Virtu Financial (VIRT) AI Stock Analysis

• Market Cap: $6.32B
• Dividend Yield: 2.37%
• Average Volume (3M): 858.89K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.33
• Revenue Growth: 25.12%
• EPS Growth: 122.80%
• Country: US
• Employees: 969
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Capital Markets
• EPS (TTM): 1.53
• Shares Outstanding: 84,577,650
• 10 Day Avg. Volume: 801,830
• 30 Day Avg. Volume: 858,895
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 3.97
• Enterprise Value/Ebitda: 4.99
• 1Y Price Target: $46.29
• Price Target Upside: 14.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $47.00 ▲(16.25% Upside)

Virtu Financial's strong financial performance and strategic growth initiatives are the most significant factors driving its stock score. The company's robust profitability, efficient cash flow management, and low valuation make it an attractive investment. While the leadership transition introduces some uncertainty, the positive sentiment around the new CEO and ongoing strategic initiatives mitigate these concerns.

Positive Factors

Business Performance

Virtu's Execution Services business has become a successful exemplar of M&A integration and synergy generation with acquisitions enhancing their tech platforms and analytic tools.

Financial Performance

The company posted its sixth consecutive quarter of increasing revenue in its Execution Services, achieving its best result since early 2022.

Growth Initiatives

Newer business initiatives are accelerating, with contributions from options market-making, ETF blocks, and crypto significantly impacting the firm's strong performance.

Negative Factors

Earnings Outlook

The EPS estimate for Virtu Financial Inc's second quarter is reduced by 8% to $1.44, showing a decline in expected earnings.

Market Conditions

Concerns have risen that volumes and spreads could experience a meaningful decline in the second half of 2025, particularly in the retail channel.

Revenue Forecast

Market making revenues for Virtu Financial Inc are revised down by 6% due to subdued notional value traded across equity markets.

Virtu Financial Business Overview & Revenue Model

Company Description

Virtu Financial, Inc. (VIRT) is a leading technology-enabled market maker and liquidity provider in the global financial markets. Founded in 2008 and headquartered in New York City, the company operates in sectors such as electronic trading, financial technology, and capital markets. Virtu's core services include market making across various asset classes, including equities, fixed income, foreign exchange, and commodities, leveraging advanced algorithms and technology to facilitate efficient trading and liquidity.

How the Company Makes Money

Virtu Financial generates revenue primarily through its market-making activities, where it earns profits from the bid-ask spread when buying and selling securities. This involves providing liquidity by continuously quoting prices for various financial instruments, allowing other market participants to transact. The company also earns revenues from trading activities, including proprietary trading, where it trades its own capital to capture market opportunities. Additionally, Virtu benefits from transaction fees and commissions on trades executed on exchanges and other trading platforms. Significant partnerships with exchanges and trading venues enhance its trading capabilities, while robust technology infrastructure allows for high-frequency trading, optimizing profit margins.

Virtu Financial Financial Statement Overview

Summary

Virtu Financial demonstrates strong financial health with excellent profitability, efficient cash flow management, and moderate leverage. While revenue growth has been inconsistent, the company maintains high margins and robust cash flows, positioning it well within the capital markets industry.

Income Statement

Virtu Financial's income statement reveals strong profitability with a gross profit margin of 81.34% and a net profit margin of 27.95% for the TTM, indicating efficient cost management and healthy earnings. The EBIT and EBITDA margins are also robust at 30.74% and 69.74%, respectively. However, revenue growth has been volatile, showing a TTM growth rate of 0.77% after a decline the previous year, suggesting some instability in revenue generation.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.21, indicating a conservative leverage approach. The return on equity is impressive at 51.89% for the TTM, highlighting efficient use of equity. The equity ratio stands at 8.90%, slightly low, suggesting a risk of over-leverage in case of fluctuating market conditions. Overall, the balance sheet is stable but with potential vulnerability due to low equity support.

Cash Flow

Cash flow analysis shows strong operational performance with an operating cash flow to net income ratio of 1.25, indicating good cash generation relative to earnings. The free cash flow has grown significantly, with a TTM free cash flow of $986.52 million, up from $544.68 million the previous year, reflecting robust cash management. The free cash flow to net income ratio is 1.22, suggesting efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	2.88B	2.29B	2.36B	2.81B	3.24B
Gross Profit	1.86B	1.77B	1.39B	1.35B	1.69B	2.09B
EBITDA	1.48B	1.39B	1.05B	1.01B	1.35B	1.74B
Net Income	320.28M	276.42M	142.04M	265.03M	476.88M	649.20M
Balance Sheet
Total Assets	17.55B	15.36B	14.47B	10.58B	10.32B	9.97B
Cash, Cash Equivalents and Short-Term Investments	723.65M	872.51M	820.44M	981.58M	1.07B	889.56M
Total Debt	1.74B	1.74B	1.73B	1.80B	1.61B	1.64B
Total Liabilities	15.99B	13.87B	13.06B	1.80B	1.61B	1.64B
Stockholders Equity	1.31B	1.25B	1.20B	1.34B	1.55B	1.47B
Cash Flow
Free Cash Flow	956.86M	544.68M	454.00M	679.60M	1.15B	1.03B
Operating Cash Flow	1.01B	598.99M	491.78M	706.80M	1.17B	1.06B
Investing Cash Flow	-65.38M	-61.85M	-94.48M	-29.53M	-87.35M	-2.56M
Financing Cash Flow	-601.60M	-469.56M	-585.03M	-735.75M	-957.86M	-839.92M

Virtu Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIRT, the sentiment is Negative. The current price of 40.43 is below the 20-day moving average (MA) of 41.71, below the 50-day MA of 42.85, and above the 200-day MA of 38.91, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 20.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIRT.

Virtu Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRT	78 Outperform	$6.32B	9.39	28.75%	2.37%	25.12%	122.80%
IBKR	78 Outperform	$28.45B	33.51	19.15%	0.78%	12.30%	20.76%
SCHW	74 Outperform	$174.48B	25.88	15.59%	1.09%	4.64%	54.26%
TW	73 Outperform	$29.55B	48.17	9.51%	0.37%	27.97%	28.39%
SNEX	69 Neutral	$5.02B	17.75	16.01%	―	53.19%	23.89%
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%
MKTX	67 Neutral	$6.73B	30.55	16.41%	1.68%	8.30%	-14.39%

Virtu Financial Corporate Events

Virtu Financial Announces New CEO Appointment

On July 30, 2025, Virtu Financial announced that Aaron Simons, the current Chief Technology Officer, will be appointed as the new Chief Executive Officer effective August 1, 2025, succeeding Douglas A. Cifu. Mr. Cifu will transition to a consultant role until the end of the year to ensure a smooth transition. This leadership change is part of Virtu’s long-term planning and reflects the company’s confidence in Mr. Simons’ leadership and vision to continue building on the company’s momentum and strategic direction. Mr. Simons, who has been with Virtu since 2008, brings extensive experience in technology and trading, which is expected to benefit Virtu’s operations and market positioning.

Virtu Financial Confirms Key Decisions at Annual Meeting

On June 2, 2025, Virtu Financial, Inc. held its annual meeting of stockholders where several key decisions were made. The election of Class I directors for a three-year term, approval of executive compensation, and the continuation of annual advisory votes on executive pay were confirmed. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year 2025 was ratified, and amendments to the Management Incentive Plan were approved, impacting the company’s governance and compensation strategies.