Virtu Financial : 2025 Q1 Earnings Supplement vF

Published: 2025-04-23 08:13:49 ET VIRT

First Quarter 2025

Earnings Supplement

reserved. Not to be reproduced

. Compliance #XXXX-XXXX

Performance Highlights

1Q 2025 Key Financials

Summary Recent Results

Normalized

Adj. Net Trading Income / Day1

Adj. NTI1

Adj. NTI/day1

Adj. EPS1

$497M

$8.3M

$1.30

$6.0M

$6.1M

$7.3M

$8.3M

1Q'24

2Q'24

3Q'24

4Q'24

1Q'25

Adj. EBITDA

Debt to LTM

Adj. EBITDA1

Margin1,2

Adj. EBITDA1

Normalized Adj. EPS1

$320M

64%

1.7x

$0.76

$0.83

$0.82

$1.14

$1.30

1Q'24

2Q'24

3Q'24

4Q'24

1Q'25

Commentary & Highlights

See endnotes at end of this supplement

Key Financial Metrics

Annual

Quarterly

FY 2024

FY 2025

($M)

2020

2021

2022

2023

2024

Total Adjusted Net Trading Income1

$2,271

$1,910

$1,468

$1,211

$1,598

$367

$385

$388

$458

$497

Daily Average Adj. NTI 1

$9.0

$7.6

$5.8

$4.8

$6.4

$6.0

$6.1

$7.3

$8.3

Market Making Adj. NTI1

$1,782

$1,428

$1,058

$847

$1,195

$274

$286

$288

$348

$382

Market Making Daily Average Adj. NTI 1

$7.0

$5.7

$4.2

$3.4

$4.8

$4.5

$5.5

$6.4

Market Making % of Total

78%

75%

72%

70%

75%

74%

76%

77%

Execution Services Adj. NTI1

$489

$482

$409

$364

$403

$93

$100

$110

$115

Execution Services Daily Average Adj. NTI 1

$1.9

$1.6

$1.5

$1.6

$1.5

$1.6

$1.7

$1.9

Execution Services % of Total

22%

25%

28%

30%

25%

26%

24%

23%

Adjusted Cash Operating Expenses1

$623

$609

$643

$679

$164

$168

$173

$174

$177

Total Adjusted Operating Expenses1

$690

$677

$675

$706

$745

$180

$184

$190

$191

$193

Adjusted EBITDA1

$1,648

$1,301

$859

$568

$919

$203

$218

$215

$284

$320

Adjusted EBITDA Margin 1,2

73%

68%

59%

47%

58%

55%

56%

55%

62%

64%

Long-Term Debt (at end of period)

$1,670

$1,630

$1,824

$1,752

$1,767

$1,750

$1,767

$1,769

$1,767

$1,768

Debt / LTM Adjusted EBITDA 1

1.0x

1.3x

2.1x

3.1x

1.9x

3.1x

2.7x

2.4x

1.9x

1.7x

Normalized Adjusted EPS1

$5.76

$4.57

$3.00

$1.84

$3.55

$0.76

$0.83

$0.82

$1.14

$1.30

Daily Average Adj. NTI1 Trend

Comparison

1Q 2025 v

4Q'24 1Q'24

+ 14%

+ 38%

+ 15%

+ 42%

+ 10%

+ 26%

+ 2%

+ 8%

+ 1%

+ 7%

+ 13%

+ 58%

+ 2 pts

+ 9 pts

+ 0%

+ 1%

+ 14%

+ 70%

$14M $12M $10M $8M $6M $4M $2M

$12.7M

$11.9M

$10.6M

$7.6M

$8.1M

$8.3M

$7.1M

$7.3M

$5.7M

$5.4M

$5.5M

$5.8M

$5.2M

$6.0M

$6.1M

$4.7M

83%

70%

79%

76%

$4.4M

$4.5M

$4.1M

77%

71%

68%

70%

77%

71%

70%

74%

76%

74%

72%

67%

69%

64%

75%

17%

29%

30%

21%

32%

30%

23%

24%

29%

28%

33%

26%

31%

30%

36%

25%

26%

24%

23%

1Q'20

2Q'20

3Q'20

4Q'20

1Q'21

2Q'21

3Q'21

4Q'21

1Q'22

2Q'22

3Q'22

4Q'22

1Q'23

2Q'23

3Q'23

4Q'23

1Q'24

2Q'24

3Q'24

4Q'24

1Q'25

See endnotes at end of this supplement

Execution Services

Market Making

Market Metrics

Annual

2020

2021

2022

2023

2024

Market Metrics (Average Daily)

Volume Metrics

US Equity Consolidated Volume (M shares)

10,926

11,404

11,875

11,054

12,197

US Equity Consolidated Notional Volume ($B)

