Virtu Financial (VIRT)
NYSE:VIRT
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Virtu Financial
(NYSE:VIRT)
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Rating:74Outperform
Price Target:
$54.00
▲(6.61% Upside)
Action:ReiteratedDate:05/02/26
The score is driven primarily by solid financial performance (strong profitability and cash-flow support, tempered by leverage and cyclicality) and attractive valuation (very low P/E with a ~2% dividend). Earnings-call commentary supports momentum but underscores sustainability risk due to market-environment dependence and potential cost pressure; technicals are constructive longer-term but neutral near-term.
Positive Factors
Strong cash generation
Virtu’s free cash flow nearly matches net income and has grown materially year-over-year, indicating high earnings quality and recurring cash ability to fund capital deployment, dividends, and hiring without relying on one-time financing — a durable support for operations.
Negative Factors
Elevated leverage
Despite improvement, meaningful debt relative to equity leaves the firm exposed to funding and interest-rate stress and reduces financial flexibility. High leverage amplifies profit volatility and can constrain capital returns if trading environments weaken over the cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Virtu’s free cash flow nearly matches net income and has grown materially year-over-year, indicating high earnings quality and recurring cash ability to fund capital deployment, dividends, and hiring without relying on one-time financing — a durable support for operations.
Read all positive factors
Virtu Financial (VIRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.44B
Dividend Yield2.88%
Average Volume (3M)1.22M
Price to Earnings (P/E)5.2
Beta (1Y)0.49
Revenue Growth28.84%
EPS Growth73.53%
CountryUS
Employees969
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)6.28
Shares Outstanding86,602,646
10 Day Avg. Volume1,560,940
30 Day Avg. Volume1,218,196
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 Cap1.86
Enterprise Value/Revenue3.56
Enterprise Value/Gross Profit5.95
Enterprise Value/Ebitda7.43
Forecast
1Y Price Target
$50.50Price Target Upside-0.30% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5.63
Revenue Forecast (FY)$2.22B
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call portrayed a very strong quarter driven by record adjusted net trading income, robust adjusted EBITDA and EPS, high returns on capital, meaningful capital infusion and clear momentum in execution services and hiring. Management balanced these achievements with cautionary commentary about the outsized role of a favorable market environment, potential expense increases from higher compensation, and quarter‑to‑quarter variability that creates uncertainty about sustainability through the cycle.Positive Updates
Record Adjusted Net Trading Income (ANT)
Adjusted net trading income of $12.9 million per day, totaling $787 million for Q1 2026 — the highest quarter total ever for Virtu.
Negative Updates
Environment-Dependent Performance and Sustainability Uncertainty
Management repeatedly emphasized that the exceptionally strong quarter was aided by a very favorable operating environment and headline volatility; executives cautioned that results are environment‑dependent and sustainability of record ANT through the cycle is uncertain.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Adjusted Net Trading Income (ANT)
Adjusted net trading income of $12.9 million per day, totaling $787 million for Q1 2026 — the highest quarter total ever for Virtu.
Read all positive updates
Company Guidance
Management's guidance focused on continued capital and talent expansion while preserving shareholder returns and profitability: they will maintain the quarterly dividend of $0.24/sh and keep expanding the capital base (having added >$500M of new trading capital over the past seven months to reach $2.6B of invested capital as of March 31), pursue a medium‑term (roughly 3‑year) push toward prior capacity targets (discussed in the context of a ~$4B trading‑capital objective) and a through‑the‑cycle ANT goal of ~$10.0M/day, grow headcount toward ~1,100 this year and deliberately support higher cash compensation (Q1 cash comp ratio 22%) to hire and retain talent, all while deploying capital to maximize returns (trailing‑12‑month return on capital ~107%; return on total capital >100%) and sustaining strong profitability (Q1 ANT $12.9M/day, Q1 ANT $787M total; Market Making ANT $10.4M/day; Execution Services ANT $2.5M/day (2.1M TTM); Q1 adjusted EBITDA $521M at a 66% margin; Q1 adjusted EPS $2.24; TTM adjusted EBITDA $1.6B and adj. EPS $6.66).Virtu Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.89B | 3.63B | 2.88B | 2.29B | 2.36B | 2.81B |
| Gross Profit | 2.33B | 1.74B | 1.77B | 1.39B | 1.35B | 1.69B |
| EBITDA | 1.86B | 1.35B | 1.39B | 1.05B | 1.01B | 1.35B |
| Net Income | 550.99M | 468.36M | 276.42M | 142.04M | 265.03M | 476.88M |
Balance Sheet | ||||||
| Total Assets | 25.12B | 20.15B | 15.36B | 14.47B | 10.58B | 10.32B |
| Cash, Cash Equivalents and Short-Term Investments | 973.23M | 1.06B | 872.51M | 820.44M | 981.58M | 1.07B |
| Total Debt | 4.64B | 8.98B | 5.71B | 6.93B | 3.73B | 3.60B |
| Total Liabilities | 22.92B | 18.18B | 13.87B | 13.06B | 8.93B | 8.46B |
| Stockholders Equity | 1.73B | 1.58B | 1.25B | 1.20B | 1.34B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | 1.06B | 1.30B | 544.68M | 415.65M | 679.60M | 1.15B |
| Operating Cash Flow | 1.09B | 1.36B | 598.99M | 491.78M | 706.80M | 1.17B |
| Investing Cash Flow | -550.02M | 3.63M | -61.85M | -94.48M | -29.53M | -87.35M |
| Financing Cash Flow | -196.10M | -271.18M | -469.56M | -585.03M | -735.75M | -957.86M |
Virtu Financial Technical Analysis
Positive
50.65
Price Trends
42.54
Positive
38.76
Positive
38.33
Positive
Market Momentum
2.64
Negative
74.00
Negative
75.76
Neutral
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 50.65 is above the 20-day moving average (MA) of 46.56, above the 50-day MA of 42.54, and above the 200-day MA of 38.33, indicating a bullish trend. The MACD of 2.64 indicates Negative momentum. The RSI at 74.00 is Negative, neither overbought nor oversold. The STOCH value of 75.76 is Neutral, 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 | $5.43B | 27.05 | 18.76% | 1.66% | 3.74% | -8.43% | |
75 Outperform | $5.66B | 19.90 | 22.08% | 1.63% | 31.21% | 32.50% | |
75 Outperform | $3.74B | 15.14 | 87.49% | 0.58% | 21.44% | 17.50% | |
74 Outperform | $7.44B | 5.19 | 69.74% | 2.88% | 28.84% | 73.53% | |
74 Outperform | $8.28B | 5.77 | 16.43% | ― | 32.54% | 22.72% | |
73 Outperform | $5.21B | 27.97 | 42.05% | 3.69% | 19.19% | 26.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
VIRT
Virtu Financial
48.12
7.18
17.53%
SNEX
StoneX Group
105.19
43.57
70.71%
MKTX
Marketaxess Holdings
152.87
-70.26
-31.49%
PIPR
Piper Sandler
79.42
19.34
32.19%
MC
Moelis
64.76
12.87
24.81%
PJT
PJT Partners
154.84
13.19
9.31%
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.