Virtu Announces Fourth Quarter 2021 Results

NEW YORK, Feb. 08, 2022 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the fourth quarter ended December 31, 2021.

Fourth Quarter and Full Year Selected Highlights

Fourth Quarter 2021:

• Net income of $186.0 million; Normalized Adjusted Net Income¹ of $220.6 million
• Basic and diluted earnings per share of $0.90 and $0.89 respectively; Normalized Adjusted EPS¹ of $1.19
• Total revenues of $705.6 million; Trading income, net, of $513.4 million; Adjusted Net Trading Income¹ of $485.6 million
• Adjusted EBITDA¹ of $328.4 million; Adjusted EBITDA Margin¹ of 67.6%
• Share buybacks of $101.6 million, or 3.7 million shares, under the Share Repurchase Program²
  
  

Full Year 2021:

• Net income of $827.2 million; Normalized Adjusted Net Income¹ of $876.6 million
• Basic and diluted earnings per share of $3.95 and $3.91 respectively; Normalized Adjusted EPS¹ of $4.57
• Total revenues of $2,811.5 million; Trading income, net of $2,105.2 million; Adjusted Net Trading Income¹ of $1,909.9 million
• Adjusted EBITDA¹ of $1,301.2 million; Adjusted EBITDA Margin¹ of 68.1%
• Share buybacks of $405.2 million, or 14.7 million shares, under the Share Repurchase Program²
  
  

The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on March 15, 2022 to shareholders of record as of March 1, 2022.

Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
Note 2: Shares repurchased calculated on a settlement date basis.

Financial Results

Fourth Quarter 2021:

Total revenues increased 4.3% to $705.6 million for this quarter, driven primarily by higher trading volumes in U.S. equities, compared to $676.7 million for the same period in 2020. Trading income, net, increased 1.6% to $513.4 million for this quarter, compared to $505.5 million for the same period in 2020. Net income totaled $186.0 million for this quarter, compared to net income of $197.7 million in the prior year quarter.

Basic and diluted earnings per share for this quarter were $0.90 and $0.89, compared to a basic and diluted earnings per share of $0.89 and $0.88, respectively, for the same period in 2020.

Adjusted Net Trading Income increased 6.5% to $485.6 million for this quarter, compared to $455.9 million for the same period in 2020. Adjusted EBITDA decreased 4.5% to $328.4 million for this quarter, compared to $343.9 million for the same period in 2020.

Normalized Adjusted Net Income, removing one-time integration costs and non-cash items, decreased 5.7% to $220.6 million for this quarter, compared to $234.0 million for the same period in 2020.

Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $1.19 for this quarter, compared to $1.18 for the same period in 2020.

Full Year 2021:

Total revenues decreased 13.2% to $2,811.5 million for this year, also impacted by lower volatility and volumes across global markets, compared to $3,239.3 million for 2020, which had high volatility in the first and fourth quarters. Trading income, net, decreased 15.6% to $2,105.2 million for this year, compared to $2,493.2 million for 2020. There was net income of $827.2 million for this year, compared to net income of $1,120.9 million for 2020.

Basic and diluted earnings per share were $3.95 and $3.91 for 2021, compared to basic and diluted earnings per share of $5.19 and $5.16, respectively, for the same period in 2020.

Adjusted Net Trading Income decreased 15.9% to $1,909.9 million for this year, compared to $2,271.4 million for 2020. Adjusted EBITDA decreased 21.0% to $1,301.2 million for this year, compared to $1,648.0 million for 2020. Normalized Adjusted Net Income decreased 22.8% to $876.6 million for this year, compared to $1,135.1 million for 2020.

Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $4.57 for 2021, compared to $5.76 for 2020.

Operating Segment Information

The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies 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.

Execution Services comprises agency-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 also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. 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.

Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three months and full years ended December 31, 2021 and 2020.

