MarketAxess Reports Third Quarter 2025 Financial Results
NEW YORK--( BUSINESS WIRE)--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*
*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
EBITDA 2
108
111
105
(3
)
2
326
313
4
EBITDA Margin 2
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 items 1
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
)
—
(1.2
)
—
Reserve for uncertain tax positions related to prior periods
—
—
—
54.9
—
Total notable items
—
$
3.4
$
—
$
58.3
$
—
EPS impact
—
$
0.09
$
—
$
1.56
$
—
Revenue
Commission revenue
Table 1B: 3Q25 variable transaction fees per million (FPM)
Quarter
% Change
YTD
% Change
3Q 2025
2Q 2025
3Q 2024
QoQ
YoY
YTD 2025
YTD 2024
YoY
AVG. VARIABLE TRANS. FEE PER MILLION (FPM)
Total Credit
$
140
$
138
$
149
1
%
(6
)
%
$
139
$
150
(7
)
%
Total Rates
4.21
4.03
4.15
4
1
4.14
4.42
(6
)
Credit
Rates
Other
Services revenue
Information services
Post-trade services
Technology services
Expenses
Non-operating
Capital
Other
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.
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 Friday, November 7, 2025 at 11:00 a.m. ET. To access the conference call, please dial +1-646-307-1963 (U.S./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; 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
2025
2024
% Change
2025
2024
% Change
$
180,171
$
180,392
—
%
$
553,284
$
536,944
3
%
13,785
12,960
6
39,776
37,385
6
11,293
10,382
9
33,457
31,512
6
3,572
2,981
20
10,342
8,852
17
208,821
206,715
1
636,859
614,693
4
59,982
58,431
3
187,135
176,485
6
19,662
18,728
5
57,093
55,284
3
19,961
18,553
8
57,430
53,375
8
7,382
6,989
6
20,982
21,053
-
3,859
3,835
1
11,234
10,974
2
2,349
2,898
(19
)
7,362
7,741
(5
)
3,948
4,387
(10
)
12,580
13,420
(6
)
6,099
5,839
4
17,218
15,467
11
123,242
119,660
3
371,034
353,799
5
85,579
87,055
(2
)
265,825
260,894
2
5,850
6,953
(16
)
18,949
19,327
(2
)
(171
)
(346
)
(51
)
(523
)
(1,283
)
(59
)
—
340
(100
)
457
1,064
(57
)
2,381
(1,105
)
NM
2,501
(4,051
)
NM
8,060
5,842
38
21,384
15,057
42
93,639
92,897
1
287,209
275,951
4
25,366
21,408
18
132,691
66,909
98
$
68,273
$
71,489
(4
)
$
154,518
$
209,042
(26
)
Less: income attributable to noncontrolling interest
(97
)
—
NM
(128
)
—
NM
$
68,176
$
71,489
(5
)
$
154,390
$
209,042
(26
)
$
1.84
$
1.90
$
4.15
$
5.55
$
1.84
$
1.90
$
4.14
$
5.55
$
0.76
$
0.74
$
2.28
$
2.22
37,023
37,527
37,207
37,641
37,109
37,608
37,288
37,696
Table 3: Commission Revenue Detail
2025
2024
% Change
2025
2024
% Change
$
130,811
$
134,863
(3
)
%
$
409,628
$
404,012
1
%
6,549
7,018
(7
)
21,503
17,903
20
8,589
4,856
77
20,882
14,781
41
145,949
146,737
(1
)
452,013
436,696
4
34,137
33,584
2
101,018
100,049
1
85
71
20
253
199
27
34,222
33,655
2
101,271
100,248
1
$
180,171
$
180,392
—
$
553,284
$
536,944
3
$
140
$
149
(6
)
%
$
139
$
150
(7
)
%
4.21
4.15
1
4.14
4.42
(6
)
Table 4: Trading Volume Detail*
2025
2024
% Change
$
419,703
$
6,558
$
449,708
$
7,027
(7
)
%
(7
)
%
86,228
1,347
81,761
1,278
5
5
243,387
3,803
213,341
3,333
14
14
142,772
2,196
122,914
1,891
16
16
40,336
631
37,566
587
7
7
932,426
14,535
905,290
14,116
3
3
1,480,317
23,130
1,619,337
25,302
(9
)
(9
)
75,714
1,166
71,261
1,098
6
6
1,556,031
24,296
1,690,598
26,400
(8
)
(8
)
$
2,488,457
$
38,831
$
2,595,888
$
40,516
(4
)
(4
)
64
64
65
65
2025
2024
% Change
$
1,362,101
$
7,284
$
1,311,146
$
6,974
4
%
4
%
281,122
1,503
251,388
1,337
12
12
732,763
3,919
644,973
3,431
14
14
451,562
2,402
380,029
2,011
19
19
116,783
625
97,271
517
20
21
2,944,331
15,733
2,684,807
14,270
10
10
4,969,290
26,574
3,902,050
20,756
27
28
229,164
1,218
151,393
801
51
52
5,198,454
27,792
4,053,443
21,557
28
29
$
8,142,785
$
43,525
$
6,738,250
$
35,827
21
21
187
188
188
189
Table 5: Consolidated Condensed Balance Sheet Data
As of
In thousands (unaudited)
September 30, 2025
December 31, 2024
Assets
Cash and cash equivalents
$
473,299
$
544,478
Cash segregated under federal regulations
48,351
47,107
Investments, at fair value
168,472
165,260
Accounts receivable, net
110,519
91,845
