Tradeweb Markets Q4 2025 Tradeweb Markets Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Tradeweb Markets Inc Earnings Call
Speaker #1: To begin, I'll turn the call over to Head of Treasury FP&A and Investor Relations Ashley Serrao. Please go
Ashley Serrao: Thank you and good morning. Joining me today for the call are our CEO Billy Hult, who will review our business results and key growth initiatives, and our CFO Sara Furber, who will review our financial results. We intend to use the website as a means of disclosing material, non-public information, and complying with our disclosure obligations under Regulation FD.
Speaker #2: Thank you, and good morning. Joining me today for
Speaker #2: The call are our CEO ahead, Billy Hult, who will review our business results and key growth initiatives, and our CFO, Sara Furber, who will review our financial results.
Speaker #2: We intend to use the website as a means of disclosing material, non-public information and complying with our disclosure obligations under Regulation FD. I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations.
Operator: I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations, and as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements related to, among other things, our guidance are forward-looking statements. Actual results may differ materially from these forward-looking statements. Information concerning factors that could cause actual results to differ from forward-looking statements is contained in our earnings release, earnings presentation, and periodic reports filed with the SEC. In addition, on today's call, we will reference certain non-GAAP measures as well as certain market and industry data. Information regarding these non-GAAP measures, including reconciliations to GAAP measures, is in our earnings release and earnings presentation. Information regarding market and industry data, including sources, is in our earnings presentation. Now, let me turn the call over to Billy. Thanks, Ashley.
Ashley Serrao: I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations, and as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements related to, among other things, our guidance are forward-looking statements. Actual results may differ materially from these forward-looking statements. Information concerning factors that could cause actual results to differ from forward-looking statements is contained in our earnings release, earnings presentation, and periodic reports filed with the SEC. In addition, on today's call, we will reference certain non-GAAP measures as well as certain market and industry data. Information regarding these non-GAAP measures, including reconciliations to GAAP measures, is in our earnings release and earnings presentation. Information regarding market and industry data, including sources, is in our earnings presentation. Now, let me turn the call over to Billy.
Speaker #2: And as such, constitute forward-looking statements within the meaning of the private securities litigation reform act of 1995. Statements related to, among other things, our guidance, our forward-looking statements, actual results may differ materially from these information concerning factors that could cause forward-looking statements, actual results to differ from forward-looking statements, is contained in our earnings release, earnings presentation, and periodic reports In addition, on today's call, we will reference certain non-GAAP measures, as well as certain market and industry data.
Speaker #2: Information regarding these non-GAAP measures including reconciliations to GAAP measures, is in our earnings release and earnings filed with the SEC. presentation. Information regarding market and industry data, including sources, is in our earnings presentation.
Speaker #2: Now, let me turn the call over to Billy.
Billy Hult: Thanks, Ashley.
Speaker #1: Thanks, Ashley. Good morning, everyone, and thank you for joining our fourth-quarter earnings call. I am extremely proud of the TradeWeb team that helped produce the best revenue year and quarter in our history crossing $2 billion in annual revenue for the first time.
Operator: Good morning, everyone, and thank you for joining our Q4 earnings call. I am extremely proud of the Tradeweb team that helped produce the best revenue year and quarter in our history, crossing $2 billion in annual revenue for the first time. Our 2025 performance continues our seventh consecutive year as a public company producing double-digit revenue growth and the 26th consecutive year of record annual revenues. As I look back at 2025, a few thoughts that come to mind are our clients' focus on data-driven tools for larger and more complex trades, the acceleration of automation, and the growing interconnectedness of global markets. As we look ahead, our ethos stays the same: continue to put forth rigor and discipline to help drive more innovation across our expanding markets. Our clients are now operating with an increased level of integration and sophistication across our markets.
Billy Hult: Good morning, everyone, and thank you for joining our Q4 earnings call. I am extremely proud of the Tradeweb team that helped produce the best revenue year and quarter in our history, crossing $2 billion in annual revenue for the first time. Our 2025 performance continues our seventh consecutive year as a public company producing double-digit revenue growth and the 26th consecutive year of record annual revenues. As I look back at 2025, a few thoughts that come to mind are our clients' focus on data-driven tools for larger and more complex trades, the acceleration of automation, and the growing interconnectedness of global markets. As we look ahead, our ethos stays the same: continue to put forth rigor and discipline to help drive more innovation across our expanding markets. Our clients are now operating with an increased level of integration and sophistication across our markets.
Speaker #1: Our 2025 performance: public company producing double-digit revenue growth and the 26th consecutive year of record annual revenues. As I look back at 2025, a few thoughts that come to mind are our clients' focus on data-driven tools for larger and more complex trades, the acceleration of automation, and the growing interconnectedness of global markets.
Speaker #1: As we look same, continue to put forth rigor and ahead our ethos stays the discipline to help drive more innovation across our expanding markets.
Speaker #1: Increased level of integration, and we and our clients are now operating with and saw real traction in the extension of electronic trading into areas that had previously been mostly manual, from uncleared swaps and swaptions to block trading and global credit.
Operator: We saw real traction in the extension of electronic trading into areas that had previously been mostly manual, from uncleared swaps and swaptions to block trading and global credit. Liquidity has become more interconnected across assets, regions, and time zones, essentially breaking down those historical silos that used to dominate our clients' workflows. At the same time, we have made significant strides alongside our key partners in moving digital assets from something built on a whiteboard to real advancement in market infrastructure and how our clients are thinking about trading and settlement. As we sit here at the intersection of TradFi and DeFi, we will continue to partner and invest across the digital asset landscape to deepen our network and drive more workflow efficiency solutions for our clients.
Billy Hult: We saw real traction in the extension of electronic trading into areas that had previously been mostly manual, from uncleared swaps and swaptions to block trading and global credit. Liquidity has become more interconnected across assets, regions, and time zones, essentially breaking down those historical silos that used to dominate our clients' workflows. At the same time, we have made significant strides alongside our key partners in moving digital assets from something built on a whiteboard to real advancement in market infrastructure and how our clients are thinking about trading and settlement. As we sit here at the intersection of TradFi and DeFi, we will continue to partner and invest across the digital asset landscape to deepen our network and drive more workflow efficiency solutions for our clients.
Speaker #1: Liquidity has become more interconnected, across assets, regions, and time zones, essentially breaking down those historical silos that used to dominate our clients' workflows. At the same time, we have made significant strides alongside our key partners in moving digital assets from something built on a whiteboard to real advancement in market infrastructure and how our clients are thinking about trading and settlement.
Speaker #1: DeFi, we will continue to at the intersection of TradFi and As we sit here partner and invest across the digital asset landscape to deepen our network and drive more workflow efficiency solutions for our clients.
Speaker #1: Diving into the fourth quarter on slide four, despite tough comparisons, strong client activity, share gains, and a risk-on environment drove 12.5% year-over-year revenue growth on a reported basis.
Operator: Diving into the fourth quarter on slide four, despite tough comparisons, strong client activity, share gains, and a risk-on environment drove 12.5% year-over-year revenue growth on a reported basis. We continue to balance investing for growth and profitability as fourth-quarter Adjusted EBITDA margins expanded by 39 basis points relative to the fourth quarter of 2023. Turning to slide five, rates produced a record revenue quarter driven by continued organic growth across swaps, global government bonds, and mortgages. Credit growth was led by strength across European Credit, Munis, CDS, and emerging market credit. Money markets revenue growth was led by record quarterly revenues across global repos. ICD balances continued to recover post-tariff volatility, and ICD revenues were up 11% relative to the third quarter 2024. Equities saw growth of almost 10% year-over-year, led by growth in global ETFs and equity derivatives.
Billy Hult: Diving into the fourth quarter on slide four, despite tough comparisons, strong client activity, share gains, and a risk-on environment drove 12.5% year-over-year revenue growth on a reported basis. We continue to balance investing for growth and profitability as fourth-quarter Adjusted EBITDA margins expanded by 39 basis points relative to the fourth quarter of 2023. Turning to slide five, rates produced a record revenue quarter driven by continued organic growth across swaps, global government bonds, and mortgages. Credit growth was led by strength across European Credit, Munis, CDS, and emerging market credit. Money markets revenue growth was led by record quarterly revenues across global repos. ICD balances continued to recover post-tariff volatility, and ICD revenues were up 11% relative to the third quarter 2024. Equities saw growth of almost 10% year-over-year, led by growth in global ETFs and equity derivatives.
Speaker #1: We continue to balance investing for growth and profitability as by 39 basis points, fourth-quarter adjusted EBITDA margins expanded relative to the fourth quarter of 2024.
Speaker #1: Turning to slide five, rates produced a record revenue quarter driven by continued organic growth across swaps, global government bonds, and mortgages. Credit growth was led by strength across European credit, munis, CDS, and emerging market credit.
Speaker #1: Money markets revenue growth was led by record quarterly revenues across global repos. ICD balances continued to recover post a tariff volatility, and ICD revenues were up 11% relative to the third quarter 2025.
Speaker #1: Equities saw growth year-over-year, led by growth in global ETFs and equity derivatives. Other revenues grew over market data revenues were driven by growth in our recently renewed LSEG market data contract and scale.
Operator: Other revenues grew over 90% year-over-year as our emerging digital asset initiatives continue to scale. Finally, market data revenues were driven by growth in our recently renewed LSEG Market Data Contract and proprietary data products. Turning to slide six, our record fourth quarter capped off a record revenue year in 2025. Record volumes across all asset classes translated into 19% annual revenue growth on a reported basis. The scale generated by our strong top-line results drove 64 basis points of adjusted EBITDA margin expansion, 19% adjusted EPS growth, and 32% free cash flow growth. As our growth initiatives continue to scale, we maintained our tradition of constant and focused investment. Broadly, we enhanced our existing product capabilities, added new clients, and forged new partnerships. On the capability front, we achieved many first. We completed the first-ever fully electronic bilateral swaptions and U.S. multi-asset package trade across the swaps market.
Billy Hult: Other revenues grew over 90% year-over-year as our emerging digital asset initiatives continue to scale. Finally, market data revenues were driven by growth in our recently renewed LSEG Market Data Contract and proprietary data products. Turning to slide six, our record fourth quarter capped off a record revenue year in 2025. Record volumes across all asset classes translated into 19% annual revenue growth on a reported basis. The scale generated by our strong top-line results drove 64 basis points of adjusted EBITDA margin expansion, 19% adjusted EPS growth, and 32% free cash flow growth. As our growth initiatives continue to scale, we maintained our tradition of constant and focused investment. Broadly, we enhanced our existing product capabilities, added new clients, and forged new partnerships. On the capability front, we achieved many first. We completed the first-ever fully electronic bilateral swaptions and U.S. multi-asset package trade across the swaps market.
Speaker #1: digital asset initiatives continue to products. Turning to slide six, our record fourth-quarter capped off a record revenue year in proprietary data 2025. Record volumes across all asset classes translated into reported basis.
Speaker #1: The scale generated by our strong Finally, points of adjusted EBITDA margin top-line results drove 64 basis 19% annual revenue growth on a adjusted EPS growth, and 32% free cash flow growth.
Speaker #1: As our growth initiatives continue to scale, we maintained our tradition of constant and focused investment. Broadly, we enhanced our existing product and forged new partnerships.
Speaker #1: On the capability front, we achieved many firsts. We completed the first-ever fully electronic bilateral swaptions and US multi-asset package trade across the swaps market.
Operator: We launched the first electronic platform for Saudi Royal Bonds and Mexican repos, and we launched portfolio trading in the European government bond market. We expanded our offering to ICD clients, allowing them to buy treasury bills directly through the platform. Additionally, we enhanced our RFQ offering across US credit and ETFs and rolled out our dealer algo solutions within US Treasuries. Beyond our core markets, we've been very focused on the future, especially the digital asset space. We have partnered with numerous startups and thought leaders, and we completed the first-ever on-chain US Treasury repo transaction done over a weekend and the first-ever on-chain auction for brokerage CDs. We believe our investments in our core and frontier markets position us well for the future and also helped make 2025 another banner year for Tradeweb.
Billy Hult: We launched the first electronic platform for Saudi Royal Bonds and Mexican repos, and we launched portfolio trading in the European government bond market. We expanded our offering to ICD clients, allowing them to buy treasury bills directly through the platform. Additionally, we enhanced our RFQ offering across US credit and ETFs and rolled out our dealer algo solutions within US Treasuries. Beyond our core markets, we've been very focused on the future, especially the digital asset space. We have partnered with numerous startups and thought leaders, and we completed the first-ever on-chain US Treasury repo transaction done over a weekend and the first-ever on-chain auction for brokerage CDs. We believe our investments in our core and frontier markets position us well for the future and also helped make 2025 another banner year for Tradeweb.
Speaker #1: Electronic platform for Saudi Royal—we launched the first bonds and Mexican repos. And we launched portfolio trading in the European government bond market. We expanded our offering to ICD clients, allowing them to buy Treasury bills directly through the platform.
Speaker #1: Additionally, we enhanced our RFQ offering across U.S. credit and ETFs and rolled out our dealer-algo solutions within U.S. Treasuries. Beyond our core markets, we've been very focused on the asset space.
Speaker #1: We have partnered with numerous startups and thought leaders, and we completed the first-ever on-chain US Treasury repo transaction done over a weekend and the first-ever CDs.
Speaker #1: investments in our core and frontier We believe our markets position us well for the future and also help to make 2025 another banner year for TradeWeb.
Speaker #1: Moving to slide seven, 2025 continued the streak of robust revenue growth that we have worked hard now. Specifically, while the majority of our revenues still come from rates, 42% of our annual revenue growth came from our other businesses in 2025.