Total revenues by segment
(in thousands, unaudited)

		Three Months Ended December 31, 2021														Three Months Ended December 31, 2020
		Market Making			Execution Services			Corporate				Total				Market Making			Execution Services			Corporate				Total
Trading income, net		$	508,306		$	5,048		$	—			$	513,354			$	466,006		$	39,486		$	—			$	505,492
Commissions, net and technology services			8,844			134,958			—				143,802				42,926			105,250			—				148,176
Interest and dividends income			49,137			1			—				49,138				15,269			62			—				15,331
Other, net			1,204			290			(2,185	)			(691	)			4,841			4,725			(1,869	)			7,697
Total Revenues		$	567,491		$	140,297		$	(2,185	)		$	705,603			$	529,042		$	149,523		$	(1,869	)		$	676,696

		Year Ended December 31, 2021												Year Ended December 31, 2020
		Market Making			Execution Services			Corporate			Total			Market Making			Execution Services			Corporate				Total
Trading income, net		$	2,079,653		$	25,541		$	—		$	2,105,194		$	2,455,182		$	38,006		$	—			$	2,493,188
Commissions, net and technology services			40,955			573,534			—			614,489			52,453			548,057			—				600,510
Interest and dividends income			75,311			73			—			75,384			61,485			634			—				62,119
Other, net			7,127			1,067			8,224			16,418			24,222			63,386			(4,154	)			83,454
Total Revenues		$	2,203,046		$	600,215		$	8,224		$	2,811,485		$	2,593,342		$	650,083		$	(4,154	)		$	3,239,271

Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
(in thousands, unaudited)

		Three Months Ended December 31, 2021															Three Months Ended December 31, 2020
		Market Making				Execution Services				Corporate			Total				Market Making				Execution Services				Corporate			Total
Trading income, net		$	508,306			$	5,048			$	—		$	513,354			$	466,006			$	39,486			$	—		$	505,492
Commissions, net and technology services			8,844				134,958				—			143,802				42,926				105,250				—			148,176
Interest and dividends income			49,137				1				—			49,138				15,269				62				—			15,331
Brokerage, exchange, clearance fees and payments for order flow, net			(131,955	)			(24,594	)			—			(156,549	)			(175,760	)			(9,314	)			—			(185,074	)
Interest and dividends expense			(62,679	)			(1,440	)			—			(64,119	)			(27,653	)			(340	)			—			(27,993	)
Adjusted Net Trading Income		$	371,653			$	113,973			$	—		$	485,626			$	320,788			$	135,144			$	—		$	455,932

		Year Ended December 31, 2021															Year Ended December 31, 2020
		Market Making				Execution Services				Corporate			Total				Market Making				Execution Services				Corporate			Total
Trading income, net		$	2,079,653			$	25,541			$	—		$	2,105,194			$	2,455,182			$	38,006			$	—		$	2,493,188
Commissions, net and technology services			40,955				573,534				—			614,489				52,453				548,057				—			600,510
Interest and dividends income			75,311				73				—			75,384				61,485				634				—			62,119
Brokerage, exchange, clearance fees and payments for order flow, net			(634,783	)			(110,651	)			—			(745,434	)			(662,994	)			(95,849	)			—			(758,843	)
Interest and dividends expense			(133,584	)			(6,120	)			—			(139,704	)			(123,715	)			(1,934	)			—			(125,649	)
Adjusted Net Trading Income		$	1,427,552			$	482,377			$	—		$	1,909,929			$	1,782,411			$	488,914			$	—		$	2,271,325

Financial Condition

As of December 31, 2021, Virtu had $1,121.0 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,631.3 million.

Share Repurchase Program

Since inception of the program in November 2020 through January 31, 2022, the Company repurchased approximately 17.6 million shares of Class A Common Stock and Virtu Financial Units for approximately $482.8 million. Including the additional $750 million authorization from Virtu Financial Inc's Board of directors in the fourth quarter, 2021, the Company has approximately $737.2 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

Earnings Conference Call Information

Virtu Financial will host a conference call to review its fourth quarter 2021 financial performance today, February 8th, at 8:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

Website Information

We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Financial Measures and Other Items

To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), we use the following non-GAAP measures of financial performance:

• "Adjusted Net Trading Income", which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our market making activities.
  
  
• "EBITDA", which measures our operating performance by adjusting Net Income to exclude financing interest expense on our long-term borrowings, debt issue cost related to debt refinancing, prepayment, and commitment fees, depreciation and amortization, amortization of purchased intangibles and acquired capitalized software, and income tax expense, and "Adjusted EBITDA", which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share based compensation and other expenses, which includes reserves for legal matters, COVID-19 one-time costs and donations and Other net, and “Adjusted EBITDA Margin”, which compares Adjusted EBITDA to Adjusted Net Trading Income.
  
  
• “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items and other non-cash items, assuming that all vested and unvested non-voting common interest units in Virtu Financial LLC have been exchanged for shares of our Class A common stock, and applying an effective tax rate, which was approximately 24%.
  
  
• “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.
  
