Core Insights - Cboe Global Markets reported record financial results for Q3 2025, with net revenue of $605.5 million, diluted EPS of $2.85, and adjusted diluted EPS of $2.67, reflecting year-over-year growth of 14% and 20% respectively [2][13] - The company is undergoing a strategic realignment to focus on core strengths and growth opportunities, including the initiation of a sales process for Cboe Australia and Cboe Canada, and exiting U.S. and European Corporate Listings [3][8] Financial Performance - Total net revenue for Q3 2025 increased by 14% compared to Q3 2024, driven by strong performance in derivatives, cash and spot markets, and Data Vantage [2][19] - Adjusted operating expenses for Q3 2025 were $210.2 million, up from $204.0 million in Q3 2024, primarily due to increased compensation and benefits [16] - The effective tax rate for Q3 2025 was 30.1%, up from 29.3% in Q3 2024, influenced by the recognition of uncertain tax positions [17] Business Segment Performance - Options segment achieved record net revenue of $380.8 million, a 19% increase from Q3 2024, supported by a 26% rise in total options average daily volume [21] - North American Equities net revenue rose by 6% to $103.5 million, while European and Asia Pacific segment revenue increased by 24% to $69.1 million [19][32] - Futures segment revenue decreased by 22% to $29.6 million, attributed to a decline in net transaction and clearing fees [32] Strategic Initiatives - The company is increasing its 2025 organic total net revenue growth guidance to 'low double-digit to mid-teens' from 'high single-digit' [8][33] - Cboe is also lowering its full-year adjusted operating expense guidance to a range of $827 million to $842 million [8][33] - The strategic realignment aims to enhance the company's position in the derivatives market and capitalize on emerging opportunities [3][8] Market Position - Cboe's options exchanges held a market share of 30.9% in Q3 2025, up from 30.5% in the same period last year [21] - The company’s U.S. Equities exchanges experienced a decline in market share to 9.8% from 10.9% in Q3 2024, reflecting increased off-exchange trading [21][32] - Cboe's European Equities market share improved to 25.4% from 23.8% year-over-year [32]

Financial Performance - Cboe's net revenue for Q2 2025 reached $587.3 million, a 14% increase year-over-year[37, 45] - Adjusted operating EBITDA for Q2 2025 was $387 million, up 19% year-over-year, with a margin of 65.8%[38, 39] - Adjusted diluted EPS for Q2 2025 was $2.46, a 14% increase year-over-year[41, 42] Segment Performance - Options net revenue increased by 19% to $364.8 million in Q2 2025, driven by higher transaction and clearing fees[14, 66] - North American Equities net revenue remained roughly flat at $98.4 million in Q2 2025[14, 67] - Europe and Asia Pacific net revenue increased by 30% to $70.4 million in Q2 2025, reflecting transaction and non-transaction revenue growth[14, 69] - Futures net revenue decreased by 14% to $30.1 million in Q2 2025, due to a decrease in ADV[14, 72] - Global FX net revenue increased by 19% to $23.6 million in Q2 2025, driven by higher transaction and clearing fees[14, 74] Data and Market Trends - Data Vantage net revenue grew 11% organically year-over-year in Q2 2025, reaching $155.1 million[47, 49] - Total options ADV was up 20%, with index options ADV up 17% and multi-listed options ADV up 22%[14, 66] - U S Equities On-Exchange matched ADV increased 43% to $1.9 billion in Q2 2025[26]

Core Insights - Cboe Global Markets, Inc. (CBOE) is anticipated to show improvements in both revenue and earnings for Q2 2025, with revenue expected at $572.24 million, reflecting an 11.3% year-over-year growth [2] - The earnings consensus estimate is $2.42 per share, indicating a 12.5% increase from the previous year, with a slight upward revision of 0.8% in the last 30 days [3] Revenue and Earnings Estimates - The Zacks Consensus Estimate for CBOE's second-quarter revenues is $572.24 million, which is an 11.3% increase from the prior year [2] - The earnings estimate for the quarter is $2.42 per share, representing a year-over-year increase of 12.5% [3] Earnings Prediction Model - The earnings prediction model indicates a likely earnings beat for Cboe Global, supported by a positive Earnings ESP of +0.66% and a Zacks Rank of 3 (Hold) [4][5] Factors Influencing Q2 Results - Growth in index options, higher transaction and clearing fees, and increased access and capacity fees are expected to positively impact CBOE's Q2 performance [6] - Increased revenues from cash and spot markets, as well as derivatives markets, are anticipated due to higher transaction volumes on Cboe exchanges [7] Fee Structure and Revenue Breakdown - The company expects higher revenues from proprietary market data fees, with estimates of $81.1 million for market data revenues and $96.6 million for access and capacity fees [9] - Increased transaction and clearing fees are projected to benefit both cash and spot markets as well as the derivatives business [8] Product Performance - Cboe Global is expected to benefit from strong performance in proprietary products, including VIX futures and SPX options, along with growth in multi-listed options trading [12] - Continued share buybacks are anticipated to support the bottom line for the quarter [12]