MIAMI INTERNATIONAL HOLDINGS, INC. Q3 FY2025 earnings call

• Third quarter saw strong results with net revenues growing 57% year-over-year to a record $109.5 million, driven by elevated industry options volumes and increased market share. Market share in multi-listed options reached a record 17.2% in Q3. - Successful IPO in August provided access to capital markets and enhanced brand awareness, allowing retirement of $140 million of debt and building a strong cash position. - MIAX is technology-driven, with purpose-built scalable technology platforms differentiated by throughput, latency, determinism, and reliability. - Launched MIAX Sapphire trading floor in Miami in September to capture volume opportunity in multi-listed options. - In Futures business, launched MIAX Futures Onyx trading platform, plans to list Bloomberg 500 Index futures in Q1 2026 and Bloomberg 100 Index futures thereafter. - In Equities business, focus on maximizing revenue by improving capture rate and profitability, and acquisition of TISE expands listing services to global debt issuers.

For the third quarter, MIAX's total net revenue grew 57% year-over-year to $109.5 million. The Options segment had net revenue of $94.5 million, up 55% year-over-year, contributing approximately 86.3% to total revenue. The Equities segment had net revenue of $4.4 million, up from $2.2 million in the prior year period. The Futures segment had net revenue of $4.8 million compared to $5.3 million in the prior year period. The International segment had net revenue of $5.5 million compared to $0.8 million in the prior year period, due to the acquisition of TISE in June.

• Focus on products already announced, such as Bloomberg Index futures. - Intend to exploit opportunities from existing licenses in options and futures. - Expect continued growth in options due to elevated global volatility and secular tailwinds like retail participation in futures and international investor demand. - Plan to launch new products across exchanges as part of growth initiatives.

Q: Michael Cyprys with Morgan Stanley asked about ambitions for new product opportunities, asset classes, geographies.

A: Thomas Gallagher said near-term focus is on announced products, but if compelling opportunities arise, could jump into areas like economic or political events-based contracts, with near-term focus on exploiting opportunities from existing licenses in options and futures.

Q: Ken Worthington with JPMorgan asked about launch of Sapphire trading floor and market share gains.

A: Shelly Brown said Sapphire trading floor captured about 6.5% of industry trading floor volume in October, but it's a fractional portion of market share growth, and there's room to grow in that segment.

Q: Kyle Voigt with KBW asked about pathway to single stock options with everyday expirations.

A: Shelly Brown said timing depends on regulatory approvals, once multi-list products are approved, will list on 4 options exchanges, and exchange technology supports rapid product innovation and launches.

Q: Jeffrey Schmitt with William Blair asked about October market share jump and complex trades.

A: Shelly Brown said October gains were across all segments, including continued growth in complex orders, and MIAX is the second largest exchange in complex orders.

Q: Patrick O'Shaughnessy with Raymond James asked about retail versus institutional mix.

A: Shelly Brown said focus is on giving market makers ability to provide liquidity, deeper and tighter markets, which draw orders from both retail and institutional markets.

Q: Michael Cyprys with Morgan Stanley asked about expense outlook and stock-based comp.

A: Lance Emmons said total expenses had some uplift in first quarter as public company, expect less expense growth going forward but top line growing heavily, and share-based comp had noise in quarter with option expense more recurring.