MarketAxess Reports Second Quarter 2025 Financial Results

MarketAxess Reports Second Quarter 2025 Financial Results

11% Increase in Revenue to Record $219.5 Million; Strong Progress with New Initiatives to Drive Growth

Record Block Trading ADV, Record Total Portfolio Trading ADV and Strong Growth in Dealer-Initiated ADV

EPS of $1.91; $2.00 Excluding Notable Items¹

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 second quarter ended June 30, 2025.

2Q25 select financial and operational highlights*

11% increase intotal revenues to a record$219.5 million, including anapproximately $2.1 million increasefrom the impact of foreign currency fluctuations.

Record total commission revenue of $191.8 million increased 12%, driven by record total credit commission revenue, up 10%, and record total rates commission revenue, up 40%.

Record emerging markets (+16%), record eurobonds (+22%) and record U.S. government bond (+49%) commission revenue.

Record services revenue (combined information, post-trade and technology services revenue) of $27.7 million, up 7%.

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

Client-Initiated Channel – strong growth in block trading average daily volume (“ADV”) with record ADV across U.S. credit block trading (+37%), emerging markets (+27%), and eurobonds (+100%).

Portfolio Trading Channel–69% increase in total portfolio trading ADV to record $1.5 billion.

Dealer-Initiated Channel – dealer-initiated ADV increased 40% to $1.8 billion, including record levels of eurobonds activity.

Total expenses of $127.6 million increased 10%,includingan approximately $1.7 million increase from the impact of foreign currency fluctuations. Total expenses excluding notable items¹of $123.6 million increased 6%.

Diluted earnings-per-share (“EPS”) of $1.91 increased 11%;EPS excluding notable items¹ of $2.00 increased 16%.

*All comparisons versus 2Q24

Chris Concannon, CEO of MarketAxess, commented:

“In the second quarter, we made significant strides in enhancing our client franchise, increasing client engagement with X-Pro, and delivering on our new initiatives across our client-initiated, portfolio trading and dealer-initiated channels. Strong progress with our new initiatives, combined with a favorable market backdrop, helped drive record levels of revenue and ADV across most product areas and regions in the quarter.

As we move through the back-half of 2025, we are focused on growing our targeted block trading solution in the client-initiated channel, continuing to enhance our portfolio trading solution for clients, and launching our new Mid-X solution in the dealer-initiated channel. Additionally, over the last several months, we have made several strategic hires in key roles that we believe will enhance our ability to drive growth.

We are executing our long-term strategy to drive growth, we are showing strong progress with our new initiatives, and we now have key leaders in place to help drive growth in 2025 and beyond.”

Table 1: 2Q25 select financial results

Quarter % Change YTD % Change

$ in millions, except per share data (unaudited)
2Q 2025

1Q 2025

2Q 2024

QoQ

YoY

YTD 2025

YTD 2024

YoY

Selected GAAP-basis financial results

Revenues
$

219

$

209

$

198

5

%

11

%

$

428

$

408

5

%

Expenses

128

120

116

6

10

248

234

6

Net Income

71

15

65

NM

10

86

138

(37

)

Diluted EPS

1.91

0.40

1.72

NM

11

2.31

3.64

(37

)

Net Income Margin

32.4

%

7.2

%

32.9

%

NM

(50

)

bps

20.1

%

33.7

%

NM

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

Revenues

219

209

198

5

11

428

408

5

Expenses

124

120

116

3

6

244

234

4

Net Income

74

70

65

6

15

144

138

5

Diluted EPS

2.00

1.87

1.72

7

16

3.87

3.64

6

Other Non-GAAP financial measures

EBITDA²

111

107

99

3

12

218

208

5

EBITDA Margin²

50.5

%

51.5

%

50.0

%

(100

)

bps

+50

bps

51.0

%

51.0

%

–

bps

2Q25 overview of results

Table 1A: Notable items¹

Quarter
YTD

2Q 2025

1Q 2025
2Q 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

—

54.9

—

Total notable items
$

3.4

$

54.9

$

—

$

58.3

$

—

EPS impact
$

0.09

$

1.47

$

—

$

1.56

$

—

Notable items¹

Notable items in 2Q25 include repositioning charges of $4.0 million, which were principally severance costs related to changes in management structure, and an acquisition-related charge of $0.6 million.

