Virtu Financial, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS Index to Condensed Consolidated Financial Statements PAGE NUMBER Condensed Consolidated Statements of Financial Condition (Unaudited) 3 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 5 Condensed Consolidated Statements of Changes in Equity (Unaudited) 6 Condensed Consolidated Statements of Cash Flows (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 2 Table of Contents Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Financial Condition (Unaudited) (in thousands, except share data) March 31, 2025 December 31, 2024 Assets Cash and cash equivalents $ 723,650 $ 872,513 Cash restricted or segregated under regulations and other 47,364 41,478 Securities borrowed 2,780,405 2,294,529 Securities purchased under agreements to resell 1,153,090 983,941 Receivables from broker-dealers and clearing organizations ($ 108,358 and $ 51,595 at fair value, as of March 31, 2025 and December 31, 2024, respectively) 1,857,854 1,100,850 Trading assets, at fair value: Financial instruments owned 6,292,397 5,520,015 Financial instruments owned and pledged 2,428,584 2,282,637 Receivables from customers 189,382 149,804 Property, equipment and capitalized software (net of accumulated depreciation of $ 388,684 and $ 380,202 as of March 31, 2025 and December 31, 2024, respectively) 92,815 91,415 Operating lease right-of-use assets 163,230 175,046 Goodwill 1,148,926 1,148,926 Intangibles (net of accumulated amortization of $ 440,243 and $ 428,460 as of March 31, 2025 and December 31, 2024, respectively) 190,280 203,188 Deferred tax assets 125,762 135,046 Assets of business held for sale 4,573 4,615 Other assets ($ 129,387 and $ 158,326 , at fair value, as of March 31, 2025 and December 31, 2024, respectively) 349,902 357,740 Total assets $ 17,548,214 $ 15,361,743 Liabilities and equity Liabilities Short-term borrowings $ 112,149 $ 38,541 Securities loaned 2,827,025 2,431,878 Securities sold under agreements to repurchase 1,461,415 1,271,788 Payables to broker-dealers and clearing organizations ($ 199,920 and $ 136,736 , at fair value, as of March 31, 2025 and December 31, 2024, respectively) 774,809 918,566 Payables to customers 66,732 46,112 Trading liabilities, at fair value: Financial instruments sold, not yet purchased 8,116,856 6,440,971 Tax receivable agreement obligations 175,819 196,592 Accounts payable, accrued expenses and other liabilities 492,892 558,100 Operating lease liabilities 216,314 229,825 Long-term borrowings 1,741,092 1,740,467 Liabilities of business held for sale 1,455 1,526 Total liabilities 15,986,558 13,874,366 Commitments and Contingencies (Note 16) Virtu Financial Inc. Stockholders' equity Class A common stock (par value $ 0.00001 ), Authorized — 1,000,000,000 and 1,000,000,000 shares, Issued — 139,581,948 and 137,479,751 shares, Outstanding — 85,757,311 and 84,976,325 shares at March 31, 2025 and December 31, 2024, respectively 1 1 Class B common stock (par value $ 0.00001 ), Authorized — 175,000,000 and 175,000,000 shares, Issued and Outstanding — 0 and 0 shares at March 31, 2025 and December 31, 2024, respectively — — Class C common stock (par value $ 0.00001 ), Authorized — 90,000,000 and 90,000,000 shares, Issued and Outstanding — 8,194,847 and 8,561,970 shares at March 31, 2025 and December 31, 2024, respectively — — Class D common stock (par value $ 0.00001 ), Authorized — 175,000,000 and 175,000,000 shares, Issued and Outstanding — 60,091,740 and 60,091,740 shares at March 31, 2025 and December 31, 2024, respectively 1 1 Treasury stock, at cost, 53,824,637 and 52,503,426 shares at March 31, 2025 and December 31, 2024, respectively ( 1,387,895 ) ( 1,339,913 ) Additional paid-in capital 1,475,903 1,432,240 Retained earnings 1,227,446 1,168,908 3 Table of Contents Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Financial Condition (Unaudited) (in thousands, except share data) March 31, 2025 December 31, 2024 Accumulated other comprehensive income (loss) ( 5,554 ) ( 7,063 ) Total Virtu Financial Inc. stockholders' equity 1,309,902 1,254,174 Noncontrolling interest 251,754 233,203 Total equity 1,561,656 1,487,377 Total liabilities and equity $ 17,548,214 $ 15,361,743 See accompanying Notes to the Condensed Consolidated Financial Statements (Unaudited). 4 Table of Contents Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, (in thousands, except share and per share data) 2025 2024 Revenues: Trading income, net $ 589,983 $ 408,095 Interest and dividends income 109,053 105,992 Commissions, net and technology services 151,307 118,611 Other, net ( 12,474 ) 10,141 Total revenue 837,869 642,839 Operating Expenses: Brokerage, exchange, clearance fees and payments for order flow, net 221,875 139,799 Communication and data processing 59,803 58,182 Employee compensation and payroll taxes 119,356 100,823 Interest and dividends expense 131,328 126,028 Operations and administrative 22,136 22,346 Depreciation and amortization 15,932 16,076 Amortization of purchased intangibles and acquired capitalized software 11,783 14,687 Termination of office leases 10 17 Debt issue cost related to debt refinancing, prepayment and commitment fees 1,681 1,694 Transaction advisory fees and expenses 338 135 Financing interest expense on long-term borrowings 29,891 23,232 Total operating expenses 614,133 503,019 Income before income taxes and noncontrolling interest 223,736 139,820 Provision for income taxes 34,101 28,512 Net income 189,635 111,308 Noncontrolling interest ( 89,954 ) ( 55,491 ) Net income available for common stockholders $ 99,681 $ 55,817 Earnings per share Basic $ 1.09 $ 0.59 Diluted $ 1.08 $ 0.59 Weighted average common shares outstanding Basic 85,681,015 88,999,122 Diluted 86,047,558 88,999,122 Net income $ 189,635 $ 111,308 Other comprehensive income Foreign exchange translation adjustment, net of taxes 4,740 ( 3,526 ) Net change in unrealized cash flow hedges gain (loss), net of taxes ( 2,110 ) 1,547 Comprehensive income 192,265 109,329 Less: Comprehensive income attributable to noncontrolling interest ( 91,075 ) ( 54,655 ) Comprehensive income attributable to common stockholders $ 101,190 $ 54,674 See accompanying Notes to the Condensed Consolidated Financial Statements (Unaudited). 5 Table of Contents Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Equity (Unaudited) Three Months Ended March 31, 2025 and 2024 Class A Common Stock Class C Common Stock Class D Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Income (loss) Total Virtu Financial Inc. Stockholders' Equity Noncontrolling Interest Total Equity (in thousands, except share and interest data) Shares Amounts Shares Amounts Shares Amounts Shares Amounts Amounts Balance at December 31, 2024 137,479,751 $ 1 8,561,970 $ — 60,091,740 $ 1 ( 52,503,426 ) $ ( 1,339,913 ) $ 1,432,240 $ 1,168,908 $ ( 7,063 ) $ 1,254,174 $ 233,203 $ 1,487,377 Cumulative-effect adjustment due to the adoption of ASU 2023-08, net of tax — — — — — — — — — 21,800 — 21,800 — 21,800 Share based compensation 2,650,096 — — — — — — — 42,028 — — 42,028 — 42,028 Repurchase of Class C common stock — — ( 16,265 ) — — — — — ( 645 ) — — ( 645 ) — ( 645 ) Treasury stock purchases ( 1,018,757 ) — — — — — ( 1,321,211 ) ( 47,982 ) — ( 40,779 ) — ( 88,761 ) — ( 88,761 ) Stock options exercised 120,000 — — — — — — — 2,280 — — 2,280 — 2,280 Net income — — — — — — — — — 99,681 — 99,681 89,954 189,635 Foreign exchange translation adjustment — — — — — — — — — — 2,720 2,720 2,020 4,740 Net change in unrealized cash flow hedges gains — — — — — — — — — — ( 1,211 ) ( 1,211 ) ( 899 ) ( 2,110 ) Dividends ($ 0.24 per share of Class A common stock and participating Restricted Stock Units and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest — — — — — — — — — ( 22,164 ) — ( 22,164 ) ( 72,524 ) ( 94,688 ) Issuance of common stock in connection with employee exchanges 350,858 — — — — — — — — — — — — — Repurchase of Virtu Financial Units and corresponding number of Class C common stock in connection with employee exchanges — — ( 350,858 ) — — — — — — — — — — — Balance at March 31, 2025 139,581,948 $ 1 8,194,847 $ — 60,091,740 $ 1 ( 53,824,637 ) $ ( 1,387,895 ) $ 1,475,903 $ 1,227,446 $ ( 5,554 ) $ 1,309,902 $ 251,754 $ 1,561,656 Class A Common Stock Class C Common Stock Class D Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Income (loss) Total Virtu Financial Inc. Stockholders' Equity Noncontrolling Interest Total Equity (in thousands, except share and interest data) Shares Amounts Shares Amounts Shares Amounts Shares Amounts Amounts Balance at December 31, 2023 134,901,037 $ 1 8,607,998 $ — 60,091,740 $ 1 ( 45,808,351 ) $ ( 1,166,299 ) $ 1,351,574 $ 1,000,403 $ 17,047 $ 1,202,727 $ 202,629 $ 1,405,356 Share based compensation 2,596,226 — — — — — — — 28,883 — — 28,883 — 28,883 Treasury stock purchases ( 946,267 ) — — — — — ( 1,959,076 ) ( 35,889 ) — ( 16,013 ) — ( 51,902 ) — ( 51,902 ) Net income — — — — — — — — — 55,817 — 55,817 55,491 111,308 Foreign exchange translation adjustment — — — — — — — — — — ( 2,037 ) ( 2,037 ) ( 1,489 ) ( 3,526 ) Net change in unrealized cash flow hedges gains — — — — — — — — — — 894 894 653 1,547 Dividends ($ 0.24 per share of Class A common stock and participating Restricted Stock Units and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest — — — — — — — — — ( 22,660 ) — ( 22,660 ) ( 44,929 ) ( 67,589 ) Balance at March 31, 2024 136,550,996 $ 1 8,607,998 $ — 60,091,740 $ 1 ( 47,767,427 ) $ ( 1,202,188 ) $ 1,380,457 $ 1,017,547 $ 15,904 $ 1,211,722 $ 212,355 $ 1,424,077 See accompanying Notes to the Condensed Consolidated Financial Statements (Unaudited). 6 Table of Contents Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in thousands) 2025 2024 Cash flows from operating activities Net income $ 189,635 $ 111,308 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 15,932 16,076 Amortization of purchased intangibles and acquired capitalized software 11,783 14,687 Amortization of debt issuance costs and deferred financing fees 1,597 1,720 Termination of office leases 10 17 Share-based compensation 21,888 15,033 Deferred taxes 6,095 5,390 Other 6,499 ( 15,118 ) Changes in operating assets and liabilities: Securities borrowed ( 485,876 ) ( 60,542 ) Securities purchased under agreements to resell ( 169,149 ) 1,009,644 Receivables from broker-dealers and clearing organizations ( 756,950 ) ( 526,927 ) Trading assets, at fair value ( 918,329 ) 911,479 Receivables from customers ( 39,578 ) ( 12,435 ) Operating lease right-of-use assets 11,816 16,810 Other assets 26,898 ( 104,205 ) Securities loaned 395,147 311,075 Securities sold under agreements to repurchase 189,627 ( 959,561 ) Payables to broker-dealers and clearing organizations ( 143,428 ) ( 687,156 ) Payables to customers 20,620 10,256 Trading liabilities, at fair value 1,675,885 ( 376,355 ) Operating lease liabilities ( 13,511 ) ( 17,834 ) Accounts payable, accrued expenses and other liabilities ( 31,647 ) ( 58,776 ) Net cash provided by (used in) operating activities 14,964 ( 395,414 ) Cash flows from investing activities Development of capitalized software ( 23,926 ) ( 23,383 ) Acquisition of property and equipment ( 5,732 ) ( 2,815 ) Other investing activities ( 1,350 ) ( 1,278 ) Net cash provided by (used in) investing activities ( 31,008 ) ( 27,476 ) Cash flows from financing activities Dividends to stockholders and distributions from Virtu Financial to noncontrolling interest ( 94,688 ) ( 67,589 ) Repurchase of Class C common stock ( 1,566 ) — Purchase of treasury stock ( 88,927 ) ( 51,823 ) Stock options exercised 2,280 — Short-term borrowings, net 77,685 140,000 Proceeds from long-term borrowings 1,245,000 — Repayment of long-term borrowings ( 1,245,000 ) — Payment of tax receivable agreement obligations ( 20,773 ) ( 20,226 ) Debt issuance costs ( 5,684 ) — Net cash provided by (used in) financing activities ( 131,673 ) 362 Effect of exchange rate changes on cash and cash equivalents 4,740 ( 3,526 ) Net increase (decrease) in cash and cash equivalents ( 142,977 ) ( 426,054 ) Cash, cash equivalents, and restricted or segregated cash, beginning of period 913,991 855,460 Cash, cash equivalents, and restricted or segregated cash, end of period $ 771,014 $ 429,406 Supplementary disclosure of cash flow information Cash paid for interest $ 133,920 $ 142,200 Cash paid for taxes 11,918 6,609 7 Table of Contents Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in thousands) 2025 2024 Non-cash investing activities Share-based and accrued incentive compensation to developers relating to capitalized software 5,746 4,101 Non-cash financing activities Repurchase of Class C common stock 921 — Purchase of treasury stock 166 — See accompanying Notes to the Condensed Consolidated Financial Statements (Unaudited). 8 Virtu Financial, Inc. and Subsidiaries Notes to the Condensed Consolidated Financial Statements (Unaudited) (dollars in thousands, except shares and per share amounts, unless otherwise noted) 1. Organization and Basis of Presentation Organization The accompanying Condensed Consolidated Financial Statements include the accounts and operations of Virtu Financial, Inc. (“VFI” or, collectively with its wholly owned or controlled subsidiaries, “Virtu” or the “Company”). VFI is a Delaware corporation whose primary asset is its ownership interest in Virtu Financial LLC (“Virtu Financial”). As of March 31, 2025, VFI owned approximately 57.4 % of the membership interests of Virtu Financial. VFI is the sole managing member of Virtu Financial and operates and controls all of the businesses and affairs of Virtu Financial and its subsidiaries (the “Group”). The Company is a leading financial firm that leverages cutting edge technology to deliver liquidity to the global markets and innovative, transparent trading solutions to its clients. The Company provides deep liquidity in over 25,000 financial instruments, on over 250 venues, in 40 countries worldwide to help create more efficient markets. Leveraging its global market structure expertise and scaled, multi-asset infrastructure, the Company provides its clients with a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. The Company’s product offerings allow its clients to trade on hundreds of venues in over 50 countries and across multiple asset classes, including global equities, Exchange-Traded Funds (“ETFs”), options, foreign exchange, futures, fixed income, cryptocurrencies, and other commodities. The Company’s integrated, multi-asset analytics platform provides a range of pre- and post-trade services, data products and compliance tools that its clients rely upon to invest, trade and manage risk across global markets. The Company has completed two significant acquisitions that have expanded and complemented Virtu Financial's original electronic trading and marking making business. On July 20, 2017, the Company completed the all-cash acquisition of KCG Holdings, Inc. (“KCG”) (the “Acquisition of KCG”). On March 1, 2019 (the “ITG Closing Date”), the Company completed the acquisition of Investment Technology Group, Inc. and its subsidiaries (“ITG”) in an all-cash transaction (the “ITG Acquisition”). Virtu Financial’s principal United States (“U.S.”) subsidiary is Virtu Americas LLC (“VAL”), which is a U.S. broker-dealer. Other principal U.S. subsidiaries include Virtu Financial Global Markets LLC, a U.S. trading entity focused on futures and currencies; Virtu ITG Analytics LLC, a provider of pre- and post-trade analysis, fair value, and trade optimization services; and Virtu ITG Platforms LLC, a provider of workflow technology solutions and network connectivity services. Principal foreign subsidiaries include Virtu Financial Ireland Limited (“VFIL”) and Virtu Europe Trading Limited (“VETL”) (f/k/a Virtu ITG Europe Limited), each formed in Ireland; Virtu ITG UK Limited (“VIUK”), formed in the United Kingdom; Virtu Canada Corp (f/k/a Virtu ITG Canada Corp.), formed in Canada; Virtu Financial Asia Pty Ltd. and Virtu ITG Australia Limited, each formed in Australia; Virtu ITG Hong Kong Limited, formed in Hong Kong; and Virtu Financial Singapore Pte. Ltd. and Virtu ITG Singapore Pte. Ltd., each formed in Singapore, all of which are trading entities focused on asset classes in their respective geographic regions. The Company has two operating segments: (i) Market Making and (ii) Execution Services; and one non-operating segment: Corporate. See Note 22 “Geographic Information and Business Segments” for a further discussion of the Company’s segments. On April 19, 2024, the Company entered into a Unit Purchase Agreement with MarketAxess Holdings Inc. (“MarketAxess”) to sell a 49 % interest in the multi-asset request-for-quote communication platform joint venture (“JV”), RFQ-hub Holdings LLC. See Note 3 “Business Held for Sale” for further details. Basis of Consolidation and Form of Presentation These Condensed Consolidated Financial Statements are presented in U.S. dollars, have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding financial reporting with respect to Form 10-Q and accounting standards generally accepted in the United States of America (“U.S. GAAP”) promulgated by the Financial Accounting Standards Board (“FASB”) in the Accounting Standards Codification (“ASC” or the “Codification”), and reflect all adjustments that, in the opinion of management, are normal and recurring, and that are necessary for a fair statement of the results for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with SEC rules and regulations. The Condensed Consolidated Financial Statements of the Company include its equity interests in Virtu Financial and its 9 subsidiaries. As sole managing member of Virtu Financial, the Company exerts control over the Group’s operations. The Company consolidates Virtu Financial and its subsidiaries’ financial statements and records the interests in Virtu Financial that the Company does not own as noncontrolling interests. All intercompany accounts and transactions have been eliminated in consolidation. 