MarketAxess Reports Third Quarter 2025 Financial Results

About this update from Marketaxess Holdings, Inc.

10% Revenue Growth Outside U.S. Credit; Continued Progress with New Initiatives Record U.S. Credit Portfolio Trading ADV; Record U.S. High-Yield Portfolio Trading Estimated Market Share of 22.6% NEW YORK --(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* Total revenues of $208.8 million increased 1% , and included an increase of approximately $1.3 million from the impact of foreign currency fluctuations. Total commission revenue of $180.2 million was in line with the prior year, including the impact of RFQ-hub. Record services revenue (combined information, post-trade and technology services revenue) of $28.7 million increased 9% . Strong progress with our new initiatives across our three strategic channels : Client-Initiated Channel - 10% growth in block trading average daily volume (“ADV”), including 20% growth in emerging markets and 58% growth in eurobonds. Portfolio Trading Channel - 20% increase in total portfolio trading ADV to $1.4 billion with record U.S. credit portfolio trading ADV of $1.1 billion , representing an increase of 16% . Dealer-Initiated Channel - 18% increase in dealer-initiated ADV to $1.5 billion . Total expenses of $123.2 million increased 3% , and included an increase of approximately $1.0 million from the impact of foreign currency fluctuations. Diluted earnings-per-share (“EPS”) of $1.84 decreased 3% . *All comparisons versus 3Q24 Chris Concannon , CEO of MarketAxess , commented : “A return to lower levels of volatility and tighter credit spreads in the third quarter, combined with historic levels of new issuance in September, dampened our market share and revenue growth in U.S. credit. Outside of U.S. credit, our revenue growth profile is strong, and we delivered 10% growth including the addition of RFQ-hub. To address our challenges in U.S. credit, we are focused on growing our targeted block trading solution in the client-initiated channel. Year-to-date, block trading ADV in U.S. credit is already 19% above full-year 2024 levels. We are also continuing to enhance our portfolio trading solution for clients, and year-to-date, our U.S. credit portfolio trading ADV is up 43% versus full-year 2024 and market share has increased approximately 210 basis points. Last, we are focused on growing our new Mid-X solution in the dealer-initiated channel, which we launched in September for U.S. credit. Year-to-date U.S. credit dealer-initiated ADV is up 29% versus full-year 2024. We have made tangible progress across our new initiatives which we believe will help drive market share and revenue growth in U.S. credit in the quarters ahead." Table 1: 3Q25 select financial results Quarter % Change YTD % Change $ in millions, except per share data (unaudited) 3Q 2025 2Q 2025 3Q 2024 QoQ YoY YTD 2025 YTD 2024 YoY Selected GAAP-basis financial results Revenues $ 209 $ 219 $ 207 (5 ) % 1 % $ 637 $ 615 4 % Expenses 123 128 120 (3 ) 3 371 354 5 Net Income 68 71 71 (4 ) (4 ) 155 209 (26 ) Diluted EPS 1.84 1.91 1.90 (4 ) (3 ) 4.14 5.55 (25 ) Net Income Margin 32.7 % 32.4 % 34.6 % +30 bps (190 ) bps 24.3 % 34.0 % NM Selected GAAP-basis financial results ex-notable items (non-GAAP)1 Revenues 209 219 207 (5 ) 1 637 615 4 Expenses 123 124 120 — 3 367 354 4 Net Income 68 74 71 (8 ) (4 ) 213 209 2 Diluted EPS 1.84 2.00 1.90 (8 ) (3 ) 5.70 5.55 3 Other Non-GAAP financial measures EBITDA2 108 111 105 (3 ) 2 326 313 4 EBITDA Margin2 51.5 % 50.5 % 50.8 % +100 bps +70 bps 51.2 % 51.0 % +20 bps NM - not meaningful 3Q25 overview of results Table 1A: Notable items1 Quarter YTD 3Q 2025 2Q 2025 3Q 2024 YTD 2025 YTD 2024 $ in millions, except per share data (unaudited) Repositioning charges $ — $ 4.0 $ — $ 4.0 $ — Acquisition-related charge/(credit) — 0.6 — 0.6 — Notable items (pre-tax) — 4.6 — 4.6 — Income tax impact from notable items — (1.2 ) — (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 Total revenues of $208.8 million increased 1% and included RFQ-hub revenues of approximately $3.5 million and a $1.3 million increase from the impact of foreign currency fluctuations. 