Key Takeaways Data Vantage is expected to deliver mid to high single-digit organic net revenue growth in 2025CBOE benefits from a diversified business mix that ensures steady revenue generation.CBOE continues to build global breadth through strategic acquisitions while generating cost synergies.Cboe Global Markets, Inc. (CBOE) shares have gained 26.1% in the year-to-date period, outperforming the industry's growth of 15.9%, the Finance sector’s return of 12.5% and the Zacks S&P 500 composite’s rise of 9.8%. ...

Core Insights - Cboe Global Markets, Inc. (CBOE) reported second-quarter 2025 adjusted earnings of $2.46 per share, exceeding the Zacks Consensus Estimate by 1.6% and reflecting a year-over-year increase of 14.4% [1][9] - Total adjusted revenues reached a record $587.3 million, up 14% year over year, driven by growth in derivatives markets, Data Vantage, and cash and spot markets [2][9] Financial Performance - Options revenues increased by 19% year over year to $364.8 million, supported by higher market data, access and capacity fees, and increased net transaction and clearing fees due to a rise in total options average daily volume [3] - North American Equities revenues remained flat at $98.4 million year over year, with higher access and capacity fees offset by lower net transaction and clearing fees [3] - Europe and Asia Pacific revenues grew by 30% year over year to $70.4 million, driven by increased net transaction and clearing fees [4] - Futures net revenues decreased by 14% year over year to $30.1 million, primarily due to a 19% decline in net transaction and clearing fees [4] - Global FX net revenues rose by 19% year over year to $23.6 million, mainly due to higher net transaction and clearing fees [4] Operating Metrics - Adjusted operating expenses were $213.3 million, an increase of 8.2% year over year, mainly due to higher compensation, benefits, and technology support services [5] - Adjusted operating income grew by 18.5% year over year to $374 million, surpassing estimates [5] - Adjusted operating margin expanded to 63.7%, an increase of 230 basis points year over year [6] Financial Position - CBOE ended the second quarter with cash and cash equivalents of $1.26 billion, a 36.5% increase from the end of 2024 [7] - Total assets rose to $9 billion, up 16.2% from the end of 2024 [7] - Long-term debt was $1.4 billion, a slight increase of 0.06% from the end of 2024 [7] - Total shareholders' equity increased by 9% to $4.7 billion from December 31, 2024 [7] Shareholder Returns - CBOE paid out cash dividends of $66.4 million or 63 cents per share and repurchased shares worth $35.3 million in the second quarter [10] - Approximately $614.5 million remains under the current share repurchase authorization as of June 30, 2025 [10] Guidance - CBOE anticipates high single-digit organic revenue growth and has adjusted 2025 expense guidance downwards [11] - Adjusted operating expenses are expected to be in the range of $832 million to $847 million, lower than previous guidance [11] - The company reaffirms capital expenditures for 2025 to be in the range of $75 million to $85 million [13]

Financial Performance - Cboe Global Markets reported record quarterly net revenue of $587 million, a 14% increase year-over-year from $513.8 million in Q2 2024 [2][9] - Diluted EPS for Q2 2025 was $2.23, up 68% compared to $1.33 in Q2 2024, while adjusted diluted EPS increased 14% to $2.46 [8][9] - Total operating expenses decreased to $248.2 million from $303.7 million in Q2 2024, primarily due to the prior year's impairment of intangible assets [9] Business Segment Performance - Derivatives net revenue grew 17%, driven by strong volumes in the options business, with options revenue reaching $364.8 million, up 19% from the previous year [7][15] - Data Vantage reported an 11% increase in net revenue, while Cash and Spot Markets also saw an 11% rise [2][9] - Futures net revenue decreased by 14% to $30.1 million, attributed to a decline in net transaction and clearing fees [12][15] Guidance and Outlook - The company raised its organic total net revenue growth guidance for 2025 to high single digits from mid to high single digits [2][16] - Adjusted operating expense guidance for 2025 was lowered to a range of $832 million to $847 million, down from $837 million to $852 million [2][16] - The effective tax rate for adjusted earnings is expected to be between 28.5% and 30.5% for the full year 2025 [16] Capital Management - As of June 30, 2025, Cboe had cash and cash equivalents of $1,256.3 million and total debt of $1,442.0 million [18] - The company paid cash dividends of $66.4 million during Q2 2025 and repurchased approximately 161,000 shares at an average price of $219.77 per share [19]

Core Insights - Cboe Global Markets, Inc. (CBOE) shares have increased by 35.1% over the past year, outperforming the industry growth of 27.9%, the Finance sector's return of 20.7%, and the Zacks S&P 500 composite's appreciation of 11.2% [1] - CBOE has outperformed peers such as Intercontinental Exchange Inc. (ICE), S&P Global Inc. (SPGI), and OTC Markets Group Inc. (OTCM), with respective share gains of 32%, 16.4%, and 2.8% in the past year [1] Company Performance - CBOE has a market capitalization of $23.69 billion, with an average trading volume of 0.9 million shares over the last three months [4] - The company has a solid track record of beating earnings estimates in three of the last four quarters, with an average beat of 1.95% [4] - CBOE shares are currently trading at a forward price-to-earnings ratio of 23.19X, which is lower than the industry average of 25.89X, indicating that the shares are undervalued [5] Technical Analysis - CBOE shares closed at $226.30, trading above the 50-day and 200-day simple moving averages of $221.41 and $210.75, respectively, suggesting strong upward momentum [6] Growth Projections - The Zacks Consensus Estimate for CBOE's 2025 earnings per share indicates a year-over-year increase of 10.3%, with revenues projected at $2.25 billion, reflecting an 8.4% year-over-year improvement [10] - Long-term earnings growth is expected to be 10.5%, surpassing the industry average of 10.1% [11] - CBOE's organic net revenue growth for Data Vantage is anticipated to be in the mid to high single-digit range in 2025 [9][16] Analyst Sentiment - Recent analyst activity shows one analyst has raised estimates for 2025 and another for 2026, resulting in a 0.5% and 0.2% increase in the Zacks Consensus Estimate for those years, respectively [12] Valuation and Capital Management - The average price target from 15 analysts for CBOE is $225.00 per share, suggesting a potential upside of 0.9% from the last closing price [13] - CBOE has a strong capital management strategy, with $644.5 million remaining under its current share repurchase authorization and a history of increasing dividends for 13 consecutive years [20]

Core Insights - Cboe Global Markets is expanding its Data Vantage business in the Asia Pacific region by hiring Junichi Nakagawa and Samuel Zou as Sales Directors, reflecting the increasing demand for market data and analytics from Asia Pacific investors [1][9] Group 1: Business Expansion - The new hires will focus on market data sales and analytics growth in Japan and Singapore, respectively, indicating a strategic move to enhance Cboe's presence in the region [1][4] - Cboe operates 27 markets across five asset classes globally, including leading equity trading venues in Australia and Japan, which supports its Data Vantage business [2][8] Group 2: Market Demand - In Q1 2025, 55% of Data Vantage's new data sales came from clients outside the U.S., showcasing the international expansion strategy and the growing interest from Asia Pacific investors [3] - Cboe's Data Vantage products are increasingly sought after by Asia Pacific investors looking for enhanced access to global markets, highlighting the region's significance for Cboe's growth [4][9] Group 3: Product Offerings - Cboe plans to offer 24-hour trading in U.S. equities five days a week to meet the rising demand from Asia Pacific investors, pending regulatory approvals [5] - The company has made its Global Indices Feed available on Snowflake Marketplace, providing a straightforward way for global customers to access high-quality market data [4]