MarketAxess Reports Fourth Quarter and Full Year 2025 Financial Results
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 fourth quarter and full year ended December 31, 2025.
4Q25 select financial and operational highlights*
Full Year 2025 select financial and operational highlights**
*All comparisons versus 4Q24
**All comparisons versus full year 2024
Chris Concannon, CEO of MarketAxess, commented:
“In 2025, we made significant strides in enhancing the MarketAxess advantage by expanding our global network, deepening our differentiated liquidity. We also accelerated our use of AI in enhancing the proprietary data and analytics that underpin our protocols and workflow tools for clients, helping them to be more efficient and gain deeper insights into their trading activity.
We delivered record volumes in U.S. credit and record revenue outside of U.S. credit of $406 million, a 10% increase, reflecting the strong returns generated from our investments in these areas. We also made strong progress across our three U.S. credit strategic channels: block trading ADV increased 24%, total portfolio trading ADV increased 48%, and dealer‑initiated ADV increased 33%. Additionally, the Mid‑X solution launched in the second half of 2025 continues to gain momentum, delivering over $3 billion in trading volume in December 2025.
The client initiatives that we expect to deliver in 2026 and beyond include enhancements to our X-Pro platform and our automation suite, as well as the launch of new solutions that allow dealers to send axes directly to investor clients. These enhancements are progressing well and we expect them to drive market share and revenue growth consistent with our medium-term financial targets."
Table 1: 4Q25 and full year 2025 select financial results
Quarter
% Change
Full Year
% Change
$ in millions, except per share data (unaudited)
4Q 2025
3Q 2025
4Q 2024
QoQ
YoY
FY 2025
FY 2024
YoY
Selected GAAP-basis financial results
Revenues
$
209
$
209
$
202
—
%
3
%
$
846
$
817
4
%
Expenses
133
123
122
8
9
504
476
6
Net Income
92
68
65
35
42
247
274
(10
)
Diluted EPS
2.51
1.84
1.73
36
45
6.64
7.28
(9
)
Net Income Margin
44.1
%
32.7
%
32.2
%
NM
NM
29.2
%
33.6
%
NM
Selected GAAP-basis financial results ex-notable items (non-GAAP) 1
Revenues
209
209
202
—
3
846
817
4
Expenses
132
123
122
7
8
499
476
5
Net Income
62
68
65
(9
)
(5
)
275
274
—
Diluted EPS
1.68
1.84
1.73
(9
)
(3
)
7.39
7.28
2
Other Non-GAAP financial measures
EBITDA 2
95
108
97
(12
)
(2
)
421
410
3
EBITDA Margin 2
45.3
%
51.5
%
47.8
%
(620
)
bps
(250
)
bps
49.7
%
50.2
%
(50)
bps
NM - not meaningful
4Q25 overview of results
Table 1A: Notable items 1
Quarter
Full Year
4Q 2025
3Q 2025
4Q 2024
FY 2025
FY 2024
$ in millions, except per share data (unaudited)
Repositioning charges
$
1.1
$
—
$
—
$
5.1
$
—
Acquisition-related charge/(credit)
—
—
—
0.6
—
Notable items (pre-tax)
1.1
—
—
5.7
—
Income tax impact from notable items
(0.3
)
—
—
(1.5
)
—
Reserve for uncertain tax positions related to prior periods
(31.3
)
—
—
23.6
—
Total notable items
$
(30.5
)
$
—
$
—
$
27.8
$
—
EPS impact
$
(0.83
)
$
—
$
—
$
0.75
$
—
Notable items 1
Revenue
Commission revenue
Table 1B: 4Q25 variable transaction fees per million (FPM)
Quarter
% Change
Full Year
% Change
4Q 2025
3Q 2025
4Q 2024
QoQ
YoY
FY 2025
FY 2024
YoY
AVG. VARIABLE TRANS. FEE PER MILLION (FPM)
Total Credit
$
138
$
140
$
150
(1
)
%
(8
)
%
$
139
$
150
(7
)
%
Total Rates
4.79
4.21
4.31
14
11
4.28
4.39
(3
)
Credit
Rates
Other
Services revenue
Information services
Post-trade services
Technology services
Expenses
Non-operating
Capital
Other
Full Year 2026 Guidance 4
For the full year 2026, the Company is providing the following guidance:
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.