Commission revenue

Table 1B: 2Q25 variable transaction fees per million (FPM)

Quarter % Change YTD % Change

2Q25

1Q25

2Q24

QoQ

YoY

YTD 2025

YTD 2024

YoY

AVG. VARIABLE TRANS. FEE PER MILLION (FPM)

Total Credit
$

138

$

139

$

148

(1

)

%

(7

)

%

$

139

$

151

(8

)

%

Total Rates
4.03

4.20

4.45

(4
)
(9
)
4.11

4.61

(11
)

Credit

Record total credit commission revenue of $176.6million (including $33.6million in fixed-distribution fees) increased $15.8million, or 10%, compared to $160.8million (including $33.2 million in fixed-distribution fees) in the prior year, and increased 4% from 1Q25 levels. A 22% increase in total credit ADV compared to the prior year, driven in part by strong growth in market volumes, was partially offset by a 7% decrease in total credit variable transaction fee per million (“FPM”). The 10% increase in total credit commission revenue was driven by strong growth in U.S. credit commission revenue, up 7%, record emerging markets commission revenue, up 16%, and record eurobonds commission revenue, up 22%, reflecting continued product and geographic diversification. The decline in 2Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to protocol mix.

Rates

Record total rates commission revenue of $8.1 million increased $2.3 million, or 40%,compared to the prior year, and increased 16% from 1Q25 levels. A 58% increase in total rates ADVcompared to the prior year, driven in part by strong growth in market volumes, was partially offset by a 9% decrease in FPM. The decrease in 2Q25 total rates FPM both year-over-year and quarter-over-quarter was driven by the impact of product mix.

Other

Record total other commission revenue of $7.1million increased $2.0 million, or 39%,compared to the prior year driven by the inclusion of approximately $1.8million from RFQ-Hub, which was acquired in mid-May 2025.

Services revenue

Record services revenue of $27.7million increased $1.7million, or 7%, compared to the prior year, driven by growth across information, post-trade and technology services.

Information services

Information services revenue of $13.1million increased $0.5million, or 4%, compared to the prior year. The increase was principally driven by an increase of $0.4 million from the impact of foreign currency fluctuations and net new data contract revenue.

Post-trade services

Post-trade services revenue of $11.1 million increased $0.7 million, or 7%, compared to the prior year mainly due to an increase of $0.6 million from the impact of foreign currency fluctuations and net new contract revenue.

Technology services

Total technology services revenue of $3.5million increased $0.5 million, or 16%, compared to the prior year.The increase was driven by higher license fees of $0.3 million andconnectivity fees of $0.2 million from RFQ-hub, which was acquired in mid-May 2025.

Expenses

Total expenses of $127.6 million increased 10% from the prior year, including an increase of $1.7 million from the impact of foreign currency fluctuations. Total expenses excluding notable items¹were $123.6 million, an increase of 6%.

Non-operating

Other income (expense): Other income was $5.6million, up from $5.0million in the prior year. The increase was driven by foreign exchange gains in the current quarter compared to foreign exchange losses in the prior quarter, offset by acquisition-related charges.

Tax rate: The effective tax rate was 26.9%, up from 24.8% in the prior year. The higher effective tax rate is due to an increase in current period accruals for the uncertain tax position reserve established in 1Q25.

Capital

The Company had $620.9 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of June 30, 2025, down from $698.6 million as of December 31, 2024.There were no outstanding borrowings under the Company’s credit facility.

