MarketAxess Reports Fourth Quarter and Full Year 2025 Financial Results

Record Revenue of $846 Million in 2025 Driven by 10% Growth in Revenue Outside U.S. Credit Products

24% Increase in Block Trading ADV to Record $5 Billion in 2025

48% Increase in Portfolio Trading ADV to Record $1.4 Billion in 2025 with Record U.S. Credit ADV & Market Share

33% Increase in Dealer-Initiated ADV in 2025

NEW YORK--(BUSINESS WIRE)--MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the fourth quarter and full year ended December 31, 2025.

4Q25 select financial and operational highlights*

• Total revenues of $209.4 million increased 3.5%, and included an increase of approximately $1.6 million from the impact of foreign currency fluctuations.
• Strong progress with our new initiatives across our three strategic channels:
  • Client-Initiated Channel - 29% increase in block trading average daily volume (“ADV”), including 21% growth in U.S. credit, 41% growth in emerging markets (record) and 43% growth in eurobonds.
  • Portfolio Trading Channel - 41% increase in total portfolio trading ADV to record $1.5 billion with record U.S. high-yield and record emerging markets portfolio trading ADV of $368 million and $118 million, respectively. Record U.S. credit portfolio trading market share of 21%, an increase of 440 basis points.
  • Dealer-Initiated Channel - 32% increase in dealer-initiated ADV to $1.8 billion, including 20% increase in dealer request for quote ("RFQ") ADV and a 185% increase in Mid-X ADV. Our Mid-X protocol in U.S. credit surpassed $3.0 billion in trading volume in December 2025.
• Total expenses of $133.4 million increased 9%, and included an increase of approximately $1.3 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items,¹ of $132.3 million increased 8%.
• Effective tax rate of (15.8%); effective tax rate excluding notable items¹ of 23.4%.
• Diluted earnings-per-share (“EPS”) of $2.51 on net income of $92.4 million; Diluted EPS of $1.68 on net income of $61.9 million, each excluding notable items.¹
• Announced 3-year financial targets and increased stock repurchase authorizations to $505.0 million, including a $300.0 million accelerated stock repurchase ("ASR") agreement that commenced in December 2025.

Full Year 2025 select financial and operational highlights**

• Record total revenues of $846.3 million increased 4% (10% outside U.S. credit), and included an increase of approximately $4.6 million from the impact of foreign currency fluctuations.
• Record commission revenue, including record emerging markets (+10%), record eurobonds (+10%) and record U.S. Government bonds (+13%).
• Record services revenue³ of $111.6 million, up 6%.
• Strong progress with our new initiatives across our three strategic channels:
  • Client-Initiated Channel - 24% increase in block trading ADV to a record $5 billion, including 18% growth in U.S. credit (record), 27% growth in emerging markets (record) and 66% growth in eurobonds (record).
  • Portfolio Trading Channel - 48% increase in total portfolio trading ADV to record $1.4 billion with record U.S. credit portfolio trading ADV of $1.1 billion, an increase of 43%. Record U.S. credit portfolio trading market share of 19%, an increase of 270 basis points.
  • Dealer-Initiated Channel - 33% increase in dealer-initiated ADV to $1.7 billion, including a 29% increase in dealer RFQ ADV and a 102% increase in Mid-X ADV with the launch of the Mid-X protocol in September 2025.
• Total expenses of $504.4 million increased 6%, and included an increase of approximately $4.5 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items,¹ of $499.4 million increased 5%.
• Diluted EPS of $6.64 on net income of $246.9 million; Diluted EPS of $7.39 on net income of $274.7 million, each excluding notable items.¹

*All comparisons versus 4Q24

**All comparisons versus full year 2024

Chris Concannon, CEO of MarketAxess, commented:

“In 2025, we made significant strides in enhancing the MarketAxess advantage by expanding our global network, deepening our differentiated liquidity. We also accelerated our use of AI in enhancing the proprietary data and analytics that underpin our protocols and workflow tools for clients, helping them to be more efficient and gain deeper insights into their trading activity.