  

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

• they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
• our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
• they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
• they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
• they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

Virtu Financial, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)

		Three Months Ended December 31,								Year Ended December 31,
(in thousands, except share and per share data)			2021				2020				2021				2020
Revenues:
Trading income, net		$	513,354			$	505,492			$	2,105,194			$	2,493,248
Interest and dividends income			49,138				15,331				75,384				62,119
Commissions, net and technology services			143,802				148,176				614,489				600,510
Other, net			(691	)			7,697				16,418				83,454
Total revenues			705,603				676,696				2,811,485				3,239,331
Operating Expenses:
Brokerage, exchange, clearance fees and payments for order flow, net			156,549				185,074				745,434				758,843
Communication and data processing			52,164				51,414				211,988				213,750
Employee compensation and payroll taxes			103,110				66,445				376,282				393,536
Interest and dividends expense			64,119				27,993				139,704				125,649
Operations and administrative			22,513				21,079				88,149				94,558
Depreciation and amortization			18,052				16,013				67,816				66,741
Amortization of purchased intangibles and acquired capitalized software			16,580				18,077				69,668				74,254
Termination of office leases			23,011				9,265				28,138				9,608
Debt issue cost related to debt refinancing, prepayment and commitment fees			1,609				1,597				6,590				28,879
Transaction advisory fees and expenses			694				205				843				2,941
Financing interest expense on long-term borrowings			20,185				19,971				79,969				87,735
Total operating expenses			478,586				417,133				1,814,581				1,856,494
Income before income taxes and noncontrolling interest			227,017				259,563				996,904				1,382,837
Provision for income taxes			41,059				61,880				169,670				261,924
Net income		$	185,958			$	197,683			$	827,234			$	1,120,913
Noncontrolling interest			(81,902	)			(85,405	)			(350,356	)			(471,716	)
Net income available for common stockholders		$	104,056			$	112,278			$	476,878			$	649,197
Earnings per share:
Basic		$	0.90			$	0.89			$	3.95			$	5.19
Diluted		$	0.89			$	0.88			$	3.91			$	5.16
Weighted average common shares outstanding
Basic			111,971,432				122,775,185				117,339,539				121,692,443
Diluted			112,639,792				123,500,713				118,423,928				122,332,190
Comprehensive income:
Net income		$	185,958			$	197,683			$	827,234			$	1,120,913
Other comprehensive income
Foreign exchange translation adjustment, net of taxes			(1,018	)			11,458				(12,470	)			15,318
Net change in unrealized cash flow hedges gains (losses), net of taxes			19,596				5,406				37,794				(59,019	)
Comprehensive income		$	204,536			$	214,547			$	852,558			$	1,077,212
Less: Comprehensive income attributable to noncontrolling interest			(88,836	)			(92,554	)			(360,389	)			(452,855	)
Comprehensive income available for common stockholders		$	115,700			$	121,993			$	492,169			$	624,357

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)

The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

		Three Months Ended December 31,								Year Ended December 31,
(in thousands, except percentages)			2021				2020				2021				2020
Reconciliation of Trading income, net to Adjusted Net Trading Income
Trading income, net		$	513,354			$	505,492			$	2,105,194			$	2,493,248
Commissions, net and technology services			143,802				148,176				614,489				600,510
Interest and dividends income			49,138				15,331				75,384				62,119
Brokerage, exchange, clearance fees and payments for order flow, net			(156,549	)			(185,074	)			(745,434	)			(758,843	)
Interest and dividends expense			(64,119	)			(27,993	)			(139,704	)			(125,649	)
Adjusted Net Trading Income		$	485,626			$	455,932			$	1,909,929			$	2,271,385
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income (loss)			185,958				197,683				827,234				1,120,913
Financing interest expense on long-term borrowings			20,185				19,971				79,969				87,735
Debt issue cost related to debt refinancing, prepayment and commitment fees			1,609				1,597				6,590				28,879
Depreciation and amortization			18,052				16,013				67,816				66,741
Amortization of purchased intangibles and acquired capitalized software			16,580				18,077				69,668				74,254
Provision for income taxes			41,059				61,880				169,670				261,924
EBITDA		$	283,443			$	315,221			$	1,220,947			$	1,640,446
Severance			1,535				3,094				6,112				10,286
Transaction advisory fees and expenses			694				205				843				2,941
Termination of office leases			23,011				9,265				28,138				9,608
Gain on sale of MATCHNow			—				—				—				(58,652	)
Other			2,270				(6,257	)			(10,558	)			(16,418	)
Share based compensation			17,491				22,328				55,751				59,838
Adjusted EBITDA		$	328,444			$	343,856			$	1,301,233			$	1,648,049
Selected Operating Margins
Net Income Margin (1)			38.3	%			43.4	%			43.3	%			49.3	%
EBITDA Margin (2)			58.4	%			69.1	%			63.9	%			72.2	%
Adjusted EBITDA Margin (3)			67.6	%			75.4	%			68.1	%			72.6	%
1 Calculated by dividing net income by Adjusted Net Trading Income.
2 Calculated by dividing EBITDA by Adjusted Net Trading Income.
3 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)
(Continued)