$479

$565

$573

$516

$608

Virtu Rule 605 Executed Shares (M)1

727

805

606

552

554

Virtu Rule 605 Dollar Value of Quoted Spreads ($M)1

$10.1

$12.8

$7.2

$5.4

$6.6

IBKR Retail Equity Share Volume (M)

1,324

3,041

1,299

998

1,205

OCC ADV (M contracts)

CME FX ADV (K contracts)

861

798

989

962

1,030

Hotspot ADV FX ($B)

$35

$34

$40

$44

$46

Volatility Metrics

S&P 500 Average Implied Volatility (VIX)

29.3

19.7

25.6

16.8

15.5

S&P 500 Average Realized Volatility

30.5

13.0

24.0

12.9

12.5

S&P 500 Intraday Volatility

1.7%

1.0%

1.8%

1.0%

0.9%

SX5E Realized Volatility

30.2

14.8

22.7

13.6

13.1

NKY Realized Volatility

24.1

18.5

20.2

16.0

23.6

CVIX Realized Volatility

66.9

29.3

54.4

29.7

34.5

Quarterly

Comparison

FY 2024

FY 2025

1Q 2025 v

4Q'24

1Q'24

11,760

11,935

11,503

13,581

15,696

+ 16%

+ 33%

$625

$589

$586

$632

$733

+ 16%

+ 17%

540

513

551

612

743

+ 21%

+ 38%

$7.0

$6.1

$6.3

$7.1

$8.6

+ 22%

+ 24%

1,002

1,175

1,114

1,522

1,546

+ 2%

+ 54%

+ 13%

+ 27%

980

1,080

1,089

968

1,152

+ 19%

+ 17%

$45

$47

$44

$49

+ 13%

+ 10%

13.7

14.0

17.1

17.4

18.4

+ 6%

+ 34%

11.1

10.5

15.9

12.5

16.0

+ 28%

+ 44%

0.7%

0.9%

1.1%

0.8%

1.2%

+ 43%

+ 63%

10.3

12.8

16.4

12.8

15.3

+ 20%

+ 48%

17.2

16.3

43.7

16.8

16.3

- 3%

- 5%

32.3

39.0

36.9

30.0

34.8

+ 16%

+ 8%

See endnotes at end of this supplement

Non-customer market making business has significant opportunities for diversified growth

Options volumes continue to rise

ETP volumes have grown globally

OCC ADV

Global ETP Value Traded ADV

70M

300T

60M

250T

50M

200T

40M

150T

30M

100T

20M

10M

50T

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

Crypto remains a critical aspect of the marketplace

Recent volatility is akin to levels seen in late 2021

Bitcoin Volume & Market Cap

SPX Implied & Realized Volatility

$80B

$3.5T

$70B

$3.0T

$60B

$2.5T

$50B

$2.0T

$40B

$1.5T

$30B

$1.0T

$20B

$10B

$0.5T

Bitcoin Notional ADV (L)

Bitcoin Market Cap (R)

See endnotes at end of this supplement

Virtu Rule 605 Executed Shares

(Daily Average per Month)

1,400M

1,200M

1,000M

800M

600M

400M

200M

CAGR1:

~17%

ADV by Year

2018 256M

2019 258M

2020 727M

2021 805M

2022 606M

2023 552M

2024 554M

2025 743M

Even in 2023,

605 volumes were double pre-covid levels in 2018-2019

01 03 05 07 09 11 01 03 05 07 09 11 01 03 05 07 09 11 01 03 05 07 09 11 01 03 05 07 09 11 01 03 05 07 09 11 01 03 05 07 09 11 01

2018

2019

2020

2021

2022

2023

2024

2025

See endnotes at end of this supplement

2018_01

2018_03

2018_05

2018_07

2018_09

2018_11

2019_01

2019_03

2019_05

2019_07

2019_09

2019_11

2020_01

2020_03

2020_05

2020_07

2020_09

2020_11

2021_01

2021_03

2021_05

2021_07

2021_09

2021_11

2022_01

2022_03

2022_05

2022_07

2022_09

2022_11

2023_01

2023_03

2023_05

2023_07

2023_09

2023_11

2024_01

2024_03

2024_05

2024_07

2024_09

2024_11

2025_01

$5M

$10M

$15M

$20M

$25M

(Daily Average per Month)

Virtu Rule 605 Dollar

trading announced…

Zero commission

Value of Quoted Spreads

retail engagement post-pandemic

…creating a new baseline level of

Virtu Historical Growth Perspective

Track Record of Consistent Growth

CAGR2: ~12%

CAGR3:

~17%LTM 1Q25 Adj. EBITDA

Adj. EBITDA 1

ANTI / day 1

Market ADVs:

US Equity Shares (B)

