UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34091 MARKETAXESS HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 52-2230784 (State of incorporation) (IRS ...

Investment Strategy - The investment strategy focuses on bullish positions in 4-5 industries, particularly in IT (hardware and software) [1] - The approach is termed "Fundamental Options," combining fundamental analysis with options trading [1] - Various investment strategies are employed, including income-oriented investments in BDCs and utilities, growth at a reasonable price in tech, deep value based on discounted cash flow, and dividend aristocrats [1] Options Trading - The company utilizes 20-25 different options strategies for purposes such as hedging stocks, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Teaching and Education - There is a passion for teaching, with experience in formal and informal education, including authoring a free local investing newsletter [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

MarketAxess 2026 Conference Summary Company Overview - **Company**: MarketAxess (NasdaqGS: MKTX) - **Industry**: Financial Services, specifically focused on electronic trading in fixed income markets Key Points and Arguments Growth Initiatives - MarketAxess has set three-year revenue growth targets of **8%-9%** annually, with margin targets also established [5][71] - The company is focusing on regaining market share in U.S. credit and expanding its global presence across various channels, including High-Grade, High-Yield, and Emerging Markets (EM) [4][6] Blocks Protocol - The Blocks protocol is a significant focus, with a **24% increase** in average daily volume (ADV) in 2025, including an **18% increase** in the U.S. and **66% in Eurobonds** [12][38] - The U.S. market is seen as having substantial untapped potential, particularly in electronic trading of Blocks [7][12] Portfolio Trading (PT) - MarketAxess reported a **19% share** in U.S. PT, a **270 basis point increase** year-over-year, with notable growth in High-Yield PT [18][19] - The company acknowledges that while PT is important for client relationships, it is not a significant revenue driver [20] Dealer-Initiated Trades - The Mid-X solution was launched at the end of the previous year, with **$3.2 billion** in volume recorded in January [21][22] - Positive feedback from dealers indicates that the protocol helps contain information leakage and streamlines the trading process [22] Emerging Markets (EM) - EM is expected to contribute significantly to growth, with **20% of incremental growth** in year one projected to come from the U.S. and **35% by year three** [36][37] - ADV in EM Blocks increased by **27%**, with a **172% increase** in portfolio trading [38][39] Eurobonds - MarketAxess has seen success in Eurobonds, leveraging its protocols to navigate the fragmented liquidity market across different jurisdictions [44] Automation and AI - Automation initiatives, such as the Auto-X protocol, have shown strong adoption, with **54%** of trades above $2 million processed through automation [48] - MarketAxess is also focusing on AI-driven products, such as CP+, which utilizes proprietary data for pricing algorithms [58][59] Pricing Strategy - The company maintains steady pricing in traditional RFQ, while acknowledging competitive pressures in dealer pricing and the need for a diverse protocol mix [63][64] - Blocks pricing is positioned between RFQ and PT, with automation being a premium-priced service [66] Expense Guidance and Investment - MarketAxess has provided expense guidance of **$530-$545 million** for 2026, with a focus on self-funding investments through efficiency measures [71][72] - Investments will continue in protocols, algo suites, and enhancements to the X-Pro front end [73] Capital Allocation - The company has increased its capital return profile, including a **$300 million ASR** and **$120 million** in buybacks, alongside a **$0.78 per share** dividend increase [76][77] - M&A opportunities are considered but are subject to a high bar for accretion and alignment with business strategy [78][79] Additional Important Insights - The market structure in fixed income has shifted, with a decrease in client-initiated trades from **80% to 58%**, indicating a need for MarketAxess to adapt its strategies [32][33] - The company emphasizes the importance of maintaining strong client relationships and adapting to market changes to sustain its competitive edge [41][42]

