Trading platform MarketAxess's Q3 revenue misses on lower variable fees

By Reuters News


Overview

  • Electronic fixed-income trading platform's Q3 revenue grew 1% yr/yr, missing analyst expectations

  • Adjusted EPS for Q3 missed analyst expectations

  • Company cited strong information services revenue and higher trading volumes, but commission revenue was flat


Outlook

  • MarketAxess has suspended the practice of issuing guidance and withdrawn its 2026 annual guidance

  • Company says suspension of guidance is due to pending merger with Intercontinental Exchange


Result Drivers

  • INFORMATION SERVICES - 10% growth in information services revenue, mainly from net new contract revenue, contributed to overall revenue growth

  • HIGHER TRADING VOLUMES - Total trading average daily volume rose 13% with growth across credit and rates products, and market share gains in high yield and municipal bonds

  • LOWER VARIABLE FEES - Decrease in U.S. credit commission revenue due to a 9% drop in variable transaction fee per million, partially offset by higher market volumes and fixed fees


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$210 mln

$219.51 mln (8 Analysts)

Q3 Adjusted EPS

Miss

$1.86

$1.99 (7 Analysts)

Q3 EPS

$1.53

Q3 Net Income

$54 mln

Q3 EBITDA

$91 mln

Q3 Operating Income

$74.4 mln

Q3 Operating Margin

35.4%

Q3 Pretax Profit

$74.83 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy."

  • Wall Street's median 12-month price target for MarketAxess Holdings Inc. is $167.00, about 1.4% above its October 22 closing price of $164.66

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 22 - LSEG to buy Octus in $3.5 billion deal to shield from AI disruption

  • Oct 20 - MSCI climbs after Q3 results beat Wall Street estimates

  • Oct 22 - Nasdaq CEO flags 'modest softening' in IPO market as macro uncertainty hits debuts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.