01—Abstract
Summary
Summary of the 10-Q filed October 24, 2025. Cited figures are marked; the original filing is the authoritative source.
CME Group Inc. reported revenues of $1,537.6 milliona for the third quarter of 2025, a decrease of 3% compared to the same period in 2024.
This decline was primarily driven by a 5% decrease in clearing and transaction fees, largely due to lower contract volumes across several key asset classes, particularly interest rates and equity indexes, influenced by reduced market volatility. Despite the revenue dip, operating expenses saw a modest increase of 1% to $565.0 millionb, leading to a slight compression in operating margin. However, net income remained robust at $908.0 million, down only 1% year-over-year, demonstrating the company's operational efficiency.
The nine-month period showed a more positive trend with total revenues up 6% to $4,871.9 millionc and net income increasing by 9% to $2,889.3 million. Significant growth was observed in market data and information services, up 14% for the quarter and 13% year-to-date, indicating successful monetization of data offerings. The company's balance sheet remains strong, with total assets growing substantially, driven by a significant increase in performance bonds and guaranty fund contributions.
Cash flows from operations also strengthened considerably, up 18%d for the quarter, reflecting effective management of operational activities. The sale of OSTTRA is expected to contribute a substantial gain in the fourth quarter.
02—Key points
Key Highlights
- Total revenues for Q3 2025 decreased by 3% to $1,537.6 million, primarily due to a 5% drop in clearing and transaction fees driven by lower contract volumes.
- Despite lower volumes in interest rate and equity index contracts, the average rate per contract increased by 5% in Q3 2025, contributing to a revenue increase of 6% over the nine months.
- Market data and information services revenue showed strong growth, up 14% for the quarter and 13% year-to-date, highlighting the increasing value of CME Group's data offerings.
- Operating expenses increased by 1% to $565.0 million for the quarter, with notable increases in compensation, benefits, and technology support services, partly offset by lower rent expenses.
- Net income for Q3 2025 was $908.0 million, a slight decrease of 1% from the prior year, while year-to-date net income grew 9% to $2,889.3 million.
- The company's balance sheet reflects a significant increase in performance bonds and guaranty fund contributions, driving total assets up substantially.
- Subsequent to the quarter, CME Group completed the sale of its stake in OSTTRA, which is expected to result in a gain of approximately $300 million in the fourth quarter of 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 24, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.54B$1.58B | −3.0% |
| Operating Expenses | $565.00M$560.20M | +0.9% |
| Operating Income | $972.60M$1.02B | −5.0% |
| Net Income | $908.00M$912.80M | −0.5% |
| EPS (Basic) | $2.49$2.51 | −0.8% |
| EPS (Diluted) | $2.49$2.50 | −0.4% |
| Shares Outstanding (Basic) | 359.69M359.40M | +0.1% |
| Shares Outstanding (Diluted) | 360.42M359.99M | +0.1% |
05—Questions
Frequently Asked Questions
What drove the decrease in revenue for the third quarter of 2025?
The decrease in revenue for the third quarter of 2025 was primarily driven by a 5% decline in clearing and transaction fees, which fell to $1,227.9 million. This was mainly due to a 10% decrease in total contract volume, particularly in interest rate and equity index products, influenced by lower market volatility as economic uncertainty regarding Federal Reserve policy and inflation data subsided.
How did the company's expenses change in the third quarter?
Total expenses increased by 1% to $565.0 million in the third quarter of 2025 compared to the prior year. Key drivers for this increase included higher compensation and benefits due to salary increases and additional headcount, as well as increased technology support services costs related to the Google Cloud transformation. These increases were partially offset by a reduction in rent expenses.
What is the significance of the increase in performance bonds and guaranty fund contributions on the balance sheet?
The substantial increase in performance bonds and guaranty fund contributions, from $98.9 billion to $149.0 billion, reflects higher market activity and potentially increased margin requirements. This also significantly boosts the company's total assets, providing a strong financial foundation and supporting its role as a clearing house.
What is the impact of the sale of OSTTRA on CME Group?
CME Group completed the sale of its 50% stake in OSTTRA in the fourth quarter of 2025. This transaction is expected to result in a net gain of approximately $300 million for CME Group, which will be recognized in the fourth quarter financial results, providing a significant boost to earnings.
06—Continue