CME Group(CME) - 2025 Q3 - Quarterly Results

Executive Summary & Q3 2025 Financial Highlights This section provides an overview of CME Group's Q3 2025 financial performance, strategic priorities, and balance sheet position Q3 2025 Financial Performance (GAAP & Adjusted) CME Group reported Q3 2025 revenue of $1.5 billion, operating income of $973 million, and net income of $908 million (diluted EPS $2.49), with adjusted net income of $1.0 billion and diluted EPS of $2.68 Q3 2025 Financial Results (GAAP vs. Adjusted) | Metric | GAAP (Millions) | Adjusted (Millions) | | :-------------------------------- | :-------------- | :------------------ | | Revenue | $1,500 | - | | Operating Income | $973 | - | | Net Income | $908 | $1,000 | | Diluted EPS | $2.49 | $2.68 | Q3 2025 Revenue Breakdown | Revenue Type | Amount (Millions) | | :-------------------------- | :---------------- | | Clearing and transaction fees | $1,200 | | Market data revenue | $203 | | Total average rate per contract | $0.702 | CEO Commentary & Strategic Focus CEO Terry Duffy highlighted strong Q3 performance driven by global client reliance, with strategic emphasis on efficiency, new products, and expanded market access - Achieved second-highest third-quarter ADV[2] - Adjusted net income and adjusted EPS on par with last year's strong Q3 performance[2] - Strategic focus on delivering efficiencies, new products, and expanded market access, including a new partnership with FanDuel and 24/7 cryptocurrency futures and options trading[2] Balance Sheet Snapshot & Shareholder Returns As of September 30, 2025, CME Group held $2.6 billion in cash and $3.4 billion in debt, having returned approximately $3.5 billion to shareholders in dividends during the first nine months of 2025 Balance Sheet Snapshot (as of September 30, 2025) | Metric | Amount (Millions) | | :----- | :---------------- | | Cash | $2,600 | | Debt | $3,400 | - Paid approximately $3.5 billion in dividends during the first nine months of 2025[3] - Returned over $29.5 billion to shareholders in dividends since early 2012[3] Company Overview & Forward-Looking Statements This section outlines CME Group's business, conference call details, trademarks, and important forward-looking statement disclaimers Conference Call Information CME Group will host a Q&A conference call for Q3 2025 results at 8:30 a.m. Eastern Time, with a live audio webcast and archived recording available online - Q&A conference call for Q3 2025 results scheduled for 8:30 a.m. Eastern Time[5] - Live audio webcast and archived recording available on investor.cmegroup.com[5] Business Description CME Group is the world's leading derivatives marketplace, offering trading in futures, options, cash, and OTC markets across major asset classes through platforms like CME Globex, BrokerTec, and EBS, and operating CME Clearing - CME Group is the world's leading derivatives marketplace[6] - Offers trading in futures, options, cash, and OTC markets across asset classes: interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products, and metals[6] - Operates trading platforms (CME Globex, BrokerTec, EBS) and a central counterparty clearing provider (CME Clearing)[6] Trademarks This section lists CME Group's owned trademarks, including CME, CBOT, NYMEX, COMEX, Globex, BrokerTec, and EBS, along with licensed trademarks like S&P 500 Index and Dow Jones - CME Group owns trademarks including CME, CBOT, NYMEX, COMEX, Globex, BrokerTec, and EBS[7] - Licenses trademarks such as S&P 500 Index and Dow Jones, with a disclaimer that futures contracts based on the S&P 500 Index are not sponsored by S&P DJI[7] Forward-Looking Statements & Risk Factors The press release contains forward-looking statements subject to significant risks, including competition, technological developments, regulatory changes, and market volatility - Statements in the press release that are not historical facts are forward-looking and involve risks, uncertainties, and assumptions[8] - Key risk factors include increasing competition, technological developments, ability to introduce new products, managing costs (including Google Cloud transition), customer retention, regulatory changes, and intellectual property protection[8] - Other risks include market data revenue decreases, changes in rate per contract, credit and liquidity risk management, compliance, third-party dependence, market volatility, economic conditions, growth strategy execution, and legal proceedings[8][9] Consolidated Financial Statements This section presents CME Group's consolidated balance sheets and statements of income for the reported periods Consolidated Balance Sheets As of September 30, 2025, total assets significantly increased to $187.1 billion, primarily due to higher performance bonds, with corresponding increases in liabilities and shareholders' equity Consolidated Balance Sheet Highlights (in millions) | Metric | Sep 30, 2025 | Dec 31, 2024 | Change | | :------------------------------------ | :----------- | :----------- | :----- | | Cash and cash equivalents | $2,446.8 | $2,892.4 | ($445.6) | | Performance bonds and guaranty fund contributions (Assets) | $149,041.2 | $98,895.4 | $50,145.8 | | Total current assets | $152,800.8 | $103,033.5 | $49,767.3 | | Total Assets | $187,144.6 | $137,447.0 | $49,697.6 | | Performance bonds and guaranty fund contributions (Liabilities) | $149,041.2 | $98,895.4 | $50,145.8 | | Total current liabilities | $149,587.2 | $102,313.9 | $47,273.3 | | Long-term debt | $3,421.3 | $2,678.2 | $743.1 | | Total Liabilities | $158,954.3 | $110,960.1 | $47,994.2 | | Total CME Group Shareholders' Equity | $28,190.3 | $26,486.9 | $1,703.4 | Consolidated Statements of Income For Q3 2025, total revenues decreased slightly to $1,537.6 million, with operating income at $972.6 million and net income at $908.0 million, while nine-month revenues and net income increased Consolidated Statements of Income Highlights (in millions, except per share amounts) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Clearing and transaction fees | $1,227.9 | $1,297.1 | $3,953.2 | $3,755.9 | | Market data and information services | $202.5 | $178.2 | $595.1 | $528.6 | | Total Revenues | $1,537.6 | $1,584.4 | $4,871.9 | $4,604.8 | | Total Expenses | $565.0 | $560.2 | $1,662.0 | $1,620.4 | | Operating Income | $972.6 | $1,024.2 | $3,209.9 | $2,984.4 | | Investment income | $1,548.7 | $1,026.8 | $3,959.8 | $3,142.6 | | Net Income | $908.0 | $912.8 | $2,889.3 | $2,651.2 | | Diluted EPS | $2.49 | $2.50 | $7.92 | $7.27 | Non-GAAP Financial Reconciliations This section provides reconciliations of GAAP to non-GAAP financial measures, including adjusted operating income, net income, and diluted EPS Reconciliation of Adjusted Operating Income For Q3 2025, Adjusted Operating Income was $1,051.0 million, a decrease from Q3 2024, while the nine-month period showed an increase to $3,419.5 million Adjusted Operating Income (in millions) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------ | :------ | :------ | :------ | :------ | | Total Revenues | $1,537.6 | $1,584.4 | $4,871.9 | $4,604.8 | | Adjusted Total Revenues | $1,537.6 | $1,584.5 | $4,871.9 | $4,603.9 | | Total Expenses | $565.0 | $560.2 | $1,662.0 | $1,620.4 | | Adjusted Total Expenses | $486.6 | $488.8 | $1,452.4 | $1,424.8 | | Operating Income | $972.6 | $1,024.2 | $3,209.9 | $2,984.4 | | Adjusted Operating Income | $1,051.0 | $1,095.7 | $3,419.5 | $3,179.1 | Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings per Common Share Adjusted Net Income for Q3 2025 was $978.4 million, with Adjusted Diluted EPS at $2.68, while nine-month figures showed increases to $3,077.7 million and $8.43, respectively Adjusted Net Income and Diluted EPS (in millions, except per share amounts) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------------------------- | :------ | :------ | :------ | :------ | | Net Income | $908.0 | $912.8 | $2,889.3 | $2,651.2 | | Adjusted Net Income | $978.4 | $977.0 | $3,077.7 | $2,820.3 | | Diluted EPS | $2.49 | $2.50 | $7.92 | $7.27 | | Adjusted Diluted EPS | $2.68 | $2.68 | $8.43 | $7.74 | Quarterly Operating Statistics This section details CME Group's quarterly average daily volume and average rate per contract across various product lines Quarterly Average Daily Volume (ADV) Total Average Daily Volume for Q3 2025 was 25,322 thousand contracts, representing a decline from both the previous quarter and the prior year, with most product lines experiencing decreases Quarterly Average Daily Volume (ADV) (in thousands of contracts) | Product Line | 3Q 2024 | 2Q 2025 | 3Q 2025 | QoQ Change (2Q25-3Q25) | YoY Change (3Q24-3Q25) | | :-------------------- | :------ | :------ | :------ | :--------------------- | :--------------------- | | Interest rates | 14,881 | 15,472 | 13,378 | -13.5% | -10.1% | | Equity indexes | 7,407 | 7,661 | 6,278 | -18.0% | -15.3% | | Foreign exchange | 1,089 | 1,096 | 834 | -23.9% | -23.4% | | Energy | 2,571 | 3,082 | 2,295 | -25.5% | -10.8% | | Agricultural commodities | 1,614 | 1,964 | 1,712 | -12.8% | +6.1% | | Metals | 728 | 943 | 825 | -12.5% | +13.3% | | Total | 28,289 | 30,217 | 25,322 | -16.2% | -10.5% | | Venue: | | | | | | | CME Globex | 26,199 | 28,097 | 23,418 | -16.6% | -10.6% | | Open outcry | 1,096 | 993 | 989 | -0.4% | -9.8% | | Privately negotiated | 994 | 1,127 | 915 | -18.8% | -7.9% | Quarterly Average Rate Per Contract (RPC) The average rate per contract for Q3 2025 was $0.702, an increase from both the previous quarter and the prior year, with foreign exchange, interest rates, and equity indexes showing notable gains Quarterly Average Rate Per Contract (RPC) | Product Line | 3Q 2024 | 2Q 2025 | 3Q 2025 | QoQ Change (2Q25-3Q25) | YoY Change (3Q24-3Q25) | | :-------------------- | :------ | :------ | :------ | :--------------------- | :--------------------- | | Interest rates | $0.468 | $0.481 | $0.487 | +1.2% | +4.1% | | Equity indexes | $0.616 | $0.635 | $0.652 | +2.7% | +5.8% | | Foreign exchange | $0.744 | $0.772 | $0.841 | +9.0% | +13.0% | | Energy | $1.246 | $1.138 | $1.214 | +6.7% | -2.6% | | Agricultural commodities | $1.346 | $1.435 | $1.423 | -0.8% | +5.7% | | Metals | $1.540 | $1.456 | $1.505 | +3.4% | -2.3% | | Average RPC | $0.666 | $0.690 | $0.702 | +1.7% | +5.4% |