Virtu Financial, Inc.VIRT
Virtu Financial, Inc. Segments Disclosure
Geographic Information and Business Segments
The Company has two operating segments: (i) Market Making and (ii) Execution Services; and one non-operating segment: Corporate.
The Market Making segment principally consists of market making in the cash, futures, and options markets across global equities, fixed income, currencies, cryptocurrencies, and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker-dealers, banks and institutions. The Company engages in principal trading in the Market Making segment direct to clients as well as in a supplemental capacity on exchanges, Electronic Communications Networks (“ECNs”) and alternative trading systems (“ATSs”). The Company is an active participant on all major global equity and futures exchanges and also trades on substantially all domestic electronic options exchanges. As a complement to electronic market making, the cash trading business handles specialized orders and also transacts on the OTC Link ATS operated by OTC Markets Group Inc.
The Execution Services segment comprises client-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker-dealers. The Company earns commissions as an agent on behalf of clients as well as between principals to transactions; in addition, the Company will commit capital on behalf of clients as needed. Client-based, execution-only trading in the segment is done primarily through a variety of access points including: (i) algorithmic trading and order routing in global equities and options; (ii) institutional sales traders who offer portfolio trading and single stock sales trading which provides execution expertise for program, block and riskless principal trades in global equities and ETFs; and (iii) matching of client conditional orders in POSIT Alert and client orders in the Company’s ATSs, including Virtu MatchIt, and POSIT. The Execution Services segment also includes revenues derived from providing (a) proprietary risk management and trading infrastructure technology to select third parties for a service fee, (b) workflow technology, the Company’s integrated, broker-neutral trading tools delivered across the globe including trade order and execution management and order management software applications and network connectivity and (c) trading analytics, including (1) tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance, (2) portfolio construction and optimization decisions and (3) securities valuation. The segment also includes the results of the Company’s capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.
The Corporate segment contains the Company’s investments, principally in strategic trading-related opportunities and maintains corporate overhead expenses and all other income and expenses that are not attributable to the Company’s other segments. The segment is not considered a reportable operating segment as its results are not regularly reviewed by the Company’s Chief Operating Decisions Makers (“CODMs”).
The accounting policies of the segments are the same as those described in Note 2 “Summary of Significant Accounting Policies”. The Company’s CODMs are the Chief Executive Officer and the Chief Operating Officers. The CODMs use a top-line approach in regards to evaluating segment performance and making business decisions on resource allocations, focusing on each segment's trading-related activities. Revenues, including breakdown of key trading-driven components of revenues, trading-related operating expenses, and pre-tax earnings by segment are regularly provided to the CODMs. The CODMs review trading-related results by monitoring period-over-period trends and considering variances between actuals and expectations. Corporate overhead and other shared expenses, as well as assets and liabilities by segment are not used for evaluating segment performance or in deciding how to allocate resources to segments.
The Company’s total revenues, operating expenses, and income (loss) before income taxes and noncontrolling interest (“Pre-tax earnings”) by segment for the years ended December 31, 2025, 2024, and 2023 are summarized in the following table:
| (in thousands) | Market Making | Execution Services | Corporate (1) | Consolidated Total | ||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||
| Total revenues | $ | 2,949,221 | $ | 668,192 | $ | 14,705 | $ | 3,632,118 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Brokerage, exchange, clearance fees and payments for order flow, net | 650,150 | 119,624 | — | 769,774 | ||||||||||||||||||||||
| Interest and dividends expense | 641,584 | 5,864 | — | 647,448 | ||||||||||||||||||||||
| Other segment items (2) | 766,893 | 352,142 | 1,532 | 1,120,567 | ||||||||||||||||||||||
| Total operating expenses | 2,058,627 | 477,630 | 1,532 | 2,537,789 | ||||||||||||||||||||||
| Income (loss) before income taxes and noncontrolling interest | $ | 890,594 | $ | 190,562 | $ | 13,173 | $ | 1,094,329 | ||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| Total revenues | $ | 2,374,096 | $ | 507,230 | $ | (4,377) | $ | 2,876,949 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Brokerage, exchange, clearance fees and payments for order flow, net | 573,382 | 101,044 | — | 674,426 | ||||||||||||||||||||||
| Interest and dividends expense | 524,158 | 5,019 | — | 529,177 | ||||||||||||||||||||||
| Other segment items (2) | 685,504 | 339,407 | 3,465 | 1,028,376 | ||||||||||||||||||||||
| Total operating expenses | 1,783,044 | 445,470 | 3,465 | 2,231,979 | ||||||||||||||||||||||
| Income (loss) before income taxes and noncontrolling interest | $ | 591,052 | $ | 61,760 | $ | (7,842) | $ | 644,970 | ||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||
| Total revenues | $ | 1,843,523 | $ | 446,542 | $ | 3,308 | $ | 2,293,373 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Brokerage, exchange, clearance fees and payments for order flow, net | 420,608 | 87,750 | — | 508,358 | ||||||||||||||||||||||
| Interest and dividends expense | 497,895 | 2,572 | — | 500,467 | ||||||||||||||||||||||
| Other segment items (2) | 609,418 | 345,780 | 4,219 | 959,417 | ||||||||||||||||||||||
| Total operating expenses | 1,527,921 | 436,102 | 4,219 | 1,968,242 | ||||||||||||||||||||||
| Income (loss) before income taxes and noncontrolling interest | $ | 315,602 | $ | 10,440 | $ | (911) | $ | 325,131 | ||||||||||||||||||
(1) Corporate is a non-operating segment. The Company presents its information as a part of reconciliation to Consolidated Totals.
(2) Other segment items for both reportable segments include: Communication and data processing, Employee compensation and payroll taxes, Operations and administrative, Depreciation and amortization, Financing interest expense on long-term borrowings, and Debt issue cost related to debt refinancing, prepayment and commitment fees.
The Company operates its business in the U.S. and internationally, primarily in Europe and Asia. Significant transactions and balances between geographic regions occur primarily as a result of certain of the Company’s subsidiaries incurring operating expenses such as employee compensation, communications and data processing and other overhead costs, for the purpose of providing execution, clearing and other support services to affiliates. Charges for transactions between regions are designed to approximate full costs. Intra-region income and expenses and related balances have been eliminated in the geographic information presented below to accurately reflect the external business conducted in each geographical region. The revenues are attributed to countries based on the locations of the subsidiaries. The following table presents total revenues by geographic area for the years ended December 31, 2025, 2024, and 2023:
| Year Ended December 31, | ||||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| United States | $ | 2,939,967 | $ | 2,362,481 | $ | 1,920,748 | ||||||||||||||
| Ireland | 386,992 | 273,215 | 206,507 | |||||||||||||||||
| Others | 305,159 | 241,253 | 166,118 | |||||||||||||||||
| Total revenues | $ | 3,632,118 | $ | 2,876,949 | $ | 2,293,373 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 13, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.