Core Insights - MarketAxess Holdings Inc. reported fourth-quarter 2025 adjusted earnings per share of $1.68, exceeding the Zacks Consensus Estimate by 1.2%, although it represented a 2.9% decline year over year [1][9] - Total revenues reached $209 million, reflecting a 3.5% year-over-year increase, but fell short of the consensus estimate by 1.6% [1][2] Revenue Breakdown - The growth in total revenues was driven by increased trading volumes in high-grade, high-yield, emerging markets, and Eurobonds [2] - Commission revenues rose 4% year over year to $181.3 million, but missed the Zacks Consensus Estimate of $183 million [3] - Information services revenues grew 2% year over year to $13.4 million, falling short of the consensus mark of $14 million [3] - Post-trade services revenues increased by 1% year over year to $11 million, while technology services revenues rose 2% year over year to $3.6 million [3] Expense Analysis - Total expenses amounted to $133.4 million, a 9% increase year over year, primarily due to higher employee compensation, technology, and general administrative costs [4] - The total expenses were lower than the estimate of $137 million [4] Profitability Metrics - MarketAxess' net income surged 42% year over year to $92.4 million, surpassing the estimate of $61 million [4] - The net income margin improved by 1,190 basis points year over year to 44.1% [4] Trading Volumes - High-grade trading volume was $424.6 billion, a 6% increase year over year, but below the consensus estimate of $430.3 billion [5] - High-yield trading volume climbed 15% year over year to $95.7 billion, with an average daily volume (ADV) also rising 15% to $1.5 billion [6] - Emerging markets trading volume increased by 15% year over year to $247.1 billion, with ADV also rising 15% to $4 billion [6] - Total credit trading volume reached $958.5 billion, an 11% year-over-year increase, with total credit ADV also rising 11% to $15.4 billion [7] Balance Sheet Overview - As of December 31, 2025, MarketAxess had cash and cash equivalents of $519.7 million, down 4.5% from the end of 2024 [8] - Total assets increased by 1.1% to $1.8 billion compared to the end of 2024 [8] - Outstanding borrowings under the credit facility were $220 million at the end of the fourth quarter [10] Cash Flow and Capital Deployment - Net cash from operations was $158.6 million, a 10% decline year over year, while free cash flow dropped 33.8% to $75.1 million [11] - MarketAxess repurchased shares worth $360 million in 2025 and authorized an additional $400 million in buybacks [12] - The quarterly cash dividend was increased by 2.6% to 78 cents per share, payable on March 4, 2026 [13] Full Year and Future Outlook - For the full year, revenues totaled $846.3 million, a 4% increase from 2024, with adjusted earnings per share rising 2% to $7.39 [14] - The company anticipates service revenues to grow at a mid-single-digit percentage in 2026, with total expenses projected between $530 million and $545 million [15] - MarketAxess targets average annual total revenue growth of 8-9% and an improvement in operating margin of 75-125 basis points over the medium term [16]

Core Insights - MarketAxess Holdings Inc. is a significant player in the electronic trading platform sector, focusing on fixed-income securities and known for its innovative trading approach [1] Financial Performance - On February 6, 2026, MarketAxess reported an earnings per share (EPS) of $2.52, surpassing the estimated EPS of $1.65, indicating strong performance [2] - The actual revenue reported was $209.4 million, slightly below the estimated $211.7 million, reflecting a minor revenue miss [2] - In the previous quarter, the company achieved an EPS of $1.68, exceeding the Zacks Consensus Estimate of $1.66, but showed a decline from the $1.73 EPS reported in the same quarter the previous year [3] Valuation Metrics - MarketAxess has a price-to-earnings (P/E) ratio of 27.55, indicating that investors are willing to pay a premium for its earnings [4] - The price-to-sales ratio stands at 7.27, and the enterprise value to sales ratio is 6.79, reflecting a strong market valuation relative to revenue and sales [4] Financial Health - The company maintains a low debt-to-equity ratio of 0.05, indicating minimal reliance on debt [5] - A current ratio of 2.50 suggests that MarketAxess is well-positioned to meet its short-term liabilities [5] - The earnings yield is reported at 3.63%, demonstrating robust financial standing and potential for shareholder returns [5]