We delivered record volumes in U.S. credit and record revenue outside of U.S. credit of $406 million, a 10% increase, reflecting the strong returns generated from our investments in these areas. We also made strong progress across our three U.S. credit strategic channels: block trading ADV increased 24%, total portfolio trading ADV increased 48%, and dealer‑initiated ADV increased 33%. Additionally, the Mid‑X solution launched in the second half of 2025 continues to gain momentum, delivering over $3 billion in trading volume in December 2025.

The client initiatives that we expect to deliver in 2026 and beyond include enhancements to our X-Pro platform and our automation suite, as well as the launch of new solutions that allow dealers to send axes directly to investor clients. These enhancements are progressing well and we expect them to drive market share and revenue growth consistent with our medium-term financial targets."

Table 1: 4Q25 and full year 2025 select financial results

	Quarter									% Change								Full Year						% Change
$ in millions, except per share data (unaudited)	4Q 2025			3Q 2025			4Q 2024			QoQ				YoY				FY 2025			FY 2024			YoY
Selected GAAP-basis financial results
Revenues	$	209		$	209		$	202			—		%		3		%	$	846		$	817			4		%
Expenses		133			123			122			8				9				504			476			6
Net Income		92			68			65			35				42				247			274			(10	)
Diluted EPS		2.51			1.84			1.73			36				45				6.64			7.28			(9	)
Net Income Margin		44.1	%		32.7	%		32.2	%	NM				NM					29.2	%		33.6	%	NM
Selected GAAP-basis financial results ex-notable items (non-GAAP)^1
Revenues		209			209			202			—				3				846			817			4
Expenses		132			123			122			7				8				499			476			5
Net Income		62			68			65			(9	)			(5	)			275			274			—
Diluted EPS		1.68			1.84			1.73			(9	)			(3	)			7.39			7.28			2
Other Non-GAAP financial measures
EBITDA^2		95			108			97			(12	)			(2	)			421			410			3
EBITDA Margin^2		45.3	%		51.5	%		47.8	%		(620	)	bps		(250	)	bps		49.7	%		50.2	%	(50)			bps
NM - not meaningful

4Q25 overview of results

Table 1A: Notable items¹

	Quarter							Full Year
	4Q 2025			3Q 2025		4Q 2024		FY 2025			FY 2024
$ in millions, except per share data (unaudited)
Repositioning charges	$	1.1		$	—	$	—	$	5.1		$	—
Acquisition-related charge/(credit)		—			—		—		0.6			—
Notable items (pre-tax)		1.1			—		—		5.7			—
Income tax impact from notable items		(0.3	)		—		—		(1.5	)		—
Reserve for uncertain tax positions related to prior periods		(31.3	)		—		—		23.6			—
Total notable items	$	(30.5	)	$	—	$	—	$	27.8		$	—
EPS impact	$	(0.83	)	$	—	$	—	$	0.75		$	—

Notable items¹

• Notable items in 4Q25 include repositioning charges of $1.1 million, which consisted of severance costs related to changes in management structure, and a benefit to the reserve for uncertain tax positions of approximately $31.3 million related to prior periods.

Revenue

• Total revenues of $209.4 million increased 3.5% compared to the prior year and included RFQ-hub revenues of approximately $3.7 million and a $1.6 million increase from the impact of foreign currency fluctuations.

Commission revenue

Table 1B: 4Q25 variable transaction fees per million (FPM)

	Quarter						% Change								Full Year				% Change
	4Q 2025		3Q 2025		4Q 2024		QoQ				YoY				FY 2025		FY 2024		YoY
AVG. VARIABLE TRANS. FEE PER MILLION (FPM)
Total Credit	$	138	$	140	$	150		(1	)	%		(8	)	%	$	139	$	150		(7	)	%
Total Rates		4.79		4.21		4.31		14				11				4.28		4.39		(3	)

Credit

• Total credit commission revenue of $165.2 million (including $32.8 million in fixed-distribution fees) increased $3.0 million, or 2%, compared to $162.2 million (including $32.8 million in fixed-distribution fees) in the prior year, and was consistent with 3Q25 levels. An 11% increase in total credit ADV compared to the prior year, driven by growth in market volumes, was partially offset by an 8% decrease in total credit variable transaction fee per million (“FPM”). The 2% increase in total credit commission revenue was driven by a 7% increase in emerging markets and eurobonds commission revenue, reflecting continued product and geographic diversification. The decline in 4Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to protocol mix.

