Cboe(US:CBOE)2025-10-31 11:30Financial Performance - Cboe reported record quarterly net revenue of $605.5 million, a 14% increase year-over-year[3] - Total revenues for Q3 2025 reached $1,141.7 million, a 8.1% increase from $1,055.7 million in Q3 2024[41] - Net income for Q3 2025 was $300.8 million, up 37.8% from $218.5 million in Q3 2024[41] - Operating income increased to $370.3 million in Q3 2025, compared to $307.4 million in Q3 2024, reflecting a 20.5% growth[41] - Basic earnings per share for Q3 2025 were $2.86, a 37.5% increase from $2.08 in Q3 2024[41] - Adjusted diluted earnings per share (EPS) for Q3 2025 was $2.67, compared to $2.22 in Q3 2024, reflecting a 20.3% increase[48] - Adjusted earnings for the nine months ended September 30, 2025, reached $800.7 million, a 16.6% increase compared to $686.8 million in the same period of 2024[48] Revenue Breakdown - Derivatives net revenue rose 15% year-over-year, driven by multiple volume records in the options business[4] - Cash and Spot Markets net revenue grew 14% year-over-year, while Data Vantage net revenue increased by 12%[4] - Global FX net revenue increased 13% to $22.5 million, with an average daily notional value traded of $49.9 billion, up 3% year-over-year[13] - Record Options net revenue reached $380.8 million, an increase of $59.9 million, or 19 percent, from Q3 2024, driven by a 26 percent rise in total options average daily volume (ADV)[14] - N.A. Equities net revenue was $103.5 million, a 6 percent increase from Q3 2024, despite a 3 percent decline in net transaction and clearing fees[14] - Europe and APAC net revenue increased by $13.5 million, or 24 percent, to $69.1 million from Q3 2024, with European Equities average daily notional value (ADNV) traded at €11.7 billion, up 26 percent[14] Guidance and Projections - The company is increasing its 2025 organic total net revenue growth guidance to 'low double-digit to mid-teens' from 'high single-digit'[5] - Organic total net revenue growth is projected to be in the 'low double-digit to mid-teens' range for 2025, an increase from previous guidance of 'high single-digit'[20] - Adjusted operating expenses are expected to be between $827 million and $842 million in 2025, down from prior guidance of $832 million to $847 million[20] Expenses and Liabilities - Total operating expenses for Q3 2025 were $235.2 million, a 5% increase from Q3 2024[10] - The annualized run-rate impact of business review decisions is estimated to result in a 3% reduction in net revenue and an 8-10% reduction in adjusted operating expenses[8] - The company’s total liabilities increased to $4,183.7 million as of September 30, 2025, compared to $3,509.5 million at December 31, 2024, a 19.2% increase[42] Cash and Dividends - As of September 30, 2025, the company had cash and cash equivalents of $1,496.7 million and total debt of $1,442.4 million[17] - The company paid cash dividends of $75.7 million, or $0.72 per share, with approximately $614.5 million remaining under its share repurchase authorizations[17] - Cash and cash equivalents rose to $1,496.7 million as of September 30, 2025, compared to $920.3 million at December 31, 2024, marking a 62.5% increase[42] Market Share and Volume - Cboe's Options exchanges achieved a total market share of 30.9 percent in Q3 2025, up from 30.5 percent in Q3 2024[14] - Total industry average daily volume (ADV) for options reached 60,798 thousand in Q3 2025, up from 57,203 thousand in Q2 2025, representing a 4.0% increase[31] - The company's total options ADV was 18,775 thousand in Q3 2025, compared to 17,301 thousand in Q2 2025, reflecting an 8.5% growth[31] - The market share for total options increased to 30.9% in Q3 2025 from 30.2% in Q2 2025[31] - U.S. equities exchange market share decreased to 9.8% in Q3 2025 from 10.5% in Q2 2025[31] Tax and Adjustments - The effective tax rate on adjusted earnings for the full year 2025 is expected to be in the range of 28.5 to 30.5 percent[20] - Income tax expense for Q3 2025 was $129.3 million, an increase from $90.5 million in Q3 2024[48] - The company reported an adjusted income tax rate of 30.4% for Q3 2025, compared to 29.2% in Q3 2024[48] Other Financial Metrics - Adjusted operating margin for Q3 2025 was 65.3%, up from 61.7% in Q3 2024[48] - The Operating EBITDA margin improved to 67.5% in Q3 2025, compared to 63.7% in Q3 2024[53] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,181.4 million, compared to $1,020.0 million in the same period of 2024, indicating a 15.8% rise[53] - The EBITDA margin for the nine months ended September 30, 2025, was 68.7%, up from 59.5% in the same period of 2024[53]