Tradeweb Markets . Class A Stock Earnings Reports

Tradeweb reported a strong Q3 2025: revenues of $509M, up 13% year-over-year (11% on constant currency), marking the third consecutive quarter above $500M and putting the company on track for another year of double-digit revenue growth. Key drivers were international expansion (international revenues +25% YoY), record mortgage revenues, strong global swaps (record revenues, >30% YoY growth in swaps) and growth in equities/ETFs and emerging digital asset initiatives. Adjusted EBITDA margin expanded modestly; year-to-date adjusted EBITDA margin was 54.2%. The firm signed an agreement in principle to renew its LSEG market data contract (expected +9% annual value) which management expects to add meaningful revenue (modelers can assume ~$22M for Q4 until finalized). Digital initiatives continue to advance: Tradeweb holds ~1.7B Canton Coins (~$56M fair value) and generated ~$5M YTD from Canton Network activity; Q3 GAAP included a $15M realized gain on Canton Coins. Management is investing for growth—technology, AI and data infrastructure spending will continue to increase into Q4/2026—and tightened full-year adjusted expense guidance to $1.0–1.025B. Balance sheet and capital returns: $1.9B cash, ~ $987M trailing-12-month free cash flow, and the board declared a $0.12 quarterly dividend (+20% YoY). Management reiterated a disciplined capital allocation framework (prioritizing organic investment, then M&A, buybacks and dividends) and remains opportunistic on M&A and share repurchases. Outlook: near-term activity is muted due to unusually low volatility and fewer macro data points (e.g., government shutdown effects), but Tradeweb expects volatility and client re-positioning to return, sees significant runway for further electronification (notably swaps and packaged/voice-driven trades), and expects modest EBITDA margin expansion in 2025 despite continued investments.