Rates

• Total rates commission revenue of $6.8 million decreased $0.5 million, or 7%, compared to the prior year, and increased 2% from 3Q25 levels. A 17% decrease in total rates ADV compared to the prior year was partially offset by an 11% increase in FPM.

Other

• Record total other commission revenue of $9.4 million increased $4.1 million, or 79%, compared to the prior year, driven by the inclusion of approximately $3.4 million from RFQ-Hub, majority control of which was acquired in 2Q25.

Services revenue

• Services revenue³ of $28.1 million increased $0.4 million, or 2%, compared to the prior year.

Information services

• Information services revenue of $13.5 million increased $0.3 million, or 2%, compared to the prior year. The increase was principally driven by an increase of $0.3 million from the impact of foreign currency fluctuations.

Post-trade services

• Post-trade services revenue of $11.0 million increased $0.1 million, or 1%, compared to the prior year principally due to an increase of $0.6 million from the impact of foreign currency fluctuations, partially offset by lower net contract revenue.

Technology services

• Total technology services revenue of $3.6 million increased $0.1 million, or 2%, compared to the prior year. The increase was driven by connectivity fees from RFQ-hub, majority control of which was acquired in 2Q25.

Expenses

• Total expenses of $133.4 million increased 9% from the prior year, including approximately $3.5 million of RFQ-hub expenses and an increase of $1.3 million from the impact of foreign currency fluctuations.

Non-operating

• Other income (expense): Other income was $3.8 million, down from $4.6 million in the prior year. The decrease was driven by lower interest income due to a decrease in interest rates and higher interest expense due to borrowings on the Company's credit facility that were used, along with cash on hand, to fund the ASR, partially offset by unrealized gains on investments compared to unrealized losses in the prior year.
• Tax rate: The effective tax rate was (15.8%), compared to 23.0% in the prior year. The effective tax rate excluding notable items¹ was 23.4%.

Capital

• The Company had $678.9 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of December 31, 2025, down from $698.6 million as of December 31, 2024. The Company had $220.0 million in borrowings outstanding under the Company’s credit facility as of December 31, 2025, as compared to no borrowings outstanding as of December 31, 2024.
• In December 2025, the Board of Directors authorized the repurchase of up to $400.0 million of additional shares of MarketAxess common stock. Following the new authorization, the Company entered into an ASR agreement to repurchase, in aggregate, $300.0 million of MarketAxess common stock. Upon execution of the ASR, a total of 1,386,001 shares were delivered, representing 80% of the total shares that the Company expected to receive under the ASR based on the market price of the Company's common stock on the date of execution. Final settlement of the ASR occurred on February 4, 2026 with the delivery of 359,782 additional shares. For the full year 2025, a total of 1,980,715 shares were repurchased at a cost of $360.0 million. As of January 31, 2026, $205.0 million remained under the Board of Directors’ share repurchase authorizations.
• The Board declared a quarterly cash dividend of $0.78 per share, payable on March 4, 2026 to stockholders of record as of the close of business on February 18, 2026.

Other

• Employee headcount was 869 as of December 31, 2025, down from 891 as of December 31, 2024 and 896 as of September 30, 2025.

Full Year 2026 Guidance⁴

For the full year 2026, the Company is providing the following guidance:

• Services revenue³ is expected to grow in the mid-single digits (percent).
• Expenses, excluding notable items, are expected to be in the range of $530.0 million to $545.0 million. Based on the midpoint of the stated guidance range, total expenses are expected to increase by 8%.
• The effective tax rate is expected to be between 24.0% and 26.0%.
• Capital expenditures to support new protocols, products and trading platform enhancements are expected to be in the range of $65.0 million to $75.0 million.

^1	See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 6 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.
^2	EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 7 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.
^3	Services revenue is defined as combined information, post-trade and technology services revenue.
^4	The Company's guidance for full year 2026 is based on foreign exchange rates as of December 31, 2025, and assumes a constant business portfolio.

