Core Insights - MarketAxess Holdings Inc. reported fourth-quarter 2025 adjusted earnings per share of $1.68, exceeding the Zacks Consensus Estimate by 1.2%, although it represented a 2.9% decline year over year [1][9] - Total revenues reached $209 million, reflecting a 3.5% year-over-year increase, but fell short of the consensus estimate by 1.6% [1][2] Revenue Breakdown - The growth in total revenues was driven by increased trading volumes in high-grade, high-yield, emerging markets, and Eurobonds [2] - Commission revenues rose 4% year over year to $181.3 million, but missed the Zacks Consensus Estimate of $183 million [3] - Information services revenues grew 2% year over year to $13.4 million, falling short of the consensus mark of $14 million [3] - Post-trade services revenues increased by 1% year over year to $11 million, while technology services revenues rose 2% year over year to $3.6 million [3] Expense Analysis - Total expenses amounted to $133.4 million, a 9% increase year over year, primarily due to higher employee compensation, technology, and general administrative costs [4] - The total expenses were lower than the estimate of $137 million [4] Profitability Metrics - MarketAxess' net income surged 42% year over year to $92.4 million, surpassing the estimate of $61 million [4] - The net income margin improved by 1,190 basis points year over year to 44.1% [4] Trading Volumes - High-grade trading volume was $424.6 billion, a 6% increase year over year, but below the consensus estimate of $430.3 billion [5] - High-yield trading volume climbed 15% year over year to $95.7 billion, with an average daily volume (ADV) also rising 15% to $1.5 billion [6] - Emerging markets trading volume increased by 15% year over year to $247.1 billion, with ADV also rising 15% to $4 billion [6] - Total credit trading volume reached $958.5 billion, an 11% year-over-year increase, with total credit ADV also rising 11% to $15.4 billion [7] Balance Sheet Overview - As of December 31, 2025, MarketAxess had cash and cash equivalents of $519.7 million, down 4.5% from the end of 2024 [8] - Total assets increased by 1.1% to $1.8 billion compared to the end of 2024 [8] - Outstanding borrowings under the credit facility were $220 million at the end of the fourth quarter [10] Cash Flow and Capital Deployment - Net cash from operations was $158.6 million, a 10% decline year over year, while free cash flow dropped 33.8% to $75.1 million [11] - MarketAxess repurchased shares worth $360 million in 2025 and authorized an additional $400 million in buybacks [12] - The quarterly cash dividend was increased by 2.6% to 78 cents per share, payable on March 4, 2026 [13] Full Year and Future Outlook - For the full year, revenues totaled $846.3 million, a 4% increase from 2024, with adjusted earnings per share rising 2% to $7.39 [14] - The company anticipates service revenues to grow at a mid-single-digit percentage in 2026, with total expenses projected between $530 million and $545 million [15] - MarketAxess targets average annual total revenue growth of 8-9% and an improvement in operating margin of 75-125 basis points over the medium term [16]

Core Insights - MarketAxess Holdings Inc. reported Q3 2025 earnings per share of $1.84, exceeding the Zacks Consensus Estimate by 8.9%, but down from $1.90 a year ago [1][9] - Total revenues increased by 1% year over year to $208.8 million, also beating the consensus mark by 1.2% [1][9] Revenue Breakdown - Commission revenues were $180.2 million, slightly down from $180.4 million in the prior-year quarter, but above the Zacks Consensus Estimate by 0.9% [3] - Information services revenues rose 6% year over year to $13.8 million, beating the consensus mark by 2.7% [3] - Post-trade services revenues increased by 9% year over year to $11.3 million, while technology services revenues surged 20% year over year to $3.6 million [3] Expense Analysis - Total expenses rose 3% year over year to $123.2 million, driven by higher employee compensation, technology, communication, and consulting fees [4] - The total expenses were lower than the estimate of $126.4 million [4] Trading Volume Insights - High-grade trading volume was $419.7 billion, down 7% year over year, missing the Zacks Consensus Estimate by 3.7% [5] - High-yield trading volume increased by 5% year over year to $86.2 billion, with average daily volume (ADV) also rising by 5% to $1.7 billion [6] - Emerging markets trading volume rose 14% year over year to $243.4 billion, with ADV also increasing by 14% to $3.8 billion [6] Financial Position - As of September 30, 2025, MarketAxess had cash and cash equivalents of $473.3 million, down from $544.5 million at the end of 2024 [8] - Total assets increased to $2 billion from $1.8 billion at the end of 2024 [8] Cash Flow and Capital Deployment - Net cash from operations was $90.2 million, down from $95.1 million a year ago, while free cash flow increased to $111.8 million from $86.3 million [10] - The company repurchased shares worth $45.3 million in the quarter, with a total of $120 million repurchased year-to-date [11] 2025 Outlook - Service revenues are expected to see mid-single-digit growth, with total expenses projected between $505 million and $525 million for 2025 [12]