MarketAxess Reports First Quarter 2026 Financial Results

Published: 2026-05-07 06:31:05 ET MKTX

12% Increase in Total Revenue to Record $233 Million Driven by 20% Growth in Revenue Outside U.S. Credit Products Strong Results Reflect Heightened Demand for Our Differentiated Liquidity by Our Global Client Network 35% Increase in Block Trading ADV With Record U.S. High-Grade, U.S. High-Yield, EM and Eurobonds Block ADV 51% Increase in Portfolio Trading ADV to Record $1.9 Billion with Record U.S. Credit and EM ADV EPS of $2.20; $2.25 Excluding Notable Items1

Published on 05/07/2026 at 06:31 am EDT

MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the first quarter ended March 31, 2026.

1Q26 select financial and operational highlights*

*All comparisons versus 1Q25

Chris Concannon, CEO of MarketAxess, commented:

“We delivered record levels of trading volume, commission revenue and services revenue, driven by increased volatility and heightened demand for our differentiated liquidity from our global client network. Our strong results were broad-based and included 20% growth in revenue outside of U.S. credit, including record levels of commission revenue in emerging markets and eurobonds. Our new initiatives are also continuing to gain traction across our three strategic channels with record levels of ADV across block trading, portfolio trading and dealer-initiated activity.

Our MarketAxess advantage continued to strengthen in the first quarter by expanding our global network, deepening our differentiated liquidity and widening the competitive moat of our proprietary data and analytics. Our accelerating use of AI will help us deliver new trading and unique data solutions to our clients."

Table 1: 1Q26 select financial results

Quarter

% Change

$ in millions, except per share data (unaudited)

1Q 2026

4Q 2025

1Q 2025

QoQ

YoY

Selected GAAP-basis financial results

Revenues

233

209

Expenses

132

133

120

)

Operating margin

43.2

36.3

42.4

+690

bps

+80

bps

Net Income

(15

)

418

Diluted EPS

2.20

2.51

0.40

(12

)

450

Net Income Margin

33.5

44.1

7.2

Selected GAAP-basis financial results ex-notable items (non-GAAP)1

Revenues

233

209

Expenses

130

132

120

)

Operating margin

44.2

36.8

42.4

+740

bps

+180

bps

Net Income

Diluted EPS

2.25

1.68

1.87

Other Non-GAAP financial measures

EBITDA3

122

107

EBITDA Margin3

52.1

45.3

51.5

+680

bps

+60

bps

NM - not meaningful

1Q26 overview of results

Table 1A: Notable items1

Quarter

1Q 2026

4Q 2025

1Q 2025

$ in millions, except per share data (unaudited)

Repositioning charges

1.5

1.1

—

Other notable items

0.7

—

Notable items (pre-tax)

2.2

1.1

—

Income tax impact from notable items

(0.5

)

(0.3

)

—

Reserve for uncertain tax positions related to prior periods

—

(31.3

)

54.9

Total notable items

1.7

(30.5

)

54.9

EPS impact

0.05

(0.83

)

1.47

Notable items1

Revenue

Commission revenue

Table 1B: 1Q26 variable transaction fees per million (FPM)

Quarter

% Change

1Q 2026

4Q 2025

1Q 2025

QoQ

YoY

AVG. VARIABLE TRANS. FEE PER MILLION (FPM)

Total Credit

132

138

139

)

Total Rates

4.68

4.79

4.20

)

Credit

Rates

Other

Services revenue

Information services

— Information services revenue of $14.4 million increased $1.5 million, or 12%, compared to the prior year. The increase was principally driven by net new contract revenue and an increase of $0.5 million from the impact of foreign currency fluctuations.

Post-trade services

— Post-trade services revenue of $11.6 million increased $0.5 million, or 5%, compared to the prior year principally due to an increase of $1.0 million from the impact of foreign currency fluctuations.

Technology services

— Total technology services revenue of $3.9 million increased $0.6 million, or 19%, compared to the prior year. The increase was driven by connectivity fees from RFQ-hub, majority control of which was acquired in 2Q25.

Expenses

Non-operating

Capital

Other

See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 6 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

Services revenue is defined as combined information, post-trade and technology services revenue.

EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures and Table 7 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

Non-GAAP financial measures and other items

To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) selected GAAP-basis financial results, each excluding notable items, to their most directly comparable GAAP measure; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure.

Webcast and conference call information

Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer, will host a conference call to discuss the Company’s financial results and outlook on Thursday, May 7, 2026 at 10:00 a.m. ET. To access the conference call, please dial +1-800-715-9871 (U.S.) or +1-646-307-1963 (International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement.

General Notes Regarding the Data Presented

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; our dependence on third-party suppliers for key products and services; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effects of climate change or other sustainability risks that could affect our operations or reputation; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income and other markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess.

Table 2: Consolidated Statements of Operations

Three Months Ended

March 31,

In thousands, except per share data (unaudited)

2026

2025

% Change

Revenues

Commissions

203,471

181,343

Information services

14,445

12,904

Post-trade services

11,607

11,088

Technology services

3,857

3,241

Total revenues

233,380

208,576

Expenses

Employee compensation and benefits

70,195

61,916

Depreciation and amortization

19,210

18,236

Technology and communications

20,360

18,048

Professional and consulting fees

6,376

6,410

)

Occupancy

3,819

3,622

Marketing and advertising

2,334

2,061

Clearing costs

4,426

4,185

General and administrative

5,739

5,716

—

Total expenses

132,459

120,194

Operating income

100,921

88,382

Other income (expense)

Interest income

4,308

7,169

(40

)

Interest expense

(2,888

)

(213

)

Equity in earnings of unconsolidated affiliate

—

289

(100

)

Other, net

1,544

527

193

Total other income (expense)

2,964

7,772

(62

)

Income before income taxes

103,885

96,154

Provision for income taxes

25,778

81,089

(68

)

Net income

78,107

15,065

418

Less: income attributable to noncontrolling interest

(225

)

—

Net income available for common stockholders

77,882

15,065

417

Per Share Data:

Net income per common share

Basic

2.21

0.40

Diluted

2.20

0.40

Cash dividends declared per common share

0.78

0.76

Weighted-average common shares:

Basic

35,301

37,388

Diluted

35,386

37,456

NM - not meaningful

Table 3: Commission Revenue Detail

In thousands, except fee per million data

Three Months Ended March 31,

(unaudited)

2026

2025

% Change

Variable transaction fees

Credit

150,347

135,840

Rates

8,922

6,919

Other

10,697

5,232

104

Total variable transaction fees

169,966

147,991

Fixed distribution fees

Credit

33,403

33,265

—

Rates

102

Total fixed distribution fees

33,505

33,352

—

Total commission revenue

203,471

181,343

Average variable transaction fee per million

Credit

132

139

)

Rates

4.68

4.20

Table 4: Trading Volume Detail*

Three Months Ended March 31,

In millions (unaudited)

2026

2025

% Change

Volume

ADV

Volume

ADV

Volume

ADV

Credit

High-grade

511,492

8,385

461,308

7,562

High-yield

100,409

1,646

89,997

1,475

Emerging markets

311,925

5,114

240,285

3,939

Eurobonds

178,162

2,828

147,917

2,348

Other credit

40,186

659

36,482

598

Total credit trading

1,142,174

18,632

975,989

15,922

Rates

U.S. government bonds

1,800,150

29,511

1,582,081

25,936

Agency and other government bonds

104,376

1,659

65,825

1,047

Total rates trading

1,904,526

31,170

1,647,906

26,983

Total trading

3,046,700

49,802

2,623,895

42,905

Number of U.S. Trading Days1

Number of U.K. Trading Days2

1 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.

2 The number of U.K. trading days is based on the U.K. Bank holiday schedule.

* Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted.