Non-GAAP financial measures and other items

To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) selected GAAP-basis financial results, each excluding notable items, to their most directly comparable GAAP measure; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure. The Company does not reconcile its forward-looking non-GAAP financial measures, including the 2026 expense guidance, to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides forward-looking non-GAAP financial measures that it believes will be achieved, however, it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

Webcast and conference call information

Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer, will host a conference call to discuss the Company’s financial results and outlook on Friday, February 6, 2026 at 10:00 a.m. ET. To access the conference call, please dial [phone] (U.S.) or [phone] (International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement.

General Notes Regarding the Data Presented

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance, including the full year 2026 guidance included in this press release. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the divergence of U.K. and European Union legal and regulatory requirements following the U.K.’s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess.

Table 2: Consolidated Statements of Operations

	Three Months Ended										Year Ended
	December 31,										December 31,
In thousands, except per share data (unaudited)	2025			2024			% Change				2025			2024			% Change
Revenues
Commissions	$	181,339		$	174,766			4		%	$	734,623		$	711,710			3		%
Information services		13,454			13,155			2				53,230			50,540			5
Post-trade services		11,034			10,975			1				44,491			42,487			5
Technology services		3,582			3,508			2				13,924			12,360			13
Total revenues		209,409			202,404			3				846,268			817,097			4
Expenses
Employee compensation and benefits		61,402			59,395			3				248,537			235,880			5
Depreciation and amortization		19,606			18,540			6				76,699			73,824			4
Technology and communications		20,864			18,791			11				78,294			72,166			8
Professional and consulting fees		10,505			6,329			66				31,487			27,382			15
Occupancy		3,804			3,716			2				15,038			14,690			2
Marketing and advertising		3,842			3,972			(3	)			11,204			11,713			(4	)
Clearing costs		4,003			4,443			(10	)			16,583			17,863			(7	)
General and administrative		9,370			7,242			29				26,588			22,709			17
Total expenses		133,396			122,428			9				504,430			476,227			6
Operating income		76,013			79,976			(5	)			341,838			340,870			—
Other income (expense)
Interest income		5,448			6,719			(19	)			24,397			26,046			(6	)
Interest expense		(964	)		(318	)		203				(1,487	)		(1,601	)		(7	)
Equity in earnings of unconsolidated affiliate		—			331			(100	)			457			1,395			(67	)
Other, net		(711	)		(2,113	)		(66	)			1,790			(6,164	)	NM
Total other income (expense)		3,773			4,619			(18	)			25,157			19,676			28
Income before income taxes		79,786			84,595			(6	)			366,995			360,546			2
Provision for income taxes		(12,608	)		19,456			(165	)			120,083			86,365			39
Net income	$	92,394		$	65,139			42			$	246,912		$	274,181			(10	)
Less: income attributable to noncontrolling interest		(157	)		—		NM					(285	)		—		NM
Net income available for common stockholders	$	92,237		$	65,139			42			$	246,627		$	274,181			(10	)
Per Share Data:
Net income per common share
Basic	$	2.52		$	1.74						$	6.66		$	7.29
Diluted	$	2.51		$	1.73						$	6.64		$	7.28
Cash dividends declared per common share	$	0.76		$	0.74						$	3.04		$	2.96
Weighted-average common shares:
Basic		36,601			37,479							37,056			37,600
Diluted		36,683			37,601							37,137			37,672
NM - not meaningful

Table 3: Commission Revenue Detail

In thousands, except fee per million data (unaudited)	Three Months Ended December 31,								Year Ended December 31,
	2025		2024		% Change				2025		2024		% Change
Variable transaction fees
Credit	$	132,358	$	129,351		2		%	$	541,986	$	533,363		2		%
Rates		6,695		7,262		(8	)			28,198		25,165		12
Other		9,382		5,235		79				30,264		20,016		51
Total variable transaction fees		148,435		141,848		5				600,448		578,544		4
Fixed distribution fees
Credit		32,802		32,849		—				133,820		132,898		1
Rates		102		69		48				355		268		32
Total fixed distribution fees		32,904		32,918		—				134,175		133,166		1
Total commission revenue	$	181,339	$	174,766		4			$	734,623	$	711,710		3
Average variable transaction fee per million
Credit	$	138	$	150		(8	)	%	$	139	$	150		(7	)	%
Rates		4.79		4.31		11				4.28		4.39		(3	)

