Cboe(US:CBOE)2025-08-01 11:30Financial Performance - Cboe reported record quarterly net revenue of $587.3 million, up 14% year-over-year, and diluted EPS of $2.23, an increase of 68% compared to the same period in 2024[3][4]. - Adjusted diluted EPS for the quarter was $2.46, reflecting a 14% increase year-over-year, with year-to-date growth of 15%[3][4]. - Total revenues for Q2 2025 reached $1,173.5 million, a 20.5% increase from $974.0 million in Q2 2024[36]. - Net income for Q2 2025 was $235.1 million, up 67.6% from $140.4 million in Q2 2024, resulting in a diluted earnings per share of $2.23[36]. - Adjusted diluted earnings per share for Q2 2025 was $2.46, compared to $2.15 in Q2 2024, reflecting a 14.5% growth[45]. - Adjusted operating income for the first half of 2025 reached $746.8 million, a 19.5% increase from $624.9 million in the same period of 2024[45]. - Operating income for Q2 2025 was $339.1 million, a 61.4% increase from $210.1 million in Q2 2024[36]. - Adjusted Operating EBITDA for the first half of 2025 reached $771.4 million, compared to $646.6 million in the same period of 2024, reflecting a 19.3% growth[49]. Revenue Growth - Derivatives net revenue grew 17%, driven by robust volumes in the options business, while Data Vantage and Cash and Spot Markets both saw 11% net revenue growth[3][4]. - Options net revenue reached $364.8 million, a 19% increase, with a 20% rise in total options average daily volume (ADV) compared to the second quarter of 2024[10]. - Record Europe and APAC net revenue of $70.4 million increased by 30%, with European Equities ADNV traded on Cboe increasing by 43% year-over-year[10]. - Europe and Asia Pacific net revenues for Q2 2025 were $70.4 million, up from $54.3 million in Q2 2024, marking a 29.6% increase[51]. Guidance and Projections - Cboe increased its organic total net revenue growth guidance for 2025 to high single digits, reaffirming the Data Vantage organic net revenue growth target of mid to high single digits[4]. - The company decreased its 2025 adjusted operating expense guidance to a range of $832 million to $847 million, down from $837 million to $852 million[4]. - Organic total net revenue growth is expected to be in the high single-digit range in 2025, an increase from previous guidance of mid to high single digits[16]. - Adjusted operating expenses are projected to be between $832 million and $847 million in 2025, down from previous guidance of $837 million to $852 million[16]. - Capital expenditures in 2025 are expected to be in the range of $75 million to $85 million[16]. Cash and Liquidity - As of June 30, 2025, the company had cash and cash equivalents of $1,256.3 million and total debt of $1,442.0 million[13]. - The company paid cash dividends of $66.4 million, or $0.63 per share, during Q2 2025 and repurchased approximately 161 thousand shares at an average price of $219.77 per share[13]. - Cash and cash equivalents increased to $1,256.3 million as of June 30, 2025, compared to $920.3 million at December 31, 2024, reflecting a 36.5% growth[37]. - Adjusted Cash as of June 30, 2025, was $1,238.2 million, up from $879.5 million at the end of 2024, indicating a 40.9% increase[51]. - The company has approximately $614.5 million of availability remaining under its existing share repurchase authorizations as of June 30, 2025[13]. Market Share and Competitive Environment - Cboe's U.S. Equities exchanges had a market share of 10.5%, down from 11.4% in the second quarter of 2024, attributed to higher industry off-exchange market share[10]. - The company operates in a competitive environment with various risks that could impact future performance, including changes in trading volumes and regulatory conditions[20]. - Total Options market share in Q2 2025 was 30.2%, down from 31.1% in Q1 2025[26]. Expenses and Costs - The company reported a total cost of revenues of $586.2 million in Q2 2025, compared to $460.2 million in Q2 2024, reflecting a 27.3% increase[36]. - Net transaction and clearing fees for Q2 2025 were $429.0 million, up from $374.0 million in Q2 2024, indicating a 14.7% increase[38]. - The effective tax rate on adjusted earnings for the full year 2025 is expected to be between 28.5% and 30.5%[16]. - The effective tax rate on adjusted earnings for the first half of 2025 was 29.0%, slightly up from 28.8% in the same period of 2024[45]. Other Financial Metrics - Goodwill increased to $3,155.9 million as of June 30, 2025, from $3,124.2 million at December 31, 2024, showing a growth of 1.0%[37]. - Total assets rose to $9,048.3 million as of June 30, 2025, up from $7,789.1 million at the end of 2024, marking a 16.2% increase[37]. - Total liabilities increased to $4,383.2 million as of June 30, 2025, compared to $3,509.5 million at the end of 2024, a rise of 24.8%[37]. - The liquidity payments increased to $418.0 million in Q2 2025, compared to $307.0 million in Q2 2024, representing a 36.3% rise[36].