2. Summary of Significant Accounting Policies For a detailed discussion of the Company's significant accounting policies, see Note 2 “Summary of Significant Accounting Policies” in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024. Digital Assets Held Effective January 1, 2025, the Company adopted Accounting Standards Update (“ASU”) 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60) using a modified retrospective approach. This ASU requires measurement of in-scope crypto assets at fair value with gains or losses from remeasurement recognized in net income. The Company, through a foreign subsidiary, had previously entered into certain token purchase, grant and/or similar agreements to purchase, be granted and/or otherwise acquire a certain amount of crypto tokens. At December 31, 2024, based on the nature of the assets, these tokens were recorded at cost within Intangibles on the Consolidated Statements of Financial Condition, in accordance with ASC 350, Intangibles—Goodwill and Other. Upon adoption, the Company records these tokens at fair value within Other assets on the Condensed Consolidated Statements of Financial Condition. As of January 1, 2025, the Company recorded a fair value adjustment of $ 25.4 million and established a deferred tax liability of $ 3.6 million, for a net cumulative-effect adjustment of $ 21.8 million in the beginning balance of Retained earnings. Subsequently, the Company remeasures these tokens at fair value at the end of each reporting period with changes recognized through Other, net on the Condensed Consolidated Statements of Comprehensive Income. The Company has other digital assets which were measured at fair value at December 31, 2024 based on the nature of the assets and the specialized accounting applied. The Company uses the “first-in, first-out” method to determine the cost basis for its Digital assets held. Accounting Pronouncements Recently Adopted Business Combinations—Joint Venture Formations - In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60) . This ASU provides updated guidance on accounting for the formation of joint ventures. The Company adopted this ASU on January 1, 2025, and it did not have a material impact on its Condensed Consolidated Financial Statements. Intangibles—Goodwill and Other—Crypto Assets - In December 2023, the FASB issued ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60) . This ASU requires measurement of in-scope crypto assets at fair value and provides updated guidance on presentation and disclosure requirements for crypto assets. The Company adopted this ASU on January 1, 2025. See above and Note 11 “Digital Assets Held” for details on the impact of the adoption. Compensation—Stock Compensation - In March 2024, the FASB issued ASU 2024-01, Compensation—Stock Compensation (Topic 718) . This ASU clarifies ASC 718 scope application for profits interest or similar awards through illustrative examples. The Company adopted this ASU on January 1, 2025, and it did not have a material impact on its Condensed Consolidated Financial Statements. Codification Improvements - In March 2024, the FASB issued ASU 2024-02, Codification Improvements. This ASU aims to improve and simplify the language and structure of the Codification by removing references to Concepts Statements. The Company adopted this ASU on January 1, 2025, and it did not have a material impact on its Condensed Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted as of March 31, 2025 Income Taxes - In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) . This ASU requires disclosure of additional information on effective tax rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this ASU but does not expect it to have a material impact on its Condensed Consolidated Financial Statements and related disclosures. 10 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures - In November 2024 and January 2025, the FASB issued ASU 2024-03 and ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). These ASUs require disclosure of disaggregated information of Income Statement expense captions that include certain costs, such as employee compensation, depreciation, and intangible asset amortization. They also require disclosure of the total amounts of selling expenses, along with an entity's definition of selling expenses. The amendments are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of these ASUs, but does not expect them to have a material impact on its Condensed Consolidated Financial Statements and related disclosures. 3. Business Held for Sale On April 19, 2024, the Company entered into a Unit Purchase Agreement with MarketAxess Holdings Inc. (“MarketAxess”) pursuant to which the Company has agreed to sell a 49 % interest in the multi-asset request-for-quote communication platform JV, RFQ-hub Holdings LLC (“RFQ-hub Holdings,” or collectively with its wholly owned or controlled subsidiaries, “RFQ-hub”, which includes RFQ-hub Americas LLC, or “RAL”). The sale is anticipated to close in 2025 but remains subject to various closing conditions including the receipt of certain regulatory approvals. Upon the closing of the sale, the Company will retain a minority stake in RFQ-hub. A summary of the assets and liabilities of business held for sale is summarized as follows: (in thousands) March 31, 2025 December 31, 2024 Business assets and liabilities held for sale: Receivables from broker-dealers and clearing organizations $ 140 $ 194 Property, equipment and capitalized software (net) 766 854 Intangibles (net) 3,486 3,486 Other assets 181 81 Liabilities $ ( 1,455 ) $ ( 1,526 ) Total carrying value of RFQ-hub $ 3,118 $ 3,089 4. Earnings per Share The below table contains a reconciliation of Net income before income taxes and noncontrolling interest to Net income available for common stockholders: Three Months Ended March 31, (in thousands) 2025 2024 Income before income taxes and noncontrolling interest $ 223,736 $ 139,820 Provision for income taxes 34,101 28,512 Net income 189,635 111,308 Noncontrolling interest ( 89,954 ) ( 55,491 ) Net income available for common stockholders $ 99,681 $ 55,817 11 The calculation of basic and diluted earnings per share is presented below: Three Months Ended March 31, (in thousands, except for share or per share data) 2025 2024 Basic earnings per share: Net income available for common stockholders $ 99,681 $ 55,817 Less: Dividends and undistributed earnings allocated to participating securities ( 6,369 ) ( 3,073 ) Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities 93,312 52,744 Weighted average shares of common stock outstanding: Class A 85,681,015 88,999,122 Basic earnings per share $ 1.09 $ 0.59 Three Months Ended March 31, (in thousands, except for share or per share data) 2025 2024 Diluted earnings per share: Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities $ 93,312 $ 52,744 Weighted average shares of common stock outstanding: Class A Issued and outstanding 85,681,015 88,999,122 Issuable pursuant to Amended and Restated 2015 Management Incentive Plan 366,543 — 86,047,558 88,999,122 Diluted earnings per share (1) $ 1.08 $ 0.59 (1) Excluded from the computation of diluted Earnings per share were 45,814 unexercised stock options for the three months ended March 31, 2024, because inclusion of the options would have been anti-dilutive. There were none excluded for the Three months ended March 31, 2025. 12 5. Tax Receivable Agreements For a detailed discussion of the Company's tax receivable agreements, see Note 5 “Tax Receivable Agreements” in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024. For the purposes of the tax receivable agreements discussed above, the cash savings realized by the Company are computed by comparing the actual income tax liability of the Company to the amount of such taxes the Company would have been required to pay had there been (i) no increase to the tax basis of the assets of Virtu Financial as a result of the purchase or exchange of Virtu Financial Units, (ii) no tax benefit from the tax basis in the intangible assets of Virtu Financial on the date of the IPO and (iii) no tax benefit as a result of the Net Operating Losses (“NOLs”) and other tax attributes of Virtu Financial. Subsequent adjustments of the tax receivable agreements obligations due to certain events (e.g., changes to the expected realization of NOLs or changes in tax rates) will be recognized within income before taxes and noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income. The Company made payments totaling $ 134.8 million from February 2017 through March 2025 with respect to its TRA obligation. Tax receivable payments are expected to range from approximately $ 0.1 million to $ 22.1 million per year over the next 15 years. At March 31, 2025 and December 31, 2024, the Company’s remaining deferred tax assets that relate to the matters described above were approximately $ 109.0 million and $ 114.4 million, respectively, and the Company’s liabilities over the next 15 years pursuant to the tax receivable agreements were approximately $ 175.8 million and $ 196.6 million for March 31, 2025 and December 31, 2024, respectively. The amounts recorded as of March 31, 2025 and December 31, 2024 are based on best estimates available at the respective dates and may be subject to change after the filing of the Company’s U.S. federal and state income tax returns for the years in which tax savings were realized. 6. Goodwill and Intangible Assets The Company has two operating segments: (i) Market Making; and (ii) Execution Services; and one non-operating segment: Corporate. As of March 31, 2025 and December 31, 2024, the Company’s total amount of goodwill recorded was $ 1,148.9 million. No goodwill impairment was recognized during the three months ended March 31, 2025 and 2024. The following table presents the details of goodwill by segment as of March 31, 2025 and December 31, 2024: (in thousands) Market Making Execution Services Corporate Total Balance as of period-end $ 755,292 $ 393,634 $ — $ 1,148,926 As described in Note 3 “Business Held for Sale”, the Company reclassified an aggregated net carrying amount of $ 3.5 million ($ 7.5 million of gross carrying amount net of $ 4.0 million accumulated amortization) from Intangible assets to Assets of business held for sale. As of March 31, 2025 and December 31, 2024, the Company’s total amount of intangible assets recorded was $ 190.3 million and $ 203.2 million, respectively. Acquired intangible assets consisted of the following as of March 31, 2025 and December 31, 2024: As of March 31, 2025 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives (Years) Customer relationships $ 479,130 $ ( 293,089 ) $ 186,041 10 to 12 Technology 136,000 ( 136,000 ) — 1 to 6 Favorable occupancy leases 5,895 ( 5,654 ) 241 3 to 15 Exchange memberships 3,998 — 3,998 Indefinite Trade name 3,600 ( 3,600 ) — 3 ETF issuer relationships 950 ( 950 ) — 9 ETF buyer relationships 950 ( 950 ) — 9 $ 630,523 $ ( 440,243 ) $ 190,280 13 As of December 31, 2024 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives (Years) Customer relationships $ 479,130 $ ( 281,315 ) $ 197,815 10 to 12 Technology 136,000 ( 136,000 ) — 1 to 6 Favorable occupancy leases 5,895 ( 5,645 ) 250 3 to 15 Exchange memberships 3,998 — 3,998 Indefinite Trade name 3,600 ( 3,600 ) — 3 ETF issuer relationships 950 ( 950 ) — 9 ETF buyer relationships 950 ( 950 ) — 9 Other 1,125 — 1,125 Indefinite $ 631,648 $ ( 428,460 ) $ 203,188 Amortization expense relating to finite-lived intangible assets was approximately $ 11.8 million and $ 14.7 million for the three months ended March 31, 2025 and 2024, respectively. This is included in Amortization of purchased intangibles and acquired capitalized software in the accompanying Condensed Consolidated Statements of Comprehensive Income. The Company expects to record amortization expense as follows over the next five subsequent years: (in thousands) Remainder of 2025 $ 35,349 2026 47,132 2027 47,132 2028 47,132 2029 9,466 2030 36 7. Receivables from/Payables to Broker-Dealers and Clearing Organizations The following is a summary of receivables from and payables to brokers-dealers and clearing organizations at March 31, 2025 and December 31, 2024: (in thousands) March 31, 2025 December 31, 2024 Assets Due from prime brokers $ 652,207 $ 344,662 Deposits with clearing organizations 226,448 223,582 Net equity with futures commission merchants 205,536 199,771 Unsettled trades with clearing organizations 510,324 17,239 Securities failed to deliver 212,360 274,072 Commissions and fees 50,979 41,524 Total receivables from broker-dealers and clearing organizations $ 1,857,854 $ 1,100,850 Liabilities Due to prime brokers $ 543,790 $ 583,914 Net equity with futures commission merchants (1) ( 7,430 ) ( 16,651 ) Unsettled trades with clearing organizations 73,136 251,036 Securities failed to receive 160,610 94,941 Commissions and fees 4,703 5,326 Total payables to broker-dealers and clearing organizations $ 774,809 $ 918,566 (1) The Company presents its balances, including outstanding principal balances on all broker credit facilities, on a net-by-counterparty basis within receivables from and payables to broker-dealers and clearing organizations when the criteria for offsetting are met . Included as a deduction from “Due from prime brokers” and “Net equity with futures commission merchants” is the outstanding principal balance on all of the Company’s prime brokerage credit facilities (described in Note 9 “Borrowings”) of approximately $ 158.1 million and $ 123.0 million as of March 31, 2025 and December 31, 2024, respectively. The loan proceeds from the credit facilities are available only to meet the initial margin requirements associated with the Company’s 14 ordinary course futures and other trading positions, which are held in the Company’s trading accounts with an affiliate of the respective financial institutions. The credit facilities are fully collateralized by the Company’s trading accounts and deposit accounts with these financial institutions. “Securities failed to deliver” and “Securities failed to receive” include amounts with a clearing organization and other broker-dealers. 