Overview

* Tradeweb Q2 revenue grows 26.7% yr/yr, beating analyst expectations

* Adjusted EPS for Q2 beats consensus, reaching $0.87, per LSEG data

* Co highlights strategic initiatives in electronic trading and AI

Outlook

* Company revises full-year 2025 adjusted expenses to $1,000 - 1,050 mln

* Tradeweb sets depreciation and amortization guidance at $176 mln for 2025

* Company assumes non-GAAP tax rate of 24.5% - 25.5% for 2025

* Tradeweb sees cash capital expenditures of ~$99 - 109 mln for 2025

* Company sees LSEG market data contract revenue of about $90 mln

Result Drivers

* RATES GROWTH - Revenue from rates increased 26.2% driven by record ADV in U.S. government bonds and swaps/swaptions, supported by institutional and wholesale client channels

* CREDIT ADOPTION - Credit revenue rose 11.7% due to record ADV in U.S. high yield credit and increased client adoption of Tradeweb protocols

* MONEY MARKETS EXPANSION - Money markets revenue surged 130.7% following the acquisition of ICD and increased repo volumes in the U.S. and Europe

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $512.97 $512.50

Revenue mln mln (12

Analysts

)

Q2 Beat $0.87 $0.86

Adjusted (14

EPS Analysts

)

Q2 EPS $0.71

Q2 $206.15

Adjusted mln

Net

Income

Q2 $277.90

Adjusted mln

EBITDA

Q2 54.2%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "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 ( TW ) is $153.00, about 9.6% above its July 29 closing price of $138.31

* The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 42 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)