MarketAxess Holdings Inc【MKTX】株式ニュース

MarketAxess Reports First Quarter 2026 Financial ResultsMay 7, 2026 6:30 AM
Business Wire 12% Increase in Total Revenue to Record $233 Million Driven by 20% Growth in Revenue Outside U.S. Credit Products
Strong Results Reflect Heightened Demand for Our Differentiated Liquidity by Our Global Client Network
35% Increase in Block Trading ADV With Record U.S. High-Grade, U.S. High-Yield, EM and Eurobonds Block ADV
51% Increase in Portfolio Trading ADV to Record $1.9 Billion with Record U.S. Credit and EM ADV
EPS of $2.20; $2.25 Excluding Notable Items1 MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the first quarter ended March 31, 2026. 1Q26 select financial and operational highlights* Record total revenues of $233.4 million increased 12%, and included an increase of approximately $3.4 million from the impact of foreign currency fluctuations.
— 12% growth in total commission revenue to record $203 million driven by record total credit (+9%) and record total rates (+29%) commission revenue.
— 10% growth in services revenue2 to record $30 million.
— 20% growth in revenue outside U.S. credit, including 21% growth in combined emerging markets (record) and eurobonds (record) variable transaction revenue, reflecting the strong contribution from our international products.
Strong progress with our new initiatives across our three strategic channels:
— Client-Initiated Channel - 35% increase in block trading average daily volume (“ADV”) to a record $6.6 billion, including record U.S. credit (+27%), record emerging markets (+47%) and record eurobonds (+45%).
— Portfolio Trading Channel - 51% increase in total portfolio trading ADV to a record $1.9 billion with record U.S. high-grade (+36%), record U.S. high-yield (+78%) and record emerging markets (+69%) portfolio trading ADV.
— Dealer-Initiated Channel - 3% increase in dealer-initiated ADV to a record $1.9 billion, including 168% increase in Mid-X ADV to record levels.
Total expenses of $132.5 million increased 10%, and included an increase of approximately $2.2 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items,1 of $130.3 million increased 8%. Operating margin of 43.2%, representing an increase of approximately 80 basis points; Operating margin, excluding notable items,1 of 44.2%, representing an increase of approximately 180 basis points. Diluted earnings-per-share (“EPS”) of $2.20 on net income of $78.1 million, compared to $0.40 and $15.1 million in the prior year, respectively; EPS of $2.25 on net income of $79.7 million, each excluding notable items,1 increased 20% and 14%, respectively. Completed $300 million accelerated stock repurchase ("ASR") agreement, which was the main driver of an approximately 6% reduction in share count compared to the prior year, enhancing EPS growth. *All comparisons versus 1Q25 Chris Concannon, CEO of MarketAxess, commented: “We delivered record levels of trading volume, commission revenue and services revenue, driven by increased volatility and heightened demand for our differentiated liquidity from our global client network. Our strong results were broad-based and included 20% growth in revenue outside of U.S. credit, including record levels of commission revenue in emerging markets and eurobonds. Our new initiatives are also continuing to gain traction across our three strategic channels with record levels of ADV across block trading, portfolio trading and dealer-initiated activity. Our MarketAxess advantage continued to strengthen in the first quarter by expanding our global network, deepening our differentiated liquidity and widening the competitive moat of our proprietary data and analytics. Our accelerating use of AI will help us deliver new trading and unique data solutions to our clients." Table 1: 1Q26 select financial results Quarter % Change $ in millions, except per share data (unaudited) 1Q 2026 4Q 2025 1Q 2025 QoQ YoY Selected GAAP-basis financial results Revenues $ 233 $ 209 $ 209 11 % 12 % Expenses 132 133 120 (1 ) 10 Operating margin 43.2 % 36.3 % 42.4 % +690 bps +80 bps Net Income 78 92 15 (15 ) 418 Diluted EPS 2.20 2.51 0.40 (12 ) 450 Net Income Margin 33.5 % 44.1 % 7.2 % NM NM Selected GAAP-basis financial results ex-notable
items (non-GAAP)1 Revenues 233 209 209 11 12 Expenses 130 132 120 (2 ) 8 Operating margin 44.2 % 36.8 % 42.4 % +740 bps +180 bps Net Income 80 62 70 29 14 Diluted EPS 2.25 1.68 1.87 34 20 Other Non-GAAP financial measures EBITDA3 122 95 107 28 13 EBITDA Margin3 52.1 % 45.3 % 51.5 % +680 bps +60 bps NM - not meaningful 1Q26 overview of results Table 1A: Notable items1 Quarter 1Q 2026 4Q 2025 1Q 2025 $ in millions, except per share data (unaudited) Repositioning charges $ 1.5 $ 1.1 $ — Other notable items 0.7 — — Notable items (pre-tax) 2.2 1.1 — Income tax impact from notable items (0.5 ) (0.3 ) — Reserve for uncertain tax positions related to
prior periods — (31.3 ) 54.9 Total notable items $ 1.7 $ (30.5 ) $ 54.9 EPS impact $ 0.05 $ (0.83 ) $ 1.47 Notable items1 Notable items in 1Q26 include repositioning charges of $1.5 million, which consisted of severance costs related to changes in management structure, and $0.7 million of other legal expenses. Revenue Record total revenues of $233.4 million increased 12% compared to the prior year and included RFQ-hub revenues of approximately $4.7 million and a $3.4 million increase from the impact of foreign currency fluctuations. Commission revenue Table 1B: 1Q26 variable transaction fees per million (FPM) Quarter % Change 1Q 2026 4Q 2025 1Q 2025 QoQ YoY AVG. VARIABLE TRANS. FEE PER MILLION (FPM) Total Credit $ 132 $ 138 $ 139 (4 ) % (5 ) % Total Rates 4.68 4.79 4.20 (2 ) 11 Credit Record total credit commission revenue of $183.8 million (including $33.4 million in fixed-distribution fees) increased $14.6 million, or 9%, compared to $169.1 million (including $33.3 million in fixed-distribution fees) in the prior year, and was up 11% from 4Q25 levels. A 17% increase in total credit ADV compared to the prior year, driven by growth in market volumes, was partially offset by a 5% decrease in total credit variable transaction fee per million (“FPM”). The 9% increase in total credit commission revenue was driven by a 21% increase in emerging markets and eurobonds commission revenue, reflecting continued product