MarketAxess Sets New Record with Q2 2025 Earnings, Revenue Hits $219.5M, EPS at $1.91

MarketAxess Holdings reported Q2 2025 revenue of $219.5mln, an 11% increase YoY, surpassing estimates. However, EPS fell short of estimates at $1.91. The company's focus on expanding its trading solutions and client engagement has contributed to its strong performance. Despite challenges in transaction fees and expenses, MarketAxess is well-positioned for future growth.

MarketAxess Holdings Inc. (Nasdaq: MKTX) reported its financial results for the second quarter of 2025, with total revenues reaching $219.5 million, an 11% increase year-over-year (YoY) [1]. The company's strong performance was driven by record levels of commission revenue and significant growth in average daily volume (ADV) across various product areas and regions.

Key highlights of the quarter include:
- Revenue Growth: Total revenues increased by 11% to $219.5 million, with an approximate $2.1 million boost from foreign currency fluctuations.
- Commission Revenue: Commission revenue reached $191.8 million, up 12% compared to the same period last year. This was driven by record credit commission revenue, up 10%, and rates commission revenue, up 40%.
- ADV Growth: The company saw record levels of ADV across U.S. credit block trading (+37%), emerging markets (+27%), and eurobonds (+100%). Total portfolio trading ADV increased by 69% to $1.5 billion, and dealer-initiated ADV rose by 40% to $1.8 billion.
- Expenses: Total expenses of $127.6 million increased by 10%, with notable items including repositioning charges and acquisition-related charges.

However, earnings per share (EPS) fell short of estimates at $1.91, a 16% increase excluding notable items [1]. The company attributed the decline in EPS to notable items, which include repositioning charges and acquisition-related charges.

MarketAxess CEO Chris Concannon commented on the results, stating, "In the second quarter, we made significant strides in enhancing our client franchise, increasing client engagement with X-Pro, and delivering on our new initiatives across our client-initiated, portfolio trading and dealer-initiated channels. Strong progress with our new initiatives, combined with a favorable market backdrop, helped drive record levels of revenue and ADV across most product areas and regions in the quarter."

Despite challenges in transaction fees and expenses, MarketAxess is well-positioned for future growth. The company is focused on expanding its targeted block trading solution in the client-initiated channel, enhancing its portfolio trading solution for clients, and launching its new Mid-X solution in the dealer-initiated channel.

References
[1] https://investor.marketaxess.com/news/news-details/2025/MarketAxess-Reports-Second-Quarter-2025-Financial-Results/default.aspx