Marketaxess Holdings, Inc. · NASDAQ:MKTX
Marketaxess — Q2 2025 Earnings Presentation
25 slides from Marketaxess's earnings presentation, Aug 6, 2025
Slide 1: 2Q25 Earnings Conference Call
2Q25 Earnings Conference Call August 6, 2025
Slide 2: Update on our strategy & trading businesses
Update on our strategy & trading businesses ❖ Chris Concannon, CEO 2
Slide 3: 2Q25 highlights
2Q25 highlights¹ • 11% increase in revenue to record $219 million; 10% growth excluding FX2 FINANCIAL • 12% increase in commissions revenue to record $192 million PERFORMANCE • 11% increase in earnings per share to $1.91; $2.00 per share, or 16% increase, excluding notable items3 • $360 million in T
Slide 4: Driving growth in 2025
Driving growth in 2025: enhanced functionality, differentiated data and innovative client solutions Focusing on three strategic channels Optimizing trade execution and client workflow in key products & protocols o High-touch: rollout of block trading solutions for larger trades/EM, eurobonds, and U.
Slide 5: Continued strong growth across our key performance indicators
Continued strong growth across our key performance indicators (“KPIs”) Key Performance Indicators 2Q25 2Q24 Growth Client-Initiated1 U.S. Credit ADV $9.5B $7.8B +22% Notional Trading / ADV Record Intl. Product Trading ADV (EM & Eurobonds) $6.7B $5.4B +23% Record EM Local Markets ADV $1.7B $1.4B +22%
Slide 6: Driving growth in 2025: progress across strategic channels
Driving growth in 2025: strong progress across client-initiated, portfolio trading and dealer-initiated channels Client-Initiated Channel 2Q25 COMMENTARY¹ RECORD CLIENT-INITIATED BLOCK TRADING3 ADV • Record block trading ADV in U.S. credit, emerging markets, and 6,500 U.S. Credit Emerging Markets Eu
Slide 7: International growth
International growth: multiple levers across strategic channels driving record trading volumes 21% Growth Emerging Markets and Eurobonds Combined Record Total Trading Volume by Strategic Channel International Product % Growth 2Q25 vs. 2Q24 Trading Volume Dealer-Initiated⁴ +34% 2Q25 Portfolio Trading
Slide 8: Emerging markets: future growth driven by success in local markets
Emerging markets: future growth driven by success in local markets COMPARATIVE SIZE OF MKTX LOCAL MARKET TRADING VOLUME 1 CORPORATE & SOVEREIGN DEBT OUTSTANDING 4 $4.1 Trillion $24.4 Trillion Hard Currency (HC) Local Markets (LM) Poland Czech Republic Hungary Romania Serbia Turkey China2 South Korea
Slide 9: Review of financial results
Review of financial results ❖ Ilene Fiszel Bieler, CFO 9
Slide 10: 2Q25 financial summary
2Q25 financial summary1 (in $ thousands, except EPS data) YoY % Δ Financial results 2Q25 1Q25 2Q24 YoY % Δ 2 Notable items4 2Q25 1Q25 2Q24 ex. FX Total revenues $ 219,462 $ 208,576 $ 197,660 11 % 10 % Repositioning charges $ 4.0 — — Commissions 191,770 181,343 171,679 12 % Acquisition-related charge
Slide 11: 2Q25 commission revenue detail
2Q25 commission revenue detail1 COMMISSION REVENUE DETAIL 2Q25 PERFORMANCE 1 (in $ thousands, except transaction fees per million data) Commission Revenue 2Q25 1Q25 2Q24 YoY % Δ Credit Variable Transaction Fees $ 158,073 $ 147,991 $ 138,440 14 % • 12% growth in total credit variable commission reven
Slide 12: 2Q25 expense detail
2Q25 expense detail1 (Ex-notable items, non-GAAP2, in $ thousands) +6% +5% ex. FX 2Q25 PERFORMANCE 1 +3% (EX-NOTABLE ITEMS, NON-GAAP 2 ) +1% ex. FX $123,628 $120,194 • Total expenses of $124 million, up 6% YoY; up 5% $4,447 $5,403 $116,321 $2,952 $5,716 $4,185 $4,889 $4,122 excluding FX.3 $2,061 $3,
Slide 13: Capital management and cash flow