Table 4: Trading Volume Detail*

	Three Months Ended December 31,
In millions (unaudited)	2025				2024				% Change
	Volume		ADV		Volume		ADV		Volume				ADV
Credit
High-grade	$	424,563	$	6,848	$	400,129	$	6,454		6		%		6		%
High-yield		95,650		1,543		83,373		1,345		15				15
Emerging markets		247,140		3,986		214,439		3,459		15				15
Eurobonds		154,061		2,407		128,064		2,001		20				20
Other credit		37,086		597		38,698		624		(4	)			(4	)
Total credit trading		958,500		15,381		864,703		13,883		11				11
Rates
U.S. government bonds		1,352,808		21,819		1,608,995		25,952		(16	)			(16	)
Agency and other government bonds		43,787		686		76,221		1,195		(43	)			(43	)
Total rates trading		1,396,595		22,505		1,685,216		27,147		(17	)			(17	)
Total trading	$	2,355,095	$	37,886	$	2,549,919	$	41,030		(8	)			(8	)
Number of U.S. Trading Days^1				62				62
Number of U.K. Trading Days^2				64				64

	Year Ended December 31,
In millions (unaudited)	2025				2024				% Change
	Volume		ADV		Volume		ADV		Volume			ADV
Credit
High-grade	$	1,786,664	$	7,175	$	1,711,275	$	6,845		4	%		5	%
High-yield		376,772		1,513		334,761		1,339		13			13
Emerging markets		979,903		3,935		859,412		3,438		14			14
Eurobonds		605,623		2,403		508,093		2,008		19			20
Other credit		153,869		617		135,975		543		13			14
Total credit trading		3,902,831		15,643		3,549,516		14,173		10			10
Rates
U.S. government bonds		6,322,098		25,390		5,511,045		22,044		15			15
Agency and other government bonds		272,951		1,084		227,614		902		20			20
Total rates trading		6,595,049		26,474		5,738,659		22,946		15			15
Total trading	$	10,497,880	$	42,117	$	9,288,175	$	37,119		13			13
Number of U.S. Trading Days^1				249				250
Number of U.K. Trading Days^2				252				253

^1	The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.
^2	The number of U.K. trading days is based on the U.K. Bank holiday schedule.
*	Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted.

Table 5: Consolidated Condensed Balance Sheet Data

	As of
In thousands (unaudited)	December 31, 2025			December 31, 2024
Assets
Cash and cash equivalents	$	519,734		$	544,478
Cash segregated under federal regulations		48,722			47,107
Investments, at fair value		170,677			165,260
Accounts receivable, net		100,989			91,845
Receivables from broker-dealers, clearing organizations and customers		362,931			357,728
Goodwill		283,667			236,706
Intangible assets, net of accumulated amortization		110,629			98,078
Furniture, equipment, leasehold improvements and capitalized software, net		112,431			107,298
Operating lease right-of-use assets		51,854			58,132
Prepaid expenses and other assets		46,972			82,584
Total assets	$	1,808,606		$	1,789,216
Liabilities and stockholders' equity
Liabilities
Accrued employee compensation	$	73,879		$	68,054
Payables to broker-dealers, clearing organizations and customers		199,679			218,845
Borrowings		220,000			—
Income and other tax liabilities		49,267			3,683
Accounts payable, accrued expenses and other liabilities		42,584			37,320
Operating lease liabilities		64,938			72,654
Total liabilities		650,347			400,556
Redeemable noncontrolling interest		12,592			—
Stockholders' equity
Common stock		123			123
Additional paid-in capital		305,923			350,701
Treasury stock		(694,764	)		(333,369	)
Retained earnings		1,538,746			1,405,904
Accumulated other comprehensive income/(loss)		(4,361	)		(34,699	)
Total stockholders' equity		1,145,667			1,388,660
Total liabilities, redeemable noncontrolling interest and stockholders' equity	$	1,808,606		$	1,789,216