8. Collateralized Transactions The Company is permitted to sell or repledge securities received as collateral and use these securities to secure repurchase agreements, enter into securities lending transactions or deliver these securities to counterparties or clearing organizations to cover short positions. At March 31, 2025 and December 31, 2024, substantially all of the securities received as collateral have been repledged. The fair value of the collateralized transactions at March 31, 2025 and December 31, 2024 are summarized as follows: (in thousands) March 31, 2025 December 31, 2024 Securities received as collateral: Securities borrowed $ 2,701,853 $ 2,222,054 Securities purchased under agreements to resell 1,153,090 983,753 $ 3,854,943 $ 3,205,807 In the normal course of business, the Company pledges qualified securities with clearing organizations to satisfy daily margin and clearing fund requirements. Financial instruments owned and pledged, where the counterparty has the right to repledge, at March 31, 2025 and December 31, 2024 consisted of the following: (in thousands) March 31, 2025 December 31, 2024 Equities $ 2,411,625 $ 2,269,299 Exchange traded notes 16,959 13,338 $ 2,428,584 $ 2,282,637 9. Borrowings Short-term Borrowings, net The following summarizes the Company’s short-term borrowing balances outstanding, net of related debt issuance costs, with each described in further detail below. March 31, 2025 (in thousands) Borrowing Outstanding Deferred Debt Issuance Cost Short-term Borrowings, net Broker-dealer credit facilities $ 110,000 $ ( 4,077 ) $ 105,923 Short-term bank loans 6,226 — 6,226 $ 116,226 $ ( 4,077 ) $ 112,149 December 31, 2024 (in thousands) Borrowing Outstanding Deferred Debt Issuance Cost Short-term Borrowings, net Broker-dealer credit facilities $ 10,000 $ — $ 10,000 Short-term bank loans 28,541 — 28,541 $ 38,541 $ — $ 38,541 15 Broker-Dealer Credit Facilities The Company is a party to two secured credit facilities with a financial institution to finance overnight securities positions purchased as part of its ordinary course U.S. broker-dealer market making activities. One of the facilities (the “Uncommitted Facility”) is provided on an uncommitted basis with an aggregate borrowing limit of $ 400 million, and is collateralized by VAL’s trading and deposit account maintained at the financial institution. The second credit facility (the “Committed Facility”) with the same financial institution has a borrowing limit of $ 650 million. The Committed Facility consists of two borrowing bases: Borrowing Base A Loan is to be used to finance the purchase and settlement of securities; Borrowing Base B Loan is to be used to fund margin deposit with the National Securities Clearing Corporation. Borrowing Base A Loans are available up to $ 650 million and bear interest at the adjusted Secured Overnight Financing Rate (“SOFR”) or base rate plus 1.25 % per annum. Borrowing Base B Loans are subject to a sublimit of $ 300 million, which was amended to $ 350 million in February 2025, and bear interest at the adjusted SOFR or base rate plus 2.50 % per annum. A commitment fee of 0.50 % per annum on the average daily unused portion of this facility is payable quarterly in arrears. Virtu Financial Singapore Pte. Ltd. is a party to a revolving credit facility with a financial institution (the “Overdraft Facility”) to provide a source of short-term financing. The facility has an aggregate borrowing limit of $ 10 million, and bears interest at the adjusted SOFR or base rate plus 3.5 % per annum. The following summarizes the Company’s broker-dealer credit facilities’ carrying values, net of unamortized debt issuance costs, where applicable. These balances are included within Short-term borrowings on the Condensed Consolidated Statements of Financial Condition. At March 31, 2025 (in thousands) Interest Rate Financing Available Borrowing Outstanding Deferred Debt Issuance Cost Outstanding Borrowings, net Broker-dealer credit facilities: Uncommitted facility 5.50 % $ 400,000 $ 60,000 $ — $ 60,000 Committed facility (1) 5.75 % 650,000 50,000 ( 4,077 ) 45,923 Overdraft facility 7.91 % 10,000 — — — $ 1,060,000 $ 110,000 $ ( 4,077 ) $ 105,923 (1) Interest rate for Borrowing Base A Loan and Borrowing Base B Loan under the Committed Facility was 5.75 % and 7.00 %, respectively. There was no balance outstanding under Borrowing Base B Loan as of March 31, 2025 At December 31, 2024 (in thousands) Interest Rate Financing Available Borrowing Outstanding Deferred Debt Issuance Cost Outstanding Borrowings, net Broker-dealer credit facilities: Uncommitted facility (1) 5.50 % $ 400,000 $ — $ — $ — Committed facility (2) 5.75 % 650,000 — — — Overdraft facility 7.99 % 10,000 10,000 — 10,000 $ 1,060,000 $ 10,000 $ — $ 10,000 (1) $ 0.3 million of deferred debt issuance costs are included within Other assets on the Consolidated Statement of Financial Condition. (2) Interest rate for Borrowing Base A Loan and Borrowing Base B Loan under the Committed Facility was 5.75 % and 7.00 %, respectively. There was no balance outstanding under Borrowing Base B Loan as of December 31, 2024. The following summarizes interest expense for the broker-dealer facilities. Interest expense is included within Interest and dividends expense in the accompanying Condensed Consolidated Statements of Comprehensive Income. Three Months Ended March 31, (in thousands) 2025 2024 Broker-dealer credit facilities: Uncommitted facility $ 1,144 $ 601 Committed facility 809 877 Overdraft facility 186 113 $ 2,139 $ 1,591 16 Short-Term Bank Loans The Company’s international securities clearance and settlement activities are funded with operating cash or with short-term bank loans in the form of overdraft facilities. At March 31, 2025 and December 31, 2024, there was $ 6.2 million and $ 28.5 million, respectively, of short-term bank loans associated with international settlement activities outstanding under these facilities at a weighted average interest rate of approximately 3.4 % and 5.0 %, respectively. Outstanding short-term bank loan balances are included within Short-term borrowings on the Condensed Consolidated Statements of Financial Condition. In November 2024, Virtu Financial Singapore Pte. Ltd. entered into an agreement with a financial institution for a short-term bank loan with a total capacity of $ 50.0 million. At March 31, 2025 and December 31, 2024, there were no balance outstanding under this short-term bank loan. Prime Brokerage Credit Facilities The Company maintains short-term credit facilities with various prime brokers and other financial institutions from which it receives execution or clearing services. The proceeds of these facilities are used to meet margin requirements associated with the products traded by the Company in the ordinary course, and amounts borrowed are collateralized by the Company’s trading accounts with the applicable financial institution. At March 31, 2025 (in thousands) Weighted Average Interest Rate Financing Available Borrowing Outstanding Prime Brokerage Credit Facilities: Prime brokerage credit facilities (1) 6.64 % $ 625,011 $ 158,076 $ 625,011 $ 158,076 At December 31, 2024 (in thousands) Weighted Average Interest Rate Financing Available Borrowing Outstanding Prime Brokerage Credit Facilities: Prime brokerage credit facilities (1) 6.69 % $ 623,168 $ 122,953 $ 623,168 $ 122,953 (1) Outstanding borrowings are included with Receivables from/Payables to broker-dealers and clearing organizations within the Condensed Consolidated Statements of Financial Condition. Interest expense in relation to the facilities was $ 2.5 million and $ 2.6 million for the three months ended March 31, 2025 and 2024 , respectively. 17 Long-Term Borrowings The following summarizes the Company’s long-term borrowings, net of unamortized discount and debt issuance costs, where applicable: At March 31, 2025 (in thousands) Maturity Date Interest Rate Outstanding Principal Discount Deferred Debt Issuance Cost Outstanding Borrowings, net Long-term borrowings: First Lien Term B-2 Loan Facility June 2031 6.82 % $ 1,245,000 $ ( 2,767 ) $ ( 16,137 ) $ 1,226,096 Senior Secured First Lien Notes June 2031 7.50 % 500,000 — ( 8,344 ) 491,656 SBI bonds January 2026 5.00 % 23,340 — — 23,340 $ 1,768,340 $ ( 2,767 ) $ ( 24,481 ) $ 1,741,092 At December 31, 2024 (in thousands) Maturity Date Interest Rate Outstanding Principal Discount Deferred Debt Issuance Cost Outstanding Borrowings, net Long-term borrowings: First Lien Term B-1 Loan Facility June 2031 7.11 % $ 1,245,000 $ ( 2,876 ) $ ( 15,242 ) $ 1,226,882 Senior Secured First Lien Notes June 2031 7.50 % 500,000 — ( 8,680 ) 491,320 SBI bonds January 2026 5.00 % 22,265 — — 22,265 $ 1,767,265 $ ( 2,876 ) $ ( 23,922 ) $ 1,740,467 Credit Agreement On January 13, 2022 (the “Credit Agreement Closing Date”), Virtu Financial, VFH Parent LLC, a Delaware limited liability company and a subsidiary of Virtu Financial (“VFH”), entered into a credit agreement with the lenders party thereto, JPMorgan Chase Bank, N.A. as administrative agent and JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, RBC Capital Markets, Barclays Bank plc, Jefferies Finance LLC, BMO Capital Markets Corp., and CIBC World Markets Corp., as joint lead arrangers and bookrunners (the “Original Credit Agreement”). The Original Credit Agreement provides (i) a senior secured first lien term loan in an aggregate principal amount of $ 1,800.0 million, drawn in its entirety on the Credit Agreement Closing Date, the proceeds of which were used by VFH to repay all amounts outstanding under the previous credit agreement entered into in relation to the ITG Acquisition, to pay fees and expenses in connection therewith, to fund share repurchases under the Company’s repurchase program, and for general corporate purposes, and (ii) a $ 250.0 million senior secured first lien revolving facility to VFH, with a $ 20.0 million letter of credit subfacility and a $ 20.0 million swingline subfacility. The term loan borrowings and revolver borrowings under the Original Credit Agreement bear interest at a per annum rate equal to, at the Company’s election, either (i) the greatest of (a) the prime rate in effect, (b) the greater of (1) the federal funds effective rate and (2) the overnight bank funding rate, in each case plus 0.50 %, (c) an adjusted term SOFR rate with an interest period of one month plus 1.00 % and (d)(1) in the case of term loan borrowings, 1.50 % and (2) in the case of revolver borrowings, 1.00 %, plus, (x) in the case of term loan borrowings, 2.00 % and (y) in the case of revolver borrowings, 1.50 %, or (ii) the greater of (a) an adjusted term SOFR rate for the interest period in effect and (b) (1) in the case of term loan borrowings, 0.50 % and (2) in the case of revolver borrowings, 0.00 %, plus, (x) in the case of term loan borrowings, 3.00 % and (y) in the case of revolver borrowings, 2.50 %. In addition, a commitment fee accrues at a rate of 0.50 % per annum on the average daily unused amount of the revolving facility, with step-downs to 0.375 % and 0.25 % per annum based on VFH’s first lien leverage ratio, and is payable quarterly in arrears. The term loans amortize in annual installments equal to 1.0 % of the original aggregate principal amount of the term loans and the Company repaid $ 18.0 million on January 13, 2023. On December 12, 2023, the Company made a voluntary prepayment of $ 55.0 million, and the payment is applied toward subsequent annual amortization installments. In October 2019, the Company entered into a five-year $ 525.0 million floating-to-fixed interest rate swap agreement. In January 2020, the Company also entered into a five-year $ 1,000.0 million floating-to-fixed interest rate swap agreement. These two interest rate swaps met the criteria to be considered and were designated qualifying cash flow hedges under ASC 815 in the first quarter of 2020, and they effectively fixed interest payment obligations on $ 525.0 million and $ 1,000 million of principal under the previous first lien term loan facility in relation to the ITG Acquisition at rates of 4.3 % and 4.4 % through September 2024 and January 2025, respectively. In April 2021, each of the swap agreements described above was novated to another counterparty and amended in connection with such novation. The amendments included certain changes to collateral posting obligations, and also had the effect of increasing the effective fixed interest payment obligations to rates of 4.5 %, with 18 respect to the earlier maturing swap arrangement, and 4.6 % with respect to the later maturing swap arrangement. In January 2022, in order to align the swap agreements with the Original Credit Agreement, the Company amended each of the swap agreements to align the floating rate term of such swap agreements to SOFR. The effective fixed interest payment obligations remained at 4.5 %, with respect to the earlier maturing swap arrangement, and 4.6 % with respect to the later maturing swap arrangement. In December 2023, the Company terminated the two interest rate swap arrangements and received $ 55.8 million in proceeds from the counterparty. The Company therefore dedesignated those cash flow hedges under ASC 815, and the amounts in AOCI related to the terminated swaps are amortized through interest expense. The Company simultaneously entered into a two-year $ 1,525.0 million floating-to-fixed interest rate swap agreement with the same counterparty (the “December 2023 Swap”). The December 2023 Swap met the criteria to be considered and was designated as a qualifying cash flow hedge under ASC 815 as of December 2023, and it effectively fixed interest payment obligations on $ 1,525.0 million of principal under the first lien term loan facility at a rate of 7.5 % through November 2025, based on the interest rates set forth in the Original Credit Agreement. On June 21, 2024 (the “Amendment No. 1 Effective Date”), the Company entered into Amendment No. 1 to the Original Credit Agreement (the “First Amended Credit Agreement”) and completed the issuance of the Notes (as defined below). Pursuant to the First Amended Credit Agreement, $ 1,245.0 million in aggregate principal amount of Senior Secured First Lien Term B-1 Loans due 2031 (the “Term B-1 Loans”) were issued, the proceeds of which were used, along with the proceeds of the Notes, to repay in full all term loans previously outstanding under the Original Credit Agreement. Additionally, the First Amended Credit Agreement provides an increase in its senior secured first lien revolving credit facility from $ 250.0 million to $ 300.0 million and an extension of the maturity thereof to three years after the Amendment No. 1 Effective Date. The Term B-1 Loans bear interest, at the Company’s election, at either (i) the greatest of (a) the prime rate in effect, (b) the greater of (1) the federal funds effective rate and (2) the overnight bank funding rate, in each case plus 0.50 %, (c) term SOFR for a borrowing with an interest period of one month plus 1.00 % and (d) 1.00 %, plus, in each case, 1.75 %, or (ii) the greater of (x) term SOFR for the interest period in effect and (y) 0 %, plus, in each case, 2.75 %. The Term B-1 Loans will mature on the seventh anniversary of the Amendment No. 1 Effective Date and amortize in annual installments equal to 1.0 % of the original aggregate principal amount of the Term B-1 Loans. The Term B-1 Loans are also subject to contingent principal payments based on excess cash flow and certain other triggering events. In connection with its entry into the First Amended Credit Agreement and the associated reduction in term loan balance, the Company partially terminated the December 2023 Swap, reducing the notional amount thereof from $ 1,525.0 million to $ 1,075.0 million and received $ 2.0 million in proceeds from the counterparty. The cash flow hedge was proportionally dedesignated under ASC 815 as of June 21, 2024. As a result of the partial dedesignation, we recognized a gain of $ 5.7 million