MarketAxess (MKTX) Q1 2026 earnings summary

Executive summary

• Achieved record total revenue of $233.4 million in Q1 2026, up 12% year-over-year, with strong growth in both U.S. and international markets and heightened demand for electronic trading liquidity.

• Net income surged to $78.1 million, with diluted EPS of $2.20, or $2.25 excluding notable items, reflecting a 20% increase in adjusted EPS.

• Block trading ADV rose 35% to $7 billion, and portfolio trading ADV increased 51% to $1.9 billion, both at record levels.

• Accelerated share repurchase reduced share count by 6%, supporting EPS growth.

• Continued investment in technology modernization, AI-driven analytics, and global network expansion, including the rollout of the enhanced X-Pro front end and strategic CTO hire.

Financial highlights

• Commission revenue grew 12% to $203.5 million, with emerging markets and Eurobonds accounting for significant incremental revenue.

• Services revenue increased 10% to $30 million; information services up 12%; technology services up 19%.

• Operating margin improved to 44%, or 44.2% excluding notable items, up nearly 200 basis points year-over-year.

• EBITDA margin reached 52.1%, with EBITDA of $121.7 million.

• Net income margin was 33.5%, up from 7.2% a year ago.

Outlook and guidance

• Management expects continued growth driven by new initiatives, AI-enabled data and analytics, and global network expansion.

• April saw a slowdown in trading volumes due to lower volatility and tighter credit spreads, but activity rebounded at month-end and into May.

• Launch of a new issue trading solution in partnership with DirectBooks, piloting in May and rolling out through summer, expected to address market share challenges.

• Sufficient liquidity and capital resources are expected for at least the next twelve months.