Core Insights - MarketAxess Holdings Inc. is a significant player in the electronic trading platform sector, focusing on fixed-income securities and known for its innovative trading approach [1] Financial Performance - On February 6, 2026, MarketAxess reported an earnings per share (EPS) of $2.52, surpassing the estimated EPS of $1.65, indicating strong performance [2] - The actual revenue reported was $209.4 million, slightly below the estimated $211.7 million, reflecting a minor revenue miss [2] - In the previous quarter, the company achieved an EPS of $1.68, exceeding the Zacks Consensus Estimate of $1.66, but showed a decline from the $1.73 EPS reported in the same quarter the previous year [3] Valuation Metrics - MarketAxess has a price-to-earnings (P/E) ratio of 27.55, indicating that investors are willing to pay a premium for its earnings [4] - The price-to-sales ratio stands at 7.27, and the enterprise value to sales ratio is 6.79, reflecting a strong market valuation relative to revenue and sales [4] Financial Health - The company maintains a low debt-to-equity ratio of 0.05, indicating minimal reliance on debt [5] - A current ratio of 2.50 suggests that MarketAxess is well-positioned to meet its short-term liabilities [5] - The earnings yield is reported at 3.63%, demonstrating robust financial standing and potential for shareholder returns [5]

We have returned a total of $474 million to investors, through $360 million of share repurchases, and $114 million in dividends. In addition to establishing our three-year plan, we announced an enhanced capital return plan of $400 million, including a $300 million ASR. We just completed the ASR earlier this week with the final delivery of 360,000 shares. Through the completion of the ASR, we have now retired 1.7 million shares to date. In summary, I'm encouraged by the significant product deliveries that we ...

MarketAxess (NasdaqGS:MKTX) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsChris Concannon - CEOIlene Fiszel Bieler - CFOStephen Davidson - Head of Investor RelationsConference Call ParticipantsAlex Blostein - Managing Director & Senior Equity Research Analyst, Financial ServicesChris O’Brien - for Ben Budish, Director & Senior Equity Research AnalystDan Fannon - Managing Director & Senior Research AnalystEli Abboud - Equity Research AnalystJeff Schmitt - Senior Equity Research Anal ...

MarketAxess (NasdaqGS:MKTX) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsChris Concannon - CEOIlene Fiszel Bieler - CFOStephen Davidson - Head of Investor RelationsConference Call ParticipantsAlex Blostein - Managing Director & Senior Equity Research Analyst, Financial ServicesChris O’Brien - for Ben Budish, Director & Senior Equity Research AnalystDan Fannon - Managing Director & Senior Research AnalystEli Abboud - Equity Research AnalystJeff Schmitt - Senior Equity Research Anal ...

