MarketAxess Reports First Quarter 2025 Financial Results
EPS of
Record Total ADV Driven by Record Credit ADV with Record Open Trading ADV of
Record Total Portfolio Trading ADV and Record Levels of Block Trading in
1Q25 select financial and operational highlights*
-
Total revenues of
$208.6 million , including a decrease ofapproximately$0.3 million from the impact of foreign currency fluctuations, decreased 1% compared to the prior year.- 2% decline in total commission revenue driven by 3% decline in total credit commissions, partially offset by 34% increase in total rates commission revenue.
- Record emerging markets (+6%) and record eurobonds (+5%) commission revenue helped to partially offset 7% decline in
U.S. credit commission revenue. - Record services revenue (combined information, post-trade and technology services revenue) of
$27 million , up 7%.
-
Record ADV achieved across strategic priority related protocols and workflow tools, including:
- Emerging markets and eurobonds block trading ADV, up 22% and 68%, respectively.
-
Total portfolio trading ADV of
$1.3 billion , up 78%. -
Dealer RFQ ADV of
$1.8 billion , up 40%. -
Open Trading ADV of
$4.8 billion , up 8%.
-
Total expenses of
$120.2 million ,up 2%,includinga decrease of approximately$0.3 million from the impact of foreign currency fluctuations. - Effective tax rate of 84.3%.1 The effective tax rate excluding notable items1 was 27.2%.
-
Diluted earnings-per-share (“EPS”) of
$0.40 on net income of$15.1 million; EPS of$1.87 on net income of$70.0 million , each excluding notable items.1
*All comparisons versus 1Q24
“We generated record daily volumes across most of our product areas in the first quarter, including record portfolio trading ADV and record block trading ADV across both emerging markets and eurobonds.
During 1Q25 and continuing in early 2Q25, we have been encouraged by the performance of our platform and protocols as our clients have navigated the ongoing credit market volatility. Open Trading activity reached record levels in 1Q25, and we continue to see higher levels of velocity. We believe that MarketAxess’ platform is well-positioned in this environment. Looking ahead, we expect the new capabilities launched with our targeted block solution and enhancements to portfolio trading should help drive higher levels of market share in
Table 1: 1Q25 select financial results
| Quarter | % Change | |||||||||||||||
|
|
1Q25 |
|
|
4Q24 |
|
|
1Q24 |
|
YoY | QoQ | ||||||
| $ in millions, except per share data (unaudited) | ||||||||||||||||
| Revenues |
$ |
209 |
|
$ |
202 |
|
$ |
210 |
|
(1 |
) |
% |
3 |
|
% |
|
| Operating Income |
|
88 |
|
|
80 |
|
|
93 |
|
(4 |
) |
11 |
|
|||
| Net Income |
|
15 |
|
|
65 |
|
|
73 |
|
(79 |
) |
(77 |
) |
|||
| Diluted EPS |
|
0.40 |
|
|
1.73 |
|
|
1.92 |
|
(79 |
) |
(77 |
) |
|||
| Net Income Margin |
|
7.2 |
% |
|
32.2 |
% |
|
34.5 |
% |
(79 |
) |
(78 |
) |
|||
| EBITDA2 |
|
107 |
|
|
97 |
|
|
109 |
|
(2 |
) |
11 |
|
|||
| EBITDA Margin2 |
|
51.5 |
% |
|
47.8 |
% |
|
51.9 |
% |
(1 |
) |
8 |
|
|||
1Q25 overview of results
Table 1A: Notable items
| Quarter | |||
|
1Q25 |
4Q24 |
1Q24 |
|
| $ in millions, except per share data (unaudited) | |||
| Reserve for uncertain tax positions related to prior periods |
54.9 |
- |
- |
| EPS impact |
1.47 |
- |
- |
Notable items 1
-
Reserve for uncertain tax positions of approximately
$54.9 million taken related to prior periods. The Company established a reserve in 1Q25 following a NY statetax court’s issuance of an opinion that impacted the Company’s uncertain tax positions. The Company was not a party to the case, but its historical tax filing position was not supported by the Court’s decision.
