Tradeweb Markets (TW) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $617.8 million, up 21.2% year-over-year (17.5% constant currency), driven by robust client activity, international momentum, and heightened market volatility.

• Net income rose 38.5% to $233.2 million; adjusted net income up 24.0% to $255.1 million; adjusted diluted EPS increased 25.6% to $1.08.

• Adjusted EBITDA margin expanded to 55.0%, up 40 bps year-over-year, with adjusted EBITDA of $339.7 million.

• International revenues grew 29.4% year-over-year, reaching $274.1 million, with strong growth across all asset classes.

• Continued investment in technology, automation, digital assets, AI, and new markets, including tokenization and partnerships.

Financial highlights

• Trading revenues increased 22.9% year-over-year to $570.8 million; total revenue up 21.2% to $617.8 million.

• Free cash flow for the trailing twelve months was $1.1 billion, up 31.5% year-over-year.

• Adjusted expenses rose 20.2% year-over-year to $298.9 million, mainly due to higher compensation and technology costs.

• Net interest income was approximately $17 million, up due to higher cash balances.

• Market data revenues declined 4.6% year-over-year due to timing shifts and amended agreements.

Outlook and guidance

• Adjusted expenses for full-year 2026 guided at $1,100–1,160 million, trending toward the top half of the range.

• Capital expenditures and capitalized software development expected at $107–117 million for 2026.

• Management anticipates continued growth driven by electronification, product innovation, and global expansion.

• Free cash flow conversion remains strong; assumed non-GAAP tax rate for 2026 is 23.5%–24.5%.

• Quarterly dividend of $0.14 per share declared for Q2 2026.