Core Insights - MarketAxess Holdings Inc. reported first-quarter 2025 earnings per share of $1.87, exceeding the Zacks Consensus Estimate by 2.8%, but down 2.6% year over year from $1.92 [1] - Total revenues decreased by 0.8% year over year to $208.6 million, missing the consensus mark by 1% [1] Financial Performance - Commission revenues were $181.3 million, down 2% year over year, and fell short of the Zacks Consensus Estimate of $185.4 million [3] - Information services revenues increased by 9% year over year to $12.9 million, but missed the consensus mark of $13 million [4] - Post-trade services revenues rose 3% year over year to $11.1 million, also falling short of the consensus mark by 0.4% [4] - Total expenses increased by 2% year over year to $120.2 million, driven by higher employee compensation and benefits, technology, and marketing expenses, but were lower than the estimate of $128.1 million [5] - Operating income declined 4% year over year to $88.4 million, but exceeded the estimate of $87 million [5] - EBITDA fell 1.7% year over year to $107.4 million, with the EBITDA margin deteriorating by 40 basis points to 51.5% [5] Trading Volumes - High-grade trading volume was $461.3 billion, up 1% year over year, surpassing the Zacks Consensus Estimate of $460.7 billion [6] - High-yield trading volume increased by 5% year over year to $90 billion [6] - Other credit trading volume rose 39% year over year to $36.5 billion [7] - Total credit trading volume grew 6% year over year to $976 billion, with total credit average daily volume (ADV) rising 6% to $15.9 billion [8] Balance Sheet and Cash Flow - As of March 31, 2025, cash and cash equivalents were $486.2 million, down from $544.5 million at the end of 2024 [10] - Total assets increased to $1.9 billion from $1.8 billion at the end of 2024 [10] - MarketAxess generated $29.6 million of net cash from operations, improving from a net cash used in operations of $5 million in the prior year [11] - Free cash flow advanced 52.2% year over year to $47.1 million [11] Capital Deployment - The company repurchased shares worth $38.1 million in the quarter, with a total of $51.7 million repurchased by April 2025 [12] - A remaining capacity of $173.4 million is available under the authorized repurchase program as of April 30, 2025 [12] - A quarterly cash dividend of 76 cents per share was declared, payable on June 4, 2025 [12] 2025 Outlook - Services revenues are expected to see mid-single-digit growth [13] - Total expenses are estimated to be between $505 million and $525 million for 2025 [13] - Capital expenditure is projected to be between $65 million and $70 million, with an effective tax rate expected between 26% and 27% [13]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $209 million, compared to $210 million in the prior year, indicating a slight decrease [28] - Commission revenue decreased by 2%, primarily due to lower fees per million and market share in U.S. Credit, partially offset by strong market volumes driven by increased volatility [28][32] - Services revenue increased by 7%, with Information Services revenue rising by 9% to $13 million, driven by new contracts [29] - Operating expenses increased by 2% to $120 million, reflecting cost discipline and lower variable costs [33] - Diluted earnings per share were reported at $0.40, or $1.87 per share excluding notable items [30] Business Line Data and Key Metrics Changes - Record U.S. Credit Average Daily Dollar (ADD) was $9 billion, up 2% [12] - International products saw record ADD of $6 billion, up 11% [12] - Municipal bonds experienced a significant increase in Average Daily Volume (ADV) of 42% [13] - Automation trade volumes reached a record of $110 billion, up 17% [14] - Open Trading ADV hit a record of $5 billion, an increase of 8% [15] Market Data and Key Metrics Changes - U.S. High Grade estimated market share increased to 20% in March, the highest since December 2023 [10] - U.S. High Grade market share was reported at 19.4%, up 120 basis points year-over-year [24] - Total trading ADV grew 68% year-over-year to a record $57 billion, with total credit ADV increasing by 32% to $18 billion [23] Company Strategy and Development Direction - The company is focusing on expanding its algo suite for rates and launching an enhanced Request for Quote (RFQ) solution [8][10] - The strategy includes diversifying product offerings and enhancing technology investments to drive growth in U.S. Credit market share [5][39] - The company plans to roll out a high-touch block trading solution and a new Midex solution to address dealer needs [44][22] Management Comments