We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Virtu Financial (VIRT) Up 2.1% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Virtu Financial (VIRT - Free Report) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Virtu Financial due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Virtu Financial, Inc. before we dive into how investors and analysts have reacted as of late.
Virtu Financial Q3 Earnings Beat on Strong Execution Services
Virtu Financial reported third-quarter adjusted earnings per share (EPS) of $1.05, which beat the Zacks Consensus Estimate by 8.3%. The bottom line increased 28% year over year.
Adjusted net trading income of $467 million advanced 20.4% year over year. The top line surpassed the consensus estimate by 11.2%.
The strong quarterly results benefited from the improved commissions and technology services revenues. Strong performance in both the Market Making and Execution Services segments, driven by increased trading activity, also contributed to the upside. However, the upside was partly offset by an elevated expense level.
Virtu Financial’s Q3 Performance Details
Revenues from commissions, net and technology services rose 17.4% year over year to $154.5 million. The metric beat the Zacks Consensus Estimate and our model estimate of $150 million. Interest and dividend income of $127.4 million increased 1.7% year over year but missed the consensus mark and our estimate of $132.2 million.
Adjusted EBITDA was $267.8 million, which climbed 24.7% year over year and came higher than our estimate of $241 million. Adjusted EBITDA margin improved 190 basis points year over year to 57.3%.
Total operating expenses escalated 15.2% year over year to $644.8 million, higher than our estimate of $617 million. The year-over-year increase was due to higher net brokerage, exchange and clearance fees, payments for order flow, communication and data processing costs, employee compensation and payroll taxes, as well as interest and dividends expense.
Q3 Segmental Update
Market Making: Adjusted net trading income was $344.1 million in the third quarter, which climbed 19.5% year over year. The metric topped the Zacks Consensus Estimate of $307.4 million and our estimate of $304.2 million. The unit’s revenues climbed 15.8% year over year to $668 million, higher than the Zacks Consensus Estimate and our estimate of $633.9 million.
Execution Services: The unit recorded an adjusted net trading income of $122.9 million in the quarter under review, which advanced 22.8% year over year and surpassed our estimate of $110.8 million. Total revenues of $154.5 million rose 22.9% year over year and beat the consensus mark and our estimate of $138.2 million.
Financial Update (As of Sept. 30, 2025)
Virtu Financial exited the third quarter with cash and cash equivalents of $707.9 million, which tumbled 18.9% from the 2024-end level. Total assets of $21.3 billion increased from the figure of $15.4 billion at 2024-end.
Long-term borrowings, net, amounted to $2 billion, which increased from the figure of $1.7 billion as of Dec. 31, 2024. Short-term borrowings totaled $122 million.
Total equity of $1.7 billion rose 14.4% from the 2024-end level.
Share Repurchase & Dividend Update
Virtu Financial bought back 0.5 million shares worth $20.9 million in the third quarter of 2025. It had a leftover capacity of $302.8 million under its buyback authorization for future purchases.
VIRT announced a cash dividend of 24 cents per share. The dividend will be paid out on Dec. 15, 2025, to its shareholders of record as of Dec. 1.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 32.09% due to these changes.
VGM Scores
Currently, Virtu Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Virtu Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Virtu Financial is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Synchrony (SYF - Free Report) , a stock from the same industry, has gained 4.6%. The company reported its results for the quarter ended September 2025 more than a month ago.
Synchrony reported revenues of $4.72 billion in the last reported quarter, representing a year-over-year change of +2.4%. EPS of $2.86 for the same period compares with $1.94 a year ago.
For the current quarter, Synchrony is expected to post earnings of $1.99 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Synchrony. Also, the stock has a VGM Score of A.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Virtu Financial (VIRT) Up 2.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Virtu Financial (VIRT - Free Report) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Virtu Financial due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Virtu Financial, Inc. before we dive into how investors and analysts have reacted as of late.
Virtu Financial Q3 Earnings Beat on Strong Execution Services
Virtu Financial reported third-quarter adjusted earnings per share (EPS) of $1.05, which beat the Zacks Consensus Estimate by 8.3%. The bottom line increased 28% year over year.
Adjusted net trading income of $467 million advanced 20.4% year over year. The top line surpassed the consensus estimate by 11.2%.
The strong quarterly results benefited from the improved commissions and technology services revenues. Strong performance in both the Market Making and Execution Services segments, driven by increased trading activity, also contributed to the upside. However, the upside was partly offset by an elevated expense level.
Virtu Financial’s Q3 Performance Details
Revenues from commissions, net and technology services rose 17.4% year over year to $154.5 million. The metric beat the Zacks Consensus Estimate and our model estimate of $150 million. Interest and dividend income of $127.4 million increased 1.7% year over year but missed the consensus mark and our estimate of $132.2 million.
Adjusted EBITDA was $267.8 million, which climbed 24.7% year over year and came higher than our estimate of $241 million. Adjusted EBITDA margin improved 190 basis points year over year to 57.3%.
Total operating expenses escalated 15.2% year over year to $644.8 million, higher than our estimate of $617 million. The year-over-year increase was due to higher net brokerage, exchange and clearance fees, payments for order flow, communication and data processing costs, employee compensation and payroll taxes, as well as interest and dividends expense.
Q3 Segmental Update
Market Making: Adjusted net trading income was $344.1 million in the third quarter, which climbed 19.5% year over year. The metric topped the Zacks Consensus Estimate of $307.4 million and our estimate of $304.2 million. The unit’s revenues climbed 15.8% year over year to $668 million, higher than the Zacks Consensus Estimate and our estimate of $633.9 million.
Execution Services: The unit recorded an adjusted net trading income of $122.9 million in the quarter under review, which advanced 22.8% year over year and surpassed our estimate of $110.8 million. Total revenues of $154.5 million rose 22.9% year over year and beat the consensus mark and our estimate of $138.2 million.
Financial Update (As of Sept. 30, 2025)
Virtu Financial exited the third quarter with cash and cash equivalents of $707.9 million, which tumbled 18.9% from the 2024-end level. Total assets of $21.3 billion increased from the figure of $15.4 billion at 2024-end.
Long-term borrowings, net, amounted to $2 billion, which increased from the figure of $1.7 billion as of Dec. 31, 2024. Short-term borrowings totaled $122 million.
Total equity of $1.7 billion rose 14.4% from the 2024-end level.
Share Repurchase & Dividend Update
Virtu Financial bought back 0.5 million shares worth $20.9 million in the third quarter of 2025. It had a leftover capacity of $302.8 million under its buyback authorization for future purchases.
VIRT announced a cash dividend of 24 cents per share. The dividend will be paid out on Dec. 15, 2025, to its shareholders of record as of Dec. 1.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 32.09% due to these changes.
VGM Scores
Currently, Virtu Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Virtu Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Virtu Financial is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Synchrony (SYF - Free Report) , a stock from the same industry, has gained 4.6%. The company reported its results for the quarter ended September 2025 more than a month ago.
Synchrony reported revenues of $4.72 billion in the last reported quarter, representing a year-over-year change of +2.4%. EPS of $2.86 for the same period compares with $1.94 a year ago.
For the current quarter, Synchrony is expected to post earnings of $1.99 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Synchrony. Also, the stock has a VGM Score of A.