Commission revenue
Table 1B: 1Q25 variable transaction fees per million (FPM)
| Quarter | % Change | ||||||||||||||
|
|
1Q25 |
|
4Q24 |
|
1Q24 |
YoY | QoQ | ||||||||
|
AVG. VARIABLE TRANS. |
|||||||||||||||
| Total Credit |
$ |
139 |
$ |
150 |
$ |
154 |
(10 |
) |
% |
(7 |
) |
% |
|||
| Total Rates |
|
4.20 |
|
4.31 |
|
4.79 |
(12 |
) |
(3 |
) |
|||||
Credit
-
Total credit commission revenue of
$169.1 million (including$33.3 million in fixed-distribution fees) decreased$5.7 million, or 3%, compared to$174.8 million (including$33.3 million in fixed-distribution fees) in the prior year, but increased 4% from 4Q24 levels. A 7% decline inU.S. credit commission revenue, principally due to lower total credit variable transaction fee per million (“FPM”) and lower estimated market share, was partially offset by a 6% increase in emerging markets and Eurobonds commission revenue, as well as a 6% increase in municipal bonds commission revenue, reflecting continued strong product and geographic diversification. The decline in 1Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to product mix.
Rates
-
Total rates commission revenue of
$7.0 million increased$1.8 million , or 34%, compared to the prior year. Total rates ADV of$27.0 billion increased 53% compared to the prior year, but decreased 1% compared to 4Q24. The decrease in 1Q25 total rates FPM compared to the prior year and the prior quarter was driven by the impact of product mix.
Other
-
Total other commission revenue of
$5.2 million, which consists ofPragma -related commission revenue, increased 8% driven byhigher equities commissions.
Services revenue
-
Record services revenue of
$27.2 million increased$1.8 million, or 7%, compared to the prior year, driven principally by a 9% increase in information services revenue.
Information services
-
Information services revenue of
$12.9 million increased$1.0 million, or 9%, compared to the prior year. The increase was principally driven by net new data contract revenue.
Post-trade services
-
Post-trade services revenue of
$11.1 million increased$0.4 million , or 3%, compared to the prior year mainly due to net new contract revenue, partially offset by a decrease of$0.2 million from the impact of foreign currency fluctuations.
Technology services
-
Total technology services revenue of
$3.2 million increased$0.4 million , or 14%, compared to the prior year.The increase was driven by higherPragma -related license and connectivity fees.
Expenses
-
Total expenses of
$120.2 million increased 2% from the prior year, including a decrease of$0.3 million from the impact of foreign currency fluctuations.
Non-operating
-
Other income (expense): Other income was
$7.8 million, up from$4.2 million in the prior year. The increase was driven by higher interest income earned on our cash and investments, unrealized gains on ourU.S. treasury investments compared to unrealized losses in the prior year, and lower foreign exchange losses compared to the prior period. - Tax rate: The effective tax rate was 84.3%, up from 24.9% in the prior year. The effective tax rate excluding notable items1 was 27.2%.
Capital
-
The Company had
$642.1 million in cash, cash equivalents, corporate bond investments andU.S. Treasury investments as ofMarch 31, 2025 , down from$698.6 million as ofDecember 31, 2024 .There were no outstanding borrowings under the Company’s credit facility. -
A total of 250,792 shares were repurchased year-to-date through
April 2025 at a cost of$51.7 million , including 187,905 shares repurchased during the first quarter at a cost of$38.1 million . As of April30, 2025, a total of$173.4 million remained under the Board of Directors’ share repurchase authorization. -
The Board declared a quarterly cash dividend of
$0.76 per share, payable onJune 4, 2025 to stockholders of record as of the close of business onMay 21, 2025 .
Other
-
Employee headcount was 870 as of
March 31, 2025 , consistent withMarch 31, 2024 , but down from 891 as ofDecember 31, 2024 .
Guidance
- Due to the reserve noted above, the GAAP-basis effective tax rate for full year 2025 is now expected to be between 41.0% and 42.0%,assuming no material changes in applicable tax laws; the effective tax rate excluding notable items1 is expected to be between 26.0% and 27.0%. Previously, the GAAP-basis effective tax rate stated guidance range was between 23.5% and 24.5%.
|
1 |
See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures. |
|
2 |
EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures. |
Non-GAAP financial measures and other items
To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8for a reconciliation of: (i) GAAP net income, EPS and the effective tax rate to net income, EPS and the effective tax rate, each excluding notable items; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure.