in Other Income. The current interest rate swap effectively fixed interest payment obligations on the $ 1,075.0 million of principal of the Term B-1 Loans at a rate of 7.17 % through November 2025, based on the interest rates set forth in the First Amended Credit Agreement. On February 19, 2025 (the “Amendment No. 2 Effective Date”), the Company entered into Amendment No. 2 to the First Amended Credit Agreement (“Amendment No. 2”). Amendment No. 2 amends the First Amended Credit Agreement (as amended, the “Credit Agreement”) to, among other things, effect a repricing of the $ 1,245.0 million in aggregate principal amount of Term B-1 Loans by establishing a new refinancing tranche of $ 1,245.0 million in aggregate principal amount of Senior Secured First Lien Term B-2 Loans (the “Term B-2 Loans”), the proceeds of which were used to repay in full the Term B-1 Loans on the Amendment No. 2 Effective Date. The Term B-2 Loans bear interest, at the Company’s election, at either (i) the greatest of (a) the prime rate in effect, (b) the greater of (1) the federal funds effective rate and (2) the overnight bank funding rate, in each case plus 0.50 %, (c) term SOFR for a borrowing with an interest period of one month plus 1.0 % and (d) 1.0 %, plus, in each case, 1.50 %, or (ii) the greater of (x) term SOFR for the interest period in effect and (y) 0 %, plus, in each case, 2.50 %. The Term B-2 Loans will mature on June 21, 2031 and amortize in annual installments equal to 1.0 % of the original aggregate principal amount of the Term B-2 Loans due on each anniversary of the Amendment No. 2 Effective Date. The Term B-2 Loans are also subject to contingent principal payments based on excess cash flow and certain other triggering events. The current interest rate swap effectively fixes interest payment obligations on the $ 1,075.0 million of principal of the Term B-2 Loans at a rate of 6.92 % through November 2025, based on the interest rates set forth in the Credit Agreement. The revolving facility under the Credit Agreement is subject to a springing net first lien leverage ratio test which may spring into effect as of the last day of a fiscal quarter if usage of the aggregate revolving commitments exceeds a specified level as of such date. VFH is also subject to contingent principal prepayments based on excess cash flow and certain other triggering events. Borrowings under the Credit Agreement are guaranteed by Virtu Financial and VFH’s material non-regulated domestic 19 restricted subsidiaries and secured by substantially all of the assets of VFH and the guarantors, in each case, subject to certain exceptions. The Credit Agreement contains certain customary covenants and events of default, including relating to a change of control. If an event of default occurs and is continuing, the lenders under the Credit Agreement will be entitled to take various actions, including the acceleration of amounts outstanding under the Credit Agreement and all actions permitted to be taken by a secured creditor in respect of the collateral securing the obligations under the Credit Agreement. As of March 31, 2025, $ 1,245.0 million was outstanding under the current term loans, and there were no amounts outstanding under the first lien revolving facility. Senior Secured First Lien Notes On June 21, 2024, VFH and Valor Co-Issuer, Inc., a subsidiary of Virtu Financial, (the “Co-Issuer”) completed the offering of $ 500.0 million aggregate principal amount of 7.50 % senior secured first lien notes due 2031 (the “Notes”). The Notes were issued under an Indenture, dated as of June 21, 2024 (the “Indenture”), among the VFH, the Co-Issuer, Virtu Financial and the subsidiary guarantors party thereto, and U.S. Bank Trust Company, National Association, as the trustee and collateral agent. The Notes mature on June 15, 2031. Interest on the Notes accrues at 7.50 % per annum, payable every six months through maturity on each June 15 and December 15, beginning on December 15, 2024. We refer to VFH and the Co-Issuer together as, the “Issuers.” The Notes and the related guarantees are secured by first-priority perfected liens on substantially all of the Issuers’ and guarantors’ existing and future assets, subject to certain exceptions, including all material personal property, a pledge of the capital stock of the Issuers, the guarantors (other than Virtu Financial) and the direct subsidiaries of the Issuers and the guarantors and 100 % of the non-voting capital stock and up to 65.0 % of the voting capital stock of any now-owned or later acquired foreign subsidiaries that are directly owned by the Issuers or any of the guarantors, which assets also secure obligations under the Credit Agreement on a first-priority basis. The Indenture imposes certain limitations on our ability to (i) incur or guarantee additional indebtedness or issue preferred stock; (ii) pay dividends, make certain investments and make repayments on indebtedness that is subordinated in right of payment to the Notes and make other “restricted payments”; (iii) create liens on their assets to secure debt; (iv) enter into transactions with affiliates; (v) merge, consolidate or amalgamate with another company; (vi) transfer and sell assets; and (vii) permit restrictions on the payment of dividends by Virtu Financial’s subsidiaries. The Indenture also contains customary events of default, including, among others, payment defaults related to the failure to pay principal or interest on Notes, covenant defaults, final maturity default or cross-acceleration with respect to material indebtedness and certain bankruptcy events. Prior to June 15, 2027, we may redeem some or all of the Notes at a redemption price equal to 100 % of the principal amount plus accrued and unpaid interest, if any, to (but not including) the date of redemption, plus an applicable “make whole” premium. Prior to June 15, 2027, we may also redeem up to 40 % of the aggregate principal amount of the Notes with the net cash proceeds from certain equity offerings at a redemption price equal to 107.500 % of the principal amount thereof, plus accrued and unpaid interest, if any, to (but not including) the date of redemption. Prior to June 15, 2027, we may also, on one or more occasions, redeem during each successive twelve-month period following June 21, 2024 up to 10 % of the aggregate original principal amount of notes, at a redemption price equal to 103 % of the principal amount of notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date. On or after June 15, 2027, we may redeem some or all of the Notes, at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to (but not including) the date of redemption, if redeemed during the 12-month period beginning on June 15 of the years indicated below: Period Percentage 2027 103.750 % 2028 101.875 % 2029 and thereafter 100.000 % 20 Upon the occurrence of specified change of control events as defined in the Indenture, we must offer to repurchase the outstanding Notes at 101 % of the aggregate principal amount, plus accrued and unpaid interest, if any, to (but excluding) the purchase date. SBI Bonds On July 25, 2016, VFH issued Japanese Yen Bonds (collectively the “SBI Bonds”) in the aggregate principal amount of ¥ 3.5 billion ($ 33.1 million at issuance date) to SBI Life Insurance Co., Ltd. and SBI Insurance Co., Ltd. The proceeds from the SBI Bonds were used to partially fund the investment in Japannext Co., Ltd. (as described in Note 10 “Financial Assets and Liabilities”). The SBI Bonds are guaranteed by Virtu Financial. The SBI Bonds are subject to fluctuations on the Japanese Yen currency rates relative to the Company’s reporting currency (U.S. Dollar) with the changes reflected in Other, net in the Condensed Consolidated Statements of Comprehensive Income. In December 2022, the maturity of the SBI Bonds was extended to 2026. The principal balance was ¥ 3.5 billion ($ 23.3 million) as of March 31, 2025 and ¥ 3.5 billion ($ 22.3 million) as of December 31, 2024. The Company had a loss of $ 1.1 million and a gain of $ 1.7 million during the three months ended March 31, 2025 and 2024, respectively, due to changes in foreign currency rates. As of March 31, 2025, aggregate future required minimum principal payments based on the terms of the long-term borrowings were as follows: (in thousands) Remainder of 2025 $ — 2026 35,790 2027 12,450 2028 12,450 2029 12,450 2030 12,450 Thereafter 1,682,750 Total principal of long-term borrowings $ 1,768,340 10. Financial Assets and Liabilities Financial Instruments Measured at Fair Value The fair value of equities, options, on-the-run U.S. government obligations, exchange traded notes and digital assets is estimated using recently executed transactions and market price quotations in active markets and are categorized as Level 1 with the exception of inactively traded equities and certain other financial instruments, which are categorized as Level 2. The Company’s corporate bonds, derivative contracts, other U.S. and non-U.S. government obligations and receivables and payables linked to digital assets have been categorized as Level 2. Fair value of the Company’s derivative contracts is based on the indicative prices obtained from a number of banks and broker-dealers, as well as management’s own analyses. The indicative prices have been independently validated through the Company’s risk management systems, which are designed to check prices with information independently obtained from exchanges and venues where such financial instruments are listed or to compare prices of similar instruments with similar maturities for listed financial futures in foreign exchange. The Company prices certain financial instruments held for trading at fair value based on theoretical prices, which can differ from quoted market prices. The theoretical prices reflect price adjustments primarily caused by the fact that the Company continuously prices its financial instruments based on all available information. This information includes prices for identical and near-identical positions, as well as the prices for securities underlying the Company’s positions, on other exchanges that are open after the exchange on which the financial instruments is traded closes. The Company validates that all price adjustments can be substantiated with market inputs and checks the theoretical prices independently. Consequently, such financial instruments are classified as Level 2. 21 Fair value measurements for those items measured on a recurring basis are summarized below as of March 31, 2025: March 31, 2025 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value Assets Financial instruments owned, at fair value: Equity securities $ 805,709 $ 2,799,329 $ — $ — $ 3,605,038 U.S. and Non-U.S. government obligations 955,752 629,405 — — 1,585,157 Corporate Bonds — 1,047,092 — — 1,047,092 Exchange traded notes 63 37,989 — — 38,052 Currency forwards — 313,648 — ( 301,861 ) 11,787 Options 5,271 — — — 5,271 $ 1,766,795 $ 4,827,463 $ — $ ( 301,861 ) $ 6,292,397 Financial instruments owned, pledged as collateral: Equity securities $ 1,626,860 $ 784,765 $ — $ — $ 2,411,625 Exchange traded notes 1 16,958 — — 16,959 $ 1,626,861 $ 801,723 $ — $ — $ 2,428,584 Other Assets Equity investment $ — $ — $ 85,009 $ — $ 85,009 Digital assets 43,581 — — — 43,581 Exchange stock 797 — — — 797 $ 44,378 $ — $ 85,009 $ — $ 129,387 Receivables from broker dealers and clearing organizations: Receivables linked to digital assets $ — $ 108,358 $ — $ — $ 108,358 $ — $ 108,358 $ — $ — $ 108,358 Liabilities Financial instruments sold, not yet purchased, at fair value: Equity securities $ 2,317,340 $ 2,674,529 $ — $ — $ 4,991,869 U.S. and Non-U.S. government obligations 34,916 1,595,659 — — 1,630,575 Corporate Bonds — 1,388,449 — — 1,388,449 Exchange traded notes 56 100,676 — — 100,732 Currency forwards — 301,972 — ( 301,972 ) — Options 5,231 — — — 5,231 $ 2,357,543 $ 6,061,285 $ — $ ( 301,972 ) $ 8,116,856 Payables to broker dealers and clearing organizations: Interest rate swap $ — $ 2,243 $ — $ — $ 2,243 Payables linked to digital assets — 197,677 — — 197,677 $ — $ 199,920 $ — $ — $ 199,920 Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2024: 22 December 31, 2024 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value Assets Financial instruments owned, at fair value: Equity securities $ 686,827 $ 2,471,450 $ — $ — $ 3,158,277 U.S. and Non-U.S. government obligations 348,761 908,625 — — 1,257,386 Corporate Bonds — 967,377 — — 967,377 Exchange traded notes 885 40,602 — — 41,487 Currency forwards — 716,970 — ( 676,905 ) 40,065 Options 55,423 — — — 55,423 $ 1,091,896 $ 5,105,024 $ — $ ( 676,905 ) $ 5,520,015 Financial instruments owned, pledged as collateral: Equity securities $ 1,639,404 $ 629,895 $ — $ — $ 2,269,299 Exchange traded notes — 13,338 — — 13,338 $ 1,639,404 $ 643,233 $ — $ — $ 2,282,637 Other Assets Equity investment $ — $ — $ 75,843 $ — $ 75,843 Digital assets 81,671 — — — 81,671 Exchange stock 812 — — — 812 $ 82,483 $ — $ 75,843 $ — $ 158,326 Receivables from broker dealers and clearing organizations: Receivables linked to digital Assets $ — $ 51,595 $ — $ — $ 51,595 $ — $ 51,595 $ — $ — $ 51,595 Liabilities Financial instruments sold, not yet purchased, at fair value: Equity securities $ 1,837,195 $ 1,854,883 $ — $ — $ 3,692,078 U.S. and Non-U.S. government obligations 107,045 1,313,955 — — 1,421,000 Corporate Bonds — 1,249,413 — — 1,249,413 Exchange traded notes 15 73,225 — — 73,240 Currency forwards — 681,878 — ( 681,878 ) — Options 5,240 — — — 5,240 $ 1,949,495 $ 5,173,354 $ — $ ( 681,878 ) $ 6,440,971 Payables to broker dealers and clearing organizations: Interest rate swap $ — $ 2,572 $ — $ — $ 2,572 Payables linked to digital assets — 134,164 — — 134,164 $ — $ 136,736 $ — $ — $ 136,736 JNX Investment The Company has a minority investment (the “JNX Investment”) in Japannext Co., Ltd. (“JNX”), formerly known as SBI Japannext Co., Ltd., a proprietary trading system based in Tokyo. In connection with the JNX Investment, the Company issued the SBI Bonds (as described in Note 9 “Borrowings”) and used the proceeds to partially finance the transaction. The JNX Investment is included within Level 3 of the fair value hierarchy. As of March 31, 2025 and December 31, 2024, the fair value of the JNX Investment was determined using a weighted average of valuations using 1) the discounted cash flow method, an income approach; 2) a market approach based on average enterprise value/EBITDA ratios of comparable companies; and to a lesser extent 3) a transaction approach based on transaction values of comparable companies. The fair value measurement is highly sensitive to significant changes in the unobservable inputs, and significant increases (decreases) in discount rate or decreases (increases) in enterprise value/EBITDA multiples would result in a significantly lower (higher) fair value measurement. 23 The table below presents information on the valuation techniques, significant unobservable inputs and their ranges for the JNX Investment: March 31, 2025 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Equity investment $ 85,009 Discounted cash flow Estimated revenue growth 5.0 % - 5.0 % 5.0 % Discount rate 16.0 % - 16.0 % 16.0 % Market Future enterprise value/ EBITDA ratio 6.8 x - 17.4 x 14.2 x December 31, 2024 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Equity investment $ 75,843 Discounted cash flow Estimated revenue growth 5.0 % - 5.0 % 5.0 % Discount rate 16.4 % - 16.4 % 16.4 % Market Future enterprise value/ EBITDA ratio 7.5 x - 18.0 x 13.2 x Changes in the fair value of the JNX Investment are included within Other, net in the Condensed Consolidated Statements of Comprehensive Income. The following presents the changes in the Company’s Level 3 financial instruments measured at fair value on a recurring basis: Three Months Ended March 31, 2025 (in thousands) Balance at December 31, 2024 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at March 31, 2025 Change in Net Unrealized Gains / (Losses) on Investments still held at March 31, 2025 Assets Other assets: Equity investment $ 75,843 $ — $ 9,166 $ — $ — $ 85,009 $ 9,166 Total $ 75,843 $ — $ 9,166 $ — $ — $ 85,009 $ 9,166 (1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Three Months Ended March 31, 2024 (in thousands) Balance at December 31, 2023 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at March 31, 2024 Change in Net Unrealized Gains / (Losses) on Investments still held at March 31, 2024 Assets Other assets: Equity investment $ 81,805 $ — $ 2,782 $ — $ — $ 84,587 $ 2,782 Total $ 81,805 $ — $ 2,782 $ — $ — $ 84,587 $ 2,782 (1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. 