Financial Data and Key Metrics Changes - In 2025, the company generated record revenue of $846 million, reflecting a strong 10% growth in product areas outside US credit [5] - Record total revenue was supported by record total ADV, leading to record commission revenue and services revenue, resulting in annual free cash flow generation of $347 million [5][19] - The company reported a 3.5% revenue growth to $209 million in Q4 2025, with diluted earnings per share of $2.51 [16] Business Line Data and Key Metrics Changes - Block trading ADV increased by 29% in 2025, with record block trading ADV in emerging markets [5] - U.S. credit portfolio trading market share increased by 270 basis points in 2025, with a 126% increase in total portfolio trading ADV in January 2026 [11] - Dealer-initiated ADV grew by 33% for the year, with over $3 billion in trading volume in the new MIDX protocol [11] Market Data and Key Metrics Changes - In January 2026, total credit ADV reached record levels, driven by a 50% increase in emerging markets [7] - U.S. high-grade turnover increased by 95% in January, marking levels not seen since 2011 [7] - The company’s estimated market share in U.S. high-yield portfolio trading increased significantly in the second half of 2025 [13] Company Strategy and Development Direction - The company aims to enhance its market access advantage through investments in technology and product development, focusing on multi-protocol solutions [4] - A clear three-year plan has been established to achieve growth targets, with a focus on executing new initiatives in 2026 [5] - The company is addressing U.S. credit market share challenges with a detailed plan embedded in its three-year targets [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to higher levels of revenue growth in U.S. credit, supported by ongoing investments and strategic initiatives [23] - The company is optimistic about capturing expanding e-trading opportunities, particularly in the block market [15] - Management noted that while electronification in U.S. credit has plateaued, there remains significant growth potential in emerging markets [70] Other Important Information - The company returned a total of $474 million to investors through share repurchases and dividends in 2025 [19] - The board of directors welcomed two new members with extensive fintech experience [8] - The company plans to invest $65 million to $75 million in capital expenditures for technology enhancements in 2026 [22] Q&A Session Summary Question: Strength in block trading - Management highlighted a 24% increase in block trading in 2025 and a 56% increase in January 2026, driven by various protocols and increased liquidity [25][26] Question: Average fee rate in credit - Management discussed the impact of protocol mix and market conditions on fee per million, emphasizing the importance of growing incremental revenue despite lower fees [34][35] Question: Update on emerging markets - Management noted significant growth in emerging markets, with a record ADV of over $5 billion in January 2026, and highlighted the low electronic penetration as a major opportunity [46][47] Question: Capital return strategy - Management confirmed ongoing capital return plans, including share repurchases and increased dividends, while also focusing on debt repayment [61][62] Question: Electronification slowdown in U.S. credit - Management expressed confidence in the potential for re-acceleration in electronification, particularly in the block market, and discussed ongoing investments in technology [66][70] Question: Artificial intelligence ambitions - Management outlined plans to leverage AI for increased productivity and transparency in trading, emphasizing the growing dataset as a key asset [80][82]

MarketAxess (MKTX) reported $209.41 million in revenue for the quarter ended December 2025, representing a year-over-year increase of 3.5%. EPS of $1.68 for the same period compares to $1.73 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $212.7 million, representing a surprise of -1.55%. The company delivered an EPS surprise of +1.45%, with the consensus EPS estimate being $1.66.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

4Q & FY 2025 Earnings Conference Call February 6, 2026 Update on our strategy & business | • Record revenue of $846 million; | 10% growth in revenue outside U.S. credit | | --- | --- | | • Record total ADV, record commission revenue and record services revenue2 FINANCIAL | | | PERFORMANCE • $6.64 earnings per share; $7.39 per share, or 2% increase, excluding notable items3 | | | • Record $347 million in free cash flow4 generation • 10% increase in total credit ADV, 16% growth in credit ADV outside U.S. cred ...

Core Viewpoint - MarketAxess reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.66 per share, but down from $1.73 per share a year ago, indicating an earnings surprise of +1.45% [1] Financial Performance - The company posted revenues of $209.41 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.55%, compared to $202.4 million in the same quarter last year [2] - Over the last four quarters, MarketAxess has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - MarketAxess shares have declined approximately 10.2% since the beginning of the year, while the S&P 500 has only decreased by 0.7% [3] - The current Zacks Rank for MarketAxess is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $229.07 million, and for the current fiscal year, it is $8.08 on revenues of $914.6 million [7] - The estimate revisions trend for MarketAxess was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Financial - Investment Bank industry, to which MarketAxess belongs, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - The performance of MarketAxess may be influenced by the overall industry outlook [8]

