Tradeweb Markets Inc Cls A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did TW Beat Earnings? Q1 2025 Results
Tradeweb Markets posted a clean beat to open 2025, with first-quarter revenue climbing 24.7% year-over-year to $509.68 million, edging past the $507.64 million consensus estimate, while adjusted diluted EPS of $0.86 topped the $0.86 analyst forecast by 0.35%. The primary engine behind the results was a surge in trading activity across the platform, as average daily volume jumped 33.7% to $2.55 trillion, with the Rates segment alone contributing $265.43 million in revenue on the strength of record volumes in U.S. government bonds, mortgages, and swaps. Adjusted EBITDA margin expanded to 54.6% from 53.7% a year earlier, and trailing twelve-month free cash flow reached $833.62 million, up 28.1%. Management kept its full-year 2025 guidance intact, targeting adjusted expenses of $970 million to $1.03 billion and approximately $90 million in LSEG market data contract revenue, signaling confidence that the broad-based momentum driving the quarter's record performance can be sustained through the remainder of the year.
- Record ADV in U.S. government bonds, mortgages, and swaps/swaptions ≥ 1-year
- Market volatility from global macro uncertainty driving risk trading activity
- Continued client adoption across Tradeweb products and protocols including RFQ and Portfolio Trading
- ICD acquisition contributing to 160.3% Money Markets revenue growth
- Record European government bond and European credit ADV
- $8.4 million increase from periodic delivery of historical data sets under LSEG market data agreement
- Record ADV in fully electronic U.S. high grade credit, high yield credit, and credit swaps
- Record activity in global repurchase agreements driven by Fed balance sheet unwinding
“Tradeweb delivered strong financial results for the first quarter of 2025, underscoring how technology is reshaping single market and multi-asset class trading. We reported record revenue of $509.7 million—up nearly 25% YoY—alongside record trading volume of $164.5 trillion and average daily volume of $2.5 trillion, up 33.7% YoY.”
Tradeweb Markets CEO, on the earnings call
Forward Guidance & Outlook
Tradeweb maintained its full-year 2025 guidance unchanged: adjusted expenses of $970-$1,030 million; acquisition and Refinitiv Transaction-related depreciation and amortization of $176 million; assumed non-GAAP tax rate of approximately 24.5%-25.5%; cash capital expenditures and capitalized software development of approximately $99-$109 million; and LSEG market data contract revenue of approximately $90 million. Expense guidance assumes an average 2025 Sterling/USD foreign exchange rate of 1.28.
TW YoY Financials
TW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.