Virtu’s shares rose 1.7%, a roughly flat reaction, as third-quarter results reflected lower market activity but continued earnings generation across both segments. Management reported no forward guidance; the quarter’s results came as volumes and volatility moderated from the first half.
- Adjusted net trading income was $704 million, or $11 million per day; Market Making contributed $9 million per day and Execution Services $2 million per day.
- Adjusted EBITDA was $438 million with a 62% margin; adjusted EPS was $1.77.
- Management said volumes and volatility declined quarter-over-quarter, while remaining above historical averages. U.S. equity volumes were down mid-teens and realized volatility fell more than 20%; Market Making ANT per day declined about 4% sequentially, per the analyst’s question.
- The cash compensation ratio was 23% for the quarter; year-to-date, it was 23%, with a total compensation ratio of 28%.
- Invested capital was $3.4 billion after a $500 million debt raise; trailing debt-to-EBITDA was 1.4x. Virtu maintained its quarterly dividend at $0.24 per share.
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