Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: IntercontinentalExchange (ICE) - ICE currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The stock has shown significant price increases, with a 6.26% rise over the past week and a 14.38% increase over the past month, outperforming the Zacks Securities and Exchanges industry [5] - Over the past quarter, ICE shares increased by 6.97%, and over the last year, they gained 33.09%, while the S&P 500 saw declines of -5.82% and a modest increase of 9.94% respectively [6] Trading Volume - ICE's average 20-day trading volume is 2,627,647 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, 9 earnings estimates for ICE have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $6.73 to $6.91 [9] - For the next fiscal year, similar trends are observed with 9 upward revisions and 1 downward revision [9] Conclusion - Given the positive momentum indicators and earnings outlook, ICE is positioned as a strong buy candidate for investors seeking short-term opportunities [11]

Core Viewpoint - Intercontinental Exchange (ICE) reported strong first-quarter 2025 results, with adjusted earnings per share of $1.72, exceeding estimates and reflecting a 16.2% year-over-year increase [1][11] Financial Performance - Net revenues reached a record $2.5 billion, up 11.7% year over year, surpassing estimates by 0.5% [2] - Total operating expenses increased by 2% year over year to $1.3 billion, driven by higher compensation, acquisition costs, and occupancy expenses [2] - Adjusted operating income rose 11% year over year to $1.5 billion, with an adjusted operating margin expanding by 200 basis points to 61% [3] Segment Performance - Exchanges segment net revenues were $1.4 billion, up 12% year over year, with adjusted operating income of $1 billion, reflecting a 12.8% increase [4] - Fixed Income and Data Services revenues were $596 million, a 5% increase year over year, with adjusted operating income rising 5.4% to $273 million [5] - Mortgage Technology revenues increased by 2% to $510 million, with adjusted operating income up 9.7% to $203 million [6] Financial Update - As of March 31, 2025, cash and cash equivalents were approximately $2 billion, a 1.6% increase from the end of 2024, while long-term debt rose to $17.3 billion [7] - Total equity was $28 billion, up 1.2% from the end of 2024, with operating cash flow at $966 million, down 4.3% year over year [7] Guidance and Shareholder Returns - For the second quarter of 2025, GAAP operating expenses are expected to be between $1.23 billion and $1.24 billion, with adjusted operating expenses projected between $980 million and $990 million [9] - ICE repurchased $241 million of its common stock and paid $278 million in dividends in the first quarter, with a dividend of 48 cents per share approved for the second quarter [10]

Core Insights - IntercontinentalExchange (ICE) reported revenue of $2.47 billion for Q1 2025, an 8% year-over-year increase, with EPS of $1.72 compared to $1.48 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Revenue Performance by Segment - Mortgage Technology Segment: Revenue of $510 million, slightly below the estimated $512.49 million, representing a 2.2% year-over-year increase [4] - Exchanges Segment (less transaction-based): Revenue of $1.37 billion, exceeding the estimated $1.35 billion, with an 11.8% year-over-year increase [4] - Fixed Income and Data Services Segment: Revenue of $596 million, slightly below the estimated $602.82 million, reflecting a 4.9% year-over-year increase [4] - Exchanges Segment - Data and Connectivity Services: Revenue of $246 million, above the estimated $242.38 million, with a 4.7% year-over-year increase [4] - Exchanges Segment - Energy: Revenue of $557 million, exceeding the estimated $543.91 million, showing a significant 21.9% year-over-year increase [4] - Exchanges Segment - Ags and Metals: Revenue of $64 million, below the estimated $65.19 million, representing an 11.1% year-over-year decrease [4] - Exchanges Segment - Financials: Revenue of $156 million, above the estimated $149.41 million, with a 15.6% year-over-year increase [4] - Exchanges Segment - Cash Equities and Equity Options: Revenue of $119 million, exceeding the estimated $114.55 million, reflecting a 20.2% year-over-year increase [4] - Exchanges Segment - OTC and Other: Revenue of $103 million, slightly below the estimated $104.75 million, with no year-over-year change [4] - Mortgage Technology Segment - Servicing Software: Revenue of $221 million, above the estimated $212.02 million [4] - Exchanges Segment - Listings: Revenue of $122 million, slightly below the estimated $122.55 million, with no year-over-year change [4] - Fixed Income and Data Services Segment - Fixed Income Execution: Revenue of $31 million, slightly below the estimated $31.11 million, reflecting a 19.2% year-over-year increase [4] Stock Performance - ICE shares have returned -1.5% over the past month, compared to the Zacks S&P 500 composite's -0.7% change, with a Zacks Rank 2 (Buy), indicating potential outperformance in the near term [3]