Operator: Moving to slide 7, 2025 continued the streak of robust revenue growth that we have worked hard to deliver for multiple years now. Specifically, while the majority of our revenues still come from rates, 42% of our annual revenue growth came from our other businesses in 2025. In fact, since the IPO, almost 50% of our revenue growth has come from non-rate businesses, with 45% of that growth from our rapidly expanding international business, which grew at 20% CAGR over the same period. Our European business continues to anchor our international presence, but our Asia-Pacific product suite continues to scale. In 2025, our Asian client revenues grew over 35%, and European client revenues grew over 25%. Strong momentum across Europe and Asia comes from connecting a global client base to local international markets. Relentless innovation has been critical to our success.
Billy Hult: Moving to slide 7, 2025 continued the streak of robust revenue growth that we have worked hard to deliver for multiple years now. Specifically, while the majority of our revenues still come from rates, 42% of our annual revenue growth came from our other businesses in 2025. In fact, since the IPO, almost 50% of our revenue growth has come from non-rate businesses, with 45% of that growth from our rapidly expanding international business, which grew at 20% CAGR over the same period. Our European business continues to anchor our international presence, but our Asia-Pacific product suite continues to scale. In 2025, our Asian client revenues grew over 35%, and European client revenues grew over 25%. Strong momentum across Europe and Asia comes from connecting a global client base to local international markets. Relentless innovation has been critical to our success.
Speaker #1: In fact, since the IPO, almost 50% of our revenue growth has come from non-rates businesses, with 45% of that growth from our rapidly expanding international business, which grew at 20% CAGR over the same period.
Speaker #1: Our European business continues to anchor our international presence, but our Asia-Pacific product suite continues to scale. 2025, our Asian client revenues In grew over 35%, and European client revenues grew over 25%.
Speaker #1: Strong momentum across Europe and Asia comes from connecting a global client base to local international markets. Relentless innovation has been critical to our success.
Speaker #1: Throughout our history, market, which requires constant investment. In the last five years, we have prioritized being first to technology. To help shape the future of electronic markets, growing these investments at an average of 16% since bear fruit, adjusted EBITDA margins have expanded consistently.
Operator: Throughout our history, we have prioritized being first to market, which requires constant investment. In the last 5 years, we have invested over $600 million in technology to help shape the future of electronic markets, growing these investments at an average of 16% since 2020. As our investments bear fruit, Adjusted EBITDA margins have expanded consistently. Turning to Slide 8, this quarter saw yet another meaningful decline in intraday volatility from the elevated levels seen in prior periods. Specifically, volatility was down 27% year-over-year and 15% quarter-over-quarter. Despite the lowest intraday volatility that we have seen in the last 4 years, our US Treasury revenues increased modestly by 1% year-over-year as continued strength in our institutional channel was offset by weaker retail trends. Our quarterly market share increased sequentially, with December market share reaching the highest levels since February of 2025.
Billy Hult: Throughout our history, we have prioritized being first to market, which requires constant investment. In the last 5 years, we have invested over $600 million in technology to help shape the future of electronic markets, growing these investments at an average of 16% since 2020. As our investments bear fruit, Adjusted EBITDA margins have expanded consistently. Turning to Slide 8, this quarter saw yet another meaningful decline in intraday volatility from the elevated levels seen in prior periods. Specifically, volatility was down 27% year-over-year and 15% quarter-over-quarter. Despite the lowest intraday volatility that we have seen in the last 4 years, our US Treasury revenues increased modestly by 1% year-over-year as continued strength in our institutional channel was offset by weaker retail trends. Our quarterly market share increased sequentially, with December market share reaching the highest levels since February of 2025.
Speaker #1: eight, this quarter saw yet another meaningful Turning to slide elevated levels seen in prior decline in intraday volatility from the periods, specifically volatility was down 27% year-over-year and 15% quarter-over-quarter.
Speaker #1: Despite the lowest intraday volatility that we have seen in the last four years, our US Treasury revenues increased modestly by 1% year-over-year institutional channel was offset by as continued strength in our weaker retail trends.
Speaker #1: Our quarterly market share increased sequentially, with December market share reaching the highest levels since February of forward, we are optimistic on a re-acceleration in US Treasury business as we penetrate additional parts of the voice market coupled with continued strong government debt issuance and normalization in rate volatility.
Speaker #1: Our quarterly market share increased sequentially, with December market share reaching the highest levels since February of forward, we are optimistic on a re-acceleration in US Treasury business as we penetrate additional parts of the voice market coupled with continued strong government debt issuance and normalization in rate 2025.
Operator: As we look forward, we are optimistic on a reacceleration in US Treasury business as we penetrate additional parts of the voice market coupled with continued strong government debt issuance and normalization in rate volatility. Our competitive position remains strong on a relative basis. We exceeded 50% for the seventh consecutive quarter in electronic institutional US Treasuries versus our main electronic competitor. Turning to wholesale US Treasuries, revenues were flat, mainly driven by lower volumes across our wholesale streaming protocol, partially offset by growth across our sessions protocol. Wholesale remains a strategic priority as we focus on onboarding additional liquidity providers and strengthening our liquidity pools in support of our multi-protocol, holistic platform strategy. In equities, ETFs posted strong double-digit revenue growth as we continue to deepen integration with our clients.
Billy Hult: As we look forward, we are optimistic on a reacceleration in US Treasury business as we penetrate additional parts of the voice market coupled with continued strong government debt issuance and normalization in rate volatility. Our competitive position remains strong on a relative basis. We exceeded 50% for the seventh consecutive quarter in electronic institutional US Treasuries versus our main electronic competitor. Turning to wholesale US Treasuries, revenues were flat, mainly driven by lower volumes across our wholesale streaming protocol, partially offset by growth across our sessions protocol. Wholesale remains a strategic priority as we focus on onboarding additional liquidity providers and strengthening our liquidity pools in support of our multi-protocol, holistic platform strategy. In equities, ETFs posted strong double-digit revenue growth as we continue to deepen integration with our clients.
Speaker #1: We exceeded 50% for electronic institutional US Treasuries versus our main electronic competitor. Turning to wholesale US Treasuries, revenues were flat, mainly driven by lower volumes across our wholesale streaming protocol, partially offset by growth across our sessions protocol.
Speaker #1: Wholesale remains a strategic priority as we focus on providers and strengthening our liquidity pools in support of our multi-protocol, holistic platform strategy. In equities, ETFs onboarding additional liquidity posted strong double-digit revenue growth as we continue to deepen integration with our clients.
Speaker #1: During the quarter, we continued to leverage client workflow connectivity by delivering a more automated ETF trading solution in partnership with ION. Our AIX automation solution has been a key differentiator with our ETF clients, with average daily trades AIX is deeply penetrated across European ETFs, we continue to see strong adoption across US year-over-year.
Operator: During the quarter, we continue to leverage client workflow connectivity by delivering a more automated ETF trading solution in partnership with ION. Our AiEX automation solution has been a key differentiator with our ETF clients, with average daily trades increasing over 70% year-over-year. While AiEX is deeply penetrated across European ETFs, we continue to see strong adoption across US ETFs, with AiEX average daily trades up 28% quarter-over-quarter. Our efforts to broaden our equity presence beyond our flagship ETF franchise continue to pay off, with record institutional equity derivative revenues up 18% year-over-year. Looking ahead, the pipeline remains strong as the benefits of our electronic solutions continue to resonate with our clients. We believe we are well-positioned to capitalize on the long-term secular ETF growth story, not just in equities but across our fixed-income business.
Billy Hult: During the quarter, we continue to leverage client workflow connectivity by delivering a more automated ETF trading solution in partnership with ION. Our AiEX automation solution has been a key differentiator with our ETF clients, with average daily trades increasing over 70% year-over-year. While AiEX is deeply penetrated across European ETFs, we continue to see strong adoption across US ETFs, with AiEX average daily trades up 28% quarter-over-quarter. Our efforts to broaden our equity presence beyond our flagship ETF franchise continue to pay off, with record institutional equity derivative revenues up 18% year-over-year. Looking ahead, the pipeline remains strong as the benefits of our electronic solutions continue to resonate with our clients. We believe we are well-positioned to capitalize on the long-term secular ETF growth story, not just in equities but across our fixed-income business.
Speaker #1: 28% quarter-over-quarter. Our efforts to broaden our equity presence beyond our flagship ETF off, with record institutional franchise continue to pay equity derivative revenues up While 18% ETFs, with AIX average year-over-year.
Speaker #1: Looking ahead, the pipeline remains strong as the benefits of our electronic solutions continue to resonate with our clients. We believe we are well-positioned to capitalize on the long-term secular ETF growth story, not just in the fixed-income business.
Speaker #1: Turning to slide nine for a closer look at equities, but across our strong double-digit revenue growth across European credit, municipal bonds, credit derivatives, China bonds, and EM credit—which, more at credit, saw low single-digit revenue that offset weakness in US credit, where revenues fell. Growth for the quarter was driven by year-over-year gains, mainly due to retail corporate credit revenues that were down nearly 30% year-over-year, primarily reflecting the better relative yields our clients were getting across money markets and munis.
Operator: Turning to slide 9 for a closer look at credit, low single-digit revenue growth for the quarter was driven by strong double-digit revenue growth across European credit, municipal bonds, credit derivatives, China bonds, and EM credit, which more than offset weakness in US credit, where revenues fell year-over-year mainly due to retail corporate credit revenues that were down nearly 30% year-over-year, primarily reflecting the better relative yields our clients were getting across money markets and munis. US credit remains a key growth initiative. We are focused on maintaining our leadership position in our pioneering Portfolio Trading and Session Trading protocols and increasing our Block market share. Perhaps most importantly, we continue to increase our RFQ share, which we expect to be the number one driver of revenue growth in US credit going forward.
Billy Hult: Turning to slide 9 for a closer look at credit, low single-digit revenue growth for the quarter was driven by strong double-digit revenue growth across European credit, municipal bonds, credit derivatives, China bonds, and EM credit, which more than offset weakness in US credit, where revenues fell year-over-year mainly due to retail corporate credit revenues that were down nearly 30% year-over-year, primarily reflecting the better relative yields our clients were getting across money markets and munis. US credit remains a key growth initiative. We are focused on maintaining our leadership position in our pioneering Portfolio Trading and Session Trading protocols and increasing our Block market share. Perhaps most importantly, we continue to increase our RFQ share, which we expect to be the number one driver of revenue growth in US credit going forward.
Speaker #1: US credit remains a key growth leadership position and our pioneering portfolio and session trading protocols and increasing our block market share. Perhaps most importantly, we continue to increase our RFQ share, which we expect to be the number one driver of revenue growth in US credit going forward.
Speaker #1: Our deepening liquidity pool and continuously improving client experience is resonating, as we attract more clients and experienced talent across the board. Our efforts to expand into RFQ are seeing early signs of success, with our RFQ share of overall TRACE achieving a new quarterly record.
Operator: Our deepening liquidity pool and continuously improving client experience is resonating as we attract more clients and experienced talent across the board. Our efforts to expand into RFQ are seeing early signs of success, with our RFQ share of overall TRACE achieving a new quarterly record. Institutional RFQ average daily volume grew over 10% year-over-year, with growth across both IG and high yield. We also saw continued block share growth in fully electronic US investment grade and US high yield of over 130 basis points and 65 basis points, respectively. This growth was broad-based, driven by continued adoption of our portfolio trading, RFQ, and sessions protocols. More broadly, we saw active user growth of 18% year-over-year during the quarter as we continue to strengthen our US credit client network. Portfolio trading average daily volume also increased 10% year-over-year, with over 20% growth across international PT.
Billy Hult: Our deepening liquidity pool and continuously improving client experience is resonating as we attract more clients and experienced talent across the board. Our efforts to expand into RFQ are seeing early signs of success, with our RFQ share of overall TRACE achieving a new quarterly record. Institutional RFQ average daily volume grew over 10% year-over-year, with growth across both IG and high yield. We also saw continued block share growth in fully electronic US investment grade and US high yield of over 130 basis points and 65 basis points, respectively. This growth was broad-based, driven by continued adoption of our portfolio trading, RFQ, and sessions protocols. More broadly, we saw active user growth of 18% year-over-year during the quarter as we continue to strengthen our US credit client network. Portfolio trading average daily volume also increased 10% year-over-year, with over 20% growth across international PT.
Speaker #1: Institutional RFQ average daily volume grew over 10% year-over-year, with growth across both IG and high yield. We also saw continued block share growth in fully electronic U.S. investment grade and U.S. high yield of over 130 basis points and 65 basis points, respectively.
Speaker #1: This growth was broad-based, driven by continued adoption of our portfolio trading protocols. More broadly, we saw active user growth of 18% in RFQ and sessions year-over-year during the quarter, as we continue to strengthen our US credit client network.
Speaker #1: Portfolio trading average daily volume also increased 10% year-over-year, with over 20% growth across international PT. used reliable method for executing trades and managing risk.
Operator: Portfolio trading has become a widely used, reliable method for executing trades and managing risk, particularly during periods of market volatility. As the market continues to evolve, we expect adoption to expand as it further embeds itself as an essential part of credit traders' toolkits. AllTrade had a strong quarter with over $200 billion in volume, with average daily volume up over 14% year-over-year. Our all-to-all average daily volume grew over 45% year-over-year, while our Sessions average daily volume rose by nearly 10% year-over-year. The team remains focused on expanding our network and increasing the number of responders on the AllTrade platform. In the fourth quarter, we saw the fourth-highest level of ETF market maker participation ever across our institutional credit business. Beyond US credit, we're continuing to prioritize our emerging markets' credit expansion efforts.