24 Financial Instruments Not Measured at Fair Value The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the Condensed Consolidated Statements of Financial Condition. The table below excludes non-financial assets and liabilities. The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximates fair value due to the relatively short-term nature of the underlying assets. The fair value of the Company’s long-term borrowings is based on quoted prices from the market for similar instruments, and is categorized as Level 2 in the fair value hierarchy. The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of March 31, 2025: March 31, 2025 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 723,650 $ 723,650 $ 723,650 $ — $ — Cash restricted or segregated under regulations and other 47,364 47,364 47,364 — — Securities borrowed 2,780,405 2,780,405 — 2,780,405 — Securities purchased under agreements to resell 1,153,090 1,153,090 — 1,153,090 — Receivables from broker-dealers and clearing organizations 1,749,496 1,749,496 — 1,749,496 — Receivables from customers 189,382 189,382 — 189,382 — Other assets (1) 31,956 31,956 9,203 22,753 — Total Assets $ 6,675,343 $ 6,675,343 $ 780,217 $ 5,895,126 $ — Liabilities Short-term borrowings $ 112,149 $ 116,226 $ — $ 116,226 $ — Long-term borrowings 1,741,092 1,785,993 — 1,785,993 — Securities loaned 2,827,025 2,827,025 — 2,827,025 — Securities sold under agreements to repurchase 1,461,415 1,461,415 — 1,461,415 — Payables to broker-dealers and clearing organizations 574,889 574,889 — 574,889 — Payables to customers 66,732 66,732 — 66,732 — Other liabilities (2) 39,434 39,434 — 39,434 — Total Liabilities $ 6,822,736 $ 6,871,714 $ — $ 6,871,714 $ — (1) Includes cash collateral and deposits, and interest and dividends receivables. (2) Includes deposits, interest and dividends payable. 25 The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2024: December 31, 2024 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 872,513 $ 872,513 $ 872,513 $ — $ — Cash restricted or segregated under regulations and other 41,478 41,478 41,478 — — Securities borrowed 2,294,529 2,294,529 — 2,294,529 — Securities purchased under agreements to resell 983,941 983,941 — 983,941 — Receivables from broker-dealers and clearing organizations 1,049,255 1,049,255 — 1,049,255 — Receivables from customers 149,804 149,804 — 149,804 — Other assets (1) 31,726 31,726 11,121 20,605 — Total Assets $ 5,423,246 $ 5,423,246 $ 925,112 $ 4,498,134 $ — Liabilities Short-term borrowings $ 38,541 $ 38,541 $ — $ 38,541 $ — Long-term borrowings 1,740,467 1,788,719 — 1,788,719 — Securities loaned 2,431,878 2,431,878 — 2,431,878 — Securities sold under agreements to repurchase 1,271,788 1,271,788 — 1,271,788 — Payables to broker-dealers and clearing organizations 781,830 781,830 — 781,830 — Payables to customers 46,112 46,112 — 46,112 — Other liabilities (2) 26,114 26,114 — 26,114 — Total Liabilities $ 6,336,730 $ 6,384,982 $ — $ 6,384,982 $ — (1) Includes cash collateral and deposits, and interest and dividends receivables. (2) Includes deposits, interest and dividends payable. Offsetting of Financial Assets and Liabilities The Company does not net securities borrowed and securities loaned, or securities purchased under agreements to resell and securities sold under agreements to repurchase. These financial instruments are presented on a gross basis in the Condensed Consolidated Statements of Financial Condition. In the tables below, the amounts of financial instruments owned that are not offset in the Condensed Consolidated Statements of Financial Condition, but could be netted against financial liabilities with specific counterparties under legally enforceable master netting agreements in the event of default, are presented to provide financial statement readers with the Company’s estimate of its net exposure to counterparties for these financial instruments. 26 The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of March 31, 2025 and December 31, 2024: March 31, 2025 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 2,780,405 $ — $ 2,780,405 $ ( 2,701,853 ) $ ( 38,765 ) $ 39,787 Securities purchased under agreements to resell 1,153,090 — 1,153,090 ( 1,153,090 ) — — Trading assets, at fair value: Currency forwards 313,648 ( 301,861 ) 11,787 — — 11,787 Options 5,271 — 5,271 — ( 5,019 ) 252 Total $ 4,252,414 $ ( 301,861 ) $ 3,950,553 $ ( 3,854,943 ) $ ( 43,784 ) $ 51,826 Gross Amounts of Recognized Liabilities Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 2,827,025 $ — $ 2,827,025 $ ( 2,782,163 ) $ ( 38,765 ) $ 6,097 Securities sold under agreements to repurchase 1,461,415 — 1,461,415 ( 1,461,415 ) — — Payable to broker-dealers and clearing organizations: Interest rate swaps 2,243 — 2,243 — — 2,243 Trading liabilities, at fair value: Currency forwards 301,972 ( 301,972 ) — — — — Options 5,231 — 5,231 — ( 4,954 ) 277 Total $ 4,597,886 $ ( 301,972 ) $ 4,295,914 $ ( 4,243,578 ) $ ( 43,719 ) $ 8,617 December 31, 2024 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 2,294,529 $ — $ 2,294,529 $ ( 2,222,054 ) $ ( 39,309 ) $ 33,166 Securities purchased under agreements to resell 983,941 — 983,941 ( 983,753 ) — 188 Trading assets, at fair value: Currency forwards 716,970 ( 676,905 ) 40,065 — — 40,065 Options 55,423 — 55,423 — ( 55,423 ) — Total $ 4,050,863 $ ( 676,905 ) $ 3,373,958 $ ( 3,205,807 ) $ ( 94,732 ) $ 73,419 27 Gross Amounts of Recognized Liabilities Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 2,431,878 $ — $ 2,431,878 $ ( 2,375,372 ) $ ( 48,545 ) $ 7,961 Securities sold under agreements to repurchase 1,271,788 — 1,271,788 ( 1,271,573 ) — 215 Payables to broker-dealers and clearing organizations: Interest rate swaps 2,572 — 2,572 — — 2,572 Trading liabilities, at fair value: Currency forwards 681,878 ( 681,878 ) — — — — Options 5,240 — 5,240 — ( 5,213 ) 27 Total $ 4,393,356 $ ( 681,878 ) $ 3,711,478 $ ( 3,646,945 ) $ ( 53,758 ) $ 10,775 The following table presents gross obligations for securities sold under agreements to repurchase and for securities lending transactions by remaining contractual maturity and the class of collateral pledged as of March 31, 2025 and December 31, 2024: March 31, 2025 Remaining Contractual Maturity (in thousands) Overnight and Continuous Less than 30 days 30 - 60 days 61 - 90 Days Greater than 90 days Total Securities sold under agreements to repurchase: Equity securities $ 100,000 $ 90,000 $ 185,000 $ 75,000 $ — $ 450,000 U.S. and Non-U.S. government obligations 1,011,415 — — — — 1,011,415 Total $ 1,111,415 $ 90,000 $ 185,000 $ 75,000 $ — $ 1,461,415 Securities loaned: Equity securities $ 2,827,025 $ — $ — $ — $ — $ 2,827,025 Total $ 2,827,025 $ — $ — $ — $ — $ 2,827,025 December 31, 2024 Remaining Contractual Maturity (in thousands) Overnight and Continuous Less than 30 days 30 - 60 days 61 - 90 Days Greater than 90 days Total Securities sold under agreements to repurchase: Equity securities $ — $ 190,000 $ 185,000 $ 75,000 $ — $ 450,000 U.S. and Non-U.S. government obligations 821,788 — — — — 821,788 Total $ 821,788 $ 190,000 $ 185,000 $ 75,000 $ — $ 1,271,788 Securities loaned: Equity securities $ 2,431,878 $ — $ — $ — $ — $ 2,431,878 Total $ 2,431,878 $ — $ — $ — $ — $ 2,431,878 28 11. Digital Assets Held The following table summarizes Digital assets held at March 31, 2025 and December 31, 2024: (in thousands, except units) March 31, 2025 December 31, 2024 Units Cost Basis Fair Value Carrying Value (1) Bitcoin 235 $ 19,416 $ 19,420 $ 59,925 Ethereum 4,079 7,339 7,447 11,212 PYTH tokens 75,121,251 1,161 10,517 1,158 Other NM 6,362 6,197 10,501 Total Digital assets held $ 34,278 $ 43,581 $ 82,796 (1) 75.0 million PYTH tokens were recorded at a carrying value of $ 1.1 million at cost in Intangibles as of December 31, 2024. As of March 31, 2025, 75.0 million PYTH tokens with a fair value of $ 10.5 million are subject to selling restrictions. The time-based selling restrictions will unlock annually between 2025 and 2027. 12. Derivative Instruments The fair value of the Company’s derivative instruments on a gross basis consisted of the following at March 31, 2025 and December 31, 2024: (in thousands) March 31, 2025 December 31, 2024 Derivatives Assets Financial Statement Location Fair Value Notional Fair Value Notional Derivative instruments not designated as hedging instruments: Equities futures Receivables from broker-dealers and clearing organizations $ ( 12,795 ) $ 1,644,489 $ ( 541 ) $ 1,069,167 Commodity futures Receivables from broker-dealers and clearing organizations ( 12,127 ) 7,926,851 5,096 5,610,161 Currency futures Receivables from broker-dealers and clearing organizations ( 1,053 ) 4,559,333 ( 6,093 ) 5,211,677 Fixed income futures Receivables from broker-dealers and clearing organizations 6 42,472 ( 3,890 ) 110,748 Options Financial instruments owned 5,271 1,549,597 55,423 808,189 Currency forwards Financial instruments owned 313,648 34,685,749 716,970 42,202,047 Derivatives Liabilities Financial Statement Location Fair Value Notional Fair Value Notional Derivative instruments not designated as hedging instruments: Equities futures Payables to broker-dealers and clearing organizations $ ( 2,749 ) $ 613,032 $ 527 $ 1,774,043 Commodity futures Payables to broker-dealers and clearing organizations ( 1,457 ) 44,724 ( 277 ) 56,331 Currency futures Payables to broker-dealers and clearing organizations 130 30,631 7,382 2,232,543 Fixed income futures Payables to broker-dealers and clearing organizations ( 1,134 ) 344,141 ( 74 ) 21,077 Options Financial instruments sold, not yet purchased 5,231 1,551,777 5,240 820,023 Currency forwards Financial instruments sold, not yet purchased 301,972 34,679,910 681,878 42,184,501 Derivative instruments designated as hedging instruments: Interest rate swaps Payables to broker-dealers and clearing organizations 2,243 1,075,000 2,572 1,075,000 Amounts included in receivables from and payables to broker-dealers and clearing organizations represent net variation margin on long and short futures contracts as well as amounts receivable or payable on interest rate swaps. 29 The following table summarizes the net gain (loss) from derivative instruments not designated as hedging instruments under ASC 815, which are recorded in total revenues, and from those designated as hedging instruments under ASC 815, which are initially recorded in other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024. Three Months Ended March 31, (in thousands) Financial Statements Location 2025 2024 Derivative instruments not designated as hedging instruments: Futures Trading income, net $ ( 30,231 ) $ 1,532 Currency forwards Trading income, net 89,027 ( 6,061 ) Options Trading income, net 8,582 13,038 Interest rate swap on term loans (1) Other, net — — Terminated interest rate swaps (2) Financing interest expense on long-term borrowings ( 2,910 ) ( 11,702 ) $ 64,468 $ ( 3,193 ) Derivative instruments designated as hedging instruments: Interest rate swaps (1) Other comprehensive income $ 431 $ 13,447 $ 431 $ 13,447 (1) The Company entered into a two-year $ 1,525 million floating-to-fixed interest rate agreement in December 2023 (the “December 2023 Swap”). The two-year interest rate swap met the criteria to be considered as a qualifying cash flow hedge under ASC 815 as of December 2023, and the mark-to-market gains (losses) on the instrument was deferred within Other comprehensive income on the Condensed Consolidated Statements of Comprehensive Income. In June 2024, the Company partially terminated and dedesignated a portion of our ongoing December 2023 Swap to an updated notional of $ 1,075 million, and recorded a gain of $ 5.7 million in Other, net. See Note 9 “Borrowings” for further details. (2) The Company records the amortization of AOCI balances related to its previously terminated interest rate swaps in Financing interest expense on long-term borrowings on the Condensed Consolidated Statements of Comprehensive Income. See Note 9 “Borrowings” for further details on the terminated swaps. 13. Variable Interest Entities A variable interest entity (“VIE”) is an entity that lacks one or more of the following characteristics: (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The Company will be considered to have a controlling financial interest and will consolidate a VIE if it has both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has an interest in a joint venture (“JV”) that builds and maintains communication networks and related assets globally. The Company and its JV partners each pay monthly fees for the use of the communication networks in connection with their respective trading activities, and the JV may sell excess bandwidth that is not utilized by the JV members to third parties. As of March 31, 2025, the Company held a noncontrolling interest of 50.0 % in the JV. The Company previously held a noncontrolling interest of 12.5 % in another JV that also builds and maintains communication networks and related assets and followed a similar fee arrangement. As of September 1, 2024, the Company had disposed of its interest in this JV. The Company has an interest in a JV that offers derivatives trading technology and execution services to broker-dealers, professional traders and select hedge funds. As of March 31, 2025, the Company held approximately a 9.8 % noncontrolling interest in this JV. The Company has an interest in a JV that operates a member-owned equities exchange with the goal of increasing competition and transparency, while reducing fixed costs and simplifying execution of equity trading in the U.S. As of March 31, 2025, the Company held approximately a 13.1 % noncontrolling interest in this JV. The Company has an interest in a JV that was formed for the purpose of developing and operating a cryptocurrency trading platform with the goal of increasing competition and transparency, while improving trading performance and reducing operational risk. As of March 31, 2025, the Company held approximately a 9.1 % noncontrolling interest in this JV. 30 The Company’s JVs noted above meet the criteria to be considered VIEs, which it does not consolidate. The Company records its interest in the JVs under the equity method of accounting and records its investment in the JVs within Other assets and its amounts payable for communication services provided by the telecommunication JVs within Accounts payable, accrued expenses and other liabilities on the Statements of Financial Condition as applicable. The Company records its pro-rata share of each JV's earnings or losses within Other, net and fees related to the use of communication services provided by the JVs within Communications and data processing on the Condensed Consolidated Statements of Comprehensive Income. The Company’s exposure to the obligations of these VIEs is generally limited to its interests in each respective JV, which is the carrying value of the equity investment in each JV. The following table presents the Company’s nonconsolidated VIEs at March 31, 2025: Carrying Amount Maximum Exposure to Loss VIEs' assets (in thousands) Asset Liability Equity investment $ 66,848 $ — $ 66,848 $ 351,336 The following table presents the Company’s nonconsolidated VIEs at December 31, 2024: Carrying Amount Maximum Exposure to Loss VIEs' assets (in thousands) Asset Liability Equity investment $ 66,970 $ — $ 66,970 $ 345,235 The Company formed a JV to support the growth and expansion of a multi-asset request-for-quote communication platform in 2022. As of March 31, 2025, the Company held a 51 % controlling interest in this entity. This JV meets the criteria to be considered a VIE, and based on the standard for control set forth above, the Company consolidates this entity and records the interest that the Company does not own as noncontrolling interest in the Condensed Consolidated Financial Statements. On April 19, 2024, the Company entered into an agreement to sell a 49 % interest in the multi-asset request-for-quote communication platform JV. The sale is subject to various closing conditions including the receipt of certain regulatory approvals. Upon the closing of the sale, the Company will retain a minority stake in the JV. See Note 3 “Business Held for Sale” for further details. 