3
Services revenue is defined as combined information, post-trade and technology services revenue.
4
The Company's guidance for full year 2026 is based on foreign exchange rates as of December 31, 2025, and assumes a constant business portfolio.
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. The Company does not reconcile its forward-looking non-GAAP financial measures, including the 2026 expense guidance, to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides forward-looking non-GAAP financial measures that it believes will be achieved, however, it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.
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, February 6, 2026 at 10:00 a.m. ET. To access the conference call, please dial +1-800-715-9871 (U.S.) or +1-646-307-1963 (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, including the full year 2026 guidance included in this press release. 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
Three Months Ended
Year Ended
December 31,
December 31,
In thousands, except per share data (unaudited)
2025
2024
% Change
2025
2024
% Change
Revenues
Commissions
$
181,339
$
174,766
4
%
$
734,623
$
711,710
3
%
Information services
13,454
13,155
2
53,230
50,540
5
Post-trade services
11,034
10,975
1
44,491
42,487
5
Technology services
3,582
3,508
2
13,924
12,360
13
Total revenues
209,409
202,404
3
846,268
817,097
4
Expenses
Employee compensation and benefits
61,402
59,395
3
248,537
235,880
5
Depreciation and amortization
19,606
18,540
6
76,699
73,824
4
Technology and communications
20,864
18,791
11
78,294
72,166
8
Professional and consulting fees
10,505
6,329
66
31,487
27,382
15
Occupancy
3,804
3,716
2
15,038
14,690
2
Marketing and advertising
3,842
3,972
(3
)
11,204
11,713
(4
)
Clearing costs
4,003
4,443
(10
)
16,583
17,863
(7
)
General and administrative
9,370
7,242
29
26,588
22,709
17
Total expenses
133,396
122,428
9
504,430
476,227
6
Operating income
76,013
79,976
(5
)
341,838
340,870
—
Other income (expense)
Interest income
5,448
6,719
(19
)
24,397
26,046
(6
)
Interest expense
(964
)
(318
)
203
(1,487
)
(1,601
)
(7
)
Equity in earnings of unconsolidated affiliate
—
331
(100
)
457
1,395
(67
)
Other, net
(711
)
(2,113
)
(66
)
1,790
(6,164
)
NM
Total other income (expense)
3,773
4,619
(18
)
25,157
19,676
28
Income before income taxes
79,786
84,595
(6
)
366,995
360,546
2
Provision for income taxes
(12,608
)
19,456
(165
)
120,083
86,365
39
Net income
$
92,394
$
65,139
42
$
246,912
$
274,181
(10
)
Less: income attributable to noncontrolling interest
(157
)
—
NM
(285
)
—
NM
Net income available for common stockholders
$
92,237
$
65,139
42
$
246,627
$
274,181
(10
)
Per Share Data:
Net income per common share
Basic
$
2.52
$
1.74
$
6.66
$
7.29
Diluted
$
2.51
$
1.73
$
6.64
$
7.28
Cash dividends declared per common share
$
0.76
$
0.74
$
3.04
$
2.96
Weighted-average common shares:
Basic
36,601
37,479
37,056
37,600
Diluted
36,683
37,601
37,137
37,672
NM - not meaningful
Table 3: Commission Revenue Detail
In thousands, except fee per million data (unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
% Change
2025
2024
% Change
Variable transaction fees
Credit
$
132,358
$
129,351
2
%
$
541,986
$
533,363
2
%
Rates
6,695
7,262
(8
)
28,198
25,165
12
Other
9,382
5,235
79
30,264
