Cboe's Q2 2025 Earnings Call: Unpacking Contradictions in Index Options, Data Vantage Growth, and Market Strategy

Index options market performance, data vantage growth expectations, focus on core vs inorganic growth, single stock 0DTE and SPX options relationship, and market share loss in multi-listed options are the key contradictions discussed in Cboe Global Markets' latest 2025Q2 earnings call.



Record Revenue and Earnings Growth:
- Cboe Global Markets reported record net revenue of $587 million for Q2 2025, representing a 14% year-over-year increase.
- The growth was driven by robust volumes across derivative products, strong new sales in the Cboe Data Vantage business, resilient industry volumes in cash and spot markets, and disciplined expense management.

Derivative Markets Performance:
- The Derivatives franchise delivered a record quarter with organic net revenue increasing 17% year-over-year.
- This growth was supported by heightened market volatility, especially in index options, with SPX options volumes jumping 21% year-over-year.
- Increased institutional investor activity and robust retail engagement, particularly as volatility moderated, contributed to the strong performance.

Cash and Spot Markets Strength:
- The company's Cash and Spot Markets segment achieved a 11% increase in net revenue, with a significant 30% increase in the Europe and Asia Pacific segment.
- The growth was attributed to strong industry volumes and positive market share gains, particularly in Europe, and the segment's nontransaction revenues also rose by 21% year-over-year.

Data Vantage Business Expansion:
- Net revenue for the Data Vantage category improved by 11% on a year-over-year basis, with strong contributions from subscription-based data, analytics, and index products.
- The growth was driven by international demand, with approximately 45% of new data sales occurring outside the U.S., and new hires in the Asia Pacific region aiming to leverage market growth opportunities.