Virtu Financial, Inc. VIRT reported third-quarter 2024 adjusted earnings per share (EPS) of 82 cents, which outpaced the Zacks Consensus Estimate by 5.1%. The bottom line jumped 82.2% year over year.

Adjusted net trading income improved more than 30% year over year to $388 million in the quarter under review. It beat the consensus estimate by 4%.

The strong third-quarter results were aided by a strong revenue contribution from the Market Making segment and higher revenues from commissions. Organic growth due to options market making, ETF block, and digital assets benefited the Market Making segment. However, the upside was partly offset by an elevated overall expense level. VIRT’s shares inched up marginally since it reported quarterly results on Oct. 24.

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Virtu Financial, Inc. Price, Consensus and EPS Surprise

Virtu Financial, Inc. price-consensus-eps-surprise-chart | Virtu Financial, Inc. Quote

Q3 Performance Details

Revenues from commissions, net and technology services amounted to $131.6 million, which rose 19.4% year over year. The metric beat the consensus mark and our model estimate of $120 million. Interest and dividend income of $125.2 million fell from $127.7 million a year ago and fell short of the consensus mark and our estimate of $132 million.

Adjusted EBITDA jumped to $214.8 million in the quarter under review from $139.5 million a year ago and surpassed our model estimate of $165.6 million. Adjusted EBITDA margin of 55.4% improved 860 basis points year over year.

Total operating expenses increased to $559.7 million from $492.1 million in the year-ago quarter, higher than our estimate of $506.6 million. The year-over-year rise was due to higher net brokerage, exchange, clearance fees and payments for order flow, communication and data processing costs, employee compensation and payroll taxes, interest and dividend expenses, and transaction advisory fees and expenses.

Q3 Segmental Update

Market Making: Adjusted net trading income was $288 million in the third quarter, up 38.4% year over year and surpassed our estimate of $223 million. The segment’s revenues rose 11.5% year over year to $576.7 million, higher than the Zacks Consensus Estimate and our estimate of $479 million.

Execution Services: The unit recorded an adjusted net trading income of $100 million in the quarter under review, which grew 11.2% year over year. Also, the metric beat our estimate of $97.6 million. Total revenues of $125.7 million grew 11.8% year over year and surpassed the consensus mark and our estimate of $123 million.