Financial Data and Key Metrics Changes - In 2025, the company generated record revenue of $846 million, reflecting a strong 10% growth in product areas outside US credit [6][7] - The company reported annual free cash flow generation of $347 million, with a disciplined approach to expense management, showing a 5% growth in non-GAAP expenses [8][18] - The diluted earnings per share for the fourth quarter were $2.51, or $1.68 per share excluding notable items [18] Business Line Data and Key Metrics Changes - Block trading ADV increased by 29% in 2025, with record block trading ADV in emerging markets [7][12] - Portfolio trading ADV saw a 48% increase to a record $1.4 billion, with significant growth in U.S. credit ADV and market share [12][13] - Dealer-initiated ADV grew by 33% for the year, with over $3 billion in trading volume in the new MIDX protocol [13][14] Market Data and Key Metrics Changes - In January 2026, total credit ADV reached record levels, driven by strong growth across all credit product areas, with emerging markets business ADV up 50% [9] - U.S. high-grade turnover increased by 95% in January, marking levels not seen since 2011 [9] - The estimated market share in U.S. high-yield portfolio trading increased by 270 basis points in 2025 [13][16] Company Strategy and Development Direction - The company is focused on enhancing its global network and liquidity through investments in multi-protocol solutions for both buy-side and sell-side [5][6] - A clear technology and product roadmap has been established to achieve three-year targets announced in December [6][25] - The company aims to return to higher levels of revenue growth in U.S. credit while maintaining strong growth outside of it [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute in 2026, emphasizing the importance of expense discipline and optimizing capital deployment [25] - The company is addressing U.S. credit market share challenges with a detailed plan embedded in its three-year targets [11][25] - The management highlighted the significant growth opportunities in emerging markets, where electronic trading penetration remains low [49][50] Other Important Information - The company returned a total of $474 million to investors through share repurchases and dividends in 2025 [8][22] - The effective tax rate was reported at a negative 15.8%, or a positive 23.4% excluding notable items [18][20] - The company announced an enhanced capital return plan of $400 million, including a $300 million accelerated share repurchase (ASR) [8][22] Q&A Session Summary Question: About block trading strength and market attack strategies - Management noted a 24% increase in block trading in 2025 and a 56% increase in January, attributing growth to investments in key initiatives and protocols [27][28] Question: On average fee rate in credit and competitive pricing pressures - Management acknowledged that fee per million has been impacted by product mix and protocol selection, with a focus on growing incremental revenue despite lower fees [36][37] Question: Update on emerging markets and competitive dynamics - Management highlighted strong growth in emerging markets, with electronic penetration still under 10%, indicating significant market opportunities [46][48] Question: Capital return strategy and share repurchases - Management confirmed plans to manage capital return carefully, with $205 million remaining on the share repurchase authorization and an increased dividend [61][62] Question: Electronification slowdown in U.S. credit and capital allocation - Management emphasized that investments in block solutions are yielding high returns across product sets, maintaining a focus on both U.S. credit and emerging markets [72][74] Question: AI ambitions and automation in client flows - Management discussed ongoing investments in AI to enhance productivity and leverage proprietary data for trading, indicating a growing dataset that supports future growth [80][81]

Financial Data and Key Metrics Changes - In 2025, the company generated record revenue of $846 million, reflecting a strong 10% growth in product areas outside U.S. credit [6][7] - The company reported annual free cash flow generation of $347 million, with a disciplined approach to expense management resulting in a 5% growth in non-GAAP expenses [8][21] - The diluted earnings per share for the fourth quarter were $2.51, or $1.68 per share excluding notable items [18] Business Line Data and Key Metrics Changes - Block trading ADV increased by 29%, with record block trading ADV in emerging markets [7][12] - U.S. high-yield portfolio trading market share increased by 270 basis points in 2025, with a 126% increase in total portfolio trading ADV in January 2026 [13] - Dealer-initiated ADV grew by 33% for the year, with over $3 billion in trading volume in the new Mid-X protocol [13][15] Market Data and Key Metrics Changes - In January, total credit ADV reached record levels, driven by strong growth across all credit product areas, with emerging markets business ADV up 50% [9] - U.S. high-grade turnover increased by 95% in January, marking levels not seen since approximately 2011 [9] - The company’s estimated market share in U.S. high-yield portfolio trading increased significantly in the second half of 2025 [16] Company Strategy and Development Direction - The company is focused on enhancing its global network and liquidity through investments in multi-protocol solutions for both buy-side and sell-side [5] - A clear technology and product roadmap has been established to achieve three-year targets announced in December [6] - The company aims to capture the expanding e-trading opportunity, particularly in the block market, which remains under-penetrated [17][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to higher levels of revenue growth in U.S. credit, supported by new initiatives and strategic investments [25] - The company is optimistic about the growth potential in emerging markets, with electronic penetration still low [49] - Management acknowledged the need to address U.S. credit market share while highlighting the positive trends in other areas [11][25] Other Important Information - The company returned a total of $474 million to investors through share repurchases and dividends in 2025 [8][22] - The board of directors welcomed two new members with extensive fintech experience [10] - The company expects total services revenue to grow in the mid-single-digit percentage range in 2026 [23] Q&A Session Summary Question: About block trading strength and market dynamics - Management noted a 24% increase in block trading in 2025 and a 56% increase in January, attributing growth to investments in key initiatives and protocols [27][28] Question: On average fee rate in credit and competitive pressures - Management discussed the impact of product mix and protocol selection on fee per million, indicating that while fee rates may decline, overall revenue growth remains a priority [36][39] Question: Update on emerging markets and competitive dynamics - Management highlighted strong growth in emerging markets, with electronic penetration still low, presenting a significant opportunity [46][49] Question: Capital return strategy and share repurchases - Management confirmed ongoing capital return plans, including a recent increase in dividends and remaining authorization for share repurchases [61][62] Question: Electronification slowdown in U.S. credit and capital allocation - Management emphasized the importance of investing in block solutions across product sets, indicating high returns on such investments [73][75] Question: AI ambitions and automation potential - Management discussed ongoing investments in AI and the potential for automating client flows, emphasizing the growing bond market driven by AI funding needs [81][82]

