New York, Jan 29, 2026, 14:50 EST — Regular session
- Virtu shares jumped roughly 6% following a sharp rise in fourth-quarter profit reported by the market maker
- Executives noted that trading-driven results fluctuate with market volatility and volumes, both of which were elevated in the quarter
- Investors are keeping an eye on whether these conditions persist through February, ahead of the next dividend record date on Feb. 27
Shares of Virtu Financial climbed 5.9% to $39.72 in afternoon trading Thursday, having earlier peaked at $40.78.
The shift drew fresh attention to the market-making trade: as markets grow choppier, volumes and spreads tend to widen, letting firms like Virtu rake in higher earnings per trade. But once things settle, that boost can vanish quickly.
During the earnings call, co-president Joe Molluso noted that “volatility was up, the VIX was up,” and equity share volumes increased. However, he warned that achieving a 100% return on incremental capital this quarter isn’t something he expects “to always be the case.” Investing.com
Virtu posted fourth-quarter net income of $280.6 million on revenues totaling $969.9 million. The firm also reported normalized adjusted earnings per share of $1.85, rising from $1.14 a year ago.
The firm reported trading income, net, climbed 22.2% year-over-year to $664.9 million.
Virtu also reported “adjusted net trading income,” a non-GAAP figure that excludes direct trading costs like exchange and clearing fees plus payments for order flow, coming in at $613.4 million for the quarter.
Execution Services, encompassing agency trading and venues, continues to sway investors seeking more stable fee revenue alongside market making. Executives noted the segment reached a “high watermark” and has delivered seven consecutive quarters of rising net trading income.
Virtu’s board announced a quarterly cash dividend of $0.24 per share, set for payment on March 16 to shareholders recorded by Feb. 27. The company also revealed it repurchased $135.3 million of its stock in 2025.
For a company reliant on capital deployment, the balance sheet remains crucial. Virtu reported finishing 2025 with roughly $1.13 billion in cash and restricted cash, alongside $2.07 billion in long-term debt.
Management also tackled questions about emerging areas like prediction markets. Molluso described the firm’s stance as “optimistic anytime there’s a new market,” but acknowledged the lack of “perfect regulatory or legal certainty.” Virtu is proceeding cautiously in how it gets involved.
But the situation works both ways. Should volatility fade and volumes shrink, with quoted spreads tightening, trading income can fall sharply. Regulatory changes affecting market structure or the introduction of new products might also limit returns, even if the firm is ready to scale up.
Investors will be eyeing whether the post-earnings rally can sustain itself in the coming session and through next week, as trading conditions shift. All eyes are also on Feb. 27, the record date for Virtu’s upcoming dividend.