Company Performance - IntercontinentalExchange (ICE) reported quarterly earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.70 per share, and up from $1.48 per share a year ago [1] - The quarterly report reflects an earnings surprise of 1.18%, with the company having surpassed consensus EPS estimates three times over the last four quarters [2] - ICE's revenues for the quarter ended March 2025 were $2.47 billion, surpassing the Zacks Consensus Estimate by 0.49% and up from $2.29 billion year-over-year [3] Market Performance - ICE shares have increased approximately 12.7% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [4] - The current consensus EPS estimate for the upcoming quarter is $1.68 on revenues of $2.46 billion, and for the current fiscal year, it is $6.85 on revenues of $9.9 billion [8] Industry Outlook - The Securities and Exchanges industry, to which ICE belongs, is currently ranked in the top 4% of over 250 Zacks industries, indicating a favorable outlook [9] - CBOE Global, another company in the same industry, is expected to report quarterly earnings of $2.36 per share, reflecting a year-over-year change of +9.8% [10]

Financial Data and Key Metrics Changes - First quarter earnings per share reached $1.72, up 16% year over year, with net revenue increasing by 8% to a record $2,500,000,000 [6][8] - Adjusted operating income rose by 11% year over year to a record $1,500,000,000, while adjusted operating expenses totaled $964,000,000, slightly below guidance [7][8] - The company returned $519,000,000 to shareholders, including $241,000,000 in share repurchases, while reducing leverage to under 3.2 times EBITDA [8] Business Line Data and Key Metrics Changes - **Exchange Segment**: First quarter net revenues reached a record $1,400,000,000, up 12% year over year, with transaction revenues increasing by 16% [9][10] - **Fixed Income and Data Services Segment**: Revenues totaled a record $596,000,000, with transaction revenues growing by 16% and recurring revenues increasing by 5% [11][12] - **Mortgage Technology Segment**: First quarter revenues were $510,000,000, with recurring revenues of $397,000,000, driven by servicing business growth [13][14] Market Data and Key Metrics Changes - Total average daily volumes in global futures markets increased by 23% to a record 10,000,000 lots in Q1, with significant growth in energy and interest rate markets [16][17] - Open interest across markets grew by 8% year over year, indicating strong market health and risk management activity [17][36] - In the energy markets, record trading volumes were achieved, with oil revenues growing by 17% year over year [19][36] Company Strategy and Development Direction - The company is focused on maintaining a balanced mix of transaction and subscription revenues to provide growth while managing risks [34] - ICE aims to leverage its technology and data services to enhance customer experiences and improve operational efficiencies across its platforms [32][34] - The launch of NYSE Texas reflects the company's strategy to stay close to customers and capitalize on regional market opportunities [75][76] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of risk management in the current macroeconomic and geopolitical environment, with increasing demand for their services [16][36] - The company remains optimistic about continued growth in energy trading volumes and interest rate markets, driven by ongoing geopolitical dynamics [37][38] - Management expressed confidence in the strength of their business model and the ability to navigate market uncertainties [14][34] Other Important Information - The company expects adjusted operating expenses for Q2 to be in the range of $980,000,000 to $990,000,000, influenced by currency fluctuations and merit increases [8] - The backlog for new IPOs remains strong, with a variety of companies seeking to raise capital when market volatility decreases [10] Q&A Session Summary Question: Investor interest in the ROCCAT purchase of Mr. Cooper - Management views the acquisition as validation of their strategy, emphasizing their independent and neutral position in the mortgage market [44][46] - They noted that Rocket Cooper represents a small percentage of their revenues, and any potential transition away from ICE would take time [48][49] Question: Updated thoughts on M&A and capital deployment - Management is focused on deleveraging and returning capital through share buybacks, while remaining open to M&A opportunities that provide better ROI [52][55] Question: Dynamics in energy markets and customer hedging needs - Management indicated that the current environment presents new risks for clients, leading to increased demand for their risk management services [60][62] Question: Fixed income data performance and sales cycles - Management noted that while sales cycles for complex products may be lengthening, individual product sales remain stable [85][86]

