MarketAxess 2025 Q3 Earnings Beats Expectations Despite 4.5% Net Income Drop

MarketAxess Holdings (MKTX) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue rising 1.0% year-over-year to $208.82 million. The company exceeded earnings estimates, though net income declined 4.5% to $68.27 million. Management reaffirmed full-year 2025 expense guidance but provided no explicit revenue or EPS forecasts, citing cautious optimism about future growth.

Revenue

Total revenue grew modestly to $208.82 million, driven by diversified revenue streams. Commissions remained the largest contributor at $180.17 million, while information services and post-trade services added $13.79 million and $11.29 million, respectively. Technology services, though a smaller segment, saw $3.57 million in revenue. The 1% year-over-year increase reflects resilience in non-U.S. credit markets, where growth reached 10%, offsetting challenges in the U.S. credit segment.

Earnings/Net Income

Earnings per share (EPS) fell 3.2% to $1.84, down from $1.90 in 2024 Q3, while net income declined to $68.27 million. The EPS decline, despite beating estimates, highlights ongoing margin pressures from competitive pricing and tight spreads in U.S. credit.

Post-Earnings Price Action Review

Following the earnings release, MarketAxess shares edged down 0.67% on the latest trading day but gained 4.50% over the prior week. Month-to-date, the stock has declined 2.82%, reflecting mixed investor sentiment. The post-earnings performance underscores uncertainty around U.S. credit market challenges and the company’s ability to offset margin pressures through innovation.

CEO Commentary

Christopher Concannon emphasized progress in international markets and new initiatives like block trading and portfolio trading, which saw 10% and 20% growth in average daily volume, respectively. However, he acknowledged headwinds in U.S. credit due to protocol competition and tight spreads. The CEO expressed confidence in technology investments and strategic execution to drive long-term growth.

Guidance

The company reaffirmed non-GAAP expense guidance of $501–$521 million for 2025, targeting the low end. While no revenue or EPS guidance was provided, management highlighted free cash flow of $385 million over the trailing 12 months and $105 million remaining under the share repurchase authorization.

Additional News

Within three weeks of the earnings report, MarketAxess announced a $0.76 quarterly dividend (annualized $3.04), yielding 1.8%, and launched Mid-X in U.S. credit to enhance dealer-initiated trading. Additionally, Zacks Investment Research noted the stock’s Zacks Rank #5 (Strong Sell) due to unfavorable earnings estimate revisions. These developments signal a dual focus on shareholder returns and product innovation to address market challenges.

MarketAxess’s strategic moves to modernize its platform, including standardized auction protocols and AI-driven tools like CP+™, aim to strengthen liquidity and workflow efficiency for dealers. The dividend announcement and buyback authorization further underscore its commitment to capital allocation. However, intensifying competition in U.S. credit and fee compression remain key risks to monitor.