Cboe 2025-26: Q4 Derivatives +38%, Strategic Realignment
FY25 revenue $4.71B (+15%); op income $1.51B (+38%); NI $1.10B (+44%); EPS $10.42 (+45%). Q4 derivatives +38% YoY (record), SPX 0DTE ADV +66%. Cash & spot +27%; DataVantage +9%. Selling Australia + Canada; closed European derivatives + corporate listings. FY26 guide: total organic mid-single, DataVantage mid-high single, opex $864-879M, capex $73-83M.
Key takeaways
- Q4 was a record quarter — derivatives +38% YoY net revenue. Multi-list options +41%; Index options +40%; SPX 0DTE ADV +66% YoY. The zero-day-to-expiry retail flow has now compounded for 4 consecutive years and is structurally embedded.
- Cash & spot markets +27% in Q4. Europe + APAC +24% (FX +33% NTC fees, +22% net rev); North American Equities +18% on volume. Global FX standout — diversification away from US options-only narrative.
- DataVantage +9%, ~90% from new units / new sales. The $1B+ recurring-revenue franchise hit. FY26 guide mid-to-high-single — confirming durable growth above the rest of the business.
- Strategic portfolio realignment. Sales process started for Cboe Australia + Cboe Canada. Closed European derivatives + corporate listings. Streamlined to options + DataVantage + global FX core. Confirms "win where we're strongest" capital discipline.
- FY26 guide framework conservative. Total organic mid-single; DataVantage mid-high single; adj opex $864-879M (vs FY25 ~$840M); capex $73-83M; tax rate 27.5-29.5%. Mgmt has historically beaten this kind of mid-single guide.
Business
Cboe Global Markets is the leading global derivatives + cash + data exchange operator with four reportable segments:
- Derivatives (~50% of revenue, fastest-growing). SPX index options, VIX options, multi-list options. The crown jewel. Q4 record. SPX 0DTE ADV +66% YoY. Russell 2000 added to global trading hour. Monday + Wednesday expirations launched.
- Cash & Spot Markets (~25%). North American Equities + Europe Equities + Global FX + Cboe Digital. NA Equities benefit from elevated volume; Europe + APAC benefit from FX expansion.
- DataVantage (~20%). Market data + indices + analytics. ~$1B annual run-rate. Recurring + sticky. ~90% growth from new units / new logos. Closest comp: ICE/SPGI data businesses.
- Other / corporate listings (residual). Closed in late 2025 as part of strategic realignment.
Strategic actions FY25:
- Started sales process for Cboe Australia + Cboe Canada
- Closed Cboe Europe derivatives exchange (FedEx) Jan 2026
- Ceased corporate listings operations
- Leadership changes: Heidi Fisher (Head of Cash + Spot), Scott Johnston (COO), Christopher Isaacson advisor
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 3.96 | 3.77 | 4.09 | 4.71 |
| Revenue YoY | +9% | -5% | +9% | +15% |
| Gross profit ($B) | 1.74 | 1.92 | 2.07 | 2.31 |
| Op income ($B) | 0.49 | 1.06 | 1.10 | 1.51 |
| Op margin | 12.4% | 28.0% | 26.8% | 32.1% |
| Net income ($B) | 0.24 | 0.76 | 0.76 | 1.10 |
| Diluted EPS ($) | 2.20 | 7.13 | 7.21 | 10.42 |
| FCF ($B) | 0.81 | 0.75 | 0.96 | 1.15 |
| Capex ($M) | -60 | -45 | -61 | -71 |
| Total debt ($B) | 1.87 | 1.61 | 1.60 | 1.68 |
| Dividends ($M) | -209 | -224 | -249 | -284 |
| Buyback ($M) | -110 | -115 | -226 | -97 |
The earnings print is excellent: Op margin 32.1% (vs 26.8% FY24, +530bp); EPS $10.42 (+45% YoY); FCF $1.15B (+20% YoY). Q4 alone was record derivatives quarter, and the streak goes back multiple years.
The model's leverage to volatility regime + retail/0DTE flow + index option growth means CBOE has structural compounding — not just cyclical bounce.
Capital allocation
- Capex: $-71M FY25 (1.5% of revenue). Light-asset model.
- Dividends: $-284M FY25 (+14% YoY). Steady raise pattern.
- Buybacks: $-97M FY25 (down from $-226M FY24). Pace slowed — implication: portfolio realignment + Cboe Australia/Canada divestitures preserve flexibility.
- Debt: $1.68B (vs $1.60B FY24). Stable.
- FCF: $1.15B (+20%) — well above capital return. Headroom for tuck-in M&A or accelerated buyback.
FY26 outlook (per Q4 2025 call, 2026-02-06)
| FY26 framework | Detail |
|---|---|
| Total organic net revenue | Mid-single-digit |
| DataVantage organic net revenue | Mid to high single-digit |
| Adj operating expense | $864M to $879M |
| Capex | $73M to $83M |
| Adj effective tax rate | 27.5% to 29.5% |
| Net interest income | $3M to $4M positive |
The mid-single-digit organic guide is a consistent CBOE pattern — meet/beat playbook. Implied FY26 revenue range: ~$4.85-4.95B (vs $4.71B FY25).
Key risks
- Volume / volatility regime. SPX 0DTE depends on retail engagement + market volatility. Sustained low-vol regime would compress trading volumes.
- Regulatory. SEC review of options market structure / 0DTE concerns / payment-for-order-flow has been a recurring overhang.
- Competition. ICE / NDAQ / CME compete in adjacent spaces. Index option proprietary nature still strong but contested.
- Portfolio simplification execution. Australia + Canada divestiture timing + price + impact on FY26 reported revenue.
- DataVantage growth durability. Mid-high single-digit guide depends on continuing new logo wins.
- Geopolitical. Q4 earnings call flagged geopolitical + economic uncertainty as macro risk to volumes.
Bottom line
CBOE FY25 is a clean-execution year: record derivatives quarter, +15% revenue, +45% EPS, op margin to 32%, strategic pruning (Australia/Canada/listings/EU derivatives) to focus on highest-margin franchises. FY26 guide for mid-single organic + mid-high DataVantage is conservative — track record says they beat. Risks are regulatory (0DTE), volume regime, and execution on portfolio realignment. The structural story (0DTE + index options + DataVantage recurring) remains the cleanest exchange compounder ex-ICE/SPGI.
Citations
- Cboe Global Markets, Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- CBOE Q4 2025 earnings call, 2026-02-06 — Q4 record net rev $671M; derivatives +38% YoY; SPX 0DTE ADV +66%; cash + spot +27%; DataVantage +9%; FY26 guide (mid-single organic, $864-879M opex, $73-83M capex, 27.5-29.5% tax).
- Cboe strategic realignment disclosures (Cboe Australia/Canada sales process; Cboe Europe derivatives closure Jan 2026; corporate listings ceased).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).