Virtu tops Q3 profit estimates as trading income rises 55%
Virtu (VIRT) earned $1.77 per share on an adjusted basis, above the $1.55 consensus estimate, and revenue of $1.15 billion topped the $659.97 million estimate.
Key takeaways
- Virtu Financial (VIRT) reported third-quarter normalized adjusted earnings of $1.77 per share, against a $1.55 consensus estimate, and revenue of $1.15 billion. The company also said it plans to reincorporate from Delaware to Texas, a move its controlling stockholder approved.
Virtu Financial (VIRT) topped third-quarter profit estimates as trading income climbed. Normalized adjusted earnings were $1.77 per share, against the $1.55 consensus estimate.
Shares rose 1.6% at 3:59 p.m. ET, from a $53.03 close.
Total revenue was $1.15 billion, above the $659.97 million estimate and up 39.9% from $824.8 million a year earlier.
Here's how the company did:
- Normalized adjusted EPS: $1.77 vs. $1.05 a year earlier, against the $1.55 consensus estimate
- GAAP diluted EPS: $1.65 vs. $0.86 a year earlier
- Total revenues: $1.15 billion vs. $824.8 million a year earlier, against the $659.97 million consensus estimate
- Net income: $282.5 million vs. $149.1 million a year earlier
- Adjusted EBITDA: $437.9 million vs. $267.8 million a year earlier, up 63.5%
Trading results
Trading income, net, rose 55.0% to $820.2 million from $529.1 million a year earlier. Adjusted Net Trading Income, which deducts direct costs such as brokerage, exchange and clearance fees, increased 50.7% to $704.0 million from $467.0 million.
Execution Services generated $986.8 million of total revenues, up from $668.0 million a year earlier. Corporate, which holds the company's investments and corporate overhead, reported $163.0 million of revenues against $154.5 million.
Revenue has risen in each of the last three quarters, from $824.8 million in the third quarter of 2025 to $1.19 billion in the second quarter of 2026.
Costs and cash
Employee compensation and payroll taxes rose to $199.0 million from $157.7 million. Severance charges fell to $2.4 million from $19.1 million.
Cash, cash equivalents and restricted cash totaled $1.58 billion at Sept. 30. Total long-term debt outstanding had an aggregate principal amount of $2.55 billion.
Dividend and reincorporation
The board declared a quarterly cash dividend of $0.24 per share, payable Dec. 15 to shareholders of record as of Dec. 1.
The board adopted resolutions on Nov. 4 to change the company's state of incorporation from Delaware to Texas. TJMT Holdings LLC, which holds a majority of the voting power, approved the change by written consent.
The redomestication is expected to occur later this year and is not expected to affect business operations, management, strategy, assets or employee locations. An information statement will be filed with the Securities and Exchange Commission before the change takes effect.