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 Total credit commission revenue of $164.9 million (including $34.1 million in fixed-distribution fees) decreased $3.5 million , or 2% , compared to $168.4 million (including $33.6 million in fixed-distribution fees) in the prior year, and decreased 7% from 2Q25 levels. A 3% increase in total credit ADV compared to the prior year, driven by growth in market volumes, was partially offset by a 6% decrease in total credit variable transaction fee per million (“FPM”). The 2% decrease in total credit commission revenue was driven by a 7% decrease in U.S. credit commission revenue, offset by an increase in combined emerging markets and eurobonds commission revenue, up 11% , reflecting continued product and geographic diversification. The decline in 3Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to protocol mix. Rates Total rates commission revenue of $6.6 million decreased $0.5 million , or 6% , compared to the prior year, and decreased 18% from 2Q25 levels. An 8% decrease in total rates ADV compared to the prior year was partially offset by a 1% increase in FPM. Other Record total other commission revenue of $8.6 million increased $3.7 million , or 77% , compared to the prior year driven by the inclusion of approximately $3.2 million from RFQ-Hub, which was acquired in 2Q25. Services revenue Record services revenue of $28.7 million increased $2.3 million , or 9% , compared to the prior year. Information services Information services revenue of $13.8 million increased $0.8 million , or 6% , compared to the prior year. The increase was principally driven by net new data contract revenue and an increase of $0.2 million from the impact of foreign currency fluctuations. Post-trade services Post-trade services revenue of $11.3 million increased $0.9 million , or 9% , compared to the prior year mainly due to an increase of $0.5 million from the impact of foreign currency fluctuations and net new contract revenue. Technology services Total technology services revenue of $3.6 million increased $0.6 million , or 20% , compared to the prior year. The increase was driven by higher license fees of $0.3 million and connectivity fees of $0.3 million from RFQ-hub, which was acquired in 2Q25. Expenses Total expenses of $123.2 million increased 3% from the prior year, including approximately $2.9 million of RFQ-hub expenses and an increase of $1.0 million from the impact of foreign currency fluctuations. Non-operating Other income (expense): Other income was $8.1 million , up from $5.8 million in the prior year. The increase was driven by receipt of a tax credit and lower foreign exchange losses in the current quarter compared to the prior year, offset by lower interest income due to a decrease in interest rates and unrealized losses on investments compared to unrealized gains in the prior year. Tax rate: The effective tax rate was 27.1% , up from 23.0% in the prior year. The higher effective tax rate is mainly due to an increase in current period accruals for the uncertain tax position reserve established in 1Q25. Capital The Company had $630.6 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of September 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 594,714 shares were repurchased year-to-date through October 2025 at a cost of $120.0 million , including 239,026 shares repurchased during the third quarter at a cost of $45.3 million . As of October 31, 2025 , a total of $105.0 million remained under the Board of Directors’ share repurchase authorization. The Board declared a quarterly cash dividend of $0.76 per share, payable on December 3, 2025 to stockholders of record as of the close of business on November 19, 2025 . Other Employee headcount was 896 as of September 30, 2025 , up from 881 as of each of September 30 , 2024 and June 30, 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 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 Three Months Ended Nine Months Ended September 30 , September 30 , In thousands, except per share data (unaudited) 2025 2024 % Change 2025 2024 % Change Revenues Commissions $ 180,171 $ 180,392 — % $ 553,284 $ 536,944 3 % Information services 13,785 12,960 6 39,776 37,385 6 Post-trade services 11,293 10,382 9 33,457 31,512 6 Technology services 3,572 2,981 20 10,342 8,852 17 Total revenues 208,821 206,715 1 636,859 614,693 4 Expenses Employee compensation and benefits 59,982 58,431 3 187,135 176,485 6 Depreciation and amortization 19,662 18,728 5 57,093 55,284 3 