Core Insights - CBOE Global reported revenue of $565.2 million for Q1 2025, a 12.6% year-over-year increase, with EPS of $2.50 compared to $2.15 a year ago, exceeding Zacks Consensus Estimates [1] - The company achieved a revenue surprise of +1.54% and an EPS surprise of +5.93% compared to analyst expectations [1] Financial Performance Metrics - Average Revenue Per Contract for Futures was $1.74, slightly below the $1.76 estimate [4] - Average Daily Volume for Multi-listed options was 13.41 million, exceeding the 12.99 million estimate [4] - Access and capacity fees generated $97.80 million, surpassing the $96.55 million estimate, reflecting an 8.6% year-over-year increase [4] - Market data fees totaled $77.80 million, above the $75.92 million estimate, with an 8.1% year-over-year increase [4] - Other revenue was $25 million, below the $28.23 million estimate, representing a -5.3% change year-over-year [4] - Net transaction and clearing fees reached $832.60 million, exceeding the $788.83 million estimate, with a 15.9% year-over-year increase [4] - Regulatory fees surged to $161.80 million, significantly above the $90.18 million estimate, marking a 222.3% year-over-year increase [4] Stock Performance - CBOE shares returned -2% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near term [3]

Core Viewpoint - CBOE Global (CBOE) reported quarterly earnings of $2.50 per share, exceeding the Zacks Consensus Estimate of $2.36 per share, and showing an increase from $2.15 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 5.93%, with the company having surpassed consensus EPS estimates three times over the last four quarters [2] - CBOE's revenues for the quarter were $565.2 million, surpassing the Zacks Consensus Estimate by 1.54%, and up from $502.1 million year-over-year [3] Stock Performance - CBOE shares have increased approximately 13.2% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500 [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.34 on revenues of $559.87 million, and for the current fiscal year, it is $9.41 on revenues of $2.24 billion [8] - The Zacks Rank for CBOE is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Industry Context - The Securities and Exchanges industry, to which CBOE belongs, is currently ranked in the top 6% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [9]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, are presented [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $8.67 billion, driven by a significant rise in margin deposits and clearing funds Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$8,667.3** | **$7,789.1** | | Cash and cash equivalents | $1,047.2 | $920.3 | | Margin deposits, clearing funds | $1,623.0 | $845.5 | | Goodwill | $3,132.0 | $3,124.2 | | **Total Liabilities** | **$4,215.2** | **$3,509.5** | | Margin deposits, clearing funds | $1,623.0 | $845.5 | | Long-term debt | $1,441.5 | $1,441.0 | | **Total Stockholders' Equity** | **$4,452.1** | **$4,279.6** | [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Total revenues increased 25% year-over-year to $1.195 billion, resulting in a 20% rise in net income Q1 2025 vs. Q1 2024 Income Statement (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $1,195.0 | $957.2 | | Revenues less cost of revenues | $565.2 | $502.1 | | Operating income | $353.9 | $282.4 | | Net income | $250.6 | $209.5 | | Diluted earnings per share | $2.37 | $1.96 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $912.9 million, with financing activities using $114.5 million Cash Flow Summary (in millions) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $912.9 | $895.6 | | Net cash used in investing activities | $(19.7) | $(13.3) | | Net cash used in financing activities | $(114.5) | $(168.6) | | **Increase in cash, cash equivalents, and restricted cash** | **$904.4** | **$688.7** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The company reorganized its reportable segments from six to five, effective January 1, 2025 - Effective January 1, 2025, the Company reorganized its reportable segments from six to five: Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX[36](index=36&type=chunk) - The former Digital segment's operating results are now prospectively included within the Futures reporting segment as of Q1 2025[37](index=37&type=chunk) Disaggregated Revenue by Type - Q1 2025 (in millions) | Revenue Type | Cash and Spot Markets | Data Vantage | Derivatives Markets | Total | | :--- | :--- | :--- | :--- | :--- | | Transaction and clearing fees | $341.0 | $— | $491.6 | $832.6 | | Access and capacity fees | $— | $97.8 | $— | $97.8 | | Market data fees | $15.7 | $54.0 | $8.1 | $77.8 | | Regulatory fees | $120.7 | $— | $41.1 | $161.8 | | **Total** | **$500.9** | **$152.5** | **$541.6** | **$1,195.0** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 25% increase in total revenues driven by higher trading volumes and Section 31 fees Financial Summary - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $1,195.0 | $957.2 | 25% | | Revenues less cost of revenues | $565.2 | $502.1 | 13% | | Operating income | $353.9 | $282.4 | 25% | | Net income | $250.6 | $209.5 | 20% | | Adjusted diluted EPS | $2.50 | $2.15 | 16% | - As of January 1, 2025, the company operates five reportable business segments: Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX[226](index=226&type=chunk)[228](index=228&type=chunk) [Results of Operations](index=61&type=section&id=Results%20of%20Operations) Total revenues grew 25% to $1.195 billion, while operating expenses fell 4% to $211.3 million - Total revenues increased by **$237.8 million (25%)**, primarily due to higher volumes and a significant increase in the Section 31 fee rate to **$27.80 per million**[282](index=282&type=chunk)[284](index=284&type=chunk)[286](index=286&type=chunk) - Total operating expenses decreased by **$8.4 million (4%)**, mainly due to a $7.0 million decline in depreciation and amortization expense[299](index=299&type=chunk)[302](index=302&type=chunk) [Segment Operating Results](index=68&type=section&id=Segment%20Operating%20Results) All five business segments reported growth in revenues less cost of revenues, led by the Options segment Revenues Less Cost of Revenues by Segment - Q1 2025 vs Q1 2024 (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Options | $352.4 | $307.4 | 15% | | North American Equities | $94.6 | $92.6 | 2% | | Europe and Asia Pacific | $64.1 | $54.1 | 18% | | Futures | $32.8 | $30.5 | 8% | | Global FX | $21.3 | $18.4 | 16% | | **Total** | **$565.2** | **$502.1** | **13%** | - The Options segment's growth was driven by a **17% increase in index options ADV** and a **25% increase in multi-listed options ADV**[330](index=330&type=chunk) - The Europe and Asia Pacific segment's performance was boosted by a **39% increase in Cboe European Equities matched ADNV** and a **40% increase in trades cleared**[336](index=336&type=chunk) [Liquidity and Capital Resources](index=73&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position while returning capital through dividends and share repurchases - During Q1 2025, the company paid cash dividends of $0.63 per share, totaling **$66.4 million**[189](index=189&type=chunk) - The company repurchased 144,753 shares for **$30.0 million** during the quarter, with **$649.8 million remaining** under its share repurchase authorization[185](index=185&type=chunk)[367](index=367&type=chunk)[368](index=368&type=chunk) - Total debt outstanding was **$1.44 billion** as of March 31, 2025, consisting entirely of fixed-rate Senior Notes[362](index=362&type=chunk)[363](index=363&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks including foreign currency fluctuations, credit risk, and interest rate risk - The company has significant exposure to foreign currency risk, where a **10% adverse fluctuation** would negatively impact revenues less cost of revenues by a combined **$6.1 million**[379](index=379&type=chunk) - Credit risk from trading is largely mitigated as central counterparties guarantee clearance and settlement for most transactions on its exchanges[384](index=384&type=chunk)[371](index=371&type=chunk) - Interest rate risk is limited as the company's **$1.44 billion in debt is all fixed-rate**[395](index=395&type=chunk) [Item 4. Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** as of the end of the reporting period[398](index=398&type=chunk) - **No material changes** to internal control over financial reporting occurred during the first quarter of 2025[399](index=399&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=75&type=section&id=Item%201.%20Legal%20Proceedings) The company details ongoing legal challenges to SEC rules regarding equity access fees and order management systems - The company is legally challenging the SEC's Final Rules that reduce the equity access fee cap, which could materially impact its U.S. equities transaction revenue[402](index=402&type=chunk)[403](index=403&type=chunk)[404](index=404&type=chunk) - Cboe filed a Petition for Review challenging the SEC's disapproval of its proposed rule concerning exchange-affiliated Order and Execution Management Systems (OEMS)[405](index=405&type=chunk)[406](index=406&type=chunk) [Item 1A. Risk Factors](index=75&type=section&id=Item%201A.%20Risk%20Factors) Material risks are highlighted, with an emphasis on the complexities associated with the company's global operations - The company faces increased risks from its global operations, including **currency fluctuations, complex compliance requirements, and geopolitical conditions**[409](index=409&type=chunk) - Global trade policies, such as tariffs, could increase the cost of technology and services, potentially having a **material adverse impact** on business and results[412](index=412&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased $30.0 million of its common stock during the quarter under its share repurchase program Share Repurchases - Q1 2025 | Metric | Value | | :--- | :--- | | Total Shares Purchased | 144,753 | | Average Price Paid per Share | $207.04 | | Total Purchase Price | $30.0 million | | Remaining Authorization | $649.8 million | [Item 5. Other Information](index=77&type=section&id=Item%205.%20Other%20Information) Two executive officers adopted Rule 10b5-1(c) securities trading plans during the first quarter of 2025 - Executive Vice Presidents Christopher Isaacson and Catherine Clay adopted Rule 10b5-1 trading plans for the sale of company securities during the quarter[421](index=421&type=chunk)[422](index=422&type=chunk) [Item 6. Exhibits](index=78&type=section&id=Item%206.%20Exhibits) Exhibits filed with the Form 10-Q include a license agreement amendment, officer certifications, and XBRL data

News Release Page 1 of 15 Cboe Global Markets Reports Results for First Quarter 2025 First Quarter Highlights* CHICAGO, IL – May 2, 2025 - Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the first quarter of 2025. "In the first quarter, Cboe reported record quarterly net revenue of $565 million, record diluted EPS of $2.37, and record adjusted diluted EPS of $2.50, with strong results from each of our Derivatives, Cash and Spot Markets, and Data Vantage categories," said Fredric ...

