10-QPeriod: Q1 FY2025

Cboe Global Markets, Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 2, 2025For Securities:CBOE

Summary

Cboe Global Markets, Inc. reported a strong first quarter of 2025, with total revenues reaching $1.195 billion, a significant 25% increase year-over-year. This growth was primarily driven by robust performance in its Derivatives Markets and Cash and Spot Markets segments, fueled by higher trading volumes across various asset classes and an increase in the Section 31 fee rate. The company's operating income also saw a substantial jump of 25% to $353.9 million. Despite increased costs, particularly in liquidity payments and regulatory fees, Cboe demonstrated effective cost management with total operating expenses decreasing by 4%. The company also returned capital to shareholders through dividends and share repurchases, underscoring a positive financial quarter.

Financial Highlights

53 data points
Beta

Revenue

$1.20B

47.3% Gross Margin

Net Income

$250.60M

21.0% Net Margin

EPS (Diluted)

$2.37

Total Assets

$8.67B

Cash & Equivalents

$1.05B

Free Cash Flow

$898.20M

Financial Statements
Beta
Revenue$1.20B
Cost of Revenue$629.80M
Gross Profit$565.20M
Operating Expenses$211.30M
Operating Income$353.90M
Interest Expense$12.80M
Net Income$250.60M
EPS (Basic)$2.38
EPS (Diluted)$2.37
Shares Outstanding (Basic)104.70M
Shares Outstanding (Diluted)105.10M

Key Highlights

  • 1Total revenues increased by 25% to $1.195 billion compared to the first quarter of 2024, driven by strong performance across key segments.
  • 2Operating income rose by 25% to $353.9 million, reflecting improved operational efficiency and revenue growth.
  • 3The Options segment showed a 15% increase in revenues less cost of revenues, with a 19% rise in operating income.
  • 4North American Equities segment experienced a 2% increase in revenues less cost of revenues, with a significant 17% growth in operating income due to expense management.
  • 5Europe and Asia Pacific segment saw an 18% increase in revenues less cost of revenues and a substantial 116% increase in operating income.
  • 6The company returned $66.4 million to shareholders via cash dividends in the quarter.
  • 7Cboe maintained a strong liquidity position with $1.047 billion in cash and cash equivalents and $400 million available under its revolving credit facility.

Frequently Asked Questions

Cboe's revenue growth was primarily driven by increases in transaction and clearing fees across its Derivatives Markets and Cash and Spot Markets segments. This was fueled by higher trading volumes in options, U.S. equities, and European equities, as well as a significant increase in the Section 31 fee rate, which went from $8.00 per million to $27.80 per million dollars of covered sales.

Cboe demonstrated effective cost management, with total operating expenses decreasing by 4% to $211.3 million. This reduction was largely due to a decrease in depreciation and amortization, as well as lower travel and promotional expenses, and acquisition-related costs.

Cboe continues to prioritize returning capital to shareholders. In the first quarter of 2025, the company declared and paid cash dividends of $0.63 per share, totaling $66.4 million. Additionally, Cboe repurchased 144,753 shares of common stock for $30.0 million under its share repurchase program, with $649.8 million of authorization remaining as of March 31, 2025.

As of January 1, 2025, the company has prospectively reorganized its Digital operating segment results into the Futures reporting segment. While comparative-period results for the Digital segment have not been recast due to immateriality, the financial performance of this segment is now reported within the Futures segment.