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MarketAxess Reports Third Quarter 2025 Financial Results

businesswire.com

NEW YORK--( BUSINESS WIRE)--MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the third quarter ended September 30, 2025.

3Q25 select financial and operational highlights*

*All comparisons versus 3Q24

Chris Concannon, CEO of MarketAxess, commented:

“A return to lower levels of volatility and tighter credit spreads in the third quarter, combined with historic levels of new issuance in September, dampened our market share and revenue growth in U.S. credit. Outside of U.S. credit, our revenue growth profile is strong, and we delivered 10% growth including the addition of RFQ-hub.

To address our challenges in U.S. credit, we are focused on growing our targeted block trading solution in the client-initiated channel. Year-to-date, block trading ADV in U.S. credit is already 19% above full-year 2024 levels. We are also continuing to enhance our portfolio trading solution for clients, and year-to-date, our U.S. credit portfolio trading ADV is up 43% versus full-year 2024 and market share has increased approximately 210 basis points. Last, we are focused on growing our new Mid-X solution in the dealer-initiated channel, which we launched in September for U.S. credit. Year-to-date U.S. credit dealer-initiated ADV is up 29% versus full-year 2024.

We have made tangible progress across our new initiatives which we believe will help drive market share and revenue growth in U.S. credit in the quarters ahead."

Table 1: 3Q25 select financial results

Quarter

% Change

YTD

% Change

$ in millions, except per share data (unaudited)

3Q 2025

2Q 2025

3Q 2024

QoQ

YoY

YTD 2025

YTD 2024

YoY

Selected GAAP-basis financial results

Revenues

$

209

$

219

$

207

(5

)

%

1

%

$

637

$

615

4

%

Expenses

123

128

120

(3

)

3

371

354

5

Net Income

68

71

71

(4

)

(4

)

155

209

(26

)

Diluted EPS

1.84

1.91

1.90

(4

)

(3

)

4.14

5.55

(25

)

Net Income Margin

32.7

%

32.4

%

34.6

%

+30

bps

(190

)

bps

24.3

%

34.0

%

NM

Selected GAAP-basis financial results ex-notable items (non-GAAP) 1

Revenues

209

219

207

(5

)

1

637

615

4

Expenses

123

124

120

3

367

354

4

Net Income

68

74

71

(8

)

(4

)

213

209

2

Diluted EPS

1.84

2.00

1.90

(8

)

(3

)

5.70

5.55

3

Other Non-GAAP financial measures

EBITDA 2

108

111

105

(3

)

2

326

313

4

EBITDA Margin 2

51.5

%

50.5

%

50.8

%

+100

bps

+70

bps

51.2

%

51.0

%

+20

bps

NM - not meaningful

3Q25 overview of results

Table 1A: Notable items 1

Quarter

YTD

3Q 2025

2Q 2025

3Q 2024

YTD 2025

YTD 2024

$ in millions, except per share data (unaudited)

Repositioning charges

$

$

4.0

$

$

4.0

$

Acquisition-related charge/(credit)

0.6

0.6

Notable items (pre-tax)

4.6

4.6

Income tax impact from notable items

(1.2

)

(1.2

)

Reserve for uncertain tax positions related to prior periods

54.9

Total notable items

$

3.4

$

$

58.3

$

EPS impact

$

0.09

$

$

1.56

$

Revenue

Commission revenue

Table 1B: 3Q25 variable transaction fees per million (FPM)

Quarter

% Change

YTD

% Change

3Q 2025

2Q 2025

3Q 2024

QoQ

YoY

YTD 2025

YTD 2024

YoY

AVG. VARIABLE TRANS. FEE PER MILLION (FPM)

Total Credit

$

140

$

138

$

149

1

%

(6

)

%

$

139

$

150

(7

)

%

Total Rates

4.21

4.03

4.15

4

1

4.14

4.42

(6

)

Credit

Rates

Other

Services revenue

Information services

Post-trade services

Technology services

Expenses

Non-operating

Capital

Other

1

See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 6 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

2

EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 7 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

Non-GAAP financial measures and other items

To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) selected GAAP-basis financial results, each excluding notable items, to their most directly comparable GAAP measure; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure.

Webcast and conference call information

Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer, will host a conference call to discuss the Company’s financial results and outlook on Friday, November 7, 2025 at 11:00 a.m. ET. To access the conference call, please dial +1-646-307-1963 (U.S./International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement.

General Notes Regarding the Data Presented

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the divergence of U.K. and European Union legal and regulatory requirements following the U.K.’s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess.

