• Virtu Announces Second Quarter 2022 Results

    Source: Nasdaq GlobeNewswire / 28 Jul 2022 05:00:51   America/Chicago

    NEW YORK, July 28, 2022 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the second quarter ended June 30, 2022.

    Second Quarter 2022:

    • Net income of $148.9 million; Normalized Adjusted Net Income1 of $129.9 million
    • Basic and diluted earnings per share of $0.78; Normalized Adjusted EPS1 of $0.73
    • Total revenues of $604.7 million; Trading income, net, of $395.9 million; Adjusted Net Trading Income1 of $357.4 million
    • Adjusted EBITDA1 of $209.3 million; Adjusted EBITDA Margin1 of 58.6%
    • Share buybacks of $47.5 million, or 1.8 million shares, under the Share Repurchase Program2

    The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on September 15, 2022 to shareholders of record as of September 1, 2022.

    Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
    Note 2: Shares repurchased calculated on a settlement date basis.

    Financial Results

    Second Quarter 2022:

    Total revenues increased 10.2% to $604.7 million for this quarter, compared to $549.0 million for the same period in 2021. Trading income, net, increased to $395.9 million for the quarter compared to $384.8 million for the same period in 2021. Other, net, increased to $41.7 million for this quarter, compared to $11.5 million, for the same period in 2021, primarily due to gains on strategic investments. Net income totaled $148.9 million for this quarter, compared to net income of $108.9 million in the prior year quarter.

    Basic and diluted earnings per share for this quarter were both $0.78, compared to a basic and diluted earnings per share of $0.51 and $0.50, respectively, for the same period in 2021.

    Adjusted Net Trading Income increased 4.5% to $357.4 million for this quarter, compared to $341.8 million for the same period in 2021. Adjusted EBITDA increased 6.1% to $209.3 million for this quarter, compared to $197.3 million for the same period in 2021.

    Normalized Adjusted Net Income, removing one-time and non-cash items, increased 6.2% to $129.9 million for this quarter, compared to $122.3 million for the same period in 2021.

    Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.73 for this quarter, compared to $0.63 for the same period in 2021.

    Operating Segment Information

    The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

    Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

    Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

    Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

    The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and six months ended June 30, 2022 and 2021.

    Total revenues by segment
    (in thousands, unaudited)

      Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
      Market
    Making    		 Execution
    Services    		 Corporate Total Market
    Making    		 Execution
    Services    		 Corporate Total
    Trading income, net $390,263 $5,665 $— $395,928 $380,644 $4,188  $— $384,832
    Commissions, net and technology services  11,145  125,195  —  136,340  9,087  134,028   —  143,115
    Interest and dividends income  30,792  —  —  30,792  9,569  (24)  —  9,545
    Other, net  395  137  41,146  41,678  3,241  (62)  8,294  11,473
    Total Revenues $432,595 $130,997 $41,146 $604,738 $402,541 $138,130  $8,294 $548,965


                     
      Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
      Market
    Making    		 Execution
    Services    		 Corporate Total Market
    Making    		 Execution
    Services    		 Corporate Total
    Trading income, net $906,621 $11,614 $— $918,235 $1,181,926 $15,650 $— $1,197,576
    Commissions, net and technology services  20,194  270,801  —  290,995  23,217  311,547  —  334,764
    Interest and dividends income  51,775  29  —  51,804  16,469  72  —  16,541
    Other, net  568  298  44,100  44,966  4,653  100  7,903  12,656
    Total Revenues $979,158 $282,742 $44,100 $1,306,000 $1,226,265 $327,369 $7,903 $1,561,537

    Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
    (in thousands, unaudited)

      Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
      Market
    Making    		 Execution
    Services    		 Corporate Total Market
    Making    		 Execution
    Services    		 Corporate Total
    Trading income, net $390,263  $5,665  $— $395,928  $380,644  $4,188  $— $384,832 
    Commissions, net and technology services  11,145   125,195   —  136,340   9,087   134,028   —  143,115 
    Interest and dividends income  30,792   —   —  30,792   9,569   (24)  —  9,545 
    Brokerage, exchange, clearance fees and payments for order flow, net  (131,121)  (25,865)  —  (156,986)  (144,784)  (25,907)  —  (170,691)
    Interest and dividends expense  (47,355)  (1,361)  —  (48,716)  (22,442)  (2,529)  —  (24,971)
    Adjusted Net Trading Income $253,724  $103,634  $— $357,358  $232,074  $109,756  $— $341,830 


                     
      Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
      Market Making Execution Services Corporate Total Market Making Execution Services Corporate Total
    Trading income, net $906,621  $11,614  $— $918,235  $1,181,926  $15,650  $— $1,197,576 
    Commissions, net and technology services  20,194   270,801   —  290,995   23,217   311,547   —  334,764 
    Interest and dividends income  51,775   29   —  51,804   16,469   72   —  16,541 
    Brokerage, exchange, clearance fees and payments for order flow, net  (254,636)  (52,730)  —  (307,366)  (367,978)  (62,045)  —  (430,023)
    Interest and dividends expense  (88,382)  (2,872)  —  (91,254)  (46,436)  (2,563)  —  (48,999)
    Adjusted Net Trading Income $635,572  $226,842  $— $862,414  $807,198  $262,661  $— $1,069,859 

    Financial Condition

    As of June 30, 2022, Virtu had $849.8 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,825.8 million.

    Share Repurchase Program

    Since inception of the program in November 2020 through settlement date July 27, 2022, the Company repurchased approximately 27.4 million shares of Class A Common Stock and Virtu Financial Units for approximately $787.8 million. The Company has approximately $432.2 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

    Earnings Conference Call Information

    Virtu Financial will host a conference call to review its second quarter 2022 financial performance today, July 28th, at 7:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

    Website Information

    We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

    Non-GAAP Financial Measures and Other Items

    To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), we use the following non-GAAP measures of financial performance:

    • "Adjusted Net Trading Income", which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our market making activities.

    • "EBITDA", which measures our operating performance by adjusting Net Income to exclude financing interest expense on our long-term borrowings, debt issue cost related to debt refinancing, prepayment, and commitment fees, depreciation and amortization, amortization of purchased intangibles and acquired capitalized software, and income tax expense, and "Adjusted EBITDA", which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share based compensation and other expenses, which includes reserves for legal matters, COVID-19 one-time costs and donations and Other net, and “Adjusted EBITDA Margin”, which compares Adjusted EBITDA to Adjusted Net Trading Income.

    • “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items including gains and losses from strategic investments and the sales of businesses, and other non-cash items, assuming that all vested and unvested non-voting common interest units in Virtu Financial LLC have been exchanged for shares of our Class A common stock, and applying an effective tax rate, which was approximately 24%.

    • “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

    • they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
    • our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
    • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
    • they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
    • they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
    • they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

    Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Comprehensive Income (Unaudited)

      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except share and per share data)  2022   2021   2022   2021 
             
    Revenues:        
    Trading income, net $395,928  $384,832  $918,235  $1,197,576 
    Interest and dividends income  30,792   9,545   51,804   16,541 
    Commissions, net and technology services  136,340   143,115   290,995   334,764 
    Other, net  41,678   11,473   44,966   12,656 
    Total revenues  604,738   548,965   1,306,000   1,561,537 
             
    Operating Expenses:        
    Brokerage, exchange, clearance fees and payments for order flow, net  156,986   170,691   307,366   430,023 
    Communication and data processing  55,699   52,507   111,534   104,197 
    Employee compensation and payroll taxes  98,604   83,849   202,084   188,620 
    Interest and dividends expense  48,716   24,971   91,254   48,999 
    Operations and administrative  13,577   21,753   38,792   47,408 
    Depreciation and amortization  16,334   16,349   33,812   33,127 
    Amortization of purchased intangibles and acquired capitalized software  16,277   18,077   32,757   36,154 
    Termination of office leases  677   3,667   1,384   4,888 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,437   1,989   27,121   3,744 
    Transaction advisory fees and expenses  558   (3)  980   (17)
    Financing interest expense on long-term borrowings  22,089   20,113   43,422   39,605 
    Total operating expenses  430,954   413,963   890,506   936,748 
             
