Cboe Global Markets (CBOE) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue of $2.1 billion for 2024, up 8% year-over-year, and record adjusted diluted EPS of $8.61, up 10% year-over-year.

• Fourth quarter net revenue grew 5% to $524.5 million, with adjusted diluted EPS up 2% to $2.10.

• Growth was broad-based across derivatives, Data Vantage, and cash/spot markets, with all major business segments contributing.

• Strategic focus sharpened, with technology investments, leadership succession planning, and talent development underway.

Financial highlights

• Adjusted EBITDA for Q4 was $331.6 million, up 3% year-over-year; adjusted EBITDA margin was 63.2%.

• Adjusted operating expenses for Q4 were $204.8 million, up 7% year-over-year, mainly due to higher travel, promotional, and technology support expenses.

• Returned $454 million to shareholders in 2024 via dividends and share repurchases; $66.4 million in dividends paid in Q4.

• Ended 2024 with $880 million in adjusted cash and a leverage ratio of 1.1x; total debt at year-end was $1.45 billion.

Outlook and guidance

• 2025 organic net revenue growth expected in the mid-single-digit range; Data Vantage organic net revenue growth in the mid- to high-single-digit range.

• Adjusted expense guidance for 2025 is $837–$852 million, representing 4.8%–6.7% growth.

• CapEx guidance for 2025 is $75–$85 million; depreciation and amortization expected at $55–$59 million.

• Effective tax rate for 2025 projected at 28.5%–30.5%.