Tradeweb Q3 2026 Revenue Rises 14.9% as Trading Volumes Grow

Tradeweb Markets Inc. (Nasdaq: TW) reported a 14.9% year-over-year increase in third-quarter 2026 revenue, supported by higher trading activity across its major asset classes and particularly strong growth in rates and credit volumes. Adjusted earnings and margins also increased, even as technology, professional-services and other operating costs pushed adjusted expenses higher.

Revenue for the quarter ended September 30 rose to $584.5 million from $508.6 million a year earlier. On a constant-currency basis, revenue increased 15.4%. International revenue advanced 22.4% to $258.5 million, or 23.8% in constant currency.

Total trading revenue increased 15.3% to $540.0 million, led by an 18.0% rise in variable trading revenue to $440.3 million. Fixed trading revenue grew 4.5% to $99.7 million. LSEG market-data fees rose 29.2% to $26.5 million, while other information-services revenue was little changed at $10.3 million. Other revenue declined 17.3% to $7.6 million.

Trading volumes outpace revenue growth

Average daily volume across Tradeweb’s platform reached $3.15 trillion, up 22.4% from the prior-year quarter. Excluding swaps with maturities of less than one year, ADV increased 16.8%.

Rates ADV climbed 33.8% to $1.95 trillion. Rates derivatives volume rose 46.0%, including a 42.4% increase in swaps and swaptions with maturities of at least one year and a 50.0% increase in shorter-tenor swaps and swaptions. Cash rates ADV grew 12.9%, with U.S. government-bond activity up 28.0% and European government-bond volume up 24.5%. Mortgage ADV declined 3.6%.

Credit ADV increased 45.0% to $60.9 billion, driven by a 61.3% rise in credit derivatives and an 18.9% increase in cash credit. Fully electronic U.S. high-grade ADV grew 28.1%, while electronically processed high-grade activity rose 23.4%. Fully electronic U.S. high-yield ADV increased 6.2%, but electronically processed high-yield volume fell 12.5%.

Equities ADV rose 14.4% to $29.8 billion. Cash equities volume increased 26.0%, including a 29.6% gain in U.S. exchange-traded funds, while equities derivatives ADV increased 4.8%. Money-markets ADV grew 6.0% to $1.11 trillion.

Growth in volume exceeded revenue growth partly as the overall average variable fee per million dollars traded declined 3.0% to $2.09. Rates fees per million fell 8.4% and credit fees dropped 23.0%, reflecting changes in product and protocol mix, including greater compression activity and a shift toward lower-fee portfolio trading. Equities fees per million increased 15.1% due to a mix shift toward Asian ETFs and higher-fee equity futures. Excluding shorter-tenor rates derivatives and rates futures, total fees per million increased 1.1%.

Tradeweb reported continued expansion in several strategic markets. Global interest-rate swaps ADV rose 46% year over year, while the company’s overall share of that market reached 25.5% from 21.2% in the third quarter of 2025. U.S. Treasury ADV increased 28%, with share rising to 23.6% from 22.0%. Institutional global ETF ADV grew 31% to $8.4 billion.

Adjusted earnings and margins increase

Adjusted EBITDA rose 16.2% to $318.9 million, and the adjusted EBITDA margin expanded 59 basis points to 54.5%. Adjusted EBIT increased 16.0% to $296.4 million, with the corresponding margin rising 47 basis points to 50.7%.

Adjusted net income advanced 15.6% to $238.8 million. Adjusted diluted earnings per share increased 17.2% to $1.02, helped in part by a 1.7% reduction in the adjusted diluted share count. On a GAAP basis, net income was $224.9 million, compared with $210.5 million a year earlier. Diluted EPS was $0.94, up from $0.86.

Adjusted expenses increased 13.9% to $288.1 million, or 15.1% in constant currency. Employee compensation and benefits rose 8.8% to $178.5 million. Technology and communications costs increased 31.8% to $44.6 million, while professional fees grew 38.8% to $15.6 million. Total adjusted non-compensation expenses rose 23.3%.

Full-year expense guidance revised

Tradeweb revised its full-year 2026 adjusted-expense guidance to between $1.155 billion and $1.175 billion, with spending expected to trend toward the middle of the range. Its previous range was $1.10 billion to $1.16 billion, with expenses expected toward the top half.

The company maintained its expectations for approximately $160 million of acquisition- and Refinitiv-related depreciation and amortization, a non-GAAP tax rate of about 23.5% to 24.5%, cash capital expenditures and capitalized software development of $107 million to $117 million, and roughly $105 million of revenue from the LSEG market-data contract. The guidance excludes potential strategic acquisitions that have been announced but not completed.

Tradeweb ended September with $2.1 billion of cash and cash equivalents and an undrawn $500 million credit facility. The company expects to fund primarily from cash on hand the $1.89 billion cash component of its proposed Trumid acquisition, which is targeted to close in the first half of 2027. Completion remains subject to regulatory approvals, customary purchase-price adjustments and other closing conditions.

Trailing-12-month free cash flow increased 9.7% to $1.08 billion. Tradeweb repurchased $209.8 million of shares during the quarter and had $124.5 million remaining under its authorization at September 30. The board also declared a quarterly dividend of $0.14 per Class A and Class B share, payable in December, an increase of 16.7% per share from a year earlier.

Certain market-share comparisons carry a qualification. A FINRA change to TRACE reporting reduced reported U.S. high-grade industry volumes and increased Tradeweb’s calculated electronic share growth for the third quarter. Prior periods were not restated and may therefore not be directly comparable. The company also noted that its outlook and acquisition plans remain subject to market, regulatory, integration and other risks described in its filings.