What Does the Tradeweb–Kalshi Deal Include? Tradeweb Markets Inc. (Nasdaq: TW) has entered into a strategic partnership with Kalshi and taken a minority stake in the regulated prediction market operator, the companies said. The agreement is designed to expand institutional access to Kalshi’s event-based market data and explore new infrastructure for trading event contracts through Tradeweb’s electronic platform. Tradeweb operates electronic marketplaces across rates, credit, equities, and money markets, fa ...

NEW YORK--(BUSINESS WIRE)--Tradeweb Markets Inc. (Nasdaq: TW), a leading global operator of electronic marketplaces for rates, credit, equities, and money markets, facilitating more than $2.6 trillion in notional value traded on average per day, and Kalshi, the largest regulated prediction market, today announced a strategic partnership. The companies will collaborate with the goal to expand institutional access to Kalshi's prediction market data and analytics and advance market infrastructure. ...

Core Insights - Robinhood Markets (HOOD) and Tradeweb Markets (TW) are transforming electronic trading, with HOOD focusing on retail investors and offering commission-free trading, while TW targets institutional clients with a specialization in fixed-income products [1][2] Company Performance - Both companies reported strong fourth-quarter 2025 earnings, but market reactions diverged, with HOOD shares declining due to weaker crypto activity and concerns over AI disruption, while TW's stock remained stable [2][10] Robinhood's Growth Strategy - Robinhood is expanding rapidly with new product launches and international growth, aiming to become a "financial super app" with features like an AI assistant (Cortex), advanced trading tools (Legend), and a social trading platform [4][5] - The company is also venturing into personal finance and banking services, including a Gold credit card, and is rolling out tokenized U.S. stocks and ETFs in 31 EU/EEA countries [5][6] - HOOD is investing in prediction markets, which are expected to become a billion-dollar business, and has partnered with Susquehanna International Group to acquire a stake in MIAX Derivatives Exchange [6][7] Tradeweb's Strategic Position - Tradeweb is enhancing its leadership in electronic trading through technology innovation and international expansion, with significant investments in automation and AI tools driving growth in fixed-income and derivatives volumes [9][11] - The company has tripled its emerging market revenues since 2023 and captured significant shares in U.S. investment-grade and high-yield electronic trading volumes [11][12] Financial Metrics and Valuation - HOOD's shares have decreased by 40.6% in the past month, while TW's shares have increased by 10%, indicating a divergence in investor sentiment [19] - HOOD is trading at a price-to-tangible book (P/TB) ratio of 8.15X, making it less expensive compared to TW's 8.62X, while HOOD's return on equity (ROE) of 22.32% surpasses TW's 12.05% [23][28] Earnings Estimates - The Zacks Consensus Estimate for HOOD's earnings in 2026 and 2027 suggests growth rates of 21% and 17%, respectively, while TW's estimates indicate increases of 11.5% and 12.4% for the same periods [14][18] Investment Outlook - Despite recent challenges, HOOD is positioned for broader growth with a focus on becoming a comprehensive financial platform, while TW's growth may be more incremental and tied to market cycles [25][28]

Group 1 - The total traded volume on the Tradeweb European-listed ETF marketplace amounted to EUR 86.3 billion [3] - The trading activity reflects a significant engagement in the European ETF market, indicating a robust interest from institutional investors [3] Group 2 - The data is derived from trading activity on the Tradeweb Markets institutional platforms for both European and U.S.-listed ETFs [2]

Core Viewpoint - Tradeweb Markets (TW) has been recognized for its strong execution across various business fronts and enhanced automation capabilities, making it a more attractive platform for clients [1] Group 1: Company Performance - Tradeweb Markets received a buy rating in August 2025, indicating confidence in its operational effectiveness and growth potential [1] - The company's automation capabilities are contributing to a more engaging and "stickier" platform for clients, which may lead to increased customer retention and satisfaction [1] Group 2: Investment Philosophy - The investment approach emphasizes a blend of value investing principles with a focus on long-term growth, aiming to acquire quality companies at a discount to their intrinsic value [1] - The strategy involves holding investments for an extended period to allow for compounding of earnings and shareholder returns [1]

