Tradeweb Q4 revenue beats on strong performance in European government bonds

Overview

• Electronic marketplaces operator's Q4 revenue rose 12.5%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company authorized $500 mln share repurchase program and raised dividend by 16.7%

Outlook

• Tradeweb expects 2026 adjusted expenses between $1,100 mln and $1,160 mln

• Company anticipates 2026 acquisition-related depreciation and amortization expense of $160 mln

• Tradeweb projects 2026 cash capital expenditures of ~$107 - 117 mln

Result Drivers

• INTERNATIONAL REVENUE GROWTH - Tradeweb's international revenues increased 16.8%, driven by strong performance in European government bonds and swaps/swaptions

• ADV RECORDS - Record quarterly ADV in European government bonds, swaps/swaptions ≥ 1-year, U.S. ETFs, and global repurchase agreements contributed to revenue growth

• DIGITAL FINANCE INVESTMENTS - Tradeweb's investments in digital finance, including on-chain auctions and collaborations, supported its strategic growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy"

• Wall Street's median 12-month price target for Tradeweb Markets Inc is $124.00, about 23% above its February 4 closing price of $100.82

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nBw7xjmLga

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