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Why Is Virtu Financial (VIRT) Down 1.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Virtu Financial (VIRT - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Virtu Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
VIRT Beats Q1 Earnings Estimates on Execution Services Unit Strength
Virtu Financial reported first-quarter adjusted earnings per share (EPS) of $2.24, which beat the Zacks Consensus Estimate by 34.9%. The bottom line increased 72.3% year over year.
Adjusted Net Trading Income rose 58.2% year over year to $786.5 million, surpassing the consensus estimate by 37.5%.
The strong quarterly results can be attributed to 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, an increased expense level partially offset the positives.
Virtu Financial’s Q1 Performance Details
Revenues from commissions, net and technology services rose 23.3% year over year to $186.6 million. The metric beat the Zacks Consensus Estimate and our model estimate of $163.2 million.
Interest and dividend income of $127.5 million increased 16.9% year over year but missed both the Zacks Consensus Estimate and our estimate of $128.6 million.
Adjusted EBITDA increased 62.7% year over year to $520.6 million. Adjusted EBITDA margin improved year over year to 66.2% from 64.4% a year ago.
Total operating expenses rose 11.7% year over year to $685.8 million, but were lower than our estimate of $771.7 million. The increase was due to higher costs related to communication and data processing, as well as employee compensation and payroll taxes.
Q1 Segmental Update
Market Making: Adjusted net trading income totaled $637.1 million in the first quarter, climbing 66.8% year over year. The metric surpassed the Zacks Consensus Estimate of $446 million. The unit’s revenues increased 32.5% year over year to $915.7 million, beating both the Zacks Consensus Estimate and our estimate of $815.6 million.
Execution Services: The unit recorded adjusted net trading income of $149.5 million in the quarter under review, representing an increase of 29.8% year over year. The metric surpassed the Zacks Consensus Estimate of $126 million and our estimate of $125.1 million. The unit’s total revenues rose 32.7% year over year to $187.1 million, beating both the consensus estimate and our estimate of $156.6 million.
Financial Update (As of March 31, 2026)
Virtu Financial ended the first quarter with cash and cash equivalents of $973.2 million, down 8.3% from the 2025 year-end level. Total assets increased to $25.1 billion from $20.2 billion at the end of 2025.
Long-term borrowings, net, amounted to $2 billion, down 0.7% from the figure as of Dec. 31, 2025. Short-term borrowings totaled $155 million.
Total equity of $2.2 billion was up from the 2025-end level of $2 billion.
Share Repurchase & Dividend Update
Virtu Financial did not buy back shares in the first quarter of 2026. It announced a quarterly cash dividend of 24 cents per share, payable on June 15, 2026, to its shareholders of record as of June 1.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 24.72% due to these changes.
VGM Scores
At this time, Virtu Financial has a subpar Growth Score of D, 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 this investment strategy.
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. It comes with little surprise Virtu Financial has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Virtu Financial belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Bread Financial Holdings (BFH - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Bread Financial reported revenues of $1.02 billion in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $4.18 for the same period compares with $2.86 a year ago.
For the current quarter, Bread Financial is expected to post earnings of $2.49 per share, indicating a change of -20.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Bread Financial. Also, the stock has a VGM Score of C.
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Why Is Virtu Financial (VIRT) Down 1.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Virtu Financial (VIRT - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Virtu Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
VIRT Beats Q1 Earnings Estimates on Execution Services Unit Strength
Virtu Financial reported first-quarter adjusted earnings per share (EPS) of $2.24, which beat the Zacks Consensus Estimate by 34.9%. The bottom line increased 72.3% year over year.
Adjusted Net Trading Income rose 58.2% year over year to $786.5 million, surpassing the consensus estimate by 37.5%.
The strong quarterly results can be attributed to 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, an increased expense level partially offset the positives.
Virtu Financial’s Q1 Performance Details
Revenues from commissions, net and technology services rose 23.3% year over year to $186.6 million. The metric beat the Zacks Consensus Estimate and our model estimate of $163.2 million.
Interest and dividend income of $127.5 million increased 16.9% year over year but missed both the Zacks Consensus Estimate and our estimate of $128.6 million.
Adjusted EBITDA increased 62.7% year over year to $520.6 million. Adjusted EBITDA margin improved year over year to 66.2% from 64.4% a year ago.
Total operating expenses rose 11.7% year over year to $685.8 million, but were lower than our estimate of $771.7 million. The increase was due to higher costs related to communication and data processing, as well as employee compensation and payroll taxes.
Q1 Segmental Update
Market Making: Adjusted net trading income totaled $637.1 million in the first quarter, climbing 66.8% year over year. The metric surpassed the Zacks Consensus Estimate of $446 million. The unit’s revenues increased 32.5% year over year to $915.7 million, beating both the Zacks Consensus Estimate and our estimate of $815.6 million.
Execution Services: The unit recorded adjusted net trading income of $149.5 million in the quarter under review, representing an increase of 29.8% year over year. The metric surpassed the Zacks Consensus Estimate of $126 million and our estimate of $125.1 million. The unit’s total revenues rose 32.7% year over year to $187.1 million, beating both the consensus estimate and our estimate of $156.6 million.
Financial Update (As of March 31, 2026)
Virtu Financial ended the first quarter with cash and cash equivalents of $973.2 million, down 8.3% from the 2025 year-end level. Total assets increased to $25.1 billion from $20.2 billion at the end of 2025.
Long-term borrowings, net, amounted to $2 billion, down 0.7% from the figure as of Dec. 31, 2025. Short-term borrowings totaled $155 million.
Total equity of $2.2 billion was up from the 2025-end level of $2 billion.
Share Repurchase & Dividend Update
Virtu Financial did not buy back shares in the first quarter of 2026. It announced a quarterly cash dividend of 24 cents per share, payable on June 15, 2026, to its shareholders of record as of June 1.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 24.72% due to these changes.
VGM Scores
At this time, Virtu Financial has a subpar Growth Score of D, 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 this investment strategy.
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. It comes with little surprise Virtu Financial has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Virtu Financial belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Bread Financial Holdings (BFH - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Bread Financial reported revenues of $1.02 billion in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $4.18 for the same period compares with $2.86 a year ago.
For the current quarter, Bread Financial is expected to post earnings of $2.49 per share, indicating a change of -20.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Bread Financial. Also, the stock has a VGM Score of C.