Virtu Financial Q3 Earnings Beat on Strong Execution Services

Virtu Financial, Inc. VIRT reported third-quarter adjusted earnings per share (EPS) of $1.05, which beat the Zacks Consensus Estimate by 8.3%. The bottom line increased 28% year over year.

Adjusted net trading income of $467 million advanced 20.4% year over year. The top line beat the consensus estimate by 11.2%.

The strong quarterly results benefited from the improved commissions and technology services revenues. Strong performance in both the Market Making and Execution Services segments, driven by increased trading activity, also contributed to the upside. However, the upside was partly offset by an elevated expense level.

Virtu Financial, Inc. Price, Consensus and EPS Surprise

Virtu Financial, Inc. price-consensus-eps-surprise-chart | Virtu Financial, Inc. Quote

Virtu Financial’s Q3 Performance Details

Revenues from commissions, net and technology services rose 17.4% year over year to $154.5 million. The metric beat the Zacks Consensus Estimate and our model estimate of $150 million. Interest and dividend income of $127.4 million increased 1.7% year over year but missed the consensus mark and our estimate of $132.2 million.

Adjusted EBITDA was $267.8 million, which climbed 24.7% year over year and came higher than our estimate of $241 million. Adjusted EBITDA margin improved 190 basis points year over year to 57.3%.

Total operating expenses escalated 15.2% year over year to $644.8 million, higher than our estimate of $617 million. The year-over-year increase was due to higher net brokerage, exchange and clearance fees, payments for order flow, communication and data processing costs, employee compensation and payroll taxes, as well as interest and dividends expense.

VIRT’s Q3 Segmental Update

Market Making: Adjusted net trading income was $344.1 million in the third quarter, which climbed 19.5% year over year. The metric topped the Zacks Consensus Estimate of $307.4 million and our estimate of $304.2 million. The unit’s revenues climbed 15.8% year over year to $668 million, higher than the Zacks Consensus Estimate and our estimate of $633.9 million.

Execution Services: The unit recorded an adjusted net trading income of $122.9 million in the quarter under review, which advanced 22.8% year over year and surpassed our estimate of $110.8 million. Total revenues of $154.5 million rose 22.9% year over year and beat the consensus mark and our estimate of $138.2 million.

Financial Update (As of Sept. 30, 2025)

Virtu Financial exited the third quarter with cash and cash equivalents of $707.9 million, which tumbled 18.9% from the 2024-end level. Total assets of $21.3 billion increased from the figure of $15.4 billion at 2024-end.

Long-term borrowings, net, amounted to $2 billion, which increased from the figure of $1.7 billion as of Dec. 31, 2024. Short-term borrowings totaled $122 million.

Total equity of $1.7 billion rose 14.4% from the 2024-end level.

Share Repurchase & Dividend Update

Virtu Financial bought back 0.5 million shares worth $20.9 million in the third quarter of 2025. It had a leftover capacity of $302.8 million under its buyback authorization for future purchases.

VIRT announced a cash dividend of 24 cents per share. The dividend will be paid out on Dec. 15, 2025, to its shareholders of record as of Dec. 1.

VIRT’s Zacks Rank

VIRT currently carries a Zacks Rank #4 (Sell).

Upcoming Earnings Releases

Here are three companies from the Finance space that are likely to report their respective quarterly earnings soon.

HCI Group, Inc. HCI has a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for HCI’s bottom line for the to-be-reported quarter is pegged at $2.35 per share, indicating 400% year-over-year growth. HCI Group’s earnings beat estimates in each of the past four quarters, with an average surprise of 41.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Robinhood Markets, Inc. HOOD has a Zacks Rank of 3 (Hold) at present. The Zacks Consensus Estimate for HOOD’s bottom line for the to-be-reported quarter is pegged at 51 cents per share, indicating 200% year-over-year growth. Robinhood Markets’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 19.5%.

Essent Group Ltd. ESNT currently has a Zacks Rank #3. The Zacks Consensus Estimate for ESNT’s bottom line for the to-be-reported quarter of $1.75 per share indicates 6.1% year-over-year growth. It remained stable over the past week. Essent Group’s earnings beat estimates in two of the last four quarters and missed twice, with an average surprise of 2.1%.

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