01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Tradeweb Markets Inc. reported first-quarter 2025 total revenue of $509.7 milliona, up from $408.7 million in the prior-year period, with transaction fees and commissions rising to $421.3 million from $335.5 million.
Operating income was $204.1 millionb versus $167.7 million, and net income attributable to Tradeweb Markets Inc. was $148.4 million, or $0.69 diluted EPS, compared with $126.1 million, or $0.59, a year earlier. The company attributed the growth primarily to higher rates derivatives and U.S. government bond revenue, plus contributions from the ICD acquisition, which added a corporates client sector with $24.7 million of revenue in the quarter. Non-GAAP measures show Adjusted EBITDA of $278.2 million (54.6% margin) versus $219.5 million (53.7%), and Adjusted Diluted EPS of $0.86 versus $0.71.
Free Cash Flow was $45.4 millionc, up from $20.6 million, and operating cash flow was $60.2 million. Cash and cash equivalents totaled $1.3 billion, and the company had no borrowings outstanding under its $500.0 million revolving credit facility. Tax receivable agreement liability stood at $369.8 million, with approximately $18.4 million expected to be paid within the next 12 months.
The company declared a $0.12d per share quarterly dividend on April 30, 2025, and approved a $52.4 million TWM LLC distribution. Operating expenses rose 26.8%, driven by higher employee compensation, depreciation and amortization, and a $8.6 million increase in foreign exchange losses within general and administrative expenses. The filing also notes a signed New York City headquarters lease with $159.2 million of future minimum payments, expected to commence in mid-2025.
02—Key points
Key Highlights
- Total revenue rose 24.7% to $509.7 million, driven by a $85.9 million increase in transaction fees and commissions to $421.3 million.
- Rates revenue increased 24.0% to $265.4 million, while Money Markets revenue rose 160.3% to $43.7 million, partly due to the ICD acquisition.
- Net income attributable to Tradeweb Markets Inc. increased 17.6% to $148.4 million; diluted EPS was $0.69 versus $0.59.
- Adjusted EBITDA increased to $278.2 million with a 54.6% margin, and Adjusted Diluted EPS rose to $0.86 from $0.71.
- Free Cash Flow was $45.4 million versus $20.6 million, and operating cash flow was $60.2 million.
- Cash and cash equivalents were approximately $1.3 billion, with no borrowings under the $500.0 million revolving credit facility.
- The company declared a $0.12 per share quarterly dividend and no share repurchases were made under the $300.0 million program during the quarter, leaving $179.9 million available.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 30, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $509.68M$408.74M | +24.7% |
| Operating Expenses | $305.58M$241.06M | +26.8% |
| Operating Income | $204.10M$167.68M | +21.7% |
| Net Income | $148.38M$126.14M | +17.6% |
| EPS (Basic) | $0.70$0.59 | +18.6% |
| EPS (Diluted) | $0.69$0.59 | +16.9% |
| Shares Outstanding (Basic) | 213.09M212.71M | +0.2% |
| Shares Outstanding (Diluted) | 214.90M214.66M | +0.1% |
05—Questions
Frequently Asked Questions
What drove Tradeweb's revenue growth in the first quarter of 2025?
The primary driver was an $85.9 million increase in transaction fees and commissions, to $421.3 million, mainly from higher rates derivatives products, U.S. government bonds, credit derivative products and European ETFs, plus basis point commissions on ICD Portal money market fund balances.
How did the ICD acquisition affect the quarter?
ICD, acquired August 1, 2024, contributed $24.7 million of revenue and $0.9 million of operating income for the quarter, including $11.2 million of depreciation and amortization. It also established the corporates client sector, which generated $24.7 million of revenue.
Did operating expenses grow faster than revenue?
Total expenses rose 26.8% to $305.6 million, compared with total revenue growth of 24.7%. Employee compensation rose 23.6%, depreciation and amortization rose 27.1%, and general and administrative expenses rose 81.9%, largely due to an $8.6 million increase in foreign exchange losses.
What are the company's obligations under the Tax Receivable Agreement?
The tax receivable agreement liability was $369.8 million as of March 31, 2025. The company expects to make approximately $18.4 million of payments within the next 12 months and approximately $351.4 million thereafter, substantially over 15 years.
What is the company's capital return policy?
The company pays quarterly dividends of $0.12 per share, paying $25.6 million in the quarter. It approved a $52.4 million TWM LLC distribution on April 30, 2025. It made no repurchases under its 2022 Share Repurchase Program during the quarter, leaving $179.9 million available.
06—Continue