Skip to content
    VIRT
    Earnings call· Mar 2026(Q1 FY26)

    Virtu Financial Q1 FY26 earnings call VIRT

    Apr 29, 2026 Source

    Executive summary

    Virtu Financial Q1 FY26 — Record Adjusted Net Trading Income and EPS

    Virtu Financial delivered record Q1 FY26 results, driven by favorable market conditions and strategic investments in infrastructure, talent, and capital. The company's diversified market making and execution services businesses performed strongly, with a focus on expanding its capital base and aggressively hiring to support continued growth. Management emphasized the firm's ability to outperform in various market environments due to these ongoing investments.

    Highlights

    5

    • Adjusted Net Trading Income (ANT) reached a record $787 million for the quarter.

    • Adjusted EBITDA was $521 million, representing a robust 66% margin.

    • Adjusted EPS hit an all-time quarterly high of $2.24.

    • Maintained a return on total capital in excess of 100% over the past year.

    • Execution Services (VES) achieved $2.5 million per day in ANT, marking its eighth consecutive quarter of growth.

    Guidance & targets

    3
    CategoryTargetConfidence
    Quarterly Dividend Per Share
    $0.24
    medium materiality
    High
    Total Headcount
    close to 1,100
    low materiality
    Medium
    AI Productivity Impact
    material impact
    low materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Market Making
    Benefited from generally favorable market conditions and strong execution, with continued outstanding performance and growth in proprietary market making, not solely dependent on retail investor participation.
    Adjusted Net Trading Income per day: $10.4 million
    		————
    Execution Services
    Achieved its eighth consecutive quarter of increased total Adjusted Net Trading Income, reflecting investments in technology, client acquisition, and product offering expansion. The business has grown through the cycle with significant momentum.
    Adjusted Net Trading Income per day: $2.5 million (Q1)Adjusted Net Trading Income per day: $2.1 million (TTM)
    		————

    Operational metrics

    15
    Adjusted Net Trading Income
    $787 millionhighest quarter total ever
    Q1 FY26

    Record quarterly performance.

    Adjusted Net Trading Income per day
    $12.9 million
    Q1 FY26

    Average daily Adjusted Net Trading Income.

    Adjusted EBITDA
    $521 million
    Q1 FY26

    Robust profitability for the quarter.

    Adjusted EBITDA Margin
    66%
    Q1 FY26

    Strong margin performance.

    Adjusted EPS
    $2.24all-time quarterly high
    Q1 FY26

    Record earnings per share.

    Adjusted EBITDA
    $1.6 billionhigh since early 2021
    LTM

    Trailing 12-month Adjusted EBITDA.

    Adjusted EBITDA Margin
    66%
    LTM

    Trailing 12-month Adjusted EBITDA margin.

    Adjusted EPS
    $6.66high since early 2021
    LTM

    Trailing 12-month Adjusted EPS.

    Cash Compensation Ratio
    22%within historical range
    Q1 FY26

    Reflects focus on retaining and acquiring top talent across the organization.

    Invested Capital
    $2.6 billion
    as of March 31

    Capital base as of quarter end.

    Return on Invested Capital
    107%
    past year

    Average return on capital over the last 12 months.

    New Trading Capital Added
    $500 million
    last 7 months

    Investment in expanding the capital base to support growth.

    Quarterly Dividend Per Share
    $0.24
    Q1 FY26

    Dividend maintained for the quarter.

    Headcount
    close to 1,100
    FY26

    Target for total employee count by year-end, reflecting aggressive hiring across trading, quant, research, and software development.

    AI Productivity Impact
    material impact
    coming year or 2

    Expected timeframe for AI to materially impact software developer productivity by assisting high-quality engineers with boilerplate tasks and explanations.

    What to watch in Q2 FY26

    5

    Headcount Growth

    FY26
    CurrentCurrently aggressively hiring
    TargetClose to 1,100 employees

    Why it matters

    Indicates progress on strategic growth plan and talent acquisition.

    I think this year, we hope to get our headcount close to 1,100.

    Q&A highlights

    6

    Given the record ANT and robust environment, how sustainable is this performance, and which asset classes drove the outperformance?

    Management stated the environment was robust and they outperformed across all asset classes, driven by broad-based growth and investments, not just specific areas like crypto or options. They emphasized that the increased trading capital was a huge factor in achieving the Q1 P&L.

    “Really what I tried to highlight in the introductory remarks was you should think of this as what would have happened in the counterfactual world where we didn't add $500 million of new trading capital. Our P&L would not have been what it was in the first quarter.”

    asked by Patrick Moley · answered by Joseph Molluso

    2 min read7 chapters

    Detailed Narrative

    01

    Q1 Performance Highlights

    Virtu Financial reported its highest-ever quarterly Adjusted Net Trading Income (ANT) of $787 million, driven by favorable market conditions. This translated into a robust $521 million in Adjusted EBITDA, representing a 66% margin, and an all-time quarterly high Adjusted EPS of $2.24. The firm also maintained a return on total capital exceeding 100% over the past year, underscoring strong operating leverage.

    02

    Strategic Growth Initiatives

    Management emphasized its strategy to grow through continuous investment in infrastructure, acquiring top talent, and expanding its capital base. Over the last seven months, the company added over $500 million in new trading capital, which was cited as a significant factor in the quarter's strong performance and future outperformance in various market environments.

    03

    Execution Services Momentum

    The Execution Services (VES) segment demonstrated significant momentum, achieving $2.5 million per day in ANT for Q1, and $2.1 million on a trailing 12-month basis. This marks the eighth consecutive quarter of increased total ANT for VES, attributed to investments in technology, client acquisition, and product offering expansion, with the business growing through various market cycles.

    04

    Capital Deployment and Returns

    Virtu's invested capital stood at $2.6 billion as of March 31, generating a 107% average return over the past year. The company plans to continue expanding its capital base and deploying it where opportunities are greatest, while also maintaining its quarterly dividend of $0.24 per share. This reflects a commitment to both growth and shareholder returns.

    05

    AI and Technology Adoption

    The company is actively exploring the use of generative and agentic AI, particularly for enhancing software developer productivity. While cautious about introducing "AI-generated slop," management expects a material productivity impact within the next one to two years by pairing high-quality engineers with AI tools for boilerplate tasks and assistance.

    06

    Risk Management Philosophy

    Management clarified that the strong Q1 results were not due to an increased risk appetite or changes in risk management practices. The firm's risk profile has not materially changed, and its market-making strategies remain highly automated and backed by statistical research, rather than taking on higher-risk positions.

    07

    Hiring and Compensation Strategy

    Virtu is aggressively hiring across trading, quant, research, and software development roles, aiming for a headcount close to 1,100 this year. The cash compensation ratio of 22% for Q1 reflects a deliberate strategy to attract and retain top talent with competitive compensation, which management views as a positive indicator of growth execution.

    AI-generated summary of the company’s earnings call. Not investment advice.