• Virtu Announces Second Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 26 Jul 2023 06:00:49   America/Chicago

    NEW YORK, July 26, 2023 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the second quarter ended June 30, 2023.

    Second Quarter 2023:

    • Net income of $29.5 million; Normalized Adjusted Net Income2 of $61.7 million
    • Basic and diluted earnings per share of $0.16; Normalized Adjusted EPS2 of $0.37
    • Total revenues of $506.9 million; Trading income, net, of $306.2 million; Net income Margin of 5.8%1
      • Adjusted Net Trading Income2 of $278.7 million
    • Adjusted EBITDA2 of $122.0 million; Adjusted EBITDA Margin2 of 43.8%
    • Share buybacks of $41.5 million, or 2.3 million shares, under the Share Repurchase Program3

    The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on September 15, 2023 to shareholders of record as of September 1, 2023.

    Note 1: Calculated by dividing Net income by Total revenue
    Note 2: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
    Note 3: Shares repurchased calculated on a settlement date basis.

    Financial Results

    Second Quarter 2023:

    Total revenues decreased 16.2% to $506.9 million for this quarter, compared to $604.7 million for the same period in 2022. Trading income, net, decreased to $306.2 million for the quarter compared to $395.9 million for the same period in 2022. Net income totaled $29.5 million for this quarter, compared to net income of $148.9 million in the prior year quarter.

    Basic and diluted earnings per share for this quarter were $0.16, compared to a basic and diluted earnings per share of $0.78, for the same period in 2022.

    Adjusted Net Trading Income decreased 22.0% to $278.7 million for this quarter, compared to $357.4 million for the same period in 2022. Adjusted EBITDA decreased 41.6% to $122.0 million for this quarter, compared to $209.3 million for the same period in 2022.

    Normalized Adjusted Net Income, removing one-time and non-cash items, decreased 52.5% to $61.7 million for this quarter, compared to $129.9 million for the same period in 2022.

    Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.37 for this quarter, compared to $0.73 for the same period in 2022.

    Operating Segment Information

    The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

    Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

    Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

    Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

    The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and six months ended June 30, 2023 and 2022.

    Total revenues by segment
    (in thousands, unaudited)

      Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $302,312 $3,856 $—  $306,168  $390,263 $5,665 $— $395,928
    Commissions, net and technology services  6,634  102,870  —   109,504   11,145  125,195  —  136,340
    Interest and dividends income  95,595  2,384  —   97,979   30,792  —  —  30,792
    Other, net  709  6  (7,512)  (6,797)  395  137  41,146  41,678
    Total Revenues $405,250 $109,116 $(7,512) $506,854  $432,595 $130,997 $41,146 $604,738


      Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $710,655 $8,024 $—  $718,679  $906,621 $11,614 $— $918,235
    Commissions, net and technology services  16,334  214,614  —   230,948   20,194  270,801  —  290,995
    Interest and dividends income  175,283  4,940  —   180,223   51,775  29  —  51,804
    Other, net  1,897  15  (4,529)  (2,617)  568  298  44,100  44,966
    Total Revenues $904,169 $227,593 $(4,529) $1,127,233  $979,158 $282,742 $44,100 $1,306,000
                               

    Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
    (in thousands, unaudited)

      Three Months Ended June 30, 2023 Three Months Ended June 30, 2022
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $302,312  $3,856  $— $306,168  $390,263  $5,665  $— $395,928 
    Commissions, net and technology services  6,634   102,870   —  109,504   11,145   125,195   —  136,340 
    Interest and dividends income  95,595   2,384   —  97,979   30,792   —   —  30,792 
    Brokerage, exchange, clearance fees and payments for order flow, net  (99,842)  (22,629)  —  (122,471)  (131,121)  (25,865)  —  (156,986)
    Interest and dividends expense  (111,508)  (985)  —  (112,493)  (47,355)  (1,361)  —  (48,716)
    Adjusted Net Trading Income $193,191  $85,496  $— $278,687  $253,724  $103,634  $— $357,358 


      Six Months Ended June 30, 2023 Six Months Ended June 30, 2022
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $710,655  $8,024  $— $718,679  $906,621  $11,614  $— $918,235 
    Commissions, net and technology services  16,334   214,614   —  230,948   20,194   270,801   —  290,995 
    Interest and dividends income  175,283   4,940   —  180,223   51,775   29   —  51,804 
    Brokerage, exchange, clearance fees and payments for order flow, net  (222,791)  (45,202)  —  (267,993)  (254,636)  (52,730)  —  (307,366)
    Interest and dividends expense  (208,431)  (1,663)  —  (210,094)  (88,382)  (2,872)  —  (91,254)
    Adjusted Net Trading Income $471,050  $180,713  $— $651,763  $635,572  $226,842  $— $862,414 
                                   

    Financial Condition

    As of June 30, 2023, Virtu had $745.8 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,806.3 million.

