Virtu is a member of the Zacks Focus List and is one of the largest market makers in the United States, providing liquidity in equities, ETFs, FX, futures, fixed income, and commodities markets, operating in markets spanning 50 countries. The company especially benefits from periods of heightened volatility, as trading volume determines its core business model of market making. However, the company has diversified its offerings over time, providing trading execution services through its acquisition of ITG, which provides a more stable source of revenue apart from its volume-dependent market making business.

Market making and execution technologies are an economic moat, as very few firms have the size and network effects to be able to compete. The market is often referred to as a duopoly, with Citadel and Virtu being the top two players with other competitors trailing far behind. This size, combined with technological advantages these companies have invested in over decades provides significant barriers to entry.

The company is experiencing strong earnings momentum, posting exceptional revenue and earnings growth in 2024 of +25% and +52%, respectively, as the integration of the ITG acquisition and its expansion into other markets such as options and cryptocurrencies are providing growth opportunities in addition to the core market making business. As such, analysts continue revising full year 2025 and 2026 earnings forecasts higher. We remain bullish on VIRT.