Tradeweb Markets (TW) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $510 million, up 24.7% year-over-year, with strong growth across all asset classes and record trading volumes in multiple products; international revenues rose 37.0%.

• Net income attributable to the company increased 17.6% to $148.4 million; adjusted net income was $205.7 million, up 22.5% year-over-year; adjusted diluted EPS rose 21.1% to $0.86.

• Average daily volume reached $2.5 trillion, up 33.7% year-over-year, with records in U.S. government bonds, European government bonds, mortgages, and credit products.

• Continued investment in technology, automation, and client connectivity, with a focus on innovation and expanding global market presence.

• 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 from 53.7% year-over-year); adjusted EBITDA was $278.2 million, up 26.7% year-over-year.

• Free cash flow for the trailing twelve months was $834 million, up 28.1% year-over-year; Q1 2025 free cash flow was $45.4 million.

• Transaction fees and commissions rose 25.6% to $421.3 million; subscription fees increased 20.7% to $84.7 million year-over-year.

• Board declared a $0.12 per share quarterly dividend, up 20% year-over-year.

• Cash and cash equivalents stood at $1.3 billion with a $500 million undrawn credit facility and no debt.

Outlook and guidance

• Full-year 2025 guidance unchanged: adjusted expenses expected at $970–1,030 million, capex $99–109 million, LSEG market data contract revenue $90 million, and non-GAAP tax rate of 24.5–25.5%.

• CapEx spend expected to increase as the year progresses, mainly due to NYC headquarters relocation.

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