Virtu Financial Q1 2025 slides: Adj. NTI surges to $8.3M per day, EPS hits $1.30

Introduction & Market Context

Virtu Financial (NASDAQ:VIRT) released its first quarter 2025 earnings presentation on April 23, revealing robust financial performance across its key business segments. The market maker and liquidity provider reported significant growth in trading income and profitability metrics, continuing the strong momentum observed in the previous quarter. In premarket trading, Virtu’s stock rose 2.05% to $39.38, reflecting positive investor sentiment following the results.

The company’s performance comes amid favorable market conditions, with increased volatility and trading volumes across multiple asset classes. Virtu has successfully capitalized on diversified growth opportunities in options, ETPs (Exchange-Traded Products), and cryptocurrency markets, while maintaining disciplined expense management.

Quarterly Performance Highlights

Virtu reported impressive financial results for Q1 2025, with Adjusted Net Trading Income (Adj. NTI) reaching $497 million, or $8.3 million per day. This represents a substantial increase from $7.3 million per day in Q4 2024 and $6.0 million per day in Q1 2024, demonstrating strong year-over-year and sequential growth.

As shown in the following chart of quarterly financial performance, Normalized Adjusted EPS rose to $1.30 in Q1 2025, compared to $1.14 in Q4 2024 and $0.76 in Q1 2024, marking a 71% year-over-year increase:

The company achieved an Adjusted EBITDA of $320 million with an impressive margin of 64%, highlighting Virtu’s operational efficiency and scalability. Debt to LTM Adjusted EBITDA remained conservative at 1.7x, providing financial flexibility for future growth initiatives and capital returns.

A comprehensive view of Virtu’s key financial metrics over time demonstrates the company’s consistent performance improvement across both annual and quarterly periods:

Segment Performance

Virtu’s Market Making segment delivered strong results in Q1 2025, benefiting from favorable market conditions and enhanced trading strategies. The segment generated significant trading income despite mixed volatility metrics, showcasing the company’s ability to outperform market conditions through strategic positioning and technological advantages.

The Execution Services segment (VES) experienced its best quarter since Q1 2022, reflecting successful technology enhancements and client adoption of Virtu’s multi-asset trading solutions. This performance underscores the effectiveness of Virtu’s investments in modernizing and expanding its execution services capabilities.

Strategic Initiatives & Growth Drivers

Virtu continues to focus on diversified growth opportunities across multiple asset classes and markets. The company highlighted several key growth areas, including options volumes, ETP trading, and cryptocurrency markets, all of which have shown significant expansion potential:

Organic growth initiatives, including crypto, ETF block trading, and options market making, contributed $787,000 per day to Virtu’s adjusted net trading income in 2024, representing approximately 12% of total ANTI. These initiatives have shown consistent growth over time, as illustrated in the following chart:

The company’s crypto business performed particularly well in Q1 2025, despite market volumes in spot crypto ETFs being down compared to their launch period in Q1 2024. Virtu’s investments in expanding market access, liquidity distribution, and operational efficiency in the crypto space have positioned the company to capitalize on this growing market segment.

Capital Management

Virtu maintains a disciplined approach to capital management, balancing investments in growth initiatives with shareholder returns. In Q1 2025, the company repurchased 1.3 million shares for $48 million, continuing its substantial buyback program. Cumulatively, Virtu has repurchased 52 million shares for $1.35 billion, representing 18.9% of shares outstanding (net of issuances).

The following chart illustrates Virtu’s significant earnings power across various market scenarios, highlighting the potential for substantial EPS generation even in moderate market conditions:

The company’s share repurchase program has been a key component of its capital return strategy, as shown in the consistent buyback activity over time:

Forward Outlook

Virtu’s presentation demonstrates confidence in its future growth prospects, supported by several key factors:

1. Continued expansion in crypto and digital assets, with expectations for new regulatory tailwinds to drive product innovation and market growth in 2025

2. Further enhancement of core market making capabilities and execution services offerings

3. Disciplined expense management, with a focus on maintaining operational efficiency

4. Ongoing capital returns through share repurchases and dividends

The company’s historical growth trajectory provides context for its long-term performance potential:

Virtu’s multi-asset strategy and technological investments position the company to benefit from evolving market conditions and capitalize on new opportunities across various asset classes. With a strong balance sheet, disciplined expense management, and strategic focus on high-growth areas, Virtu appears well-positioned to continue its positive momentum throughout 2025.

The Q1 2025 results represent a continuation of the strong performance seen in Q4 2024, when the company reported an EPS of $1.14, significantly exceeding analyst expectations. Virtu’s ability to consistently outperform market metrics reflects the success of its diversified business model and strategic initiatives in expanding its addressable market.

Full presentation:

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