01—Abstract
Summary
Summary of the 10-Q filed May 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Cboe Global Markets, Inc. reported a strong first quarter of 2025, with total revenues reaching $1.195 billiona, 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 millionb.
Despite increased costs, particularly in liquidity payments and regulatory fees, Cboe demonstrated effective cost management with total operating expenses decreasing by 4%c. The company also returned capital to shareholders through dividends and share repurchases, underscoring a positive financial quarter.
02—Key points
Key Highlights
- Total revenues increased by 25% to $1.195 billion compared to the first quarter of 2024, driven by strong performance across key segments.
- Operating income rose by 25% to $353.9 million, reflecting improved operational efficiency and revenue growth.
- The Options segment showed a 15% increase in revenues less cost of revenues, with a 19% rise in operating income.
- North 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.
- Europe and Asia Pacific segment saw an 18% increase in revenues less cost of revenues and a substantial 116% increase in operating income.
- The company returned $66.4 million to shareholders via cash dividends in the quarter.
- Cboe maintained a strong liquidity position with $1.047 billion in cash and cash equivalents and $400 million available under its revolving credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Cboe Global Markets, Inc. kept $0.21.
- Revenue$1.20B100.0%
- Cost of revenue−$629.8M52.7%
- Gross profit$565.2M47.3%
- Operating costs−$211.3M17.7%
- Operating income$353.9M29.6%
- Interest, other & tax−$103.3M8.6%
- Net income$250.6M21.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 2, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.20B$957.20M | +24.8% |
| Cost of Revenue | $629.80M$455.10M | +38.4% |
| Gross Profit | $565.20M$502.10M | +12.6% |
| Operating Expenses | $211.30M$219.70M | −3.8% |
| Operating Income | $353.90M$282.40M | +25.3% |
| Interest Expense | $12.80M$13.00M | −1.5% |
| Net Income | $250.60M$209.50M | +19.6% |
| EPS (Basic) | $2.38$1.97 | +20.8% |
| EPS (Diluted) | $2.37$1.96 | +20.9% |
| Shares Outstanding (Basic) | 104.70M105.60M | −0.9% |
| Shares Outstanding (Diluted) | 105.10M106.10M | −0.9% |
05—Questions
Frequently Asked Questions
What were the main drivers of Cboe's revenue growth in Q1 2025?
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.
How did Cboe manage its expenses during the quarter?
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.
What is the company's outlook regarding shareholder returns?
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.
How is the restructuring of the Digital segment impacting the company's financial reporting?
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.
06—Continue