and geographic diversification. The decline in 1Q26 total credit FPM year-over-year was driven by protocol and product mix, partially offset by the higher duration of bonds traded in U.S. high-grade. The quarter-over-quarter decline was due principally to product mix. Rates Record total rates commission revenue of $9.0 million increased $2.0 million, or 29%, compared to the prior year, and increased 33% from 4Q25 levels. The increase compared to the prior year was driven by a 16% increase in total rates ADV and an 11% increase in FPM. Other Record total other commission revenue of $10.7 million increased $5.5 million, or 104%, compared to the prior year, driven by the inclusion of approximately $4.3 million from RFQ-hub, majority control of which was acquired in 2Q25. Services revenue Record services revenue2 of $29.9 million increased $2.7 million, or 10%, compared to the prior year. Information services — Information services revenue of $14.4 million increased $1.5 million, or 12%, compared to the prior year. The increase was principally driven by net new contract revenue and an increase of $0.5 million from the impact of foreign currency fluctuations. Post-trade services — Post-trade services revenue of $11.6 million increased $0.5 million, or 5%, compared to the prior year principally due to an increase of $1.0 million from the impact of foreign currency fluctuations. Technology services — Total technology services revenue of $3.9 million increased $0.6 million, or 19%, compared to the prior year. The increase was driven by connectivity fees from RFQ-hub, majority control of which was acquired in 2Q25. Expenses Total expenses of $132.5 million increased 10% from the prior year, including approximately $3.4 million of RFQ-hub expenses and an increase of $2.2 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items,1 of $130.3 million increased 8% from the prior year. Non-operating Other income (expense): Other income was $3.0 million, down from $7.8 million in the prior year. The decrease was driven by lower interest income due to a decrease in interest rates and higher interest expense due to borrowings on the Company’s credit facility that were used, along with cash on hand, to fund the ASR, partially offset by receipt of a tax credit. Tax rate: The effective tax rate was 24.8%, compared to 84.3% in the prior year. The effective tax rate excluding notable items1 in the prior year was 27.2%. Capital The Company had $537.4 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of March 31, 2026, down from $678.9 million as of December 31, 2025. The Company had $157.0 million in borrowings outstanding under the Company’s credit facility as of March 31, 2026, as compared to $220.0 million in borrowings outstanding as of December 31, 2025. As of April 30, 2026, the Company had $137.0 million in borrowings outstanding under the Company’s credit facility. Final settlement of the previously disclosed $300.0 million ASR occurred on February 4, 2026, with the delivery of 359,782 additional shares. As of April 30, 2026, $205.0 million remained under the Board of Directors’ share repurchase authorizations. The Board declared a quarterly cash dividend of $0.78 per share, payable on June 3, 2026 to stockholders of record as of the close of business on May 20, 2026. Other Employee headcount was 859 as of March 31, 2026, down from 869 as of December 31, 2025 and 870 as of March 31, 2025. 1 See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 6 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures. 2 Services revenue is defined as combined information, post-trade and technology services revenue. 3 EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 7 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures. Non-GAAP financial measures and other items To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) selected GAAP-basis financial results, each excluding notable items, to their most directly comparable GAAP measure; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure. Webcast and conference call information Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer, will host a conference call to discuss the Company’s financial results and outlook on Thursday, May 7, 2026 at 10:00 a.m. ET. To access the conference call, please dial +1-800-715-9871 (U.S.) or +1-646-307-1963 (International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement. General Notes Regarding the Data Presented Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume. Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; our dependence on third-party suppliers for key products and services; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effects of climate change or other sustainability risks that could affect our operations or reputation; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com. About MarketAxess MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income and other markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess. Table 2: Consolidated Statements of Operations Three Months Ended March 31, In thousands, except per share data (unaudited) 2026 2025 % Change Revenues Commissions $ 203,471 $ 181,343 12 % Information services 14,445 12,904 12 Post-trade services 11,607 11,088 5 Technology services 3,857 3,241 19 Total revenues 233,380 208,576 12 Expenses Employee compensation and benefits 70,195 61,916 13 Depreciation and amortization 19,210 18,236 5 Technology and communications 20,360 18,048 13 Professional and consulting fees 6,376 6,410 (1 ) Occupancy 3,819 3,622 5 Marketing and advertising 2,334 2,061 13 Clearing costs 4,426 4,185 6 General and administrative 5,739 5,716 — Total expenses 132,459 120,194 10 Operating income 100,921 88,382 14 Other income (expense) Interest income 4,308 7,169 (40 ) Interest expense (2,888 ) (213 ) NM Equity in earnings of
unconsolidated affiliate — 289 (100 ) Other, net 1,544 527 193 Total other income (expense) 2,964 7,772 (62 ) Income before income taxes 103,885 96,154 8 Provision for income taxes 25,778 81,089 (68 ) Net income $ 78,107 $ 15,065 418 Less: income attributable to
noncontrolling interest (225 ) — NM Net income available for common
stockholders $ 77,882 $ 15,065 417 Per Share Data: Net income per common share Basic $ 2.21 $ 0.40 Diluted $ 2.20 $ 0.40 Cash dividends declared per
