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Virtu Financial
(NYSE:VIRT)
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Rating:76Outperform
Price Target:
$65.00
▲(28.33% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong financial/operational performance (high margins and a TTM profitability rebound) and an attractive valuation (low P/E with a dividend). These positives are tempered by balance-sheet and cash-flow coverage risk tied to leverage, and a mixed near-term technical picture with the stock below its 20-day average despite a constructive longer-term trend.
Positive Factors
High and improving profitability margins
Sustained high EBIT and strong net margins reflect a scalable, technology-driven market making model that captures spreads and benefits from fixed-cost leverage. Durable margin strength supports cash generation and reinvestment even if volumes fluctuate across quarters.
Negative Factors
Historically elevated and volatile leverage
Large swings in reported debt and historically high leverage reduce financial flexibility and increase refinancing and interest-rate risk. A relatively small equity base versus asset scale means adverse market moves could quickly pressure covenant room and strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving profitability margins
Sustained high EBIT and strong net margins reflect a scalable, technology-driven market making model that captures spreads and benefits from fixed-cost leverage. Durable margin strength supports cash generation and reinvestment even if volumes fluctuate across quarters.
Read all positive factors
Virtu Financial (VIRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.11B
Dividend Yield1.63%
Average Volume (3M)1.28M
Price to Earnings (P/E)7.4
Beta (1Y)0.66
Revenue Growth27.58%
EPS Growth36.35%
CountryUS
Employees1,027
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)7.90
Shares Outstanding87,024,430
10 Day Avg. Volume1,008,143
30 Day Avg. Volume1,284,308
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.79
Price to Sales (P/S)0.78
P/FCF Ratio6.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$62.60Price Target Upside23.59% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)7.24
Revenue Forecast (FY)$2.71B
Virtu Financial Business Overview & Revenue Model
Company Description
Virtu Financial, Inc. stands as a leading financial services firm, delivering a comprehensive suite of data, analytical, and connectivity products to a global clientele. The company is structured around two core operational segments: Market Making...
How the Company Makes Money
Virtu primarily makes money through two operating segments: (1) Market Making and (2) Execution Services.
1) Market Making (principal trading)
- Core activity: Virtu continuously posts buy and sell quotations across many instruments and venues, a...
Virtu Financial Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong financial and operational momentum: record trailing 12-month metrics, robust quarterly profitability (61% adjusted EBITDA margin), substantial capital build (trading capital up to $3.4B) and exceptional returns on invested capital (106% over the year). Management emphasized purposeful hiring, lower attrition and the firm's ability to opportunistically deploy capital. Offsetting these positives are rising personnel-related costs (cash compensation up to ~25%), a quarterly increase in brokerage/transaction costs, and a $500 million term loan that modestly increases leverage. Product evolution (e.g., regulated perpetuals) remains an uncertain near-term revenue source. Overall, the positive operational and financial developments materially outweigh the highlighted headwinds.Positive Updates
Record Financial Performance (Quarter and Trailing 12 Months)
Q2 adjusted EBITDA of $437 million with a 61% margin; Q2 adjusted EPS $1.82. Trailing 12-month results are all-time highs: adjusted EBITDA $1.7 billion, adjusted EPS $6.96, and ANT per day of $10.4 million. For the quarter, adjusted net trading income (ANT) was $11.6 million per day (total ANT ~$718 million).
Negative Updates
Rising Compensation Ratios
Cash compensation ratio increased to roughly 25% in the quarter (year-to-date 23%), up from about 20% a year ago (≈+5 percentage points, ~+25% relative increase). Management expects a low-to-mid-20s cash compensation ratio in the near term, indicating higher ongoing personnel costs while the firm hires aggressively.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Financial Performance (Quarter and Trailing 12 Months)
Q2 adjusted EBITDA of $437 million with a 61% margin; Q2 adjusted EPS $1.82. Trailing 12-month results are all-time highs: adjusted EBITDA $1.7 billion, adjusted EPS $6.96, and ANT per day of $10.4 million. For the quarter, adjusted net trading income (ANT) was $11.6 million per day (total ANT ~$718 million).
