Electronic bond trading platform MarketAxess (NASDAQ:MKTX) reported Q3 CY2025 results exceeding the market’s revenue expectations , with sales up 1% year on year to $208.8 million. Its non-GAAP profit of $1.84 per share was 8.1% above analysts’ consensus estimates. Is now the time to buy MKTX? Find out in our full research report (it’s free for active Edge members). MarketAxess (MKTX) Q3 CY2025 Highlights: Revenue: $208.8 million vs analyst estimates of $207.4 million (1% year-on-year growth, 0.7% beat ...

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 September 30, 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 001-34091 MARKETAXESS HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 52-2230784 (State or other j ...

Core Insights - MarketAxess Holdings Inc. reported Q3 2025 earnings per share of $1.84, exceeding the Zacks Consensus Estimate by 8.9%, but down from $1.90 a year ago [1][9] - Total revenues increased by 1% year over year to $208.8 million, also beating the consensus mark by 1.2% [1][9] Revenue Breakdown - Commission revenues were $180.2 million, slightly down from $180.4 million in the prior-year quarter, but above the Zacks Consensus Estimate by 0.9% [3] - Information services revenues rose 6% year over year to $13.8 million, beating the consensus mark by 2.7% [3] - Post-trade services revenues increased by 9% year over year to $11.3 million, while technology services revenues surged 20% year over year to $3.6 million [3] Expense Analysis - Total expenses rose 3% year over year to $123.2 million, driven by higher employee compensation, technology, communication, and consulting fees [4] - The total expenses were lower than the estimate of $126.4 million [4] Trading Volume Insights - High-grade trading volume was $419.7 billion, down 7% year over year, missing the Zacks Consensus Estimate by 3.7% [5] - High-yield trading volume increased by 5% year over year to $86.2 billion, with average daily volume (ADV) also rising by 5% to $1.7 billion [6] - Emerging markets trading volume rose 14% year over year to $243.4 billion, with ADV also increasing by 14% to $3.8 billion [6] Financial Position - As of September 30, 2025, MarketAxess had cash and cash equivalents of $473.3 million, down from $544.5 million at the end of 2024 [8] - Total assets increased to $2 billion from $1.8 billion at the end of 2024 [8] Cash Flow and Capital Deployment - Net cash from operations was $90.2 million, down from $95.1 million a year ago, while free cash flow increased to $111.8 million from $86.3 million [10] - The company repurchased shares worth $45.3 million in the quarter, with a total of $120 million repurchased year-to-date [11] 2025 Outlook - Service revenues are expected to see mid-single-digit growth, with total expenses projected between $505 million and $525 million for 2025 [12]

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MarketAxess (NasdaqGS:MKTX) Q3 2025 Earnings Call November 07, 2025 11:00 AM ET Company ParticipantsChris Concannon - CEOChris Allen - Managing DirectorRit Roy - Senior Equity Research AssociatePatrick O’Shaughnessy - Managing DirectorChris O'Brien - Equity Research AVP - Brokers, Exchange, and Asset ManagersIlene Fiszel Bieler - CFOStephen Davidson - Head of Investor RelationsSimon Clinch - Managing Director of Financials ResearchConference Call ParticipantsAlex Kramm - Managing Director and Senior Equity ...

MarketAxess (NasdaqGS:MKTX) Q3 2025 Earnings Call November 07, 2025 11:00 AM ET Company ParticipantsChris Concannon - CEOChris Allen - Managing DirectorRit Roy - Senior Equity Research AssociatePatrick O’Shaughnessy - Managing DirectorChris O'Brien - Equity Research AVP - Brokers, Exchange, and Asset ManagersIlene Fiszel Bieler - CFOStephen Davidson - Head of Investor RelationsSimon Clinch - Managing Director of Financials ResearchConference Call ParticipantsAlex Kramm - Managing Director and Senior Equity ...

