Group 1 - Total traded volume on the Tradeweb European ETF marketplace reached EUR 60.1 billion [3]

Group 1 - The core thesis for Tradeweb Markets (NASDAQ: TW) is based on a strong revenue growth outlook of approximately 20% supported by multiple growth drivers [1] - The investment approach emphasizes a blend of value investing principles with a focus on long-term growth, aiming to buy quality companies at a discount to their intrinsic value [1] - The conviction in Tradeweb Markets' growth story has increased, indicating a strong belief in the company's long-term potential [1]

Financial Data and Key Metrics Changes - The company achieved record revenues of $513 million, representing a 26.7% year-over-year increase on a reported basis and a 24.7% increase on a constant currency basis [26][28] - Adjusted EBITDA margin increased by 83 basis points to 54.2% compared to the previous year [28] - Free cash flow reached approximately $952 million for the trailing twelve months [35] Business Line Data and Key Metrics Changes - The rates business produced record revenue driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenues increased significantly, with double-digit growth in credit derivatives and municipal bonds [15] - Equities revenue grew by 50% year-over-year, led by the global ETF and equity derivatives business [8] - Money markets revenue growth was supported by the addition of ICD and record quarterly revenues across global repos [8] Market Data and Key Metrics Changes - International business revenue grew by 41% year-over-year, with strong performance in emerging markets (EM) and Asia-Pacific (APAC) [7][21] - U.S. Treasury market share declined to 22% year-over-year, attributed to a shift towards voice-centric trades [12] - Global swaps revenues grew over 45% year-over-year, with international swaps achieving record revenues growing over 55% [21][23] Company Strategy and Development Direction - The company is focused on expanding its electronic trading capabilities and enhancing client engagement through innovative solutions [6][39] - Continued investment in digital assets and emerging markets credit is a strategic priority [20][36] - The company aims to deepen penetration in the U.S. credit market while expanding its international footprint [20][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth for 2025, driven by strong client engagement and market dynamics [5][35] - The company noted that recent market volatility has reinforced the value of electronic trading [24] - Management highlighted the importance of adapting to client needs and enhancing trading workflows [39][55] Other Important Information - The company declared a quarterly dividend of $0.12 per Class A and Class B shares, up 20% year-over-year [35] - Adjusted expenses increased by 24% on a reported basis, reflecting investments in technology and client relationship development [32] Q&A Session Summary Question: Market share trends in U.S. Treasuries - Management acknowledged a decline in market share due to a shift towards voice trading and highlighted efforts to address this through innovative protocols [43][49] Question: Client reaction to new buy-side fees in high yield - Management reported an increase in institutional high yield share post-implementation of buy-side fees, indicating positive client reception [61][64] Question: Progress in cross-selling additional products through ICD - Management noted high client retention and modest revenue growth, with ongoing efforts to expand product offerings and client reach [72][80] Question: Fee per million dynamics in the rates business - Management expressed optimism about maintaining or modestly growing fee per million in swaps, driven by higher-priced products and protocols [84][86] Question: Growth opportunities in international markets - Management highlighted strong growth in international revenue, particularly in Europe and Asia, with a focus on expanding product offerings [96][100] Question: Impact of stablecoins and digital assets on the market - Management is bullish on digital assets and sees stablecoins as potential game changers, exploring tokenized versions based on client demand [107]