Billy Hult: Portfolio trading has become a widely used, reliable method for executing trades and managing risk, particularly during periods of market volatility. As the market continues to evolve, we expect adoption to expand as it further embeds itself as an essential part of credit traders' toolkits. AllTrade had a strong quarter with over $200 billion in volume, with average daily volume up over 14% year-over-year. Our all-to-all average daily volume grew over 45% year-over-year, while our Sessions average daily volume rose by nearly 10% year-over-year. The team remains focused on expanding our network and increasing the number of responders on the AllTrade platform. In the fourth quarter, we saw the fourth-highest level of ETF market maker participation ever across our institutional credit business. Beyond US credit, we're continuing to prioritize our emerging markets' credit expansion efforts.
Speaker #1: Particularly during periods of market volatility, as the market continues to evolve, we expect adoption to expand. Portfolio trading has become widely seen as an essential part of, as it further embeds itself in, credit traders' toolkits.
Speaker #1: All trade had a strong quarter, with over 200 billion in volume, with average daily volume up over 14% year-over-year. Our all-to-all average daily volume grew over 45% year-over-year, while our sessions average daily volume rose by nearly 10% year-over-year.
Speaker #1: The team remains focused on expanding our network and increasing the number of responders on the all-trade platform. In the fourth quarter, we saw the fourth highest level of ever across our institutional credit business.
Speaker #1: Beyond US credit, ETF market maker participation we're continuing to prioritize our emerging markets' credit expansion efforts. We continue to broaden out our liquidity provider set across key on key integrations, and expand the functionality around key differentiators such as asset swaps.
Operator: We continue to broaden out our liquidity provider set across key markets, work with our OMS partners on key integrations, and expand the functionality around key differentiators such as asset swaps. While still early in the journey, EM credit revenues grew 25% year-over-year in Q4, signaling strong momentum. Moving to slide 10, 2025 represents the 20th anniversary of our electronic interest rate swaps platform. Back in 2005, electronic swaps trading was still an emerging idea. Two decades later, it has become an ecosystem defined by transparency, efficiency, and ongoing innovation. Our leading position in the swaps market has been built upon two decades of helping to shape global regulations, maintaining a regulated global footprint, cultivating a deep client ecosystem, and expanding a broad suite of adjacent global rates products.
Billy Hult: We continue to broaden out our liquidity provider set across key markets, work with our OMS partners on key integrations, and expand the functionality around key differentiators such as asset swaps. While still early in the journey, EM credit revenues grew 25% year-over-year in Q4, signaling strong momentum. Moving to slide 10, 2025 represents the 20th anniversary of our electronic interest rate swaps platform. Back in 2005, electronic swaps trading was still an emerging idea. Two decades later, it has become an ecosystem defined by transparency, efficiency, and ongoing innovation. Our leading position in the swaps market has been built upon two decades of helping to shape global regulations, maintaining a regulated global footprint, cultivating a deep client ecosystem, and expanding a broad suite of adjacent global rates products.
Speaker #1: While still early in the journey, EM credit revenues grew 25% year-over-year in the fourth quarter, signaling strong momentum. Moving to slide 10, 2025 represents the 20th anniversary of our electronic interest rate swaps platform.
Speaker #1: Back in 2005, electronic swaps trading was still an emerging idea. Two decades later, it has become an ecosystem defined by transparency, efficiency, and ongoing innovation.
Speaker #1: Our leading position in the swaps market has been built upon two decades of helping to shape global regulations, maintaining our footprint, cultivating a deep client ecosystem, and expanding a broad suite of adjacent global rates products.
Speaker #1: Global swaps delivered record quarterly revenues up over 25% year-over-year, driven by a combination of strong client that drove strong risk trading growth, and a 7% engagement across our global suite of currencies increase in weighted average duration.
Operator: Global swaps delivered record quarterly revenues up over 25% year-over-year, driven by a combination of strong client engagement across our global suite of currencies that drove strong risk trading growth and a 7% increase in weighted average duration. Our quarterly core risk market share, which drives revenues and excludes compression trading, was a record, rising over 70 basis points year-over-year. Total market share increased from 20.8% in the fourth quarter of 2024 to 23.3% in the fourth quarter of 2025 due to a combination of strong risk and compression volume growth. During the quarter, we achieved the highest share in our history across euro, other G11, and EM-denominated currencies. The fourth quarter performance was driven by record revenues across Europe, Asia Pacific, and emerging markets swaps, while we produced double-digit revenue growth across dollar swaps. We continue to make progress across emerging markets swaps and our rapidly growing RFM protocol.
Billy Hult: Global swaps delivered record quarterly revenues up over 25% year-over-year, driven by a combination of strong client engagement across our global suite of currencies that drove strong risk trading growth and a 7% increase in weighted average duration. Our quarterly core risk market share, which drives revenues and excludes compression trading, was a record, rising over 70 basis points year-over-year. Total market share increased from 20.8% in the fourth quarter of 2024 to 23.3% in the fourth quarter of 2025 due to a combination of strong risk and compression volume growth. During the quarter, we achieved the highest share in our history across euro, other G11, and EM-denominated currencies. The fourth quarter performance was driven by record revenues across Europe, Asia Pacific, and emerging markets swaps, while we produced double-digit revenue growth across dollar swaps. We continue to make progress across emerging markets swaps and our rapidly growing RFM protocol.
Speaker #1: Our quarterly core risk market share was drives revenues and excludes compression trading, was a points year-over-year. Total record, rising over 70 basis market share increased from 20.8% in the fourth quarter of 2024 to 23.3% in the fourth quarter of 2025.
Speaker #1: Due to a combination of strong risk and compression volume growth, during the quarter, we achieved the highest share in our history across euro, other G11, and The fourth quarter performance was driven EM-denominated currencies.
Speaker #1: Europe APAC and emerging market swaps, while we produced double-digit revenue growth across dollar swaps. We continue to make progress across emerging market growing RFM protocol.
Speaker #1: Swaps and, rapidly, in EM IRS, structural challenges like geographic dispersion, pricing opacity, and operational inefficiencies have historically made voice trading the norm. We're helping to drive more and efficient execution, like RFM and AIX.
Operator: In EM/IRS, structural challenges like geographic dispersion, pricing opacity, and operational inefficiencies have historically made voice trading the norm. We're helping to drive more discrete, transparent, and efficient execution, especially through innovations like RFM and AiEX. Our fourth quarter EM swaps revenue produced another strong growth quarter, and we believe there is still significant room to grow given the low levels of electronification. Our RFM protocol, which is seeing strong adoption across currencies, also saw average daily volume grow more than 90% year-over-year, with further adoption picking up. Looking ahead, we continue to believe the long-term growth potential for swaps remains significant. On a DV01 basis, electronification has continued to increase, with 2025 DV01-based electronification up more than 90 basis points year-over-year and growing at an average rate of over 150 basis points annually since 2020 as dealers and clients move a greater share of their workflows electronically.
Billy Hult: In EM/IRS, structural challenges like geographic dispersion, pricing opacity, and operational inefficiencies have historically made voice trading the norm. We're helping to drive more discrete, transparent, and efficient execution, especially through innovations like RFM and AiEX. Our fourth quarter EM swaps revenue produced another strong growth quarter, and we believe there is still significant room to grow given the low levels of electronification. Our RFM protocol, which is seeing strong adoption across currencies, also saw average daily volume grow more than 90% year-over-year, with further adoption picking up. Looking ahead, we continue to believe the long-term growth potential for swaps remains significant. On a DV01 basis, electronification has continued to increase, with 2025 DV01-based electronification up more than 90 basis points year-over-year and growing at an average rate of over 150 basis points annually since 2020 as dealers and clients move a greater share of their workflows electronically.
Speaker #1: Our fourth quarter was discreet and transparent. We believe there is still significant room to grow given the low levels of electronification. Our RFM protocol, which is seeing strong adoption across currencies, also saw average daily volume grow more than 90% year-over-year, with further adoption picking up.
Speaker #1: Looking ahead, we continue to believe the long-term growth potential for swaps remains significant. On a DVO1 basis, electronification has continued to increase, with 2025 DVO1-based electronification up more than 90 basis points year-over-year, and growing at an average rate of over 150 basis points annually since 2020.
Speaker #1: As dealers and clients move a greater share of their workflows electronically, that progress is evident in the performance of our swaps business, which has growth in the fourth quarter.
Operator: That progress is evident in the performance of our swaps business, which has continued to deliver strong revenue growth in the fourth quarter. On a notional basis, the cleared swaps market remains approximately 30% electronic, and we see significant opportunity to continue digitizing workflows alongside our clients. In collaboration with them, we expect to drive further workflow innovation in 2026 across both cleared and bilateral swaps markets. With that, let me turn it over to Sara to discuss our financials in more detail. Thanks, Billy, and good morning. As I go through the numbers, all comparisons will be to the prior year period unless otherwise noted. Slide 11 provides a summary of our quarterly earnings performance. As Billy recapped earlier, this quarter we saw record revenues of $521 million that were up 12.5% year-over-year on a reported basis and 9.9% on a constant currency basis given the weakening dollar.
Billy Hult: That progress is evident in the performance of our swaps business, which has continued to deliver strong revenue growth in the fourth quarter. On a notional basis, the cleared swaps market remains approximately 30% electronic, and we see significant opportunity to continue digitizing workflows alongside our clients. In collaboration with them, we expect to drive further workflow innovation in 2026 across both cleared and bilateral swaps markets. With that, let me turn it over to Sara to discuss our financials in more detail.
Speaker #1: continued to deliver strong revenue basis, the cleared swaps market remains approximately 30% electronic and we see significant digitizing workflows alongside our them, we expect to drive further workflow innovation in markets.
Speaker #1: continued to deliver strong revenue basis, the cleared swaps market remains approximately 30% electronic and we see significant digitizing workflows alongside our them, we expect to drive further workflow innovation in clients.
Speaker #1: 2026, across both, cleared opportunity to continue detail.
Speaker #1: And with that, let me turn it over. Thanks, Billy, and good morning.
Sara Furber: Thanks, Billy, and good morning. As I go through the numbers, all comparisons will be to the prior year period unless otherwise noted. Slide 11 provides a summary of our quarterly earnings performance. As Billy recapped earlier, this quarter we saw record revenues of $521 million that were up 12.5% year-over-year on a reported basis and 9.9% on a constant currency basis given the weakening dollar.
Speaker #2: As I go through the numbers, I'll comparisons will be to the prior year period, unless otherwise noted. Slide 11 provides a summary of our quarterly earnings performance.
Speaker #2: As Billy recapped earlier, this quarter we saw record revenues of $521 million that were up 12.5% year-over-year on a reported basis, and $9.9% on a constant currency basis given the weakening dollar.
Speaker #2: We derived approximately 42% of our fourth quarter revenues from international clients, and recall that revenue base is denominated in currencies other than dollars, predominantly in euros.
Operator: We derived approximately 42% of our fourth quarter revenues from international clients and recall that approximately 30% of our revenue base is denominated in currencies other than dollars, predominantly in euros. Total trading revenues increased 11%, comprised of 10% variable trading revenue growth and 18% growth across fixed trading revenues. Rate fixed revenue growth was primarily driven by an increase in minimum fee floors for certain dealers and by the addition of dealers to our mortgage and U.S. government bond platforms. Credit fixed revenue growth was primarily driven by the previously disclosed introduction of minimum fee floors and the migration of certain dealers to subscription fees. Other revenues of $13 million for the fourth quarter increased by 94%, primarily driven by growth in our digital initiatives.
Sara Furber: We derived approximately 42% of our fourth quarter revenues from international clients and recall that approximately 30% of our revenue base is denominated in currencies other than dollars, predominantly in euros. Total trading revenues increased 11%, comprised of 10% variable trading revenue growth and 18% growth across fixed trading revenues. Rate fixed revenue growth was primarily driven by an increase in minimum fee floors for certain dealers and by the addition of dealers to our mortgage and U.S. government bond platforms. Credit fixed revenue growth was primarily driven by the previously disclosed introduction of minimum fee floors and the migration of certain dealers to subscription fees. Other revenues of $13 million for the fourth quarter increased by 94%, primarily driven by growth in our digital initiatives.
Speaker #2: 11%, comprised of growth and 18% growth across fixed trading
Speaker #2: revenues. Rates fixed revenue growth was primarily driven by an increase in minimum fee floors for certain In collaboration with dealers and by the addition of dealers to our platforms.
Speaker #2: Credit fixed revenue growth was primarily driven by the previously disclosed introduction of migration of certain dealers to minimum fee floors and the subscription fees.
Speaker #2: Other revenues of $13 million for the fourth quarter increased by 94%, primarily driven by growth in our digital initiatives. Specifically, our commercial relationship with the Canton network from our role as a super validator on the network.
Operator: Specifically, we earned $6.6 million from our commercial relationship with the Canton Network from our role as a super validator on the network, where we are compensated in Canton coins. Assuming similar Canton coin pricing as in January of 2026 and based on our current estimate of earned coins, we would expect 2026 Canton-related revenue to be similar to 2025, which was approximately $11 million, but this can vary. Overall, the other revenue line will remain variable quarter to quarter, reflecting fluctuations in the number of Canton coins earned, Canton coin value, the number of super validators in the network, and periodic tech enhancements for retail clients. 2025 annual Adjusted EBITDA margin of 54% increased by 64 basis points on a reported basis when compared to our 2024 full-year margins. Our net interest income of $18.8 million increased due to higher cash balances despite lower interest yields.