common share $ 0.78 $ 0.76 Weighted-average common shares: Basic 35,301 37,388 Diluted 35,386 37,456 NM - not meaningful Table 3: Commission Revenue Detail Table 3: Commission Revenue Detail In thousands, except fee per million data Three Months Ended March 31, (unaudited) 2026 2025 % Change Variable transaction fees Credit $ 150,347 $ 135,840 11 % Rates 8,922 6,919 29 Other 10,697 5,232 104 Total variable transaction fees 169,966 147,991 15 Fixed distribution fees Credit 33,403 33,265 — Rates 102 87 17 Total fixed distribution fees 33,505 33,352 — Total commission revenue $ 203,471 $ 181,343 12 Average variable transaction fee
per million Credit $ 132 $ 139 (5 ) % Rates 4.68 4.20 11 Table 4: Trading Volume Detail* Three Months Ended March 31, In millions (unaudited) 2026 2025 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 511,492 $ 8,385 $ 461,308 $ 7,562 11 % 11 % High-yield 100,409 1,646 89,997 1,475 12 12 Emerging markets 311,925 5,114 240,285 3,939 30 30 Eurobonds 178,162 2,828 147,917 2,348 20 20 Other credit 40,186 659 36,482 598 10 10 Total credit trading 1,142,174 18,632 975,989 15,922 17 17 Rates U.S. government bonds 1,800,150 29,511 1,582,081 25,936 14 14 Agency and other government bonds 104,376 1,659 65,825 1,047 59 58 Total rates trading 1,904,526 31,170 1,647,906 26,983 16 16 Total trading $ 3,046,700 $ 49,802 $ 2,623,895 $ 42,905 16 16 Number of U.S. Trading Days1 61 61 Number of U.K. Trading Days2 63 63 1 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar. 2 The number of U.K. trading days is based on the U.K. Bank holiday schedule. * Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted. Table 5: Consolidated Condensed Balance Sheet Data As of In thousands (unaudited) March 31, 2026 December 31, 2025 Assets Cash and cash equivalents $ 377,302 $ 519,734 Cash segregated under federal regulations 49,053 48,722 Investments, at fair value 170,808 170,677 Accounts receivable, net 128,171 100,989 Receivables from broker-dealers, clearing organizations and customers, including
$75,072 pledged as collateral as of March 31, 2026 977,049 489,211 Goodwill 283,667 283,667 Intangible assets, net of accumulated amortization 105,281 110,629 Furniture, equipment, leasehold improvements and
capitalized software, net 111,642 112,431 Operating lease right-of-use assets 50,986 51,854 Prepaid expenses and other assets 47,577 46,972 Total assets $ 2,301,536 $ 1,934,886 Liabilities and stockholders' equity Liabilities Accrued employee compensation $ 34,738 $ 73,879 Payables to broker-dealers, clearing organizations and customers 696,302 325,959 Borrowings 228,250 220,000 Income and other tax liabilities 35,503 49,267 Accounts payable, accrued expenses and other liabilities 39,115 42,584 Operating lease liabilities 63,711 64,938 Total liabilities 1,097,619 776,627 Redeemable noncontrolling interest 13,520 12,592 Stockholders' equity Common stock 124 123 Additional paid-in capital 365,428 305,923 Treasury stock (752,333 ) (694,764 ) Retained earnings 1,588,852 1,538,746 Accumulated other comprehensive income/(loss) (11,674 ) (4,361 ) Total stockholders' equity 1,190,397 1,145,667 Total liabilities, redeemable noncontrolling interest
and stockholders' equity $ 2,301,536 $ 1,934,886 Table 6: Reconciliation of Notable Items Quarter $ in thousands, except per share data (unaudited) 1Q 2026 4Q 2025 1Q 2025 Total Expenses, GAAP-basis $ 132,459 $ 133,396 $ 120,194 Exclude: Notable items Repositioning charges1 (1,484 ) (1,084 ) — Other notable items2 (656 ) — — Total Expenses, excluding notable items $ 130,319 $ 132,312 $ 120,194 Net income, GAAP-basis $ 78,107 $ 92,394 $ 15,065 Exclude: Notable items Repositioning charges1 1,484 1,084 — Other notable items2 656 — — Income tax impact from notable items (531 ) (254 ) — Reserve for uncertain tax positions
related to prior periods — (31,308 ) 54,939 Net income, excluding notable items $ 79,716 $ 61,916 $ 70,004 Operating margin, GAAP-basis 43.2 % 36.3 % 42.4 % Notable items as reconciled above 1.0 0.5 — Operating margin, excluding notable items 44.2 % 36.8 % 42.4 % Diluted EPS, GAAP-basis $ 2.20 $ 2.51 $ 0.40 Notable items as reconciled above 0.05 (0.83 ) 1.47 Diluted EPS, excluding notable items $ 2.25 $ 1.68 $ 1.87 Effective tax rate, GAAP-basis 24.8 % -15.8 % 84.3 % Notable items as reconciled above — 39.2 (57.1 ) Effective tax rate, excluding notable
items 24.8 % 23.4 % 27.2 % 1 Repositioning charges consist of severance included in employee compensation and benefits 2 Consists of legal expenses included in professional and consulting Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin Quarter In thousands (unaudited) 1Q 2026 4Q 2025 1Q 2025 Net income $ 78,107 $ 92,394 $ 15,065 Add back: Interest income (4,308 ) (5,448 ) (7,169 ) Interest expense 2,888 964 213 Provision for income taxes 25,778 (12,608 ) 81,089 Depreciation and amortization 19,210 19,606 18,236 EBITDA $ 121,675 $ 94,908 $ 107,434 Net income margin1 33.5 % 44.1 % 7.2 % Add back: Interest income (1.8 ) (2.6 ) (3.4 ) Interest expense 1.2 0.5 0.1 Provision for income taxes 11.0 (6.1 ) 38.9 Depreciation and amortization 8.2 9.4 8.7 EBITDA margin2 52.1 % 45.3 % 51.5 % 1 Net income margin is derived by dividing net income by total revenues for the applicable period. 2 EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period. Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Quarter In thousands (unaudited) 1Q 2026 4Q 2025 1Q 2025 Net cash (used in)/provided by operating activities $ (75,329 ) $ 158,632 $ 29,629 Exclude: Net change in trading
investments — (404 ) — Exclude: Net change in fail-to-deliver/receive
from broker-dealers, clearing organizations
and customers 108,529 (67,825 ) 34,399 Less: Purchases of furniture, equipment
and leasehold improvements (259 ) (3,572 ) (1,930 ) Less: Capitalization of software
development costs (17,089 ) (11,775 ) (15,031 ) Free cash flow $ 15,852 $ 75,056 $ 47,067 View source version on businesswire.com: https://www.businesswire.com/news/home/20260506184165/en/ INVESTOR RELATIONS
Stephen Davidson
MarketAxess Holdings Inc.
+1 212 813 6313
sdavidson2@marketaxess.com MEDIA RELATIONS
Marisha Mistry
MarketAxess Holdings Inc.
+1 917 267 1232
mmistry@marketaxess.com Original: MarketAxess Reports First Quarter 2026 Financial Results

