upper 60%-100% return on capital.

If we want to double the P&L of the firm, we're probably going to have to double the capital base. That's a long-term plan. It may take a few years. If you look at the reports of the free cash flow that the business generates, I think there's pretty significant opportunity to just accumulate that organically over time. We've always been incremental in our approach to growing, and we'll just continue to do that.

Patrick Moley (Senior Research Analyst)

Okay. Thank you, Aaron. That's it for me.

Operator (participant)

We now turn to Alex Blostein with Goldman Sachs. Your line is open. Please go ahead.

Alex Blostein (Senior Analyst)

Hey, thank you, guys. Good morning and Aaron Simon. Welcome to the call. I would love to get just a little bit more meat around those bones. Obviously, it sounds like it's a bit of a pivot in the strategy. I guess a multi-part question on this, but I guess first is why now? What prevented Virtu Financial in the past going after these opportunities that you feel like this is the right time to sort of do this today? When you think about the existing asset classes, you know, you spoke about obviously the newer things, whether it's digital and crypto or options. We know you guys have been on the path for a while. When you think about the traditional kind of market-making businesses that you're already in, do you see an opportunity to accelerate market share gain within that as well?

What would it take, I guess, for you guys to do that?

Aaron Simon (CEO)

Yeah, I can answer some of that. As to the why now question, there's not like a step change, but there's been a confluence of factors. Over the past several years, we've pulled off some pretty large integrations, a lot from a technical standpoint, some from a people cultural standpoint, added significant new business lines. Now that we sort of have a handle on that and things are coming to an end, we're able to refocus some of our talent base on attacking new opportunities. That's certainly part of it. The world hasn't gotten quieter. There's definitely just been an uptick in overall external opportunity. We just sort of feel it's the right time. I think the employees are excited about refocusing on growth. In terms of the areas, obviously the ones I highlighted, but yes, in our core businesses, there's definitely room to grow.

One of the things that we've always done right is that our platform is scaled. It operates the same way everywhere in the world. It's sort of easy for us to redeploy to new asset classes with flexibility and compete technologically in any market. When you say our core business, even that encompasses many different types of trades in different areas. There's always interesting new corners of the markets. There's always sort of idiosyncratic opportunities in ETF trades or foreign markets or commodities. We're always just going to try to adapt to what's in front of us and just focus on our process.

Joseph Molluso (Co-President and Co-COO)

You know, Alex, I would just add to that. This is Joe. The areas that we always outlined as growth continue to be growth areas, right? We've given that number. I think the pivot here is, as you describe it, is really to include options. It includes cryptocurrency. It includes ETF block trading. It includes rates. It doesn't exclude other areas of our business, right? I think we put in the supplement the capital management priority slide, and this is a little bit to Patrick's question as well, right? We have shown, and this is the management team that's been here, right? We have shown a long-term track record that demonstrates that we know how to manage capital, right? We have a long-term track record of managing capital. We have a long-term track record of integrating acquisitions. We have a long-term track record of operating a scaled business.

We have a long-term track record of growing in select businesses, right? I think with Aaron at the helm, I think there's a set of opportunities that are, you know, that we all agree are getting bigger, right? That includes a lot of the things that I'm sure we'll talk about on this call. We didn't want it to sort of look at it as being limited to just a handful of things that we've talked about in the past as growth initiatives.

Alex Blostein (Senior Analyst)

Right. As an addition to capital, do you guys anticipate there is a larger OpEx lift that this will be required, or do you think you can largely leverage the existing footprint? The incremental revenues presumably will come in at a fairly high incremental margin?

Joseph Molluso (Co-President and Co-COO)

There should be a, you should still see very strong positive operating leverage in our business. That doesn't mean that, you know, we won't need to, you know, attract top talent, retain top talent. You know, that doesn't mean that we're committed to, you know, a particular ratio of comp to net revenue that we've had in the past. I think it'll still be reasonable. It'll look more like the past than not. I think, you know, if it grows, it's going to grow because we're experiencing very high levels of positive operating leverage, good growth. I think there's no big bang here. As Aaron said, right, we've always been incremental, and we'll continue to be incremental.

Alex Blostein (Senior Analyst)

I got you. Great. Thank you.

Operator (participant)

We now turn to Eli Abboud with Bank of America. Your line is open. Please go ahead.

