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Mar 31, 2025
MarketAxess Q1 2025 Earnings Report
Reported a revenue dip and sharp decline in GAAP net income due to a one-time tax reserve, while adjusted results remained solid.
Key Takeaways
MarketAxess posted total revenue of $208.6 million and adjusted EPS of $1.87 for Q1 2025. GAAP net income plummeted due to a $54.9 million tax reserve, but operational performance remained resilient with record trading volumes across key segments.
Revenue totaled $208.6 million, down 1% YoY, affected slightly by FX fluctuations.
GAAP net income dropped to $15.1 million due to a $54.9 million reserve for uncertain tax positions.
Open Trading ADV hit a record $4.8 billion, with portfolio trading ADV up 78% YoY.
Non-GAAP EPS was $1.87, significantly higher than the GAAP EPS of $0.40.
Revenue by Segment
Forward Guidance
Guidance for full-year 2025 includes higher GAAP effective tax rate due to one-time item, with confidence in platform-driven market share gains.
Positive Outlook
- Record Open Trading and Portfolio Trading volumes in Q1
- Emerging markets and Eurobonds block trading activity strong
- Expanded capabilities in block and portfolio trading expected to support U.S. credit gains
- Information services revenue continues strong contract momentum
- Improving client adoption of advanced trading protocols
Challenges Ahead
- One-time $54.9M reserve significantly impacted GAAP net income
- Decline in U.S. credit commissions and overall credit FPM
- Higher GAAP effective tax rate for full-year 2025 (41–42%)
- Commission revenue down YoY
Historical Earnings Impact
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Avg. Return Before/After Earnings
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