Table 2: Consolidated Statements of Operations

2025

2024

% Change

2025

2024

% Change

$

180,171

$

180,392

%

$

553,284

$

536,944

3

%

13,785

12,960

6

39,776

37,385

6

11,293

10,382

9

33,457

31,512

6

3,572

2,981

20

10,342

8,852

17

208,821

206,715

1

636,859

614,693

4

59,982

58,431

3

187,135

176,485

6

19,662

18,728

5

57,093

55,284

3

19,961

18,553

8

57,430

53,375

8

7,382

6,989

6

20,982

21,053

-

3,859

3,835

1

11,234

10,974

2

2,349

2,898

(19

)

7,362

7,741

(5

)

3,948

4,387

(10

)

12,580

13,420

(6

)

6,099

5,839

4

17,218

15,467

11

123,242

119,660

3

371,034

353,799

5

85,579

87,055

(2

)

265,825

260,894

2

5,850

6,953

(16

)

18,949

19,327

(2

)

(171

)

(346

)

(51

)

(523

)

(1,283

)

(59

)

340

(100

)

457

1,064

(57

)

2,381

(1,105

)

NM

2,501

(4,051

)

NM

8,060

5,842

38

21,384

15,057

42

93,639

92,897

1

287,209

275,951

4

25,366

21,408

18

132,691

66,909

98

$

68,273

$

71,489

(4

)

$

154,518

$

209,042

(26

)

Less: income attributable to noncontrolling interest

(97

)

NM

(128

)

NM

$

68,176

$

71,489

(5

)

$

154,390

$

209,042

(26

)

$

1.84

$

1.90

$

4.15

$

5.55

$

1.84

$

1.90

$

4.14

$

5.55

$

0.76

$

0.74

$

2.28

$

2.22

37,023

37,527

37,207

37,641

37,109

37,608

37,288

37,696

Table 3: Commission Revenue Detail

2025

2024

% Change

2025

2024

% Change

$

130,811

$

134,863

(3

)

%

$

409,628

$

404,012

1

%

6,549

7,018

(7

)

21,503

17,903

20

8,589

4,856

77

20,882

14,781

41

145,949

146,737

(1

)

452,013

436,696

4

34,137

33,584

2

101,018

100,049

1

85

71

20

253

199

27

34,222

33,655

2

101,271

100,248

1

$

180,171

$

180,392

$

553,284

$

536,944

3

$

140

$

149

(6

)

%

$

139

$

150

(7

)

%

4.21

4.15

1

4.14

4.42

(6

)

Table 4: Trading Volume Detail*

2025

2024

% Change

$

419,703

$

6,558

$

449,708

$

7,027

(7

)

%

(7

)

%

86,228

1,347

81,761

1,278

5

5

243,387

3,803

213,341

3,333

14

14

142,772

2,196

122,914

1,891

16

16

40,336

631

37,566

587

7

7

932,426

14,535

905,290

14,116

3

3

1,480,317

23,130

1,619,337

25,302

(9

)

(9

)

75,714

1,166

71,261

1,098

6

6

1,556,031

24,296

1,690,598

26,400

(8

)

(8

)

$

2,488,457

$

38,831

$

2,595,888

$

40,516

(4

)

(4

)

64

64

65

65

2025

2024

% Change

$

1,362,101

$

7,284

$

1,311,146

$

6,974

4

%

4

%

281,122

1,503

251,388

1,337

12

12

732,763

3,919

644,973

3,431

14

14

451,562

2,402

380,029

2,011

19

19

116,783

625

97,271

517

20

21

2,944,331

15,733

2,684,807

14,270

10

10

4,969,290

26,574

3,902,050

20,756

27

28

229,164

1,218

151,393

801

51

52

5,198,454

27,792

4,053,443

21,557

28

29

$

8,142,785

$

43,525

$

6,738,250

$

35,827

21

21

187

188

188

189

Table 5: Consolidated Condensed Balance Sheet Data

As of

In thousands (unaudited)

September 30, 2025

December 31, 2024

Assets

Cash and cash equivalents

$

473,299

$

544,478

Cash segregated under federal regulations

48,351

47,107

Investments, at fair value

168,472

165,260

Accounts receivable, net

110,519

91,845

Receivables from broker-dealers, clearing organizations and customers

606,667

357,728

Goodwill

283,667

236,706

Intangible assets, net of accumulated amortization

115,880

98,078

Furniture, equipment, leasehold improvements and capitalized software, net

111,622

107,298

Operating lease right-of-use assets

53,412

58,132

Prepaid expenses and other assets

42,019

82,584

Total assets

$

2,013,908

$

1,789,216

Liabilities and stockholders' equity

Liabilities

Accrued employee compensation

$

60,374

$

68,054

Payables to broker-dealers, clearing organizations and customers

365,828

218,845

Income and other tax liabilities

98,744

3,683

Accounts payable, accrued expenses and other liabilities

31,907

37,320

Operating lease liabilities

66,872

72,654

Total liabilities

623,725

400,556

Redeemable noncontrolling interest

11,733

Stockholders' equity

Common stock

123

123

Additional paid-in capital

358,607

350,701

Treasury stock

(451,403

)