on Operating Environment and Future Outlook - Management noted that the current market environment is characterized by uncertainty, which is favorable for the business model [42] - There is an expectation of higher levels of volatility in the market, which could drive increased turnover in the bond market [43] - The company is optimistic about the growth opportunities presented by new product releases and the current market conditions [44][46] Other Important Information - The company expects to close the RFQ Hub transaction later in May, which will consolidate RFQ Hub into its financials [37] - The effective tax rate is expected to increase to 41% to 42% due to a new reserve for uncertain tax positions [36] Q&A Session Summary Question: Outlook for increased share gain moving forward - Management indicated that the current market environment is favorable for share gains, with expectations of continued volatility and liquidity needs from clients [42][43] Question: April market behavior and client share - Management observed sustained market velocity and heightened trading activity, even as volatility decreased from peak levels [50][51] Question: Fee capture in high grade - Management explained that increased portfolio trading and dealer-to-dealer business, which have lower capture rates, are impacting overall fee capture [56][60] Question: Strength of portfolio trading solution - Management highlighted enhancements in the portfolio trading solution and positive client feedback, indicating strong demand for analytics and data [66][68] Question: Rollout of X Pro into Europe - Management expressed optimism that the rollout of X Pro would accelerate portfolio trading share, as it has already captured significant market share in the U.S. [111]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $209 million, compared to $210 million in the prior year, indicating a slight decrease [27] - Commission revenue decreased by 2%, largely due to lower fees per million and market share in U.S. Credit, partially offset by strong market volumes [27][30] - Services revenue increased by 7%, driven by a 9% increase in Information Services revenue [28] - Operating expenses increased by 2% to $120 million, reflecting cost discipline and lower variable costs [31] - Diluted earnings per share were reported at $0.40, or $1.87 per share excluding notable items [29] Business Line Data and Key Metrics Changes - U.S. Government bonds saw significant growth, with a single-day trading record of $102 billion on April 9 [5] - Record U.S. Credit Average Daily Dollar volume (ADD) increased by 2% to $9 billion, while international products recorded an 11% increase in ADD to $6 billion [10] - Municipal bonds experienced a 42% increase in Average Daily Volume (ADV) [11] - Automation in trading reached record volumes of $110 billion, up 17% [12] - Open Trading ADV hit a record of $5 billion, an increase of 8% [13] Market Data and Key Metrics Changes - U.S. High grade market share increased to 20% in March, the highest since December 2023 [8] - Total trading ADV grew 68% year over year to a record $57 billion, with total credit ADV up 32% to $18 billion and total rates ADV up 93% to $39 billion [21][22] - U.S. High grade market share was reported at 19.4%, up 120 basis points from the prior year [23] Company Strategy and Development Direction - The company is focusing on expanding its algo suite for rates and launching an enhanced RFQ solution [7] - A new high touch block trading solution is set to launch, aimed at improving client trading experiences [44] - The company is transitioning to a protocol-agnostic model, providing multiple execution protocols to meet diverse client needs [42] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market environment is characterized by uncertainty, which is favorable for the business model [41] - There is an expectation of higher levels of volatility in the market, which could drive increased turnover [41] - The company anticipates continued growth in market share due to new product releases and enhancements [45] Other Important Information - The company expects to close the RFQ Hub transaction later in May, which will consolidate RFQ Hub into its financials [35] - The effective tax rate is expected to increase to 41% to 42% due to a new reserve for uncertain tax positions [34] Q&A Session Summary Question: Outlook for increased share gain moving forward - Management indicated that the current market environment is favorable for share gains, with expectations of higher volatility and liquidity needs from clients [41][42] Question: Insights on April's market