Technology and communications 19,961 18,553 8 57,430 53,375 8 Professional and consulting fees 7,382 6,989 6 20,982 21,053 - Occupancy 3,859 3,835 1 11,234 10,974 2 Marketing and advertising 2,349 2,898 (19 ) 7,362 7,741 (5 ) Clearing costs 3,948 4,387 (10 ) 12,580 13,420 (6 ) General and administrative 6,099 5,839 4 17,218 15,467 11 Total expenses 123,242 119,660 3 371,034 353,799 5 Operating income 85,579 87,055 (2 ) 265,825 260,894 2 Other income (expense) Interest income 5,850 6,953 (16 ) 18,949 19,327 (2 ) Interest expense (171 ) (346 ) (51 ) (523 ) (1,283 ) (59 ) Equity in earnings of unconsolidated affiliate — 340 (100 ) 457 1,064 (57 ) Other, net 2,381 (1,105 ) NM 2,501 (4,051 ) NM Total other income (expense) 8,060 5,842 38 21,384 15,057 42 Income before income taxes 93,639 92,897 1 287,209 275,951 4 Provision for income taxes 25,366 21,408 18 132,691 66,909 98 Net income $ 68,273 $ 71,489 (4 ) $ 154,518 $ 209,042 (26 ) Less: income attributable to noncontrolling interest (97 ) — NM (128 ) — NM Net income available for common stockholders $ 68,176 $ 71,489 (5 ) $ 154,390 $ 209,042 (26 ) Per Share Data: Net income per common share Basic $ 1.84 $ 1.90 $ 4.15 $ 5.55 Diluted $ 1.84 $ 1.90 $ 4.14 $ 5.55 Cash dividends declared per common share $ 0.76 $ 0.74 $ 2.28 $ 2.22 Weighted-average common shares: Basic 37,023 37,527 37,207 37,641 Diluted 37,109 37,608 37,288 37,696 NM - not meaningful Table 3: Commission Revenue Detail In thousands, except fee per million data (unaudited) Three Months Ended September 30 , Nine Months Ended September 30 , 2025 2024 % Change 2025 2024 % Change Variable transaction fees Credit $ 130,811 $ 134,863 (3 ) % $ 409,628 $ 404,012 1 % Rates 6,549 7,018 (7 ) 21,503 17,903 20 Other 8,589 4,856 77 20,882 14,781 41 Total variable transaction fees 145,949 146,737 (1 ) 452,013 436,696 4 Fixed distribution fees Credit 34,137 33,584 2 101,018 100,049 1 Rates 85 71 20 253 199 27 Total fixed distribution fees 34,222 33,655 2 101,271 100,248 1 Total commission revenue $ 180,171 $ 180,392 — $ 553,284 $ 536,944 3 Average variable transaction fee per million Credit $ 140 $ 149 (6 ) % $ 139 $ 150 (7 ) % Rates 4.21 4.15 1 4.14 4.42 (6 ) Table 4: Trading Volume Detail* Three Months Ended September 30 , In millions (unaudited) 2025 2024 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 419,703 $ 6,558 $ 449,708 $ 7,027 (7 ) % (7 ) % High-yield 86,228 1,347 81,761 1,278 5 5 Emerging markets 243,387 3,803 213,341 3,333 14 14 Eurobonds 142,772 2,196 122,914 1,891 16 16 Other credit 40,336 631 37,566 587 7 7 Total credit trading 932,426 14,535 905,290 14,116 3 3 Rates U.S. government bonds 1,480,317 23,130 1,619,337 25,302 (9 ) (9 ) Agency and other government bonds 75,714 1,166 71,261 1,098 6 6 Total rates trading 1,556,031 24,296 1,690,598 26,400 (8 ) (8 ) Total trading $ 2,488,457 $ 38,831 $ 2,595,888 $ 40,516 (4 ) (4 ) Number of U.S. Trading Days1 64 64 Number of U.K. Trading Days2 65 65 Nine Months Ended September 30 , In millions (unaudited) 2025 2024 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 1,362,101 $ 7,284 $ 1,311,146 $ 6,974 4 % 4 % High-yield 281,122 1,503 251,388 1,337 12 12 Emerging markets 732,763 3,919 644,973 3,431 14 14 Eurobonds 451,562 2,402 380,029 2,011 19 19 Other credit 116,783 625 97,271 517 20 21 Total credit trading 2,944,331 15,733 2,684,807 14,270 10 10 Rates U.S. government bonds 4,969,290 26,574 3,902,050 20,756 27 28 Agency and other government bonds 229,164 1,218 151,393 801 51 52 Total rates trading 5,198,454 27,792 4,053,443 21,557 28 29 Total trading $ 8,142,785 $ 43,525 $ 6,738,250 $ 35,827 21 21 Number of U.S. Trading Days1 187 188 Number of U.K. Trading Days2 188 189 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) 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 charges1 — (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 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 — 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 margin1 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 margin2 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 View source version on businesswire.com : https://www.businesswire.com/news/home/20251106005809/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] Source: MarketAxess Holdings Inc.

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