Financial Data and Key Metrics Changes - Cboe reported a 14% year-over-year increase in net revenue, reaching a record $587 million, and adjusted diluted EPS also rose by 14% to $2.46 [6][20] - Adjusted operating expenses increased by 8% year-over-year to $213 million, while adjusted operating EBITDA grew by 19% to $387 million, resulting in an adjusted operating EBITDA margin expansion of 2.3 percentage points to 65.8% [20][24] Business Line Data and Key Metrics Changes - Derivatives markets net revenues grew by 17%, with options volumes increasing significantly due to heightened market volatility [7][20] - The Options segment achieved a record net revenue growth of 19% year-over-year, with a 20% increase in total Options average daily volume [21] - DataVantage business net revenue improved by 11% year-over-year, driven by strong new subscription and unit sales [14][23] Market Data and Key Metrics Changes - The European cash equities business drove an 11% increase in cash and spot markets net revenue, with Europe and Asia Pacific segments achieving a 30% year-over-year growth [12][22] - Net transaction and clearing fees in the Europe and APAC segment rose by 39% year-over-year, reflecting strong industry volumes [12][22] Company Strategy and Development Direction - The company is focused on optimizing growth in core businesses while exploring organic and inorganic investment opportunities [31][32] - Cboe's decision to close its Japan equities business reflects a strategy to redirect resources to higher potential return activities [13][26] - The management emphasizes the importance of capital allocation and is committed to assessing the business portfolio for long-term shareholder returns [32][78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of options as an asset class, driven by continued uncertainty in monetary and trade policy [11][31] - The company remains committed to enhancing its product offerings and expanding its global presence, particularly in the Asia Pacific region [15][66] Other Important Information - Cboe expects to record a pretax charge of approximately $5 million related to the wind down of its Japanese equities business, which will be excluded from adjusted operating expenses [26] - The company repurchased $35 million in shares during the quarter, with year-to-date repurchases totaling $65 million [28] Q&A Session Summary Question: Key priorities for the new CEO - The new CEO emphasized optimizing growth in core businesses and exploring compelling inorganic growth opportunities, while maintaining a flexible balance sheet [38][39] Question: Evaluation of business footprint - The CEO indicated that the company is rigorously evaluating all business operations to ensure capital is allocated to the best growth opportunities [42] Question: DataVantage revenue guidance - Management remains confident in the full-year guidance for DataVantage, noting strong momentum in new subscription sales and international demand [46][49] Question: Long-term growth for index options volume - The management highlighted the sustainability of zero DTE volumes and the potential for growth through retail broker partnerships and international expansion [51][53] Question: Competitive environment for single stock zero DTE - Management sees single stock zero DTEs as complementary to index options, with retail traders likely to migrate to index options as their sophistication increases [55][56] Question: Relationship with S&P Global - The CEO reaffirmed the long-term partnership with S&P Global and the importance of mutual growth and innovation [60][63] Question: Globalization strategy - The company is focused on importing flow from outside the U.S. into its markets, leveraging data as a key driver for growth [66] Question: Industry evolution and retail engagement - Management views the growth in retail engagement as a long-term trend and is committed to remaining relevant in a dynamic environment [71][73]

Financial Performance - Cboe's net revenue for Q2 2025 reached $587.3 million, a 14% increase year-over-year[37, 45] - Adjusted operating EBITDA for Q2 2025 was $387 million, up 19% year-over-year, with a margin of 65.8%[38, 39] - Adjusted diluted EPS for Q2 2025 was $2.46, a 14% increase year-over-year[41, 42] Segment Performance - Options net revenue increased by 19% to $364.8 million in Q2 2025, driven by higher transaction and clearing fees[14, 66] - North American Equities net revenue remained roughly flat at $98.4 million in Q2 2025[14, 67] - Europe and Asia Pacific net revenue increased by 30% to $70.4 million in Q2 2025, reflecting transaction and non-transaction revenue growth[14, 69] - Futures net revenue decreased by 14% to $30.1 million in Q2 2025, due to a decrease in ADV[14, 72] - Global FX net revenue increased by 19% to $23.6 million in Q2 2025, driven by higher transaction and clearing fees[14, 74] Data and Market Trends - Data Vantage net revenue grew 11% organically year-over-year in Q2 2025, reaching $155.1 million[47, 49] - Total options ADV was up 20%, with index options ADV up 17% and multi-listed options ADV up 22%[14, 66] - U S Equities On-Exchange matched ADV increased 43% to $1.9 billion in Q2 2025[26]