Financial Data and Key Metrics Changes - Revenue for the third quarter was $209 million, reflecting a slight increase from the prior year, with a 1% growth overall [16] - Total commission revenue remained flat compared to the prior year, while services revenue increased by 9% to a record $29 million [16][17] - The effective tax rate rose to 27.1%, up from 23% in the prior year, due to increased accrual for uncertain tax positions [17] Business Line Data and Key Metrics Changes - U.S. credit commission revenue decreased by 2% to $165 million, with strong growth in emerging markets (11%) and Eurobonds (9%) offsetting declines in U.S. high-grade (9%) and flat growth in U.S. high-yield [18] - Block trading ADV across U.S. credit, emerging markets, and Eurobonds increased by 23% year-to-date, with cumulative block trading volume reaching approximately $12 billion [11] - Portfolio trading ADV year-to-date is running 50% above the prior year, with U.S. credit portfolio trading market share over 18%, up 210 basis points [11] Market Data and Key Metrics Changes - 36% of global credit trading volume is now driven by clients outside of North America, up from 29% in 2020 [9] - In October, U.S. high-yield ADV growth was strong at 9%, despite a tough comparison to the prior year due to heightened activity before the U.S. presidential election [8] - The average size of non-block trades is decreasing, while the average block size is increasing, with blocks greater than or equal to $5 million representing approximately 45% of trade volume in U.S. high-grade [12] Company Strategy and Development Direction - The company is focused on providing a protocol-agnostic platform that utilizes data and analytics to assist clients in choosing the appropriate trading protocol [4][5] - Investments are being made in technology transformation, portfolio trading, dealer-to-dealer business, and automation tools to enhance competitive positioning [27][28] - The introduction of closing auctions to the fixed income market is aimed at providing an end-of-day liquidity solution and improving market organization [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by limited volatility and tight spreads, impacting revenue growth in U.S. credit [5][15] - There is optimism regarding the potential for higher revenue growth in the coming quarters due to ongoing investments and technology enhancements [16][21] - The current market environment is showing signs of increased volatility, which could enhance the attractiveness of the company's all-to-all liquidity solutions [45][46] Other Important Information - The company generated $385 million in free cash flow over the trailing 12 months and repurchased 595,000 shares year-to-date for a total of $120 million [20] - Total operating expenses increased by only 3%, driven by higher employee compensation and technology costs, while headcount rose by 2% [19] Q&A Session Summary Question: Can you talk about the pipeline to add additional dealers for MIDEX and how it's interacting with portfolio trading? - The MIDEX solution is seeing good early volumes, and plans are in place to increase the number of sessions to enhance dealer participation [24][25] Question: What actions are being taken to deliver faster technology enhancements and address competition? - The company is investing in multiple technology areas to address competitive dynamics and enhance overall service offerings [27][28] Question: Can you provide insights on the closing auctions and their potential impact on market share? - The closing auction is designed to support the growing indexation of the fixed income market, with significant partnerships established to enhance liquidity [33][34] Question: How does the company plan to grow in a low-volatility environment? - The strategy includes focusing on portfolio trading and dealer-to-dealer initiatives, which are expected to perform well even in low-volatility conditions [50][51] Question: What are the expectations for the block trading market and its growth? - The block market is seen as a significant opportunity, with recent growth rates indicating positive momentum, particularly in U.S. investment-grade [41][42]

3Q25 Earnings Conference Call November 7, 2025 2 3Q25 highlights¹ | | • | 1% increase in revenue to $209 million; 10% growth in revenue outside U.S. credit | | --- | --- | --- | | FINANCIAL PERFORMANCE | • | 9% increase in services revenue2 to a record $29 million | | | • | 3% decline in earnings per share to $1.84 | | | • | $385 million in TTM free cash flow3 generation | | | • | 14% increase in ADV across credit products (ex. U.S. credit) | | | • | Solid progress with our new initiatives across our three ...

MarketAxess (MKTX) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.69 per share. This compares to earnings of $1.9 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +8.88%. A quarter ago, it was expected that this operator of bond trading platforms would post earnings of $1.94 per share when it actually produced earnings of $2, delivering a surprise of +3.09%.Over the last four qua ...