Sara Furber: Specifically, we earned $6.6 million from our commercial relationship with the Canton Network from our role as a super validator on the network, where we are compensated in Canton coins. Assuming similar Canton coin pricing as in January of 2026 and based on our current estimate of earned coins, we would expect 2026 Canton-related revenue to be similar to 2025, which was approximately $11 million, but this can vary. Overall, the other revenue line will remain variable quarter to quarter, reflecting fluctuations in the number of Canton coins earned, Canton coin value, the number of super validators in the network, and periodic tech enhancements for retail clients. 2025 annual Adjusted EBITDA margin of 54% increased by 64 basis points on a reported basis when compared to our 2024 full-year margins. Our net interest income of $18.8 million increased due to higher cash balances despite lower interest yields.
Speaker #2: We are compensated in Canton coins. Assuming similar Canton coin pricing as in January of 2026, and based on our current estimate of earned coins, we would expect 2026 Canton-related revenue to be similar to 2025, which was approximately $11 million.
Speaker #2: Overall, the other million. we earned $6.6 million from revenue line will remain variable But this can fluctuations in the number of Canton quarter to quarter, reflecting coins earned, Canton coin value, the number of super validators in the network, and periodic tech enhancements for retail clients.
Speaker #2: 2025 annual adjusted EBITDA by $64 basis points on a reported basis when compared to our margin of 54% increased 2024 full year margins. Our net interest income of $18.8 million increased due to higher cash balances, despite lower interest yields.
Speaker #2: Lastly, this quarter's gap results were impacted by both unrealized and realized gains across our strategic investments. Specifically, we recorded $207 million in net gains this million of unrealized gains, reflecting quarter, including $180 the mark-to-market of our Canton coin holdings, and $25 million in realized gains, related to our exchange of Canton coins for warrants in the digital asset treasury company Theramune.
Operator: Lastly, this quarter's GAAP results were impacted by both unrealized and realized gains across our strategic investments. Specifically, we recorded $207 million in net gains this quarter, including $180 million of unrealized gains reflecting the mark-to-market of our Canton Coin holdings and $25 million in realized gains related to our exchange of Canton Coin for warrants in the digital asset treasury company Tharimmune. As a reminder, these gains are only included in GAAP EPS and are excluded from our non-GAAP adjusted diluted EPS. Moving on to fees per million on slide 12 and a highlight of the key trends for the quarter. You can see slide 18 of the earnings presentation for additional detail regarding our fee per million performance this quarter. For cash rates products, average fees per million were down 5%, primarily due to a mixed shift away from U.S.
Sara Furber: Lastly, this quarter's GAAP results were impacted by both unrealized and realized gains across our strategic investments. Specifically, we recorded $207 million in net gains this quarter, including $180 million of unrealized gains reflecting the mark-to-market of our Canton Coin holdings and $25 million in realized gains related to our exchange of Canton Coin for warrants in the digital asset treasury company Tharimmune. As a reminder, these gains are only included in GAAP EPS and are excluded from our non-GAAP adjusted diluted EPS. Moving on to fees per million on slide 12 and a highlight of the key trends for the quarter. You can see slide 18 of the earnings presentation for additional detail regarding our fee per million performance this quarter. For cash rates products, average fees per million were down 5%, primarily due to a mixed shift away from U.S.
Speaker #2: As a reminder, these gains are only included in
Speaker #1: from excluded In EPs our and are adjusted non-GAAP GAAP . diluted on to . on million 12 . And a highlight Moving of the fees per quarter slide .
Speaker #1: Moving on to EPs fees, you can see the highlight of the fees per quarter on slide 12. Our EPs and fees are adjusted on a non-GAAP and GAAP basis. And, as a highlight, diluted EPs are adjusted on these metrics as well.
Speaker #1: highlight of And a the key trends for the . quarter can see slide 18 of the earnings presentation additional million detail million performance our fee per .
Operator: government bonds, which carry a comparatively higher fee per million. For long tenor swaps, average fees per million were up 2%, primarily due to higher duration. For cash credit, average fees per million decreased 14% due to the migration of certain dealers from fully variable plans to fixed plans across institutional and wholesale U.S. credit, and a mixed shift away from retail within U.S. credit, which carries a higher fee per million. For cash equities, average fees per million decreased 10% due to a mixed shift away from European ETFs, which carry relatively higher fee per million, and a reduction in U.S. ETF fee per million given an increase in notional per share traded. Recall, in the U.S., we charge per share and not for the notional value traded.
Sara Furber: government bonds, which carry a comparatively higher fee per million. For long tenor swaps, average fees per million were up 2%, primarily due to higher duration. For cash credit, average fees per million decreased 14% due to the migration of certain dealers from fully variable plans to fixed plans across institutional and wholesale U.S. credit, and a mixed shift away from retail within U.S. credit, which carries a higher fee per million. For cash equities, average fees per million decreased 10% due to a mixed shift away from European ETFs, which carry relatively higher fee per million, and a reduction in U.S. ETF fee per million given an increase in notional per share traded. Recall, in the U.S., we charge per share and not for the notional value traded.
Speaker #1: for cash rates , products , average fees per million quarter primarily 5% , due to a away shift mix from US government bonds , which carry a For comparatively higher per million for tenure swaps .
Speaker #1: fees per up 2% , primarily due to higher million duration cash credit for million fees per . 14% due to the Average dealers from fully fixed plans to plans variable across and wholesale Average credit shift away from retail within US credit , which carries a higher fee per and million for cash equities .
Speaker #1: Where Slide 13 details our results at a high million level. The strength of our scalability and nature of variable costs allows us to continue to grow the base and grow margins.
Speaker #1: Average a mix which carry relatively higher per million fee, US ETF fee per million. Given an increase in notional share traded, recall in per the we charge per share and not notional value traded.
Operator: Finally, within money markets, average fees per million decreased 6%, primarily due to a mixed shift away from retail CDs, which carry a comparatively higher fee per million. Slide 13 details our adjusted expenses. At a high level, the scalability and variable nature of our expense base allows us to continue to invest for growth and grow margins. We have maintained a consistent philosophy here. Adjusted expenses for Q4 increased 12% on a reported basis and 9% on a constant currency basis. During Q4, we continued investments in tech and communications, digital assets, consulting, and client relationship development. Adjusted compensation costs grew 5%, driven primarily by an 11% year-over-year increase in headcount, partially offset by lower accruals for performance-related variable compensation. Technology and communication costs increased 24%, primarily due to our continued investments in data strategy and infrastructure, and increased software costs.
Sara Furber: Finally, within money markets, average fees per million decreased 6%, primarily due to a mixed shift away from retail CDs, which carry a comparatively higher fee per million. Slide 13 details our adjusted expenses. At a high level, the scalability and variable nature of our expense base allows us to continue to invest for growth and grow margins. We have maintained a consistent philosophy here. Adjusted expenses for Q4 increased 12% on a reported basis and 9% on a constant currency basis. During Q4, we continued investments in tech and communications, digital assets, consulting, and client relationship development. Adjusted compensation costs grew 5%, driven primarily by an 11% year-over-year increase in headcount, partially offset by lower accruals for performance-related variable compensation. Technology and communication costs increased 24%, primarily due to our continued investments in data strategy and infrastructure, and increased software costs.
Speaker #1: Finally , money markets , long 6% , primarily due to a shift away from within institutional CDs , average fees comparatively higher fee per carry a .
Speaker #1: We have invested for consistency here. During the fourth quarter, increased 12% on a reported basis and 9% on a constant currency basis. We maintained a decreased...
Speaker #1: basis continued expenses in tech communications , quarter , we , consulting and client digital relationship development , adjusted compensation costs grew 5% , primarily by an 11% year over year increase in , partially offset by lower for variable compensation technology and costs .
Speaker #1: headcount primarily due investments in continued strategy and philosophy communication and to our infrastructure , software increased costs . fees professional Adjusted grew 17% due to an increase we augment our offshore technology data consultants .
Operator: Adjusted professional fees grew 17% due to an increase in tech consultants as we augment our offshore technology operations and due to episodic advisory fees related to legal, tax, and consulting services. Occupancy expenses increased 59%, primarily from increased rent due to the move to our new New York City headquarters. Adjusted general and administrative costs increased 27%, primarily due to unfavorable movements in FX and a pickup in travel, entertainment, and marketing expenses. Unfavorable movements in FX resulted in a $3.7 million loss in Q4 2025 versus approximately a $1.1 million gain in Q4 2024. Excluding FX, adjusted general and administrative costs grew 3%. Slide 14 details capital management and our guidance.
Sara Furber: Adjusted professional fees grew 17% due to an increase in tech consultants as we augment our offshore technology operations and due to episodic advisory fees related to legal, tax, and consulting services. Occupancy expenses increased 59%, primarily from increased rent due to the move to our new New York City headquarters. Adjusted general and administrative costs increased 27%, primarily due to unfavorable movements in FX and a pickup in travel, entertainment, and marketing expenses. Unfavorable movements in FX resulted in a $3.7 million loss in Q4 2025 versus approximately a $1.1 million gain in Q4 2024. Excluding FX, adjusted general and administrative costs grew 3%. Slide 14 details capital management and our guidance.
Speaker #1: advisory fees related to legal , tax and consulting episodic services expenses . Occupancy primarily from As rent due to in tech new New our York City headquarters .
Speaker #1: Adjusted general and administrative costs increased primarily due to 27% , movements unfavorable FX and a entertainment and marketing travel and pickup in expenses .
Speaker #1: in Unfavorable movements in FX resulted in a $3.7 million loss in the fourth quarter to of 25 , versus approximately a $1.1 million gain fourth quarter in the driven of 24 .
Speaker #1: Excluding FX general . Adjusted administrative grew 3% . Slide 14 . Details capital and our costs on our position and our cash guidance policy return capital .
Operator: On our cash position and our capital return policy, we ended the fourth quarter in a strong position with approximately $2.1 billion in cash and cash equivalents and free cash flow exceeding $1 billion for the year. We delivered strong free cash flow growth of approximately 32% year-over-year, or 22% excluding a timing benefit related to the deferral of certain 2025 tax payments into the first quarter of 2026. We also held approximately $1.6 billion of Canton coins with a fair value of approximately $243 million, which is recorded on our balance sheet under digital assets and other investments at fair value. With this quarter's earnings, the board declared a quarterly dividend of $0.14 per Class A, and Class B shares, up 17% year-over-year. During the quarter, as part of our 2022 share repurchase program, we repurchased approximately 990,000 shares for $106 million.
Sara Furber: On our cash position and our capital return policy, we ended the fourth quarter in a strong position with approximately $2.1 billion in cash and cash equivalents and free cash flow exceeding $1 billion for the year. We delivered strong free cash flow growth of approximately 32% year-over-year, or 22% excluding a timing benefit related to the deferral of certain 2025 tax payments into the first quarter of 2026. We also held approximately $1.6 billion of Canton coins with a fair value of approximately $243 million, which is recorded on our balance sheet under digital assets and other investments at fair value. With this quarter's earnings, the board declared a quarterly dividend of $0.14 per Class A, and Class B shares, up 17% year-over-year. During the quarter, as part of our 2022 share repurchase program, we repurchased approximately 990,000 shares for $106 million.
Speaker #1: ended We the fourth quarter in position with approximately a strong cash equivalents free and cash exceeding flow year $1 billion for the . We delivered strong free cash flow growth of 32% year over approximately 2.1 billion in cash and year , 22% excluding or a timing benefit the of certain related to deferral 2025 tax payments into the first of quarter 2026 .
Speaker #1: also held We approximately 1.6 billion of coins with a fair value of approximately 243 million , which is recorded balance sheet under on our digital assets and other at fair investments value this board earnings , the declared a quarter's quarterly .
Speaker #1: dividend of $0.14 per class and class B A shares With 17% year over year up . During the quarter . As part of our 2022 share program , repurchased approximately 990,000 for $106 million .
Operator: Additionally, we have repurchased approximately 483,000 shares for approximately $51 million in January. There is currently $23 million remaining to be purchased under the 2022 share repurchase program. Finally, this morning, the board of directors approved the 2026 share repurchase program, which authorizes the repurchase of up to $500 million of the company's Class A common stock once the remaining authorization under the 2022 share repurchase program is exhausted. Turning to guidance for 2026, we will continue to invest in the business in 2026 and are expecting adjusted expenses to range between $1.1 and 1.16 billion. The midpoint of this range would represent an approximate 11% increase year-over-year, relatively in line with our average expense growth since 2016.
Sara Furber: Additionally, we have repurchased approximately 483,000 shares for approximately $51 million in January. There is currently $23 million remaining to be purchased under the 2022 share repurchase program. Finally, this morning, the board of directors approved the 2026 share repurchase program, which authorizes the repurchase of up to $500 million of the company's Class A common stock once the remaining authorization under the 2022 share repurchase program is exhausted. Turning to guidance for 2026, we will continue to invest in the business in 2026 and are expecting adjusted expenses to range between $1.1 and 1.16 billion. The midpoint of this range would represent an approximate 11% increase year-over-year, relatively in line with our average expense growth since 2016.
Speaker #1: repurchased shares Additionally , we have approximately 483,000 shares for approximately $51 million . In January is . There currently be purchased under the 2022 share repurchase program .
Speaker #1: Finally, this morning, the Board of Directors approved the 2026 share repurchase program, which authorizes the repurchase of up to $500 million of the company's Class A stock.
Speaker #1: Once the remaining authorization 22 share repurchase exhausted program is Turning to guidance for 2026 , we will continue to invest in the business expecting adjusted .
