Virtu Financial's second-quarter revenue rose 19.0% to $1.19 billion, but net income fell 2.7% to $284.9 million, according to unaudited results released today (Thursday). Operating expenses increased almost 30%, narrowing the company's net income margin to 23.9% from 29.3%.
The final figures closely matched the preliminary numbers Virtu published on July 14. The full release adds year-over-year comparisons and segment data that were absent from the earlier update.
Trading Income Rises 31% as GAAP Profit Slips
Trading income, net, rose 31.2% to $856.7 million from $652.8 million a year earlier. Adjusted Net Trading Income, a company-defined measure that removes direct trading costs, increased 26.4% to $717.9 million.
Normalized adjusted net income increased 19.4% to $291.5 million, while normalized adjusted earnings per share rose to $1.82 from $1.53. On a GAAP basis, diluted EPS slipped to $1.63 from $1.65.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Total revenue | $1.190bn | $999.6m | +19.0% |
| Trading income, net | $856.7m | $652.8m | +31.2% |
| Net income | $284.9m | $293.0m | -2.7% |
| Adjusted Net Trading Income | $717.9m | $567.7m | +26.4% |
| Adjusted EBITDA | $436.8m | $369.4m | +18.2% |
| Diluted EPS | $1.63 | $1.65 | -1.2% |
Source: Virtu Financial Q2 2026 earnings release. Figures are unaudited.
The quarter was weaker than the first three months of 2026. Virtu's first-quarter net income reached $346.6 million, putting the sequential decline at 17.8%. Revenue, however, increased 8.6% from the first quarter.
For the first half, revenue rose 24.4% to $2.29 billion and net income increased 30.9% to $631.5 million. Adjusted EBITDA climbed 38.9% to $957.4 million.
Market Making Provides Most of the Growth
Market Making generated $1.01 billion of revenue, up 28.3% from $786.6 million a year earlier. The segment accounted for about 85% of group revenue, while its adjusted net trading income increased 28.4% to $579.9 million.
Execution Services moved in the opposite direction on reported revenue, which fell 19.1% to $173.5 million. The comparison includes a $67.0 million gain from Virtu's sale of RFQ-hub in the second quarter of 2025.
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After the direct trading-cost adjustments, Execution Services' adjusted net trading income rose 18.7% to $138.0 million. Commissions and technology services revenue increased to $179.5 million from $153.9 million across the group.
Aaron Simons succeeded co-founder Douglas Cifu as chief executive after the prior-year quarter.
Higher Costs Reduce Margins
Total operating expenses rose 29.9% to $847.4 million. Employee compensation and payroll taxes increased 59.1% to $216.7 million, while brokerage, exchange and clearance costs rose 28.1% to $259.0 million.
Interest and dividend expense increased 24.2% to $205.3 million. These changes reduced the adjusted EBITDA margin to 60.8% from 65.1%, despite an 18.2% increase in adjusted EBITDA.
The absence of last year's RFQ-hub gain also explains part of the difference between growth in Virtu's adjusted results and the decline in GAAP profit. In 2025, the company reported full-year revenue of $3.63 billion and net income of $912.3 million.
Market Makers Expand Digital Asset Infrastructure
Virtu has been adding institutional crypto services alongside its market-making and execution businesses. Its Irish subsidiary received authorization under the EU's Markets in Crypto-Assets framework on June 2, and the company joined BitGo Prime's liquidity network on July 15.
Other liquidity providers are building around the same asset class. Flow Traders opened a 24-hour OTC desk for tokenized stocks and gold in March.
Standard Chartered completed its first digital asset prime brokerage trades with LMAX on July 1. The pilot covered spot Bitcoin and Ether trades with T+1 settlement.
Virtu's arrangement with BitGo separates custody and settlement from liquidity and pricing. Flow Traders' service focuses on continuous OTC pricing for tokenized assets. Virtu did not disclose how much revenue its digital asset activity contributed during the quarter.
Dividend Holds at $0.24 per Share
Virtu's board declared a quarterly dividend of $0.24 per share, payable September 15 to shareholders of record on September 1.
The company ended June with $1.13 billion in cash, cash equivalents and restricted cash. Long-term debt stood at $2.05 billion in aggregate principal, while total assets increased to $27.48 billion from $20.15 billion at the end of 2025.
Virtu began marketing a $400 million incremental first-lien term loan when it released its preliminary quarterly figures. The final earnings release did not say whether that financing had closed.