behavior - Management observed sustained market velocity and elevated trading volumes, particularly in high yield, despite a decrease in volatility [50] Question: Update on fee capture and its drivers - Management explained that increased portfolio trading and dealer-to-dealer business, while growing, come at a lower capture rate, impacting overall fee capture [56][60] Question: Strength of portfolio trading solutions - Management highlighted enhancements in portfolio trading, including the new X Pro platform, which has seen significant adoption and positive client feedback [68][70] Question: Rollout of X Pro into Europe - Management expressed optimism that the rollout of X Pro in Europe will enhance portfolio trading share, leveraging modern technology and data analytics [110]

Core Insights - MarketAxess reported revenue of $208.58 million for the quarter ended March 2025, a decrease of 0.8% year-over-year, with EPS at $1.87 compared to $1.92 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $210.63 million, resulting in a surprise of -0.97%, while the EPS exceeded the consensus estimate of $1.82 by +2.75% [1] Financial Performance Metrics - Average Variable Transaction Fee Per Million - Credit was $139, below the five-analyst average estimate of $143.75 [4] - Average Daily Volume - Total reached $42.91 billion, surpassing the five-analyst average estimate of $40.74 billion [4] - Average Daily Volume - Total credit trading was $15.92 billion, slightly below the estimated $16.04 billion [4] - Average Daily Volume - Total rates trading was $26.98 billion, exceeding the five-analyst average estimate of $24.70 billion [4] - Revenues from Information services were $12.90 million, slightly below the estimate of $12.99 million, but represented an increase of +8.6% year-over-year [4] - Revenues from Commissions totaled $181.34 million, compared to the average estimate of $185.39 million, reflecting a -1.9% change year-over-year [4] - Revenues from Technology services were $3.24 million, slightly below the estimate of $3.29 million, with a year-over-year increase of +14.4% [4] - Revenues from Post-trade services were $11.09 million, compared to the average estimate of $11.14 million, representing a +3.3% change year-over-year [4] - Total commission revenue from variable transaction fees - Rates was $6.92 million, exceeding the four-analyst average estimate of $6.71 million, with a year-over-year change of +33.9% [4] - Total commission revenue from variable transaction fees - Credit was $135.84 million, below the estimated $139.51 million, reflecting a -4% change year-over-year [4] - Total commission revenue from fixed distribution fees was $33.35 million, slightly above the four-analyst average estimate of $32.36 million, with no change year-over-year [4] Stock Performance - MarketAxess shares returned +11% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Update on our strategy & trading businesses 2 1Q25 highlights¹ | | • | Revenue of $209 million compared to $210 million in the prior year | | --- | --- | --- | | | • | Record commission revenue in emerging markets, up 6%, eurobonds, up 5%, and municipal bonds, up 6% | | FINANCIAL | • | 34% increase in total rates commission revenue | | PERFORMANCE | • | Services2 revenue growth of 7% | | | • | Earnings per share of $0.40; $1.87 excluding notable items3 | | | • $344 | in TTM free cash flow4 million generatio ...

分组1 - MarketAxess reported quarterly earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.82 per share, but down from $1.92 per share a year ago, representing an earnings surprise of 2.75% [1] - The company posted revenues of $208.58 million for the quarter, missing the Zacks Consensus Estimate by 0.97%, and down from $210.32 million year-over-year [2] - Over the last four quarters, MarketAxess has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] 分组2 - The stock has gained approximately 1.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.91 on revenues of $214.96 million, and for the current fiscal year, it is $7.59 on revenues of $870.21 million [7] - The Zacks Industry Rank for Financial - Investment Bank is currently in the bottom 24% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Exhibit 99.1 MarketAxess Reports First Quarter 2025 Financial Results EPS of $0.40; $1.87 Excluding Notable Items 1 Record Total ADV Driven by Record Credit ADV with Record Open Trading ADV of $4.8 billion Record Total Portfolio Trading ADV and Record Levels of Block Trading in Emerging Markets and Eurobonds NEW YORK | May 7, 2025 - MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the first quar ...