Speaker #1: in between 1.1 billion and 1.16 billion . The midpoint of this range an would represent approximate increase year year 11% , relatively in line with expense growth our since average 2016 .
Operator: We believe we can drive Adjusted EBITDA and operating margin expansion compared to 2025 at either end of this range, although we expect the incremental margin expansion to be more muted as overall margins are higher and we continue to focus on balancing margin expansion with investing for the future. Specifically, we continue to invest in credit, rates, international markets, ICD, and digital assets as key focus areas with a long runway for growth. We also continue to invest in technology that allows us to sustain and build on our leading platform. Some of these investments will take time to scale, but we continue to prize innovation in creating durable long-term growth opportunities.
Sara Furber: We believe we can drive Adjusted EBITDA and operating margin expansion compared to 2025 at either end of this range, although we expect the incremental margin expansion to be more muted as overall margins are higher and we continue to focus on balancing margin expansion with investing for the future. Specifically, we continue to invest in credit, rates, international markets, ICD, and digital assets as key focus areas with a long runway for growth. We also continue to invest in technology that allows us to sustain and build on our leading platform. Some of these investments will take time to scale, but we continue to prize innovation in creating durable long-term growth opportunities.
Speaker #1: believe we can We drive adjusted EBITDA operating and margin expansion compared to 2025 at either end of this , although range we expect the margin incremental to be more expansion muted as overall margins are higher and we focus on continue to balancing expansion margin with for the investing future .
Speaker #1: Specifically , we continue to invest in credit rates , international , ICD and digital assets as focus areas with a long growth . We also continue to invest in technology that allows us to sustain and build on our leading platform .
Operator: Within adjusted noncomp expenses, we expect our quarterly tech and communications expenses to grow in the mid- to high teens over our Q4 run rate as we continue to invest in our data strategy and infrastructure to support the growth of our platform and new product initiatives. We expect annual G&A expenses to be impacted by continued FX losses, primarily impacting the first half of 2026 given current FX rates. We expect Q1 2026 professional fees to step down sequentially by approximately $2 million from Q4 2025 related to the previously mentioned episodic expenses. We expect annual occupancy expenses to increase approximately 35% year-over-year, primarily due to the full-year effect of our new New York City headquarters, and the overall expansion of our geographic footprint.
Sara Furber: Within adjusted noncomp expenses, we expect our quarterly tech and communications expenses to grow in the mid- to high teens over our Q4 run rate as we continue to invest in our data strategy and infrastructure to support the growth of our platform and new product initiatives. We expect annual G&A expenses to be impacted by continued FX losses, primarily impacting the first half of 2026 given current FX rates. We expect Q1 2026 professional fees to step down sequentially by approximately $2 million from Q4 2025 related to the previously mentioned episodic expenses. We expect annual occupancy expenses to increase approximately 35% year-over-year, primarily due to the full-year effect of our new New York City headquarters, and the overall expansion of our geographic footprint.
Speaker #1: Investments will take time to scale, but we continue to prize innovation in creating some durable, long-term growth opportunities within adjusted non-comp expenses.
Speaker #1: expect our quarterly tech and communications expenses to in the mid grow high to teens over fourth quarter run rate as we continue to our invest in our data strategy and infrastructure to growth of our platform and initiatives product .
Speaker #1: G&A We expect expenses to be impacted by support the FX losses , primarily continued impacting the half first FX annual , we expect the quarter professional of 2026 down step to first sequentially by fees approximately from the $2 million fourth of 2025 .
Speaker #1: Related to the previously mentioned episodic expenses , we annual expect expenses to occupancy approximately 35% year over year due to the full year , primarily effect of our new New York City headquarters and the overall expansion of our geographic footprint For the first quarter 2026 , we expect net interest of approximately $15 million , which the current interest reflects rate environment and a seasonally lower over cash balance driven annual by payments and the expected purchase of approximately $70 million of credits in Q1 26 .
Operator: For the first quarter of 2026, we expect net interest income of approximately $15 million, which reflects the current interest rate environment and a seasonally lower cash balance driven by annual bonus payments and the expected purchase of approximately $70 million of transferable tax credits in Q1 2026. For modeling purposes, we view the first quarter of 2026 as a good starting point for the rest of the year. For forecasting purposes, our assumed non-GAAP tax rate ranges from 23.5% to 24.5% for the year. We expect CapEx in capitalized software development to range between $107 million and $117 million. The midpoint of our CapEx guidance implies a roughly 9% year-over-year increase. We estimate that approximately 60% of the total spend will be on software development to support our growth initiatives, and approximately 40% will be related to growth and maintenance CapEx.
Sara Furber: For the first quarter of 2026, we expect net interest income of approximately $15 million, which reflects the current interest rate environment and a seasonally lower cash balance driven by annual bonus payments and the expected purchase of approximately $70 million of transferable tax credits in Q1 2026. For modeling purposes, we view the first quarter of 2026 as a good starting point for the rest of the year. For forecasting purposes, our assumed non-GAAP tax rate ranges from 23.5% to 24.5% for the year. We expect CapEx in capitalized software development to range between $107 million and $117 million. The midpoint of our CapEx guidance implies a roughly 9% year-over-year increase. We estimate that approximately 60% of the total spend will be on software development to support our growth initiatives, and approximately 40% will be related to growth and maintenance CapEx.
Speaker #1: transferable CapEx , acquisition and Refinitiv transaction related DNA , which we adjust out due to roughly associated with pushdown accounting , is expected to be $160 million in 2026 .
Speaker #1: For purposes tax , we view the first quarter of 2026 as a good rest of point for the the year for our assumed purposes , ranges from year 23.5 to 24.5% for the .
Speaker #1: We expect capitalized and non-GAAP to development range forecasting between bonus $117 million , the midpoint of our software CapEx guidance implies a 9% year over year .
Speaker #1: We estimate that approximately 60% of the total spend will be on software to support growth initiatives and approximately 40% will go to growth and maintenance.
Operator: Acquisition and Refinitiv transaction-related D&A, which we adjust out due to the increase associated with push-down accounting, is expected to be $160 million in 2026. Lastly, we expect 2026 revenue generated under the master data agreement with LSEG to be approximately $105 million, spread evenly throughout the four quarters. Now I'll turn it back to Billy for concluding remarks. Thanks, Sara. Looking toward 2026, we see a constructive market environment taking shape. Even with lower volatility, issuance activity remains strong across governments, corporates, and increasingly AI-driven infrastructure investment, supporting relative value trading and hedging flows across markets. Alongside the current regulatory backdrop, coupled with growing cross-border activity, these dynamics play directly to our strengths. With a global, multi-asset platform and deep client connectivity, we're well-positioned to support the next phase of market structure evolution and to continue delivering scalable, resilient workflow solutions for our clients.
Sara Furber: Acquisition and Refinitiv transaction-related D&A, which we adjust out due to the increase associated with push-down accounting, is expected to be $160 million in 2026. Lastly, we expect 2026 revenue generated under the master data agreement with LSEG to be approximately $105 million, spread evenly throughout the four quarters. Now I'll turn it back to Billy for concluding remarks.
Speaker #1: Lastly, we expect 2026 revenue generated under the Master Data agreement with LSEG to be approximately $105 million, spread evenly throughout the four quarters.
Billy Hult: Thanks, Sara. Looking toward 2026, we see a constructive market environment taking shape. Even with lower volatility, issuance activity remains strong across governments, corporates, and increasingly AI-driven infrastructure investment, supporting relative value trading and hedging flows across markets. Alongside the current regulatory backdrop, coupled with growing cross-border activity, these dynamics play directly to our strengths. With a global, multi-asset platform and deep client connectivity, we're well-positioned to support the next phase of market structure evolution and to continue delivering scalable, resilient workflow solutions for our clients.
Speaker #1: Now, I'll turn it back to Billy for concluding remarks.
Speaker #2: Thanks, Sarah. Looking toward a more constructive market environment taking shape with lower rates. Even issuance volatility activity remains strong across governments, corporates, and increasingly, AI-driven infrastructure supporting investment.
Speaker #2: value relative trading and hedging flows across markets . Alongside the current regulatory 2026 , we see backdrop , growing cross-border activity , these dynamics play our directly to strengths with a global multi-asset platform and client positioned to We're well support the deep phase connectivity .
Speaker #2: structure evolution and to of scalable solutions workflow , resilient for our clients . On reported we that volumes and record revenues in January , which translated into revenue growth note , of 17% year over .
Operator: On that note, we reported record volumes in revenues in January, which translated into total revenue growth of 17% year-over-year. Recall, January 2025 had 1 extra trading day and also benefited from an $8 million boost in market data tied to the delivery of datasets to LSEG. The revenue recognition of these datasets in 2026 will shift to $2 million, being recognized in the first month of every quarter. Adjusting for these two factors, average daily revenue growth was 26% year-over-year, showcasing how our sophisticated clients and dealers continue to be very active across our global markets. I would like to conclude my remarks by thanking our clients for their business, and partnership in the quarter. I want to thank my colleagues for their efforts that contributed to the record quarterly and annual revenues and volumes at Tradeweb. With that, I will turn it back to Ashley for your questions.
Billy Hult: On that note, we reported record volumes in revenues in January, which translated into total revenue growth of 17% year-over-year. Recall, January 2025 had 1 extra trading day and also benefited from an $8 million boost in market data tied to the delivery of datasets to LSEG. The revenue recognition of these datasets in 2026 will shift to $2 million, being recognized in the first month of every quarter. Adjusting for these two factors, average daily revenue growth was 26% year-over-year, showcasing how our sophisticated clients and dealers continue to be very active across our global markets. I would like to conclude my remarks by thanking our clients for their business, and partnership in the quarter. I want to thank my colleagues for their efforts that contributed to the record quarterly and annual revenues and volumes at Tradeweb. With that, I will turn it back to Ashley for your questions.
Speaker #2: year Recall , January 2025 had trading one extra day also and 8 million boost in market tied to the data from an of datasets to Lseg .
Speaker #2: revenue The of these recognition data sets in 2026 will shift to 2 million , being recognized in . Adjusting for these two factors , average daily growth was the 26% year over year , showcasing how our clients and total dealers continue to be very our global active across markets .
Speaker #2: I would like sophisticated conclude my remarks by to clients for their business and partnership in the I want to quarter . colleagues for their thank my efforts that contributed to the Quarterly record .
Operator: Thanks, Billy. As a reminder, please limit yourself to one question only. Feel free to hop back into queue and ask additional questions at the end. Q&A will end at 10:30AM Eastern Time. Operator, you can now take our first question. Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. We also ask that you please wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. The first question today comes from the line of Patrick Moley of Piper Sandler. Your line is open. Yes. Good morning and thanks for taking the question. So, Billy, I was hoping you could elaborate a little bit on your comments there you made at the end of your prepared remarks on the outlook for the market in 2026.
Ashley Serrao: Thanks, Billy. As a reminder, please limit yourself to one question only. Feel free to hop back into queue and ask additional questions at the end. Q&A will end at 10:30AM Eastern Time. Operator, you can now take our first question.
Speaker #2: and annual revenues and volumes at Tradeweb . With that , it back to will turn Ashley for your I questions .
Speaker #3: reminder , please limit As a Thanks , Billy . yourself to one question only . Feel free to hop additional back in queue and questions ask at the end .
Operator: Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. We also ask that you please wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. The first question today comes from the line of Patrick Moley of Piper Sandler. Your line is open.
Speaker #3: will Q&A end at 10:30 a.m. Eastern time . You can now take our the first question .
Speaker #4: Thank you . a As reminder , if you would ask a like to One on your telephone . We also ask that you please wait for company to be your name announced before proceeding with your question .
Speaker #4: question ,
Speaker #4: One moment while we compile the roster . The first question today the line of Patrick comes from Moley Q&A Sandler . of Piper line is open Your .
Patrick Moley: Yes. Good morning and thanks for taking the question. So, Billy, I was hoping you could elaborate a little bit on your comments there you made at the end of your prepared remarks on the outlook for the market in 2026.
Speaker #5: Yes . question . So , Billy , I taking the Good elaborate a little you could was hoping morning , and You made at comments there .
Operator: What are some of the major themes that you're focused on this year? And then also, I think the 17% year-over-year revenue growth in January was a lot better than people were expecting. So any color you could give on what drove the strength there would be much appreciated. Thanks. Yeah. Absolutely, Patrick. Thanks for the question. We're working hard, so appreciate your voice on this. It's a really good setup for our business. And maybe for a quick second, Patrick, let me give a moment of context.
Patrick Moley: What are some of the major themes that you're focused on this year? And then also, I think the 17% year-over-year revenue growth in January was a lot better than people were expecting. So any color you could give on what drove the strength there would be much appreciated. Thanks.
Billy Hult: Yeah. Absolutely, Patrick. Thanks for the question. We're working hard, so appreciate your voice on this. It's a really good setup for our business. And maybe for a quick second, Patrick, let me give a moment of context.
Speaker #5: the end of your prepared on the remarks outlook for the some of the major themes market in 2026 . that you're What are on this focused year ?
Speaker #5: And then also , I think the bit on revenue January better than were was a lot expecting . So color you could give any strength drove the , there would on what be much appreciated .
Speaker #5: Thanks .
Speaker #6: absolutely . Yeah , for the question . we're working hard . appreciate . So Appreciate your voice on this . It's a really good setup for our And maybe for a quick second , Patrick , let me give moment of context .
