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VF

Virtu Financial, Inc. (VIRT)·Q3 2025 Earnings Summary

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 .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
GAAP Total Revenues ($USD Millions)$837.9 $999.6 $824.8
Net Income ($USD Millions)$189.6 $293.0 $149.1
GAAP Diluted EPS ($)$1.08 $1.65 $0.86
Adjusted Net Trading Income (ANTI) ($USD Millions)$497.1 $567.7 $467.0
Adjusted EBITDA ($USD Millions)$319.9 $369.4 $267.8
Adjusted EBITDA Margin %64.4% 65.1% 57.3%
Normalized Adjusted EPS ($)$1.30 $1.53 $1.05

Segment breakdown (Q3 2025)

  • Total revenues by segment ($USD Thousands): Market Making $668,017; Execution Services $154,506; Corporate $2,266; Total $824,789 .
  • Adjusted Net Trading Income by segment ($USD Thousands): Market Making $344,129; Execution Services $122,886; Total $467,015 .

KPIs

  • ANTI/day: Total $7.4M/day; Market Making $5.4M/day; VES $1.9M/day .
  • Workflow & Analytics (TTM) ANTI: $137M .
  • Share repurchases: $20.9M; 0.5M shares in Q3 .
  • Dividend declared: $0.24/share (payable Dec 15, 2025; record Dec 1, 2025) .
  • Cash, cash equivalents & restricted cash: $755.4M; Long-term debt principal: $2,068.7M (9/30/25) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActionChange
Dividend per shareQuarterly$0.24 (declared for Q2 cycle) $0.24 (Dec 15 payable; Dec 1 record) Maintained
Share repurchase cadence (qualitative)OngoingQ2 buybacks $66.3M Q3 buybacks $20.9M, mgmt to dial back to build capital Lower
Capital base (trading capital)Multi‑year—“Seek to grow our capital base…trend toward higher end of $6–$10M/day; >$500M new trading capital raised YTD” New emphasis
Normalized tax rate (for non‑GAAP)Ongoing~24% ~24% Maintained
Revenue/EPS/OpEx guidance4Q/Annual—No formal quantitative guidance provided—

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Growth pivot and capital allocation——“Ready to focus on growing…investing in infrastructure, talent, and expanding capital base”; aim for high end of $6–$10M/day Upshift to growth
VES momentum——VES ANTI $1.9M/day; “best quarter since early 2021”; “sixth consecutive quarter of increased ANTI” Improving
Market Making breadth——Strength across equities, crypto, currencies, commodities Broadening
Operating leverage/OpEx—Adj. EBITDA margin 65.1% 57.3% margin; management still expects positive operating leverage over time Near-term compression
Tokenization/crypto——Active in crypto; on-chain participation; Canton Network, Pitt Foundation Increasing focus
Hiring/talent——“Aggressively hiring” developers, quants, traders Scaling teams
Regulatory/legal (disclosure)Forward-looking statement warns of regulatory risks Forward-looking statement warns of regulatory risks Forward-looking statement continues to flag regulatory risks Ongoing backdrop

Management Commentary

  • Strategic pivot: “We feel ready to focus on growing our trading results through investing in our infrastructure, acquiring talent, and expanding our capital base…goal is to…trend toward the higher end of [the] $6–$10M [ANTI/day] range as a base case” .
  • Segment performance: “ANTI was $467 million, or $7.4 million per day…Market making…$5.4 million per day…VES…$1.9 million per day…VES…best quarter since early 2021 and…sixth consecutive quarter of increased ANTI” .
  • Capital deployment: “In 2025…we’ve raised over $500 million of new trading capital…already…deployed” ; “we earned a 95% incremental return on our capital” .
  • Capital returns vs growth: “Incremental dollars are going to be spent growing the business and…trading capital base,” with buybacks available for offsetting vesting but de‑emphasized otherwise .
  • Tokenization/crypto: “We’re very active in many crypto markets…participate in some direct on‑chain interactions…part of the Canton Network…stand ready to make markets” .

Q&A Highlights

  • Capital allocation and returns: Management emphasized high incremental returns (95%) on capital and >$500M raised YTD to scale P&L; doubling earnings over time likely requires significantly more capital, paired with talent and strategy work rather than “a magic machine” .
  • Buybacks vs growth: Clear prioritization of investing in trading capital and growth initiatives over opportunistic repurchases, while maintaining flexibility for share issuance offset .
  • Variability vs consistency: Targeting higher base‑case ANTI/day but acknowledging inherent quarter‑to‑quarter volatility; expect results to trend up over time with “noise” from environment .
  • Market Making capture/mix: Despite a cited ~3% QoQ decline in 605 spread opportunity, performance reflected broader strengths beyond U.S. retail (crypto, commodities, global operations) .
  • Tokenization/tech: Infrastructure is adaptable to electronic markets with sufficient liquidity; active involvement in on‑chain initiatives positions Virtu for emerging venues .

Estimates Context

Metric (S&P Global basis)ConsensusActualSurprise
Normalized/Primary EPS ($)$0.93*$1.05*+12.6%*
Revenue ($)$418.4M*$623.7M*+49.1%*
# of EPS Estimates8*——
# of Revenue Estimates4*——
  • Note: S&P Global’s “Revenue” basis may differ from GAAP total revenues ($824.8M reported). GAAP figures are in the Financial Results section .
  • Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Virtu beat on EPS with strong profitability metrics while clearly signaling a pivot to reinvest for growth (capital, talent, infrastructure) to drive ANTI toward the high end of $6–$10M/day .
  • Sequential normalization from a peak Q2 was expected; YoY trends remain constructive, and mix breadth (equities, crypto, FX, commodities) supports multi‑asset earnings power .
  • High incremental ROC (95%) and >$500M of new trading capital already deployed provide a tangible underpinning for the growth plan; watch for capital base expansion and hiring as leading indicators .
  • Capital returns are tilting toward dividend maintenance ($0.24) with moderated buybacks ($20.9M in Q3 vs $66.3M in Q2) as capital is channeled to trading opportunities .
  • VES is compounding: best quarter since early 2021, six consecutive quarters of ANTI growth, and $137M TTM ANTI in workflow/analytics—an embedded, durable revenue base .
  • Monitoring items: margin trajectory (EBITDA margin 57.3% vs 65.1% in Q2), Market Making capture vs 605 opportunity, and evolving crypto/on‑chain venues where Virtu is active .
  • Trading implication: Near term, narrative should reward EPS beat and strategic clarity; medium term, delivery on ANTI/day trajectory and capital deployment returns will be key to multiple expansion .

References:

  • Q3 2025 8‑K/Press Release: results, non‑GAAP reconciliations, segments, dividend, repurchases, balance sheet .
  • Q3 2025 Earnings Call Transcript: strategy pivot, ANTI/day, segment color, capital allocation, tokenization .
  • Q3 2025 Press Release (duplicate of Exhibit 99.1): dividend, reconciliations, segments .
  • Prior quarters for trend: Q2 2025 PR ; Q1 2025 PR .