Financial Data and Key Metrics Changes - Revenue for the third quarter was $209 million, reflecting a slight increase from the prior year, with a 1% growth overall [5][18] - Revenue growth outside of U.S. credit was strong at 10% [5] - Diluted earnings per share were reported at $1.84 [18] - Total commission revenue remained flat compared to the prior year, while services revenue increased by 9% to a record $29 million [18][19] - Total expenses increased by 3%, driven mainly by higher employee compensation and technology costs [21][22] Business Line Data and Key Metrics Changes - Total credit commission revenue was $165 million, down 2% year-over-year, with a 9% decline in U.S. high-grade and flat growth in U.S. high-yield [20] - Block trading ADV across U.S. credit, emerging markets, and Eurobonds increased by 10% in Q3 and 21% in October [7][8] - Portfolio trading ADV increased by 20%, with a record in U.S. high-yield ADV [8][12] - Dealer-initiated ADV was $1.7 billion year-to-date, representing a 34% increase [12] Market Data and Key Metrics Changes - 36% of global credit trading volume is now driven by clients outside of North America, up from 29% in 2020 [10] - U.S. high-yield ADV growth in October was strong, up 9% [9] - The average size of non-block trades is decreasing, while the average block size is increasing, with blocks greater than or equal to $5 million representing approximately 45% of trade volume in U.S. high-grade [13][14] Company Strategy and Development Direction - The company is focused on providing a protocol-agnostic platform that utilizes data and analytics to assist clients in choosing the appropriate trading protocol [5][6] - Investments are being made in technology transformation and new protocols to address competitive challenges, particularly in U.S. credit [17][35] - The launch of a new protocol for closing auctions in the fixed income market is aimed at providing an end-of-day liquidity solution [8][9][44] Management's Comments on Operating Environment and Future Outlook - Management noted a return to more challenging market conditions and historic levels of new issues in September, impacting revenue growth in U.S. credit [5][6] - There is optimism about the potential for higher levels of revenue growth in the coming quarters due to ongoing investments in technology and new initiatives [17][25] - The current macro environment shows signs of increased volatility, which could enhance the attractiveness of the company's all-to-all liquidity solutions [62] Other Important Information - The company generated $385 million in free cash flow over the trailing 12 months and repurchased 595,000 shares year-to-date for a total of $120 million [23] - The effective tax rate increased to 27.1%, reflecting an increased accrual for uncertain tax positions [19] Q&A Session Summary Question: On the MIDEX U.S. launch and overall share gains - Management discussed the early success of the MIDEX launch and plans to increase the number of sessions, emphasizing the importance of dealer relationships [28][30] - Concerns about overall growth and market share in U.S. credit were acknowledged, with a focus on technology investments to address competitive dynamics [33][34] Question: About the closing auctions and market share - Management highlighted the significant investment in the closing auction project, which aims to support the growing indexation of the fixed income market [41][42] - The closing auction is designed to provide a clearing price for trades, differentiating it from existing mid-market matching sessions [43][44] Question: On U.S. block trading and dealer liquidity - Management expressed optimism about block trading as a major opportunity, noting growth rates and upcoming changes to enhance dealer liquidity [52][54] Question: On the macro environment and growth potential - Management acknowledged the challenges posed by lower credit spreads and volatility but noted recent signs of increased activity and potential for growth [59][61] Question: On the mix of volumes in credit and trade sizes - Management explained the trends of increasing block sizes and decreasing smaller trades, attributing this to portfolio trading and SMA growth [76][78]

3Q25 Earnings Conference Call November 7, 2025 2 3Q25 highlights¹ | | • | 1% increase in revenue to $209 million; 10% growth in revenue outside U.S. credit | | --- | --- | --- | | FINANCIAL PERFORMANCE | • | 9% increase in services revenue2 to a record $29 million | | | • | 3% decline in earnings per share to $1.84 | | | • | $385 million in TTM free cash flow3 generation | | | • | 14% increase in ADV across credit products (ex. U.S. credit) | | | • | Solid progress with our new initiatives across our three ...