Webcast and conference call information
General Notes Regarding the Data Presented
Reported
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the
About
|
Table 2: Consolidated Statements of Operations |
|||||||||||||
|
|
|
Three Months Ended |
|
|
|||||||||
|
|
|
|
|
|
|||||||||
|
In thousands, except per share data (unaudited) |
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
|||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
181,343 |
|
|
$ |
184,873 |
|
|
|
(2 |
) |
% |
|
Information services |
|
|
12,904 |
|
|
|
11,881 |
|
|
|
9 |
|
|
|
Post-trade services |
|
|
11,088 |
|
|
|
10,730 |
|
|
|
3 |
|
|
|
Technology services |
|
|
3,241 |
|
|
|
2,834 |
|
|
|
14 |
|
|
|
Total revenues |
|
|
208,576 |
|
|
|
210,318 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
61,916 |
|
|
|
61,264 |
|
|
|
1 |
|
|
|
Depreciation and amortization |
|
|
18,236 |
|
|
|
18,200 |
|
|
|
— |
|
|
|
Technology and communications |
|
|
18,048 |
|
|
|
17,051 |
|
|
|
6 |
|
|
|
Professional and consulting fees |
|
|
6,410 |
|
|
|
6,395 |
|
|
|
— |
|
|
|
Occupancy |
|
|
3,622 |
|
|
|
3,425 |
|
|
|
6 |
|
|
|
Marketing and advertising |
|
|
2,061 |
|
|
|
1,833 |
|
|
|
12 |
|
|
|
Clearing costs |
|
|
4,185 |
|
|
|
4,911 |
|
|
|
(15 |
) |
|
|
General and administrative |
|
|
5,716 |
|
|
|
4,739 |
|
|
|
21 |
|
|
|
Total expenses |
|
|
120,194 |
|
|
|
117,818 |
|
|
|
2 |
|
|
|
Operating income |
|
|
88,382 |
|
|
|
92,500 |
|
|
|
(4 |
) |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
7,169 |
|
|
|
5,973 |
|
|
|
20 |
|
|
|
Interest expense |
|
|
(213 |
) |
|
|
(316 |
) |
|
|
(33 |
) |
|
|
Equity in earnings of unconsolidated affiliate |
|
|
289 |
|
|
|
370 |
|
|
|
(22 |
) |
|
|
Other, net |
|
|
527 |
|
|
|
(1,810 |
) |
|
NM |
|
|
|
|
Total other income (expense) |
|
|
7,772 |
|
|
|
4,217 |
|
|
|
84 |
|
|
|
Income before income taxes |
|
|
96,154 |
|
|
|
96,717 |
|
|
|
(1 |
) |
|
|
Provision for income taxes |
|
|
81,089 |
|
|
|
24,102 |
|
|
|
236 |
|
|
|
Net income |
|
$ |
15,065 |
|
|
$ |
72,615 |
|
|
|
(79 |
) |
|
|
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.40 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
Diluted |
|
$ |
0.40 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
Cash dividends declared per common share |
|
$ |
0.76 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
Weighted-average common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
37,388 |
|
|
|
37,740 |
|
|
|
|
|
|
|
Diluted |
|
|
37,456 |
|
|
|
37,790 |
|
|
|
|
|
|
|
NM - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3: Commission Revenue Detail |
|||||||||||||||||||||||||||
|
In thousands, except fee per million data |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(unaudited) |
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Variable transaction fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
$ |
135,840 |
|
|
$ |
141,504 |
|
|
|
(4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rates |
|
|
|
6,919 |
|
|
|
5,166 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
5,232 |
|
|
|
4,849 |
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total variable transaction fees |
|
|
|
147,991 |
|
|
|
151,519 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed distribution fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
|
33,265 |
|
|
|
33,288 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rates |
|
|
|
87 |
|
|
|
66 |
|
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total fixed distribution fees |
|
|
|
33,352 |
|
|
|
33,354 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commission revenue |
|
|
$ |
181,343 |
|
|
$ |