14. Revenues from Contracts with Customers For more information on revenue recognition and the nature of services provided, see Note 2 "Summary of Significant Accounting Policies" and Note 13 "Revenues from Contracts with Customers" to the Consolidated Financial Statements of the Company's 2024 Annual Report on Form 10-K. Disaggregation of Revenues The following tables present the Company’s revenue from contracts with customers disaggregated by service, and timing of revenue recognition, reconciled to the Company’s segments, for the three months ended March 31, 2025 and 2024: 31 Three Months Ended March 31, 2025 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 17,312 $ 97,434 $ — $ 114,746 Workflow technology — 27,071 — 27,071 Analytics — 9,490 — 9,490 Total revenue from contracts with customers 17,312 133,995 — 151,307 Other sources of revenue 673,860 7,013 5,689 686,562 Total revenues $ 691,172 $ 141,008 $ 5,689 $ 837,869 Timing of revenue recognition: Services transferred at a point in time $ 691,172 $ 123,068 $ 5,689 $ 819,929 Services transferred over time — 17,940 — 17,940 Total revenues $ 691,172 $ 141,008 $ 5,689 $ 837,869 Three Months Ended March 31, 2024 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 7,202 $ 78,210 $ — $ 85,412 Workflow technology — 23,918 — 23,918 Analytics — 9,281 — 9,281 Total revenue from contracts with customers 7,202 111,409 — 118,611 Other sources of revenue 513,806 6,379 4,043 524,228 Total revenues $ 521,008 $ 117,788 $ 4,043 $ 642,839 Timing of revenue recognition: Services transferred at a point in time $ 521,008 $ 100,137 $ 4,043 $ 625,188 Services transferred over time — 17,651 — 17,651 Total revenues $ 521,008 $ 117,788 $ 4,043 $ 642,839 Remaining Performance Obligations and Revenue Recognized from Past Performance Obligations As of March 31, 2025 and 2024, the aggregate amount of the transaction price allocated to the performance obligations relating to workflow technology and analytics revenues that are unsatisfied (or partially unsatisfied) was not material. Contract Assets and Contract Liabilities The timing of the revenue recognition may differ from the timing of payment from customers. The Company records a receivable when revenue is recognized prior to payment, and when the Company has an unconditional right to payment. The Company records a contract liability when payment is received prior to the time at which the satisfaction of the service obligation occurs. Receivables related to revenues from contracts with customers amounted to $ 72.6 million and $ 62.1 million as of March 31, 2025 and December 31, 2024, respectively. The Company did not identify any contract assets. There were no impairment losses on receivables as of March 31, 2025. Deferred revenue primarily relates to deferred commissions allocated to analytics products and subscription fees billed 32 in advance of satisfying the performance obligations. Deferred revenue related to contracts with customers was $ 10.0 million and $ 8.1 million as of March 31, 2025 and December 31, 2024, respectively. The Company recognized the full amount of revenue during the three months ended March 31, 2025 and 2024, that had been recorded as deferred revenue in the respective prior year. The Company has not identified any costs to obtain or fulfill its contracts under ASC 606. 15. Income Taxes The Company is subject to U.S. federal, state and local income tax at the rate applicable to corporations for the share of income that is not attributable to the noncontrolling interest in Virtu Financial. These noncontrolling interests are subject to U.S. taxation at the partner level. Accordingly, for the three months ended March 31, 2025 and 2024, the income attributable to these noncontrolling interests was reported in the Condensed Consolidated Statements of Comprehensive Income, but the related U.S. income tax expense attributable to these noncontrolling interests was not reported by the Company as it is the obligation of the individual partners. The Company’s non-U.S. subsidiaries are subject to foreign income taxes in the jurisdictions in which they operate. The Company’s provisions for income taxes and effective tax rates were $ 34.1 million, and 15.2 %, and $ 28.5 million, and 20.4 % for the three months ended March 31, 2025 and 2024, respectively. Income tax expense is also affected by the differing effective tax rates in foreign, state and local jurisdictions where certain of the Company’s subsidiaries are subject to corporate taxation. Included in Other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2025 and December 31, 2024 are current income tax receivables of $ 27.6 million and $ 13.2 million, respectively. The balances at March 31, 2025 and December 31, 2024 primarily comprised prepayments of income tax and income tax benefits due to the Company from federal, state, local, and foreign tax jurisdictions based on income before taxes. Included in Accounts payable, accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition at March 31, 2025 and December 31, 2024 are current tax liabilities of $ 40.4 million and $ 22.5 million, respectively. The balances at March 31, 2025 and December 31, 2024 primarily comprise income taxes owed to federal, state and local, and foreign tax jurisdictions based on income before taxes. Deferred income taxes arise primarily due to the amortization of the deferred tax assets recognized in connection with the IPO (see Note 5 “Tax Receivable Agreements”), differences in the valuation of financial assets and liabilities, and other temporary differences arising from the deductibility of compensation, depreciation, and other expenses in different time periods for book and income tax return purposes. There are no expiration dates on the deferred tax assets. The provisions of ASC 740 require that carrying amounts of deferred tax assets be reduced by a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically with appropriate consideration given to all positive and negative evidence related to the realization of the deferred tax assets. At March 31, 2025 and December 31, 2024, the Company did not have any U.S. federal, state or local net operating loss carryforwards and therefore the Company did not record a deferred tax asset related to any federal net operating loss carryforwards. The Company has non-U.S. net operating losses at March 31, 2025 and December 31, 2024, of $ 56.5 million and $ 58.2 million, respectively, and has recorded related deferred tax assets of $ 10.0 million and $ 10.3 million, respectively. A full valuation allowance was recorded against these deferred tax assets at March 31, 2025 and December 31, 2024 as it is more likely than not that these deferred tax assets will not be realized. No valuation allowance against the remaining deferred taxes was recorded as of March 31, 2025 and December 31, 2024 because it is more likely than not that these deferred tax assets will be fully realized. The Company is subject to taxation in U.S. federal, state, local and foreign jurisdictions. As of March 31, 2025, the Company’s tax years for 2015 through 2023 and 2017 through 2023 are subject to examination by U.S. and non-U.S. tax authorities, respectively. In addition, the Company is subject to state and local income tax examinations in various jurisdictions for the tax years 2013 through 2023. The final outcome of these examinations is not yet determinable. However, the Company anticipates that adjustments related to these examinations, if any, will not result in a material change to its financial condition, results of operations and cash flows. The Company’s policy for recording interest and penalties associated with audits is to record such items as a component of income or loss before income taxes and noncontrolling interest. Penalties, if any, are recorded in Operations and administrative expense and interest received or paid is recorded in Other, net or Operations and administrative expense in the Condensed Consolidated Statements of Comprehensive Income, respectively. 33 The Company had $ 23.0 million of unrecognized tax benefits as of March 31, 2025, all of which would affect the Company’s effective tax rate if recognized. The Company has determined that there are no uncertain tax positions that would have a material impact on the Company’s financial position as of March 31, 2025. 16. Commitments, Contingencies and Guarantees Legal and Regulatory Proceedings In the ordinary course of business, the nature of the Company’s business subjects it to claims, lawsuits, regulatory examinations or investigations and other proceedings, any of which could result in the imposition of fines, penalties or other sanctions against the Company. The Company and its subsidiaries are subject to several of these matters at the present time. As previously disclosed in prior regulatory filings, the U.S. Securities and Exchange Commission undertook an investigation of aspects of the Company’s internal information access barriers. The Company cooperated with this civil investigation and engaged in settlement discussions but has been unable to reach a settlement. In September 2023, the SEC filed an action against the Company alleging violations of federal securities laws with respect to the Company’s information barriers policies and procedures for a specified time period in and around January 2018 to April 2019 and related statements made by the Company during such period. The Company believes it has meritorious defenses and is defending itself vigorously. Specifically, the Company is asserting, among other defenses, that it maintained reasonable policies, procedures and controls to protect data during the period consistent with applicable law, that related statements made to clients and investors were true and accurate, and that the statute of limitations has expired with respect to certain claims. In matters related to the SEC investigation noted above, the Company and certain of its current and former executive officers were named as defendants on May 19, 2023 in Hiebert v. Virtu Financial, Inc., No. 23-cv-03770 and on October 31, 2023 in City of Birmingham Retirement and Relief System v. Virtu Financial, Inc., No. 23-cv-08123. The complaints were each filed by purported stockholders in the Eastern District of New York on behalf of a putative class and assert that the Company made materially false and misleading statements and omissions in its public filings in violation of federal securities laws. The complaints were subsequently consolidated and recaptioned in re Virtu Financial, Inc. Securities Litigation , No. 23-cv-03770. The Company believes it has meritorious defenses against claims that its public disclosures were inadequate or misleading. The Company maintains that such disclosures were true and accurate and compliant with applicable law and will defend itself vigorously. The Company also has received requests for information related to the SEC investigation pursuant to Section 220 of the Delaware General Corporation Law from counsel for purported stockholders. On March 26, 2025, members of the Company’s Board of Directors and certain current and former executives were named in a derivative complaint in Adams v. Viola et al. , No. 1:25-cv-1688 filed on behalf of the Company in which it is asserted that the defendants breached fiduciary duties to the Company related to the FS matter. A similar derivative complaint was filed on April 9, 2025 in Deisz v. Viola et al. , 25-CV-1958 in the Eastern District of New York against current and former members of the Board of Directors and executives. The defendants deny that they breached any fiduciary duties related to the FS matter and intend on defending themselves vigorously. On November 30, 2020, the Company was named as a defendant in In re United States Oil Fund, LP Securities Litigation , No. 20-cv-4740. The consolidated amended complaint was filed in federal district court in New York on behalf of a putative class, and asserts claims against the Company and numerous other financial institutions under Section 11 of the Securities Act of 1933 in connection with trading in United States Oil Fund, LP, a crude oil ETF. The complaint also names the ETF, its sponsor, and related individuals as defendants. The complaint did not specify the amount of alleged damages. Defendants moved to dismiss the consolidated amended complaint on January 29, 2021; the motion is fully briefed and pending before the court. The Company believes that the claims are without merit and is defending itself vigorously. On March 7, 2022, the Company was named as a defendant in Iron Workers Local No. 55 Pension Fund v. Virtu Financial, Inc. , No. 2022-0211-PAF pending in the Court of Chancery of the State of Delaware. The complaint, filed by a purported stockholder, seeks to compel the inspection of certain Company books and records pursuant to Section 220 of the Delaware General Corporation Law. The complaint (the “220 Complaint”) alleged that the stockholder sought Company information to investigate (a) whether wrongdoing or mismanagement occurred in connection with distributions made to the partners of Virtu Financial pursuant to the Company’s Up-C corporate structure; (b) the independence and disinterestedness of the Company’s directors and/or officers and whether the directors breached their fiduciary duties; and (c) potential damages relating thereto. The Company made substantial productions of documents and other information in response to plaintiff's requests. In January 2025, the plaintiff voluntarily dismissed the 220 Complaint and filed a complaint in the Court of Chancery of the State of Delaware naming the Company and its directors, officers, and controlling stockholder as defendants, alleging breaches of fiduciary duties which purportedly have caused harm to holders of the Company’s Class A common stock. The Company believes the allegations are without merit and intends to defend against them vigorously. 