01—Abstract
Summary
Summary of the 10-K filed February 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Tradeweb Markets Inc. (Nasdaq: TW) reported total revenue of $1.73 billiona for the year ended December 31, 2024, up 29.0% from $1.34 billion in 2023.
Transaction fees and commissions rose $345.2 million to $1.42 billionb, driven mainly by higher rates derivatives, corporate bond, government bond, repurchase agreement and mortgage revenues, along with basis point commissions from the ICD Portal following the August 2024 acquisition of Institutional Cash Distributors. Net income attributable to Tradeweb Markets Inc. was $501.5 million, up 37.4%, and Adjusted EBITDA was $920.6 million, a 53.3% margin. Operating income rose 34.2% to $678.0 million.
The company acquired ICD (August 2024) for net cash consideration of $774.2 millionc, r8fin (January 2024) for $125.9 million, and expanded into the corporates client sector. Free Cash Flow was $808.9 million, and cash and cash equivalents were $1.3 billion at year-end, with no outstanding borrowings under its $500.0 million revolving credit facility. The company paid $85.2 million in dividends during 2024 and repurchased shares under its $300 million 2022 program, with $179.9 million remaining available.
Refinitiv (through LSEG) controls approximately 89.9% of the combined voting power, and the company is a controlled company under Nasdaq rules. The filing also discloses a $372.8 milliond Tax Receivable Agreement liability and two antitrust matters: the Treasuries matter, which the Second Circuit affirmed for dismissal in February 2024, and an Interest Rate Swaps matter that remains pending, with no reserves established.
02—Key points
Key Highlights
- Total revenue grew 29.0% to $1,725.9 million, with transaction fees and commissions reaching $1,423.5 million (up 32.0%).
- Net income attributable to Tradeweb Markets Inc. rose 37.4% to $501.5 million; diluted EPS was $2.33 versus $1.71 in 2023.
- Adjusted EBITDA reached $920.6 million, with an Adjusted EBITDA margin of 53.3%, up from 52.4%.
- Rates revenue increased 30.1% to $904.9 million and Credit revenue increased 24.9% to $459.0 million; Money Markets grew 82.9% to $115.2 million, aided by ICD.
- Acquisitions of ICD (cash paid at closing of $773.8 million, net) and r8fin ($125.9 million total consideration) expanded the company into the corporates client sector and added algorithmic execution tools.
- Cash and cash equivalents were $1.3 billion at December 31, 2024, with no borrowings under the $500.0 million revolving credit facility; Free Cash Flow was $808.9 million.
- Refinitiv controls approximately 89.9% of combined voting power, making Tradeweb a controlled company, and a $372.8 million Tax Receivable Agreement liability is outstanding.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 7, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $1.73B$1.34B | +29.0% |
| Operating Expenses | $1.05B$832.95M | +25.8% |
| Operating Income | $678.03M$505.27M | +34.2% |
| Net Income | $501.51M$364.87M | +37.4% |
| EPS (Basic) | $2.35$1.73 | +35.8% |
| EPS (Diluted) | $2.33$1.71 | +36.3% |
| Shares Outstanding (Basic) | 213.03M210.80M | +1.1% |
| Shares Outstanding (Diluted) | 214.92M212.67M | +1.1% |
05—Questions
Frequently Asked Questions
How did Tradeweb's revenue and profitability change in 2024?
Total revenue increased 29.0% to $1,725.9 million from $1,338.2 million, while operating income rose 34.2% to $678.0 million and net income attributable to Tradeweb Markets Inc. increased 37.4% to $501.5 million. The filing attributes the revenue increase mainly to higher transaction fees and commissions, which rose $345.2 million, and to contributions from the ICD, r8fin and Yieldbroker acquisitions.
What acquisitions did Tradeweb complete in 2024 and how were they funded?
Tradeweb acquired r8fin in January 2024 for total consideration of $125.9 million (cash of $89.2 million net of cash acquired plus 374,601 Class A shares valued at $36.7 million). It acquired Institutional Cash Distributors (ICD) on August 1, 2024, with net cash consideration of $774.2 million, paid from cash on hand, and also issued restricted Class A shares to an ICD equityholder. ICD added the corporates client sector, contributing $43.2 million in revenue from the closing date through year-end.
What is Tradeweb's capital return and dividend policy?
The company paid quarterly cash dividends of $0.10 per share in 2024, totaling $85.2 million, and declared a $0.12 per share dividend for the first quarter of 2025, a 20.0% increase. Under the 2022 Share Repurchase Program, which authorizes up to $300 million, the company repurchased 478,915 Class A shares in 2024 for $59.9 million, leaving $179.9 million available at December 31, 2024.
What control and governance considerations apply to Tradeweb shareholders?
Refinitiv, which is controlled by LSEG, held approximately 89.9% of Tradeweb's combined voting power as of December 31, 2024, so Tradeweb qualifies as a controlled company under Nasdaq standards and may rely on exemptions from certain governance requirements. Class B and Class D shares carry 10 votes per share, and Refinitiv has the ability to significantly influence board composition and stockholder approvals.
What litigation and contingent obligations does Tradeweb disclose?
The Treasuries matter, a putative antitrust class action, was dismissed in its entirety and the Second Circuit affirmed the dismissal on February 1, 2024, so the company considers it closed. The Interest Rate Swaps antitrust matter remains pending, with Tradeweb Markets LLC not a party but engaged in third-party discovery. The company does not have contingency reserves for these matters. Separately, the Tax Receivable Agreement liability to Continuing LLC Owners was $372.8 million at December 31, 2024.
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