Core Viewpoint - Cboe Global Markets is a leading provider of market infrastructure and tradable products, focusing on delivering innovative trading, clearing, and investment solutions globally [1] Group 1: Company Overview - Cboe Global Markets operates a trusted and inclusive global marketplace [1] - The company offers a range of products, technology, and data solutions aimed at enabling participants to achieve a sustainable financial future [1] - Cboe provides trading solutions across multiple asset classes, including equities, derivatives, and FX [1] Group 2: Geographic Reach - Cboe operates in key regions including North America, Europe, and Asia Pacific [1]

Core Insights - Cboe Global Markets reported record trading volumes in August 2025, with significant increases in various segments compared to the previous year [1][9] - The average daily trading volume (ADV) across Cboe's four U.S. options exchanges reached an all-time high of 19.2 million contracts [9] Trading Volume Highlights - Multiply-listed options saw an ADV of 14.3 million contracts, a 38.5% increase from August 2024 and a 17.3% increase from July 2025 [4] - Index options ADV was 4.9 million contracts, up 11.1% year-over-year and 9.5% month-over-month [4] - U.S. equities on-exchange matched shares totaled 1.646 billion, reflecting a 30.8% increase from the previous year [4] - U.S. equities off-exchange matched shares surged to 229 million, a 194.9% increase compared to August 2024 [4] - European equities trading volume increased by 26.3% year-over-year to €10.701 million [4] - Global FX trading volume decreased by 4.9% to $48.819 million compared to the previous month [4] Market Share and Performance - Cboe Clear Europe reported 98,364 cleared trades, a slight decrease of 0.5% from the previous year [4] - The net settlements in Cboe Clear Europe increased by 13.5% year-over-year to 1,115 [4] - The company continues to expand its market presence across multiple asset classes, including equities, derivatives, and FX [5]

Core Insights - Cboe Global Markets, Inc. (CBOE) shares have increased by 26.1% year-to-date, outperforming the industry growth of 15.9%, the Finance sector's return of 12.5%, and the Zacks S&P 500 composite's rise of 9.8% [1] - CBOE has outperformed peers such as Intercontinental Exchange Inc. (ICE), CME Group Inc. (CME), and Nasdaq, Inc. (NDAQ), with their respective year-to-date gains of 21.3%, 16.1%, and 22.6% [1] Market Performance - CBOE has a market capitalization of $25.77 billion, with an average trading volume of 0.8 million shares over the last three months [3] - CBOE shares closed at $246.43, trading above the 50-day and 200-day simple moving averages of $238.63 and $217.89, indicating strong upward momentum [4] Financial Projections - The Zacks Consensus Estimate for CBOE's 2025 earnings per share indicates an 11.5% year-over-year increase, with revenues projected at $2.27 billion, reflecting a 9.6% improvement [8] - Expected long-term earnings growth rate for CBOE is 13.8%, surpassing the industry average of 10.4% [9] Analyst Sentiment - Eight out of 13 analysts have raised their estimates for CBOE's 2025 earnings, with the consensus estimate increasing by 0.9% over the past 60 days [10] Revenue Growth Drivers - CBOE's diversified business mix supports steady revenue generation, with expectations for mid to high single-digit organic net revenue growth in 2025 [7][12] - The company is focused on increasing recurring non-transaction revenues through access and capacity fees and proprietary market data fees [12] Strategic Initiatives - CBOE is enhancing its global service breadth and generating cost synergies through strategic acquisitions [13] - The company has improved its cash position and reduced debt, with favorable leverage ratios compared to industry averages [13] Dividend and Share Repurchase - CBOE has increased dividends for 13 consecutive years and has $614.5 million remaining under its existing share repurchase authorizations as of June 30, 2025 [17]