Eli Abboud (Equity Research Analyst)

Good morning. Thanks for taking the question. Aaron, congrats on the new role. Craig and I look forward to working with you. You highlighted options as an area where there will be a larger focus on growth going forward. I was wondering if you have a timeline in mind for when Virtu Financial can start customer market making in options. Is that a near-term 2026 objective or more of a 5 or even 10-year target? Could M&A be part of your roadmap in options?

Aaron Simon (CEO)

I don't think we're in the business specifically with the goal of doing customer market making 605. If we get to the point where our business is scaled and more profitable, then we have the infrastructure and the relationships where we'd love to get into that business. Really, our focus is on just being, you know, excellent at trading options. We're focused on that, and where it leads is where it leads.

Joseph Molluso (Co-President and Co-COO)

Yeah. Eli, in terms of M&A, it goes back to the answer on capital management priorities. I think if you look at our history, we used leverage and our capital to execute two very highly accretive, important acquisitions to what Virtu Financial is today. We used our capital to buy back our shares when we thought they were undervalued. We're using our capital today to grow. Should an opportunity present itself where the returns that we can get from an M&A deal are superior to what we have looking in front of us, then we'll explore it. I think we've got a track record of doing that prudently and not paying. I think if you look at the acquisitions we've done, we've bought volatility at very low prices. I think the purchase price going in was attractive. The execution was excellent in terms of value creation and synergies.

There's nothing that we're looking at today that competes with Aaron's plan to grow revenue. Therefore, our incremental capital dollar is going to growing the business. We're always here to create shareholder value and allocate capital to do that.

Eli Abboud (Equity Research Analyst)

Got it. For our follow-up, can you hit on the revenue capture in the market making segment this quarter? Your 605 quoted spread opportunity declined 3% sequentially, but your market making revenue fell 26% sequentially. I was like, how should we reconcile that delta there?

Joseph Molluso (Co-President and Co-COO)

It is always good to kind of look at that. I think there's a great focus on the retail business. Some very smart guys in a research report yesterday wrote that we sit downstream from a long-term secular trend in retail, and we agree with that. The way we look at it is we perform well against the opportunity overall. Yes, those indicators were down. The volumes of volatility, as well as the 605 reports, showed declining activity. We're very happy about how we performed. I think I mentioned that focus on retail because if you look at our performance this quarter overall, there's always this hyper focus on retail, but our business is a lot broader, right? We have a global operation in multiple asset classes around the world. We did very well in crypto. We did very well in our proprietary market making business, in commodities, for example.

We haven't talked about Virtu Execution Services, right? I think if you look at us, there's this hyper focus on retail for good reason, but there's a lot more there.

Eli Abboud (Equity Research Analyst)

Perfect. Thanks, guys.

Operator (participant)

We now turn to Chris Allen with Citi. Your line is open. Please go ahead.

Chris Allen (Managing Director and Senior Analyst)

Yeah, morning, guys. Thanks for taking the question. I wanted to ask on the third quarter results. I think in general, people, the results were up or form expectations given the environmental realized volatility. I'm just wondering, obviously, raising capital during the quarter, you noted that it's been deployed. What impact that had? Any color just on the sequential improvement in the organic growth initiatives or opportunities, where there were, where the best tailwinds this past quarter?

Joseph Molluso (Co-President and Co-COO)

Yeah, look, again, I think if you, it's a difficult question to answer what impact did the new capital have? In terms of the debt raise, I think the debt raise was September 23rd, so that was pretty much towards the end of the quarter. You know, on slide four of the supplement, you see we earned a 95% incremental return on our capital. My answer would be, any incremental dollar that we deployed this quarter, we earned a 95% return on. That includes the capital from the beginning of the year. In terms of the performance and what to highlight, I think we mentioned already, I think crypto was standout and we expect that to continue. We had a strong performance in options. We had a strong quarter in ETF block.

I think all of the things that we've included as growth initiatives were above where we were in the second quarter, just a little bit. It was all the above, Chris. Again, I'll mention VES, right? VES is showing you grow through different environments. Steve Cavoli has done an amazing job there, and that business is set up for success.

Chris Allen (Managing Director and Senior Analyst)

Just as a follow-up, when we think about increased capital deployment moving forward, is it, are you thinking about developing new strategies for attacking some of the existing businesses, or is this just putting capital to work with your existing strategies?