Financial Performance - Total revenues for Q3 2025 were $208.8 million, a 1% increase year-over-year, including approximately $3.5 million from RFQ-hub and a $1.3 million increase from foreign currency fluctuations[10]. - Net income for Q3 2025 was $68 million, a 4% decrease from the previous quarter and a 4% decrease year-over-year[7]. - Diluted earnings per share (EPS) for Q3 2025 was $1.84, down 3% compared to Q3 2024[8]. - Record services revenue reached $28.7 million, a 9% increase year-over-year[15]. - Total revenues for Q3 2025 reached $208.82 million, a slight increase of 1% compared to $206.71 million in Q3 2024[30]. - Commission revenue for Q3 2025 was $180.17 million, showing a marginal decrease of less than 1% from $180.39 million in Q3 2024[31]. - Operating income for Q3 2025 was $85.58 million, a decrease of 2% from $87.06 million in Q3 2024[30]. - Net income available for common stockholders in Q3 2025 was $68.18 million, down 5% from $71.49 million in Q3 2024[30]. - EBITDA for Q3 2025 was $107,622 thousand, compared to $105,018 thousand in Q3 2024, reflecting a slight increase[36]. Expenses and Costs - Total expenses for Q3 2025 were $123.2 million, a 3% increase from the prior year, including $2.9 million in RFQ-hub expenses[19]. - Total credit commission revenue decreased by $3.5 million, or 2%, compared to the prior year, driven by a 7% decrease in U.S. credit commission revenue[12]. - Employee compensation and benefits expenses increased by 3% to $59.98 million in Q3 2025, compared to $58.43 million in Q3 2024[30]. - The company reported a provision for income taxes of $25.37 million in Q3 2025, an increase of 18% from $21.41 million in Q3 2024[30]. - The effective tax rate increased to 27.1% from 23.0% in the prior year, primarily due to increased accruals for uncertain tax positions[22]. Trading and Volume - U.S. credit portfolio trading average daily volume (ADV) increased 43% year-to-date compared to full-year 2024, with market share rising approximately 210 basis points[5]. - Block trading ADV in U.S. credit is 19% above full-year 2024 levels, with a 10% growth in the client-initiated channel[5]. - Total trading volume for Q3 2025 was $2,488,457 million, a decrease of 4% compared to Q3 2024's $2,595,888 million[32]. - Total credit trading volume increased by 3% in Q3 2025 to $932,426 million from $905,290 million in Q3 2024[32]. - U.S. government bonds trading volume decreased by 9% in Q3 2025 to $1,480,317 million compared to $1,619,337 million in Q3 2024[32]. - High-yield credit trading volume increased by 5% in Q3 2025 to $86,228 million from $81,761 million in Q3 2024[32]. Shareholder Actions - The company repurchased 239,026 shares at a cost of $45.3 million during Q3 2025, with a total of $105 million remaining under the share repurchase authorization[22]. - Cash dividends declared per common share increased to $0.76 in Q3 2025, up from $0.74 in Q3 2024[30]. Assets and Liabilities - Total assets as of September 30, 2025, were $2,013,908 thousand, an increase from $1,789,216 thousand as of December 31, 2024[34]. - Total liabilities increased to $623,725 thousand as of September 30, 2025, from $400,556 thousand as of December 31, 2024[34]. - Total stockholders' equity as of September 30, 2025, was $1,378,450 thousand, a slight decrease from $1,388,660 thousand as of December 31, 2024[34]. Cash Flow - Net cash provided by operating activities for Q3 2025 was $90,164,000, a decrease from $103,714,000 in Q2 2025 and $95,089,000 in Q3 2024[38]. - Free cash flow for Q3 2025 was $111,776,000, slightly down from $112,985,000 in Q2 2025 but up from $86,285,000 in Q3 2024[38]. - Year-to-date (YTD) free cash flow for 2025 reached $271,828,000, compared to $214,816,000 in YTD 2024, indicating a 26.5% increase[38]. Other Financial Metrics - The average variable transaction fee per million for credit decreased by 6% to $140 in Q3 2025, compared to $149 in Q3 2024[31]. - The net change in trading investments for Q3 2025 was $264,000, contrasting with a negative change of $(66,000) in Q2 2025[38]. - The net change in fail-to deliver/receive from broker-dealers, clearing organizations, and customers was $34,338,000 in Q3 2025, up from $22,053,000 in Q2 2025[38]. - Purchases of furniture, equipment, and leasehold improvements totaled $(1,496,000) in Q3 2025, compared to $(1,206,000) in Q2 2025[38]. - Capitalization of software development costs was $(11,494,000) in Q3 2025, consistent with $(11,510,000) in Q2 2025[38].