What is the long-term outlook for the cash compensation ratio, given it's up year-over-year?

Management reiterated guidance for a cash compensation ratio in the low to mid-20s, noting that the year-to-date 23% is within this range. They emphasized a top-down approach to accruals that are trued up later in the year. “We've guided to low to mid-20s compensation ratio on a cash basis, which I think for a business like ours is market and very reasonable.”

Can management discuss the current market environment and specific asset classes generating higher returns or interest?

Joe Molluso highlighted continued growth in crypto, options, and block ETFs. He also noted strong performance in global equities (retail and proprietary trading) and the consistent contribution from Execution Services, which has been above $2 million per day for three consecutive quarters. “So crypto and options and block ETF. But I think the emphasis, again, through hiring, through accessing markets, through the growth of capital has been pretty global and pretty widespread.”

Where is Virtu in its hiring process, and can more context be provided on the low attrition rates?

Aaron Simons stated that Virtu is hiring as fast as possible across all key areas (quants, researchers, traders, engineers) and expects this aggressive pace to continue for at least the next couple of years. Low attrition rates reflect a positive culture shift recognized by employees and the talent pool. “But I would say, at least for the next couple of years, you can expect us to be hiring pretty aggressively.”

VIRT

Virtu Financial (VIRT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 30, 2026

Source: earnings call transcript

Executive summary

Virtu Financial Q2 FY26 — Record Trailing 12-Month Performance and Capital Growth

Virtu Financial reported a strong Q2 FY26, achieving record trailing 12-month performance across key metrics, driven by favorable market conditions and strategic investments. The firm significantly grew its trading capital base through retained earnings and an opportunistic term loan increase, while maintaining a focus on talent acquisition and technology infrastructure. Management expressed confidence in continued organic capital growth and deployment across broad-based market opportunities.

Highlights

Total trading capital increased to $3.4 billion, up from $2 billion a year ago.
Adjusted Net Trading Income (ANT) was $11.6 million per day, totaling $718 million for the quarter.
Adjusted EBITDA reached $437 million, representing a 61% margin.
Adjusted EPS was $1.82 for the quarter.
Trailing 12-month ANT per day of $10.4 million, adjusted EBITDA of $1.7 billion, and adjusted EPS of $6.96, all representing all-time highs.

Concerns

The year-to-date cash compensation ratio increased to 23%, up from closer to 20% year-over-year, though still within management's guided range.

Guidance & targets

Category	Target	Timeline	Confidence
Quarterly dividend per share	$0.24 per share medium materiality	Ongoing	High
Cash compensation ratio	low to mid-20s medium materiality	Near to midterm	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Market Making Benefited from favorable market conditions and strong execution. Adjusted Net Trading Income (ANT) per day: $9.4 million	—	—	—	—
Execution Services Benefited from favorable market conditions and strong execution, reaching consistent levels above $2 million per day for three consecutive quarters. Adjusted Net Trading Income (ANT) per day: $2.2 million	—	—	—	—

What to watch in Q3 FY26

Hiring pace

next quarter

Current hiring as fast as we can

Target continued aggressive hiring

Why it matters

Indicates continued investment in growth and talent, crucial for expanding market opportunities and technological capabilities.

But I would say, at least for the next couple of years, you can expect us to be hiring pretty aggressively.

Find out whether VIRT delivers this. Inve re-checks your case every morning.

Q&A highlights

How aggressive can Virtu be with its trading capital build, and how quickly will the $500 million term loan proceeds be deployed?

Management stated that further capital accumulation will primarily come from free cash flow generation, with the recent $500 million term loan being an opportunistic raise due to attractive market conditions. The capital is actively deployed, and the current debt level is sustainable.

“And in the debt markets and the leveraged loan markets and the high-yield markets, you raise money when you can, right, not when you have to, and we did that.”

asked by Patrick Moley · answered by Joseph Molluso

2 min read 5 chapters

Detailed narrative

Strategic Growth Pivot and Capital Expansion

Virtu Financial announced a year ago its pivot towards growth, focusing on investing in infrastructure, acquiring talent, and growing its capital base. The company reported substantial progress, with total trading capital increasing to $3.4 billion from $2 billion a year ago, driven by retained earnings and an opportunistic $500 million term loan increase in early July.

Management plans to continue accumulating trading capital organically through free cash flow.

Talent Acquisition and Culture Shift

Talent acquisition efforts are proceeding as planned, with the firm reestablishing its reputation as a technology and trader-led company. This has resulted in multiyear low attrition rates and increased interest from the talent pool. The company expects to continue aggressive hiring in key areas such as quants, researchers, traders, engineers, and developers for at least the next couple of years.

Robust Profitability and Operating Performance

For Q2 FY26, Virtu generated adjusted net trading income (ANT) of $11.6 million per day, totaling $718 million. This led to $437 million in adjusted EBITDA, representing a 61% margin, and adjusted EPS of $1.82. The trailing 12-month figures for ANT per day ($10.4 million), adjusted EBITDA ($1.7 billion), and adjusted EPS ($6.96) all represent all-time highs for the company.

Market Conditions and Broad-Based Opportunities

Both the Market Making and Execution Services segments benefited from favorable market conditions and strong execution. Management highlighted continued growth in areas like crypto, options, and block ETFs, alongside strong performance in global equities (retail and proprietary trading). The firm's strategy is to broadly deploy capital across all markets, leveraging its technology and flat structure for opportunistic allocation.

Approach to Perpetual Futures Market

Regarding the potential development of regulated perpetual futures in the U.S., Virtu maintains an agnostic stance. Historically, new ways to trade and market fragmentation have generally led to increased volumes. The company's strategy is to be connected to all electronically tradable products, ready to price and shift liquidity as these markets evolve, without taking a view on whether a product is inherently 'better' or 'worse'.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.