Joseph Molluso (Co-President and Co-COO)

You know, it's all the above. I'll make sure I want to point out, say that we're not looking at taking on more risk. I think everything is within the risk parameters that we've historically been comfortable with in terms of Virtu Financial as a market participant, as a liquidity provider, as a service provider. You may know it's mainly leveraging our existing infrastructure and connectivity, but we will have more capital to deploy. We'll have incremental talent to develop strategies, and that's really how I'd describe it.

Chris Allen (Managing Director and Senior Analyst)

Thanks.

Operator (participant)

We now turn to Dan Fannon with Jefferies. Your line is open. Please go ahead.

Dan Fannon (Research Analyst)

Thanks. Good morning. I just wanted to clarify a few things. As we think about Virtu Financial's strategy over the last couple of years, we've seen more consistent results and less kind of peak and trough. Given this change in putting more capital to work, do you expect to see more variability in the quarter-to-quarter revenue and/or ANTI, EBITDA, however you want to think about it, given as the opportunity set changes, or is this going to drive more consistent results? I guess, what's the goal here?

Joseph Molluso (Co-President and Co-COO)

The goal is, as Aaron stated, to move to the higher end of the range that we published in the past of different levels of net trading income, right? That's always been a difficult question to answer for Virtu Financial because you've got to give me a time parameter, right? If you're talking about daily or weekly, maybe. If you're talking about monthly, maybe. If you're talking about quarterly, it really depends, Dan. I think Aaron stated it clearly, right? The goal is to move towards the high end of that range. It's a trend toward it, as a base case, right? There could be more variability, but I don't consider that being sort of less predictable or less volatile even, right? We're a volatile business, and we're going to remain a volatile business. I don't think of us in the past. It's interesting to hear you say that.

I don't think of us in the past year or two as being less volatile. I think we've just done a good job growing the business, and now we're going to accelerate that growth.

Dan Fannon (Research Analyst)

Okay. Just to clarify some of the other questions. As we think about now you're deploying more capital today, you're going to, you know, obviously accrue more capital. Where do we think about the level of investment? Level of investment will go with the revenue opportunity. We don't need to invest today more based upon having more capital wanting to do more. Just want to understand the timing of new investment in terms of people's strategies, all these things versus the revenue opportunity. Are those in line with each other, or one comes before the other?

Joseph Molluso (Co-President and Co-COO)

Mostly in line, Dan. There's no long-term lag here, I would say. Now that all being said, as I just answered your previous question, we're still a volatile business, and the environment is still going to have a big impact on our performance. It's going to be hard to separate the noise there in terms of the environment versus the impact of incremental talent, incremental capital. It's the age-old question for us. I think long-term, up and to the right, moving towards the high end of that range. There'll be noise quarter to quarter for sure. None of it, as a plan, requires a multi-year sort of investment before you start seeing results. It's not instant, but it should largely be in line.

Dan Fannon (Research Analyst)

Understood. Okay, thank you.

Operator (participant)

As another reminder, if you'd like to ask a question, please press star one on your telephone keypad now. We now turn to Ken Worthington with J.P. Morgan. Your line is open. Please go ahead.

Ken Worthington (Stock Analyst)

Hi. Good morning. Thanks for taking the question. The stock price has dropped a lot more recently. You've clearly highlighted routine earning growth strategies are the priority. How do opportunistic buybacks play into capital management when you see big declines in the stock price like we've seen more recently?

Joseph Molluso (Co-President and Co-COO)

Ken I think we have stated that the opportunity in front of us allows for the highest invested use of our incremental capital dollar. The best way, you know, our jobs every day as managers of the business, is to increase the stock price and maximize the value. You know, putting dollars to work in the business, you know, Aaron, and we all determined is the best way to get the stock price to where we think it should be. For a very long time, we were trading at levels that we thought the incremental dollar was best spent on our stock. We're not ruling anything out publicly in terms of we still have dry powder under the buyback authorization. Perhaps, as we have vesting shares from compensation plans, we may look to just sort of neutralize the impact of that so that we don't have share creep.

The direction is clear that our incremental dollars are going to be spent growing the business and in our trading capital base.

Ken Worthington (Stock Analyst)

Okay. Perfect. Made it crystal clear. Thank you. The other narrative that was sort of, you know, going around was tokenization. Maybe how is Virtu Financial positioned for an increase in tokenized assets moving on chain? What is your right to win? Will the infrastructure that you have need to change to support this sort of transition to tokenization? If so, maybe to the prior question, what sort of incremental investment is required if the world moves to more tokenized on-chain assets?

