v3.25.2
Geographic Information and Business Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Geographic Information and Business Segments 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 three months ended June 30, 2025 and 2024 are summarized in the following table:

(in thousands)Market MakingExecution ServicesCorporate (1)Consolidated Total
2025
Total revenues$786,593 $214,488 $(1,508)$999,573 
Operating expenses:
Brokerage, exchange, clearance fees and payments for order flow, net172,311 29,814 — 202,125 
Interest and dividends expense163,871 1,342 — 165,213 
Other segment items (2)194,949 89,206 1,060 285,215 
Total operating expenses531,131 120,362 1,060 652,553 
Income (loss) before income taxes and noncontrolling interest$255,462 $94,126 $(2,568)$347,020 
2024
Total revenues$569,783 $127,059 $(3,857)$692,985 
Operating expenses:
Brokerage, exchange, clearance fees and payments for order flow, net125,972 24,815 — 150,787 
Interest and dividends expense122,130 1,563 — 123,693 
Other segment items (2)177,139 85,082 899 263,120 
Total operating expenses425,241 111,460 899 537,600 
Income (loss) before income taxes and noncontrolling interest$144,542 $15,599 $(4,756)$155,385 
(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’s total revenues, operating expenses, and income (loss) before income taxes and noncontrolling interest (“Pre-tax earnings”) by segment for the six months ended June 30, 2025 and 2024 are summarized in the following table:
(in thousands)Market MakingExecution ServicesCorporate (1)Consolidated Total
2025
Total revenues$1,477,765 $355,496 $4,181 $1,837,442 
Operating expenses:
Brokerage, exchange, clearance fees and payments for order flow, net366,614 57,386 — 424,000 
Interest and dividends expense293,922 2,619 — 296,541 
Other segment items (2)372,587 171,440 2,118 546,145 
Total operating expenses1,033,123 231,445 2,118 1,266,686 
Income (loss) before income taxes and noncontrolling interest$444,642 $124,051 $2,063 $570,756 
2024
Total revenues$1,090,791 $244,847 $186 $1,335,824 
Operating expenses:
Brokerage, exchange, clearance fees and payments for order flow, net241,838 48,748 — 290,586 
Interest and dividends expense247,288 2,433 — 249,721 
Other segment items (2)330,170 168,824 1,318 500,312 
Total operating expenses819,296 220,005 1,318 1,040,619 
Income (loss) before income taxes and noncontrolling interest$271,495 $24,842 $(1,132)$295,205 
(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 three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Revenues:
United States$816,973 $563,937 $1,526,082 $1,086,006 
Ireland108,048 66,303 192,742 129,322 
Others74,552 62,745 118,618 120,496 
Total revenues$999,573 $692,985 $1,837,442 $1,335,824