Tradeweb(TW) - 2025 Q3 - Quarterly Results

Financial Performance - Tradeweb reported quarterly revenues of $508.6 million, a 13.3% increase year-over-year, with international revenues rising 24.8% to $211.2 million[2] - Net income for the quarter was $210.5 million, a 61.7% increase from the prior year, while adjusted net income rose 15.2% to $206.5 million[2] - Adjusted EBITDA margin improved to 54.0%, with adjusted EBITDA of $274.4 million, up 14.4% year-over-year[2] - Tradeweb Markets reported total revenue of $508.6 million for the three months ended September 30, 2025, a 13.3% increase from $448.9 million in the same period of 2024[26] - The company achieved a net income of $210.5 million for the three months ended September 30, 2025, compared to $130.2 million in the prior year, reflecting a 61.5% year-over-year growth[26] - Free cash flow for the trailing twelve months ended September 30, 2025, was $987.5 million, up 23.8% compared to the prior year period[24] - Tradeweb's operating income for the nine months ended September 30, 2025, was $614.3 million, representing a 25.5% increase from $489.5 million in the same period of 2024[26] - The company declared a quarterly cash dividend of $0.12 per share, reflecting a 20% increase from the prior year[2] - The company declared a quarterly cash dividend of $0.12 per share, payable on December 15, 2025[24] - The company incurred merger and acquisition transaction and integration costs of $466,000 for the three months ended September 30, 2025, significantly lower than $14,488,000 in 2024[42] Trading Volume and Activity - Average daily volume (ADV) reached $2.6 trillion, up 11.8% year-over-year, with record ADV in mortgages, U.S. swaps, municipal bonds, and global repurchase agreements[2] - Tradeweb facilitated an average of $2.4 trillion in notional value traded per day over the past four fiscal quarters[23] - Average Daily Volume (ADV) for total trading was $2.58 million, up 11.81% from $2.30 million in Q3 2024[52] - The average daily volume for U.S. Government Bonds was $221.10 million, showing a slight decrease of 0.34% year-over-year[52] Segment Performance - Revenues from the Rates segment increased 17.7% to $274.5 million, driven by record ADV in mortgages and swaps[8] - Credit segment revenues rose 2.6% to $121.3 million, with municipal bond ADV up 36.1% year-over-year[9] - Equities revenues increased 16.9% to $29.8 million, supported by higher trading volumes in convertibles and ETFs[10] - Money Markets revenues grew 18.7% to $42.9 million, driven by record activity in global repurchase agreements[11] - Rates revenue increased by 17.1% to $203.41 million, compared to $173.70 million in the previous year[48] - Credit revenue saw a decline of 5.1%, totaling $103.88 million compared to $109.52 million in the same quarter last year[48] - Money Markets revenue increased by 20.3% to $38.42 million, up from $31.93 million in Q3 2024[48] - The company reported a significant increase in "Other" revenue, which rose by 407.4% to $2.60 million from $0.51 million[48] Cash Flow and Liquidity - The company had $1.9 billion in cash and cash equivalents and an undrawn $500 million credit facility as of September 30, 2025[24] - The company reported a cash flow from operating activities of $1,093,722,000 for the trailing twelve months ended September 30, 2025, up from $860,477,000 in 2024[46] - The company uses Free Cash Flow to assess liquidity, considering cash generated from core operations after non-acquisition related expenditures[63] - Free Cash Flow for the trailing twelve months ended September 30, 2025, was $987,479,000, compared to $797,374,000 in 2024, representing a 23.9% increase[46] Guidance and Future Outlook - Future guidance includes expectations for continued growth driven by market data license agreements and potential acquisitions[57] - The company completed the acquisition of ICD on August 1, 2024, contributing to the reported volumes[52] Non-GAAP Measures and Metrics - Non-GAAP financial measures are presented, including Adjusted EBITDA and Free Cash Flow, which should not be considered in isolation from GAAP measures[65] - Constant currency change is used as a supplemental metric to evaluate underlying performance, excluding the effects of foreign currency fluctuations[64] - Market and industry data estimates are based on management's knowledge and various sources, but no representations are made regarding their accuracy[67] Shareholder Information - The diluted weighted average shares outstanding for the three months ended September 30, 2025, were 214,983,486, slightly down from 215,096,974 in 2024[40] - The Adjusted Diluted EPS for the three months ended September 30, 2025, was $0.87, compared to $0.75 for the same period in 2024, reflecting a 16% increase[40] - Operating expenses for the three months ended September 30, 2025, totaled $298,227,000, an increase from $289,599,000 in 2024[42] - The provision for income taxes for the nine months ended September 30, 2025, was $163,886,000, compared to $134,135,000 in 2024, indicating a 22.2% increase[33] Investor Relations - The company encourages monitoring its investor relations website and social media channels for material financial and operational information[68]