184,873 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average variable transaction fee per million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
$ |
139 |
|
|
$ |
154 |
|
|
|
(10 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rates |
|
|
|
4.20 |
|
|
|
4.79 |
|
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4: Trading Volume Detail* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
||||||||||||||||||||||
|
In millions (unaudited) |
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
461,308 |
|
|
$ |
7,562 |
|
|
$ |
455,998 |
|
|
|
$ |
7,475 |
|
|
|
1 |
|
% |
|
1 |
|
% |
|
High-yield |
|
|
|
89,997 |
|
|
|
1,475 |
|
|
|
85,379 |
|
|
|
|
1,400 |
|
|
|
5 |
|
|
|
5 |
|
|
|
Emerging markets |
|
|
|
240,285 |
|
|
|
3,939 |
|
|
|
221,427 |
|
|
|
|
3,630 |
|
|
|
9 |
|
|
|
9 |
|
|
|
Eurobonds |
|
|
|
147,917 |
|
|
|
2,348 |
|
|
|
128,849 |
|
|
|
|
2,045 |
|
|
|
15 |
|
|
|
15 |
|
|
|
Other credit |
|
|
|
36,482 |
|
|
|
598 |
|
|
|
26,335 |
|
|
|
|
432 |
|
|
|
39 |
|
|
|
38 |
|
|
|
Total credit trading |
|
|
|
975,989 |
|
|
|
15,922 |
|
|
|
917,988 |
|
|
|
|
14,982 |
|
|
|
6 |
|
|
|
6 |
|
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,582,081 |
|
|
|
25,936 |
|
|
|
1,045,796 |
|
|
|
|
17,144 |
|
|
|
51 |
|
|
|
51 |
|
|
|
Agency and other government bonds |
|
|
|
65,825 |
|
|
|
1,047 |
|
|
|
31,626 |
|
|
|
|
506 |
|
|
|
108 |
|
|
|
107 |
|
|
|
Total rates trading |
|
|
|
1,647,906 |
|
|
|
26,983 |
|
|
|
1,077,422 |
|
|
|
|
17,650 |
|
|
|
53 |
|
|
|
53 |
|
|
|
Total trading |
|
|
$ |
2,623,895 |
|
|
$ |
42,905 |
|
|
$ |
1,995,410 |
|
|
|
$ |
32,632 |
|
|
|
31 |
|
|
|
31 |
|
|
|
Number of |
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
|
|
|
||
|
Number of |
|
|
|
|
|
|
63 |
|
|
|
|
|
|
|
63 |
|
|
|
|
|
|
|
|
|
|
||
|
1 The number of |
|||||||||||||||||||||||||||
|
2 The number of |
|||||||||||||||||||||||||||
|
*Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, |
|||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Table 5: Consolidated Condensed Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|||||
|
In thousands (unaudited) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
486,224 |
|
|
$ |
544,478 |
|
|
|
Cash segregated under federal regulations |
|
|
47,514 |
|
|
|
47,107 |
|
|
|
Investments, at fair value |
|
|
166,113 |
|
|
|
165,260 |
|
|
|
Accounts receivable, net |
|
|
109,171 |
|
|
|
91,845 |
|
|
|
Receivables from broker-dealers, clearing organizations and customers |
|
|
493,613 |
|
|
|
357,728 |
|
|
|
|
|
|
236,706 |
|
|
|
236,706 |
|
|
|
Intangible assets, net of accumulated amortization |
|
|
94,430 |
|
|
|
98,078 |
|
|
|
Furniture, equipment, leasehold improvements and capitalized software, net |
|
|
107,858 |
|
|
|
107,298 |
|
|
|
Operating lease right-of-use assets |
|
|
56,624 |
|
|
|
58,132 |
|
|
|
Prepaid expenses and other assets |
|
|
79,843 |
|
|
|
82,584 |
|
|
|
Total assets |
|
$ |
1,878,096 |
|
|
$ |
1,789,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Accrued employee compensation |
|
$ |
30,912 |
|
|
$ |
68,054 |
|
|
|
Payables to broker-dealers, clearing organizations and customers |
|
|
318,866 |
|
|
|
218,845 |
|
|
|
Income and other tax liabilities |
|
|
80,987 |
|
|
|
3,683 |
|
|
|
Accounts payable, accrued expenses and other liabilities |
|
|
29,215 |
|
|
|
37,320 |
|
|
|
Operating lease liabilities |
|
|
70,803 |
|
|
|
72,654 |
|
|
|
Total liabilities |
|
|
530,783 |
|
|
|
400,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
123 |
|
|
|
123 |
|
|
|
Additional paid-in capital |
|
|
348,708 |
|
|
|
350,701 |
|
|
|
|
|
|
(370,342 |
) |
|
|
(333,369 |
) |
|
|
Retained earnings |
|
|
1,392,279 |
|
|
|
1,405,904 |
|
|
