Intercontinental Exchange Q2 Earnings & Revenues Top Estimates

Core Insights - Intercontinental Exchange (ICE) reported second-quarter 2025 adjusted earnings per share of $1.81, exceeding the Zacks Consensus Estimate by 2.3% and reflecting a year-over-year increase of 19.1% [1][10] - The company achieved record net revenues of $2.5 billion, up 9.8% year over year, and also surpassed the Zacks Consensus Estimate by 0.7% [3][10] - Adjusted operating income rose 13.9% year over year to $1.6 billion, with an adjusted operating margin expansion of 200 basis points to 61% [4][10] Financial Performance - Total operating expenses decreased by 0.4% year over year to $1.3 billion, attributed to lower rent, occupancy, and administrative expenses [3] - Adjusted operating expenses were $983 million, reflecting a 3.8% year-over-year increase, while the adjusted operating income was $1.6 billion [4] - Operating cash flow was reported at $2.5 billion, up 12.1% year over year, and adjusted free cash flow increased by 14.2% to $2 billion [11] Segment Performance - Exchanges' net revenues reached $1.3 billion, a 16% increase year over year, with adjusted operating income of $1.1 billion, up 15.3% [5] - Fixed Income and Data Services revenues were $597 million, a 6% increase year over year, with adjusted operating income rising 2.8% to $261 million [6] - Mortgage Technology revenues increased by 5% to $531 million, with adjusted operating income up 22.1% year over year [7][8] Financial Position - As of June 30, 2025, ICE had cash and cash equivalents of approximately $2.3 billion, a 13.5% increase from December 31, 2024 [9] - Long-term debt stood at $17.3 billion, showing a slight increase from the end of 2024, while total equity rose by 2.9% to $28.5 billion [9] Guidance and Shareholder Returns - For the third quarter of 2025, GAAP operating expenses are expected to be between $1.245 billion and $1.255 billion, with adjusted operating expenses projected between $995 million and $1 billion [12] - ICE repurchased $496 million of its common stock and paid $555 million in dividends in the first half of 2025, with a declared dividend of 48 cents per share for the third quarter [14]