MarketAxess Reports Fourth Quarter and Full Year 2025 Financial ResultsFebruary 6, 2026 6:30 AM
Business Wire
Record Revenue of $846 Million in 2025 Driven by 10% Growth in Revenue Outside U.S. Credit Products

24% Increase in Block Trading ADV to Record $5 Billion in 2025

48% Increase in Portfolio Trading ADV to Record $1.4 Billion in 2025 with Record U.S. Credit ADV & Market Share

33% Increase in Dealer-Initiated ADV in 2025

MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the fourth quarter and full year ended December 31, 2025.

4Q25 select financial and operational highlights*

Total revenues of $209.4 million increased 3.5%, and included an increase of approximately $1.6 million from the impact of foreign currency fluctuations.

Strong progress with our new initiatives across our three strategic channels:

Client-Initiated Channel - 29% increase in block trading average daily volume (“ADV”), including 21% growth in U.S. credit, 41% growth in emerging markets (record) and 43% growth in eurobonds.

Portfolio Trading Channel - 41% increase in total portfolio trading ADV to record $1.5 billion with record U.S. high-yield and record emerging markets portfolio trading ADV of $368 million and $118 million, respectively. Record U.S. credit portfolio trading market share of 21%, an increase of 440 basis points.

Dealer-Initiated Channel - 32% increase in dealer-initiated ADV to $1.8 billion, including 20% increase in dealer request for quote ("RFQ") ADV and a 185% increase in Mid-X ADV. Our Mid-X protocol in U.S. credit surpassed $3.0 billion in trading volume in December 2025.

Total expenses of $133.4 million increased 9%, and included an increase of approximately $1.3 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items,1 of $132.3 million increased 8%.

Effective tax rate of (15.8%); effective tax rate excluding notable items1 of 23.4%.

Diluted earnings-per-share (“EPS”) of $2.51 on net income of $92.4 million; Diluted EPS of $1.68 on net income of $61.9 million, each excluding notable items.1

Announced 3-year financial targets and increased stock repurchase authorizations to $505.0 million, including a $300.0 million accelerated stock repurchase ("ASR") agreement that commenced in December 2025.

Full Year 2025 select financial and operational highlights**

Record total revenues of $846.3 million increased 4% (10% outside U.S. credit), and included an increase of approximately $4.6 million from the impact of foreign currency fluctuations.

Record commission revenue, including record emerging markets (+10%), record eurobonds (+10%) and record U.S. Government bonds (+13%).

Record services revenue3 of $111.6 million, up 6%.

Strong progress with our new initiatives across our three strategic channels:

Client-Initiated Channel - 24% increase in block trading ADV to a record $5 billion, including 18% growth in U.S. credit (record), 27% growth in emerging markets (record) and 66% growth in eurobonds (record).

Portfolio Trading Channel - 48% increase in total portfolio trading ADV to record $1.4 billion with record U.S. credit portfolio trading ADV of $1.1 billion, an increase of 43%. Record U.S. credit portfolio trading market share of 19%, an increase of 270 basis points.