|
Accumulated other comprehensive loss |
|
|
(23,455 |
) |
|
|
(34,699 |
) |
|
|
Total stockholders' equity |
|
|
1,347,313 |
|
|
|
1,388,660 |
|
|
|
Total liabilities and stockholders' equity |
|
$ |
1,878,096 |
|
|
$ |
1,789,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6: Reconciliation of Notable Items |
|||||||||||||
|
|
|
|
|||||||||||
|
$ in thousands, except per share data (unaudited) |
|
1Q 2025 |
|
|
4Q 2024 |
|
|
1Q 2024 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, GAAP-basis |
|
$ |
15,065 |
|
|
$ |
65,139 |
|
|
$ |
72,615 |
|
|
|
Exclude: Notable items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for uncertain tax positions related to prior periods |
|
|
54,939 |
|
|
|
— |
|
|
|
— |
|
|
|
Net income, excluding notable items |
|
$ |
70,004 |
|
|
$ |
65,139 |
|
|
$ |
72,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS, GAAP-basis |
|
$ |
0.40 |
|
|
$ |
1.73 |
|
|
$ |
1.92 |
|
|
|
Notable items as reconciled above |
|
|
1.47 |
|
|
|
— |
|
|
|
— |
|
|
|
Diluted EPS, excluding notable items |
|
$ |
1.87 |
|
|
$ |
1.73 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate, GAAP-basis |
|
|
84.3 |
% |
|
|
23.0 |
% |
|
|
24.9 |
% |
|
|
Notable items as reconciled above |
|
|
(57.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
Effective tax rate, excluding notable items |
|
|
27.2 |
% |
|
|
23.0 |
% |
|
|
24.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin |
|||||||||||||
|
|
|
|
|||||||||||
|
In thousands (unaudited) |
|
1Q 2025 |
|
|
4Q 2024 |
|
|
1Q 2024 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
15,065 |
|
|
$ |
65,139 |
|
|
$ |
72,615 |
|
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(7,169 |
) |
|
|
(6,719 |
) |
|
|
(5,973 |
) |
|
|
Interest expense |
|
|
213 |
|
|
|
318 |
|
|
|
316 |
|
|
|
Provision for income taxes |
|
|
81,089 |
|
|
|
19,456 |
|
|
|
24,102 |
|
|
|
Depreciation and amortization |
|
|
18,236 |
|
|
|
18,540 |
|
|
|
18,200 |
|
|
|
EBITDA |
|
$ |
107,434 |
|
|
$ |
96,734 |
|
|
$ |
109,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income margin1 |
|
|
7.2 |
% |
|
|
32.2 |
% |
|
|
34.5 |
% |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(3.4 |
) |
|
|
(3.3 |
) |
|
|
(2.8 |
) |
|
|
Interest expense |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
Provision for income taxes |
|
|
38.9 |
|
|
|
9.5 |
|
|
|
11.4 |
|
|
|
Depreciation and amortization |
|
|
8.7 |
|
|
|
9.2 |
|
|
|
8.6 |
|
|
|
EBITDA margin2 |
|
|
51.5 |
% |
|
|
47.8 |
% |
|
|
51.9 |
% |
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
|||||||||||||
|
|
|
|
|||||||||||
|
In thousands (unaudited) |
|
1Q 2025 |
|
|
4Q 2024 |
|
|
1Q 2024 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)/provided by operating activities |
|
$ |
29,629 |
|
|
$ |
176,248 |
|
|
$ |
(4,949 |
) |
|
|
Exclude: Net change in trading investments |
|
|
— |
|
|
|
— |
|
|
|
(255 |
) |
|
|
Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers |
|
|
34,399 |
|
|
|
(51,833 |
) |
|
|
51,288 |
|
|
|
Less: Purchases of furniture, equipment and leasehold improvements |
|
|
(1,930 |
) |
|
|
(215 |
) |
|
|
(1,197 |
) |
|
|
Less: Capitalization of software development costs |
|
|
(15,031 |
) |
|
|
(10,833 |
) |
|
|
(13,963 |
) |
|
|
Free cash flow |
|
$ |
47,067 |
|
|
$ |
113,367 |
|
|
$ |
30,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Net income margin is derived by dividing net income by total revenues for the applicable period. |
|||||||||||||
|
2 EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period. |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250506701330/en/
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Source:
