Virtu Financial Posts 22.6% Drop in 2022 Net Trading Income

Leading market maker Virtu Financial has reported results for the fourth quarter and full year ended December 31, 2022, revealing that its net trading income decreased 22.6% to $1,628.9 million for this year, compared to $2,105.2 million for 2021.

Weak quarterly results

For the fourth quarter, the market maker's total revenues decreased 29.5% to $497.8 million, compared to $705.6 million for the same period in 2021. Net trading income decreased to $313.3 million, compared to $513.4 million for Q4 2021. Net income totaled $39.6 million, compared to net income of $186.0 million in the prior year quarter.

Adjusted Net Trading Income decreased 43.6% to $274.1 million, compared to $485.6 million for the same period in 2021. Adjusted EBITDA decreased 61.8% to $125.4 million, compared to $328.4 million for the fourth quarter of 2021.

Normalized Adjusted Net Income, removing one-time and non-cash items, decreased 70.9% to $64.1 million, compared to $220.6 million for the same period in 2021.

All full-year metrics saw a decline

For the full year, Virtu Financial's total revenues decreased 15.9% to $2,364.8 million, compared to $2,811.5 million for 2021. Net trading income decreased 22.6% to $1,628.9 million, compared to $2,105.2 million for 2021. Net income totaled $468.3 million, compared to net income of $827.2 million for 2021.

Adjusted Net Trading Income decreased 23.2% to $1,467.6 million, compared to $1,909.9 million for 2021. Adjusted EBITDA decreased 34.0% to $859.1 million, compared to $1,301.2 million for 2021. Normalized Adjusted Net Income decreased 39.3% to $532.5 million, compared to $876.6 million for 2021.