Dealer-Initiated Channel - 33% increase in dealer-initiated ADV to $1.7 billion, including a 29% increase in dealer RFQ ADV and a 102% increase in Mid-X ADV with the launch of the Mid-X protocol in September 2025.

Total expenses of $504.4 million increased 6%, and included an increase of approximately $4.5 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items,1 of $499.4 million increased 5%.

Diluted EPS of $6.64 on net income of $246.9 million; Diluted EPS of $7.39 on net income of $274.7 million, each excluding notable items.1

*All comparisons versus 4Q24

**All comparisons versus full year 2024

Chris Concannon, CEO of MarketAxess, commented:

“In 2025, we made significant strides in enhancing the MarketAxess advantage by expanding our global network, deepening our differentiated liquidity. We also accelerated our use of AI in enhancing the proprietary data and analytics that underpin our protocols and workflow tools for clients, helping them to be more efficient and gain deeper insights into their trading activity.

We delivered record volumes in U.S. credit and record revenue outside of U.S. credit of $406 million, a 10% increase, reflecting the strong returns generated from our investments in these areas. We also made strong progress across our three U.S. credit strategic channels: block trading ADV increased 24%, total portfolio trading ADV increased 48%, and dealer-initiated ADV increased 33%. Additionally, the Mid-X solution launched in the second half of 2025 continues to gain momentum, delivering over $3 billion in trading volume in December 2025.

The client initiatives that we expect to deliver in 2026 and beyond include enhancements to our X-Pro platform and our automation suite, as well as the launch of new solutions that allow dealers to send axes directly to investor clients. These enhancements are progressing well and we expect them to drive market share and revenue growth consistent with our medium-term financial targets."

Table 1: 4Q25 and full year 2025 select financial results

Quarter

% Change

Full Year

% Change

$ in millions, except per share data (unaudited)

4Q 2025

3Q 2025

4Q 2024

QoQ

YoY

FY 2025

FY 2024

YoY

Selected GAAP-basis financial results

Revenues

$

209

$

209

$

202

—

%

3

%

$

846

$

817

4

%

Expenses

133

123

122

8

9

504

476

6

Net Income

92

68

65

35

42

247

274

(10

)

Diluted EPS

2.51

1.84

1.73

36

45

6.64

7.28

(9

)

Net Income Margin

44.1

%

32.7

%

32.2

%

NM

NM

29.2

%

33.6

%

NM

Selected GAAP-basis financial results ex-notable items (non-GAAP)1

Revenues

209

209

202

—

3

846

817

4

Expenses

132

123

122

7

8

499

476

5

Net Income

62

68

65

(9

)

(5

)

275

274

—

Diluted EPS

1.68

1.84

1.73

(9

)

(3

)

7.39

7.28

2

Other Non-GAAP financial measures

EBITDA2

95

108

97

(12

)

(2

)

421

410

3

EBITDA Margin2

45.3

%

51.5

%

47.8

%

(620

)

bps

(250

)

bps

49.7

%

50.2

%

(50)

bps

NM - not meaningful

4Q25 overview of results

Table 1A: Notable items1

Quarter

Full Year

4Q 2025

3Q 2025

4Q 2024

FY 2025

FY 2024

$ in millions, except per share data (unaudited)

Repositioning charges

$

1.1

$

—

$

—

$

5.1

$

—

Acquisition-related charge/(credit)

—

—

—

0.6

—

Notable items (pre-tax)

1.1

—

—

5.7

—

Income tax impact from notable items

(0.3

)

—

—

(1.5

)

—

Reserve for uncertain tax positions related to prior periods

(31.3

)

—

—

23.6

—

Total notable items

$

(30.5

)

$

—

$

—

$

27.8

$

—

EPS impact

$

(0.83

)

$

—

$

—

$

0.75

$

—

Notable items1

Notable items in 4Q25 include repositioning charges of $1.1 million, which consisted of severance costs related to changes in management structure, and a benefit to the reserve for uncertain tax positions of approximately $31.3 million related to prior periods.

Revenue

Total revenues of $209.4 million increased 3.5% compared to the prior year and included RFQ-hub revenues of approximately $3.7 million and a $1.6 million increase from the impact of foreign currency fluctuations.

Commission revenue

Table 1B: 4Q25 variable transaction fees per million (FPM)

Quarter

% Change

Full Year

% Change

4Q 2025

3Q 2025

4Q 2024

QoQ

YoY

FY 2025

FY 2024

YoY

AVG. VARIABLE TRANS. FEE PER MILLION (FPM)

Total Credit

$

138

$

140

$

150

(1

)

%

(8

)

%

$

139

$

150

(7

)

%

Total Rates

4.79

4.21

4.31

14

11

4.28

4.39

(3

)

Credit

Total credit commission revenue of $165.2 million (including $32.8 million in fixed-distribution fees) increased $3.0 million, or 2%, compared to $162.2 million (including $32.8 million in fixed-distribution fees) in the prior year, and was consistent with 3Q25 levels. An 11% increase in total credit ADV compared to the prior year, driven by growth in market volumes, was partially offset by an 8% decrease in total credit variable transaction fee per million (“FPM”). The 2% increase in total credit commission revenue was driven by a 7% increase in emerging markets and eurobonds commission revenue, reflecting continued product and geographic diversification. The decline in 4Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to protocol mix.

Rates

Total rates commission revenue of $6.8 million decreased $0.5 million, or 7%, compared to the prior year, and increased 2% from 3Q25 levels. A 17% decrease in total rates ADV compared to the prior year was partially offset by an 11% increase in FPM.