Financial Performance - Total revenues for the second quarter of 2025 reached $1,173.5 million, a 20.5% increase from $974.0 million in the same period of 2024[22] - Net income for the second quarter of 2025 was $235.1 million, compared to $140.4 million in the second quarter of 2024, reflecting a 67.5% year-over-year growth[24] - Operating income for the first half of 2025 was $693.0 million, up 40.7% from $492.5 million in the first half of 2024[22] - The company reported a comprehensive income of $302.3 million for the second quarter of 2025, compared to $137.2 million in the same quarter of 2024[24] - Basic earnings per share for the second quarter of 2025 were $2.23, an increase from $1.33 in the second quarter of 2024[22] - Net income for the six months ended June 30, 2025, was $485.7 million, compared to $349.9 million for the same period in 2024, representing a 39% increase[28] - For the six months ended June 30, 2025, total revenues reached $2,368.5 million, compared to $1,931.2 million for the same period in 2024, reflecting a year-over-year growth of about 22.7%[48] Cash and Assets - Cash and cash equivalents increased to $1,256.3 million as of June 30, 2025, compared to $920.3 million at the end of 2024, representing a 36.5% increase[20] - Total assets grew to $9,048.3 million as of June 30, 2025, up from $7,789.1 million at December 31, 2024, indicating a 16.2% increase[20] - Total stockholders' equity increased to $4,665.1 million as of June 30, 2025, compared to $4,279.6 million at December 31, 2024, marking a 9.0% growth[20] - The company’s goodwill stood at $3,155.9 million as of June 30, 2025, slightly up from $3,124.2 million at the end of 2024[20] Liabilities and Debt - Total current liabilities increased to $2,386.6 million as of June 30, 2025, compared to $1,395.2 million at December 31, 2024, reflecting a 70.9% rise[20] - The company's total debt as of June 30, 2025, was $1,442.0 million, slightly up from $1,441.0 million as of December 31, 2024[85] - As of June 30, 2025, total accounts payable and accrued liabilities increased to $467.3 million from $359.7 million as of December 31, 2024, representing a 30% increase[84] Revenue Streams - Transaction and clearing fees accounted for $867.7 million in Q2 2025, up from $697.6 million in Q2 2024, reflecting a growth of about 24.4%[48] - Access and capacity fees increased to $101.2 million in Q2 2025 from $90.5 million in Q2 2024, marking an increase of approximately 11.8%[48] - Market data fees rose to $82.4 million in Q2 2025, compared to $73.7 million in Q2 2024, indicating a growth of around 11.3%[48] - Regulatory fees totaled $96.8 million in Q2 2025, up from $85.9 million in Q2 2024, which is an increase of approximately 12.0%[48] Stock and Dividends - Cash dividends on common stock were $0.63 per share, totaling $66.4 million in cash outflow[26] - Cash dividends on common stock increased to $132.8 million in 2025 from $116.7 million in 2024, a rise of 14%[28] - The share repurchase program has repurchased 21,063,700 shares at an average cost of $80.02 per share, totaling $1.7 billion since inception[184] - During Q2 2025, the Company repurchased 160,564 shares at an average price of $219.77, totaling $35.3 million[184] Operating Expenses - The cost of revenues for the three months ended June 30, 2025, was $586.2 million, compared to $460.2 million in the same period of 2024, which is an increase of about 27.3%[148] - The company reported depreciation and amortization expenses of $29.9 million for the three months ended June 30, 2025, compared to $31.8 million in the same period of 2024, showing a decrease of about 5.9%[148] - Stock-based compensation increased to $12.4 million in the latest quarter, up from $11.7 million[26] Regulatory and Compliance - The Company is currently undergoing audit examinations by various taxing jurisdictions, with potential adjustments that may result in additional tax payments[193] - The SEC approved a revised funding model for the CAT, which will assess fees based on executed equivalent shares of transactions in eligible securities[66] - Cboe Australia is required to maintain a cash reserve equal to at least six months of projected operating expenses to comply with regulatory requirements[166] Strategic Changes - The company plans to refocus its digital asset business to leverage core strengths in derivatives, technology, and product innovation, closing the Cboe Digital spot market effective May 31, 2024[37] - Cboe Digital Exchange no longer lists or trades any products as of June 9, 2025, with results from the Digital segment now included in the Futures reporting segment[37] - The Company operates five reportable business segments as of January 1, 2025, down from six, reflecting a strategic reorganization[36] Future Projections - The Company expects to adopt ASU 2024-03 for the annual financial statements for the year ending December 31, 2027, and is currently assessing its impact on consolidated financial statement disclosures[44] - The estimated future amortization expense is projected to be $34.5 million for the remainder of 2025[81]