Core Insights - Tradeweb has achieved an organic revenue growth rate of 15% over the past few years, indicating strong performance across various markets and asset classes [1] Company Performance - The CEO expressed confidence in the company's ability to maintain growth rates in the medium term, highlighting the diversified nature of the business as a key factor [1] Investor Engagement - The recent conference was noted for its productive atmosphere, with a mix of familiar and new investors, contributing to a positive outlook for the company [1]

Tradeweb Markets Conference Summary Company Overview - **Company**: Tradeweb Markets (NasdaqGS:TW) - **Event**: 2026 Conference - **Date**: February 10, 2026 Key Industry Insights - **Revenue Growth**: Tradeweb has achieved organic revenue growth at a rate of 15% over the past few years, indicating a diversified business model across various markets and asset classes [2][4] - **Market Environment**: The company is navigating a macroeconomic landscape characterized by fluctuating interest rates and inflation, which is seen as favorable for their business operations [4][5] - **Deregulation Impact**: The ongoing deregulation in the financial sector is positively influencing the trading performance of banks, which in turn benefits Tradeweb due to its strong partnerships with these institutions [5][6] Core Business Strategies - **Focus on Credit**: Tradeweb aims to solidify its position in the credit market, emphasizing its ability to compete effectively in both investment-grade and high-yield segments [14][36] - **International Expansion**: The company is prioritizing growth in emerging markets and international business, particularly in emerging market swaps and credit [15][16] - **Innovation in Rates**: Continued innovation in the rates complex is a key focus, with expectations for more advancements in technology and market structure [16][18] Competitive Landscape - **Interest Rate Swaps**: Tradeweb's largest business, interest rate swaps, is currently only 30% electronic, indicating significant potential for further electronification and market share growth [20][25] - **U.S. Treasuries**: The company is enhancing its government bonds business through algorithmic trading initiatives, aiming to improve efficiency and compete with established players like Bloomberg [31][32] - **Credit Market Dynamics**: The credit market is becoming increasingly competitive, with a focus on RFQ (Request for Quote) trading as a growth area, leveraging strengths from AiEX and smart search technologies [42][44] Pricing and Market Position - **Pricing Strategy**: Tradeweb acknowledges the importance of pricing in maintaining competitiveness, emphasizing the need for innovation rather than simply undercutting competitors [46][48] - **Market Share Maintenance**: The company is committed to retaining its market share and profitability, particularly in light of high profitability levels among partner banks [48][49] Emerging Technologies - **Tokenization and Digital Assets**: Tradeweb is exploring the tokenization of assets and has invested in the Canton Network to enhance settlement structures and improve market efficiency [50][52] - **AI and Automation**: The company is integrating AI into its operations, with a focus on improving efficiency and enhancing its competitive edge through advanced technology [56][57] Partnerships and Competition - **Non-Bank Liquidity Providers**: Firms like Citadel and Jane Street are becoming significant players in fixed income, presenting both competitive challenges and partnership opportunities for Tradeweb [60][61] - **Collaborative Approach**: Tradeweb aims to maintain strong relationships with these firms while navigating the competitive landscape, focusing on collaborative problem-solving [62][63] M&A Strategy - **M&A Outlook**: Tradeweb is open to pursuing M&A opportunities that align with its culture and strategic goals, while also focusing on organic growth within its existing business lines [70][72] This summary encapsulates the key points discussed during the Tradeweb Markets conference, highlighting the company's strategic focus, market dynamics, and future initiatives.