    Share Repurchase Program

    Since inception of the program in November 2020 through settlement date April 19, 2023, the Company repurchased approximately 38.5 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,016.7 million. The Company has approximately $203.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

    Earnings Conference Call Information

    Virtu Financial will host a conference call to review its second quarter 2023 financial performance today, July 26th, at 8:00 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

    Website Information

    We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

    Non-GAAP Financial Measures and Other Items

    To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), we use the following non-GAAP measures of financial performance:

    • "Adjusted Net Trading Income", which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.

    • "EBITDA", which measures our operating performance by adjusting Net Income to exclude financing interest expense on our long-term borrowings, debt issue cost related to debt refinancing, prepayment, and commitment fees, depreciation and amortization, amortization of purchased intangibles and acquired capitalized software, and income tax expense, and "Adjusted EBITDA", which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share based compensation and other expenses, which includes reserves for legal matters, and Other net, and “Adjusted EBITDA Margin”, which compares Adjusted EBITDA to Adjusted Net Trading Income.

    • “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items including gains and losses from strategic investments and the sales of businesses, and other non-cash items, assuming that all vested and unvested non-voting common interest units in Virtu Financial LLC have been exchanged for shares of our Class A common stock, and applying an effective tax rate, which was approximately 24%.

    • “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

    • they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
    • our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
    • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
    • they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
    • they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
    • they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

    Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

     
    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Comprehensive Income (Unaudited)
     
      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except share and per share data)  2023   2022   2023   2022 
             
    Revenues:        
    Trading income, net $306,168  $395,928  $718,679  $918,235 
    Interest and dividends income  97,979   30,792   180,223   51,804 
    Commissions, net and technology services  109,504   136,340   230,948   290,995 
    Other, net  (6,797)  41,678   (2,617)  44,966 
    Total revenues  506,854   604,738   1,127,233   1,306,000 
             
    Operating Expenses:        
    Brokerage, exchange, clearance fees and payments for order flow, net  122,471   156,986   267,993   307,366 
    Communication and data processing  56,959   55,699   113,771   111,534 
    Employee compensation and payroll taxes  95,557   98,604   198,994   202,084 
    Interest and dividends expense  112,493   48,716   210,094   91,254 
    Operations and administrative  25,491   13,577   49,790   38,792 
    Depreciation and amortization  15,913   16,334   31,261   33,812 
    Amortization of purchased intangibles and acquired capitalized software  16,020   16,277   32,040   32,757 
    Termination of office leases  (146)  677   (50)  1,384 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,771   1,437   3,948   27,121 
    Transaction advisory fees and expenses  8   558   23   980 
    Financing interest expense on long-term borrowings  24,850   22,089   49,138   43,422 
    Total operating expenses  471,387   430,954   957,002   890,506 
             
    Income before income taxes and noncontrolling interest  35,467   173,784   170,231   415,494 
    Provision for income taxes  5,923   24,888   30,605   66,674 
    Net income $29,544  $148,896  $139,626  $348,820 
             
    Noncontrolling interest  (12,842)  (63,729)  (65,044)  (151,397)
             
    Net income available for common stockholders $16,702  $85,167  $74,582  $197,423 
             
    Earnings per share:        
    Basic $0.16  $0.78  $0.73  $1.78 
    Diluted $0.16  $0.78  $0.73  $1.77 
             
    Weighted average common shares outstanding        
    Basic  94,973,489   104,960,826   96,376,926   107,133,079 
    Diluted  94,973,489   105,478,278   96,376,926   107,759,784 
             
    Comprehensive income:        
    Net income $29,544  $148,896  $139,626  $348,820 
    Other comprehensive income        
    Foreign exchange translation adjustment, net of taxes  2,527   (19,810)  4,175   (24,978)
    Net change in unrealized cash flow hedges gains, net of taxes  8,202   14,062   (4,966)  61,935 
    Comprehensive income $40,273  $143,148  $138,835  $385,777 
    Less: Comprehensive income attributable to noncontrolling interest  (17,189)  (60,173)  (64,724)  (164,332)
    Comprehensive income available for common stockholders $23,084  $82,975  $74,111  $221,445 
                     

    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except percentages)  2023   2022   2023   2022 
             
    Reconciliation of Trading income, net to Adjusted Net Trading Income        
    Trading income, net $306,168  $395,928  $718,679  $918,235 
    Commissions, net and technology services  109,504   136,340   230,948   290,995 
    Interest and dividends income  97,979   30,792   180,223   51,804 
    Brokerage, exchange, clearance fees and payments for order flow, net  (122,471)  (156,986)  (267,993)  (307,366)
    Interest and dividends expense  (112,493)  (48,716)  (210,094)  (91,254)
    Adjusted Net Trading Income $278,687  $357,358  $651,763  $862,414 
             