Financial Data and Key Metrics Changes - The company achieved record revenues of $513 million, representing a 26.7% year-over-year increase on a reported basis and a 24.7% increase on a constant currency basis [27] - Adjusted EBITDA margin increased by 83 basis points to 54.2% compared to the previous year [29] - Free cash flow reached approximately $952 million for the trailing twelve months [36] Business Line Data and Key Metrics Changes - The rates business produced record revenue driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenues increased significantly, led by global corporate bonds, munis, and credit derivatives [8] - Equities revenue grew by 50% year-over-year, primarily due to the global ETF and equity derivatives business [9] - Money markets revenue growth was supported by the addition of ICD and record quarterly revenues across global repos [8] Market Data and Key Metrics Changes - International business revenue grew by 41% year-over-year, with strong performance in emerging markets (EM) and Asia-Pacific (APAC) [7] - U.S. Treasury market share declined to 22% year-over-year, attributed to a shift towards voice-centric trades [13] - Global swaps revenues increased over 45% year-over-year, with international swaps achieving record revenues growing over 55% [22][24] Company Strategy and Development Direction - The company is focused on expanding its electronic trading capabilities and enhancing client engagement through innovative solutions [6] - Strategic initiatives include investing in digital assets and expanding into emerging markets [21][22] - The company aims to deepen its penetration in U.S. Credit and broaden its liquidity provider network [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth for 2025, despite market volatility and economic challenges [5] - The company anticipates continued strong client engagement and innovation in electronic trading, particularly in fixed income markets [40] - Management highlighted the importance of adapting to market changes and enhancing client workflows to maintain competitive advantage [54] Other Important Information - The company declared a quarterly dividend of $0.12 per Class A and Class B shares, up 20% year-over-year [36] - Adjusted expenses increased by 24% on a reported basis, reflecting investments in technology and client relationship development [33] Q&A Session Summary Question: Market share trends in U.S. Treasuries - Management acknowledged a decline in market share due to a shift towards voice trading and highlighted efforts to address this through innovative protocols [44][50] Question: Client reaction to new buy-side fees in high yield - Management reported an increase in institutional high yield share since the rollout of buy-side fees, indicating positive client reception [59][61] Question: Progress in cross-selling additional products through ICD - Management noted high client retention and modest revenue growth, with ongoing efforts to expand product offerings and client reach [69][72] Question: Fee per million dynamics in the rates business - Management expressed optimism about maintaining or modestly growing fee per million in swaps, driven by higher-priced products and protocols [80][82] Question: Growth opportunities in international markets - Management highlighted strong growth in international revenue, particularly in Europe and Asia, with a focus on expanding product offerings [91][92] Question: Impact of stablecoins and digital assets on the market - Management is bullish on digital assets and sees stablecoins as potential game changers, with ongoing exploration of tokenized products [102][104]

2Q25 EARNINGS CONFERENCE CALL JULY 30, 2025 © 2025 Tradeweb Markets LLC. All rights reserved. 113 112 115 239 178 30 167 101 115 140 214 236 142 204 122 179 179 182 253 212 142 166 140 158 Disclaimers The information in this presentation is current only as of its date and may have changed. We undertake no obligation to update this information in light of new information, future events or otherwise. Basis of Presentation Tradeweb Markets Inc. (unless the context otherwise requires, together with its subsidia ...

(Exact name of registrant as specified in its charter) ___________________________________________ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38860 TRADEWEB MARKETS INC. (State of other jurisdiction ...