20,016
51
Total variable transaction fees
148,435
141,848
5
600,448
578,544
4
Fixed distribution fees
Credit
32,802
32,849
—
133,820
132,898
1
Rates
102
69
48
355
268
32
Total fixed distribution fees
32,904
32,918
—
134,175
133,166
1
Total commission revenue
$
181,339
$
174,766
4
$
734,623
$
711,710
3
Average variable transaction fee per million
Credit
$
138
$
150
(8
)
%
$
139
$
150
(7
)
%
Rates
4.79
4.31
11
4.28
4.39
(3
)
Table 4: Trading Volume Detail*
Three Months Ended December 31,
In millions (unaudited)
2025
2024
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
424,563
$
6,848
$
400,129
$
6,454
6
%
6
%
High-yield
95,650
1,543
83,373
1,345
15
15
Emerging markets
247,140
3,986
214,439
3,459
15
15
Eurobonds
154,061
2,407
128,064
2,001
20
20
Other credit
37,086
597
38,698
624
(4
)
(4
)
Total credit trading
958,500
15,381
864,703
13,883
11
11
Rates
U.S. government bonds
1,352,808
21,819
1,608,995
25,952
(16
)
(16
)
Agency and other government bonds
43,787
686
76,221
1,195
(43
)
(43
)
Total rates trading
1,396,595
22,505
1,685,216
27,147
(17
)
(17
)
Total trading
$
2,355,095
$
37,886
$
2,549,919
$
41,030
(8
)
(8
)
Number of U.S. Trading Days 1
62
62
Number of U.K. Trading Days 2
64
64
Year Ended December 31,
In millions (unaudited)
2025
2024
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,786,664
$
7,175
$
1,711,275
$
6,845
4
%
5
%
High-yield
376,772
1,513
334,761
1,339
13
13
Emerging markets
979,903
3,935
859,412
3,438
14
14
Eurobonds
605,623
2,403
508,093
2,008
19
20
Other credit
153,869
617
135,975
543
13
14
Total credit trading
3,902,831
15,643
3,549,516
14,173
10
10
Rates
U.S. government bonds
6,322,098
25,390
5,511,045
22,044
15
15
Agency and other government bonds
272,951
1,084
227,614
902
20
20
Total rates trading
6,595,049
26,474
5,738,659
22,946
15
15
Total trading
$
10,497,880
$
42,117
$
9,288,175
$
37,119
13
13
Number of U.S. Trading Days 1
249
250
Number of U.K. Trading Days 2
252
253
1
The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.
2
The number of U.K. trading days is based on the U.K. Bank holiday schedule.
*
Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted.
Table 5: Consolidated Condensed Balance Sheet Data
As of
In thousands (unaudited)
December 31, 2025
December 31, 2024
Assets
Cash and cash equivalents
$
519,734
$
544,478
Cash segregated under federal regulations
48,722
47,107
Investments, at fair value
170,677
165,260
Accounts receivable, net
100,989
91,845
Receivables from broker-dealers, clearing organizations and customers
362,931
357,728
Goodwill
283,667
236,706
Intangible assets, net of accumulated amortization
110,629
98,078
Furniture, equipment, leasehold improvements and capitalized software, net
112,431
107,298
Operating lease right-of-use assets
51,854
58,132
Prepaid expenses and other assets
46,972
82,584
Total assets
$
1,808,606
$
1,789,216
Liabilities and stockholders' equity
Liabilities
Accrued employee compensation
$
73,879
$
68,054
Payables to broker-dealers, clearing organizations and customers
199,679
218,845
Borrowings
220,000
—
Income and other tax liabilities
49,267
3,683
Accounts payable, accrued expenses and other liabilities
42,584
37,320
Operating lease liabilities
64,938
72,654
Total liabilities
650,347
400,556
Redeemable noncontrolling interest
