Virtu Financial’s Q2 Trading Income Falls as Revenue Shrinks 17% to $507M

Wednesday, 26/07/2023 | 16:42 GMT by Solomon Oladipupo

The firm's net trading income fell 26% QoQ to $306.2 million.

XTX Markets recently reported a massive leap in net profit from its UK entities.

Virtu Financial, a New York-based electronic market maker, generated lower revenue and net trading income during the second quarter (Q2) of this year, according to its latest financial results released today (Wednesday). Total revenue during the period came in at $506.9 million, declining 17% quarter-over-quarter (QoQ) and 16.2% year-over-year (YoY).

Performance Plummets in Q2

During the last quarter, the American broker-dealer, which majorly engages in market-making and execution services, reported a net trading income of $306.2 million. This figure represents a drop of 26% QoQ from $411.5 million. The income also descended 23% when compared with the $395.9 million generated during the same period in 2022.

Furthermore, details shared by Virtu Financial show that its adjusted net trading income slumped 22% to $278.7 million during the last quarter, which is down from $357.4 million posted in Q2 of 2022. In addition, the electronic market maker reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $122 million. The earnings also fell 43% compared to $209.3 million from the same quarter last year.

Moreover, in the statement, Virtu Financial noted that its Board of Directors has declared a quarterly cash dividend of $0.24 per share. The Nasdaq-listed company declared the same dividend during the last quarter. On the other hand, Virtu Financial returned $0.16 in basic and diluted earnings in the last quarter. The earnings slumped 79% from $0.78 seen during Q2 2022.

Virtu Financial Reports Poor End of 2022

Meanwhile, Finance Magnates reported that Virtu Financial posted lower revenue and net trading income during the fiscal year 2022. The financial services and products provider’s total revenue fell by 15.9% to $2.4 billion. Net profit for the period also went down 43% from $827.2 million in 2021 to $468.3 million.

On the contrary, XTX Markets recently reported a massive leap in the net profit generated by its UK entities during the fiscal year 2022. The global algorithmic trading firm’s profit from the subsidiaries skyrocketed from £667 million in 2021 to £1.095 billion last year.

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