[Tradeweb Q2 2025 Earnings Release](index=2&type=section&id=Tradeweb%20Q2%202025%20Earnings%20Release) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) The company reported strong Q2 2025 results with significant growth in revenue, net income, and trading volume Q2 2025 Key Metrics | Metric | Q2 2025 | YoY Change | Constant Currency YoY Change | | :--- | :--- | :--- | :--- | | **Revenues** | $513.0M | +26.7% | +24.7% | | **International Revenues** | $215.2M | +40.8% | +35.8% | | **Average Daily Volume (ADV)** | $2.6T | +32.7% | N/A | | **Net Income** | $175.5M | +28.7% | N/A | | **Adjusted Net Income** | $206.1M | +23.7% | N/A | | **Adjusted EBITDA Margin** | 54.2% | +70 bps | N/A | | **Diluted EPS** | $0.71 | +29.1% | N/A | | **Adjusted Diluted EPS** | $0.87 | +24.3% | N/A | | **Quarterly Cash Dividend** | $0.12/share | +20.0% | N/A | - The company achieved **record quarterly Average Daily Volume (ADV)** in several key areas, including U.S. government bonds, U.S. swaps/swaptions < 1-year, fully electronic U.S. high yield credit, municipal bonds, European ETFs, and global repurchase agreements[2](index=2&type=chunk) [CEO Commentary and Business Update](index=2&type=section&id=CEO%20Commentary%20and%20Business%20Update) The CEO highlighted strong performance, strategic AI and digital asset initiatives, and innovative product launches - The company is actively pursuing strategic initiatives in both traditional markets and the **digital asset space**[4](index=4&type=chunk) - Tradeweb appointed Sherry Marcus as **Head of AI** to advance the company's capabilities in artificial intelligence[4](index=4&type=chunk) - New product innovations were launched, including **direct Treasury bill trading** for corporate treasurers and **electronic portfolio trading** for European government bonds[5](index=5&type=chunk) [Detailed Financial and Operating Performance](index=2&type=section&id=Detailed%20Financial%20and%20Operating%20Performance) Broad-based growth across all asset classes drove strong financial results, though operating expenses also rose [Overall Financial Results Summary](index=2&type=section&id=Overall%20Financial%20Results%20Summary) Q2 2025 results show significant YoY growth in revenue, net income, and adjusted EBITDA margin GAAP Financial Measures | GAAP Financial Measures | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $512,971K | $404,951K | 26.7% | | Net Income | $175,522K | $136,416K | 28.7% | | Diluted EPS | $0.71 | $0.55 | 29.1% | | Net Income Margin | 34.2% | 33.7% | +53 bps | Non-GAAP Financial Measures | Non-GAAP Financial Measures | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $277,896K | $216,533K | 28.3% | | Adjusted EBITDA Margin | 54.2% | 53.5% | +70 bps | | Adjusted Net Income | $206,149K | $166,711K | 23.7% | | Adjusted Diluted EPS | $0.87 | $0.70 | 24.3% | [Segment Performance Analysis](index=3&type=section&id=Segment%20Performance%20Analysis) All business segments, particularly Money Markets and Equities, reported strong double-digit revenue growth - **Rates:** Revenue grew **26.2% to $274.5M**, with ADV up 15.5%, driven by record ADV in U.S. government bonds and swaps/swaptions < 1-year[9](index=9&type=chunk) - **Credit:** Revenue increased **11.7% to $124.3M**, supported by a 16.2% rise in U.S. credit ADV and record fully electronic U.S. high yield credit trading[10](index=10&type=chunk) - **Equities:** Revenue rose **49.8% to $34.3M**, with ADV up 29.6%, driven by strong growth in equity derivatives and record ADV in European ETFs[11](index=11&type=chunk) - **Money Markets:** Revenue surged **130.7% to $41.6M**, and ADV was up 67.5%, primarily driven by the acquisition of ICD and record activity in global repurchase agreements[12](index=12&type=chunk) [Operating Expense Analysis](index=3&type=section&id=Operating%20Expense%20Analysis) Operating expenses increased due to higher performance-based compensation, FX losses, and acquisition-related costs - GAAP Operating Expenses increased **29.1% YoY to $313.1 million**[15](index=15&type=chunk) - Adjusted Expenses increased **24.1% YoY to $252.6 million**[16](index=16&type=chunk) - Key drivers for the expense increase include higher employee compensation, a **$14.6 million rise in foreign exchange losses**, and increased depreciation and amortization from the 2024 acquisition of ICD[15](index=15&type=chunk)[16](index=16&type=chunk) [Recent Business Highlights](index=3&type=section&id=Recent%20Business%20Highlights) The company advanced strategic initiatives in digital assets, AI, and product innovation while earning workplace awards - Co-led a **$135 million strategic fundraising round** for Digital Asset, the company behind the Canton Network blockchain[18](index=18&type=chunk) - Introduced direct U.S. Treasury bill (T-bill) trading for corporate treasurers and electronic portfolio trading for European government bonds[18](index=18&type=chunk) - Appointed Sherry Marcus as **Head of Artificial Intelligence** and collaborated with Novaprime to offer new mortgage risk-hedging solutions[18](index=18&type=chunk) - Recognized with multiple awards, including **'Best Companies to Work For'** by U.S. News & World Report[19](index=19&type=chunk) [Capital Management and Shareholder Returns](index=4&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) The company maintains a strong capital position, grew free cash flow, and increased its quarterly dividend by 20% - Held **$1.6 billion in cash and cash equivalents** with an additional undrawn $500 million credit facility as of June 30, 2025[26](index=26&type=chunk) - Trailing twelve months free cash flow grew **31.9% YoY to $951.7 million**[26](index=26&type=chunk) - The Board declared a quarterly cash dividend of **$0.12 per share, a 20.0% increase YoY**[2](index=2&type=chunk)[26](index=26&type=chunk) - As of June 30, 2025, **$179.9 million remained available** under the share repurchase program, with no shares repurchased during Q2 2025[26](index=26&type=chunk) [Updated Full-Year 2025 Guidance](index=4&type=section&id=Updated%20Full-Year%202025%20Guidance) Full-year 2025 adjusted expense guidance was revised upward to reflect strong momentum and accelerated investments FY 2025 Guidance | FY 2025 Guidance Metric | Updated Guidance | Status | | :--- | :--- | :--- | | **Adjusted Expenses** | $1,000 - $1,050 million | **Revised Up** | | **Acquisition & Refinitiv D&A** | $176 million | Unchanged | | **Assumed non-GAAP tax rate** | ~24.5% - 25.5% | Unchanged | | **CapEx & Capitalized Software** | ~$99 - 109 