Read all positive updates
Company Guidance
The company guided to continued capital accumulation and disciplined deployment while maintaining modest leverage and its quarterly dividend of $0.24 per share; key metrics cited include total trading capital of $3.4 billion (up from $2.0 billion a year ago) and invested capital of $2.9 billion (up $270 million this quarter) after an incremental $500 million term‑loan upsizing in early July, leaving a trailing debt-to-EBITDA of 1.5x. Financial performance and targets highlighted were adjusted net trading income (ANT) of $11.6 million per day (Market Making $9.4m/day; Execution Services $2.2m/day), trailing‑12‑month ANT of $10.4m/day, adjusted EBITDA this quarter of $437 million (61% margin) and $1.7 billion on a trailing 12‑month basis, adjusted EPS of $1.82 for the quarter and $6.96 over the last 12 months, average return on invested capital of 106% over the past year, a cash compensation ratio guided to the low‑to‑mid‑20s (23% year‑to‑date, ~25% in Q2), and VES averaging above $2.0m/day for three consecutive quarters; management said future capital growth will come primarily from free cash flow and opportunistic leverage while hiring remains aggressive.Virtu Financial Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
54
Neutral
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.08B | 3.63B | 2.88B | 2.29B | 2.36B | 2.81B |
| Gross Profit | 2.26B | 1.74B | 1.77B | 1.39B | 1.35B | 1.69B |
| EBITDA | 1.70B | 1.35B | 1.39B | 1.05B | 1.01B | 1.35B |
| Net Income | 684.80M | 468.36M | 276.42M | 142.04M | 265.03M | 476.88M |
Balance Sheet | ||||||
| Total Assets | 27.48B | 20.15B | 15.36B | 14.47B | 10.58B | 10.32B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 1.06B | 872.51M | 820.44M | 981.58M | 1.07B |
| Total Debt | 2.63B | 8.98B | 5.71B | 6.93B | 3.73B | 3.60B |
| Total Liabilities | 25.15B | 18.18B | 13.87B | 13.06B | 8.93B | 8.46B |
| Stockholders Equity | 1.87B | 1.58B | 1.25B | 1.20B | 1.34B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | 407.99M | 454.89M | 544.68M | 415.65M | 679.60M | 1.15B |
| Operating Cash Flow | 468.04M | 518.39M | 598.99M | 491.78M | 706.80M | 1.17B |
| Investing Cash Flow | -101.39M | -40.62M | -61.85M | -94.48M | -29.53M | -87.35M |
| Financing Cash Flow | -215.40M | -281.05M | -469.56M | -585.03M | -735.75M | -957.86M |
Virtu Financial Technical Analysis
Positive
50.65
Price Trends
57.78
Positive
52.43
Positive
44.01
Positive
Market Momentum
0.22
Positive
50.94
Neutral
41.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIRT, the sentiment is Positive. The current price of 50.65 is below the 20-day moving average (MA) of 60.42, below the 50-day MA of 57.78, and above the 200-day MA of 44.01, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 41.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIRT.
Virtu Financial Risk Analysis
Virtu Financial disclosed 47 risk factors in its most recent earnings report. Virtu Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Virtu Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $5.71B | 19.12 | 24.78% | 2.64% | 3.68% | 42.71% | |
76 Outperform | $9.11B | 7.43 | 41.25% | 2.88% | 27.58% | 36.35% | |
76 Outperform | $5.39B | 16.65 | 23.52% | 2.59% | 32.12% | 40.51% | |
73 Outperform | $5.44B | 22.14 | 42.00% | 3.88% | 13.69% | 12.33% | |
72 Outperform | $4.35B | 18.74 | 71.16% | 0.59% | 22.91% | 21.48% | |
69 Neutral | $9.10B | 12.87 | 19.31% | ― | 23.83% | 45.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
VIRT
Virtu Financial
58.73
16.31
38.44%
SNEX
StoneX Group
76.57
32.91
75.39%
MKTX
Marketaxess Holdings
162.30
-43.31
-21.07%
PIPR
Piper Sandler
75.80
-2.41
-3.09%
MC
Moelis
67.08
-0.24
-0.35%
PJT
PJT Partners
168.31
-12.29
-6.81%
Virtu Financial Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Virtu Financial Adds $500 Million Term Loan Facility
Neutral
Jul 23, 2026
Virtu Financial’s subsidiaries have amended their senior secured credit facility and completed an incremental first lien term loan, adding $500 million of senior secured first lien Term B‑2 loans on July 23, 2026 and lifting the total ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Virtu Financial Announces Strong Q2 Results and New Term Loan
Positive
Jul 15, 2026
On July 14, 2026, Virtu announced preliminary estimates for its second-quarter 2026 results, reporting expected net income of $285 million and normalized adjusted net income of $292 million for the quarter ended June 30, 2026. The company also pro...
Executive/Board ChangesShareholder Meetings
Virtu Financial Stockholders Back Board, Pay and Auditor
Positive
Jun 10, 2026
At its June 10, 2026 annual meeting of stockholders, Virtu Financial, Inc. reported the election of three Class II directors — Aaron Simons, Joseph J. Grano, Jr., and Joanne M. Minieri — to three-year terms expiring in 2029, reinforcin...
Executive/Board Changes
Virtu Financial Enhances Contract for Chief Financial Officer
Positive
Jun 9, 2026
On June 8, 2026, Virtu Financial’s subsidiary Virtu Financial Operating LLC entered into an amended and restated employment agreement with Chief Financial Officer Cindy Lee, setting her annual base salary at $500,000 and making her eligible ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.