Tradeweb Q3 2026 Earnings: Revenue Rises 14.9% as ADV Reaches $3.15 Trillion

Tradeweb Markets (Nasdaq: TW) reported Q3 2026 revenue of $584.5 million, up 14.9% from $508.6 million a year earlier, while diluted EPS increased 9.3% to $0.94 from $0.86. Average daily volume rose 22.4% to $3.153 trillion, supporting growth across Rates, Credit, and Equities, although the GAAP net income margin declined 292 basis points to 38.5%.

Core Earnings Data

Transaction fees and commissions increased to $491.8 million from $421.3 million and remained the primary revenue driver. Operating income grew faster than revenue because total operating expenses rose by a comparatively slower 11.0%, but GAAP net income growth was limited by a decline in non-operating income.

Adjusted results showed a clearer improvement in the underlying business. Adjusted net income rose 15.6%, adjusted diluted EPS increased 17.2%, and the adjusted EBITDA margin expanded despite continued spending on employees, technology, and data infrastructure.

Adjusted EBITDA, adjusted net income, adjusted diluted EPS, and the related margins are non-GAAP measures.

Business and Segment Performance

Rates generated the largest absolute revenue increase, while Equities recorded the fastest percentage growth. International revenue increased 22.4% to $258.5 million, or 23.8% on a constant-currency basis, outpacing companywide growth.

Rates benefited from higher institutional and wholesale activity in U.S. government bonds, while swaps and swaptions activity increased amid changes in central-bank policy, geopolitical tensions, and inflation uncertainty. European government bond activity also rose across institutional clients and multiple trading protocols.

Credit growth reflected continued adoption of Portfolio Trading, Request-for-Quote, AllTrade, and automated execution through AiEX. Credit derivatives activity increased as hedge funds and systematic accounts generated more swap execution facility and multilateral trading facility volume.

Equities revenue was supported by U.S. and international ETF activity, an expanded client base, and increased AiEX adoption. In Money Markets, higher global repo and ICD Portal activity was partly offset by lower demand for commercial paper and discount notes.

Market Data growth primarily reflected higher fees and more frequent historical data deliveries under the amended LSEG license agreement. Other revenue declined because of lower Canton Network validation revenue and reduced software development and implementation work for certain clients.

Higher Volumes Outran Revenue as Product Mix Reduced Unit Fees

Companywide ADV growth of 22.4% exceeded revenue growth of 14.9%, showing that higher trading activity did not translate proportionally into revenue. The difference was particularly visible in Rates and Credit.

Rates ADV rose 33.8%, but revenue increased 18.2%. Average variable fees per million for longer-duration rates derivatives declined 10.5%, primarily because of higher compression activity, which carries lower fees, and lower duration.

Credit ADV increased 45.0%, compared with 9.6% revenue growth. Cash credit average variable fees per million fell 10.6% as activity shifted away from higher-fee municipal bonds and retail U.S. credit toward Portfolio Trading, which has a lower fee per million. Continued volume growth therefore needs to be evaluated alongside product mix and unit fees.

Profitability, Cash Flow, and the Balance Sheet

Operating expenses increased 11.0% to $331.1 million, while adjusted expenses rose 13.9% to $288.1 million. The main drivers were higher incentive compensation, additional headcount, investment in AI and data infrastructure, volume-related data and clearance fees, and higher professional fees associated with technology consulting and strategic activity.

Other income declined 52.5% to $18.7 million, explaining why GAAP net income grew more slowly than operating income. The quarter included a $27.5 million gain related to the conversion of a Securitize note into publicly traded shares and a $14.4 million unrealized gain on another minority investment, partly offset by a $24.0 million unrealized loss on Canton Coin holdings.

Tradeweb ended September with $2.1 billion in cash and cash equivalents and an undrawn $500 million credit facility. Trailing-12-month free cash flow, a non-GAAP measure, was $1.1 billion, up 9.7%. Q3 cash spending included $29.2 million for capital expenditures and capitalized software development and $20.0 million for investments.

The company repurchased 2.02 million shares for $209.8 million at an average price of $103.83, leaving $124.5 million under its authorization. It also declared a quarterly dividend of $0.14 per share, a 16.7% increase from the prior-year period.

In October, Tradeweb agreed to acquire Trumid for approximately $1.97 billion, including $1.89 billion in cash and $82 million in equity. The cash component is expected to be funded primarily with cash on hand, and the transaction is targeted to close in the first half of 2027, subject to regulatory approvals and other closing conditions.

Full-Year 2026 Guidance

Tradeweb revised its adjusted expense guidance to reflect year-to-date revenue growth and its expectations for the remainder of 2026. The company said expenses were trending toward the midpoint of the updated range, while its other listed cost, tax, and investment assumptions were unchanged from the prior quarter.

The guidance assumes an average 2026 sterling-to-U.S. dollar exchange rate of 1.32 and excludes the impact of announced strategic acquisitions that have not yet closed.

Management View

CEO Billy Hult attributed the quarter’s activity to the breadth of Tradeweb’s multi-asset platform during a period of rising Treasury yields, changing central-bank policy, and geopolitical uncertainty. Management also highlighted enhancements to the Ai-Price bond-pricing engine, expansion into Saudi debt instruments, and transactions involving tokenized U.S. Treasuries and on-chain repo.

For Trumid, management’s strategic rationale centers on combining Trumid’s credit trading protocols and hedge-fund relationships with Tradeweb’s global institutional network. The company expects the combination to broaden its credit-market capabilities and support additional trading solutions across the bond lifecycle.

Recent Insider Transactions

The six-month insider summary showed 17,637 shares acquired in seven transactions and 32,276 shares sold in four transactions, resulting in net sales of 14,639 shares. Total insider holdings were reported at approximately 592,830 shares, with a net acquisition ratio of -2.40%.

Among the 10 most recent disclosures, four sales had a combined reported value of approximately $5.10 million. The other six entries were direct, zero-price stock awards issued to directors on May 19, 2026.

Risks Investors Need to Watch

• Lower fees per unit of volume: Rates and Credit volumes grew considerably faster than their revenue because of lower-fee compression activity and a shift toward Portfolio Trading. Further mix changes could limit revenue conversion even when ADV rises.
• Continued expense growth: Compensation, technology infrastructure, data costs, and strategic activity are increasing expenses. Tradeweb’s revised adjusted expense guidance makes cost management an important factor for future margin performance.
• Trumid funding and closing requirements: The $1.89 billion cash component is close to Tradeweb’s $2.1 billion quarter-end cash balance. The transaction also remains subject to regulatory approvals and is excluded from current guidance until it closes.
• Volatility in investment-related income: Changes in the value of Canton Coin and other minority investments can create material swings in GAAP other income. Of Tradeweb’s $207.5 million in Canton Coin holdings, $163.7 million was subject to transfer restrictions at quarter-end.

Summary

Tradeweb’s Q3 2026 results reflected higher activity across its electronic trading platform, led by Rates, Credit, and Equities. Revenue and adjusted earnings increased at double-digit rates, and the adjusted EBITDA margin expanded, but lower unit fees caused revenue to trail volume growth and investment-related losses weighed on the GAAP net margin. The main items to monitor are product mix, updated expense levels, and the use of liquidity for the pending Trumid acquisition.