Intercontinental Exchange (NYSE:ICE) Q3 2025 Earnings Call October 30, 2025 08:30 AM ET Company ParticipantsBen Jackson - PresidentWarren Gardiner - CFOJeff Sprecher - Chairman and CEOKatia Gonzalez - Manager of Investor RelationsChris Edmonds - President of Fixed Income and Data ServicesConference Call ParticipantsKen Worthington - AnalystAshish Sabadra - AnalystBrian Bedell - AnalystAlex Blostein - AnalystDan Fannon - Research AnalystBen Budish - Equity Research AnalystPatrick Moley - AnalystOperatorHello ...

Intercontinental Exchange (NYSE:ICE) Q3 2025 Earnings Call October 30, 2025 08:30 AM ET Company ParticipantsBen Jackson - PresidentWarren Gardiner - CFOJeff Sprecher - Chairman and CEOKatia Gonzalez - Manager of Investor RelationsChris Edmonds - President of Fixed Income and Data ServicesConference Call ParticipantsKen Worthington - AnalystAshish Sabadra - AnalystBrian Bedell - AnalystAlex Blostein - AnalystDan Fannon - Research AnalystBen Budish - Equity Research AnalystPatrick Moley - AnalystOperatorHello ...

Intercontinental Exchange (NYSE:ICE) Q3 2025 Earnings Call October 30, 2025 08:30 AM ET Speaker3Hello everyone and welcome to the ICE third quarter 2025 earnings conference call and webcast. My name is Lydia and I'll be your operator today. After the prepared remarks, there'll be an opportunity for you to ask questions. If you'd like to participate in the Q&A, you can do so by pressing Star followed by 1 on your telephone keypad. We kindly ask that you limit yourself to one question and then rejoin the queu ...

Financial Data and Key Metrics Changes - First quarter earnings per share reached $1.72, up 16% year over year, with net revenue increasing by 8% to a record $2,500,000,000 [6][8] - Adjusted operating income rose by 11% year over year to a record $1,500,000,000, while adjusted operating expenses totaled $964,000,000, slightly below guidance [7][8] - The company returned $519,000,000 to shareholders, including $241,000,000 in share repurchases, while reducing leverage to under 3.2 times EBITDA [8] Business Line Data and Key Metrics Changes - **Exchange Segment**: First quarter net revenues reached a record $1,400,000,000, up 12% year over year, with transaction revenues increasing by 16% [9][10] - **Fixed Income and Data Services Segment**: Revenues totaled a record $596,000,000, with transaction revenues growing by 16% and recurring revenues increasing by 5% [11][12] - **Mortgage Technology Segment**: First quarter revenues were $510,000,000, with recurring revenues of $397,000,000, driven by servicing business growth [13][14] Market Data and Key Metrics Changes - Total average daily volumes in global futures markets increased by 23% to a record 10,000,000 lots in Q1, with significant growth in energy and interest rate markets [16][17] - Open interest across markets grew by 8% year over year, indicating strong market health and risk management activity [17][36] - In the energy markets, record trading volumes were achieved, with oil revenues growing by 17% year over year [19][36] Company Strategy and Development Direction - The company is focused on maintaining a balanced mix of transaction and subscription revenues to provide growth while managing risks [34] - ICE aims to leverage its technology and data services to enhance customer experiences and improve operational efficiencies across its platforms [32][34] - The launch of NYSE Texas reflects the company's strategy to stay close to customers and capitalize on regional market opportunities [75][76] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of risk management in the current macroeconomic and geopolitical environment, with increasing demand for their services [16][36] - The company remains optimistic about continued growth in energy trading volumes and interest rate markets, driven by ongoing geopolitical dynamics [37][38] - Management expressed confidence in the strength of their business model and the ability to navigate market uncertainties [14][34] Other Important Information - The company expects adjusted operating expenses for Q2 to be in the range of $980,000,000 to $990,000,000, influenced by currency fluctuations and merit increases [8] - The backlog for new IPOs remains strong, with a variety of companies seeking to raise capital when market volatility decreases [10] Q&A Session Summary Question: Investor interest in the ROCCAT purchase of Mr. Cooper - Management views the acquisition as validation of their strategy, emphasizing their independent and neutral position in the mortgage market [44][46] - They noted that Rocket Cooper represents a small percentage of their revenues, and any potential transition away from ICE would take time [48][49] Question: Updated thoughts on M&A and capital deployment - Management is focused on deleveraging and returning capital through share buybacks, while remaining open to M&A opportunities that provide better ROI [52][55] Question: Dynamics in energy markets and customer hedging needs - Management indicated that the current environment presents new risks for clients, leading to increased demand for their risk management services [60][62] Question: Fixed income data performance and sales cycles - Management noted that while sales cycles for complex products may be lengthening, individual product sales remain stable [85][86]