Financial Performance - Cboe reported record quarterly net revenue of $587.3 million, up 14% year-over-year, and diluted EPS of $2.23, an increase of 68% compared to the same period in 2024[3][4]. - Adjusted diluted EPS for the quarter was $2.46, reflecting a 14% increase year-over-year, with year-to-date growth of 15%[3][4]. - Total revenues for Q2 2025 reached $1,173.5 million, a 20.5% increase from $974.0 million in Q2 2024[36]. - Net income for Q2 2025 was $235.1 million, up 67.6% from $140.4 million in Q2 2024, resulting in a diluted earnings per share of $2.23[36]. - Adjusted diluted earnings per share for Q2 2025 was $2.46, compared to $2.15 in Q2 2024, reflecting a 14.5% growth[45]. - Adjusted operating income for the first half of 2025 reached $746.8 million, a 19.5% increase from $624.9 million in the same period of 2024[45]. - Operating income for Q2 2025 was $339.1 million, a 61.4% increase from $210.1 million in Q2 2024[36]. - Adjusted Operating EBITDA for the first half of 2025 reached $771.4 million, compared to $646.6 million in the same period of 2024, reflecting a 19.3% growth[49]. Revenue Growth - Derivatives net revenue grew 17%, driven by robust volumes in the options business, while Data Vantage and Cash and Spot Markets both saw 11% net revenue growth[3][4]. - Options net revenue reached $364.8 million, a 19% increase, with a 20% rise in total options average daily volume (ADV) compared to the second quarter of 2024[10]. - Record Europe and APAC net revenue of $70.4 million increased by 30%, with European Equities ADNV traded on Cboe increasing by 43% year-over-year[10]. - Europe and Asia Pacific net revenues for Q2 2025 were $70.4 million, up from $54.3 million in Q2 2024, marking a 29.6% increase[51]. Guidance and Projections - Cboe increased its organic total net revenue growth guidance for 2025 to high single digits, reaffirming the Data Vantage organic net revenue growth target of mid to high single digits[4]. - The company decreased its 2025 adjusted operating expense guidance to a range of $832 million to $847 million, down from $837 million to $852 million[4]. - Organic total net revenue growth is expected to be in the high single-digit range in 2025, an increase from previous guidance of mid to high single digits[16]. - Adjusted operating expenses are projected to be between $832 million and $847 million in 2025, down from previous guidance of $837 million to $852 million[16]. - Capital expenditures in 2025 are expected to be in the range of $75 million to $85 million[16]. Cash and Liquidity - As of June 30, 2025, the company had cash and cash equivalents of $1,256.3 million and total debt of $1,442.0 million[13]. - The company paid cash dividends of $66.4 million, or $0.63 per share, during Q2 2025 and repurchased approximately 161 thousand shares at an average price of $219.77 per share[13]. - Cash and cash equivalents increased to $1,256.3 million as of June 30, 2025, compared to $920.3 million at December 31, 2024, reflecting a 36.5% growth[37]. - Adjusted Cash as of June 30, 2025, was $1,238.2 million, up from $879.5 million at the end of 2024, indicating a 40.9% increase[51]. - The company has approximately $614.5 million of availability remaining under its existing share repurchase authorizations as of June 30, 2025[13]. Market Share and Competitive Environment - Cboe's U.S. Equities exchanges had a market share of 10.5%, down from 11.4% in the second quarter of 2024, attributed to higher industry off-exchange market share[10]. - The company operates in a competitive environment with various risks that could impact future performance, including changes in trading volumes and regulatory conditions[20]. - Total Options market share in Q2 2025 was 30.2%, down from 31.1% in Q1 2025[26]. Expenses and Costs - The company reported a total cost of revenues of $586.2 million in Q2 2025, compared to $460.2 million in Q2 2024, reflecting a 27.3% increase[36]. - Net transaction and clearing fees for Q2 2025 were $429.0 million, up from $374.0 million in Q2 2024, indicating a 14.7% increase[38]. - The effective tax rate on adjusted earnings for the full year 2025 is expected to be between 28.5% and 30.5%[16]. - The effective tax rate on adjusted earnings for the first half of 2025 was 29.0%, slightly up from 28.8% in the same period of 2024[45]. Other Financial Metrics - Goodwill increased to $3,155.9 million as of June 30, 2025, from $3,124.2 million at December 31, 2024, showing a growth of 1.0%[37]. - Total assets rose to $9,048.3 million as of June 30, 2025, up from $7,789.1 million at the end of 2024, marking a 16.2% increase[37]. - Total liabilities increased to $4,383.2 million as of June 30, 2025, compared to $3,509.5 million at the end of 2024, a rise of 24.8%[37]. - The liquidity payments increased to $418.0 million in Q2 2025, compared to $307.0 million in Q2 2024, representing a 36.3% rise[36].