(333,369

)

Retained earnings

1,474,752

1,405,904

Accumulated other comprehensive income/(loss)

(3,629

)

(34,699

)

Total stockholders' equity

1,378,450

1,388,660

Total liabilities, redeemable noncontrolling interest and stockholders' equity

$

2,013,908

$

1,789,216

Table 6: Reconciliation of Notable Items

$ in thousands, except per share data (unaudited)

3Q 2025

2Q 2025

3Q 2024

YTD 2025

YTD 2024

Total Expenses, GAAP-basis

$

123,242

$

127,598

$

119,660

$

371,034

$

353,799

Exclude: Notable items

Repositioning charges 1

(3,970

)

(3,970

)

Total Expenses, excluding notable items

$

123,242

$

123,628

$

119,660

$

367,064

$

353,799

Other income (expense), GAAP-basis

$

8,060

$

5,552

$

5,842

$

21,384

$

15,057

Exclude: Notable items

Acquisition-related charge/(credit) 2

557

557

Other income (expense), excluding notable items

$

8,060

$

6,109

$

5,842

$

21,941

$

15,057

Net income, GAAP-basis

$

68,273

$

71,180

$

71,489

$

154,518

$

209,042

Exclude: Notable items

Repositioning charges 1

3,970

3,970

Acquisition-related charge/(credit) 2

557

557

Income tax impact from notable items

(1,218

)

(1,218

)

Reserve for uncertain tax positions related to prior periods

54,939

Net income, excluding notable items

$

68,273

$

74,489

$

71,489

$

212,766

$

209,042

Diluted EPS, GAAP-basis

$

1.84

$

1.91

$

1.90

$

4.14

$

5.55

Notable items as reconciled above

0.09

1.56

Diluted EPS, excluding notable items

$

1.84

$

2.00

$

1.90

$

5.70

$

5.55

Effective tax rate, GAAP-basis

27.1

%

26.9

%

23.0

%

46.2

%

24.2

%

Notable items as reconciled above

(19.1

)

Effective tax rate, excluding notable items

27.1

%

26.9

%

23.0

%

27.1

%

24.2

%

1 Repositioning charges consist of severance included in employee compensation and benefits

2 Consists of loss on remeasurement of previous equity interest in RFQ-hub to fair value

Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin

In thousands (unaudited)

3Q 2025

2Q 2025

3Q 2024

YTD 2025

YTD 2024

Net income

$

68,273

$

71,180

$

71,489

$

154,518

$

209,042

Add back:

Interest income

(5,850

)

(5,930

)

(6,953

)

(18,949

)

(19,327

)

Interest expense

171

139

346

523

1,283

Provision for income taxes

25,366

26,236

21,408

132,691

66,909

Depreciation and amortization

19,662

19,195

18,728

57,093

55,284

EBITDA

$

107,622

$

110,820

$

105,018

$

325,876

$

313,191

Net income margin 1

32.7

%

32.4

%

34.6

%

24.3

%

34.0

%

Add back:

Interest income

(2.8

)

(2.7

)

(3.4

)

(3.0

)

(3.1

)

Interest expense

0.1

0.1

0.2

0.1

0.2

Provision for income taxes

12.1

12.0

10.3

20.8

10.9

Depreciation and amortization

9.4

8.7

9.1

9.0

9.0

EBITDA margin 2

51.5

%

50.5

%

50.8

%

51.2

%

51.0

%

1 Net income margin is derived by dividing net income by total revenues for the applicable period.

2 EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period.

Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

In thousands (unaudited)

3Q 2025

2Q 2025

3Q 2024

YTD 2025

YTD 2024

Net cash (used in)/provided by operating activities

$

90,164

$

103,714

$

95,089

$

223,507

$

208,989

Exclude: Net change in trading investments

264

(66

)

784

198

629

Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers

34,338

22,053

2,578

90,790

50,715

Less: Purchases of furniture, equipment and leasehold improvements

(1,496

)

(1,206

)

(835

)

(4,632

)

(9,727

)

Less: Capitalization of software development costs

(11,494

)

(11,510

)

(11,331

)

(38,035

)

(35,790

)

Free cash flow

$

111,776

$

112,985

$

86,285

$

271,828

$

214,816