The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

		Three Months Ended December 31,							Year Ended December 31,
(in thousands, except share and per share data)			2021			2020				2021				2020
Reconciliation of Net Income to Normalized Adjusted Net Income
Net income		$	185,958		$	197,683			$	827,234			$	1,120,913
Provision for income taxes			41,059			61,880				169,670				261,924
Income before income taxes and noncontrolling interest		$	227,017		$	259,563			$	996,904			$	1,382,837
Amortization of purchased intangibles and acquired capitalized software			16,580			18,077				69,668				74,254
Debt issue cost related to debt refinancing, prepayment and commitment fees			1,609			1,597				6,590				28,879
Severance			1,535			3,094				6,112				10,286
Transaction advisory fees and expenses			694			205				843				2,941
Termination of office leases			23,011			9,265				28,138				9,608
Gain on sale of MATCHNow			—			—				—				(58,652	)
Other			2,270			(6,257	)			(10,558	)			(16,418	)
Share based compensation			17,491			22,328				55,751				59,838
Normalized Adjusted Net Income before income taxes		$	290,207		$	307,872			$	1,153,448			$	1,493,573
Normalized provision for income taxes (1)			69,649			73,889				276,827				358,458
Normalized Adjusted Net Income		$	220,558		$	233,983			$	876,621			$	1,135,115
Weighted Average Adjusted shares outstanding (2)			186,110,956			197,503,595				191,958,870				196,929,673
Normalized Adjusted EPS		$	1.19		$	1.18			$	4.57			$	5.76
(1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
(2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company's Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company's Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company's Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan and the Amended and Restated ITG 2007 Equity Plan during the three months and full years ended December 31, 2021 and 2020 as well as warrants issued in connection with the Founder Member Loan during the three months and full year ended December 31, 2020.

Virtu Financial, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition (Unaudited)

(in thousands, except share data)		December 31, 2021			December 31, 2020
Assets
Cash and cash equivalents		$	1,071,463		$	889,559
Cash and securities segregated under regulations and other			49,490			117,446
Securities borrowed			1,349,322			1,425,016
Securities purchased under agreements to resell			119,453			22,866
Receivables from broker-dealers and clearing organizations			1,026,807			1,684,006
Receivables from customers			146,476			214,478
Trading assets, at fair value			4,256,955			3,115,731
Property, equipment and capitalized software, net			89,595			113,590
Operating lease right-of-use assets			225,328			268,864
Goodwill			1,148,926			1,148,926
Intangibles (net of accumulated amortization)			386,332			454,499
Deferred taxes			158,518			193,070
Other assets			291,306			317,747
Total assets			10,319,971			9,965,798
Liabilities and equity
Liabilities
Short-term borrowings, net			61,510			64,686
Securities loaned			1,142,048			948,256
Securities sold under agreements to repurchase			514,325			461,235
Payables to broker-dealers and clearing organizations			571,526			876,446
Payables to customers			54,999			118,826
Trading liabilities, at fair value			3,510,779			2,923,708
Tax receivable agreement obligations			259,282			271,165
Accounts payable and accrued expenses and other liabilities			457,942			491,818
Deferred tax liabilities			65			—
Operating lease liabilities			278,745			315,340
Long-term borrowings, net			1,605,132			1,639,280
Total liabilities			8,456,353			8,110,760
Total equity			1,863,618			1,855,038
Total liabilities and equity		$	10,319,971		$	9,965,798
		As of December 31, 2021
Ownership of Virtu Financial LLC Interests:		Interests			%
Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units			116,612,326			62.7	%
Non-controlling Interests (Virtu Financial LLC)			69,450,805			37.3	%
Total Virtu Financial LLC Interests			186,063,131			100.0	%

About Virtu Financial, Inc.

Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic and governmental and other responses thereto; fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

CONTACT

        Investor & Media Relations
        Andrew Smith
        investor_relations@virtu.com