Virtu Financial (VIRT) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 2024 results with adjusted net trading income (NTI) of $458M ($7.3M/day), adjusted EBITDA of $284M, and normalized adjusted EPS of $1.14; full-year NTI was $1.60B and EPS $3.55.

• Year-over-year, adjusted NTI grew 75%, adjusted EBITDA increased 186%, and normalized adjusted EPS rose 323% to $1.14.

• Market-making and Execution Services segments both posted robust growth, with market-making NTI up 23% quarter-over-quarter and Execution Services up 12%.

• Disciplined cost management and robust capital returns, including $57M in Q4 share repurchases and a $0.24 quarterly dividend.

• Growth initiatives in crypto, ETF block, options, and fixed income contributed significantly, with organic growth NTI at $787K/day, the highest since reporting began.

Financial highlights

• Q4 2024 adjusted NTI: $458M ($7.3M/day), up 75% year-over-year; market-making: $348M; Execution Services: $110M.

• Adjusted EBITDA for Q4: $284M (up 186% YoY); adjusted EBITDA margin: 61.9%–62%.

• Q4 normalized adjusted EPS: $1.14 (up from $0.27 YoY); full year normalized adjusted EPS: $3.55.

• Q4 net income: $176.1M; full year net income: $534.5M, up 102.5% YoY.

• Q4 total revenues: $834.3M, up 55.7% YoY; full year revenues: $2.88B, up 25.4%.

Outlook and guidance

• Positioned for further growth in 2025, with ongoing investments in technology, talent, and expansion of asset classes.

• Expect continued benefits from regulatory clarity, especially in digital assets, and a robust trading environment.

• Operating expense growth guided to low to mid-single digits, with incremental investments in crypto and European ETF block business.

• FY 2024 share buybacks totaled $172M, in line with guidance.

• Focus remains on capital returns, expense discipline, and leveraging organic growth initiatives.