Table 6: Reconciliation of Notable Items

	Quarter										Full Year
$ in thousands, except per share data (unaudited)		4Q 2025			3Q 2025			4Q 2024			FY 2025			FY 2024
Total Expenses, GAAP-basis		$	133,396		$	123,242		$	122,428		$	504,430		$	476,227
Exclude: Notable items
Repositioning charges^1			(1,084	)		—			—			(5,054	)		—
Total Expenses, excluding notable items		$	132,312		$	123,242		$	122,428		$	499,376		$	476,227
Other income (expense), GAAP-basis		$	3,773		$	8,060		$	4,619		$	25,157		$	19,676
Exclude: Notable items
Acquisition-related charge/(credit)^2			—			—			—			557			—
Other income (expense), excluding notable items		$	3,773		$	8,060		$	4,619		$	25,714		$	19,676
Net income, GAAP-basis		$	92,394		$	68,273		$	65,139		$	246,912		$	274,181
Exclude: Notable items
Repositioning charges^1			1,084			—			—			5,054			—
Acquisition-related charge/(credit)^2			—			—			—			557			—
Income tax impact from notable items			(254	)		—			—			(1,471	)		—
Reserve for uncertain tax positions related to prior periods			(31,308	)		—			—			23,631			—
Net income, excluding notable items		$	61,916		$	68,273		$	65,139		$	274,683		$	274,181
Diluted EPS, GAAP-basis		$	2.51		$	1.84		$	1.73		$	6.64		$	7.28
Notable items as reconciled above			(0.83	)		—			—			0.75			—
Diluted EPS, excluding notable items		$	1.68		$	1.84		$	1.73		$	7.39		$	7.28
Effective tax rate, GAAP-basis			-15.8	%		27.1	%		23.0	%		32.7	%		24.0	%
Notable items as reconciled above			39.2			—			—			(6.4	)		—
Effective tax rate, excluding notable items			23.4	%		27.1	%		23.0	%		26.3	%		24.0	%

^1	Repositioning charges consist of severance included in employee compensation and benefits
^2	Consists of loss on remeasurement of previous equity interest in RFQ-hub to fair value

Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin

	Quarter										Full Year
In thousands (unaudited)		4Q 2025			3Q 2025			4Q 2024			FY 2025			FY 2024
Net income		$	92,394		$	68,273		$	65,139		$	246,912		$	274,181
Add back:
Interest income			(5,448	)		(5,850	)		(6,719	)		(24,397	)		(26,046	)
Interest expense			964			171			318			1,487			1,601
Provision for income taxes			(12,608	)		25,366			19,456			120,083			86,365
Depreciation and amortization			19,606			19,662			18,540			76,699			73,824
EBITDA		$	94,908		$	107,622		$	96,734		$	420,784		$	409,925
Net income margin^1			44.1	%		32.7	%		32.2	%		29.2	%		33.6	%
Add back:
Interest income			(2.6	)		(2.8	)		(3.3	)		(2.9	)		(3.2	)
Interest expense			0.5			0.1			0.2			0.2			0.2
Provision for income taxes			(6.1	)		12.1			9.5			14.1			10.6
Depreciation and amortization			9.4			9.4			9.2			9.1			9.0
EBITDA margin^2			45.3	%		51.5	%		47.8	%		49.7	%		50.2	%

^1	Net income margin is derived by dividing net income by total revenues for the applicable period.
^2	EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period.

Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

	Quarter										Full Year
In thousands (unaudited)		4Q 2025			3Q 2025			4Q 2024			FY 2025			FY 2024
Net cash (used in)/provided by operating activities		$	158,632		$	90,164		$	176,248		$	382,139		$	385,237
Exclude: Net change in trading investments			(404	)		264			—			(206	)		629
Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers			(67,825	)		34,338			(51,833	)		22,965			(1,118	)
Less: Purchases of furniture, equipment and leasehold improvements			(3,572	)		(1,496	)		(215	)		(8,204	)		(9,942	)
Less: Capitalization of software development costs			(11,775	)		(11,494	)		(10,833	)		(49,810	)		(46,623	)
Free cash flow		$	75,056		$	111,776		$	113,367		$	346,884		$	328,183