📊 VIRT Key Takeaways
Is Virtu Financial, Inc. (VIRT) a Good Investment?
Virtu exhibits explosive revenue growth of 488.7% but alarming net income decline of 52% YoY, suggesting significant quality-of-earnings issues in its market-making operations. Elevated leverage (1.17x Debt/Equity) combined with negative operating and free cash flows creates financial fragility despite strong operating margins.
Why Buy Virtu Financial, Inc. Stock? VIRT Key Strengths
- Exceptional revenue growth of 488.7% YoY demonstrates market opportunity capture
- Strong operating margin of 37.4% shows operational efficiency at scale
- Adequate interest coverage ratio of 11.8x indicates debt service capacity
- Insider activity with 9 Form 4 filings suggests management confidence
VIRT Stock Risks: Virtu Financial, Inc. Investment Risks
- Net income collapsed 52% YoY despite massive revenue surge - fundamental disconnect indicating deteriorating earnings quality
- Negative operating cash flow (-$149K) and negative free cash flow (-$5.8M) despite reported profitability - cash generation crisis
- Dangerous leverage with Debt/Equity of 1.17x and liabilities representing 91.2% of assets leaves minimal equity cushion
- Extremely low ROA of 0.7% on $25.1B asset base indicates severe capital inefficiency
- Business model vulnerability to market volatility - proprietary trading/market-making performance tied to trading volumes
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate earnings quality
- Net income sustainability - determine if 52% decline is cyclical or structural
- Debt/Equity trajectory - monitor if leverage increases further given negative FCF
- Trading volumes and volatility indices - key revenue drivers for market-making business
Virtu Financial, Inc. (VIRT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
VIRT Profit Margin, ROE & Profitability Analysis
VIRT vs Finance Sector: How Virtu Financial, Inc. Compares
How Virtu Financial, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Virtu Financial, Inc. Stock Overvalued? VIRT Valuation Analysis 2026
Based on fundamental analysis, Virtu Financial, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Virtu Financial, Inc. Balance Sheet: VIRT Debt, Cash & Liquidity
VIRT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Virtu Financial, Inc.'s revenue has shown modest growth of 0% over the 5-year period. The most recent EPS of $1.42 reflects profitable operations.
VIRT Revenue Growth, EPS Growth & YoY Performance
VIRT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $151.3M | $99.7M | $1.08 |
| Q3 2025 | $131.6M | $60.0M | $0.64 |
| Q2 2025 | $126.1M | $66.6M | $0.71 |
| Q1 2025 | $118.6M | $55.8M | $0.59 |
| Q3 2024 | $110.3M | $60.0M | $0.63 |
| Q2 2024 | $109.5M | $16.7M | $0.16 |
| Q1 2024 | $118.6M | $55.8M | $0.56 |
| Q3 2023 | $110.3M | $40.0M | $0.37 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Virtu Financial, Inc. Dividends, Buybacks & Capital Allocation
VIRT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Virtu Financial, Inc. (CIK: 0001592386)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VIRT
What is the AI rating for VIRT?
Virtu Financial, Inc. (VIRT) has an AI rating of HOLD with 45% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VIRT's key strengths?
Claude: Exceptional revenue growth of 488.7% YoY demonstrates market opportunity capture. Strong operating margin of 37.4% shows operational efficiency at scale.
What are the risks of investing in VIRT?
Claude: Net income collapsed 52% YoY despite massive revenue surge - fundamental disconnect indicating deteriorating earnings quality. Negative operating cash flow (-$149K) and negative free cash flow (-$5.8M) despite reported profitability - cash generation crisis.
What is VIRT's revenue and growth?
Virtu Financial, Inc. reported revenue of $1.1B.
Does VIRT pay dividends?
Virtu Financial, Inc. pays dividends, with $120.5M distributed to shareholders in the trailing twelve months.
Where can I find VIRT SEC filings?
Official SEC filings for Virtu Financial, Inc. (CIK: 0001592386) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VIRT's EPS?
Virtu Financial, Inc. has a diluted EPS of $1.99.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is VIRT a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Virtu Financial, Inc. has a HOLD rating with 45% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VIRT stock overvalued or undervalued?
Valuation metrics for VIRT: ROE of 10.5% (sector avg: 12%), net margin of 16.6% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy VIRT stock in 2026?
Our dual AI analysis gives Virtu Financial, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VIRT's free cash flow?
Virtu Financial, Inc.'s operating cash flow is $-149.0K, with capital expenditures of $5.6M. FCF margin is -0.5%.
How does VIRT compare to other Finance stocks?
Vs Finance sector averages: Net margin 16.6% (avg: 25%), ROE 10.5% (avg: 12%), current ratio N/A (avg: 1.2).