    Income before income taxes and noncontrolling interest  173,784   135,002   415,494   624,789 
    Provision for income taxes  24,888   26,095   66,674   106,650 
    Net income $148,896  $108,907  $348,820  $518,139 
             
    Noncontrolling interest  (63,729)  (45,997)  (151,397)  (215,824)
             
    Net income available for common stockholders $85,167  $62,910  $197,423  $302,315 
             
    Earnings per share:        
    Basic $0.78  $0.51  $1.78  $2.43 
    Diluted $0.78  $0.50  $1.77  $2.41 
             
    Weighted average common shares outstanding        
    Basic  104,960,826   119,681,845   107,133,079   120,865,624 
    Diluted  105,478,278   121,181,392   107,759,784   122,279,261 
             
    Comprehensive income:        
    Net income $148,896  $108,907  $348,820  $518,139 
    Other comprehensive income        
    Foreign exchange translation adjustment, net of taxes  (19,810)  66   (24,978)  (3,610)
    Net change in unrealized cash flow hedges gains, net of taxes  14,062   (7,206)  61,935   14,700 
    Comprehensive income $143,148  $101,767  $385,777  $529,229 
    Less: Comprehensive income attributable to noncontrolling interest  (60,173)  (42,929)  (164,332)  (220,545)
    Comprehensive income available for common stockholders $82,975  $58,838  $221,445  $308,684 


    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except percentages)  2022   2021   2022   2021 
             
    Reconciliation of Trading income, net to Adjusted Net Trading Income        
    Trading income, net $395,928  $384,832  $918,235  $1,197,576 
    Commissions, net and technology services  136,340   143,115   290,995   334,764 
    Interest and dividends income  30,792   9,545   51,804   16,541 
    Brokerage, exchange, clearance fees and payments for order flow, net  (156,986)  (170,691)  (307,366)  (430,023)
    Interest and dividends expense  (48,716)  (24,971)  (91,254)  (48,999)
    Adjusted Net Trading Income $357,358  $341,830  $862,414  $1,069,859 
             
    Reconciliation of Net Income to EBITDA and Adjusted EBITDA        
    Net income  148,896   108,907   348,820   518,139 
    Financing interest expense on long-term borrowings  22,089   20,113   43,422   39,605 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,437   1,989   27,121   3,744 
    Depreciation and amortization  16,334   16,349   33,812   33,127 
    Amortization of purchased intangibles and acquired capitalized software  16,277   18,077   32,757   36,154 
    Provision for income taxes  24,888   26,095   66,674   106,650 
    EBITDA $229,921  $191,530  $552,606  $737,419 
    Severance  757   1,020   2,759   3,039 
    Transaction advisory fees and expenses  558   (3)  980   (17)
    Termination of office leases  677   3,667   1,384   4,888 
    Other  (41,631)  (11,434)  (37,369)  (8,603)
    Share based compensation  18,997   12,552   32,709   25,330 
    Adjusted EBITDA $209,279  $197,332  $553,069  $762,056 
             
    Selected Operating Margins        
    Net Income Margin (1)  41.7%  31.9%  40.4%  48.4%
    EBITDA Margin (2)  64.3%  56.0%  64.1%  68.9%
    Adjusted EBITDA Margin (3)  58.6%  57.7%  64.1%  71.2%
             
    1 Calculated by dividing net income by Adjusted Net Trading Income.        
    2 Calculated by dividing EBITDA by Adjusted Net Trading Income.        
    3 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.        


