NEW YORK, Jan. 29, 2025 (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 fourth quarter ended December 31, 2024.
Fourth Quarter and Full Year Selected Highlights
Fourth Quarter 2024:
- Net income of $176.1 million; Normalized Adjusted Net Income1 of $182.2 million
- Basic and diluted earnings per share of $1.03; Normalized Adjusted EPS1 of $1.14
- Total revenues of $834.3 million; Trading income, net, of $544.0 million; Net income Margin of 21.1%2
- Adjusted Net Trading Income1 of $457.7 million
- Adjusted EBITDA1 of $283.5 million; Adjusted EBITDA Margin1 of 61.9%
- Share buybacks of $57.1 million, or 1.7 million shares, under the Share Repurchase Program3
- Net income of $534.5 million; Normalized Adjusted Net Income1 of $573.9 million
- Basic and diluted earnings per share of $2.98 and $2.97, respectively; Normalized Adjusted EPS1 of $3.55
- Total revenues of $2,876.9 million; Trading income, net of $1,822.4 million; Net income Margin of 18.6%2
- Adjusted Net Trading Income1 of $1,597.7 million
- Adjusted EBITDA1 of $918.7 million; Adjusted EBITDA Margin1 of 57.5%
- Share buybacks of $172.2 million, or 6.7 million shares, under the Share Repurchase Program3
Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
Note 2: Calculated by dividing Net income by Total revenue
Note 3: Shares repurchased calculated on a settlement date basis.
Financial Results
Fourth Quarter 2024:
Total revenues increased 55.7% to $834.3 million for this quarter, compared to $536.0 million for the same period in 2023. Trading income, net, increased 104.0% to $544.0 million for the quarter compared to $266.6 million for the same period in 2023. Net income totaled $176.1 million for this quarter, compared to net income of $6.7 million in the prior year quarter.
Basic and diluted earnings per share for this quarter were $1.03, compared to basic and diluted earnings per share of $0.05 for the same period in 2023.
Adjusted Net Trading Income increased 75.4% to $457.7 million for this quarter, compared to $260.9 million for the same period in 2023. Adjusted EBITDA increased 186.4% to $283.5 million for this quarter, compared to $99.0 million for the same period in 2023. Normalized Adjusted Net Income, removing one-time and non-cash items, increased 313.5% to $182.2 million for this quarter, compared to $44.1 million for the same period in 2023.
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 $1.14 for this quarter, compared to $0.27 for the same period in 2023.
Full Year 2024:
Total revenues increased 25.4% to $2,876.9 million for this year, compared to $2,293.4 million for 2023. Trading income, net, increased 40.0% to $1,822.4 million for this year, compared to $1,301.3 million for 2023. Net income totaled $534.5 million for this year, compared to net income of $263.9 million for 2023.
Basic and diluted earnings per share were $2.98 and $2.97, respectively, for 2024, compared to basic and diluted earnings per share of $1.42 for 2023.
Adjusted Net Trading Income increased 32.0% to $1,597.7 million for this year, compared to $1,210.7 million for 2023. Adjusted EBITDA increased 61.7% to $918.7 million for this year, compared to $568.0 million for 2023. Normalized Adjusted Net Income increased 86.3% to $573.9 million for this year, compared to $308.1 million for 2023.
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 $3.55 for 2024, compared to $1.84 for 2023.
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, cryptocurrencies, 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 months and full years ended December 31, 2024 and 2023.
Total revenues by segment
(in thousands, unaudited)
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||
| Market Making | Execution Services | Corporate | Total | Market Making | Execution Services | Corporate | Total | ||||||||||||||||||||
| Trading income, net | $ | 534,728 | $ | 9,222 | $ | - | $ | 543,950 | $ | 262,501 | $ | 4,079 | $ | - | $ | 266,580 | |||||||||||
| Commissions, net and technology services | 13,173 | 127,277 | - | 140,450 | 6,894 | 107,481 | - | 114,375 | |||||||||||||||||||
| Interest and dividends income | 121,151 | 2,632 | - | 123,783 | 151,773 | 2,877 | - | 154,650 | |||||||||||||||||||
| Other, net | 37,594 | (2,476 | ) | (9,016 | ) | 26,102 | 833 | (7,940 | ) | 7,479 | 372 | ||||||||||||||||
| Total Revenues | $ | 706,646 | $ | 136,655 | $ | (9,016 | ) | $ | 834,285 | $ | 422,001 | $ | 106,497 | $ | 7,479 | $ | 535,977 | ||||||||||
| Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Market Making | Execution Services | Corporate | Total | Market Making | Execution Services | Corporate | Total | ||||||||||||||||||||
| Trading income, net | $ | 1,798,942 | $ | 23,495 | $ | - | $ | 1,822,437 | $ | 1,283,680 | $ | 17,664 | $ | - | $ | 1,301,344 | |||||||||||
| Commissions, net and technology services | 42,376 | 474,407 | - | 516,783 | 29,571 | 426,027 | - | 455,598 | |||||||||||||||||||
| Interest and dividends income | 451,329 | 10,741 | - | 462,070 | 451,859 | 10,707 | - | 462,566 | |||||||||||||||||||
| Other, net | 81,449 | (1,413 | ) | (4,377 | ) | 75,659 | 78,413 | (7,856 | ) | 3,308 | 73,865 | ||||||||||||||||
| Total Revenues | $ | 2,374,096 | $ | 507,230 | $ | (4,377 | ) | $ | 2,876,949 | $ | 1,843,523 | $ | 446,542 | $ | 3,308 | $ | 2,293,373 | ||||||||||
(in thousands, unaudited)
| Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Market Making | Execution Services | Corporate | Total | Market Making | Execution Services | Corporate | Total | |||||||||||||||||||||||
| Trading income, net | $ | 534,728 | $ | 9,222 | $ | - | $ | 543,950 | $ | 262,501 | $ | 4,079 | $ | - | $ | 266,580 | ||||||||||||||
| Commissions, net and technology services | 13,173 | 127,277 | - | 140,450 | 6,894 | 107,481 | - | 114,375 | ||||||||||||||||||||||
| Interest and dividends income | 121,151 | 2,632 | - | 123,783 | 151,773 |
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