MarketAxess (MKTX) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $846.3 million in 2025, with 10% growth outside U.S. credit and strong performance in new trading protocols and automation initiatives.

• Block trading ADV increased 24%–29% year-over-year, with record activity in emerging markets and significant gains in U.S. high-yield and portfolio trading.

• EPS reached $6.64; adjusted EPS excluding notable items was $7.39, up 2% year-over-year.

• Free cash flow hit a record $347 million, with $474 million returned to investors via share repurchases and dividends, including a $300 million ASR.

• Investments in technology, automation, and multi-protocol solutions are positioning the company to meet three-year growth targets.

Financial highlights

• Fourth quarter revenue grew 3.5% to $209.4 million, with a $2 million FX benefit.

• Diluted EPS was $2.51, or $1.68 excluding notable items; net income for 2025 was $246.9 million.

• Total commissions revenue increased 4% to $181 million; services revenue rose 2% to $28 million in Q4 and reached $111.6 million for the year.

• FY 2025 EBITDA margin was 49.7%; net income margin was 29.2%–41.4%.

• Free cash flow for 2025 was $346.9 million, with capital expenditures of $61 million.

Outlook and guidance

• 2026 services revenue expected to grow mid-single digits; total expenses (ex-notables) guided to $530–$545 million, up ~8% at midpoint.

• Capital expenditures projected at $65–$75 million, with 80% for software development.

• Effective tax rate expected between 24% and 26%.

• Three-year targets reaffirmed: 8–9% average annual revenue growth and 75–125 bps operating margin expansion.