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 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]