Operator: Even over the last kind of 5, 6 years, we've gone from kind of 0 rate, 0 inflation market to this kind of post-pandemic world where there was the kind of higher rates on the back of that big inflation burst to kind of where we are now, which is around this kind of what feels like this kind of general rates framework. We're in the 4% on ten-year notes, right? What we have is this obviously. It's been a conducive Fed. I think the feeling that we have here is that there's more to do. But there still is, I think, something very important, which is real debate on the timing of it all. And those are good outcomes for us. And then you take a little bit of a step back from there, debt markets are growing, right?
Billy Hult: Even over the last kind of 5, 6 years, we've gone from kind of 0 rate, 0 inflation market to this kind of post-pandemic world where there was the kind of higher rates on the back of that big inflation burst to kind of where we are now, which is around this kind of what feels like this kind of general rates framework. We're in the 4% on ten-year notes, right? What we have is this obviously. It's been a conducive Fed. I think the feeling that we have here is that there's more to do. But there still is, I think, something very important, which is real debate on the timing of it all. And those are good outcomes for us. And then you take a little bit of a step back from there, debt markets are growing, right?
Speaker #6: on the back of that , like rates , roof on inflation burst , you know , kind of where we are , which is now what feels like this to general this you know , like we're , you framework we're in the tenure notes , right ?
Speaker #6: But what we 4% on have is this , know , you know , a it's been a , obviously conducive fed . the I think feeling that we have that here is there's more to do you .
Speaker #6: there But , you know , still is I think something important , which is like , very you know , real know , on you debate , timing of the You know , it all .
Operator: We have this very active kind of primary activity issuance world now. Public sector and the private sector need funding, right? So even this past week, as you know well, Oracle issued $25 billion in bonds this week. That leads to rates trading as investors hedge out fixed exposure. I'll make the most obvious point of the day. AI is real, right? The hyperscalers will be selling bonds. So when you think about the big picture of it for a second, the numbers that we're talking about, $600 billion of AI infrastructure spent, right? That's going to lead to more rates trading. Those things, from our perspective, are good. As the leading rates trading platform, those are good outcomes for us, and those are things that we feel good about.
Speaker #6: you know , good And outcomes for those are , And you us . little bit of a step back from You know , debt there .
Billy Hult: We have this very active kind of primary activity issuance world now. Public sector and the private sector need funding, right? So even this past week, as you know well, Oracle issued $25 billion in bonds this week. That leads to rates trading as investors hedge out fixed exposure. I'll make the most obvious point of the day. AI is real, right? The hyperscalers will be selling bonds. So when you think about the big picture of it for a second, the numbers that we're talking about, $600 billion of AI infrastructure spent, right? That's going to lead to more rates trading. Those things, from our perspective, are good. As the leading rates trading platform, those are good outcomes for us, and those are things that we feel good about.
Speaker #6: markets are growing , right . you know , we have this very kind active of , you know , primary And , issuance world .
Speaker #6: Now , you know , public activity sector . And the private sector need funding . Right . So this past week even , as you well , know Oracle know , 25 billion in bonds this week .
Speaker #6: know that You leads you know to rates trading investors hedge out fixed as exposure . I'll make the obvious most point of the day is AI right .
Speaker #6: real The hyperscalers will be selling bonds . And so think about of it when you for a second , you know , picture the that are , you know , that we're the big talking about 600 billion of AI spend , right .
Speaker #6: That's going to lead to more rates trading those perspective , you . And things from know , are infrastructure you know , rates , you know , as the leading trading Those are platform .
Operator: So, as you know, for example, in January, our global swap platform was up over 40% on revenue. Really strong month for our treasury platform, right? You can see how these things kind of work to our favor. The geopolitical complexity kind of drama, whether or not we want to think about the debasement trade or diversification away from US assets, at a minimum, what we're talking about, obviously, is central bank policy divergence. From our perspective, what's that going to do? It's going to spur more cross-border trading, more global activity. And we have, as you know well, a global enterprise, and our international business is exceptionally strong. So in January, we saw exceptionally good results from our European swaps business, European government bonds, very strong numbers coming out of European credit. The revenues there were up 40%. Big news, obviously, happening this month in Japan.
Billy Hult: So, as you know, for example, in January, our global swap platform was up over 40% on revenue. Really strong month for our treasury platform, right? You can see how these things kind of work to our favor. The geopolitical complexity kind of drama, whether or not we want to think about the debasement trade or diversification away from US assets, at a minimum, what we're talking about, obviously, is central bank policy divergence. From our perspective, what's that going to do? It's going to spur more cross-border trading, more global activity. And we have, as you know well, a global enterprise, and our international business is exceptionally strong. So in January, we saw exceptionally good results from our European swaps business, European government bonds, very strong numbers coming out of European credit. The revenues there were up 40%. Big news, obviously, happening this month in Japan.
Speaker #6: good outcomes for are things us . that we And those about . So , you know , you know , for as , for example , in January , our feel good global swap platform was up over 40% on , really strong month platform .
Speaker #6: Right . You can see things for our Treasury kind of work how these favor . The , the geopolitical complexity you know , not we want to think about , like the debasement trade or diversification away whether or from U.S.
Speaker #6: assets at a what we're talking about , obviously , is , you know , central minimum , bank policy divergence , know , from you what's that going to do ?
Speaker #6: It's going perspective , our , you know , more cross-border trading , global activity more . And we have , as you know , well , you know , a global you know , and enterprise , our international exceptionally in So strong .
Speaker #6: business is January we saw exceptionally results . our swaps European You know , from business , European government good bonds very strong coming out numbers of credit .
Speaker #6: business is January we saw exceptionally results . our swaps European You know , from business , European government good bonds very strong coming out numbers of European The revenues were up 40% .
Operator: Our JGB revenues were up 30% in January. So the international business that we bring to the table that we've worked very hard on building, I think, is an advantage for us kind of going forward. Getting very just quickly into a version of kind of what's happening with equities doesn't take a big leap to understand that perhaps the index is full. We could be looking at a world where there's more kind of drawdowns there. It's going to be about kind of allocating resource into kind of more sector exposure, more country exposure. Those kinds of thoughts and that kind of theme, I think, plays extremely well to the ETF business that we've worked very hard here on building. And so our global ETF revenues were up 40% in January. So these are good outcomes for us and a good setup.
Billy Hult: Our JGB revenues were up 30% in January. So the international business that we bring to the table that we've worked very hard on building, I think, is an advantage for us kind of going forward. Getting very just quickly into a version of kind of what's happening with equities doesn't take a big leap to understand that perhaps the index is full. We could be looking at a world where there's more kind of drawdowns there. It's going to be about kind of allocating resource into kind of more sector exposure, more country exposure. Those kinds of thoughts and that kind of theme, I think, plays extremely well to the ETF business that we've worked very hard here on building. And so our global ETF revenues were up 40% in January. So these are good outcomes for us and a good setup.
Speaker #6: news Big obviously happening month in this Japan . Our revenues were up 30% in January . So international the bring to business that we table that we've worked very on hard building , I think is an for us kind of advantage forward , you know , getting quickly into very just into a of kind of what's happening with , with equities doesn't take a big leap to understand that , you know , perhaps like the full , we could be index is at a world where there's kind of more draw there .
Speaker #6: It's going to be about kind into kind of more sector resource more country exposure kinds of thoughts , those and that kind of theme .
Speaker #6: I think exposure , extremely plays well to the ETF business that we've worked very here . On building . And hard global so our ETF revenues are 40% in January .
Operator: And then I think, as we think about maybe one of the more important components to kind of how we're thinking about 2026, sometimes things are kind of in our control, and sometimes things can be a little bit out of our control. As you know well, there's this concept, obviously, that I think is really important just around the deregulation of the banks and the way that ultimately that's going to and has led to these extremely strong kind of trading operations coming out of how we think about the legacy banks, but really, from our perspective, kind of the partner banks for us. And so I kind of say this with a little bit of humor. The swag is back for these firms, and the numbers kind of prove it. And from my perspective and from Tradeweb's perspective, these are great outcomes for us.
Billy Hult: And then I think, as we think about maybe one of the more important components to kind of how we're thinking about 2026, sometimes things are kind of in our control, and sometimes things can be a little bit out of our control. As you know well, there's this concept, obviously, that I think is really important just around the deregulation of the banks and the way that ultimately that's going to and has led to these extremely strong kind of trading operations coming out of how we think about the legacy banks, but really, from our perspective, kind of the partner banks for us. And so I kind of say this with a little bit of humor. The swag is back for these firms, and the numbers kind of prove it. And from my perspective and from Tradeweb's perspective, these are great outcomes for us.
Speaker #6: So these are, like, good outcomes for us, you know, and a good — and then I set up — think as, think about maybe one of the more important components to kind of how we're thinking about '26. You know, sometimes things are kind of in our control, and sometimes things can be a little bit out of our — as you know.
Speaker #6: there's control . , obviously , concept that Well , I think is really important . Just around , you know , the deregulation of the and the way that banks ultimately that's and to has led to , you know , these extremely kind of trading strong operations coming out you know , of , how we think about , you know , legacy banks , but really from our perspective , like the partner banks , you kind of know , for us , you know , and so I kind of say this with a little bit of humor , like the , you swag know , the is back .
Speaker #6: You know , for these for firms And you know , and the for of from my and from Tradeweb perspective , these are for us .
Operator: These are, in a lot of ways, 25-year relationships that we've had with firms like Goldman and firms like Morgan Stanley, J.P. Morgan, and Citi. And so as risk-taking kind of is back in vogue and the profitability of the business for these partners of ours is extremely high level, I think the quote that I looked at was, "Between Goldman, Morgan Stanley, J.P. Morgan, and Citi, in FIC, in 2025, they made over $55 billion," right? As a trusted partner in the markets with those kind of firms, it's an incredibly good outcome for us to see the profitability of those businesses. And so that's an important thing as we think about the outcome and the setup for 2026. And then the other thing I would just say is this concept of risk events is always going to be a part of our world.
Billy Hult: These are, in a lot of ways, 25-year relationships that we've had with firms like Goldman and firms like Morgan Stanley, J.P. Morgan, and Citi. And so as risk-taking kind of is back in vogue and the profitability of the business for these partners of ours is extremely high level, I think the quote that I looked at was, "Between Goldman, Morgan Stanley, J.P. Morgan, and Citi, in FIC, in 2025, they made over $55 billion," right? As a trusted partner in the markets with those kind of firms, it's an incredibly good outcome for us to see the profitability of those businesses. And so that's an important thing as we think about the outcome and the setup for 2026. And then the other thing I would just say is this concept of risk events is always going to be a part of our world.
Speaker #6: These outcomes in a lot of ways , are you know , 25 year relationships that we've had , you know , with firms like Goldman and firms like Morgan Stanley , JP and Morgan city .
Speaker #6: And so as risk taking kind of is back in vogue . And the profitability of the business for these of ours partners is extremely high level .
Speaker #6: the , you know , the quote that I , the quote that I looked at was , you know , between Goldman , Morgan Morgan and Citi in Stanley , JP in 2025 , they made FIC over $55 billion , right trusted ?
Speaker #6: As a partner in kind with those the of firms , it's an incredibly good for us outcome to see the profitability those businesses so that's .
Speaker #6: an important thing think about And the outcome the set up and for , know , you for then the other 26 . thing I would And just say is , you like concept of risk events is always this a part of our world .
Operator: It's pretty interesting if you think about just the way the market kind of tended to shrug off some real risk events in kind of December and January. As you know, the ten-year kind of stayed between 4.1 and 4.2 around some pretty big headline news, whether or not that was the Justice Department with actions against Powell or military action in Iran. These are pretty big headlines. I think there's a thought process sometimes that the market has the ability to only price in what's right in front of it. There are moments, from our perspective, where that kind of ends. So the concept of living with exogenous risk is a part of the cadence of how markets develop.
Billy Hult: It's pretty interesting if you think about just the way the market kind of tended to shrug off some real risk events in kind of December and January. As you know, the ten-year kind of stayed between 4.1 and 4.2 around some pretty big headline news, whether or not that was the Justice Department with actions against Powell or military action in Iran. These are pretty big headlines. I think there's a thought process sometimes that the market has the ability to only price in what's right in front of it. There are moments, from our perspective, where that kind of ends. So the concept of living with exogenous risk is a part of the cadence of how markets develop.
Speaker #6: And it's pretty interesting if you think about going to be just the way the market kind of tended to shrug off some real events risk of December and tenure kind of stayed in kind like January , as you four one and four two , around know , some pretty big headline news , whether or not that was like , you know , the Justice Department with actions against Powell or action military Iran , these are pretty big headlines .
Speaker #6: think there's I in a there's a thought process sometimes that the market to ability only what's in front of price in right . There are moments it from our perspective where that kind of ends .
Speaker #6: And so the concept of living with exogenous is a part of risk the of how cadence so the develop . And piece of kind of last sauce secret around how we think things will develop is ultimately going to be the return of know , , you risk orientation world .
Operator: And so the last piece of kind of secret sauce around how things will develop is ultimately going to be the return of good risk orientation into our world. And so I step back and I say, "A very good rates framework for activity going forward," kind of green light there. Continued cross-border global activity, green light there. Diversified equities exposure, green light there. And then a business environment that's keyed positively in the marketplaces off of deregulation. And I don't love to kind of root for, obviously, exogenous events, but we know that risk comes back into the system, and that's part of the cadence of our world. So I take these things and I add them up. And I think the reality is that we form a strong picture for our business. And so I'm pumped. I'm excited for what's in store for the markets.
Billy Hult: And so the last piece of kind of secret sauce around how things will develop is ultimately going to be the return of good risk orientation into our world. And so I step back and I say, "A very good rates framework for activity going forward," kind of green light there. Continued cross-border global activity, green light there. Diversified equities exposure, green light there. And then a business environment that's keyed positively in the marketplaces off of deregulation. And I don't love to kind of root for, obviously, exogenous events, but we know that risk comes back into the system, and that's part of the cadence of our world. So I take these things and I add them up. And I think the reality is that we form a strong picture for our business. And so I'm pumped. I'm excited for what's in store for the markets.
