CME Group(US:CME)2025-10-24 18:07Financial Performance - Total revenues for Q3 2025 were $1,537.6 million, a decrease of 3% compared to $1,584.4 million in Q3 2024[82]. - Net income for the nine months ended September 30, 2025, was $2,889.3 million, reflecting a 9% increase from $2,651.2 million in the same period of 2024[82]. - Total expenses increased by 1% in Q3 2025 and 3% in the first nine months compared to 2024, with significant increases in compensation and benefits (9% in Q3) and technology expenses (7% in Q3)[113]. - Investment income rose by 51% in Q3 2025 and 26% in the first nine months compared to 2024, driven by higher reinvestment balances despite lower average rates of return[114]. Trading Volume and Market Activity - Average daily volume for total contracts decreased by 10% in Q3 2025 to 25,322 thousand contracts compared to 28,289 thousand contracts in Q3 2024[89]. - Interest rate products saw a 10% decrease in contract volume in Q3 2025 compared to Q3 2024, attributed to lower market volatility[91]. - E-mini S&P 500 futures and options volume decreased by 20% in Q3 2025 to 3,454 thousand contracts compared to 4,320 thousand contracts in Q3 2024[94]. - Foreign exchange products experienced a 13% decrease in average daily volume in Q3 2025 compared to Q3 2024, reflecting lower market volatility[99]. - Overall commodity contract volumes increased by 2% in Q3 2025 and 14% in the first nine months compared to the same periods in 2024, driven by higher market volatility and uncertainty regarding tariffs and grain supplies[101]. - WTI crude oil contract volume decreased by 21% in Q3 2025 but increased by 5% in the first nine months compared to 2024, attributed to lower market volatility and easing geopolitical tensions[103][104]. - Gold contract volumes increased by 29% in Q3 2025 and 31% in the first nine months compared to 2024, as investors sought gold as a safe-haven investment amid market uncertainty[106]. Revenue Sources - Clearing and transaction fees for Q3 2025 were $1,137.6 million, down 6% from $1,205.3 million in Q3 2024[85]. - Total clearing and transaction fees revenues for cash markets were $69.8 million in Q3 2025 and $215.4 million in the first nine months, compared to $68.5 million and $207.9 million in 2024[108]. - BrokerTec fixed income transaction fees increased by 18% in Q3 2025 and 3% in the first nine months compared to 2024, while EBS foreign exchange transaction fees decreased by 13% in Q3 but increased by 4% in the first nine months[109]. - Market data and information services revenues increased in Q3 2025 and the first nine months compared to 2024, largely due to price increases and higher usage of certain products[111]. Tax and Compliance - The effective tax rate for Q3 2025 was 22.9%, slightly up from 22.4% in Q3 2024[82]. - The effective tax rate for Q3 2025 was 22.9%, slightly up from 22.4% in 2024, while remaining consistent at 23.0% for the first nine months[117]. - The company is in compliance with all debt facility covenant requirements as of September 30, 2025[126]. Cash and Credit Facilities - Cash and cash equivalents totaled $2.4 billion at September 30, 2025, down from $2.9 billion at December 31, 2024[129]. - The company maintains a $2.3 billion multi-currency revolving senior credit facility, which can be increased to $3.3 billion with lender consent[120]. - The 364-day multi-currency revolving secured credit facility allows borrowings of up to $7.0 billion, with the option to increase to $10.0 billion[121]. - As of September 30, 2025, the company had excess borrowing capacity of approximately $2.3 billion under its multi-currency revolving senior credit facility[123]. - The company maintains a committed facility of up to $750 million for foreign currency conversions, with no outstanding trades under this facility[125]. Shareholder Returns and Legal Matters - The company has a share repurchase program authorized for up to $3.0 billion, with a maximum remaining value of shares to be repurchased at $2,991.8 million as of September 30, 2025[130]. - Legal fees increased primarily due to class action lawsuit litigation in the second and third quarters of 2025[119]. - Rent expenses decreased by $10.5 million during the first nine months of 2025 due to a reduction in leased office space[119].