34 On October 17, 2022, the Company’s subsidiary, along with several other parties, was named as a defendant in Mallinckrodt PLC, et al. (Reorganized Debtors); Opioid Master Disbursement Trust II v. Argos Capital Appreciation Master Fund LP et al No. 20-12522. The complaint alleges that Mallinckrodt PLC engaged in a share repurchase program from 2015 through 2018 pursuant to which it repurchased its own shares in various open market transactions, a period during which it was allegedly insolvent. The debtor plaintiff is seeking to unwind the transactions consummated under the program, alleging such transactions constituted fraudulent transfers by the debtor. The Company believes it has meritorious defenses against any unwinding of transactions, and the court granted its motion to dismiss in March 2025. The debtor plaintiff is appealing the dismissal as of April 2025. The Company will continue to defend itself vigorously. On December 1, 2022, the Company’s subsidiary, along with several other parties, was named as a defendant in N orthwest Biotherapeutics, Inc. v. Canaccord Genuity LLC, et al No. 1:22-cv-10185. The initial complaint alleged that defendants engaged in market manipulation in the plaintiff’s stock during a period from 2018 to 2022. A first amended complaint was filed on April 10, 2023, bringing substantially the same allegations as the initial complaint. The first amended complaint was dismissed with leave to amend on February 14, 2024. Plaintiff filed a second amended complaint on March 18, 2024. Neither the operative complaint nor prior iterations specify the amount of alleged damages. The Company believes that the claims are without merit and is defending itself vigorously. On October 7, 2024, the Company and its 50 % owned subsidiary, NLN Holdings, LLC, along with several other defendants, were named in a lawsuit brought by Skywave Networks, LLC in the United States District Court for the Northern District of Illinois, Skywave Networks, LLC v. DiSomma, et al., 1:24-cv-09650 (N.D.Ill.). The complaint alleges that defendants engaged in violations of federal law, 18 U.S.C. sec. 1962, in connection with the application for and utilization of various licenses issued by the Federal Communications Commission, purportedly harming plaintiffs’ attempts to offer certain network communications capacity on a commercial basis. The complaint does not specify any amount of alleged damages. On February 13, 2025, the plaintiffs filed a First Amended Complaint which does not specify any amount of alleged damages. The Company believes that the claims are without merit and intends to defend itself vigorously. Given the inherent difficulty of predicting the outcome of litigation and regulatory matters, particularly in regulatory examinations or investigations or other proceedings in which substantial or indeterminate judgments, settlements, disgorgements, restitution, penalties, injunctions, damages or fines are sought, or where such matters are in the early stages, the Company cannot estimate losses or ranges of losses for such matters where there is only a reasonable possibility that a loss may be incurred, and utilizes its judgment in accordance with applicable accounting standards in booking any associated estimated liability. It is not presently possible to determine the ultimate exposure to these matters and it is possible that the resolution of the outstanding matters will significantly exceed any estimated liabilities accrued by the Company. In addition, there are numerous factors that result in a greater degree of complexity in class-action lawsuits as compared to other types of litigation. There can be no assurance that these various legal proceedings will not significantly exceed any estimated liability accrued by the Company or have a material adverse effect on the Company’s results of operations in any future period, and a material judgment, fine or sanction could have a material adverse impact on the Company’s financial condition, results of operations and cash flows. However, it is the opinion of management, after consultation with legal counsel that, based on information currently available, the ultimate outcome of these matters will not have a material adverse impact on the business, financial condition or operating results of the Company, although they might be material to the operating results for any particular reporting period. The Company carries directors’ and officers’ liability insurance coverage and other insurance coverage for potential claims, including securities actions, against the Company and its respective directors and officers. 35 Other Legal and Regulatory Matters The Company owns subsidiaries including regulated entities that are subject to extensive oversight under federal, state and applicable international laws as well as self-regulatory organization (“SRO”) rules. Changes in market structure and the need to remain competitive require constant changes to the Company’s systems, order routing and order handling procedures. The Company makes these changes while continuously endeavoring to comply with many complex laws and rules. Compliance, surveillance and trading issues common in the securities industry are monitored by, reported to, and/or reviewed in the ordinary course of business by the Company’s regulators in the U.S. and abroad. As a major order flow execution destination, the Company is named from time to time in, or is asked to respond to a number of regulatory matters brought by U.S. regulators, foreign regulators, SROs, as well as actions brought by private plaintiffs, which arise from its business activities. There has recently been an increased focus by regulators on Anti-Money Laundering and sanctions compliance by broker-dealers and similar entities, as well as an enhanced interest on suspicious activity reporting and transactions involving microcap and low-priced securities. In addition, there has been increased regulatory, congressional and media scrutiny of U.S. equities market structure, the retail trading environment in the U.S., wholesale market making and the relationships between retail broker-dealers and market making firms including, but not limited to, payment for order flow arrangements, other remuneration arrangements such as profit-sharing relationships and exchange fee and rebate structures, alternative trading systems and off-exchange trading more generally, high frequency trading, short selling, market fragmentation, colocation, and access to market data feeds. In 2022 and 2023, the SEC under the prior administration proposed several rule changes focused on equity market structure reform, certain of which have been adopted while others remain pending. The SEC has recently (i) adopted rule amendments to minimum pricing increments under Rule 612 of Regulation NMS, access fee caps under Rule 610 of Regulation NMS, acceleration of the implementation of certain Market Data Infrastructure Rules, and an amendment to the odd-lot information definition adopted under the MDI rules (collectively referred to as the “tick size, access fees and infostructure rule proposals”) which have a compliance date commencing in November 2025, though are currently subject to ongoing legal challenge, (ii) adopted amendments to Rule 605 of Regulation NMS, which has a compliance date on or about December 15, 2025, (iii) approved a funding model submitted by several exchanges in relation to the Consolidated Audit Trail (CAT) which provides for fee collection commencing in November but is currently subject to legal challenge, and (iv) adopted rules to amend the definitions of “dealer” and “government securities dealer” within the Exchange Act, which would have broadened the scope of these registrant categories, though this rule was recently vacated by a United States district court. The remaining pending proposals include, but are not limited to, (i) Proposed Rule 615 of Regulation NMS, which proposes to dramatically change U.S. equities market structure, the routing, handling and potentially the amount, character and cost of retail order flow, (ii) Regulation Best Execution, which would impose best execution requirements on broker-dealers which would be distinct from, but overlapping with, FINRA’s existing best execution rule (Rule 5310), (iii) a series of amendments to the definition of Exchange and Alternative Trading Systems (ATS), which would expand the scope of exchange and ATS registration and compliance requirements, (iv) proposed amendments to expand and update Regulation Systems Compliance and Integrity (SCI), and (v) a proposal to restrict volume based tiered pricing by equity exchanges in certain cases. Further, on April 23, 2024, the Federal Trade Commission (FTC) announced a final rule banning most non-compete clauses in employer-employee contracts. The final rule was scheduled to become effective on September 4, 2024, but it was enjoined by a federal district court in September 2024 on the grounds that the rule exceeds the FTC's authority. The FTC is appealing the ruling and therefore its implementation has not yet been definitively resolved. These pending or potential rule changes, to the extent adopted, along with those that have recently been adopted, could adversely affect the Company’s business or the Company’s industry. As indicated above, from time to time, the Company is the subject of requests for information and documents from the SEC, the Financial Industry Regulatory Authority (“FINRA”), state attorneys general, and other regulators and governmental authorities. It is the Company’s practice to cooperate and comply with the requests for information and documents. Additional information regarding legal and regulatory risks is described within the “Risk Factors” section under the sub header of “Legal and Regulatory Risks” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. As indicated above, the Company is currently the subject of various regulatory reviews and investigations by state, federal and foreign regulators and SROs, including the SEC and FINRA. In some instances, these matters may result in a disciplinary action and/or a civil or administrative action. Representations and Warranties; Indemnification Arrangements In the normal course of its operations, the Company enters into contracts that contain a variety of representations and warranties in addition to indemnification obligations, including indemnification obligations in connection with the Acquisition of KCG and the ITG Acquisition. The Company’s maximum exposure under these arrangements is currently unknown, as any such exposure could relate to claims not yet brought or events which have not yet occurred. Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and general indemnifications. The Company has also provided general indemnifications to its managers, officers, directors, employees, and agents against expenses, legal fees, judgments, fines, settlements, and other amounts actually and reasonably incurred by such persons under certain circumstances as more fully 36 disclosed in its operating agreement. The overall maximum amount of the obligations (if any) cannot reasonably be estimated as it will depend on the facts and circumstances that give rise to any future claims. 17. Leases The Company primarily enters into lessee arrangements for corporate office space, data centers, and technology equipment. For more information on lease accounting, see Note 2 “Summary of Significant Accounting Policies” and Note 16 “Leases” to the Consolidated Financial Statements of the Company’s 2024 Annual Report on Form 10-K. Lease assets and liabilities are summarized as follows: (in thousands) Financial Statement Location March 31, 2025 December 31, 2024 Operating leases Operating lease right-of-use assets Operating lease right-of-use assets $ 163,230 $ 175,046 Operating lease liabilities Operating lease liabilities 216,314 229,825 Finance leases Property and equipment, at cost Property, equipment, and capitalized software, net 34,462 42,915 Accumulated depreciation Property, equipment, and capitalized software, net ( 14,459 ) ( 20,755 ) Finance lease liabilities Accounts payable, accrued expenses, and other liabilities 20,993 23,095 Weighted average remaining lease term and discount rate are as follows: March 31, 2025 December 31, 2024 Weighted average remaining lease term Operating leases 4.45 years 4.60 years Finance leases 3.10 years 3.53 years Weighted average discount rate Operating leases 6.33 % 6.36 % Finance leases 6.01 % 5.97 % The components of lease expense are as follows: Three Months Ended March 31, (in thousands) 2025 2024 Operating lease cost: Fixed $ 17,531 $ 18,431 Variable 1,456 1,508 Impairment of ROU Asset — — Total Operating lease cost $ 18,987 $ 19,939 Sublease income 3,470 4,692 Finance lease cost: Amortization of ROU Asset $ 2,157 $ 2,579 Interest on lease liabilities 334 412 Total Finance lease cost $ 2,491 $ 2,991 37 Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of March 31, 2025, are as follows: (in thousands) Operating Leases Finance Leases 2025 $ 56,391 $ 6,058 2026 72,164 7,499 2027 35,189 6,329 2028 28,791 2,757 2029 21,456 408 2030 and thereafter 34,464 — Total lease payments $ 248,455 $ 23,051 Less imputed interest ( 32,141 ) ( 2,058 ) Total lease liability $ 216,314 $ 20,993 18. Cash The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Condensed Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows. (in thousands) March 31, 2025 December 31, 2024 Cash and cash equivalents $ 723,650 $ 872,513 Cash restricted or segregated under regulations and other 47,364 41,478 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 771,014 $ 913,991 19. Capital Structure The Company has four classes of authorized common stock. The Class A Common Stock and the Class C Common Stock have one vote per share. The Class B Common Stock and the Class D Common Stock have 10 votes per share. Shares of the Company’s common stock generally vote together as a single class on all matters submitted to a vote of the Company’s stockholders. The Founder Member controls approximately 87.0 % of the combined voting power of our common stock as a result of its ownership of our Class A, Class C and Class D Common Stock. The Company holds approximately a 57.4 % interest in Virtu Financial at March 31, 2025. During the period prior to the Company’s IPO and certain reorganization transactions consummated in connection with the IPO, Class A-2 profits interests and Class B interests in Virtu Financial were issued to Employee Holdco (as defined below) on behalf of certain key employees and stakeholders. In connection with these reorganization transactions, all Class A-2 profits interests and Class B interests were reclassified into Virtu Financial Units. As of March 31, 2025 and December 31, 2024, there were 3,627,621 and 3,994,744 Virtu Financial Units outstanding held by Employee Holdco, respectively, and 367,123 and none of such Virtu Financial Units and corresponding Class C Common Stock were exchanged into Class A Common Stock, forfeited or repurchased during the three months ended March 31, 2025 and 2024, respectively. Amended and Restated 2015 Management Incentive Plan The Company’s Board of Directors and stockholders adopted the 2015 Management Incentive Plan, which became effective upon consummation of the IPO, and was subsequently amended and restated following receipt of approval from the Company’s stockholders on June 30, 2017, June 5, 2020 and June 2, 2022. The Amended and Restated 2015 Management Incentive Plan provides for the grant of stock options, restricted stock units, and other awards based on an aggregate of 26,000,000 shares of Class A Common Stock, subject to additional sublimits, including limits on the total option grant to any one participant in a single year and the total performance award to any one participant in a single year. 38 On November 13, 2020, the Company amended its form award agreement for the issuance of RSUs to provide for the continued vesting of outstanding RSU awards upon the occurrence of a qualified retirement (the “RSU Amendment”). A qualified retirement generally means a voluntary resignation by the participant (i) after five years of service, (ii) the participant attaining the age of 50 and (iii) the sum of the participant’s age and service at the time of termination equaling or exceeding 65. Continued vesting is subject to the participant entering into a 2 year non-compete. The RSU Amendment was authorized and approved by the Compensation Committee of the Company’s Board of Directors. As a result of the RSU Amendment, currently issued and outstanding RSUs held by the Company’s employees, including its executive officers, shall be deemed to be subject to the amended terms of the form award agreement, and any future RSU awards shall also be governed by such amended terms. Share Repurchase Program On November 6, 2020, the Company’s Board of Directors authorized a share repurchase program of up to $ 100.0 million in Class A common stock and Virtu Financial Units by December 31, 2021. On February 11, 2021, the Company’s Board of Directors authorized the expansion of the program by an additional $ 70 million in Class A Common Stock and Virtu Financial Units. On May 4, 2021, the Company’s Board of Directors authorized the expansion of the Company’s share repurchase program, increasing