Tradeweb Markets (TW) investor relations material

Executive summary

• Q3 revenue was $584.5M, up 14.9% YoY (15.4% constant currency); quarterly ADV rose 22.4% to $3.153T.

• International revenue grew 22.4% to $258.5M and contributed over 60% of total revenue growth.

• Adjusted net income rose 15.6% to $238.8M and adjusted diluted EPS increased 17.2% to $1.02.

Financial highlights

• Trading revenue was $540.0M, up 15.3%; variable trading revenue increased 18.0% to $440.3M and fixed trading revenue rose 4.5% to $99.7M.

• Market data revenue increased 19.6% to $36.9M, primarily reflecting the amended LSEG license; other revenue fell 17.3% to $7.6M.

• Adjusted expenses rose 13.9% to $288.1M (15.1% constant currency); operating expenses increased 11.0% to $331.1M.

• GAAP operating income was $253.4M; net income was $224.9M and GAAP diluted EPS was $0.94.

• Net interest income was ~$18M, down with lower yields despite higher cash balances.

Outlook and guidance

• FY2026 adjusted expense guidance increased to $1.155B–$1.175B, trending toward the midpoint; adjusted EBITDA and operating margin expansion are expected versus 2025.

• Guidance includes $160M of acquisition- and Refinitiv-related D&A, a 23.5%–24.5% non-GAAP tax rate, $107M–$117M in cash capex and capitalized software development, and ~$105M of LSEG contract revenue.

• Incremental margin expansion is expected to be more muted as investment continues; Q4 professional fees are expected to step up slightly from Q3.

• October average daily revenue was up 26% YoY through the reported period, with preliminary double-digit growth across rates, credit and equities.

• Q4 other revenue is expected to decline low-single digits QoQ as Canton Network Super Validator fees moderate.