MarketAxess Reports Fourth Quarter and Full Year 2025 Financial Results

Key Terms

accelerated stock repurchase financial

A company hires an investment bank to buy back a large block of its own shares immediately, with the bank later settling the final number and cost by buying or returning shares in the market. Think of it as a company asking a broker to make a fast, bulk purchase on its behalf to quickly shrink the number of shares available. For investors this can raise per-share metrics and signal confidence, but the ultimate impact depends on the price paid and how the deal is settled.

rfq technical

A request for quote (RFQ) is a formal ask from a buyer to a seller for the current price and terms to buy or sell a specific financial instrument, like bonds, stocks, or derivatives. It matters to investors because RFQs reveal the real-time cost and availability of a trade—similar to asking several stores for the price of the same item—helping investors compare offers, find the best execution, and assess market liquidity and transaction risk.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

ebitda margin financial

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

free cash flow financial

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

variable transaction fee per million financial

A variable transaction fee per million is a charge that changes with the size or frequency of trades or transfers and is expressed as an amount for each one million units of currency handled. Think of it like a delivery charge that rises or falls depending on how much you ship: larger volumes may lower the fee per million, while smaller or riskier activity can raise it. Investors care because this fee directly affects trading costs, net returns and the profitability of high-volume strategies.

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

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 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

 

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INVESTOR RELATIONS

Stephen Davidson

MarketAxess Holdings Inc.

+1 212 813 6313

sdavidson2@marketaxess.com

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Marisha Mistry

MarketAxess Holdings Inc.

+1 917 267 1232

mmistry@marketaxess.com

Source: MarketAxess Holdings Inc.