Intercontinental Exchange(ICE) - 2025 Q3 - Quarterly Results

Financial Performance - 3Q25 net revenues were $2.4 billion, representing a 3% year-over-year increase[2] - GAAP diluted earnings per share (EPS) for 3Q25 were $1.42, up 25% year-over-year; adjusted diluted EPS were $1.71, up 10% year-over-year[2] - Operating income for 3Q25 was $1.2 billion, a 6% increase year-over-year, with an operating margin of 49%[4] - Total revenues for the nine months ended September 30, 2025, increased to $9,498 million, up from $8,731 million in 2024, representing a growth of 8.8%[22] - Net income attributable to Intercontinental Exchange, Inc. for the nine months ended September 30, 2025, was $2,464 million, compared to $2,056 million in 2024, reflecting a year-over-year increase of 19.8%[22] - Basic earnings per share for the nine months ended September 30, 2025, rose to $4.30, up from $3.59 in 2024, marking an increase of 19.7%[22] - Operating income for the nine months ended September 30, 2025, was $3,692 million, compared to $3,232 million in 2024, showing a significant increase of 14.3%[22] - Adjusted net income attributable to ICE for the nine months ended September 30, 2025, was $3,018 million, compared to $2,622 million in 2024, marking a growth of 15.1%[30] - Diluted earnings per share attributable to ICE common stockholders for the nine months ended September 30, 2025, increased to $4.28 from $3.57 in 2024, a rise of 19.8%[30] Revenue Breakdown - Exchange net revenues for 3Q25 were $1.3 billion, with an operating margin of 72%[6] - Fixed income and data services revenues were $618 million, with an adjusted operating margin of 45%[10] - Mortgage technology revenues reached $528 million, with an adjusted operating margin of 42%[12] - Total revenues for the three months ended September 30, 2025, were $2,411 million, compared to $2,349 million for the same period in 2024, representing a growth of 2.6%[28] Cash Flow and Capital Management - Operating cash flow through 3Q25 was $3.4 billion, and adjusted free cash flow was $3.2 billion[18] - Adjusted free cash flow for the nine months ended September 30, 2025, was $3,178 million, compared to $2,631 million in 2024, indicating an increase of 20.8%[34] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $3,387 million, compared to $3,103 million in 2024, an increase of 9.2%[34] - Capital expenditures for the nine months ended September 30, 2025, were $207 million, a slight decrease from $212 million in 2024[34] Shareholder Returns - The company returned over $1.7 billion to stockholders through September 30, 2025, including $894 million in share repurchases[3] Strategic Initiatives - The company announced a strategic investment in Polymarket, expanding into decentralized prediction markets[2] - The company continues to focus on transforming U.S. housing finance through its ICE Mortgage Technology segment, enhancing efficiency and transparency in the market[35] Guidance and Projections - Updated financial guidance for 2025 includes operating expenses projected between $4.990 billion and $5.000 billion[14] Balance Sheet Highlights - Cash and cash equivalents as of September 30, 2025, totaled $850 million, a slight increase from $844 million as of December 31, 2024[24] - Total assets as of September 30, 2025, amounted to $140,901 million, up from $139,428 million as of December 31, 2024, reflecting a growth of 1.1%[24] - Total liabilities as of September 30, 2025, were $112,192 million, compared to $111,708 million as of December 31, 2024, indicating a rise of 0.4%[24] Operating Efficiency - Total operating expenses for the nine months ended September 30, 2025, were $3,735 million, slightly up from $3,724 million in 2024, indicating a marginal increase of 0.3%[22] - Adjusted operating income for the nine months ended September 30, 2025, was $4,499 million, compared to $4,119 million in 2024, representing an increase of 9.2%[27] - Adjusted operating margin for the nine months ended September 30, 2025, was 61%, compared to 59% in 2024, indicating an improvement in operational efficiency[27] - Operating margin for the three months ended September 30, 2025, was 72%, down from 76% in 2024[28] - Adjusted operating margin for the three months ended September 30, 2025, was 73%, slightly down from 75% in 2024[28]