Other

Record total other commission revenue of $9.4 million increased $4.1 million, or 79%, compared to the prior year, driven by the inclusion of approximately $3.4 million from RFQ-Hub, majority control of which was acquired in 2Q25.

Services revenue

Services revenue3 of $28.1 million increased $0.4 million, or 2%, compared to the prior year.

Information services

Information services revenue of $13.5 million increased $0.3 million, or 2%, compared to the prior year. The increase was principally driven by an increase of $0.3 million from the impact of foreign currency fluctuations.

Post-trade services

Post-trade services revenue of $11.0 million increased $0.1 million, or 1%, compared to the prior year principally due to an increase of $0.6 million from the impact of foreign currency fluctuations, partially offset by lower net contract revenue.

Technology services

Total technology services revenue of $3.6 million increased $0.1 million, or 2%, compared to the prior year. The increase was driven by connectivity fees from RFQ-hub, majority control of which was acquired in 2Q25.

Expenses

Total expenses of $133.4 million increased 9% from the prior year, including approximately $3.5 million of RFQ-hub expenses and an increase of $1.3 million from the impact of foreign currency fluctuations.

Non-operating

Other income (expense): Other income was $3.8 million, down from $4.6 million in the prior year. The decrease was driven by lower interest income due to a decrease in interest rates and higher interest expense due to borrowings on the Company's credit facility that were used, along with cash on hand, to fund the ASR, partially offset by unrealized gains on investments compared to unrealized losses in the prior year.

Tax rate: The effective tax rate was (15.8%), compared to 23.0% in the prior year. The effective tax rate excluding notable items1 was 23.4%.

Capital

The Company had $678.9 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of December 31, 2025, down from $698.6 million as of December 31, 2024. The Company had $220.0 million in borrowings outstanding under the Company’s credit facility as of December 31, 2025, as compared to no borrowings outstanding as of December 31, 2024.

In December 2025, the Board of Directors authorized the repurchase of up to $400.0 million of additional shares of MarketAxess common stock. Following the new authorization, the Company entered into an ASR agreement to repurchase, in aggregate, $300.0 million of MarketAxess common stock. Upon execution of the ASR, a total of 1,386,001 shares were delivered, representing 80% of the total shares that the Company expected to receive under the ASR based on the market price of the Company's common stock on the date of execution. Final settlement of the ASR occurred on February 4, 2026 with the delivery of 359,782 additional shares. For the full year 2025, a total of 1,980,715 shares were repurchased at a cost of $360.0 million. As of January 31, 2026, $205.0 million remained under the Board of Directors’ share repurchase authorizations.

The Board declared a quarterly cash dividend of $0.78 per share, payable on March 4, 2026 to stockholders of record as of the close of business on February 18, 2026.

Other

Employee headcount was 869 as of December 31, 2025, down from 891 as of December 31, 2024 and 896 as of September 30, 2025.

Full Year 2026 Guidance4

For the full year 2026, the Company is providing the following guidance:

Services revenue3 is expected to grow in the mid-single digits (percent).

Expenses, excluding notable items, are expected to be in the range of $530.0 million to $545.0 million. Based on the midpoint of the stated guidance range, total expenses are expected to increase by 8%.

The effective tax rate is expected to be between 24.0% and 26.0%.

Capital expenditures to support new protocols, products and trading platform enhancements are expected to be in the range of $65.0 million to $75.0 million.

1

See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 6 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

2

EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 7 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

3

Services revenue is defined as combined information, post-trade and technology services revenue.

4

The Company's guidance for full year 2026 is based on foreign exchange rates as of December 31, 2025, and assumes a constant business portfolio.

Non-GAAP financial measures and other items

To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) selected GAAP-basis financial results, each excluding notable items, to their most directly comparable GAAP measure; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure. The Company does not reconcile its forward-looking non-GAAP financial measures, including the 2026 expense guidance, to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides forward-looking non-GAAP financial measures that it believes will be achieved, however, it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

Webcast and conference call information

Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer, will host a conference call to discuss the Company’s financial results and outlook on Friday, February 6, 2026 at 10:00 a.m. ET. To access the conference call, please dial +1-800-715-9871 (U.S.) or +1-646-307-1963 (International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement.

General Notes Regarding the Data Presented

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance, including the full year 2026 guidance included in this press release. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the divergence of U.K. and European Union legal and regulatory requirements following the U.K.’s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess.

Table 2: Consolidated Statements of Operations

Three Months Ended

Year Ended

December 31,

December 31,

In thousands, except per share data (unaudited)

2025

2024

% Change

2025

2024

% Change

Revenues

Commissions

$

181,339

$

174,766

4

%

$

734,623

$

711,710

3

%

Information services

13,454

13,155

2

53,230

50,540

5

Post-trade services

11,034

10,975

1

44,491

42,487

5

Technology services

3,582

3,508

2

13,924

12,360

13

Total revenues

209,409

202,404

3

846,268

817,097

4

Expenses

Employee compensation and benefits

61,402

59,395

3

248,537

235,880

5

Depreciation and amortization

19,606

18,540

6

76,699

73,824

4

Technology and communications

20,864

18,791

11

78,294

72,166

8

Professional and consulting fees

10,505

6,329

66

31,487

27,382

15

Occupancy

3,804

3,716

2

15,038

14,690

2

Marketing and advertising

3,842

3,972

(3

)

11,204

11,713

(4

)

Clearing costs

4,003

4,443

(10

)