Virtu Rule 605 Executed Shares (M)4

Virtu 605 Dollar Value of Quoted Spreads (M)4

S&P 500 Implied

Volatility (VIX)

S&P 500 Realized Volatility

$1,648M

$1,036M

$8.98M

$1,301M

$8.29M

$7.58M

$859M

$919M

$620M

$5.85M

$568M

$6.38M

$432M

$4.84M

$4.06M

$352M

$269M

$251M

$3.87M

$1.99M

$1.64M

$2.22M

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

1Q 2025

Median

6.9

7.4

6.6

7.3

7.0

10.9

11.4

11.9

11.1

12.2

15.7

10.9

208

255

253

256

258

727

805

606

552

554

743

552

$2.6

$2.8

$2.9

$3.6

$3.0

$10.1

$12.8

$7.2

$5.4

$6.6

$8.6

$5.4

16.7

15.8

11.1

16.6

15.4

29.3

19.7

25.6

16.8

15.5

18.4

16.7

15.0

12.5

6.7

15.8

12.4

30.5

13.0

24.0

12.9

12.5

16.0

13.0

See endnotes at end of this supplement

Virtu has Significant Earnings Power

Virtu

Through- the-Cycle Earnings

Organic

Growth

Capital

Management

Growth

Illustrative Range of Outcomes Based on 2024 Expense Base & 1Q25 Share Count

ANTI

Full Year

per Day1

ANTI1

Adj. EPS1,2

$5.0M

$ 1,250M

$1.88

$6.0M

$ 1,500M

$3.02

$7.0M

$ 1,750M

$4.16

$8.0M

$ 2,000M

$5.29

$9.0M

$ 2,250M

$6.43

$10.0M

$ 2,500M

$7.57

Daily Average Adj. NTI 3 from Organic Growth Initiatives

$787K

$916K

$643K

$612K

per day

$540K

$496K

per day

$162K

$257K

per day

FY 2018 FY 2019 FY 2020

FY 2021

FY 2022

FY 2023 FY 2024

1Q 2025

Illustrative Impact of Reduction in Share Count over 3 Years

ANTI

Target Available for

Adj. EPS after 3-Year

Adj. EPS Impact

% Impact

per Day1

Buybacks Annually4

Buyback Period1,5

after 3 Years1

$5.0M

$50M - $100M

$1.88

+ $0.00

+ 0%

$6.0M

$100M - $140M

$3.09

+ $0.07

+ 2%

$7.0M

$140M - $230M

$4.40

+ $0.24

+ 6%

$8.0M

$230M - $300M

$5.86

+ $0.56

+ 11%

$9.0M

$300M - $400M

$7.47

+ $1.04

+ 16%

$10.0M

$400M - $500M

$9.33

+ $1.76

+ 23%

buyback program commenced in Nov'20 6

See endnotes at end of this supplement

Capital Management

We continue to return capital to shareholders through dividends and share repurchases

Steady Payout in All Environments

Share Buybacks2,3

Dividends declared per share and Adjusted EPS1, quarterly

Shares outstanding and share repurchases, quarterly

$1.44

Weighted

4.5

198M

$1.30

Avg. Share

Count

192M

$1.14

4.0

Period-End

197M

196M

3.5

Share Count

$0.76

$0.83

$0.82

3.0

186M

178M

$0.74

171M

2.5

169M

167M

172M

164M

163M

$0.45

2.0

170M

168M

165M

162M

160M

$0.37

1.5

163M

Adj. EPS $0.24

$0.27

161M

159M

160M

Quarterly

1.0

Avg:

Dividend

Shares 0.5

3.7M

4.0M

3.9M

2.3M

2.7M

2.4M

2.0M

1.4M

1.7M

1.3M

1.4M

of $0.24

Repurchased

($34M) ($101M)($115M) ($76M) ($42M) ($49M) ($44M) ($36M) ($31M) ($48M) ($57M) ($48M)

FY19

FY20

FY21

FY22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

(Avg)

3Q20

4Q20

FY21

FY22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

Return on Invested Capital1,4

2,500

($M)

139%

Capital

2,000

107%

94%

Invested

91%

68%

69%

64%

66%

65%

1,500

77%

78%

Average

1,000

71%

500

Period

FY'19

FY'20

FY'21

FY'22

1Q'23

2Q'23

3Q'23

4Q'23

1Q'24

2Q'24

3Q'24

4Q'24

1Q'25

Average of LTM Invested Capital 1,4

LTM ANTI 1,5

LTM Return on Invested Capital 1,6

160%

140%

120%

100%

80%

60%

40%

20%

Return on Invested Capital (%)

See endnotes at end of this supplement

Disclaimer

Virtu Financial Inc. published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2025 at 12:11 UTC.