million | Unchanged | | **LSEG Market Data Contract Revenue** | ~$90 million | Unchanged | - The increase in adjusted expense guidance is due to **strong business momentum** and accelerated investments in future growth initiatives[21](index=21&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The unaudited statements detail financial performance for the three and six months ended June 30, 2025 and 2024 [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) The income statement reflects significant year-over-year growth in revenue, operating income, and net income for Q2 Consolidated Statements of Income | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenue** | $512,971 | $404,951 | | **Total Expenses** | $313,118 | $242,457 | | **Operating Income** | $199,853 | $162,494 | | **Income Before Taxes** | $227,061 | $183,463 | | **Net Income** | $175,522 | $136,416 | | **Net Income Attributable to Tradeweb** | $153,782 | $119,239 | | **Diluted EPS** | $0.71 | $0.55 | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides reconciliations of GAAP to non-GAAP measures to clarify core operating performance [Reconciliation to Adjusted EBITDA and Adjusted EBIT](index=6&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA%20and%20Adjusted%20EBIT) Net income is reconciled to Adjusted EBITDA and Adjusted EBIT, showing strong YoY growth in both non-GAAP metrics Reconciliation of Net Income | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Income** | $175,522 | $136,416 | | Add: Provision for income taxes | $51,539 | $47,047 | | Add: Depreciation and amortization | $63,048 | $49,936 | | Add: Interest expense | $429 | $542 | | Less: Interest income | ($14,972) | ($21,511) | | Other Adjustments | $2,030 | $3,650 | | **Adjusted EBITDA** | **$277,896** | **$216,533** | | **Adjusted EBIT** | **$260,322** | **$201,312** | [Reconciliation to Adjusted Net Income and Adjusted Diluted EPS](index=7&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) Adjusted Net Income and Adjusted Diluted EPS both increased over 23% after accounting for non-core items Reconciliation of Net Income | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Income** | $175,522 | $136,416 | | Pre-tax Adjustments | $37,804 | $38,818 | | **Adjusted Net Income before taxes** | $274,865 | $222,281 | | Adjusted income taxes | ($68,716) | ($55,570) | | **Adjusted Net Income** | **$206,149** | **$166,711** | | **Adjusted Diluted EPS** | **$0.87** | **$0.70** | [Reconciliation of Operating Expenses to Adjusted Expenses](index=9&type=section&id=Reconciliation%20of%20Operating%20Expenses%20to%20Adjusted%20Expenses) GAAP operating expenses were reconciled to Adjusted Expenses by removing acquisition-related costs and FX losses Reconciliation of Operating Expenses | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Operating expenses** | $313,118 | $242,457 | | Less: M&A costs | ($3,772) | ($3,650) | | Less: D&A related to acquisitions | ($45,474) | ($34,715) | | Less: Stock-based comp expense | ($601) | ($531) | | Less: Foreign exchange losses | ($10,622) | $78 | | **Adjusted Expenses** | **$252,649** | **$203,639** | [Reconciliation to Free Cash Flow](index=9&type=section&id=Reconciliation%20to%20Free%20Cash%20Flow) Trailing twelve-month Free Cash Flow increased significantly, driven by higher cash flow from operating activities Reconciliation of Cash Flow | (in thousands) | Trailing Twelve Months Ended June 30, 2025 | Trailing Twelve Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Cash flow from operating activities** | $1,043,551 | $785,734 | | Less: Capitalization of software development | ($55,195) | ($45,208) | | Less: Purchases of furniture, equipment, etc. | ($36,653) | ($18,780) | | **Free Cash Flow** | **$951,703** | **$721,746** | [Supplemental Financial and Operating Data](index=10&type=section&id=Supplemental%20Financial%20and%20Operating%20Data) This section provides a detailed breakdown of revenues, average variable fees, and average daily trading volumes [Revenues by Asset Class](index=10&type=section&id=Revenues%20by%20Asset%20Class) Total revenues were driven by strong growth in both variable fees and fixed fees across all asset classes Q2 2025 Revenues by Type | Q2 2025 Revenues (in thousands) | Variable | Fixed | Total | | :--- | :--- | :--- | :--- | | **Rates** | $204,743 | $69,774 | $274,517 | | **Credit** | $106,956 | $17,339 | $124,295 | | **Equities** | $31,893 | $2,359 | $34,252 | | **Money Markets** | $37,287 | $4,349 | $41,636 | | **Total Revenue** | **$382,863** | **$130,108** | **$512,971** | [Average Variable Fees Per Million](index=11&type=section&id=Average%20Variable%20Fees%20Per%20Million) Average variable fees per million showed strong growth in Rates, Equities, and Money Markets but declined in Credit Average Variable Fees Per Million ($) | ($ per million) | Q2 2025 | Q2 2024 | YoY % Change | | :--- | :--- | :--- | :--- | | **Rates** | $2.29 | $2.00 | 14.2% | | **Credit** | $45.82 | $55.32 | (17.2)% | | **Equities** | $18.68 | $15.38 | 21.4% | | **Money Markets** | $0.52 | $0.35 | 48.6% | | **Total** | **$2.30** | **$2.43** | **(5.4)%** | [Average Daily Volume (ADV)](index=12&type=section&id=Average%20Daily%20Volume%20(ADV)) Total Average Daily Volume grew 32.7% year-over-year, with a significant surge in the Money Markets segment Average Daily Volume by Asset Class | ADV (USD mm) | Q2 2025 | Q2 2024 | YoY % Change | | :--- | :--- | :--- | :--- | | **Rates** | 1,442,925 | 1,249,433 | 15.5% | | **Credit** | 37,740 | 29,717 | 27.0% | | **Equities** | 27,543 | 21,257 | 29.6% | | **Money Markets** | 1,041,814 | 621,840 | 67.5% | | **Total** | **2,550,022** | **1,922,247** | **32.7%** | [Disclosures and Definitions](index=13&type=section&id=Disclosures%20and%20Definitions) This section provides the basis of presentation, forward-looking statement disclaimers, and non-GAAP definitions - The report contains **forward-looking statements** subject to risks and uncertainties, and readers are cautioned not to place undue reliance on them[59](index=59&type=chunk)[60](index=60&type=chunk) - The report includes **non-GAAP financial measures** (e.g., Adjusted EBITDA, Adjusted Net Income, Free Cash Flow) which management believes assist in comparing operating performance on a consistent basis by excluding items not indicative of core performance[61](index=61&type=chunk) - **Constant currency changes** are presented to evaluate underlying performance between periods by removing the impact of foreign currency fluctuations[66](index=66&type=chunk)