Core Insights - Tradeweb Markets reported revenue of $521.18 million for the quarter ended December 2025, reflecting a year-over-year increase of 12.5% [1] - The earnings per share (EPS) for the quarter was $0.87, up from $0.76 in the same quarter last year, exceeding the consensus EPS estimate of $0.85 by 2.52% [1] Financial Performance - The reported revenue surpassed the Zacks Consensus Estimate of $516.68 million, resulting in a surprise of +0.87% [1] - Tradeweb's stock has returned -5% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] Key Metrics - Average Daily Volumes in Money Markets reached $1,092.11 billion, slightly above the average estimate of $1,089.46 billion [4] - Average Daily Volumes in Rates were $1,673.96 billion, exceeding the average estimate of $1,612.77 billion [4] - Revenue by Asset Class showed significant year-over-year changes, with Credit-Fixed revenue at $17.47 million (+71.4%), Total Variable revenue at $385.77 million (+11.6%), and Other revenue at $12.75 million (+94.4%) [4] - Revenue from Money Markets-Fixed was $4.51 million (+6.6%), while Equities-Fixed revenue was $2.47 million (+8.4%) [4] - Variable revenue from Money Markets was $41.12 million (+2.7%), and Equities-Variable revenue was $29.06 million (+9.8%) [4] - Credit-Variable revenue was reported at $100.94 million, showing a decline of -2.4% compared to the previous year [4]

Financial Data and Key Metrics Changes - Tradeweb achieved record revenues of $521 million in Q4 2025, reflecting a 12.5% year-over-year increase on a reported basis and a 9.9% increase on a constant currency basis [24] - Annual revenue for 2025 reached over $2 billion for the first time, marking a 19% growth compared to the previous year [9][5] - Adjusted EBITDA margin for 2025 was 54%, an increase of 64 basis points compared to 2024 [26] Business Line Data and Key Metrics Changes - Rates business produced record revenue in Q4, driven by organic growth in swaps, global government bonds, and mortgages [8] - Credit growth was led by strong performance in European credit, municipal bonds, and emerging market credit, while U.S. credit revenues fell due to a decline in retail corporate credit [16] - Other revenues surged by over 90% year-over-year, primarily from emerging digital asset initiatives [9] Market Data and Key Metrics Changes - International clients contributed approximately 42% of Q4 revenues, with Asian client revenues growing over 35% and European client revenues increasing over 25% [11][24] - U.S. Treasury revenues increased modestly by 1% year-over-year despite a 27% decline in intraday volatility [12] Company Strategy and Development Direction - The company aims to continue investing in technology and innovation, particularly in digital assets and expanding its market presence [10][33] - Tradeweb is focused on enhancing its electronic trading capabilities and deepening client connectivity across global markets [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing strong issuance activity across various sectors and the potential for increased trading due to AI-driven infrastructure investments [38][39] - The company anticipates continued growth in its international business and a favorable market environment for rates trading [46][49] Other Important Information - The board declared a quarterly dividend of $0.14 per share, a 17% increase year-over-year, and announced a new share repurchase program for up to $500 million [32][33] - Tradeweb's investments in technology over the past five years exceeded $600 million, with a focus on shaping the future of electronic markets [12] Q&A Session Summary Question: Outlook for the market in 2026 and revenue growth in January - Management highlighted a conducive market environment with strong primary activity and AI-driven infrastructure investments leading to a 17% year-over-year revenue growth in January [42][46] Question: Utilization of AI across the Tradeweb platform - Management discussed the integration of AI in enhancing efficiency and effectiveness, focusing on predictive AI models to unlock electronification in less liquid markets [58][61] Question: Outlook for the mortgage trading business - Management indicated a strong outlook for the mortgage business, driven by increasing primary issuance and potential lower rates, with revenues up 15% in January [72][76]

Tradeweb Markets (NasdaqGS:TW) Q4 2025 Earnings call February 05, 2026 09:30 AM ET Company ParticipantsAshley Serrao - Head of Treasury, FP&A, and Investor RelationsBilly Hult - CEOCraig Siegenthaler - Managing Director and North American Head of Diversified FinancialsSara Furber - CFOSimon Clinch - Managing Director and leads Financials ResearchConference Call ParticipantsAlex Kramm - Managing Director and Senior Equity Research AnalystAlexander Blostein - Managing Director and Senior Equity AnalystBradley ...