A total of 379,667 shares were repurchased year-to-date through July 2025 at a cost of $80.0 million, including 167,783 shares repurchased during the second quarter at a cost of $36.7 million. As of July31, 2025, a total of $145.0 million remained under the Board of Directors’ share repurchase authorization.

The Board declared a quarterly cash dividend of $0.76 per share, payable on September 3, 2025 to stockholders of record as of the close of business on August 20, 2025.

Other

Employee headcount was 881 as of June 30, 2025, up from 864 as of June 30,2024, and up from 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

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 Wednesday, August 6, 2025 at 10:00 a.m. ET. To access the conference call, please dial 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

Three Months Ended

Six Months Ended

June 30,

June 30,

In thousands, except per share data (unaudited)

2025

2024

% Change

2025

2024

% Change

Revenues

Commissions

$

191,770

$

171,679

12

%

$

373,113

$

356,552

5

%

Information services

13,087

12,544

4

25,991

24,425

6

Post-trade services

11,076

10,400

7

22,164

21,130

5

Technology services

3,529

3,037

16

6,770

5,871

15

Total revenues

219,462

197,660

11

428,038

407,978

5

Expenses

Employee compensation and benefits

65,237

56,790

15

127,153

118,054

8

Depreciation and amortization

19,195

18,356

5

37,431

36,556

2

Technology and communications

19,421

17,771

9

37,469

34,822

8

Professional and consulting fees

7,190

7,669

(6

)

13,600

14,064

(3

)

Occupancy

3,753

3,714

1

7,375

7,139

3

Marketing and advertising

2,952

3,010

(2

)

5,013

4,843

4

Clearing costs

4,447

4,122

8

8,632

9,033

(4

)

General and administrative

5,403

4,889

11

11,119

9,628

15

Total expenses

127,598

116,321

10

247,792

234,139

6

Operating income

91,864

81,339

13

180,246

173,839

4

Other income (expense)

Interest income

5,930

6,401

(7

)

13,099

12,374

6

Interest expense

(139

)

(621

)

(78

)

(352

)

(937

)

(62

)

Equity in earnings of unconsolidated affiliate

168

354

(53

)

457

724

(37

)

Other, net

(407

)

(1,136

)

(64

)

120

(2,946

)

NM

Total other income (expense)

5,552

4,998

11

13,324

9,215

45

Income before income taxes

97,416

86,337

13

193,570

183,054

6

Provision for income taxes

26,236

21,399

23

107,325

45,501

136

Net income

$

71,180

$

64,938

10

$

86,245

$

137,553

(37

)

Less: income attributable to noncontrolling interest

(31

)

—

NM

(31

)

—

NM

Net income available for common stockholders

$

71,149

$

64,938

10

$

86,214

$

137,553

(37

)

Per Share Data:

Net income per common share

Basic

$

1.91

$

1.72

$

2.31

$

3.65

Diluted

$

1.91

$

1.72

$

2.31

$

3.64

Cash dividends declared per common share

$

0.76

$

0.74

$

1.52

$

1.48

Weighted-average common shares:

Basic

37,210

37,655

37,299

37,698

Diluted

37,298

37,689

37,377

37,740

NM – not meaningful

Table 3: Commission Revenue Detail

In thousands, except fee per million data

Three Months Ended June 30,

Six Months Ended June 30,

(unaudited)

2025

2024

% Change

2025

2024

% Change

Variable transaction fees

Credit

$

142,977

$

127,645

12

%

$

278,817

$

269,149

4

%

Rates

8,035

5,719

40

14,954

10,885

37

Other

7,061

5,076

39

12,293

9,925

24

Total variable transaction fees

158,073

138,440

14

306,064

289,959

6

Fixed distribution fees

Credit

33,616

33,177

1

66,881

66,465

1

Rates

81

62

31

168

128

31

Total fixed distribution fees

33,697

33,239

1

67,049

66,593

1

Total commission revenue

$

191,770

$

171,679

12

$

373,113

$

356,552

5

Average variable transaction fee per million

Credit

$

138

$

148

(7

)