Speaker #6: into And so I step our back say very and I good rates for activity going forward , There kind of light . green cross-border global activity .
Speaker #6: , continued Green light . Their diversified equities exposure their , green light , and business then a That's keyed positively in the environment .
Speaker #6: marketplaces off of deregulation and I don't love to . kind of You know root for obviously exogenous events . But we know that risk comes back into the system .
Speaker #6: And that's part of , you know , the cadence of our world . So I take these things and I add them up , you think the reality is , know , and I is that we form , you know , a strong a strong picture , you know , for our business .
Operator: I'm excited about Tradeweb's leadership role around all the things I just described. We're looking forward to a really good '26 on the heels of a very strong January and, obviously, very early stage, but a really strong start to February. So it's a good outcome for us and a good marketplace. Thanks for the question. Very helpful, Billy. Thank you. Yep. One moment for the next question. Our next question is coming from the line of Craig Siegenthaler of Bank of America. Your line is open. Good morning, Billy, Sara. Hope everyone's doing well. We had a question on AI. We know automation is a key component of your AiEX solution. But as you take a step back and look across the entire Tradeweb platform, can you talk about your utilization of AI and also differentiate between both generative AI and predictive AI models? Absolutely.
Billy Hult: I'm excited about Tradeweb's leadership role around all the things I just described. We're looking forward to a really good '26 on the heels of a very strong January and, obviously, very early stage, but a really strong start to February. So it's a good outcome for us and a good marketplace. Thanks for the question.
Speaker #6: And so I'm pumped . You know , I'm what's in store , you excited for know , for the markets . I'm trade role around about all the just described .
Speaker #6: things I . And we're Webb's looking forward a , you know , to a to really good 26 on the heels of a very strong January and obviously very early stage , but a really strong start to February .
Patrick Moley: Very helpful, Billy. Thank you.
Billy Hult: Yep.
Operator: One moment for the next question. Our next question is coming from the line of Craig Siegenthaler of Bank of America. Your line is open.
Speaker #6: it's a good So it's and a good marketplace . And thanks for the .
Speaker #5: Billy . Very helpful Thank
Speaker #7: Yeah .
Speaker #4: One moment for the you . next question . And our next question is coming from the line of Craig Inhaler of Bank of Your line America .
Craig Siegenthaler: Good morning, Billy, Sara. Hope everyone's doing well. We had a question on AI. We know automation is a key component of your AiEX solution. But as you take a step back and look across the entire Tradeweb platform, can you talk about your utilization of AI and also differentiate between both generative AI and predictive AI models? Absolutely.
Speaker #4: is open .
Speaker #8: Billy . Good morning Sarah . Hope everyone's doing well . We had a on AI we know you know , . question automation is a And , key component of your AI But as solution .
Speaker #8: you take a step the entire look across back and trade web platform , can you talk about your utilization of AI and also differentiate between both generative AI predictive AI models and
Operator: Great question. I'll make you kind of laugh for a quick second. As a kind of ex-English major, it's always like a pinch-me moment on an earnings call to kind of have a conversation about AI. It's kind of really fun for me. But my view and the company's view is always going to be shaped, I think, ultimately by pragmatism. You expect us to be, and we will be, always kind of commercially focused. We think about AI and how it's tightly linked, truthfully, to how we make money. It's always, from my perspective, very specifically been about this kind of transition from how we think about efficiency gains to ultimately the most important thing, which I think is effectiveness gains and, ultimately, what is that kind of client impact engine kind of thing. Those are really kind of important thoughts.
Billy Hult: Great question. I'll make you kind of laugh for a quick second. As a kind of ex-English major, it's always like a pinch-me moment on an earnings call to kind of have a conversation about AI. It's kind of really fun for me. But my view and the company's view is always going to be shaped, I think, ultimately by pragmatism. You expect us to be, and we will be, always kind of commercially focused. We think about AI and how it's tightly linked, truthfully, to how we make money. It's always, from my perspective, very specifically been about this kind of transition from how we think about efficiency gains to ultimately the most important thing, which I think is effectiveness gains and, ultimately, what is that kind of client impact engine kind of thing. Those are really kind of important thoughts.
Speaker #6: . And great I'll make you question . kind of quick second kind of ex English laugh for a major , it's always like me moment on an earnings call to kind of have a conversation about AI about , you know , so it's kind of really fun for me .
Speaker #6: you know , my But , and the company's always going view is shaped . I think to be by pragmatism view , you expect us to and we be will be always kind of commercially focused .
Speaker #6: We think about AI and how it's tightly linked . truthfully to You how we know , make money . And it's always , you know , from my perspective , specifically been about very this kind of transition from we think about how efficiency gains to ultimately the most important thing , which I think is like effective effectiveness gains and ultimately , what is that kind of impact engine kind of thing .
Operator: And so, as you know very well, we have this very deep, high-quality, real-time market data. From my perspective, that's the real strength of Tradeweb. Our proprietary data comes from running and operating kind of markets first and foremost. And so we see extensive executable pricing, RFQ response behavior, execution outcomes, and client decision-making across protocols and asset classes as key to all of this. We've always been built around providing, ultimately, more efficient workflow tools for our clients. And I think we would say clearly that AI is a natural extension of that. And so we, as an English major, again, with pride, I'll say we really employ a very deep bench now of the strongest kind of data scientists, the strongest minds inside of Tradeweb.
Billy Hult: And so, as you know very well, we have this very deep, high-quality, real-time market data. From my perspective, that's the real strength of Tradeweb. Our proprietary data comes from running and operating kind of markets first and foremost. And so we see extensive executable pricing, RFQ response behavior, execution outcomes, and client decision-making across protocols and asset classes as key to all of this. We've always been built around providing, ultimately, more efficient workflow tools for our clients. And I think we would say clearly that AI is a natural extension of that. And so we, as an English major, again, with pride, I'll say we really employ a very deep bench now of the strongest kind of data scientists, the strongest minds inside of Tradeweb.
Speaker #6: really kind of And those are important And so , thoughts . know as you very well , we have this very deep , high quality , like market data perspective , real strength of Tradeweb proprietary or data from running and operating kind of so we see foremost .
Speaker #6: extensive And executable , RFQ pricing behavior execution outcomes and client decision making across protocols and asset classes as key to all of this .
Speaker #6: You know, we've always been built around providing ultimately more efficient tools and workflow for our clients. And I think we would say clearly that a natural that.
Speaker #6: And so we , you AI is major , again , with pride , I'll say , you know , we we really very deep bench .
Operator: One of the things that we, I think, have done well, and Sara and I talk about this a lot, is the collaboration between those minds and our business. And they sit directly with our product team and working on helping, ultimately, deliver better analytics and smarter tools. And these are really important kind of behavior patterns, I think, for companies to do those kinds of integrations. And so on the predictive AI side, I would say we are kind of looking at our proprietary data sets to help unlock what we describe as the next frontier of electronification, something we find particularly valuable across how we would describe less liquid markets and larger notional trades. So that's a focus for us where pricing signals tend to be the weakest. And that's a kind of big area of focus.
Billy Hult: One of the things that we, I think, have done well, and Sara and I talk about this a lot, is the collaboration between those minds and our business. And they sit directly with our product team and working on helping, ultimately, deliver better analytics and smarter tools. And these are really important kind of behavior patterns, I think, for companies to do those kinds of integrations. And so on the predictive AI side, I would say we are kind of looking at our proprietary data sets to help unlock what we describe as the next frontier of electronification, something we find particularly valuable across how we would describe less liquid markets and larger notional trades. So that's a focus for us where pricing signals tend to be the weakest. And that's a kind of big area of focus.
Speaker #6: Now of strongest the kind of scientists , the strongest You know , inside of Tradeweb . And one of the things that we , I think have done well , and Sarah about minds .
Speaker #6: this a lot , the is collaboration those between and our business . And they sit with our product team and directly working helping ultimately deliver better , better analytics on and smarter important these are kind of and I talk tools .
Speaker #6: behavior And think , for do those kinds of patterns . integrations I and so on . know , on the The , you predictive AI side , I would say we are kind of looking at our proprietary data help unlock the next describe as like what we Electronification frontier , something we find particularly valuable across how we would of less liquid markets and larger notional trades .
Operator: I'll go back a little bit as we're talking about kind of AI or how we think about superintelligence. I make a point all the time, which is all intelligence is really, ultimately, about learning. And as a company, you have to be kind of continuously on this kind of learning journey, this journey about learning and getting better. And so one of the things I know that Sara and I talk about and our ex-com talks about a lot is the ability to keep learning. I think you have to be willing to make mistakes. You have to be willing to push things into new outcomes. And that's the mindset, ultimately, that a company needs to continue to move forward on this amazing new path around learning. We can all get smarter.
Billy Hult: I'll go back a little bit as we're talking about kind of AI or how we think about superintelligence. I make a point all the time, which is all intelligence is really, ultimately, about learning. And as a company, you have to be kind of continuously on this kind of learning journey, this journey about learning and getting better. And so one of the things I know that Sara and I talk about and our ex-com talks about a lot is the ability to keep learning. I think you have to be willing to make mistakes. You have to be willing to push things into new outcomes. And that's the mindset, ultimately, that a company needs to continue to move forward on this amazing new path around learning. We can all get smarter.
Speaker #6: So us , where pricing signals tend to be the that's weakest . And a kind of big area of focus . a that's And so I'll go back little bit as we're that's a about kind of , you know , focus for AI or how we think about like super intelligence , you know , I make a point all the time a , which is , you know All .
Speaker #6: intelligence is really ultimately about learning . And as a company , you have to kind of be on this kind of learning journey , this journey about learning and better getting .
Speaker #6: And so one of the I know things that and I talk Sarah our excom talks about a lot , is the ability to keep learning have to be .
Speaker #6: and to make mistakes I think you . You have to to push be willing things into new outcomes that's the . And mindset , ultimately , that a company needs to continue to move forward on this amazing new path around learning .
Operator: And I'm very excited for Tradeweb to play a very strong leadership role around how AI continues to be applied into the financial markets. Thanks a lot. One moment for the next question. The next question is coming from the line of Alexander Blostein of Goldman Sachs. Your line is open. Hey, Billy. Hey, Sara. Good morning, everybody. Sara, one for you. I was hoping you can talk us through how you're thinking about the interplay between Tradeweb's sort of annual expense growth trajectory and margins, so just taking the guidance you provided this morning. Obviously, the revenue backdrop started off really well this year. But as you sort of think about the goal for operating leverage for 2026, is that still the case if revenue moderates?
Billy Hult: And I'm very excited for Tradeweb to play a very strong leadership role around how AI continues to be applied into the financial markets. Thanks a lot.
Speaker #6: We can all get smarter. And I'm very excited for Tradeweb to play a very strong leadership role around how AI continues to be applied in the financial markets. Thanks.
Operator: One moment for the next question. The next question is coming from the line of Alexander Blostein of Goldman Sachs. Your line is open.
Speaker #6: Thanks a lot . And .
Speaker #4: One moment for the
Speaker #4: question And the next question is coming from the line . Alexander of boasting of into Goldman line is Sachs . Your open .
Speaker #4: question And the next question is coming from the line . Alexander of boasting of into Goldman line is Sachs . Your open
Alexander Blostein: Hey, Billy. Hey, Sara. Good morning, everybody. Sara, one for you. I was hoping you can talk us through how you're thinking about the interplay between Tradeweb's sort of annual expense growth trajectory and margins, so just taking the guidance you provided this morning. Obviously, the revenue backdrop started off really well this year. But as you sort of think about the goal for operating leverage for 2026, is that still the case if revenue moderates?
Speaker #9: morning everybody Sarah . Hey , Sarah . One for you . Good I was hoping you can talk us through how you thinking about the between interplay very tradeweb sort of annual expense growth trajectory and margins ?
Speaker #9: morning everybody Sarah . Hey , Sarah . One for you . Good I was hoping you can talk us through how you thinking about the between interplay very tradeweb sort of annual expense growth trajectory and .
Speaker #9: So just taking the guidance you provided this morning , obviously , the revenue backdrop started off this year . But as you sort of think about the goal for operating leverage for 2026 , is that still the case ?
Operator: And if it does moderate, maybe talk a little bit about the flex you have in the expenses in order to still drive positive operating leverage. Thanks, Alex. Great question. I think when we talk about operating leverage and margins, expenses, I think it's actually a really important reminder in terms of what's our top priority. And our top priority is investing for revenue growth through various cycles. And so when you think about that, the way we've designed our expense base is to support that and to deliver and be able to deliver positive operating leverage across all these different revenue environments and through the cycles. And so what does that really mean? That means when you think about our expense base, roughly 55%, so a little bit more than half, is fixed. And the remainder, so about 45%, a meaningful portion, are variable or discretionary.
Alexander Blostein: And if it does moderate, maybe talk a little bit about the flex you have in the expenses in order to still drive positive operating leverage.
Sara Furber: Thanks, Alex. Great question. I think when we talk about operating leverage and margins, expenses, I think it's actually a really important reminder in terms of what's our top priority. And our top priority is investing for revenue growth through various cycles. And so when you think about that, the way we've designed our expense base is to support that and to deliver and be able to deliver positive operating leverage across all these different revenue environments and through the cycles. And so what does that really mean? That means when you think about our expense base, roughly 55%, so a little bit more than half, is fixed. And the remainder, so about 45%, a meaningful portion, are variable or discretionary.
