Core Insights - MarketAxess reported record annual revenue of $846 million for 2025, driven by record average daily volume (ADV) and significant growth in trading protocols [2][5] - The company achieved record free cash flow of $347 million, with notable growth in product areas outside U.S. credit, which saw a 10% increase [2][5] - U.S. credit revenue, however, experienced a decline of 2% for the year [2] Financial Performance - Fourth-quarter revenue reached $209 million, marking a 3.5% year-over-year increase, with diluted EPS reported at $2.51 [1] - Total credit commission revenue rose 2% year-over-year to $165 million, supported by growth in U.S. high-yield (4%), emerging markets (6%), and Eurobonds (9%) [7] - Fourth-quarter commissions increased by 4% to $181 million, while services revenue grew by 2% to $28 million [6] Capital Management - The company returned $474 million to shareholders in 2025, which included $360 million in share repurchases and a dividend increase to $0.78 per share [4][13] - MarketAxess ended 2025 with $679 million in cash and equivalents, with $205 million remaining on the repurchase authorization as of January 31, 2026 [13] Growth Initiatives - Significant growth in block trading ADV, which reached about $5 billion, and portfolio trading ADV increased by 48% to $1.4 billion [15] - The company plans to enhance its dealer-initiated protocols, with Mid-X trading volume reaching a record $7 billion in January, up 383% [15] - Management emphasized the importance of technology modernization and automation in driving future growth [11][12] 2026 Guidance - For 2026, MarketAxess guided expenses to be between $530 million and $545 million, with mid-single-digit services revenue growth anticipated [4][20] - Capital expenditures are projected to be between $65 million and $75 million, primarily focused on software development for new protocols [20]

Core Insights - MarketAxess Holdings Inc. reported a total trading average daily volume (ADV) of $37.9 billion in Q4 2025, reflecting an 8% year-over-year decrease, primarily due to declines in U.S. Government Bond Rates and other government bond rates [1][8] - Despite the overall decline in ADV, the electronic trading platform facilitated $958.5 billion in total credit trading volume, marking an 11% year-over-year growth [1][8] Trading Performance - Eurobonds and Emerging Markets credit businesses experienced significant growth, with ADV increasing by 20% and 15% year-over-year, respectively [2] - High-grade markets saw a 6% increase in ADV compared to the previous year, while rates trading in agency and other government bonds fell by 43%, and U.S. government bonds decreased by 16%, leading to an overall 17% decline in rates trading [2] Transaction Fees and Market Share - Total credit average variable transaction fees per million (FPM) declined by 8% year-over-year, while total rates FPM grew by 10% year-over-year [3] - MarketAxess' estimated market share of U.S. credit portfolio trading rose to 20.6%, up from 16.2% a year ago [3] Strategic Initiatives - The company is expanding its dealer-initiated and workflow tools, diversifying beyond core fixed-income trading through enhanced protocol solutions and electronic execution offerings [4] - In June 2025, MarketAxess launched the first fully electronic trading workflow for Indian Government Bonds accessible to Foreign Portfolio Investors, and now offers electronic access to the entire JP Morgan Global Bond Index – Emerging Markets [4] Peer Comparison - CME Group is expanding through global growth initiatives and product innovation, including the launch of Spot-Quoted XRP and SOL futures [5] - Intercontinental Exchange, Inc. is also expanding through strategic investments and technological innovations, with a focus on digitization in the U.S. residential mortgage industry [6] Valuation and Earnings Estimates - MarketAxess shares have declined by 21.9% over the past year, contrasting with the industry's growth of 37.7% [7] - The company trades at a forward price-to-earnings ratio of 21.32X, which is higher than the industry average, and carries a Value Score of D [10] - The Zacks Consensus Estimate for MarketAxess' Q4 2025 earnings indicates a 1.2% decline year-over-year, while the full-year earnings consensus predicts a 1.9% increase from the previous year [11]

Core Insights - MarketAxess Holdings Inc. (MKTX) reported a total trading average daily volume (ADV) of $38.8 billion in Q3 2025, reflecting a 4% year-over-year decrease due to declines in U.S. High-Grade Credit and U.S. Government Bonds [1][9] - The electronic trading platform facilitated over $932.4 billion in total credit trading volume during the same period [1] Trading Performance - Eurobonds and Emerging markets credit businesses experienced significant growth, with ADV increasing by 16% and 14% year-over-year, respectively, driven by new client-initiated and dealer-initiated trading initiatives [2] - High-grade markets saw a 7% decrease in ADV compared to the previous year, while agency and other government bonds experienced a 6% growth in ADV, with U.S. government bonds declining by 9%, leading to an overall 8% decrease in total rates trading [3] Transaction Fees and Market Share - Total credit average variable transaction fees per million (FPM) declined by 6% year-over-year due to protocol mix, while total rates fees remained stable [4] - MarketAxess' estimated market share of U.S. credit portfolio trading decreased to 19.1%, down from 20% a year ago [4] Strategic Initiatives - The company is expanding its dealer business and rolling out new tools for sell-side traders, diversifying beyond core fixed-income trading [5] - In June 2025, MarketAxess launched the first fully electronic trading workflow for Indian Government Bonds, accessible to Foreign Portfolio Investors [5] Peer Comparison - CME Group is expanding through global growth and product innovation, planning to offer 24/7 trading for cryptocurrency futures and options [6] - Intercontinental Exchange, Inc. (ICE) is focusing on sustainability and emerging markets, with plans to launch ICE GreenTrac targeting global carbon markets [7] Valuation and Earnings Estimates - MarketAxess shares have declined by 25.7% year-to-date, contrasting with the industry's growth of 28.3% [8][9] - The company trades at a forward price-to-earnings ratio of 20.78X, which is higher than the industry average, and carries a Value Score of D [11] - The Zacks Consensus Estimate for Q3 2025 earnings indicates a 2.6% decline year-over-year, while the full-year earnings consensus predicts a 2.2% increase [12]

Core Viewpoint - MarketAxess Holdings Inc. has acquired a majority stake in RFQ-hub Holdings LLC, enhancing its position in the ETF and derivatives market through this strategic move [1][2][4]. Group 1: Acquisition Details - MarketAxess now holds approximately a 90% controlling stake in RFQ-hub, which is a global request-for-quote platform for trading ETFs, derivatives, and structured products [1]. - The remaining ownership is retained by original consortium members including Virtu Financial, BlackRock, Citadel Securities, Flow Traders, and Jane Street Capital, who will continue to collaborate with MarketAxess [2]. Group 2: Strategic Implications - This acquisition is expected to broaden MarketAxess' multi-asset capabilities, allowing it to better serve clients managing credit risk and bond liquidity through ETF and derivative tools [3]. - Gaining majority control is likely to provide MarketAxess with more direct influence over RFQ-hub's operations and revenue streams, aligning with its long-term strategy to diversify beyond core fixed-income trading [4]. Group 3: Market Context - MarketAxess has been focusing on accelerating growth in the fixed income space, as evidenced by its recent strategic data partnership with S&P Global Market Intelligence aimed at enhancing transparency and operational efficiency [6]. - Despite the acquisition, MarketAxess shares have declined 6.7% year-to-date, contrasting with an 8.3% increase in the industry, indicating challenges in the current market environment [7].