01—Abstract
Summary
Summary of the 8-K filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Tradeweb Markets Inc. (Nasdaq: TW) reported first quarter 2025 financial results on April 30, 2025, via a press release furnished as Exhibit 99.1 under Item 2.02.
Total revenue was $509.7 milliona, up 24.7% (25.8% on a constant currency basis) from $408.7 million in the prior-year period. Net income was $168.3 million and net income attributable to Tradeweb Markets Inc. was $148.4 million, with diluted EPS of $0.69 (versus $0.59). Adjusted net income was $205.7 million and adjusted diluted EPS was $0.86, while adjusted EBITDA was $278.2 million, representing a 54.6% adjusted EBITDA margin.
Average daily volume reached $2.5 trillionb, up 33.7% year over year, with record ADV reported in several products, including U.S. government bonds, European government bonds, mortgages, and credit swaps. Money Markets revenue grew 160.3%, driven in part by the August 1, 2024 acquisition of ICD, while Market Data revenue rose 33.4%, partly reflecting $8.4 million from the periodic delivery of historical data sets. Operating expenses increased 26.8% to $305.6 million, mainly due to higher employee compensation, depreciation and amortization, and a $8.6 million increase in foreign exchange losses.
The company ended the quarter with $1.3 billionc in cash and cash equivalents and an undrawn $500 million credit facility. It declared a quarterly cash dividend of $0.12 per share, payable June 16, 2025, and did not repurchase shares during the quarter, leaving $179.9 million available under its repurchase authorization. Full-year 2025 guidance was left unchanged, including adjusted expenses of $970 to $1,030 million.
02—Key points
Key Highlights
- Total revenue of $509.7 million, up 24.7% year over year (25.8% on a constant currency basis).
- Average daily volume of $2.5 trillion, up 33.7%, with multiple record ADV categories including U.S. government bonds and credit swaps.
- Net income of $168.3 million; diluted EPS of $0.69 versus $0.59 in the prior-year period.
- Adjusted EBITDA of $278.2 million with a 54.6% margin, compared with 53.7% in the prior-year period.
- Adjusted diluted EPS of $0.86 versus $0.71 a year earlier; adjusted net income of $205.7 million.
- Operating expenses rose 26.8% to $305.6 million, driven by compensation, D&A from the ICD acquisition, and an $8.6 million increase in FX losses.
- Quarterly dividend of $0.12 per share declared; no share repurchases in the quarter, with $179.9 million remaining under the authorization.
03—Questions
Frequently Asked Questions
What drove the revenue growth in the first quarter of 2025?
Revenue growth was led by Rates, which rose 24.0% to $265.4 million on record U.S. government bond, European government bond, and mortgage ADV. Money Markets revenue rose 160.3%, driven in part by the August 1, 2024 ICD acquisition, and Market Data revenue rose 33.4%, primarily due to increased LSEG market data fees.
Did Tradeweb change its full-year 2025 guidance?
No. The filing states that full-year 2025 guidance was unchanged, including adjusted expenses of $970 to $1,030 million, acquisition and Refinitiv Transaction related D&A of $176 million, an assumed non-GAAP tax rate of approximately 24.5% to 25.5%, cash capital expenditures and capitalized software development of approximately $99 to $109 million, and LSEG market data contract revenue of approximately $90 million.
How does the company's capital position look?
At March 31, 2025, Tradeweb had $1.3 billion in cash and cash equivalents and an undrawn $500 million credit facility. Free cash flow for the trailing twelve months was $833.6 million. No shares were repurchased in the quarter, and $179.9 million remained available under the repurchase authorization.
Why did operating expenses increase, and what were the adjusted expenses?
Operating expenses rose 26.8% to $305.6 million, primarily due to higher employee compensation and benefits from greater incentive compensation and headcount, higher depreciation and amortization tied to the ICD acquisition, and an $8.6 million increase in foreign exchange losses. Adjusted expenses were $248.7 million, up 21.8%.
What shareholder returns were announced?
The Board declared a quarterly cash dividend of $0.12 per share of Class A and Class B common stock, payable June 16, 2025 to stockholders of record as of June 2, 2025. The filing notes a 20.0% per share increase from the prior-year period dividend.
04—Continue