Group 1 - British Land Company PLC Sponsored ADR (BTLCY) is currently outperforming its peers in the Finance sector with a year-to-date return of 16.8% compared to the sector average of 1.4% [4] - The Zacks Rank for BTLCY is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for BTLCY's full-year earnings has increased by 1.8% over the past three months, reflecting improving analyst sentiment [4] Group 2 - BTLCY belongs to the Real Estate - Operations industry, which has an average year-to-date loss of 5.7%, further highlighting BTLCY's strong performance [6] - The Finance sector, which includes BTLCY, is ranked 3 in the Zacks Sector Rank, indicating a strong overall performance among its constituents [2] - Another stock in the Finance sector, CBOE Global, has also shown strong performance with a year-to-date return of 11.1% and a Zacks Rank of 2 (Buy) [5][7]

Wall Street analysts expect CBOE Global (CBOE) to post quarterly earnings of $2.36 per share in its upcoming report, which indicates a year-over-year increase of 9.8%. Revenues are expected to be $556.64 million, up 10.9% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 6.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals its e ...

Core Viewpoint - Cboe Global Markets has launched Cboe FTSE Bitcoin Index futures, expanding its digital asset derivatives offerings to meet growing customer demand for crypto-based products [1][3][7] Group 1: Product Details - The new XBTF futures are cash-settled contracts, simplifying the trading process by eliminating the need for physical delivery of bitcoin at expiration [2][7] - XBTF futures are exclusively listed on Cboe Futures Exchange and are designed to provide market participants with tools to express views on bitcoin or manage associated risks [2][3] - The XBTF Index, which these futures are based on, represents 1/10th the value of the FTSE Bitcoin Index and is developed in collaboration with Digital Asset Research [4][7] Group 2: Market Context - The launch of XBTF futures follows Cboe's introduction of cash-settled options on the Cboe Bitcoin U.S. ETF Index, creating a complementary suite of bitcoin-related index derivatives [3][4] - Cboe aims to build a comprehensive ecosystem for efficient and flexible access to bitcoin exposure and risk management, reflecting the increasing institutional interest in digital assets [3][4] Group 3: Industry Support - Barak Capital and Prime Trading, LLC have expressed support for the new XBTF futures, highlighting the importance of efficient and stable markets for digital assets [4][4] - These firms will act as liquidity providers, contributing to the overall market stability and trading experience for Cboe's customers [4][4]

The market expects CBOE Global (CBOE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 2, 2025, might help the stock move higher if these key numbers are bett ...

Industry Overview - The Securities and Exchanges industry consists of companies that operate electronic marketplaces for trading stocks, stock options, bonds, and commodity contracts, generating revenues primarily from fees charged to listed companies [1] - The industry is currently ranked in the top 4% of the Zacks Industry Rank, indicating strong performance expectations over the next three to six months [2] Revenue Sources - Major revenue sources for industry players include trade execution, clearing, settlement services, listing services, and transaction fees driven by trading volume growth [4] - Additional revenue streams come from data products, financial indexes, and non-trading revenues such as market technology and information services [5] Market Growth Projections - The securities exchanges market is projected to grow at a five-year CAGR of 12.1%, reaching $49.6 billion by 2028, driven by increasing demand for investment opportunities and the adoption of cryptocurrencies [6] Company Highlights CME Group Inc. - CME Group holds a strong market position with diverse derivative product lines and is focused on strategic alliances, acquisitions, and product innovation [10] - The company offers Bitcoin and Ether options and has an expected revenue growth rate of 6.7% and earnings growth rate of 7.2% for the current year [12] Cboe Global Markets Inc. - Cboe Global Markets is expected to see transaction fee growth driven by increased trading volume, with projected organic net revenue growth in the mid-single-digit range for 2025 [13] - The company is enhancing its competitive edge through strategic acquisitions and has an expected revenue growth rate of 6.8% and earnings growth rate of 7.3% for the current year [15] Intercontinental Exchange Inc. - Intercontinental Exchange benefits from a strong product and service portfolio, particularly in energy and market data services, with strategic buyouts aiding in cost synergies [16][17] - The company has an expected revenue growth rate of 6.3% and earnings growth rate of 12.5% for the current year [18]

Core Insights - Cboe Global Markets is celebrating the 40th anniversary of The Options Institute, which focuses on options education and financial literacy [1][2] - The Options Institute aims to enhance investor knowledge and skills, adapting its offerings to meet the needs of a growing retail trader community [2][4] Historical Context - Founded in 1985, The Options Institute initially aimed to educate professional traders on options mechanics, evolving to serve a broader audience including trading firms, advisors, and industry leaders [3][4] Educational Offerings - The Options Institute has expanded its educational resources to include on-demand and online courses, covering topics from foundational to advanced levels [4] - Courses include "Options 101," "Decision Theory," and "Practitioner's Perspectives: Options Strategies," taught by expert instructors [4] Global Expansion - The Options Institute is expanding its educational efforts internationally, launching programs in Europe and planning similar initiatives in the Asia Pacific region [7][8] - The institute is developing multilingual content to cater to diverse retail investors, with plans to introduce German and French programs in late 2025 [7] Community Engagement - A financial literacy pilot program has been introduced in partnership with schools and charitable organizations to educate students on financial topics [8] - The Options Institute collaborates with retail brokerages to enhance tailored learning experiences for investors [5][6]