Core Insights - The Zacks Securities and Exchanges industry is benefiting from a diversified product portfolio, increased trading volumes, and the growing adoption of crypto assets, which is expected to enhance revenues for key players like S&P Global, Intercontinental Exchange, CME Group, Nasdaq Inc., and Cboe Global Markets [1][2] - The industry is focusing on non-trading revenue sources, including market technology and information services, to create stable cash flows and reduce reliance on trading income [4][5] Industry Overview - The Zacks Securities and Exchanges industry includes companies that operate electronic marketplaces for trading stocks, options, bonds, and commodity contracts, generating revenue from fees and providing data services [2] - The industry is experiencing increased adoption of crypto assets, but faces challenges due to regulatory compliance [2] Trends Shaping the Industry - Trading volume is driven by volatility, with a projected market size of $49.6 billion by 2028, growing at a CAGR of 12.1% [3] - Companies are diversifying into recurring revenue sources to stabilize income amidst fluctuating market volumes [4] - Mergers and acquisitions are on the rise, helping companies expand their market reach and product offerings [5] - Continuous investment in technology, particularly AI and blockchain, is enhancing operational efficiency and competitiveness [6][7] Industry Performance - The Zacks Securities and Exchanges industry ranks 24, placing it in the top 10% of Zacks industries, indicating strong near-term prospects [8][9] - The industry has outperformed the broader Zacks Finance sector and the S&P 500, gaining 15% year-to-date compared to 10.7% and 9.5% respectively [12] Valuation Metrics - The industry is currently trading at a trailing P/E of 26.32X, higher than the S&P 500's 22.85X and the sector's 16.89X [15] Company Highlights - **Nasdaq**: Focused on maximizing non-trading revenue and technology services, with a projected EPS growth of 17.4% and 11.5% for 2025 and 2026 respectively [19][20] - **S&P Global**: Positioned to benefit from growing demand for business information services, with EPS growth estimates of 9.2% and 11% for 2025 and 2026 [22][23] - **Intercontinental Exchange**: A leading operator with a strong portfolio and expected EPS growth of 15% and 10.8% for 2025 and 2026 [25][26] - **CME Group**: The largest futures exchange, focusing on expanding product offerings, with EPS growth estimates of 8.6% and 3.8% for 2025 and 2026 [28][29] - **Cboe Global Markets**: Expanding product lines and geographic reach, with EPS growth projections of 11.5% and 5.9% for 2025 and 2026 [32][33]

Core Viewpoint - Cboe Global Markets has appointed Prashant Bhatia as Executive Vice President, Head of Enterprise Strategy & Corporate Development, effective September 2, 2025, to enhance its growth strategy and industry leadership [1][2]. Group 1: Appointment Details - Prashant Bhatia will collaborate with Cboe's executive leadership to refine the company's business strategy and identify growth opportunities [2]. - Craig Donohue, CEO of Cboe, emphasized Bhatia's valuable addition to the leadership team, highlighting his understanding of the competitive landscape and financial decision-making skills [2][3]. Group 2: Background of Prashant Bhatia - Bhatia has over 30 years of experience in the financial services sector, previously leading Enterprise Strategy & Corporate Development at TD Ameritrade for 11 years [3]. - He has been advising Cboe's management and working closely with its board of directors since December 2023 [3]. Group 3: Company Overview - Cboe Global Markets is recognized as the world's leading derivatives and securities exchange network, providing trading solutions across multiple asset classes globally [4]. - The company is committed to building a trusted and inclusive global marketplace to support sustainable financial futures [4].

Core Points - Cboe Global Markets, Inc. has declared a quarterly cash dividend of $0.72 per share for Q3 2025, marking a 14% increase from the previous quarter's dividend of $0.63 per share [1][4] - The dividend is scheduled to be paid on September 15, 2025, to stockholders of record as of August 29, 2025 [1] Company Overview - Cboe Global Markets is recognized as the world's leading derivatives and securities exchange network, providing advanced trading, clearing, and investment solutions globally [2] - The company offers trading solutions across multiple asset classes, including equities, derivatives, and foreign exchange, in North America, Europe, and Asia Pacific [2] - Cboe is committed to fostering a trusted and inclusive global marketplace that supports sustainable financial futures [2]

Core Insights - Cboe Global Markets reported significant increases in trading volumes across various segments for July 2025 compared to July 2024, indicating strong market activity and growth in multiple asset classes [1][5][9] Trading Volume Statistics - Average Daily Trading Volume (ADV) for multiply-listed options reached 12,215 thousand contracts, a 9.6% increase year-over-year from 11,145 thousand contracts in July 2024 [4] - Index options saw an 8.0% increase in ADV, totaling 4,469 thousand contracts compared to 4,140 thousand contracts in July 2024 [4] - U.S. equities on-exchange matched shares increased by 39.9% to 1,790 million shares from 1,280 million shares in July 2024 [4] - U.S. equities off-exchange matched shares surged by 84.8% to 141 million shares from 76 million shares in July 2024 [4] - European equities trading volume rose by 35.3% to €12,490 million from €9,229 million in July 2024 [4] - Cboe Europe Equities achieved record market shares of 26.6% for overall trading and 34.7% for continuous trading in July [5] Notable Records - Cboe's S&P 500 Index (SPX) options set a monthly volume record in zero-days-to-expiry (0DTE) trading, with an ADV of 2.2 million contracts [9] - SPX options recorded their third most active trading day on July 31, with 4.8 million contracts traded [9]