Aaron Simon (CEO)

Yeah, I can answer that. I think it fits with our current business. We're very active in many crypto markets around the world. A lot of them obviously are the centralized exchange model, but we do participate in some direct on-chain interactions. We're partnering with people in terms of various interesting initiatives. We're part of the Pitt Foundation. We're part of the Canton Network. We're always active in developing new interesting trading infrastructure. I think with regards to this and other sort of new opportunities, like everyone's talking about prediction markets, anything that is trading electronically and has sufficient depth of liquidity, we stand ready to make markets, and our technology is adaptable to all of those opportunities. We're excited about it.

Ken Worthington (Stock Analyst)

Great. Thank you.

Operator (participant)

We now turn to Michael Cypress with Morgan Stanley. Your line is open. Please go ahead.

Michael Cypress (Chief Financial Analyst)

Hey, good morning. Thanks for taking the question. I recall in the past that we heard that doubling the capital base wouldn't necessarily double earnings. Curious what's changed in that regard and what areas or what would be the top few areas that you anticipate allocating more capital toward. How might you rank order or prioritize that? Maybe you could touch upon some of the areas where you're looking to hire.

Joseph Molluso (Co-President and Co-COO)

Yeah. Again, Michael, I think we put a slide in the supplement. I think we have proven that we know how to allocate capital. We've proven that we're going to devote it to the highest and best use, whether it was acquisitions, integrating acquisitions, buying back our stock. I think in the past, we identified areas where we needed to grow and grew businesses that were zero to $100 million plus businesses, and increased our capital base. I think the markets evolve, and I think we're ready now. I mean, I think we probably weren't ready in the past, and we have the ability to do it given our infrastructure, our scaled infrastructure. We've got the team in place, and we have a new CEO who wants us to pivot to growth, and that's what we're doing.

Michael Cypress (Chief Financial Analyst)

In terms of the question around prioritizing areas that you're hiring.

Aaron Simon (CEO)

I mean, there's a lot of them, but yeah, we're aggressively hiring, you know, what you would call, you know, broadly developers. That's very important for our business. You know, it's a vague term, which I hate, but we're probably hiring a lot of quants. We're hiring, you know, traders. Basically, any aspect of the business. I think, just going back to the question, which I think Joseph Molluso said very well, but the previous comments, I think you have to take in the context. It's not the case that we could just, you know, if someone gifted us double the amount of capital tomorrow, that we could just, you know, turn it on and make twice the money. The comment is that, you know, yes, we can grow the earnings with more capital, but it requires a lot of hard work to do that. It requires more people.

It requires working on our strategies. It requires, you know, revamping, expanding our infrastructure. It's not like a magic machine where we can just dump more money in and get more money out. We're excited about doing the work and growing the business.

Michael Cypress (Chief Financial Analyst)

What areas do you expect to allocate that capital to more meaningfully than others? How do you think about prioritizing that? When you think about doubling the earnings, what areas do you think would be meaningfully contributing towards that?

Joseph Molluso (Co-President and Co-COO)

It will be flexible. It will be based in part on what is going on in the market. I think if you look at an area like cryptocurrency, where we've done very well, crypto is a fragmented market, which necessitates the need for more capital intensity because there's no settlement utility and there's multiple venues. ETF block trading is a big business that we've grown quite well. That, by its nature, is more capital intensive. It really depends on the end market. It depends on the characteristics of the end market. It depends on the prime brokers. It depends on the venues. It depends on the participants. It depends on the trading format. U.S. equities, 605 business is a very capital-efficient business, right?

We think we're going to grow everywhere, but the capital usage is going to go to areas where we think we can, where we need it, where we need it to grow, right? Areas like commodities, areas like foreign exchange, they're all different, depending on the end market, depending on the market structure. It just really depends on what's going on in the market and the sort of the nature of the end market.

Michael Cypress (Chief Financial Analyst)

Great. Thank you.

Operator (participant)

That's all the time we have for questions. I'll hand back to Aaron Simon for any final remarks.

Aaron Simon (CEO)

Thanks, everyone, for joining. Hopefully, this was informative and I look forward to seeing you in the next quarter.

Operator (participant)

Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.