Table 5: Consolidated Condensed Balance Sheet Data

As of

In thousands (unaudited)

March 31, 2026

December 31, 2025

Assets

Cash and cash equivalents

377,302

519,734

Cash segregated under federal regulations

49,053

48,722

Investments, at fair value

170,808

170,677

Accounts receivable, net

128,171

100,989

Receivables from broker-dealers, clearing organizations and customers, including $75,072 pledged as collateral as of March 31, 2026

977,049

489,211

Goodwill

283,667

Intangible assets, net of accumulated amortization

105,281

110,629

Furniture, equipment, leasehold improvements and capitalized software, net

111,642

112,431

Operating lease right-of-use assets

50,986

51,854

Prepaid expenses and other assets

47,577

46,972

Total assets

2,301,536

1,934,886

Liabilities and stockholders' equity

Liabilities

Accrued employee compensation

34,738

73,879

Payables to broker-dealers, clearing organizations and customers

696,302

325,959

Borrowings

228,250

220,000

Income and other tax liabilities

35,503

49,267

Accounts payable, accrued expenses and other liabilities

39,115

42,584

Operating lease liabilities

63,711

64,938

Total liabilities

1,097,619

776,627

Redeemable noncontrolling interest

13,520

12,592

Stockholders' equity

Common stock

124

123

Additional paid-in capital

365,428

305,923

Treasury stock

(752,333

)

(694,764

)

Retained earnings

1,588,852

1,538,746

Accumulated other comprehensive income/(loss)

(11,674

)

(4,361

)

Total stockholders' equity

1,190,397

1,145,667

Total liabilities, redeemable noncontrolling interest and stockholders' equity

2,301,536

1,934,886

Table 6: Reconciliation of Notable Items

Quarter

$ in thousands, except per share data (unaudited)

1Q 2026

4Q 2025

1Q 2025

Total Expenses, GAAP-basis

132,459

133,396

120,194

Exclude: Notable items

Repositioning charges1

(1,484

)

(1,084

)

—

Other notable items2

(656

)

—

Total Expenses, excluding notable items

130,319

132,312

120,194

Net income, GAAP-basis

78,107

92,394

15,065

Exclude: Notable items

Repositioning charges1

1,484

1,084

—

Other notable items2

656

—

Income tax impact from notable items

(531

)

(254

)

—

Reserve for uncertain tax positions related to prior periods

—

(31,308

)

54,939

Net income, excluding notable items

79,716

61,916

70,004

Operating margin, GAAP-basis

43.2

36.3

42.4

Notable items as reconciled above

1.0

0.5

—

Operating margin, excluding notable items

44.2

36.8

42.4

Diluted EPS, GAAP-basis

2.20

2.51

0.40

Notable items as reconciled above

0.05

(0.83

)

1.47

Diluted EPS, excluding notable items

2.25

1.68

1.87

Effective tax rate, GAAP-basis

24.8

-15.8

84.3

Notable items as reconciled above

—

39.2

(57.1

)

Effective tax rate, excluding notable items

24.8

23.4

27.2

Repositioning charges consist of severance included in employee compensation and benefits

Consists of legal expenses included in professional and consulting

Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin

Quarter

In thousands (unaudited)

1Q 2026

4Q 2025

1Q 2025

Net income

78,107

92,394

15,065

Add back:

Interest income

(4,308

)

(5,448

)

(7,169

)

Interest expense

2,888

964

213

Provision for income taxes

25,778

(12,608

)

81,089

Depreciation and amortization

19,210

19,606

18,236

EBITDA

121,675

94,908

107,434

Net income margin1

33.5

44.1

7.2

Add back:

Interest income

(1.8

)

(2.6

)

(3.4

)

Interest expense

1.2

0.5

0.1

Provision for income taxes

11.0

(6.1

)

38.9

Depreciation and amortization

8.2

9.4

8.7

EBITDA margin2

52.1

45.3

51.5

Net income margin is derived by dividing net income by total revenues for the applicable period.

EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period.

Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

Quarter

In thousands (unaudited)

1Q 2026

4Q 2025

1Q 2025

Net cash (used in)/provided by operating activities

(75,329

)

158,632

29,629

Exclude: Net change in trading investments

—

(404

)

—

Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers

108,529

(67,825

)

34,399

Less: Purchases of furniture, equipment and leasehold improvements

(259

)

(3,572

)

(1,930

)

Less: Capitalization of software development costs

(17,089

)

(11,775

)

(15,031

)

Free cash flow

15,852

75,056

47,067

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