MarketAxess Reports Third Quarter 2025 Financial Results
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the third quarter ended September 30,...
10% Revenue Growth Outside U.S. Credit; Continued Progress with New Initiatives
Record U.S. Credit Portfolio Trading ADV; Record U.S. High-Yield Portfolio Trading Estimated Market Share of 22.6%
NEW YORK: MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the third quarter ended September 30, 2025.
3Q25 select financial and operational highlights*
- Total revenues of $208.8 million increased 1%, and included an increase of approximately $1.3 million from the impact of foreign currency fluctuations.
- Total commission revenue of $180.2 million was in line with the prior year, including the impact of RFQ-hub.
- Record services revenue (combined information, post-trade and technology services revenue) of $28.7 million increased 9%.
- Strong progress with our new initiatives across our three strategic channels:
- Client-Initiated Channel - 10% growth in block trading average daily volume (“ADV”), including 20% growth in emerging markets and 58% growth in eurobonds.
- Portfolio Trading Channel - 20% increase in total portfolio trading ADV to $1.4 billion with record U.S. credit portfolio trading ADV of $1.1 billion, representing an increase of 16%.
- Dealer-Initiated Channel - 18% increase in dealer-initiated ADV to $1.5 billion.
- Total expenses of $123.2 million increased 3%, and included an increase of approximately $1.0 million from the impact of foreign currency fluctuations.
- Diluted earnings-per-share (“EPS”) of $1.84 decreased 3%.
*All comparisons versus 3Q24
Chris Concannon, CEO of MarketAxess, commented:
“A return to lower levels of volatility and tighter credit spreads in the third quarter, combined with historic levels of new issuance in September, dampened our market share and revenue growth in U.S. credit. Outside of U.S. credit, our revenue growth profile is strong, and we delivered 10% growth including the addition of RFQ-hub.
To address our challenges in U.S. credit, we are focused on growing our targeted block trading solution in the client-initiated channel. Year-to-date, block trading ADV in U.S. credit is already 19% above full-year 2024 levels. We are also continuing to enhance our portfolio trading solution for clients, and year-to-date, our U.S. credit portfolio trading ADV is up 43% versus full-year 2024 and market share has increased approximately 210 basis points. Last, we are focused on growing our new Mid-X solution in the dealer-initiated channel, which we launched in September for U.S. credit. Year-to-date U.S. credit dealer-initiated ADV is up 29% versus full-year 2024.
We have made tangible progress across our new initiatives which we believe will help drive market share and revenue growth in U.S. credit in the quarters ahead."
Table 1: 3Q25 select financial results
|
| Quarter |
| % Change | YTD |
| % Change | |||||||||||||||||||||
$ in millions, except per share data (unaudited) |
| 3Q 2025 |
| 2Q 2025 |
| 3Q 2024 |
| QoQ | YoY | YTD 2025 |
| YTD 2024 |
| YoY | ||||||||||||||
Selected GAAP-basis financial results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Revenues |
| $ | 209 |
| $ | 219 |
| $ | 207 |
|
| (5 | ) | % |
| 1 |
| % | $ | 637 |
| $ | 615 |
|
| 4 |
| % |
Expenses |
|
| 123 |
|
| 128 |
|
| 120 |
|
| (3 | ) |
|
| 3 |
|
|
| 371 |
|
| 354 |
|
| 5 |
|
|
Net Income |
|
| 68 |
|
| 71 |
|
| 71 |
|
| (4 | ) |
|
| (4 | ) |
|
| 155 |
|
| 209 |
|
| (26 | ) |
|
Diluted EPS |
|
| 1.84 |
|
| 1.91 |
|
| 1.90 |
|
| (4 | ) |
|
| (3 | ) |
|
| 4.14 |
|
| 5.55 |
|
| (25 | ) |
|
Net Income Margin |
|
| 32.7 | % |
| 32.4 | % |
| 34.6 | % | +30 |
| bps |
| (190 | ) | bps |
| 24.3 | % |
| 34.0 | % | NM |
|
| ||
Selected GAAP-basis financial results ex-notable items (non-GAAP)1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Revenues |
|
| 209 |
|
| 219 |
|
| 207 |
|
| (5 | ) |
|
| 1 |
|
|
| 637 |
|
| 615 |
|
| 4 |
|
|
Expenses |
|
| 123 |
|
| 124 |
|
| 120 |
|
| - |
|
|
| 3 |
|
|
| 367 |
|
| 354 |
|
| 4 |
|
|
Net Income |
|
| 68 |
|
| 74 |
|
| 71 |
|
| (8 | ) |
|
| (4 | ) |
|
| 213 |
|
| 209 |
|
| 2 |
|
|
Diluted EPS |
|
| 1.84 |
|
| 2.00 |
|
| 1.90 |
|
| (8 | ) |
|
| (3 | ) |
|
| 5.70 |
|
| 5.55 |
|
| 3 |
|
|
Other Non-GAAP financial measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
EBITDA2 |
|
| 108 |
|
| 111 |
|
| 105 |
|
| (3 | ) |
|
| 2 |
|
|
| 326 |
|
| 313 |
|
| 4 |
|
|
EBITDA Margin2 |
|
| 51.5 | % |
| 50.5 | % |
| 50.8 | % | +100 |
| bps | +70 |
| bps |
| 51.2 | % |
| 51.0 | % | +20 |
| bps | |||
NM - not meaningful | ||||||||||||||||||||||||||||
3Q25 overview of results
Table 1A: Notable items1
|
| Quarter |
| YTD | ||||||||||||||
|
| 3Q 2025 |
| 2Q 2025 |
| 3Q 2024 |
| YTD 2025 | YTD 2024 | |||||||||
$ in millions, except per share data (unaudited) |
|
|
|
|
|
|
|
| ||||||||||
Repositioning charges |
| $ | - |
| $ | 4.0 |
| $ | - |
| $ | 4.0 |
|
| $ | - |
|
|
Acquisition-related charge/(credit) |
|
| - |
|
| 0.6 |
|
| - |
|
| 0.6 |
|
|
| - |
|
|
Notable items (pre-tax) |
|
| - |
|
| 4.6 |
|
| - |
|
| 4.6 |
|
|
| - |
|
|
Income tax impact from notable items |
|
| - |
|
| (1.2 | ) |
| - |
|
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