16,583

17,863

(7

)

General and administrative

9,370

7,242

29

26,588

22,709

17

Total expenses

133,396

122,428

9

504,430

476,227

6

Operating income

76,013

79,976

(5

)

341,838

340,870

—

Other income (expense)

Interest income

5,448

6,719

(19

)

24,397

26,046

(6

)

Interest expense

(964

)

(318

)

203

(1,487

)

(1,601

)

(7

)

Equity in earnings of unconsolidated affiliate

—

331

(100

)

457

1,395

(67

)

Other, net

(711

)

(2,113

)

(66

)

1,790

(6,164

)

NM

Total other income (expense)

3,773

4,619

(18

)

25,157

19,676

28

Income before income taxes

79,786

84,595

(6

)

366,995

360,546

2

Provision for income taxes

(12,608

)

19,456

(165

)

120,083

86,365

39

Net income

$

92,394

$

65,139

42

$

246,912

$

274,181

(10

)

Less: income attributable to noncontrolling interest

(157

)

—

NM

(285

)

—

NM

Net income available for common stockholders

$

92,237

$

65,139

42

$

246,627

$

274,181

(10

)

Per Share Data:

Net income per common share

Basic

$

2.52

$

1.74

$

6.66

$

7.29

Diluted

$

2.51

$

1.73

$

6.64

$

7.28

Cash dividends declared per common share

$

0.76

$

0.74

$

3.04

$

2.96

Weighted-average common shares:

Basic

36,601

37,479

37,056

37,600

Diluted

36,683

37,601

37,137

37,672

NM - not meaningful

Table 3: Commission Revenue Detail

In thousands, except fee per million data (unaudited)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

% Change

2025

2024

% Change

Variable transaction fees

Credit

$

132,358

$

129,351

2

%

$

541,986

$

533,363

2

%

Rates

6,695

7,262

(8

)

28,198

25,165

12

Other

9,382

5,235

79

30,264

20,016

51

Total variable transaction fees

148,435

141,848

5

600,448

578,544

4

Fixed distribution fees

Credit

32,802

32,849

—

133,820

132,898

1

Rates

102

69

48

355

268

32

Total fixed distribution fees

32,904

32,918

—

134,175

133,166

1

Total commission revenue

$

181,339

$

174,766

4

$

734,623

$

711,710

3

Average variable transaction fee per million

Credit

$

138

$

150

(8

)

%

$

139

$

150

(7

)

%

Rates

4.79

4.31

11

4.28

4.39

(3

)

Table 4: Trading Volume Detail*

Three Months Ended December 31,

In millions (unaudited)

2025

2024

% Change

Volume

ADV

Volume

ADV

Volume

ADV

Credit

High-grade

$

424,563

$

6,848

$

400,129

$

6,454

6

%

6

%

High-yield

95,650

1,543

83,373

1,345

15

15

Emerging markets

247,140

3,986

214,439

3,459

15

15

Eurobonds

154,061

2,407

128,064

2,001

20

20

Other credit

37,086

597

38,698

624

(4

)

(4

)

Total credit trading

958,500

15,381

864,703

13,883

11

11

Rates

U.S. government bonds

1,352,808

21,819

1,608,995

25,952

(16

)

(16

)

Agency and other government bonds

43,787

686

76,221

1,195

(43

)

(43

)

Total rates trading

1,396,595

22,505

1,685,216

27,147

(17

)

(17

)

Total trading

$

2,355,095

$

37,886

$

2,549,919

$

41,030

(8

)

(8

)

Number of U.S. Trading Days1

62

62

Number of U.K. Trading Days2

64

64

Year Ended December 31,

In millions (unaudited)

2025

2024

% Change

Volume

ADV

Volume

ADV

Volume

ADV

Credit

High-grade

$

1,786,664

$

7,175

$

1,711,275

$

6,845

4

%

5

%

High-yield

376,772

1,513

334,761

1,339

13

13

Emerging markets

979,903

3,935

859,412

3,438

14

14

Eurobonds

605,623

2,403

508,093

2,008

19

20

Other credit

153,869

617

135,975

543

13

14

Total credit trading

3,902,831

15,643

3,549,516

14,173

10

10

Rates

U.S. government bonds

6,322,098

25,390

5,511,045

22,044

15

15

Agency and other government bonds

272,951

1,084

227,614

902

20

20

Total rates trading

6,595,049

26,474

5,738,659

22,946

15

15

Total trading

$

10,497,880

$

42,117

$

9,288,175

$

37,119

13

13

Number of U.S. Trading Days1

249

250

Number of U.K. Trading Days2

252

253

1

The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.

2

The number of U.K. trading days is based on the U.K. Bank holiday schedule.

*

Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted.