Financial Performance - Cboe Global Markets reported record quarterly net revenue of $587 million, a 14% increase year-over-year from $513.8 million in Q2 2024 [2][9] - Diluted EPS for Q2 2025 was $2.23, up 68% compared to $1.33 in Q2 2024, while adjusted diluted EPS increased 14% to $2.46 [8][9] - Total operating expenses decreased to $248.2 million from $303.7 million in Q2 2024, primarily due to the prior year's impairment of intangible assets [9] Business Segment Performance - Derivatives net revenue grew 17%, driven by strong volumes in the options business, with options revenue reaching $364.8 million, up 19% from the previous year [7][15] - Data Vantage reported an 11% increase in net revenue, while Cash and Spot Markets also saw an 11% rise [2][9] - Futures net revenue decreased by 14% to $30.1 million, attributed to a decline in net transaction and clearing fees [12][15] Guidance and Outlook - The company raised its organic total net revenue growth guidance for 2025 to high single digits from mid to high single digits [2][16] - Adjusted operating expense guidance for 2025 was lowered to a range of $832 million to $847 million, down from $837 million to $852 million [2][16] - The effective tax rate for adjusted earnings is expected to be between 28.5% and 30.5% for the full year 2025 [16] Capital Management - As of June 30, 2025, Cboe had cash and cash equivalents of $1,256.3 million and total debt of $1,442.0 million [18] - The company paid cash dividends of $66.4 million during Q2 2025 and repurchased approximately 161,000 shares at an average price of $219.77 per share [19]

Core Insights - Cboe Global Markets, Inc. (CBOE) is anticipated to show improvements in both revenue and earnings for Q2 2025, with revenue expected at $572.24 million, reflecting an 11.3% year-over-year growth [2] - The earnings consensus estimate is $2.42 per share, indicating a 12.5% increase from the previous year, with a slight upward revision of 0.8% in the last 30 days [3] Revenue and Earnings Estimates - The Zacks Consensus Estimate for CBOE's second-quarter revenues is $572.24 million, which is an 11.3% increase from the prior year [2] - The earnings estimate for the quarter is $2.42 per share, representing a year-over-year increase of 12.5% [3] Earnings Prediction Model - The earnings prediction model indicates a likely earnings beat for Cboe Global, supported by a positive Earnings ESP of +0.66% and a Zacks Rank of 3 (Hold) [4][5] Factors Influencing Q2 Results - Growth in index options, higher transaction and clearing fees, and increased access and capacity fees are expected to positively impact CBOE's Q2 performance [6] - Increased revenues from cash and spot markets, as well as derivatives markets, are anticipated due to higher transaction volumes on Cboe exchanges [7] Fee Structure and Revenue Breakdown - The company expects higher revenues from proprietary market data fees, with estimates of $81.1 million for market data revenues and $96.6 million for access and capacity fees [9] - Increased transaction and clearing fees are projected to benefit both cash and spot markets as well as the derivatives business [8] Product Performance - Cboe Global is expected to benefit from strong performance in proprietary products, including VIX futures and SPX options, along with growth in multi-listed options trading [12] - Continued share buybacks are anticipated to support the bottom line for the quarter [12]