Core Insights - Cboe Global Markets reported record revenue and earnings per share (EPS) for Q2 2025, achieving non-GAAP EPS of $2.46, exceeding analyst expectations of $2.44, and GAAP revenue of $587.3 million, surpassing estimates of $575.1 million [1][2] - The company experienced strong growth in derivatives, market data services, and global foreign exchange units, while facing a decline in market share in the Options and North American Equities segments [1][5][6] - Management raised growth expectations for the remainder of FY2025 and tightened expense guidance despite ongoing competitive pressures [1][12] Financial Performance - Non-GAAP EPS increased by 14% year-over-year from $2.15 in Q2 2024 [2] - GAAP revenue for the Options segment grew by 19% to $364.8 million, supported by a 20% increase in average daily volumes [5] - The North American Equities segment reported flat GAAP net revenue of $98.4 million, with market share declines in both US and Canadian equities [6] - The Europe and Asia Pacific segment achieved 30% revenue growth, reaching $70.4 million, with market share gains in European equities [7] - Futures revenue declined by 14% to $30.1 million, while Global FX revenue increased by 19% to $23.6 million [8] Strategic Focus - Cboe operates marketplaces for a variety of assets, including stocks, options, futures, and foreign currencies, and is focused on product innovation and international expansion [3][4] - The company is enhancing its market data and analytics platform, Data Vantage, and has integrated digital business lines into its Futures unit [4][8] - Management has increased full-year 2025 organic net revenue growth guidance to "high single digits" and adjusted operating expense guidance to $832 million to $847 million [12] Shareholder Returns - The company returned $66.4 million in dividends and $35.3 million in share repurchases during the quarter, maintaining a quarterly dividend of $0.63 per share [9][13]

Core Insights - Cboe Global Markets, Inc. (CBOE) reported second-quarter 2025 adjusted earnings of $2.46 per share, exceeding the Zacks Consensus Estimate by 1.6% and reflecting a year-over-year increase of 14.4% [1][9] - Total adjusted revenues reached a record $587.3 million, up 14% year over year, driven by growth in derivatives markets, Data Vantage, and cash and spot markets [2][9] Financial Performance - Options revenues increased by 19% year over year to $364.8 million, supported by higher market data, access and capacity fees, and increased net transaction and clearing fees due to a rise in total options average daily volume [3] - North American Equities revenues remained flat at $98.4 million year over year, with higher access and capacity fees offset by lower net transaction and clearing fees [3] - Europe and Asia Pacific revenues grew by 30% year over year to $70.4 million, driven by increased net transaction and clearing fees [4] - Futures net revenues decreased by 14% year over year to $30.1 million, primarily due to a 19% decline in net transaction and clearing fees [4] - Global FX net revenues rose by 19% year over year to $23.6 million, mainly due to higher net transaction and clearing fees [4] Operating Metrics - Adjusted operating expenses were $213.3 million, an increase of 8.2% year over year, mainly due to higher compensation, benefits, and technology support services [5] - Adjusted operating income grew by 18.5% year over year to $374 million, surpassing estimates [5] - Adjusted operating margin expanded to 63.7%, an increase of 230 basis points year over year [6] Financial Position - CBOE ended the second quarter with cash and cash equivalents of $1.26 billion, a 36.5% increase from the end of 2024 [7] - Total assets rose to $9 billion, up 16.2% from the end of 2024 [7] - Long-term debt was $1.4 billion, a slight increase of 0.06% from the end of 2024 [7] - Total shareholders' equity increased by 9% to $4.7 billion from December 31, 2024 [7] Shareholder Returns - CBOE paid out cash dividends of $66.4 million or 63 cents per share and repurchased shares worth $35.3 million in the second quarter [10] - Approximately $614.5 million remains under the current share repurchase authorization as of June 30, 2025 [10] Guidance - CBOE anticipates high single-digit organic revenue growth and has adjusted 2025 expense guidance downwards [11] - Adjusted operating expenses are expected to be in the range of $832 million to $847 million, lower than previous guidance [11] - The company reaffirms capital expenditures for 2025 to be in the range of $75 million to $85 million [13]

Company Performance - CBOE Global reported quarterly earnings of $2.46 per share, exceeding the Zacks Consensus Estimate of $2.42 per share, and up from $2.15 per share a year ago [1] - The earnings surprise for this quarter was +1.65%, following a previous quarter surprise of +5.93% where actual earnings were $2.50 compared to an expected $2.36 [2] - The company achieved revenues of $587.3 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.63% and increasing from $513.8 million year-over-year [3] Market Performance - CBOE shares have increased approximately 23.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.8% [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.29 on revenues of $558.16 million, and for the current fiscal year, it is $9.58 on revenues of $2.26 billion [8] - The Zacks Rank for CBOE is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Securities and Exchanges industry, to which CBOE belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]