Skip to content
    VIRT
    Earnings call· Jun 2026(Q2 FY26)

    Virtu Financial Q2 FY26 earnings call VIRT

    Jul 30, 2026 Source

    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

    5

    • 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

    1

    • 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

    2
    CategoryTargetConfidence
    Quarterly dividend per share
    $0.24 per share
    medium materiality
    High
    Cash compensation ratio
    low to mid-20s
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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
    		————

    Operational metrics

    17
    Adjusted Net Trading Income (ANT) per day
    $11.6 million
    Q2 FY26

    Company-wide daily ANT.

    Total Adjusted Net Trading Income (ANT)
    $718 million
    Q2 FY26

    Total ANT for the quarter.

    Adjusted EBITDA
    $437 million
    Q2 FY26

    Company-wide adjusted EBITDA.

    Adjusted EBITDA margin
    61%
    Q2 FY26

    Company-wide adjusted EBITDA margin.

    Adjusted EPS
    $1.82
    Q2 FY26

    Company-wide adjusted EPS.

    Trailing 12-month Adjusted Net Trading Income (ANT) per day
    $10.4 million
    LTM Q2 FY26

    Represents an all-time high for Virtu.

    Trailing 12-month Adjusted EBITDA
    $1.7 billion
    LTM Q2 FY26

    Represents an all-time high for Virtu.

    Trailing 12-month Adjusted EPS
    $6.96
    LTM Q2 FY26

    Represents an all-time high for Virtu.

    Cash compensation ratio
    23%
    YTD Q2 FY26

    Stated as appropriate in the near term and within low to mid-20s guidance.

    Total compensation ratio
    28%
    YTD Q2 FY26

    Stated as appropriate in the near term.

    Invested capital
    $2.9 billion$270 million increase this quarter
    as of June 30, 2026

    Balance of invested capital.

    Average return on invested capital
    106%
    past year

    Return generated on invested capital.

    Total trading capital
    $3.4 billionup from $2 billion a year ago
    Current

    Includes recent term loan increase and retained earnings.

    Term loan increase
    $500 million
    Early July 2026

    Opportunistic increase to the term loan, which was oversubscribed.

    Trailing debt-to-EBITDA ratio
    1.5x
    Trailing

    Indicates modest leverage.

    Attrition rates
    multiyear lows
    Current

    Reflects reestablished reputation and culture shift.

    Hiring pace
    aggressively
    Next couple of years

    Company is hiring as fast as possible in key areas.

    What to watch in Q3 FY26

    3

    Hiring pace

    next quarter
    Currenthiring as fast as we can
    Targetcontinued 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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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'.

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