%

$

139

$

151

(8

)

%

Rates

4.03

4.45

(9

)

4.11

4.61

(11

)

Table 4: Trading Volume Detail*

Three Months Ended June 30,

In millions (unaudited)

2025

2024

% Change

Volume

ADV

Volume

ADV

Volume

ADV

Credit

High-grade

$

481,090

$

7,760

$

405,440

$

6,436

19

%

21

%

High-yield

104,897

1,692

84,248

1,337

25

27

Emerging markets

249,091

4,018

210,205

3,337

18

20

Eurobonds

160,873

2,681

128,266

2,103

25

27

Other credit

39,965

644

33,376

530

20

22

Total credit trading

1,035,916

16,795

861,535

13,743

20

22

Rates

U.S. government bonds

1,906,892

30,756

1,236,917

19,634

54

57

Agency and other government bonds

87,625

1,458

48,506

792

81

84

Total rates trading

1,994,517

32,214

1,285,423

20,426

55

58

Total trading

$

3,030,433

$

49,009

$

2,146,958

$

34,169

41

43

Number of U.S. Trading Days¹

62

63

Number of U.K. Trading Days²

60

61

Six Months Ended June 30,

In millions (unaudited)

2025

2024

% Change

Volume

ADV

Volume

ADV

Volume

ADV

Credit

High-grade

$

942,398

$

7,662

$

861,438

$

6,947

9

%

10

%

High-yield

194,894

1,585

169,627

1,368

15

16

Emerging markets

489,376

3,979

431,632

3,481

13

14

Eurobonds

308,790

2,510

257,115

2,074

20

21

Other credit

76,447

621

59,705

481

28

29

Total credit trading

2,011,905

16,357

1,779,517

14,351

13

14

Rates

U.S. government bonds

3,488,973

28,366

2,282,713

18,409

53

54

Agency and other government bonds

153,450

1,248

80,132

646

91

93

Total rates trading

3,642,423

29,614

2,362,845

19,055

54

55

Total trading

$

5,654,328

$

45,971

$

4,142,362

$

33,406

37

38

Number of U.S. Trading Days¹

123

124

Number of U.K. Trading Days²

123

124

¹ The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.

²The 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)

June 30, 2025

December 31, 2024

Assets

Cash and cash equivalents

$

462,837

$

544,478

Cash segregated under federal regulations

47,930

47,107

Investments, at fair value

169,349

165,260

Accounts receivable, net

113,242

91,845

Receivables from broker-dealers, clearing organizations and customers

559,120

357,728

Goodwill

286,020

236,706

Intangible assets, net of accumulated amortization

121,397

98,078

Furniture, equipment, leasehold improvements and capitalized software, net

109,206

107,298

Operating lease right-of-use assets

55,382

58,132

Prepaid expenses and other assets

50,455

82,584

Total assets

$

1,974,938

$

1,789,216

Liabilities and stockholders’ equity

Liabilities

Accrued employee compensation

$

48,198

$

68,054

Payables to broker-dealers, clearing organizations and customers

329,785

218,845

Income and other tax liabilities

95,197

3,683

Accounts payable, accrued expenses and other liabilities

31,628

37,320

Operating lease liabilities

69,230

72,654

Total liabilities

574,038

400,556

Redeemable noncontrolling interest

14,715

—

Stockholders’ equity

Common stock

123

123

Additional paid-in capital

356,817

350,701

Treasury stock

(407,029

)

(333,369

)

Retained earnings

1,434,953

1,405,904

Accumulated other comprehensive income/(loss)

1,321

(34,699

)

Total stockholders’ equity

1,386,185

1,388,660

Total liabilities, redeemable noncontrolling interest and stockholders’ equity

$

1,974,938

$

1,789,216

Table 6: Reconciliation of Notable Items

$ in thousands, except per share data (unaudited)

