Financial Data and Key Metrics Changes - The company reported revenues of $509 million for the third quarter, up 13% year-over-year on a reported basis and 11% on a constant currency basis [28] - Year-to-date revenues are up 21% or 17% organically, indicating strong growth momentum [5] - Adjusted EBITDA margin increased by 90 basis points to 54.2% compared to the previous year [29] Business Line Data and Key Metrics Changes - Rates produced its second highest revenue quarter, driven by organic growth across swaps and global government bonds, while mortgages achieved record revenues [9] - Credit growth was led by strength in municipal bonds and European credit, with U.S. credit revenues declining nearly 30% year-over-year [21][22] - Money markets revenue growth was supported by the addition of ICD, which saw a 7% increase relative to the second quarter [9] Market Data and Key Metrics Changes - International revenues grew by 25% year-over-year, reflecting successful strategic initiatives in emerging markets and APAC [8] - The company achieved a 10% increase in electronic industry average daily volume year-over-year, while voice average daily volume increased by 26% [11] Company Strategy and Development Direction - The company is focused on delivering innovative solutions that enhance liquidity and efficiency across the global fixed income ecosystem [7] - There is a strong emphasis on expanding electronic trading capabilities to capture market share from traditional voice trading [39] - The company is also investing in emerging markets and digital asset initiatives, with revenues from emerging markets nearly tripling year-over-year [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment is characterized by low interest rate volatility and geopolitical uncertainty, which are impacting client activity [5][39] - The company anticipates that volatility will normalize and data will return, which will drive future trading activity [39] - Management expressed confidence in the long-term growth potential for swaps, with only 30% of the cleared swaps market currently electronified [19] Other Important Information - The company reached an agreement to renew its market data contract with LSEG for three years, which is expected to increase in value by 9% annually [36] - The company ended the quarter with $1.9 billion in cash and cash equivalents, and free cash flow reached approximately $987 million for the trailing twelve months [34] Q&A Session Summary Question: What potential catalysts could spark volatility and improve activity? - Management indicated that the lack of data due to the government shutdown has led to muted activity, but potential catalysts include midterm elections and geopolitical uncertainties [44][50] Question: What is driving the greater mix of voice trades in Treasuries? - Management explained that complex trades, often involving larger notional amounts, are still predominantly voice-driven, but they expect electronic trading share to recover [55][60] Question: How does the company view the outlook for rates? - Management believes the current environment is constructive, with lower rates positively impacting trading volumes and fee structures [72][76] Question: What opportunities exist in tokenized assets? - Management highlighted the potential for tokenization to modernize trading processes, improve efficiency, and generate revenue, positioning the company as a market leader in this space [84][86]

Financial Data and Key Metrics Changes - The company reported revenues of $509 million for the third quarter, up 13% year-over-year on a reported basis and 11% on a constant currency basis [28] - Year-to-date revenues are up 21% or 17% organically, indicating strong growth momentum [5] - Adjusted EBITDA margin for the year to date is 54.2%, an increase of 90 basis points compared to the previous year [29] Business Line Data and Key Metrics Changes - Rates produced the second highest revenue quarter, driven by organic growth across swaps and global government bonds, while mortgages achieved record revenues [9] - Credit growth was led by strength in municipal bonds and European credit, with U.S. credit revenues declining due to lower retail corporate credit revenues [21][22] - Other revenues grew over 50%, reflecting contributions from emerging digital asset initiatives [10] Market Data and Key Metrics Changes - International revenues grew by 25% year-over-year, highlighting the success of strategic initiatives in emerging markets and Asia-Pacific [8] - U.S. Treasury revenues decreased slightly by 2% year-over-year, impacted by lower wholesale trends [11] - The company achieved record revenues in global swaps, driven by strong client engagement and a favorable macro backdrop, with global swaps revenues growing over 30% year-over-year [18] Company Strategy and Development Direction - The company is focused on expanding its electronic trading solutions to capture market share from traditional voice trading [39] - There is a strong emphasis on innovation, particularly in the areas of tokenization and digital assets, to modernize financial asset trading [84][85] - The company aims to enhance liquidity and efficiency across the global fixed income ecosystem, adapting to changing market conditions [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment is characterized by low interest rate volatility and geopolitical uncertainty, which are impacting client activity [5][39] - The company anticipates that volatility will normalize and data will return, which will drive client activity and repositioning of risk [39] - Despite challenges, the company remains optimistic about its growth trajectory, particularly in international markets, which are expected to continue strong performance [40] Other Important Information - The company reached an agreement to renew its market data contract with LSEG for three years, with an annual increase of 9% [36] - The company ended the quarter with $1.9 billion in cash and cash equivalents, and free cash flow reached approximately $987 million for the trailing twelve months [34] Q&A Session Summary Question: What potential catalysts could spark volatility and improve activity? - Management indicated that the lack of data due to the government shutdown has contributed to muted activity, but potential catalysts include midterm elections and geopolitical uncertainties [46][50] Question: What is driving the greater mix of voice trades in Treasuries? - Management explained that complex trades, often involving larger notional amounts, are still predominantly voice-driven, but they expect electronic trading share to recover [55][60] Question: How does the outlook for rates impact trading volumes? - Management believes that lower rates can positively impact fee structures and trading volumes, particularly in swaps and cash credit [72][77] Question: What opportunities exist in tokenized assets? - Management highlighted the potential for tokenization to modernize trading, improve efficiency, and provide significant client benefits, positioning the company as a market leader in this space [84][85]

3Q25 EARNINGS CONFERENCE CALL OCTOBER 30, 2025 © 2025 Tradeweb Markets LLC. All rights reserved. 113 112 115 239 178 30 167 101 115 140 214 236 142 204 122 179 179 182 253 212 142 166 140 158 Disclaimers The information in this presentation is current only as of its date and may have changed. We undertake no obligation to update this information in light of new information, future events or otherwise. Basis of Presentation Tradeweb Markets Inc. (unless the context otherwise requires, together with its subsi ...

Core Viewpoint - Investors often focus on high dividend yields without considering the long-term sustainability of those yields, leading to potential misvaluations in stocks like AGNC Investment Corp, ARMOUR Residential, and Orchid Island Capital [1][2] Company Analysis - AGNC Investment Corp trades at a significant premium to its tangible book value, attracting investors primarily due to its high yield, which is not a thorough research approach [2][18] - The earnings of AGNC appear strong due to existing hedges from low interest rates, but these hedges are expiring, leading to an increase in the cost of funds [3][8] - Even if the Federal Reserve cuts interest rates, AGNC's cost of funds is expected to rise because most of its funding costs are locked in through swaps [4][5] - AGNC's hedge portfolio includes a substantial amount of interest rate swaps, with $47.8 billion in long positions, which are crucial for managing interest expenses [7][8] - The yield on AGNC's assets is increasing, but the cost of funds is rising faster, resulting in a declining net interest spread and lower coverage ratio for dividends compared to two years ago [11][14] Comparative Analysis - ARMOUR Residential and Orchid Island Capital are seen as less favorable compared to AGNC, with similar risks but poorer decision-making and performance [14][19] - Preferred shares and baby bonds in the sector are viewed as more stable investment options, offering yields of 9% to 10% without the volatility associated with common shares [16][17] Market Sentiment - AGNC's current price reflects a large premium over its tangible book value, which is unusual and may indicate potential future declines in share price and dividends [18] - ARMOUR Residential and Orchid Island Capital are trading close to their book values, which is considered expensive given their historical performance and frequent losses [19]