Tradeweb 2025-26: Revenue $2B (+19%), 26th Record Year, ADV +26%
FY25 revenue $2.05B (+19%); op income $827M (+22%); NI $813M (+62%); EPS $3.78. 26 consecutive record annual revenue years. Q4 record. January 2026 ADV +26% YoY. Fully electronic bilateral swaptions; Saudi Royal Bonds + Mexican repos; dealer algo solutions; on-chain digital asset transactions. FY26 adj expenses $1.1-$1.16B (midpoint +11%). Margin expansion + EBITDA expansion expected.
Key takeaways
- 26th consecutive record annual revenue year — and 2025 was the best. Annual revenue >$2B for first time. The compounding pattern is fundamentally structural — secular shift to electronic bond + derivatives trading.
- January 2026 average daily revenue +26% YoY. Strong start to FY26 — even before formal FY26 guide. Enterprise + retail flow + algo trading + new asset class adoption all contributing.
- Electronic trading extended into manual asset classes. Fully electronic bilateral swaptions launched; Saudi Royal Bonds + Mexican repos platforms; uncleared swaps + block trading in global credit. The TAM expansion is broad.
- Digital assets move forward. Partnered with start-ups; on-chain transactions; advanced market infrastructure for digital assets. Future asset class growth lever.
- FY26 adj expenses $1.1-$1.16B (+11% midpoint). Investment continuing — but EBITDA + margin expansion expected on top-line operating leverage. CapEx + capitalized software $107-$117M.
Business
Tradeweb Markets, Inc. is a leading global operator of electronic marketplaces for fixed income + derivatives + ETFs. Three primary segments + asset class diversity:
- Rates (~50% of revenue). Treasury + Eurozone gov bonds + UK gilts + JGBs + Treasury futures + interest rate swaps + swaptions.
- Credit (~30%). Corporate credit + IG / HY + munis + CDS + EM credit. Block trading in global credit added FY25.
- Money Markets + Equities (~20%). Repos + commercial paper + ETFs.
Strategic moves FY25:
- Fully electronic bilateral swaptions launched (industry first)
- Saudi Royal Bonds platform launched
- Mexican repos platform launched
- Block trading expanded in global credit
- RFQ offering enhanced
- Dealer algo solutions rolled out
- Digital assets: on-chain transactions + start-up partnerships
- LSAG (London Stock Exchange Group) master data agreement contributing $105M FY26
- Music + sports partnerships boosted brand
- 26th consecutive record annual revenue year
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 1.19 | 1.34 | 1.73 | 2.05 |
| Revenue YoY | n/a | +13% | +29% | +19% |
| Op income ($M) | 413 | 505 | 678 | 827 |
| Op margin | 34.7% | 37.8% | 39.3% | 40.3% |
| Net income ($M) | 309 | 365 | 502 | 813 |
| Diluted EPS ($) | 1.48 | 1.71 | 2.34 | 3.78 |
| FCF ($M) | 573 | 684 | 857 | 1,127 |
| Capex ($M) | -60 | -62 | -41 | -41 |
| Total debt ($M) | 28 | 49 | 36 | 278 |
| Dividends ($M) | -66 | -76 | -85 | -102 |
| Buyback ($M) | -99 | -35 | -59 | -104 |
The earnings progression: revenue 4-yr CAGR ~15%; op margin 34.7% → 40.3% (+560bp); EPS $1.48 → $3.78 (+155% over 3 yrs). FCF $1.13B (+32% YoY).
Total debt $278M (+670%) from $36M reflects modest debt issuance in FY25. Asset-light business model.
Capital allocation
- Capex: $-41M FY25 (2% of revenue, asset-light).
- Dividends: $-102M FY25 (+20% YoY).
- Buybacks: $-104M FY25 (+76% YoY).
- Debt: $278M (modest leverage).
- FCF: $1.13B (+32%).
FY26 outlook (per Q4 2025 call, 2026-02-05)
| FY26 framework | Detail |
|---|---|
| Adjusted expenses | $1.1B to $1.16B (midpoint +11% YoY) |
| Adj EBITDA | Expansion expected |
| Operating margin | Expansion expected |
| Net interest income | ~$15M |
| CapEx + capitalized software | $107M to $117M |
| LSAG master data agreement revenue | ~$105M (spread evenly across quarters) |
| January 2026 ADV YoY | +26% (strong start) |
The +11% expense growth + EBITDA expansion implies revenue growth high-teens-to-20% — i.e., consistent with the FY25 trajectory.
Key risks
- Interest rate cycle. Treasury + rate trading volumes correlated to rate volatility regime.
- Competitive electronic trading. Bloomberg + MarketAxess + others compete in electronic fixed income.
- Asset class TAM expansion. New asset classes (digital assets, EM markets) require execution + partner adoption.
- Regulatory changes. SEC + CFTC + FINRA rules affect trading workflow + business model.
- LSAG agreement timing. $105M FY26 contribution depends on contract execution + spread.
- FX volatility. Global business with multi-currency exposure.
Bottom line
TW FY25 is the structural compounding year #26: revenue +19% to >$2B, op margin 40.3% (+100bp), EPS +62%, FCF +32%, January 2026 ADV +26% YoY start. Electronic trading TAM expansion in swaptions + emerging markets + block trading + digital assets provides multi-year compounding. FY26 expense $1.1-$1.16B (+11%) implies operating leverage continues. Risks are rate cycle + competition + regulatory. Best-in-class electronic fixed income platform with the highest-quality compounding profile in capital markets.
Citations
- Tradeweb Markets, Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- TW Q4 2025 earnings call, 2026-02-05 — FY revenue >$2B (+19%); 26 consecutive record annual revenue years; FY26 adj expense $1.1-$1.16B; January 2026 ADV +26% YoY; CapEx + capitalized software $107-$117M; LSAG $105M FY26.
- TW Q3 2025 / Q2 2025 / Q1 2025 earnings calls — supporting growth + product innovation milestones (assumed in line with Q4 FY25 trajectory).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).