Tradeweb Markets (TW) Q2 2025 earnings summary

Executive summary

• Quarterly revenue reached $513.0 million, up 26.7% year-over-year, with international revenue up 41% and strong contributions from the ICD acquisition.

• Net income rose 28.7% to $175.5 million; adjusted net income increased 23.7% to $206.1 million; adjusted diluted EPS was $0.87, up 24.3%.

• Adjusted EBITDA margin expanded to 54.2%, up 70 basis points year-over-year; adjusted EBIT margin increased to 50.7%.

• Record trading volumes and strong growth in global IRS, U.S. Treasuries, global ETFs, and money markets, with ADV up 32.7% year-over-year.

• Continued investment in electronic trading, digital assets, and innovative protocols, supporting ongoing growth.

Financial highlights

• Trading revenues totaled $474.7 million, up 28.4% year-over-year; total revenue was $513.0 million, up 26.7%.

• Adjusted EBITDA was $277.9 million, up 28.3% year-over-year; free cash flow for the trailing twelve months reached $951.7 million.

• Adjusted expenses increased 24.1% year-over-year to $252.6 million, mainly from higher compensation, technology, and FX losses.

• Cash and cash equivalents stood at $1.6 billion at quarter-end, with an undrawn $500 million credit facility.

• Quarterly dividend increased 20% year-over-year to $0.12 per share.

Outlook and guidance

• Adjusted expense guidance for 2025 raised to $1.0–$1.05 billion, trending toward the midpoint.

• Capital expenditures for 2025 expected between $99 million and $109 million, including NYC headquarters relocation.

• 2025 adjusted EBITDA margin expected to exceed 2024, though expansion will be more modest.

• Revenue from the LSEG master data agreement projected at ~$90 million, up ~10% from 2024.

• Investments to accelerate in H2 2025, focusing on U.S. and European credit, mortgages, global repos, and digital assets.