Financial Data and Key Metrics Changes - First quarter earnings per share reached $1.72, up 16% year over year, with net revenue increasing by 8% to a record $2,500,000,000 [5][6] - Adjusted operating income rose by 11% year over year to a record $1,500,000,000, while adjusted operating expenses totaled $964,000,000, slightly below guidance [6][12] - The company returned $519,000,000 to shareholders, including $241,000,000 in share repurchases, while reducing leverage to under 3.2 times EBITDA [6][12] Business Line Data and Key Metrics Changes - Exchange segment net revenues reached a record $1,400,000,000, up 12% year over year, with transaction revenues increasing by 16% [7][9] - Fixed Income and Data Services segment revenues totaled $596,000,000, with transaction revenues growing by 16% year over year [10][11] - Mortgage technology revenues were $510,000,000, with recurring revenues up year over year, driven by servicing business improvements [12][26] Market Data and Key Metrics Changes - Total average daily volumes in global futures markets increased by 23% to a record 10,000,000 lots in the first quarter [14][15] - Open interest across markets grew by 8% year over year, indicating strong market health and risk management activity [15][35] - In energy markets, record trading volumes were achieved, with oil revenues growing by 17% year over year [16][17] Company Strategy and Development Direction - The company is focused on maintaining a mix of transaction and subscription revenues to provide growth while hedging downside risks [33] - Continued investment in technology and data services is aimed at enhancing customer engagement and operational efficiencies [26][24] - The launch of NYSE Texas reflects the company's strategy to stay close to customers and capitalize on regional market opportunities [78] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of managing risks amid macroeconomic and geopolitical uncertainties, with a focus on energy and interest rate markets [15][36] - The company expects continued strong performance in energy trading volumes and open interest, driven by geopolitical dynamics [36][37] - Management remains optimistic about the mortgage technology segment, anticipating significant revenue contributions from new client implementations [80] Other Important Information - The company signed 20 new Encompass clients in Q1, indicating strong demand for its mortgage technology solutions [46] - The backlog for new IPOs remains strong, with the NYSE raising over $4,000,000,000 in new proceeds in the first quarter [9][10] - The company is exploring M&A opportunities while prioritizing share buybacks as a means of returning capital to shareholders [53][54] Q&A Session Summary Question: Investor interest in the ROCCAT purchase of Mr. Cooper - Management views Rocket's strategy as validation of their own end-to-end platform development, emphasizing their neutral position and client-centric approach [42][44] - The potential transition of business from Flagstar and Cooper is expected to take time, with no immediate impact on 2025 guidance [48] Question: Updated thoughts on M&A and focus areas - Management is focused on deleveraging to enable share buybacks while remaining open to M&A opportunities that provide better ROI than share repurchases [51][54] Question: Dynamics in energy markets and customer hedging needs - Management noted that increased risks in the current environment are driving demand for risk management solutions, with open interest growing alongside trading volumes [58][62] Question: Fixed income data performance and sales cycles - Management indicated that while sales cycles for complex products may lengthen, individual product sales remain stable, with a sequential decline in revenues attributed to fewer one-time sales and market conditions [85][89]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36198 INTERCONTINENTAL EXCHANGE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inc ...

