Tradeweb Markets (TW) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $510 million (or $509.7 million), up 24.7% year-over-year, marking the seventh consecutive quarter of double-digit revenue growth and surpassing $500 million for the first time.

• Strong client activity, share gains, and a risk-on environment contributed to growth across all major asset classes, with international clients accounting for 40% of revenue.

• Continued investment in technology, automation, and innovation, with a focus on expanding global market presence and electronic trading solutions.

• Net income attributable to shareholders rose 17.4% to $168.3 million; adjusted net income increased 22.5% to $205.7 million.

• Leadership changes included the appointment of Troy Dixon and Enrico Bruni as co-heads of global markets and Rich Repetto to the Board.

Financial highlights

• Adjusted EBITDA margin expanded to 54.6%, up 88–125 basis points year-over-year and from 2024 full-year margins.

• Trading revenues grew 24%, variable revenues increased 27%, and fixed revenues for major asset classes rose 14%.

• Free cash flow for the trailing twelve months was $833.6–834 million; cash and equivalents stood at $1.3 billion with a $500 million undrawn credit facility.

• Quarterly dividend of $0.12 per share declared, up 20% year-over-year.

• Adjusted net income was $205.7 million; adjusted diluted EPS rose 21.1% to $0.86.

Outlook and guidance

• Adjusted expenses for 2025 expected to range from $970 million to $1.03 billion, with continued but modest margin expansion anticipated.

• Capital expenditures for 2025 projected at $99–109 million, up from 2024, mainly due to NYC headquarters relocation.

• LSEG market data contract revenue guidance reaffirmed at $90 million for 2025.

• April revenue growth trending approximately 30% higher year-over-year, with double-digit volume and revenue growth across all asset classes.

• Non-GAAP tax rate for 2025 assumed at 24.5–25.5%.