Table 5: Consolidated Condensed Balance Sheet Data

As of

In thousands (unaudited)

December 31, 2025

December 31, 2024

Assets

Cash and cash equivalents

$

519,734

$

544,478

Cash segregated under federal regulations

48,722

47,107

Investments, at fair value

170,677

165,260

Accounts receivable, net

100,989

91,845

Receivables from broker-dealers, clearing organizations and customers

362,931

357,728

Goodwill

283,667

236,706

Intangible assets, net of accumulated amortization

110,629

98,078

Furniture, equipment, leasehold improvements and capitalized software, net

112,431

107,298

Operating lease right-of-use assets

51,854

58,132

Prepaid expenses and other assets

46,972

82,584

Total assets

$

1,808,606

$

1,789,216

Liabilities and stockholders' equity

Liabilities

Accrued employee compensation

$

73,879

$

68,054

Payables to broker-dealers, clearing organizations and customers

199,679

218,845

Borrowings

220,000

—

Income and other tax liabilities

49,267

3,683

Accounts payable, accrued expenses and other liabilities

42,584

37,320

Operating lease liabilities

64,938

72,654

Total liabilities

650,347

400,556

Redeemable noncontrolling interest

12,592

—

Stockholders' equity

Common stock

123

123

Additional paid-in capital

305,923

350,701

Treasury stock

(694,764

)

(333,369

)

Retained earnings

1,538,746

1,405,904

Accumulated other comprehensive income/(loss)

(4,361

)

(34,699

)

Total stockholders' equity

1,145,667

1,388,660

Total liabilities, redeemable noncontrolling interest and stockholders' equity

$

1,808,606

$

1,789,216

Table 6: Reconciliation of Notable Items

Quarter

Full Year

$ in thousands, except per share data (unaudited)

4Q 2025

3Q 2025

4Q 2024

FY 2025

FY 2024

Total Expenses, GAAP-basis

$

133,396

$

123,242

$

122,428

$

504,430

$

476,227

Exclude: Notable items

Repositioning charges1

(1,084

)

—

—

(5,054

)

—

Total Expenses, excluding notable items

$

132,312

$

123,242

$

122,428

$

499,376

$

476,227

Other income (expense), GAAP-basis

$

3,773

$

8,060

$

4,619

$

25,157

$

19,676

Exclude: Notable items

Acquisition-related charge/(credit)2

—

—

—

557

—

Other income (expense), excluding notable items

$

3,773

$

8,060

$

4,619

$

25,714

$

19,676

Net income, GAAP-basis

$

92,394

$

68,273

$

65,139

$

246,912

$

274,181

Exclude: Notable items

Repositioning charges1

1,084

—

—

5,054

—

Acquisition-related charge/(credit)2

—

—

—

557

—

Income tax impact from notable items

(254

)

—

—

(1,471

)

—

Reserve for uncertain tax positions related to prior periods

(31,308

)

—

—

23,631

—

Net income, excluding notable items

$

61,916

$

68,273

$

65,139

$

274,683

$

274,181

Diluted EPS, GAAP-basis

$

2.51

$

1.84

$

1.73

$

6.64

$

7.28

Notable items as reconciled above

(0.83

)

—

—

0.75

—

Diluted EPS, excluding notable items

$

1.68

$

1.84

$

1.73

$

7.39

$

7.28

Effective tax rate, GAAP-basis

-15.8

%

27.1

%

23.0

%

32.7

%

24.0

%

Notable items as reconciled above

39.2

—

—

(6.4

)

—

Effective tax rate, excluding notable items

23.4

%

27.1

%

23.0

%

26.3

%

24.0

%

1

Repositioning charges consist of severance included in employee compensation and benefits

2

Consists of loss on remeasurement of previous equity interest in RFQ-hub to fair value

Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin

Quarter

Full Year

In thousands (unaudited)

4Q 2025

3Q 2025

4Q 2024

FY 2025

FY 2024

Net income

$

92,394

$

68,273

$

65,139

$

246,912

$

274,181

Add back:

Interest income

(5,448

)

(5,850

)

(6,719

)

(24,397

)

(26,046

)

Interest expense

964

171

318

1,487

1,601

Provision for income taxes

(12,608

)

25,366

19,456

120,083

86,365

Depreciation and amortization

19,606

19,662

18,540

76,699

73,824

EBITDA

$

94,908

$

107,622

$

96,734

$

420,784

$

409,925

Net income margin1

44.1

%

32.7

%

32.2

%

29.2

%

33.6

%

Add back:

Interest income

(2.6

)

(2.8

)

(3.3

)

(2.9

)

(3.2

)

Interest expense

0.5

0.1

0.2

0.2

0.2

Provision for income taxes

(6.1

)

12.1

9.5

14.1

10.6

Depreciation and amortization

9.4

9.4

9.2

9.1

9.0

EBITDA margin2

45.3

%

51.5

%

47.8

%

49.7

%

50.2

%

1

Net income margin is derived by dividing net income by total revenues for the applicable period.

2

EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period.

Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

Quarter

Full Year

In thousands (unaudited)

4Q 2025

3Q 2025

4Q 2024

FY 2025

FY 2024

Net cash (used in)/provided by operating activities

$

158,632

$

90,164

$

176,248

$

382,139

$

385,237

Exclude: Net change in trading investments

(404

)

264

—

(206

)

629

Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers

(67,825

)

34,338

(51,833

)

22,965

(1,118

)

Less: Purchases of furniture, equipment and leasehold improvements

(3,572

)

(1,496

)

(215

)

(8,204

)

(9,942

)

Less: Capitalization of software development costs

(11,775

)

(11,494

)

(10,833

)

(49,810

)

(46,623

)

Free cash flow

$

75,056

$

111,776

$

113,367

$

346,884

$

328,183

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205968040/en/
INVESTOR RELATIONS

Stephen Davidson

MarketAxess Holdings Inc.

+1 212 813 6313

sdavidson2@marketaxess.com

MEDIA RELATIONS

Marisha Mistry

MarketAxess Holdings Inc.

+1 917 267 1232

mmistry@marketaxess.com

Original: MarketAxess Reports Fourth Quarter and Full Year 2025 Financial Results