Virtu Financial, Inc. reported significant financial performance improvements for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. Total revenue for Q3 2024 reached $706.8 million, a 12.2% increase from $630.2 million in Q3 2023. For the nine months, total revenue was $2.04 billion, up 16.2% from $1.76 billion in the prior year. The increase in revenue was primarily driven by a 40.5% rise in trading income, net, which amounted to $444.0 million, attributed to higher trading volumes and increased market opportunities.
Operating expenses for Q3 2024 were $559.7 million, reflecting a 13.7% increase from $492.1 million in Q3 2023. For the nine months, operating expenses totaled $1.6 billion, up 10.4% from $1.45 billion in the same period last year. The rise in expenses was largely due to increased brokerage, exchange, and clearance fees, which rose 43.4% to $176.7 million in Q3 2024.
Net income for Q3 2024 was $119.0 million, slightly up from $117.6 million in Q3 2023. For the nine months, net income increased to $358.4 million from $257.2 million in the prior year. Basic earnings per share for Q3 2024 were $0.65, compared to $0.63 in Q3 2023, while for the nine months, it rose to $1.95 from $1.36.
The company’s balance sheet showed total assets of $14.4 billion as of September 30, 2024, a slight decrease from $14.5 billion at the end of 2023. Cash and cash equivalents decreased to $701.4 million from $820.4 million. Notably, securities borrowed increased significantly to $2.3 billion from $1.7 billion, while receivables from broker-dealers rose to $1.2 billion from $737.7 million.
In terms of strategic developments, Virtu Financial entered into a Unit Purchase Agreement with MarketAxess on April 19, 2024, to sell a 49% interest in RFQ-hub Holdings LLC, with the transaction expected to close in Q4 2024, pending regulatory approvals. The company continues to focus on enhancing its market-making and execution services across various asset classes, leveraging its technology-driven approach to maintain competitive advantages in the financial services sector.
Overall, Virtu Financial's performance reflects a robust trading environment and effective operational management, despite rising expenses and regulatory challenges.
About Virtu Financial, Inc.
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