10-QPeriod: Q1 FY2026

Cboe Global Markets, Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 1, 2026For Securities:CBOE

Summary

Cboe Global Markets, Inc. reported a strong first quarter for 2026, with total revenues increasing by 7% year-over-year to $1.27 billion. This growth was primarily driven by a significant 13% increase in Derivatives Markets revenue, fueled by higher transaction and clearing fees due to increased options trading volumes. The Data Vantage segment also showed robust growth, up 19%, attributed to strong demand for access and capacity fees and proprietary market data. Profitability saw a substantial boost, with net income soaring by 54% to $385.7 million, leading to a diluted EPS of $3.66, a 54% increase from the prior year. This performance was supported by a notable decrease in cost of revenues, largely due to the absence of regulatory fees that impacted the prior year, and a modest increase in operating expenses. The company also provided an optimistic outlook, announcing strategic realignment actions expected to yield significant cost savings and detailing a definitive agreement to sell its Australian and Canadian businesses.

Financial Highlights

53 data points
Beta

Revenue

$1.27B

57.3% Gross Margin

Net Income

$385.70M

30.3% Net Margin

EPS (Diluted)

$3.66

Total Assets

$11.07B

Cash & Equivalents

$2.13B

Free Cash Flow

$1.94B

Financial Statements
Beta
Revenue$1.27B
Cost of Revenue$543.90M
Gross Profit$728.90M
Operating Expenses$223.30M
Operating Income$505.60M
Interest Expense$13.30M
Net Income$385.70M
EPS (Basic)$3.67
EPS (Diluted)$3.66
Shares Outstanding (Basic)104.70M
Shares Outstanding (Diluted)105.00M

Key Highlights

  • 1Total revenues increased by 7% to $1.27 billion in Q1 2026 compared to Q1 2025.
  • 2Net income grew by a significant 54% to $385.7 million in Q1 2026.
  • 3Diluted earnings per share increased by 54% to $3.66 in Q1 2026.
  • 4Derivatives Markets revenue saw a 13% increase, driven by higher options trading volumes.
  • 5Data Vantage revenue grew by 19%, reflecting increased demand for data products.
  • 6The company announced a strategic realignment expected to generate $40-50 million in annualized cost savings.
  • 7A definitive agreement was reached to sell Cboe Australia and Cboe Canada for approximately $300 million.

Frequently Asked Questions

Cboe's revenue growth was primarily driven by increases in its Derivatives Markets segment, which saw a 13% rise in revenue due to higher transaction and clearing fees from increased options trading volumes. The Data Vantage segment also contributed significantly with a 19% revenue increase, attributed to strong demand for access and capacity fees and proprietary market data.

Cboe experienced a substantial increase in profitability. Net income grew by 54% to $385.7 million, and diluted earnings per share rose by 54% to $3.66. This improvement was supported by a 29% increase in 'revenues less cost of revenues' and a more controlled increase in operating expenses.

Cboe announced two major strategic initiatives. First, a strategic realignment expected to be completed by the end of 2026, aiming to optimize resource allocation and sharpen focus, which is projected to yield annualized pre-tax cost savings of $40 million to $50 million. Second, a definitive agreement to sell its Cboe Australia and Cboe Canada businesses to TMX Group Limited for approximately $300 million.

As of March 31, 2026, Cboe had total debt of $1.44 billion, primarily consisting of fixed-rate Senior Notes. The company reported $2.13 billion in cash and cash equivalents and had $400 million available under its Revolving Credit Facility, indicating strong liquidity. The company also noted that its Revolving Credit Facility and Cboe Clear Europe Credit Facility are expected to terminate within the next year, and it may not be able to secure replacement facilities on commercially reasonable terms.