Core Viewpoint - MarketAxess Holdings Inc. is expected to report first-quarter 2025 results on May 7, 2025, with earnings estimated at $1.82 per share and revenues of $210.6 million, reflecting a 5.2% decrease in earnings year-over-year but a 0.2% increase in revenues [1][2] Financial Estimates - The Zacks Consensus Estimate for MarketAxess' 2025 revenues is $870.2 million, indicating a year-over-year rise of 6.5%, while the earnings per share estimate is $7.59, suggesting a growth of approximately 4.3% year-over-year [2] - First-quarter earnings estimates have been revised downward over the past 60 days, with the current projection indicating a decrease from the previous year's earnings [1] Earnings Performance History - MarketAxess has a strong track record of exceeding earnings estimates, having beaten the consensus estimate in each of the last four quarters with an average surprise of 2.9% [3] Earnings Prediction Model - The current model does not predict an earnings beat for MarketAxess, as it has an Earnings ESP of -0.41% and a Zacks Rank of 3 (Hold) [4] Trading Volume Insights - Higher trading volumes and market share gains in credit product lines are expected to boost credit commission revenues, with a projected 23.6% year-over-year increase in total trading volume [6] - Solid trading volumes in the international business are anticipated to drive overall commissions, with Eurobonds trading volumes expected to grow by 15.4% year-over-year [7] Commission and Revenue Estimates - The Zacks Consensus Estimate for commissions is $185.4 million, reflecting a 0.3% growth from the prior-year quarter [9] - Information services revenues are estimated at $13 million, indicating a 9.3% rise from the previous year [9] Expense Projections - Total expenses are expected to rise to approximately $128.1 million in the first quarter, marking a nearly 9% year-over-year increase due to higher employee compensation and technology costs [11]

Core Viewpoint - MarketAxess (MKTX) is expected to report quarterly earnings of $1.82 per share, reflecting a year-over-year decline of 5.2%, with revenues projected at $210.63 million, a slight increase of 0.2% from the previous year [1] Earnings Estimates - Analysts have revised the consensus EPS estimate 0.2% higher over the last 30 days, indicating a collective reevaluation of initial estimates [1][2] Revenue Projections - 'Revenues- Information services' are projected to reach $12.99 million, indicating a year-over-year increase of 9.3% [4] - 'Revenues- Commissions' are expected to be $185.39 million, reflecting a 0.3% increase from the year-ago quarter [4] - 'Revenues- Post-trade services' are forecasted at $11.14 million, showing a year-over-year change of 3.8% [4] Commission Revenue - Total commission revenue from variable transaction fees for rates is estimated at $6.71 million, representing a significant year-over-year increase of 29.9% [5] - The estimated 'Average Variable Transaction Fee Per Million - Credit' is $143.75, down from $154.15 in the previous year [5] Trading Volume Estimates - The 'Average Daily Volume - Total' is expected to be $40.74 billion, compared to $32.63 billion from the same quarter last year [6] - 'Average Daily Volume - Total credit trading' is projected at $16.04 billion, up from $14.98 billion year-over-year [6] - 'Average Daily Volume - Total rates trading' is anticipated to reach $24.70 billion, an increase from $17.65 billion in the previous year [7] Emerging Markets and High-Grade Trading - 'Average Daily Volume - Total credit trading - Emerging markets' is estimated at $4.03 billion, compared to $3.63 billion last year [8] - 'Average Daily Volume - Total credit trading - High-grade' is expected to be $7.55 billion, slightly up from $7.48 billion in the same quarter last year [8] Eurobonds Trading Volume - The consensus estimate for 'Average Daily Volume - Total credit trading - Eurobonds' is $2.38 billion, compared to $2.05 billion in the same quarter last year [9] Stock Performance - MarketAxess shares have returned +9.1% over the past month, while the Zacks S&P 500 composite has changed by +11.5% [10]

MarketAxess Holdings Inc. (NASDAQ: MKTX ) has finally reached the long-time coming point of inflection. My conviction on these centers on the long-awaited catalyst of returning market volatility which fuels revenue growth for this leading fixed-income electronic tradingEx-hedge fund analyst with a strong interest in finding winners and losers in industries where corporate strategy matters most. I focus on analysing the market structure, competitive positioning and strategic catalysts that lead to money-maki ...