Virtu Financial (VIRT)
NYSE:VIRT
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Virtu Financial
(NYSE:VIRT)
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Rating:73Outperform
Price Target:
$53.00
▲(8.30% Upside)
Action:UpgradedDate:02/21/26
The score is driven by attractive valuation (low P/E with a dividend) and constructive technical momentum (trading above key moving averages with positive MACD). Financials are solid but held back by historically volatile earnings/cash flows and still-elevated leverage despite improvement. The latest earnings call was broadly positive with record results and supportive guidance, tempered by market-condition sensitivity and cost/regulatory risks.
Positive Factors
Diversified market-making and execution franchise
Virtu's cross-asset, technology-driven market making and agency execution model creates durable revenue optionality across cycles. Proprietary low-latency systems and multi-venue liquidity provision reduce single-asset dependence, supporting stable fee and spread capture over 2–6 months despite episodic market swings.
Negative Factors
Elevated leverage despite improvement
Although leverage has improved materially, remaining elevated debt levels constrain balance-sheet flexibility and increase vulnerability to funding or rate shocks. High leverage can force more conservative capital choices and raises refinancing and covenant risk in adverse market scenarios over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified market-making and execution franchise
Virtu's cross-asset, technology-driven market making and agency execution model creates durable revenue optionality across cycles. Proprietary low-latency systems and multi-venue liquidity provision reduce single-asset dependence, supporting stable fee and spread capture over 2–6 months despite episodic market swings.
Read all positive factors
Virtu Financial (VIRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.57B
Dividend Yield2.88%
Average Volume (3M)1.06M
Price to Earnings (P/E)6.1
Beta (1Y)0.46
Revenue Growth27.66%
EPS Growth131.25%
CountryUS
Employees969
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)1.85
Shares Outstanding86,602,646
10 Day Avg. Volume852,937
30 Day Avg. Volume1,058,066
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.79
Price to Sales (P/S)0.78
P/FCF Ratio2.19
Enterprise Value/Market Cap2.43
Enterprise Value/Revenue5.07
Enterprise Value/Gross Profit8.60
Enterprise Value/Ebitda10.21
Forecast
1Y Price Target
$46.33Price Target Upside-5.33% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)5.43
Revenue Forecast (FY)$2.18B
Virtu Financial Business Overview & Revenue Model
Company Description
Virtu Financial, Inc., a financial services company, provides data, analytics, and connectivity products to clients worldwide. The company operates in two segments, Market Making and Execution Services. Its product suite includes offerings in exec...
How the Company Makes Money
Virtu makes money primarily through (1) market making and (2) agency execution/technology services. (1) Market making: Virtu continuously posts buy and sell quotes across many instruments and venues. It earns trading income when it buys at one pri...
Virtu Financial Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial results: record-high ANTI for the quarter and year, high adjusted EBITDA and margins, successful capital deployment with very high returns, and continued VES momentum. The main cautions were a sequential decline in quoted 605 spreads for retail flow, increased compensation expense, reliance on a favorable market environment (which may not persist), limited disclosure on detailed asset-class contributions, and regulatory uncertainty around new markets. Overall, positives (record revenues, margins, capital returns, and VES progress) substantially outweighed the lowlights, though several risks and transparency limitations were noted.Positive Updates
Record Quarterly and Annual Trading Income
Adjusted net trading income (ANTI) of $9.7 million per day in Q4 2025, totaling $613 million for the quarter (the highest quarterly total since Q1 2021). Full-year 2025 ANTI of $8.6 million per day, totaling $2.1 billion.
Negative Updates
Sequential Decline in Quoted 605 Spreads
Management noted a sequential decline in the dollar value of quoted 605 spreads for the retail flow business during the quarter, indicating some weakness in that publicly reported metric despite overall strong results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Trading Income
Adjusted net trading income (ANTI) of $9.7 million per day in Q4 2025, totaling $613 million for the quarter (the highest quarterly total since Q1 2021). Full-year 2025 ANTI of $8.6 million per day, totaling $2.1 billion.