Receivables from broker-dealers, clearing organizations and customers
606,667
357,728
Goodwill
283,667
236,706
Intangible assets, net of accumulated amortization
115,880
98,078
Furniture, equipment, leasehold improvements and capitalized software, net
111,622
107,298
Operating lease right-of-use assets
53,412
58,132
Prepaid expenses and other assets
42,019
82,584
Total assets
$
2,013,908
$
1,789,216
Liabilities and stockholders' equity
Liabilities
Accrued employee compensation
$
60,374
$
68,054
Payables to broker-dealers, clearing organizations and customers
365,828
218,845
Income and other tax liabilities
98,744
3,683
Accounts payable, accrued expenses and other liabilities
31,907
37,320
Operating lease liabilities
66,872
72,654
Total liabilities
623,725
400,556
Redeemable noncontrolling interest
11,733
—
Stockholders' equity
Common stock
123
123
Additional paid-in capital
358,607
350,701
Treasury stock
(451,403
)
(333,369
)
Retained earnings
1,474,752
1,405,904
Accumulated other comprehensive income/(loss)
(3,629
)
(34,699
)
Total stockholders' equity
1,378,450
1,388,660
Total liabilities, redeemable noncontrolling interest and stockholders' equity
$
2,013,908
$
1,789,216
Table 6: Reconciliation of Notable Items
$ in thousands, except per share data (unaudited)
3Q 2025
2Q 2025
3Q 2024
YTD 2025
YTD 2024
Total Expenses, GAAP-basis
$
123,242
$
127,598
$
119,660
$
371,034
$
353,799
Exclude: Notable items
Repositioning charges 1
—
(3,970
)
—
(3,970
)
—
Total Expenses, excluding notable items
$
123,242
$
123,628
$
119,660
$
367,064
$
353,799
Other income (expense), GAAP-basis
$
8,060
$
5,552
$
5,842
$
21,384
$
15,057
Exclude: Notable items
Acquisition-related charge/(credit) 2
—
557
—
557
—
Other income (expense), excluding notable items
$
8,060
$
6,109
$
5,842
$
21,941
$
15,057
Net income, GAAP-basis
$
68,273
$
71,180
$
71,489
$
154,518
$
209,042
Exclude: Notable items
Repositioning charges 1
—
3,970
—
3,970
—
Acquisition-related charge/(credit) 2
—
557
—
557
—
Income tax impact from notable items
—
(1,218
)
—
(1,218
)
—
Reserve for uncertain tax positions related to prior periods
—
—
—
54,939
—
Net income, excluding notable items
$
68,273
$
74,489
$
71,489
$
212,766
$
209,042
Diluted EPS, GAAP-basis
$
1.84
$
1.91
$
1.90
$
4.14
$
5.55
Notable items as reconciled above
—
0.09
—
1.56
—
Diluted EPS, excluding notable items
$
1.84
$
2.00
$
1.90
$
5.70
$
5.55
Effective tax rate, GAAP-basis
27.1
%
26.9
%
23.0
%
46.2
%
24.2
%
Notable items as reconciled above
—
—
—
(19.1
)
—
Effective tax rate, excluding notable items
27.1
%
26.9
%
23.0
%
27.1
%
24.2
%
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
In thousands (unaudited)
3Q 2025
2Q 2025
3Q 2024
YTD 2025
YTD 2024
Net income
$
68,273
$
71,180
$
71,489
$
154,518
$
209,042
Add back:
Interest income
(5,850
)
(5,930
)
(6,953
)
(18,949
)
(19,327
)
Interest expense
171
139
346
523
1,283
Provision for income taxes
25,366
26,236
21,408
132,691
66,909
Depreciation and amortization
19,662
19,195
18,728
57,093
55,284
EBITDA
$
107,622
$
110,820
$
105,018
$
325,876
$
313,191
Net income margin 1
32.7
%
32.4
%
34.6
%
24.3
%
34.0
%
Add back:
Interest income
(2.8
)
(2.7
)
(3.4
)
(3.0
)
(3.1
)
Interest expense
0.1
0.1
0.2
0.1
0.2
Provision for income taxes
12.1
12.0
10.3
20.8
10.9
Depreciation and amortization
9.4
8.7
9.1
9.0
9.0
EBITDA margin 2
51.5
%
50.5
%
50.8
%
51.2
%
51.0
%
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
In thousands (unaudited)
3Q 2025
2Q 2025
3Q 2024
YTD 2025
YTD 2024
Net cash (used in)/provided by operating activities
$
90,164
$
103,714
$
95,089
$
223,507
$
208,989
Exclude: Net change in trading investments
264
(66
)
784
198
629
Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers
34,338
22,053
2,578
90,790
50,715
Less: Purchases of furniture, equipment and leasehold improvements
(1,496
)
(1,206
)
(835
)
(4,632
)
(9,727
)
Less: Capitalization of software development costs
(11,494
)
(11,510
)
(11,331
)
(38,035
)
(35,790
)
Free cash flow
$
111,776
$
112,985
$
86,285
$
271,828
$
214,816