Core Insights - Tradeweb Markets (TW) is expected to report quarterly earnings of $0.86 per share, reflecting a 22.9% increase year over year, with revenues projected at $510.25 million, a 26% year-over-year increase [1] - Analysts have revised the consensus EPS estimate 0.8% higher in the last 30 days, indicating a collective reevaluation of initial estimates [1][2] Revenue Estimates - Revenue by Asset Class - Rates - Variable is estimated to reach $201.01 million, a 27.5% year-over-year increase [4] - Total Variable Revenue is projected at $378.06 million, indicating a 28.2% increase year over year [4] - Revenue by Asset Class - Money Markets - Fixed is expected to be $4.35 million, showing a slight increase of 0.1% from the prior year [5] - Revenue by Asset Class - Rates - Fixed is estimated at $68.69 million, reflecting a 14.7% increase from the previous year [5] Average Daily Volumes - Total Average Daily Volumes are projected at $2535.85 billion, up from $1922.27 billion year over year [6] - Average Daily Volumes - Rates are expected to reach $1434.28 billion, compared to $1249.47 billion in the same quarter last year [6] - Average Daily Volumes - Money Markets are estimated at $1035.52 billion, significantly up from $621.84 billion year over year [7] - Average Daily Volumes - Equities are projected at $26.49 billion, an increase from $21.26 billion in the previous year [7] - Average Daily Volumes - Credit is expected to reach $39.56 billion, up from $29.71 billion year over year [8] Variable Fees - Average variable fees per million dollars of volume - Equities are projected to be $18.10, compared to $15.39 in the previous year [8] - Average variable fees per million dollars of volume - Credit are expected to be $43.87, down from $55.33 in the same quarter last year [9] Market Performance - Tradeweb shares have shown a return of -4.1% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [9]

Core Viewpoint - Tradeweb Markets (TW) is well-positioned to continue its earnings-beat streak in the upcoming report, supported by a history of exceeding earnings estimates and a positive earnings outlook [1][5]. Earnings Performance - In the last reported quarter, Tradeweb achieved earnings of $0.86 per share, surpassing the Zacks Consensus Estimate of $0.85 per share, resulting in a surprise of 1.18% [2]. - In the previous quarter, the company was expected to report earnings of $0.74 per share but delivered $0.76 per share, yielding a surprise of 2.70% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Tradeweb, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for Tradeweb is +0.24%, reflecting increased analyst optimism regarding its near-term earnings potential [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of a positive surprise, with historical data indicating that nearly 70% of stocks with this combination beat consensus estimates [6][8].

Company Overview - Tradeweb Markets Inc. operates in a critical financial infrastructure sector and holds over 20% market share in an oligopolistic industry characterized by low disruption risk [1] Investment Strategy - Triba Research aims to identify high-quality businesses capable of delivering sustainable, double-digit returns over the long term, focusing on companies with strong competitive advantages, low debt levels, and effective management teams [2]