Virtu Financial Posts Impressive Q2 Performance, Revenue Climbs 36%

Thursday, 18/07/2024 | 13:03 GMT by Jared Kirui

Net trading income surged 39% YoY to $426.4 million, while net income rose to $128.1 million from $29.5 million in Q2 2023.

The company has declared a quarterly cash dividend of $0.24 per share and repurchased $31 million worth of shares.

virtu-financial-is-buying-kcg-holdings-for-14-billion - Edited

Market maker and liquidity provider Virtu Financial delivered strong second-quarter results, highlighting impressive gains across key financial metrics. The quarter was marked by earnings growth, debt refinancing, dividend payouts, and share buybacks. Revenue rose 36.7% to $693 million, compared to $506.9 million in the same period last year.

Strong Q2 Financial Performance

Virtu's net trading income surged by 39.3% year-over-year to $426.4 million from $306.2 million. The net income for the period reached $128.1 million, a substantial increase from $29.5 million in Q2 2023.

The company's basic and diluted earnings per share (EPS) rose to $0.71, up from $0.16 in the previous year. On an adjusted basis, the EPS was $0.83, reflecting a 124.3% increase from $0.37 in Q2 2023. Virtu's adjusted net trading income climbed 38.2% to $385.1 million, while the adjusted EBITDA jumped by 78.3% to $217.5 million.

Following the impressive results, the company declared a quarterly cash dividend of $0.24 per share, payable on September 15, 2024, to shareholders of record as of September 1, 2024. Virtu also repurchased $31 million worth of shares. Since 2020, the firm has repurchased approximately 47.2 million shares for $1,181.4 million, with $538.6 million remaining for future purchases.

Additionally, Virtu successfully refinanced its existing debt, issuing a $1.2 billion senior secured first lien term loan and $500 million senior secured first lien notes, both due in 2031. The proceeds were used to repay the prior $1.7 billion first-lien term loan facility.

Operating Segments Performance

Virtu operates two main segments: market-making and execution services. Market-making includes trading in various markets, such as global equities, fixed income, currencies, and commodities. Execution services offer agency-based trading, trading venues, and proprietary technology solutions to institutional clients.

For Q2 2024, the market-making segment contributed significantly to the company's performance. Execution services also experienced a positive momentum, driven by increased demand for advanced trading analytics and infrastructure.

In Q1, Virtu also reported impressive financial performance, with a net income of $111.3 million and a normalized adjusted net income of $124.3 million. Total revenue increased to $642.8 million, driven by a net trading income of $408.1 million.