12,592
—
Stockholders' equity
Common stock
123
123
Additional paid-in capital
305,923
350,701
Treasury stock
(694,764
)
(333,369
)
Retained earnings
1,538,746
1,405,904
Accumulated other comprehensive income/(loss)
(4,361
)
(34,699
)
Total stockholders' equity
1,145,667
1,388,660
Total liabilities, redeemable noncontrolling interest and stockholders' equity
$
1,808,606
$
1,789,216
Table 6: Reconciliation of Notable Items
Quarter
Full Year
$ in thousands, except per share data (unaudited)
4Q 2025
3Q 2025
4Q 2024
FY 2025
FY 2024
Total Expenses, GAAP-basis
$
133,396
$
123,242
$
122,428
$
504,430
$
476,227
Exclude: Notable items
Repositioning charges 1
(1,084
)
—
—
(5,054
)
—
Total Expenses, excluding notable items
$
132,312
$
123,242
$
122,428
$
499,376
$
476,227
Other income (expense), GAAP-basis
$
3,773
$
8,060
$
4,619
$
25,157
$
19,676
Exclude: Notable items
Acquisition-related charge/(credit) 2
—
—
—
557
—
Other income (expense), excluding notable items
$
3,773
$
8,060
$
4,619
$
25,714
$
19,676
Net income, GAAP-basis
$
92,394
$
68,273
$
65,139
$
246,912
$
274,181
Exclude: Notable items
Repositioning charges 1
1,084
—
—
5,054
—
Acquisition-related charge/(credit) 2
—
—
—
557
—
Income tax impact from notable items
(254
)
—
—
(1,471
)
—
Reserve for uncertain tax positions related to prior periods
(31,308
)
—
—
23,631
—
Net income, excluding notable items
$
61,916
$
68,273
$
65,139
$
274,683
$
274,181
Diluted EPS, GAAP-basis
$
2.51
$
1.84
$
1.73
$
6.64
$
7.28
Notable items as reconciled above
(0.83
)
—
—
0.75
—
Diluted EPS, excluding notable items
$
1.68
$
1.84
$
1.73
$
7.39
$
7.28
Effective tax rate, GAAP-basis
-15.8
%
27.1
%
23.0
%
32.7
%
24.0
%
Notable items as reconciled above
39.2
—
—
(6.4
)
—
Effective tax rate, excluding notable items
23.4
%
27.1
%
23.0
%
26.3
%
24.0
%
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
Quarter
Full Year
In thousands (unaudited)
4Q 2025
3Q 2025
4Q 2024
FY 2025
FY 2024
Net income
$
92,394
$
68,273
$
65,139
$
246,912
$
274,181
Add back:
Interest income
(5,448
)
(5,850
)
(6,719
)
(24,397
)
(26,046
)
Interest expense
964
171
318
1,487
1,601
Provision for income taxes
(12,608
)
25,366
19,456
120,083
86,365
Depreciation and amortization
19,606
19,662
18,540
76,699
73,824
EBITDA
$
94,908
$
107,622
$
96,734
$
420,784
$
409,925
Net income margin 1
44.1
%
32.7
%
32.2
%
29.2
%
33.6
%
Add back:
Interest income
(2.6
)
(2.8
)
(3.3
)
(2.9
)
(3.2
)
Interest expense
0.5
0.1
0.2
0.2
0.2
Provision for income taxes
(6.1
)
12.1
9.5
14.1
10.6
Depreciation and amortization
9.4
9.4
9.2
9.1
9.0
EBITDA margin 2
45.3
%
51.5
%
47.8
%
49.7
%
50.2
%
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
Quarter
Full Year
In thousands (unaudited)
4Q 2025
3Q 2025
4Q 2024
FY 2025
FY 2024
Net cash (used in)/provided by operating activities
$
158,632
$
90,164
$
176,248
$
382,139
$
385,237
Exclude: Net change in trading investments
(404
)
264
—
(206
)
629
Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers
(67,825
)
34,338
(51,833
)
22,965
(1,118
)
Less: Purchases of furniture, equipment and leasehold improvements
(3,572
)
(1,496
)
(215
)
(8,204
)
(9,942
)
Less: Capitalization of software development costs
(11,775
)
(11,494
)
(10,833
)
(49,810
)
(46,623
)
Free cash flow
$
75,056
$
111,776
$
113,367
$
346,884
$
328,183