Financial Performance Highlights - ICE achieved record net revenues of $2473 million, an increase of 8% compared to $2290 million in 1Q24[6] - The company reported record adjusted operating income of $1509 million, up 11% from $1360 million in 1Q24[6] - Adjusted diluted EPS reached a record $172, a 16% increase compared to $148 in 1Q24[6] - ICE returned $519 million to shareholders, including $241 million in share repurchases during the quarter[8] Segment Performance - Exchanges segment net revenues totaled $1367 million, a 12% increase from $1223 million in 1Q24, with transaction revenues up 15%[9] - Energy revenues within the Exchanges segment increased by 23% to $557 million compared to $457 million in 1Q24[9, 19] - Fixed Income & Data Services revenues grew by 5% to $596 million, compared to $568 million in 1Q24, with Fixed Income Execution up 16%[12] - Mortgage Technology segment revenues increased by 2% to $510 million, compared to $499 million in 1Q24, with Closing Solutions revenues up 9%[15] Financial Position - The company's leverage ratio ended 1Q25 at approximately 32x[8] - Unrestricted cash stood at $783 million[42] - Total debt amounted to $203 billion[42]

Intercontinental Exchange Reports Strong First Quarter 2025 · Record 1Q25 net revenues of $2.5 billion, +8% y/y Jeffrey C. Sprecher, · 1Q25 GAAP diluted earnings per share (EPS) of $1.38, +4% y/y · 1Q25 adj. diluted EPS of $1.72, +16% y/y · Record 1Q25 operating income of $1.2 billion, +15% y/y; record adj. operating income of $1.5 billion, +11% y/y · 1Q25 operating margin of 49%; adj. operating margin of 61% · Through the first quarter, returned $519 million to stockholders including $241 million in share ...

Core Viewpoint - Intercontinental Exchange Inc. (ICE) is anticipated to show improvements in both revenue and earnings for the first quarter of 2025, with expected revenues of $2.46 billion, reflecting a 7.4% year-over-year growth, and earnings per share estimated at $1.70, indicating a 14.8% increase from the previous year [1][2]. Revenue Estimates - The Zacks Consensus Estimate for ICE's first-quarter revenues is $2.46 billion, which represents a 7.4% growth compared to the same period last year [1]. - The Fixed Income and Data Services segment is projected to generate revenues of $603 million, while an internal estimate suggests $618.9 million [5]. - The Data and Connectivity Services revenues are expected to rebound to between $240 million and $245 million, with the Zacks Consensus Estimate at $1.9 billion [6]. - The Mortgage Technology segment's revenues are estimated at $512 million, with an internal estimate of $541.3 million [7]. Earnings Estimates - The consensus estimate for earnings per share is $1.70, which has increased by 2.4% over the past 30 days [2]. - ICE has an Earnings ESP of +0.51%, indicating a favorable outlook for an earnings beat [3]. Factors Influencing Performance - Strong trends in fixed-income data and analytics, along with growth in other data and network services, are expected to positively impact ICE's first-quarter performance [4]. - The Exchange segment is likely to benefit from a high retention rate of existing customers, new customer additions, and increased trading activity in U.S. equity markets [6]. Expense Projections - Total expenses are expected to rise by 4.5% to $971.6 million due to higher compensation, professional expenses, and technology costs [8]. - GAAP operating expenses are projected to be between $1.22 billion and $1.23 billion, while adjusted operating expenses are estimated to be between $965 million and $975 million [9]. Volume Growth - ICE reported a 23% increase in first-quarter average daily volume (ADV), with Natural Gas ADV up 33% and Energy ADV up 24% year-over-year [10].