    Reconciliation of Net Income to EBITDA and Adjusted EBITDA        
    Net income  29,544   148,896   139,626   348,820 
    Financing interest expense on long-term borrowings  24,850   22,089   49,138   43,422 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,771   1,437   3,948   27,121 
    Depreciation and amortization  15,913   16,334   31,261   33,812 
    Amortization of purchased intangibles and acquired capitalized software  16,020   16,277   32,040   32,757 
    Provision for income taxes  5,923   24,888   30,605   66,674 
    EBITDA $94,021  $229,921  $286,618  $552,606 
    Severance  1,265   757   3,910   2,759 
    Transaction advisory fees and expenses  8   558   23   980 
    Termination of office leases  (146)  677   (50)  1,384 
    Other  10,671   (41,631)  7,204   (37,369)
    Share based compensation  16,171   18,997   31,754   32,709 
    Adjusted EBITDA $121,990  $209,279  $329,459  $553,069 
             
    Selected Operating Margins        
    GAAP Net income Margin (1)  5.8%  24.6%  12.4%  26.7%
    Non-GAAP Net income Margin (2)  10.6%  41.7%  21.4%  40.4%
    EBITDA Margin (3)  33.7%  64.3%  44.0%  64.1%
    Adjusted EBITDA Margin (4)  43.8%  58.6%  50.5%  64.1%
             
    1 Calculated by dividing Net income by Total revenue.
    2 Calculated by dividing Net income by Adjusted Net Trading Income.
    3 Calculated by dividing EBITDA by Adjusted Net Trading Income.
    4 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.
             

    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)
    (Continued)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except share and per share data)  2023   2022   2023   2022 
             
    Reconciliation of Net Income to Normalized Adjusted Net Income        
    Net income $29,544  $148,896  $139,626  $348,820 
    Provision for income taxes  5,923   24,888   30,605   66,674 
    Income before income taxes and noncontrolling interest $35,467  $173,784  $170,231  $415,494 
    Amortization of purchased intangibles and acquired capitalized software  16,020   16,277   32,040   32,757 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,771   1,437   3,948   27,121 
    Severance  1,265   757   3,910   2,759 
    Transaction advisory fees and expenses  8   558   23   980 
    Termination of office leases  (146)  677   (50)  1,384 
    Other  10,671   (41,631)  7,204   (37,369)
    Share based compensation  16,171   18,997   31,754   32,709 
    Normalized Adjusted Net Income before income taxes $81,227  $170,856  $249,060  $475,835 
    Normalized provision for income taxes (1)  19,495   41,006   59,772   114,201 
    Normalized Adjusted Net Income $61,732  $129,850  $189,288  $361,634 
             
    Weighted Average Adjusted shares outstanding (2)  168,831,964   178,886,524   170,085,629   181,017,758 
             
    Normalized Adjusted EPS $0.37  $0.73  $1.11  $2.00 
             
    (1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
    (2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company's Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company's Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company's Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan during the three and six months ended June 30, 2023 and 2022 and the Amended and Restated ITG 2007 Equity Plan during the three and six months ended June 30, 2022


    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Financial Condition (Unaudited)
     
    (in thousands, except share data) June 30,
    2023    		 December 31,
    2022
         
    Assets    
    Cash and cash equivalents $698,674 $981,580 
    Cash and securities segregated under regulations and other  47,133  56,662 
    Securities borrowed  1,665,179  1,187,674 
    Securities purchased under agreements to resell  793,815  336,999 
    Receivables from broker-dealers and clearing organizations  1,459,826  1,115,185 
    Receivables from customers  130,623  80,830 
    Trading assets, at fair value  6,452,300  4,630,552 
    Property, equipment and capitalized software, net  95,735  85,194 
    Operating lease right-of-use assets  174,136  187,442 
    Goodwill  1,148,926  1,148,926 
    Intangibles (net of accumulated amortization)  289,440  321,480 
    Deferred taxes  134,549  146,801 
    Other assets  299,348  303,916 
    Total assets  13,389,684  10,583,241 
         
    Liabilities and equity    
    Liabilities    
    Short-term borrowings, net  111,721  3,944 
    Securities loaned  1,306,894  1,060,432 
    Securities sold under agreements to repurchase  1,120,151  627,549 
    Payables to broker-dealers and clearing organizations  848,277  273,843 
    Payables to customers  39,740  46,525 
    Trading liabilities, at fair value  5,812,887  4,196,974 
    Tax receivable agreement obligations  215,542  238,758 
    Accounts payable and accrued expenses and other liabilities  379,815  448,635 
    Operating lease liabilities  224,086  239,202 
    Long-term borrowings, net  1,778,270  1,795,952 
    Total liabilities  11,837,383  8,931,814 
         
    Total equity  1,552,301  1,651,427 
         
    Total liabilities and equity $13,389,684 $10,583,241 
         
      As of June 30, 2023
    Ownership of Virtu Financial LLC Interests: Interests %
    Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units  98,916,958  58.9%
    Non-controlling Interests (Virtu Financial LLC)  68,948,271  41.1%
    Total Virtu Financial LLC Interests  167,865,229  100.0%
            

    About Virtu Financial, Inc.

    Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

    Cautionary Note Regarding Forward-Looking Statements

    This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic and governmental and other responses thereto; fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

    CONTACT

    Investor & Media Relations
    Andrew Smith
    investor_relations@virtu.com
    media@virtu.com


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