Core Viewpoint - Analysts forecast that CBOE Global (CBOE) will report quarterly earnings of $2.42 per share, reflecting a year-over-year increase of 12.6%, with anticipated revenues of $572.24 million, an increase of 11.4% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Net transaction and clearing fees' at $423.80 million, indicating a year-over-year change of +13.3% [5]. - 'Revenues- Futures- Transaction and clearing fees' are projected to reach $28.59 million, reflecting a change of +1.7% from the prior-year quarter [5]. - The consensus estimate for 'Revenues- Global FX- Transaction and Clearing Fees' stands at $19.39 million, with a year-over-year change of +13.4% [6]. - 'Revenues- Options- Transaction and clearing fees' are estimated at $436.32 million, suggesting a change of +13.1% year over year [6]. - 'Revenues- Options- Market data fees' are forecasted to reach $34.73 million, indicating a change of +12% year over year [6]. - 'Revenues- Options- Access and capacity fees' are expected to be $43.68 million, reflecting a change of +5% from the prior-year quarter [7]. Volume Metrics - Analysts predict 'Average Daily Volume by Product - Options - Multi-listed options' to reach 12.58 million, compared to 10.37 million in the previous year [7]. - 'Average Daily Volume by Product - Options - Index options' is expected to reach 4.62 million, up from 4.02 million year-over-year [8]. - 'Average Daily Volume by Product - Futures' is projected at 238.83 thousand, down from 253.60 thousand in the same quarter last year [8]. - 'Average Daily Volume by Product - Options' is estimated to reach 17.20 million, compared to 14.38 million in the previous year [9]. - The average prediction for 'Average Daily Notional Volume by Product - Global FX' is 55.22 billion, up from 47.70 billion in the same quarter last year [9]. - 'Average Daily Volume - Total Industry Options' is expected to reach 53.21 million, compared to 46.13 million in the same quarter last year [10]. Stock Performance - Over the past month, CBOE shares have recorded returns of +3.6%, aligning with the Zacks S&P 500 composite's +3.6% change, indicating a performance that is likely to align with the overall market [11].

Company Overview - Cboe Global Markets is a leading global exchange operator, known for being the largest options exchange in the U.S. and the largest stock exchange in Europe [1]. Business Segments - The company operates through multiple segments, including Options, North American Equities, and Europe [1].

Market Overview - The stock market is entering a "danger zone," particularly in August, which is historically a poor month for American equity markets [2][5] - TradeSmith's Trade Cycles system indicates that many stocks associated with early summer rallies tend to decline as fall approaches [2][3] Company Insights - Cboe Global Markets Inc. (CBOE) is highlighted as a strong buy due to its position as the largest U.S. options exchange and its monopoly over VIX equity contracts, which are essential for traders seeking to hedge positions [6][7] - Cboe has consistently beaten earnings estimates in the third quarter, with a 4.7% average beat compared to 1.8% in the second quarter, indicating a "slow burn" of rising share prices from June 17 to September 10 [8] Seasonal Trends - The summer months see reduced liquidity, with daily trading volumes averaging 9.3 billion shares in August, about 30% lower than March's 13.2 billion [5] - Gasoline refining companies like Valero Energy Corp. (VLO) and Marathon Petroleum Corp. (MPC) typically see gains of up to 7% due to increased road trips during the summer [10][11] - O'Reilly Automotive Inc. (ORLY) is recommended for its longer seasonal bull cycle, benefiting from repairs needed before and after road trips, and showing strong growth compared to competitors [12][13] Financial Performance - O'Reilly reported a 9.1% growth rate in its professional segment and a 3.5% growth rate in the do-it-yourself segment, outperforming competitors [13] - O'Reilly's distribution network and knowledgeable staff contribute to its competitive advantage, allowing it to meet demand quickly [14][15] Investment Strategy - O'Reilly's shares are trading at a premium, with a forward earnings ratio of 32X compared to competitors' 17.5X, suggesting a justified value closer to $70 [16] - The Trade Cycles system provides insights on optimal buying and selling times, recommending holding ORLY through early September before exiting [16][20]

Cboe will maintain presence in Japan for its Global Derivatives and Cboe Data Vantage businesses CHICAGO and TOKYO, July 23, 2025 /PRNewswire/ -- Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced its decision to wind down its Japanese equities business, including the operations of its Cboe Japan proprietary trading system and Cboe BIDS Japan block trading platform. Cboe expects to suspend operations for these businesses on August 29, 202 ...