Financial Data and Key Metrics Changes - In 2025, the company generated record revenue of $846 million, reflecting a strong 10% growth in product areas outside US credit [5] - Record total revenue was supported by record total ADV, leading to record commission revenue and services revenue, resulting in annual free cash flow generation of $347 million [5][19] - The company reported a 3.5% revenue growth to $209 million in Q4 2025, with diluted earnings per share of $2.51 [16] Business Line Data and Key Metrics Changes - Block trading ADV increased by 29% in 2025, with record block trading ADV in emerging markets [5] - U.S. credit portfolio trading market share increased by 270 basis points in 2025, with a 126% increase in total portfolio trading ADV in January 2026 [11] - Dealer-initiated ADV grew by 33% for the year, with over $3 billion in trading volume in the new MIDX protocol [11] Market Data and Key Metrics Changes - In January 2026, total credit ADV reached record levels, driven by a 50% increase in emerging markets [7] - U.S. high-grade turnover increased by 95% in January, marking levels not seen since 2011 [7] - The company’s estimated market share in U.S. high-yield portfolio trading increased significantly in the second half of 2025 [13] Company Strategy and Development Direction - The company aims to enhance its market access advantage through investments in technology and product development, focusing on multi-protocol solutions [4] - A clear three-year plan has been established to achieve growth targets, with a focus on executing new initiatives in 2026 [5] - The company is addressing U.S. credit market share challenges with a detailed plan embedded in its three-year targets [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to higher levels of revenue growth in U.S. credit, supported by ongoing investments and strategic initiatives [23] - The company is optimistic about capturing expanding e-trading opportunities, particularly in the block market [15] - Management noted that while electronification in U.S. credit has plateaued, there remains significant growth potential in emerging markets [70] Other Important Information - The company returned a total of $474 million to investors through share repurchases and dividends in 2025 [19] - The board of directors welcomed two new members with extensive fintech experience [8] - The company plans to invest $65 million to $75 million in capital expenditures for technology enhancements in 2026 [22] Q&A Session Summary Question: Strength in block trading - Management highlighted a 24% increase in block trading in 2025 and a 56% increase in January 2026, driven by various protocols and increased liquidity [25][26] Question: Average fee rate in credit - Management discussed the impact of protocol mix and market conditions on fee per million, emphasizing the importance of growing incremental revenue despite lower fees [34][35] Question: Update on emerging markets - Management noted significant growth in emerging markets, with a record ADV of over $5 billion in January 2026, and highlighted the low electronic penetration as a major opportunity [46][47] Question: Capital return strategy - Management confirmed ongoing capital return plans, including share repurchases and increased dividends, while also focusing on debt repayment [61][62] Question: Electronification slowdown in U.S. credit - Management expressed confidence in the potential for re-acceleration in electronification, particularly in the block market, and discussed ongoing investments in technology [66][70] Question: Artificial intelligence ambitions - Management outlined plans to leverage AI for increased productivity and transparency in trading, emphasizing the growing dataset as a key asset [80][82]

Core Insights - MarketAxess reported revenue of $209.41 million for the quarter ended December 2025, a year-over-year increase of 3.5% [1] - The EPS for the same period was $1.68, down from $1.73 a year ago, with a surprise of +1.45% compared to the consensus estimate of $1.66 [1] Financial Performance - The reported revenue fell short of the Zacks Consensus Estimate of $212.7 million, resulting in a surprise of -1.55% [1] - Average Variable Transaction Fee Per Million for Credit was $138.00, slightly below the average estimate of $138.67 [4] - Total Average Daily Volume was $37.89 billion, compared to the average estimate of $39.35 billion [4] Revenue Breakdown - Commissions revenue was $181.34 million, compared to the average estimate of $183 million, reflecting a year-over-year change of +3.8% [4] - Post-trade services revenue was $11.03 million, slightly below the average estimate of $11.36 million, with a year-over-year change of +0.5% [4] - Information services revenue was $13.45 million, compared to the average estimate of $13.95 million, representing a year-over-year change of +2.3% [4] Commission Revenue Details - Total variable transaction fees for Rates were $6.7 million, below the average estimate of $6.84 million, showing a year-over-year decline of -7.8% [4] - Total variable transaction fees for Credit were $132.36 million, compared to the average estimate of $134.06 million, reflecting a year-over-year increase of +2.3% [4] - Total fixed distribution fees were $32.9 million, slightly below the average estimate of $33.97 million, with no year-over-year change [4] Stock Performance - MarketAxess shares returned -5.2% over the past month, while the Zacks S&P 500 composite changed by -1.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]