Read all positive updates
Company Guidance
Management's guidance emphasized growing the firm's trading capital, investing in infrastructure and talent, and dynamically deploying incremental capital while maintaining the quarterly dividend of $0.24 per share; they reiterated a long‑term, through‑the‑cycle ANTI target of $10.0 million per day and a VES through‑the‑cycle target of $2.0 million per day. Key metrics cited to support that guidance included Q4 ANTI of $9.7M per day ($613M total) and full‑year 2025 ANTI of $8.6M per day ($2.1B), Market Making ANTI of $7.8M/day in Q4 ($6.7M/day for FY), VES at $2.0M/day in Q4 ($1.9M/day FY), adjusted EBITDA of $442M (72% margin) in Q4 and $1.4B (65% margin) for FY, adjusted EPS of $1.85 (Q4) and $5.73 (FY), a full‑year cash compensation ratio of 19%, and an increase in invested capital of ~$625M in 2025 (≈$448M in H2) with an average return of ~100% on that capital (management noted prior incremental returns could settle in the ~50–70% range and that total debt was increased by ~$300M to support capital expansion).Virtu Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
55
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.63B | 2.88B | 2.29B | 2.36B | 2.81B |
| Gross Profit | 1.74B | 1.77B | 1.39B | 1.35B | 1.69B |
| EBITDA | 1.35B | 1.39B | 1.05B | 1.01B | 1.35B |
| Net Income | 468.36M | 276.42M | 142.04M | 265.03M | 476.88M |
Balance Sheet | |||||
| Total Assets | 20.15B | 15.36B | 14.47B | 10.58B | 10.32B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 872.51M | 820.44M | 981.58M | 1.07B |
| Total Debt | 8.98B | 5.71B | 6.93B | 3.73B | 3.60B |
| Total Liabilities | 18.18B | 13.87B | 13.06B | 8.93B | 8.46B |
| Stockholders Equity | 1.58B | 1.25B | 1.20B | 1.34B | 1.55B |
Cash Flow | |||||
| Free Cash Flow | 1.30B | 544.68M | 415.65M | 679.60M | 1.15B |
| Operating Cash Flow | 1.36B | 598.99M | 491.78M | 706.80M | 1.17B |
| Investing Cash Flow | 3.63M | -61.85M | -94.48M | -29.53M | -87.35M |
| Financing Cash Flow | -271.18M | -469.56M | -585.03M | -735.75M | -957.86M |
Virtu Financial Technical Analysis
Positive
48.94
Price Trends
40.93
Positive
37.64
Positive
38.06
Positive
Market Momentum
1.99
Negative
79.33
Negative
95.55
Negative
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 48.94 is above the 20-day moving average (MA) of 42.82, above the 50-day MA of 40.93, and above the 200-day MA of 38.06, indicating a bullish trend. The MACD of 1.99 indicates Negative momentum. The RSI at 79.33 is Negative, neither overbought nor oversold. The STOCH value of 95.55 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.29B | 27.05 | 18.76% | 1.66% | 3.96% | -20.33% | |
74 Outperform | $7.21B | 5.77 | 16.43% | ― | 32.53% | 13.38% | |
74 Outperform | $5.81B | 20.12 | 22.08% | 1.63% | 12.77% | 36.43% | |
73 Outperform | $7.57B | 6.06 | 32.56% | 2.88% | 27.66% | 131.25% | |
71 Outperform | $4.91B | 22.13 | 44.30% | 3.69% | 51.19% | 456.59% | |
71 Outperform | $3.55B | 23.88 | 84.45% | 0.58% | 23.16% | 64.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
VIRT
Virtu Financial
48.94
14.25
41.07%
SNEX
StoneX Group
91.62
42.30
85.77%
MKTX
Marketaxess Holdings
176.85
-30.07
-14.53%
PIPR
Piper Sandler
81.56
27.11
49.78%
MC
Moelis
61.49
12.78
26.23%
PJT
PJT Partners
146.74
18.19
14.15%
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.