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1. Company Snapshot

1.a. Company Description

Virtu Financial, Inc., a financial services company, provides data, analytics, and connectivity products to clients worldwide.The company operates in two segments, Market Making and Execution Services.Its product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology.


The company's solutions enable clients to trade on various venues across countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income, cryptocurrencies, and other commodities.Its analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across markets.Virtu Financial, Inc.


was founded in 2008 and is headquartered in New York, New York.

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1.b. Last Insights on VIRT

Virtu Financial's recent performance was negatively impacted by rising expenses, which offset gains in trading and tech services. The company's Q2 earnings beat was overshadowed by increasing costs. Additionally, shareholder litigation law firm Kuehn Law's investigation into potential breaches of fiduciary duties by certain officers and directors added uncertainty. The company's deficient policies and procedures regarding information access barriers also raised concerns about regulatory scrutiny. Furthermore, a federal securities lawsuit alleging misrepresentation of operational and technological efficacy remains a concern.

1.c. Company Highlights

2. Virtu Financial's Q3 2025 Earnings: Strong Performance Across Segments

Virtu Financial reported normalized adjusted EPS of $1.05, beating estimates of $0.97, and adjusted net trading income (ANTI) of $467 million, or $7.4 million per day. The company's Market Making segment drove the strong performance, with ANTI of $344 million, or $5.1 million per day, fueled by global equities, cryptos, and currencies and commodities. The Virtu Execution Services (VES) segment also reported a strong ANTI of $123 million, or $1.9 million per day, marking its best quarter since early 2021.

Publication Date: Nov -02

📋 Highlights
  • Strong Q3 Performance:: Achieved normalized adjusted EPS of $1.05 and adjusted net trading income (ANTI) of $467 million ($7.4 million/day).
  • Market Making Segment Growth:: Reported ANTI of $344 million ($5.1 million/day), driven by gains in global equities, cryptos, and commodities.
  • VES Segment Record:: Generated ANTI of $123 million ($1.9 million/day), marking its best quarter since early 2021 and sixth consecutive increase.
  • Capital Deployment:: Raised over $500 million in new trading capital in 2025, targeting ANTI growth to the upper end of the $6–10 million/day range.
  • Growth Priorities:: Focused on infrastructure investment, talent acquisition, and capital expansion, with opportunities in crypto, ETF block, and tokenization.

Segment Performance

The Market Making segment's strong performance was driven by all businesses, particularly in global equities, cryptos, and currencies and commodities. VES, on the other hand, showed significant growth, marking its sixth consecutive quarter of increased ANTI. The company's growth initiatives, such as VES, demonstrated growth across different environments.

Capital Deployment and Growth Initiatives

Virtu Financial has raised over $500 million of new trading capital in 2025, which has been immediately deployed. The company plans to focus on growing its trading results through investing in infrastructure, acquiring talent, and expanding its capital base. The goal is to grow the business to trend toward the higher end of the $6 million to $10 million per day ANTI range. The company will maintain its annual dividend and seek to grow its capital base to take advantage of trading opportunities.

Valuation and Outlook

With a P/E Ratio of 1.59 and a P/B Ratio of 1.75, Virtu Financial's valuation appears reasonable. The company's ROE of 131.58% and ROIC of 14.15% indicate strong profitability. Analysts estimate next year's revenue growth at -1.4%, but the company's growth initiatives and capital deployment plans suggest potential for growth. The company's focus on organic growth, investing in infrastructure, and expanding its capital base positions it for long-term success.

Growth Opportunities and Risk Management

Virtu Financial sees potential in existing areas, such as crypto, options, and ETF block, as well as new opportunities. The company plans to accelerate market share gain in traditional market-making businesses. The company does not anticipate taking on more risk and will operate within its historical risk parameters. The capital deployment will be mostly in line with revenue opportunities, with no long-term lag.