    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)
    (Continued)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

      Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands, except share and per share data)  2022   2021   2022   2021 
             
    Reconciliation of Net Income to Normalized Adjusted Net Income        
    Net income $148,896  $108,907  $348,820  $518,139 
    Provision for income taxes  24,888   26,095   66,674   106,650 
    Income before income taxes and noncontrolling interest $173,784  $135,002  $415,494  $624,789 
    Amortization of purchased intangibles and acquired capitalized software  16,277   18,077   32,757   36,154 
    Debt issue cost related to debt refinancing, prepayment and commitment fees  1,437   1,989   27,121   3,744 
    Severance  757   1,020   2,759   3,039 
    Transaction advisory fees and expenses  558   (3)  980   (17)
    Termination of office leases  677   3,667   1,384   4,888 
    Other  (41,631)  (11,434)  (37,369)  (8,603)
    Share based compensation  18,997   12,552   32,709   25,330 
    Normalized Adjusted Net Income before income taxes $170,856  $160,870  $475,835  $689,324 
    Normalized provision for income taxes (1)  41,006   38,609   114,201   165,438 
    Normalized Adjusted Net Income $129,850  $122,261  $361,634  $523,886 
             
    Weighted Average Adjusted shares outstanding (2)  178,886,524   194,770,445   181,017,758   195,861,065 
             
    Normalized Adjusted EPS $0.73  $0.63  $2.00  $2.67 
             
    (1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
     
    (2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company's Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company's Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company's Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan and the Amended and Restated ITG 2007 Equity Plan during the three and six months ended June 30, 2022 and 2021 as well as warrants issued in connection with the Founder Member Loan during the three and six months ended June 30, 2021.


    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Financial Condition (Unaudited)

    (in thousands, except share data) June 30,
    2022    		 December 31,
    2021
         
    Assets    
    Cash and cash equivalents $810,649 $1,071,463 
    Cash and securities segregated under regulations and other  39,121  49,490 
    Securities borrowed  1,369,616  1,349,322 
    Securities purchased under agreements to resell  122,766  119,453 
    Receivables from broker-dealers and clearing organizations  1,419,628  1,026,807 
    Receivables from customers  226,933  146,476 
    Trading assets, at fair value  5,180,721  4,256,955 
    Property, equipment and capitalized software, net  86,056  89,595 
    Operating lease right-of-use assets  208,476  225,328 
    Goodwill  1,148,926  1,148,926 
    Intangibles (net of accumulated amortization)  353,575  386,332 
    Deferred taxes  141,922  158,518 
    Other assets  307,225  291,306 
    Total assets  11,415,614  10,319,971 
         
    Liabilities and equity    
    Liabilities    
    Short-term borrowings, net  157,114  61,510 
    Securities loaned  1,049,609  1,142,048 
    Securities sold under agreements to repurchase  501,193  514,325 
    Payables to broker-dealers and clearing organizations  704,897  571,526 
    Payables to customers  106,969  54,999 
    Trading liabilities, at fair value  4,471,229  3,510,779 
    Tax receivable agreement obligations  237,938  259,282 
    Accounts payable and accrued expenses and other liabilities  396,128  457,942 
    Deferred tax liabilities  73  65 
    Operating lease liabilities  257,673  278,745 
    Long-term borrowings, net  1,792,383  1,605,132 
    Total liabilities  9,675,206  8,456,353 
         
    Total equity  1,740,408  1,863,618 
         
    Total liabilities and equity $11,415,614 $10,319,971 
         
      As of June 30, 2022
    Ownership of Virtu Financial LLC Interests: Interests %
    Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units  108,175,982  61.0%
    Non-controlling Interests (Virtu Financial LLC)  69,123,361  39.0%
    Total Virtu Financial LLC Interests  177,299,343  100.0%


    About Virtu Financial, Inc.

    Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

    Cautionary Note Regarding Forward-Looking Statements

    This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic and governmental and other responses thereto; fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

    CONTACT

    Investor & Media Relations
    Andrew Smith
    investor_relations@virtu.com


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