2Q 2025

1Q 2025

2Q 2024

YTD 2025

YTD 2024

Total Expenses, GAAP-basis

$

127,598

$

120,194

$

116,321

$

247,792

$

234,139

Exclude: Notable items

Repositioning charges¹

(3,970

)

—

—

(3,970

)

—

Total Expenses, excluding notable items

$

123,628

$

120,194

$

116,321

$

243,822

$

234,139

Other income (expense), GAAP-basis

$

5,552

$

7,772

$

4,998

$

13,324

$

9,215

Exclude: Notable items

Acquisition-related charge/(credit)²

557

—

—

557

—

Other income (expense), excluding notable items

$

6,109

$

7,772

$

4,998

$

13,881

$

9,215

Net income, GAAP-basis

$

71,180

$

15,065

$

64,938

$

86,245

$

137,553

Exclude: Notable items

Repositioning charges¹

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

—

54,939

—

Net income, excluding notable items

$

74,489

$

70,004

$

64,938

$

144,493

$

137,553

Diluted EPS, GAAP-basis

$

1.91

$

0.40

$

1.72

$

2.31

$

3.64

Notable items as reconciled above

0.09

1.47

—

1.56

—

Diluted EPS, excluding notable items

$

2.00

$

1.87

$

1.72

$

3.87

$

3.64

Effective tax rate, GAAP-basis

26.9

%

84.3

%

24.8

%

55.4

%

24.9

%

Notable items as reconciled above

—

(57.1

)

—

(28.3

)

—

Effective tax rate, excluding notable items

26.9

%

27.2

%

24.8

%

27.1

%

24.9

%

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)

2Q 2025

1Q 2025

2Q 2024

YTD 2025

YTD 2024

Net income

$

71,180

$

15,065

$

64,938

$

86,245

$

137,553

Add back:

Interest income

(5,930

)

(7,169

)

(6,401

)

(13,099

)

(12,374

)

Interest expense

139

213

621

352

937

Provision for income taxes

26,236

81,089

21,399

107,325

45,501

Depreciation and amortization

19,195

18,236

18,356

37,431

36,556

EBITDA

$

110,820

$

107,434

$

98,913

$

218,254

$

208,173

Net income margin¹

32.4

%

7.2

%

32.9

%

20.1

%

33.7

%

Add back:

Interest income

(2.7

)

(3.4

)

(3.2

)

(3.1

)

(3.0

)

Interest expense

0.1

0.1

0.3

0.1

0.2

Provision for income taxes

12.0

38.9

10.7

25.1

11.1

Depreciation and amortization

8.7

8.7

9.3

8.8

9.0

EBITDA margin²

50.5

%

51.5

%

50.0

%

51.0

%

51.0

%

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

In thousands (unaudited)

2Q 2025

1Q 2025

2Q 2024

YTD 2025

YTD 2024

Net cash (used in)/provided by operating activities

$

103,714

$

29,629

$

118,849

$

133,343

$

113,900

Exclude: Net change in trading investments

(66

)

—

100

(66

)

(155

)

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

22,053

34,399

(3,151

)

56,452

48,137

Less: Purchases of furniture, equipment and leasehold improvements

(1,206

)

(1,930

)

(7,695

)

(3,136

)

(8,892

)

Less: Capitalization of software development costs

(11,510

)

(15,031

)

(10,496

)

(26,541

)

(24,459

)

Free cash flow

$

112,985

$

47,067

$

97,607

$

160,052

$

128,531

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805994571/en/

INVESTOR RELATIONS

Stephen Davidson

MarketAxess Holdings Inc.

+1 212 813 6313

[email protected]

MEDIA RELATIONS

Marisha Mistry

MarketAxess Holdings Inc.

+1 917 267 1232

[email protected]

KEYWORDS: United States North America New York

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