Intercontinental Exchange, Inc. Q4 FY2025 earnings call

• 2025 was a landmark year for ICE with record adjusted earnings per share of $6.95, up 14% year over year, and record net revenues of $9.9 billion, up 6% year over year. • Annualized expense synergies from the 2023 Black Knight acquisition exited the year at an annualized rate of approximately $230 million, exceeding the target, and now expect total expense synergies to reach $275 million by 2028. • Fourth - quarter adjusted earnings per share totaled $1.71, up 13% versus prior year, and fourth - quarter net revenues of $2.5 billion increased 7% year over year. • Exchange business achieved record fourth - quarter net revenues, with transaction revenues growing 8% and recurring revenues advancing 6%. • Fixed income data and services segment had strong execution with record recurring revenues and growth in various sub - segments. • Mortgage Technology segment had 5% revenue growth year over year, with strong transaction revenues growth. • Benjamin Jackson discussed the derivatives platform's record - breaking trading volumes and the energy complex's strength. • Benjamin Jackson also talked about the fixed income and data services segment's milestones and the application of AI in mortgage technology. • Jeffrey Sprecher mentioned the development of a tokenized securities platform for NYSE and the approval of a new clearing service for US cash treasuries

Exchange segment: Fourth - quarter net revenues reached $1.4 billion, up 9% year over year. Recurring revenues from exchange data services and NYSE listings franchise reached a record $391 million, up 11% year over year. Fixed income data and services segment: Fourth - quarter revenues totaled $608 million, including $101 million in transaction revenues. Recurring revenues reached a record $507 million, growing 7% year over year. Mortgage Technology segment: Fourth - quarter revenues totaled $532 million, up 5% year over year. Recurring revenues totaled $391 million, and transaction revenues totaled $141 million, up 20% year over year

• Expect Exchange segment recurring revenues to grow in the mid - single - digit range in 2026. • Anticipate fixed income and data services recurring revenue growth in the mid - single - digit range in 2026, with growth expected to trend towards the high end of that range. • Expect total mortgage technology revenues to grow in the low to mid - single - digit range in 2026. • Expect 2026 adjusted operating expenses to grow between 4 - 5%, including approximately $25 million in accelerated stock - based compensation. • Expect depreciation in the euro and pound to add roughly $15 million to $20 million, more than offset by incremental revenue. Excluding these items, expense growth is expected to be in the 3% to 4% range. • Expect 2026 capital expenditures to be between $740 million and $790 million, including installing AI infrastructure and elevated investment in real estate

Q: On the mortgage technology outlook, can you update on the health of the mortgage industry and the technology opportunity?

A: Ben Jackson said the overall mortgage market is showing signs of improvement with refinance opportunities and a better purchase market outlook. In terms of technology, they are accelerating AI - enabled agents and initiatives across Encompass and servicing.

Q: On the FIDS business, can you address the concern about AI disruption and the moats of the business?

A: Chris Edmonds said the data business has three key components: proprietary mission - critical content, data center opportunity, and alpha generation, and the culmination of these makes it hard to replicate.

Q: On the outlook for the futures business, can you talk about drivers and sustainability?

A: Ben Jackson said geopolitical issues and new dynamics like trade deals and Venezuelan market issues are drivers, and the outlook is positive.

Q: On the mortgage side, when will the headwind from lower minimums come off and how to think about incremental transaction revenues?

A: Warren Gardiner said the headwind from lower minimums is improving, with 2020 vintage contracts mostly worked through and 2021 vintage contracts to be worked through this year. On transaction revenues, in a normal environment of 7 - 10 million loans, there is potential for incremental revenue.

Q: On Exchange recurring revenues, can you talk about the difference between this year and last year?

A: Warren Gardiner said it's due to new customers, potential mix from SIP data, and price capture.

Q: On Encompass new customer wins, can you talk about the types of customers and attrition?

A: Ben Jackson said there were 90 deals in the year across all segments, with success in different customer types and no negative impact on attrition.

Q: On the transition from SDKs on the mortgage side, how is it managed?

A: Ben Jackson said the transition to SDK has not been a hindrance to sales success or attrition.

Q: On pricing in general and the energy RPC in January, can you comment?

A: Warren Gardiner said they took a similar pricing approach, picking spots where value was created. The January RPC was due to mix, mainly from strong TTF in the energy complex