Virtu Financial, Inc. Q1 FY2025 earnings call

• Market making had its best quarter since Q1 2021, with global diversified operations including equities, options, energy, currencies, digital assets, etc.
• Virtu Execution Services (VES) had seventh straight quarter of increasing net trading income, with scalable products resonating with global buy-side and sell-side clients.
• Virtu Technology Services (VTS) deployed an agency fixed income RFQ platform, with key hires accelerating growth in capital markets.
• Retail participation in Q2 first few weeks was high, with a secular uptrend in retail engagement noted.
• VES is seen as having significant room to grow, potentially reaching a $2 million per day run rate in the medium term, and the share buyback program continues.

For the first quarter of 2025, adjusted net trading income totaled $497 million, or $8.3 million per day. Market making adjusted net trading income was $382 million, or $6.4 million per day. Execution Services adjusted net income was $115 million, or $1.9 million per day. Quarterly EBITDA was $320 million with an EBITDA margin of 64%.

• VES could achieve a $2 million per day run rate in the medium term.
• Continued share buyback program to compound earnings growth.
• Bullish on long-term retail engagement and the secular uptrend in retail participation.

Forward-looking statements are subject to risks, assumptions, and uncertainties outside the company's control. Actual results may materially differ from forward-looking statements.

Q: Chris Allen asked about market making NTI, retail sustainability, and balance between businesses.

A: Douglas Cifu and Joseph Molluso discussed balanced business performance, global diversification, and continued improvement in various segments.

Q: Dan Fannon inquired about confidence in VES reaching $2 million per day.

A: Douglas Cifu talked about product enhancements, cultural changes, and strategic hires driving VES growth.

Q: Ken Worthington asked about core non-customer market making.

A: Douglas Cifu discussed technology investment, internalization, and diversification in non-customer market making segments.

Q: Eli asked about crypto business product roadmap and competition.

A: Douglas Cifu compared Virtu's crypto offering to competitors, highlighting different approaches in product scaling and partnership models.