3. NewsRoom

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Virtu Financial Recognized Across Multiple Categories at the 2025 Leaders in Trading Awards

Nov -20

Source: globenewswire.com

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Grant & Eisenhofer Files Class Action Lawsuit Against Citadel Securities LLC and Virtu Americas LLC

Nov -17

Source: businesswire.com

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Acadian Asset Management LLC Increases Stake in Virtu Financial, Inc. $VIRT

Nov -15

Source: defenseworld.net

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Virtu Financial Congratulates 2025 Women in Finance Award Recipients Gabriella Gambino and Julie Feng

Nov -12

Source: globenewswire.com

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Virtu Financial Q3 Earnings Beat on Strong Execution Services

Nov -04

Source: zacks.com

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Virtu Financial, Inc. $VIRT Shares Sold by State of New Jersey Common Pension Fund D

Oct -30

Source: defenseworld.net

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Virtu Financial, Inc. (VIRT) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Virtu Financial (VIRT) Tops Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.36%)

6. Segments

Market Making

Expected Growth: 10.47%

Virtu Financial's Market Making segment growth of 10.47% is driven by increased trading volumes, expansion into new markets, and strategic partnerships. Additionally, the company's proprietary trading technology and high-frequency trading strategies have improved market share and revenue. Furthermore, the growth is also attributed to the company's ability to navigate volatile market conditions and capitalize on opportunities in the fixed income and currency markets.

Execution Services

Expected Growth: 9.9%

Virtu Financial's Execution Services segment growth of 9.9% is driven by increasing market share in high-frequency trading, expansion into new markets, and growing demand for outsourced trading solutions. Additionally, the company's investments in technology and trading platforms have improved execution quality, attracting more clients and increasing trading volumes.

Corporate

Expected Growth: 10.27%

Virtu Financial's corporate segment growth of 10.27% is driven by increasing market making volumes, expansion of its trading platform, and growing demand for high-frequency trading. Additionally, strategic acquisitions, such as Investment Technology Group, have contributed to the segment's growth.

7. Detailed Products

Market Making

Virtu Financial provides market making services, which involves buying and selling securities to provide liquidity to the market, profiting from the bid-ask spread.

High Frequency Trading

Virtu Financial engages in high frequency trading, using powerful computers and sophisticated algorithms to rapidly execute trades, taking advantage of small price discrepancies across markets.

Proprietary Trading

Virtu Financial engages in proprietary trading, using its own capital to trade securities and profit from market movements.

Agency Trading

Virtu Financial provides agency trading services, executing trades on behalf of clients, without taking a position in the securities.

Risk Management

Virtu Financial provides risk management services, helping clients to identify and mitigate potential risks in their portfolios.

8. Virtu Financial, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Virtu Financial, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Customers

Virtu Financial, Inc.'s customers have limited bargaining power due to the company's strong market position and the lack of alternative providers of high-frequency trading services.

Bargaining Power Of Suppliers

Virtu Financial, Inc. has a diverse supplier base, and the company's suppliers have limited bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is high in the high-frequency trading industry, as new companies can easily enter the market with innovative technologies and business models.

Intensity Of Rivalry

The high-frequency trading industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 74.71%
Debt Cost 3.95%
Equity Weight 25.29%
Equity Cost 5.81%
WACC 4.42%
Leverage 295.43%

11. Quality Control: Virtu Financial, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oppenheimer

A-Score: 6.6/10

Value: 8.3

Growth: 4.0

Quality: 6.8

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Cohen & Company

A-Score: 6.1/10

Value: 7.5

Growth: 3.9

Quality: 3.2

Yield: 10.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Virtu Financial

A-Score: 5.9/10

Value: 5.4

Growth: 5.6

Quality: 4.8

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Westwood Holdings

A-Score: 5.8/10

Value: 5.3

Growth: 2.6

Quality: 6.2

Yield: 9.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Perella Weinberg

A-Score: 4.7/10

Value: 5.3

Growth: 2.8

Quality: 6.6

Yield: 4.0

Momentum: 4.5

Volatility: 4.7

1-Year Total Return ->

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Donnelley Financial Solutions

A-Score: 3.5/10

Value: 4.2

Growth: 4.6

Quality: 5.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.38$

Current Price

35.38$

Potential

-0.00%

Expected Cash-Flows