Capital management and cash flow (in $ millions, except shares repurchased and cash dividend data ) TTM QUARTERLY DIVIDENDS CAPITAL MANAGEMENT TTM Quarterly Dividends (in $ millions) 115 • Total cash, cash equivalents, corporate bond and U.S. 100 Treasury investments of $621 million as of June 30, 2
Slide 14: Key takeaways
Key takeaways • We are continuing to increase the pace of innovation and execution; new strategic hires expected to enhance management team and drive growth. • Record levels of ADV across most products driven by more favorable macro and impact of new initiatives. • Strong progress across three strat
Slide 15: Appendix
Appendix 15
Slide 16: Macro conditions
Macro conditions U.S. HIGH-GRADE AND U.S.HIGH-YIELD SPREAD RANGES TURNOVER IN U.S. HIGH-GRADE U.S. High-Grade Spread Range U.S. High-Yield Spread Range U.S. High-Grade Spread Range Avg. U.S. High-Yield Spread Range Avg. 55 250 120% Benchmark Spreads (bps) Annualized Turnover (%) Benchmark Spreads (b
Slide 17: Our global client network continues to expand
Our global client network continues to expand RECORD # OF ACTIVE CLIENT FIRMS RECORD CREDIT TRADE VOLUME FROM HEDGE FUND AND PRIVATE BANK CLIENTS 2,300 225,000 2,119 2,129 178,014 2,083 155,342 2,100 1,935 150,000 125,493 1,900 92,330 75,000 1,700 -- 1,500 -- 2Q22 2Q23 2Q24 2Q25 2Q22 2Q23 2Q24 2Q25
Slide 18: Continued strong contribution from our emerging markets franchise
Continued strong contribution from our emerging markets franchise 2Q25 COMMENTARY¹ RECORD EMERGING MARKETS TRADE VOLUME BY REGION North America EMEA APAC LATAM • Record 1,535 active client firms. 275 Q2 YoY Growth: 18% Trade Volume (in $ billions) • 16% growth in commission revenue (record). 3-Year
Slide 19: Integrating our full ecosystem through automation
Integrating our full ecosystem through automation 2Q25 COMMENTARY¹ RECORD ACTIVE AUTO-X CLIENT FIRMS • Record 252 active automation client firms, up 2%. 300 Q2 YoY Growth: 2% 3-Year CAGR: 28% # Active Client Firms 225 • Record automation volume of ~$114 billion, up 29%, and record trade count of ~67
Slide 20: Reconciliation of certain GAAP-basis financial results, excluding notable items
Reconciliation of certain GAAP-basis financial results, excluding notable items Reconciliation of certain GAAP-basis financial results, excluding notable items 2Q25 1Q25 2Q24 YTD 2025 YTD 2024 Total expenses, GAAP-basis $ 127,598 $ 120,194 $ 116,321 $ 247,792 $ 234,139 Exclude: Notable items Reposit
Slide 21: Constant currency FX impacts
Constant currency FX impacts %Δ Constant currency FX impacts 2Q25 2Q24 FX Impact Ex. FX GAAP basis Revenue $ 219,462 $ 197,660 $ 2,091 10% Expenses 127,598 116,321 1,698 8% Operating income 91,864 81,339 393 12% Non-GAAP basis, excluding notable items1 Revenue $ 219,462 $ 197,660 $ 2,091 10% Expense
Slide 22: Reconciliation of net income to EBITDA
Reconciliation of net income to EBITDA and net income margin to EBITDA margin Reconciliation of net income to EBITDA and net Income margin to EBITDA margin 2Q25 1Q25 2Q24 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,
Slide 23: Reconciliation of TTM net cash provided by operating activities to TTM free cash flow
Reconciliation of TTM net cash provided by operating activities to TTM free cash flow Reconciliation of TTM net cash provided by operating activities to TTM free cash flow 1 2Q25 1Q25 2Q24 Net cash provided by operating activities $ 404,680 $ 419,815 $ 334,746 Exclude: Net change in trading investme
Slide 24: Disclosures
Disclosures ©2025 MarketAxess Holdings Inc. (the "Company"). MarketAxess Corporation is a member of FINRA and SIPC. MarketAxess Canada Company is a member of the Canadian Investment Regulatory Organization (CIRO). MarketAxess Europe Limited (04017160), MarketAxess Capital Limited (09777893), and Mar
Slide 25: Now you're in the market
\Y, NX Now you're in the market”