01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Tradeweb Markets Inc. reported a strong first quarter of 2026, with total revenue of $617.8 milliona, up from $509.7 million in the prior-year period, a 21.2% increase.
The filing attributes the growth primarily to a $102.5 millionb rise in transaction fees and commissions to $523.8 million, driven by higher rates and credit derivatives volumes, U.S. government bonds, mortgages and ETFs. Total average daily volume rose 31.4%, to $3.35 trillion from $2.55 trillion. Operating income increased 40.7% to $287.3 million, and net income attributable to Tradeweb Markets Inc. rose 38.3% to $205.3 million.
Diluted EPS was $0.96c versus $0.69. Adjusted EBITDA was $339.7 million, a 55.0% margin, and Adjusted Diluted EPS was $1.08 versus $0.86. Cash flow and capital returns were meaningful but lower in cash terms this quarter.
Operating cash flow was $103.8 milliond, and Free Cash Flow was $76.7 million, with the filing noting about $71 million paid for transferable tax credits tied to the 2025 tax year. Cash and cash equivalents fell to $1.94 billion from $2.08 billion, reflecting $53.3 million of share repurchases, $29.8 million of dividends, $83.7 million of payroll taxes on stock-based compensation, and $50.2 million of investments. The company has no outstanding borrowings under its $500.0 million revolving credit facility, and a new $500.0 million share repurchase program was authorized on February 5, 2026.
On April 29, 2026, the board declared a $0.14 per share quarterly dividend payable June 15, 2026. The balance sheet includes a $335.8 million tax receivable agreement liability, and results include gains and losses on Canton Coin holdings, which the company earns as a Super Validator on the Canton Network.
Other income was a net loss of $1.2 million, reflecting $2.9 million of unrealized losses on Canton Coins and $13.2 million of unrealized losses on pre-funded warrants in Canton Strategic Holdings, partly offset by a $14.8 million realized gain recognized in January 2026. LSEG, through its holdings, controls 89.9% of combined voting power and is a source of market data fee revenue of $26.7 million in the quarter.
02—Key points
Key Highlights
- Total revenue rose 21.2% to $617.8 million, with transaction fees and commissions up 24.3% to $523.8 million.
- Average daily volume increased 31.4% to $3.35 trillion, led by Rates (up 44.2%) and Credit (up 41.6%).
- Operating income increased 40.7% to $287.3 million; net income attributable to Tradeweb Markets Inc. rose 38.3% to $205.3 million.
- Diluted EPS was $0.96 versus $0.69; Adjusted Diluted EPS was $1.08 versus $0.86 (non-GAAP).
- Adjusted EBITDA margin was 55.0%, up 40 basis points, or 99 basis points on a constant currency basis.
- Operating cash flow was $103.8 million and Free Cash Flow was $76.7 million, affected by about $71 million paid for transferable tax credits.
- A new $500.0 million Class A share repurchase program was authorized February 5, 2026; $23.2 million remained under the prior program, and $50.7 million was repurchased in the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $617.76M$509.68M | +21.2% |
| Operating Expenses | $330.51M$305.58M | +8.2% |
| Operating Income | $287.25M$204.10M | +40.7% |
| Net Income | $205.28M$148.38M | +38.3% |
| EPS (Basic) | $0.96$0.70 | +37.1% |
| EPS (Diluted) | $0.96$0.69 | +39.1% |
| Shares Outstanding (Basic) | 212.69M213.09M | −0.2% |
| Shares Outstanding (Diluted) | 213.32M214.90M | −0.7% |
05—Questions
Frequently Asked Questions
What drove the revenue increase this quarter?
The filing attributes the $108.1 million revenue increase primarily to a $102.5 million rise in transaction fees and commissions, driven by higher revenues in rates and credit derivatives products, U.S. government bonds, mortgages, U.S. and international ETFs, and European and U.S. corporate bonds. Average daily volume grew 31.4% across the platform.
Why did operating cash flow decline relative to net income growth?
Operating cash flow was $103.8 million, an increase of $43.6 million over the prior year, but the filing notes approximately $71 million was paid in the quarter for transferable tax credits related to the 2025 tax year, along with other working capital changes. Accrued compensation also fell by $141.2 million due to annual bonus payments.
Does Tradeweb have debt, and how is its liquidity position?
The company had no outstanding indebtedness as of March 31, 2026. Its $500.0 million unsecured revolving credit facility, maturing November 21, 2028, had only $0.5 million of letters of credit issued and no borrowings. Cash and cash equivalents totaled $1.94 billion.
What is the status of the Canton Coin investments and their effect on earnings?
Canton Coins are earned for validator services and held on the balance sheet at a fair value of $243.5 million. Unrealized losses on Canton Coins were $2.9 million in the quarter, and the company also recorded $13.2 million of unrealized losses on pre-funded warrants in Canton Strategic Holdings, Inc. Such valuation changes can cause volatility in other income and in Validator Revenue.
What is the dividend and capital return outlook?
The board declared a $0.14 per share quarterly dividend on April 29, 2026, payable June 15, 2026, to holders of record June 1, 2026. Share repurchases of 482,621 Class A shares totaled $50.7 million during the quarter, and the board's new $500.0 million program is available once the prior program is exhausted.
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