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Virtu reported adjusted earnings of $1.82 per share for Q2 FY2026, above the $1.68 consensus. On the measure used by the revenue consensus, Virtu’s $717.9 million in adjusted net trading income exceeded the $662.0 million estimate; the filing identifies adjusted net trading income as a non-GAAP measure rather than total revenue.
Total revenue rose 19.0% to $1.2 billion from $999.6 million a year earlier. The filing attributed the increase chiefly to higher trading income from greater volumes and opportunities across global markets, alongside increased commissions and technology services revenue. It said the increase was partly offset by gains from the sale and deconsolidation of RFQ-hub in the prior-year quarter.
Virtu’s filing shows operating expenses rose to $847.4 million from $652.6 million, primarily because of compensation, interest and dividends expense, and trading-related fees. Operating margin fell to 28.8% from 34.7%, while gross margin declined to 78.2% from 79.8%. Diluted earnings per share were $1.63, compared with $1.65 a year earlier. Free cash flow rose to $92.3 million from $51.7 million.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.2 billion | $999.6 million | 19.0% |
| Diluted EPS | $1.63 | $1.65 | −1.21% |
| Gross margin | 78.2% | 79.8% | −1.5 percentage points |
| Operating margin | 28.8% | 34.7% | −5.9 percentage points |
| Free cash flow | $92.3 million | $51.7 million | 78.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.82 | $1.68 | Beat by 8.33% |
| Revenue | $717.9 million | $662.0 million | Beat by 8.43% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On Virtu’s latest available earnings call, covering Q1 2026 rather than Q2, CEO Aaron Simons described a plan to grow by investing in infrastructure, hiring and expanding the capital base. He said Virtu had added over $500 million in trading capital over the preceding seven months and attributed the quarter’s results in part to the operating environment.
CFO Cindy Lee said Execution Services performance reflected technology investment, client acquisition and an expanded product offering. She said both operating segments benefited from market conditions, and that the Q1 2026 cash compensation ratio was 22%, within its historical range. Lee attributed the increase in compensation expense to the company’s focus on retaining and recruiting staff, particularly in trading and technology.
In the question-and-answer session, Simons said the market-making business was diversified geographically and across asset classes rather than wholly dependent on retail activity. He cautioned against treating the quarter’s relationship between brokerage, clearing and exchange costs and gross revenue as permanent, saying some of it depended on the trading environment. Virtu was also seeking to reduce execution costs and internalize more trading where possible, he said.
Simons said Virtu was exploring AI tools for internal software development, including routine coding and explanations. He said current tools could not reason about and design the company’s code base at a high level, and that it was too early to determine the productivity impact, although he expected a material impact in the coming year or 2.
Guidance
On the Q1 2026 call, CEO Aaron Simons said Virtu hoped to bring headcount close to 1,100 during FY2026. CFO Cindy Lee said Virtu would continue expanding its capital base and maintaining its quarterly dividend of $0.24 per share.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Headcount | FY2026 | 1,100 | — | — |