Revenue and Trading Performance - Record total revenue of $846 million in 2025, a 4% increase year-over-year, with a 10% increase in revenue outside U.S. credit products[1][6][8] - Block trading average daily volume (ADV) increased by 24% to a record $5 billion in 2025[1][6][9] - Portfolio trading ADV rose by 48% to a record $1.4 billion, with U.S. credit portfolio trading ADV increasing by 43%[1][6][9] - Dealer-initiated ADV increased by 33% to $1.7 billion, including a 29% increase in dealer request for quote (RFQ) ADV[1][6][9] - Total revenues for Q4 2025 reached $209.40 million, a 4% increase from $202.40 million in Q4 2024[34] - Commission revenue for Q4 2025 was $181.33 million, up 4% from $174.76 million in Q4 2024[35] - Total trading volume for Q4 2025 was $2,355.10 million, a decrease of 8% compared to $2,549.92 million in Q4 2024[36] - Average daily trading volume (ADV) for credit in Q4 2025 was 15,381 million, an increase of 11% from 13,883 million in Q4 2024[36] Expenses and Income - Total expenses for 2025 were $504 million, a 6% increase year-over-year, including $4.5 million from foreign currency fluctuations[1][9][21] - Total expenses for Q4 2025 were $133.39 million, an increase of 9% from $122.42 million in Q4 2024[34] - Other income decreased to $3.8 million from $4.6 million due to lower interest income and higher interest expense[24] - Net income for Q4 2025 was $92.39 million, compared to $65.14 million in Q4 2024, reflecting a significant increase[34] - Full year net income for FY 2025 was $246,912 thousand, a decrease of 9.9% compared to $274,181 thousand in FY 2024[39] - The company reported a 28% increase in total other income for the year, reaching $25.16 million compared to $19.68 million in 2024[34] Earnings and Shareholder Returns - Diluted earnings per share (EPS) for 2025 was $6.64, down 9% from the previous year[1][9][8] - The company declared cash dividends of $3.04 per common share for the year, up from $2.96 in the previous year[34] - The Board authorized a share repurchase of up to $400.0 million, with $300.0 million executed through an ASR agreement, resulting in the repurchase of 1,980,715 shares at a cost of $360.0 million for the full year 2025[24] - A quarterly cash dividend of $0.78 per share was declared, payable on March 4, 2026[24] Tax and Financial Metrics - The effective tax rate for 2025 was 15.8%, with an effective tax rate of 23.4% excluding notable items[1][8][21] - The effective tax rate was (15.8%), down from 23.0% in the prior year, with a notable items-adjusted rate of 23.4%[24] - The effective tax rate for FY 2025 was 32.7%, compared to 24.0% in FY 2024, indicating an increase in the tax burden[39] - The effective tax rate for 2026 is expected to be between 24.0% and 26.0%[28] Assets and Liabilities - Cash and cash equivalents totaled $678.9 million as of December 31, 2025, down from $698.6 million a year earlier, with $220.0 million in borrowings outstanding[24] - Total assets increased to $1,808,606 thousand as of December 31, 2025, compared to $1,789,216 thousand in 2024, reflecting a growth of 1.1%[38] - Total liabilities rose significantly to $650,347 thousand in 2025 from $400,556 thousand in 2024, marking a 62.2% increase[38] - Operating lease liabilities decreased to $64,938 thousand in 2025 from $72,654 thousand in 2024, a reduction of 10.4%[38] - Goodwill increased to $283,667 thousand in 2025 from $236,706 thousand in 2024, representing a growth of 19.8%[38] Future Projections - Services revenue is expected to grow in the mid-single digits percentage range for the full year 2026[28] - Total expenses, excluding notable items, are projected to be between $530.0 million and $545.0 million, indicating an 8% increase based on the midpoint[28] - Capital expenditures for new protocols and trading platform enhancements are anticipated to be in the range of $65.0 million to $75.0 million[28] Non-GAAP Measures - The Company utilizes non-GAAP financial measures, including EBITDA and free cash flow, to provide additional insights into its operating results[26] - EBITDA for Q4 2025 was $94,908 thousand, while FY 2025 EBITDA totaled $420,784 thousand, indicating a year-over-year increase from $409,925 thousand in FY 2024[40] - Free cash flow for Q4 2025 was $75,056 thousand, with a full year total of $346,884 thousand, compared to $328,183 thousand in FY 2024, showing a growth of 5.2%[42]

NEW YORK--(BUSINESS WIRE)--MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the fourth quarter and full year ended December 31, 2025. 4Q25 select financial and operational highlights* Total revenues of $209.4 million increased 3.5%, and included an increase of approximately $1.6 million from the impact of foreign currency fluctuations. Strong progress with our new initiatives across. ...