the total authorized amount by an additional $ 300 million in Class A Common Stock and Virtu Financial Units and extending the duration of the program through May 4, 2022. On November 3, 2021 the Company’s Board of Directors authorized another expansion of the program by an additional $ 750 million to $ 1,220 million and extending the duration of the program through November 3, 2023, which was subsequently extended through December 31, 2024. On April 24, 2024, the Company’s Board of Directors authorized the expansion of the program by an additional $ 500 million to $ 1,720 million and extended the duration through April 24, 2026. The share repurchase program authorizes the Company to repurchase shares from time to time in open market transactions, privately negotiated transactions or by other means. Repurchases are also permitted to be made under Rule 10b5-1 plans. The timing and amount of repurchase transactions are determined by the Company’s management based on its evaluation of market conditions, share price, cash sources, legal requirements and other factors. From the inception of the program through March 31, 2025, the Company repurchased approximately 51.6 million shares of Class A Common Stock and Virtu Financial Units for approximately $ 1,330.0 million. As of March 31, 2025, the Company has approximately $ 390.0 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program. Employee Exchanges During the three months ended March 31, 2025, pursuant to the exchange agreement by and among the Company, Virtu Financial and holders of Virtu Financial Units, certain current and former employees elected to exchange 350,858 units in Virtu Financial held directly or on their behalf by Virtu Employee Holdco LLC (“Employee Holdco”) on a one -for-one basis for shares of Class A Common Stock. There were no employee exchanges during the three months ended March 31, 2024. Accumulated Other Comprehensive Income The following table presents the changes in Other Comprehensive Income for the three months ended March 31, 2025 and 2024: 39 Three Months Ended March 31, 2025 (in thousands) AOCI Beginning Balance Amounts recorded in AOCI Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) (1) $ 4,943 $ 313 $ ( 1,524 ) $ 3,732 Foreign exchange translation adjustment ( 12,006 ) 2,720 — ( 9,286 ) Total $ ( 7,063 ) $ 3,033 $ ( 1,524 ) $ ( 5,554 ) (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Condensed Consolidated Statements of Comprehensive Income. As of March 31, 2025, the Company expects approximately $ 0.4 million to be reclassified from AOCI into earnings over the next 12 months. The timing of the reclassification is based on the interest payment schedule of the long-term borrowings. Three Months Ended March 31, 2024 (in thousands) AOCI Beginning Balance Amounts recorded in AOCI Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) (1) $ 23,416 $ 9,682 $ ( 8,788 ) $ 24,310 Foreign exchange translation adjustment ( 6,369 ) ( 2,037 ) — ( 8,406 ) Total $ 17,047 $ 7,645 $ ( 8,788 ) $ 15,904 (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income. 20. Share-based Compensation Pursuant to the Amended and Restated 2015 Management Incentive Plan as described in Note 19 “Capital Structure”, and in connection with the IPO, non-qualified stock options to purchase shares of Class A Common Stock were granted, each of which vests in equal annual installments over a period of 4 years from grant date and expires not later than 10 years from the date of grant. The following table summarizes activity related to stock options for the three months ended March 31, 2025 and 2024: Options Outstanding Options Exercisable Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Number of Options Weighted Average Exercise Price Per Share At December 31, 2023 1,511,776 $ 19.00 1.24 1,511,776 $ 19.00 Granted — — — — — Exercised — — — — 19.00 Forfeited or expired — — — — — At March 31, 2024 1,511,776 $ 19.00 1.00 1,511,776 $ 19.00 At December 31, 2024 813,750 $ 19.00 0.24 813,750 $ 19.00 Granted — — — — — Exercised ( 120,000 ) 19.00 — ( 120,000 ) 19.00 Forfeited or expired — — — — — At March 31, 2025 693,750 $ 19.00 0.00 693,750 $ 19.00 The expected life was determined based on an average of vesting and contractual period. The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. The expected stock price volatility was determined based on historical volatilities of comparable companies. The expected dividend yield was determined based on estimated future dividend payments divided by the IPO stock price. 40 Class A Common Stock, Restricted Stock Units and Restricted Stock Awards Pursuant to the Amended and Restated 2015 Management Incentive Plan as described in Note 19 “Capital Structure”, subsequent to the IPO, shares of immediately vested Class A Common Stock, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) were granted, with RSUs and RSAs vesting over a period of up to 4 years. The fair value of the Class A Common Stock and RSUs was determined based on a volume weighted average price and the expense is recognized on a straight-line basis over the vesting period. The fair value of the RSAs was determined based on the closing price as of the date of grant and the expense is recognized from the date that achievement of the performance target becomes probable through the remainder of the vesting period. Performance targets are based on the Company’s adjusted EBITDA for certain future periods. For the three months ended March 31, 2025 and 2024, respectively, there were 528,221 and 878,091 shares of immediately vested Class A Common Stock granted as part of year-end compensation. In addition, the Company accrued compensation expense of $ 7.2 million and $ 4.9 million for the three months ended March 31, 2025 and 2024, respectively, related to immediately vested Class A Common Stock expected to be awarded as part of year-end incentive compensation, which was included in Employee compensation and payroll taxes on the Condensed Consolidated Statements of Comprehensive Income and Accounts payable, accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition. The following table summarizes activity related to RSUs and RSAs for the three months ended March 31, 2025 and 2024: Number of RSUs and RSAs Weighted Average Fair Value At December 31, 2023 4,903,174 $ 23.90 Granted (1) 2,492,452 16.98 Forfeited ( 68,049 ) 23.76 Vested ( 2,596,226 ) 19.79 At March 31, 2024 4,731,351 $ 22.51 At December 31, 2024 5,564,532 $ 21.77 Granted 2,745,479 39.55 Forfeited ( 84,404 ) 24.75 Vested ( 2,650,096 ) 24.96 At March 31, 2025 5,575,511 $ 28.97 (1) Excluded in the number of RSUs and RSAs are 600,000 and 487,500 participating RSAs for three months ended March 31, 2025 and 2024, where the grant date has not been achieved because the performance conditions have not been met. The Company recognized $ 15.4 million and $ 10.2 million for the three months ended March 31, 2025 and 2024, respectively, of compensation expense in relation to RSUs. As of March 31, 2025 and December 31, 2024, total unrecognized share-based compensation expense related to unvested RSUs was $ 118.0 million and $ 53.5 million, respectively, and this amount is to be recognized over a weighted average period of 1.6 years and 0.9 years, respectively. Awards in which the specific performance conditions have not been met are not included in unrecognized share-based compensation expense. On November 13, 2020, the Company adopted the Virtu Financial, Inc. Deferred Compensation Plan (the “DCP”). The DCP permits eligible executive officers and other employees to defer cash or equity-based compensation beginning in the calendar year ending December 31, 2021, subject to certain limitations and restrictions. Deferrals of cash compensation may also be directed to notional investments in certain of the employee investment opportunities. 21. Regulatory Requirement U.S. Subsidiary The Company’s U.S. broker-dealer subsidiaries VAL and RFQ-hub Americas LLC (“RAL”, which is currently held for sale, as described in Note 3 “Business Held for Sale”), are subject to the SEC Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital as detailed in the table below. RAL became a U.S. broker-dealer in June 2023. Pursuant to New York Stock Exchange (“NYSE”) rules, VAL was also required to maintain $ 1.0 million of capital in connection with the operation of its designated market maker (“DMM”) business as of March 31, 2025. The required amount is determined under the exchange rules as the greater of (i) $ 1.0 million or (ii) $ 75,000 for every 0.1 % of NYSE transaction dollar volume in each of the securities for which the Company is registered as the DMM. 41 The regulatory capital and regulatory capital requirements of the Company’s U.S. subsidiaries as of March 31, 2025 was as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Virtu Americas LLC $ 459,273 $ 1,456 $ 457,817 RFQ-hub Americas LLC 542 11 531 As of March 31, 2025, VAL had $ 40.7 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $ 6.4 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers. The balances are included within Cash restricted or segregated under regulations and other on the Condensed Consolidated Statements of Financial Condition. The regulatory capital and regulatory capital requirements of the Company’s U.S. subsidiaries as of December 31, 2024 was as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Virtu Americas LLC $ 455,678 $ 1,532 $ 454,146 RFQ-hub Americas LLC 602 9 593 As of December 31, 2024, VAL had $ 34.9 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $ 6.4 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers. Foreign Subsidiaries The Company’s foreign subsidiaries are subject to regulatory capital requirements set by local regulatory bodies, including the Canadian Investment Regulatory Organization (“CIRO”), the Central Bank of Ireland (“CBI”), the Financial Conduct Authority (“FCA”) in the United Kingdom, the Australian Securities and Investments Commission (“ASIC”), the Securities and Futures Commission in Hong Kong (“SFC”), and the Monetary Authority of Singapore (“MAS”). The regulatory net capital balances and regulatory capital requirements applicable to the Company’s foreign subsidiaries as of March 31, 2025 were as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Canada Virtu Canada Corp (1) $ 11,841 $ 174 $ 11,667 Ireland Virtu Europe Trading Limited (1) 59,506 27,332 32,174 Virtu Financial Ireland Limited (1) 79,868 31,092 48,776 United Kingdom Virtu ITG UK Limited (1) 2,109 969 1,140 Asia Pacific Virtu ITG Australia Limited 27,726 12,715 15,011 Virtu ITG Hong Kong Limited 4,849 386 4,463 Virtu ITG Singapore Pte Limited 1,212 167 1,045 Virtu Financial Singapore Pte. Ltd. 204,640 117,407 87,233 (1) Preliminary As of March 31, 2025, Virtu Europe Trading Limited had $ 0.1 million of segregated funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd. had $ 30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers. 42 The regulatory net capital balances and regulatory capital requirements applicable to the Company’s foreign subsidiaries as of December 31, 2024 were as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Canada Virtu Canada Corp $ 12,327 $ 174 $ 12,153 Virtu Financial Canada ULC (1) — — — Ireland Virtu Europe Trading Limited 57,834 26,359 31,475 Virtu Financial Ireland Limited 76,457 29,764 46,693 United Kingdom Virtu ITG UK Limited 2,043 939 1,104 Asia Pacific Virtu ITG Australia Limited 24,928 9,550 15,378 Virtu ITG Hong Kong Limited 5,392 426 4,966 Virtu ITG Singapore Pte Limited 1,120 166 954 Virtu Financial Singapore Pte. Ltd. 219,817 136,891 82,926 (1) Virtu Financial Canada ULC has resigned from membership with the Canadian Investment Regulatory Organization (“CIRO”) effective January 22, 2025, and its regulatory capital requirement as of December 31, 2024 was waived by CIRO. As of December 31, 2024, Virtu Europe Trading Limited had $ 37 thousand of segregated funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd had $ 30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers. 22. 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”). 43 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 March 31, 2025 and 2024 are summarized in the following table: (in thousands) Market Making Execution Services Corporate (1) Consolidated Total 2025 Total revenues $ 691,172 $ 141,008 $ 5,689 $ 837,869 Operating expenses: Brokerage, exchange, clearance fees and payments for order flow, net 194,303 27,572 — 221,875 Interest and dividends expense 130,051 1,277 — 131,328 Other segment items (2) 177,638 82,234 1,058 260,930 Total operating expenses 501,992 111,083 1,058 614,133 Income (loss) before income taxes and noncontrolling interest $ 189,180 $ 29,925 $ 4,631 $ 223,736 2024 Total revenues $ 521,008 $ 117,788 $ 4,043 $ 642,839 Operating expenses: Brokerage, exchange, clearance fees and payments for order flow, net 115,866 23,933 — 139,799 Interest and dividends expense 125,158 870 — 126,028 Other segment items (2) 153,031 83,742 419 237,192 Total operating expenses 394,055 108,545 419 503,019 Income (loss) before income taxes and noncontrolling interest $ 126,953 $ 9,243 $ 3,624 $ 139,820 (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 months ended March 31, 2025 and 2024 : Three Months Ended March 31, (in thousands) 2025 2024 Revenues: United States $ 709,109 $ 522,069 Ireland 84,695 63,018 Others 44,065 57,752 Total revenues $ 837,869 $ 642,839 23. Related Party Transactions 44 The Company incurs expenses and maintains balances with its affiliates in the ordinary course of business. As of March 31, 2025 and December 31, 2024 the Company had net payables to its affiliates of $ 1.7 million and $ 0.1 million, respectively. The Company has held a minority interest in JNX since 2016 (see Note 10 “Financial Assets and Liabilities”). The Company pays exchange fees to JNX for the trading activities conducted on its proprietary trading system. The Company paid $ 2.5 million and $ 2.2 million for the three months ended March 31, 2025 and 2024, respectively, to JNX for these trading activities. The Company pays monthly use fees to a JV in which it holds an interest (see Note 13 “Variable Interest Entities”). These monthly fees are for the use of communication networks operated by the JV and are recorded within Communications and data processing on the Condensed Consolidated Statements of Comprehensive Income. The Company previously held a similar arrangement with another telecommunication JV and paid a monthly use fee, and the Company disposed of its interests in this JV and ended the monthly fee arrangement as of September 1, 2024. The Company made payments to these JVs of $ 7.2 million and $ 7.4 million for the three months ended March 31, 2025 and 2024, respectively. The Company has an interest in Members Exchange, a member-owned equities exchange. The Company pays regulatory and transaction fees and receives rebates from trading activities. The Company made payments of $ 2.7 million and $ 1.5 million for the three months ended March 31, 2025 and 2024, respectively. 24. Subsequent Events The Company has evaluated subsequent events for adjustment to or disclosure in its Condensed Consolidated Financial Statements through the date of this report, and has not identified any recordable or disclosable events, not otherwise reported in these Condensed Consolidated Financial Statements or the notes thereto, except for the following: On April 22, 2025, the Company’s Board of Directors authorized the addition of 7,500,000 shares of Class A Common Stock, along with certain other limited changes to the Amended and Restated 2015 Management Incentive Plan, subject to stockholder approval at the Company’s upcoming annual meeting on June 2, 2025. On April 23, 2025, the Company’s Board of Directors declared a dividend of $ 0.24 per share of Class A Common Stock and Class B Common Stock and per participating Restricted Stock Unit and Restricted Stock Award that will be paid on June 16, 2025 to holders of record as of May 30, 2025. 45