Tradeweb Markets (TW) Q3 2025 earnings summary

Executive summary

• Quarterly revenue reached $508.6–$509 million, up 13–13.3% year-over-year, with international revenue up 24.8–25% and strong contributions from the ICD acquisition and digital asset initiatives.

• Net income rose 61.7% to $210.5 million; adjusted net income increased 15.2% to $206.5 million; adjusted diluted EPS was $0.87, up 16%.

• Adjusted EBITDA margin expanded to 54.0–54.2%, reflecting a balance between growth investments and profitability.

• Record trading volumes and strong client activity across rates, mortgages, swaps, and equities, with digital asset revenues up over 50%.

• Renewed LSEG market data contract for three years with a 9% annual value increase, supporting future growth.

Financial highlights

• Q3 revenues: $508.6–$509 million (+13–13.3% YoY); nine-month revenue reached $1.53 billion (+21.3%).

• Adjusted EBITDA margin: 54.0–54.2%; adjusted EBIT margin: 50.2%; net income margin: 41.4%.

• Free cash flow: $987–$987.5 million (trailing twelve months); cash and equivalents: $1.9–$1.91 billion.

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

• Realized $15 million gain and $50.6–$55.8 million unrealized gain from Canton Coins; 1.7 billion Canton Coins held, valued at $55.8–$56 million.

Outlook and guidance

• Adjusted expense guidance for 2025 tightened to $1.0–$1.025 billion; capex projected at $99–$109 million.

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

• LSEG market data contract revenue expected at ~$92 million for 2025, with $22 million modeled for Q4.

• Continued double-digit growth in technology and communications expenses through 2026.