Speaker #9: If revenue moderates—and if it does moderate—maybe talk a little bit about the flex you have in the expenses in order to drive positive operating leverage?
Speaker #9: still
Speaker #10: Thanks , Alex . Great question . You know , I when we think operating leverage and margins , expenses , I think actually a really important it's reminder in of what's our top and priority terms our top priority is investing for revenue growth through talk about various cycles .
Speaker #10: And when you think about that, the way we've designed our expense base is to support that and to deliver and be able to be positive operating across all these different leverage environments.
Speaker #10: And through the cycles . revenue And so like , what does that really mean ? That means when you think about our expense base , roughly 55% .
Operator: So, variable being things that automatically right-size with revenues, commissions, performance-driven compensation, and exchange fees. Discretionary being things more like marketing, T&E, the pace of hiring, philanthropy, and things that are within our control. That balance allows us to maintain operating leverage through different environments. We can do things in both directions. We can accelerate the pace of spend, and we can decelerate the pace of spend. We can do that with the flexibility while still protecting, which I think is really that first priority, investment strategies that are often multi-year that drive long-term revenue growth through the cycle. So, obviously, as the size of the company has scaled and as our revenues have scaled, there's also natural operating leverage that falls to the bottom line. Billy talked about being pragmatic earlier. I would say all of this is great. Flexibility is great as a theoretical point.
Sara Furber: So, variable being things that automatically right-size with revenues, commissions, performance-driven compensation, and exchange fees. Discretionary being things more like marketing, T&E, the pace of hiring, philanthropy, and things that are within our control. That balance allows us to maintain operating leverage through different environments. We can do things in both directions. We can accelerate the pace of spend, and we can decelerate the pace of spend. We can do that with the flexibility while still protecting, which I think is really that first priority, investment strategies that are often multi-year that drive long-term revenue growth through the cycle. So, obviously, as the size of the company has scaled and as our revenues have scaled, there's also natural operating leverage that falls to the bottom line. Billy talked about being pragmatic earlier. I would say all of this is great. Flexibility is great as a theoretical point.
Speaker #10: So a little bit more than half is fixed . remainder And the meaningful are variable or discretionary . portion variable being like things that So rightsize with revenues , commissions , performance driven compensation , exchange fees being things more like , discretionary The pace of hiring , philanthropy , things that are within our control and that balance allows us marketing .
Speaker #10: to leverage operating maintain through different And we can environments . do things in both directions . We can accelerate the pace of spend , and we decelerate the pace of We spend .
Speaker #10: Flexibility—that, with the do protecting, can, which I really think is first priority. Investment strategies that often are multiyear, are long, drive revenue term through the cycle.
Speaker #10: And obviously, as the size of the company has scaled and as our revenues have scaled, there's some natural operating leverage that falls to the bottom line.
Operator: But the reality is, I think we've already demonstrated our willingness and ability to execute on that flexibility. So if you think back and you got to think back a little bit. But if you think back to the first half of 2023, the environment was such that the top-line revenue for Tradeweb grew about 5%. And even in that environment, we paced expenses and were able to deliver positive margins, so 43 basis points of margin expansion for EBITDA. Contrast that with just a year later, in 2024, you'll remember the top-line grew 29%. We were able to accelerate our investments and expenses significantly, and therefore, margin expansion was around 90 basis points. Last year, same thing. You had a really different environment in the first half of the year and the second half of the year. So I think we've proven our ability and flexibility.
Sara Furber: But the reality is, I think we've already demonstrated our willingness and ability to execute on that flexibility. So if you think back and you got to think back a little bit. But if you think back to the first half of 2023, the environment was such that the top-line revenue for Tradeweb grew about 5%. And even in that environment, we paced expenses and were able to deliver positive margins, so 43 basis points of margin expansion for EBITDA. Contrast that with just a year later, in 2024, you'll remember the top-line grew 29%. We were able to accelerate our investments and expenses significantly, and therefore, margin expansion was around 90 basis points. Last year, same thing. You had a really different environment in the first half of the year and the second half of the year. So I think we've proven our ability and flexibility.
Speaker #10: You know , Billy being talked about pragmatic earlier . I would all of this is say great . is great . As a Flexibility theoretical point .
Speaker #10: But the reality is , I already think we've demonstrated our willingness and execute on that flexibility . ability to So if you think back and you got to think back a little bit , but if you think back to the first half of 2023 , the environment such that the was line revenue for Tradeweb grew about 5% .
Speaker #10: And that top environment , even in we paced expenses and to were able deliver positive So 43 basis points of margin expansion for EBITDA margins .
Speaker #10: with just a year later in 2024 , you'll remember the top line grew 29% . We were able to accelerate our investments in expenses significantly and therefore expansion margin was around 90 basis points last year .
Operator: But most importantly, our strategic lens is on continuing to invest, continuing to innovate, and having that flexibility to do it when our clients need it, which means doing it through the cycles. But thanks for the question. Hopefully, that helps. It does. Thank you. One moment for the next question. And our next question is coming from the line of Ken Worthington of J.P. Morgan. Your line is open. Hi. Good morning. And thanks for taking the question. My question's on mortgage. So Tradeweb's mortgage business was one of its slower-growing businesses in 2014-2025. As one of Tradeweb's most dominant legacy and most electronic markets, how do you think about the outlook for mortgage trading in 2026, particularly if primary and refi activity rebounds?
Sara Furber: But most importantly, our strategic lens is on continuing to invest, continuing to innovate, and having that flexibility to do it when our clients need it, which means doing it through the cycles. But thanks for the question. Hopefully, that helps.
Speaker #10: Same thing . You had a really different environment in the first half of the year year . So I and the second half of the think we've proven our and ability but flexibility , most importantly , like our strategic lens is on continuing to continuing invest , to innovate and to flexibility When our do it .
Alexander Blostein: It does. Thank you.
Speaker #10: clients having that need it , which doing it means through the cycles . But question . thanks for the Hopefully that helps
Operator: One moment for the next question. And our next question is coming from the line of Ken Worthington of J.P. Morgan. Your line is open.
Speaker #10: .
Speaker #9: does .
Speaker #7: Thank you
Speaker #4: the next One moment for question
Ken Worthington: Hi. Good morning. And thanks for taking the question. My question's on mortgage. So Tradeweb's mortgage business was one of its slower-growing businesses in 2014-2025. As one of Tradeweb's most dominant legacy and most electronic markets, how do you think about the outlook for mortgage trading in 2026, particularly if primary and refi activity rebounds?
Speaker #4: . It next question is coming from the And our line of Ken JP Your Morgan . Worthington of line is open .
Speaker #11: morning and Good thanks for taking the question . My question is Hi . on So mortgage . Tradeweb mortgage was one of its slower in one of Tradeweb fortune 25 , as growing most legacy dominant you think electronic about markets .
Operator: And then maybe as a second part to this, are the innovations that we're seeing at firms like ICE and others in mortgage tech, are these innovations possibly going to have an impact, positive impact, on your business over time? What are you sort of thinking there? Hey, Ken. I feel like you almost complimented and insulted us at the same time with that very excellent question. And it's always great to hear your voice. I mean, you've known us for a while, and obviously, you know me as a CEO. But to make you laugh for a quick second, I'm also a father too.
Ken Worthington: And then maybe as a second part to this, are the innovations that we're seeing at firms like ICE and others in mortgage tech, are these innovations possibly going to have an impact, positive impact, on your business over time? What are you sort of thinking there?
Speaker #11: the How do outlook for mortgage trading in 2026 , particularly if primary and activity And then rebounds ? maybe as a second part to this are the innovations that we're seeing at firms like Ice and others in mortgage tech .
Speaker #11: these Are innovations possibly going to have an impact , positive on your business over impact are you sort time ? of thinking there What
Billy Hult: Hey, Ken. I feel like you almost complimented and insulted us at the same time with that very excellent question. And it's always great to hear your voice. I mean, you've known us for a while, and obviously, you know me as a CEO. But to make you laugh for a quick second, I'm also a father too.
Speaker #6: Hey ,
Speaker #6: Ken feel ? like you almost complimented and insulted us at the same time with that very excellent question . And it's always great to hear your mean , voice .
Speaker #6: you've known us for for I a while , and obviously you as a know me as a CEO , but to make you laugh for a quick second , I'm father also a to us .
Operator: And so you also, I think, understand very well that expression that all of us parents have, which is kind of like all of our children are equally smart, all of our children are the most beautiful, we love all our children the same, all of our children are our favorite children. I think there's a possibility that the mortgage business might be my actual favorite child, which I haven't told anyone that yet until right this second, because in a lot of ways, it kind of represents some of the best things about the company for a long time. It's the most electronic market that we have. It's the market that we have the highest market share in. It's the first market that we were in to have what I would describe to you as something very important, which is real risk flow.
Billy Hult: And so you also, I think, understand very well that expression that all of us parents have, which is kind of like all of our children are equally smart, all of our children are the most beautiful, we love all our children the same, all of our children are our favorite children. I think there's a possibility that the mortgage business might be my actual favorite child, which I haven't told anyone that yet until right this second, because in a lot of ways, it kind of represents some of the best things about the company for a long time. It's the most electronic market that we have. It's the market that we have the highest market share in. It's the first market that we were in to have what I would describe to you as something very important, which is real risk flow.
Speaker #6: so you also , I think And well like , understand very expression that us parents have , which is like , kind of you know , all of our children are smart .
Speaker #6: equally children All of our are the most beautiful . We love all our children the same . All of children are favorite children there's a .
Speaker #6: possibility that , the mortgage business might be I think my favorite actual , which I haven't anyone that yet until right child this second .
Speaker #6: Because lot of in a ways , it kind of represents some of things about the the best company . For a long time .
Speaker #6: the , It's you know , electronic that we market have market that we have . the It's the highest . You know , in share .
Speaker #6: It's the market first market that we in to have . What I were as something describe to you important , which is like like very real risk flow .
Operator: We talk about risk all of the time, the elusive risk and credit. The mortgage market, I think, for a bunch of reasons, one of which was, Ken, the ethos of kind of how mortgage bankers kind of dealt in the market, was always very comfortable trading real risk electronically in comp. Those are the kinds of characteristics that play very well to electronified marketplaces. Then it was the first market that we were in that actually we wound up kind of expanding into wholesale. It was the starting point for us to ultimately move into the wholesale side of the market and build out these really important mirrored kind of liquidity pools. It's got the kind of favorite childness around all of those things. But the reality is, which you framed properly, is that that market can go sleepy at times.
Billy Hult: We talk about risk all of the time, the elusive risk and credit. The mortgage market, I think, for a bunch of reasons, one of which was, Ken, the ethos of kind of how mortgage bankers kind of dealt in the market, was always very comfortable trading real risk electronically in comp. Those are the kinds of characteristics that play very well to electronified marketplaces. Then it was the first market that we were in that actually we wound up kind of expanding into wholesale. It was the starting point for us to ultimately move into the wholesale side of the market and build out these really important mirrored kind of liquidity pools. It's got the kind of favorite childness around all of those things. But the reality is, which you framed properly, is that that market can go sleepy at times.
Speaker #6: We talk all risk like time . the risk and credit , the elusive mortgage market . I about bunch of reasons , one of which for a was , Ken , like the ethos of how mortgage kind of bankers kind of in the dealt was market very comfortable trading risk .
Speaker #6: Electronically in comp . And those are the of kinds that play well to very electronic marketplaces . And then it was the first market that in that characteristics actually , we wound up kind of expanding into it was wholesale .
Speaker #6: it the starting So us ultimately move into the to side market . out And we were of the important kind So liquidity it's got the pools .
Speaker #6: of favorite child things . But the those reality is what you what you framed properly is that that go , you know , sleepy can be a sleepy times .
Operator: It can be a sleepy market depending on where rates are. And then when it wakes up, it can wind up being one of the sort of two or three most important kind of coupons, ultimately, in global markets. So there's very big different levels of activity depending on where we are in the rate cycle. I think the reality is we are kind of out of sleepy zone. We have primary issuance increasing. We have actively managing kind of pipeline risk, adjustments around duration and convexity exposure kind of happening. And so the market is, without question, kind of coming to life. We also, as you know, I think, had pretty big headlines in January with the GSE commentary coming out of the administration. The administration wants lower mortgage rates, and they tend to get sometimes what they want.
Billy Hult: It can be a sleepy market depending on where rates are. And then when it wakes up, it can wind up being one of the sort of two or three most important kind of coupons, ultimately, in global markets. So there's very big different levels of activity depending on where we are in the rate cycle. I think the reality is we are kind of out of sleepy zone. We have primary issuance increasing. We have actively managing kind of pipeline risk, adjustments around duration and convexity exposure kind of happening. And so the market is, without question, kind of coming to life. We also, as you know, I think, had pretty big headlines in January with the GSE commentary coming out of the administration. The administration wants lower mortgage rates, and they tend to get sometimes what they want.
Speaker #6: Market, depending on where rates are at, you know, it wakes are. Then when it can up, wind, one of, you know, sort of 2 or 3.
Speaker #6: Most important kind of coupons . Ultimately , in global markets . So there's very big different levels we are on where in depending rate cycle , in , in the the .
Speaker #6: Most important kind of coupons . Ultimately , in global markets . So there's very big different levels we are on where in depending rate cycle , in , in the the the I think the reality is we are kind of out of sleepy zone .
Speaker #6: primary We have issuance increasing . We actively have managing kind of pipeline adjustments risk duration and around convexity exposure , kind of happening .
Speaker #6: And so the market is without question , kind of , you know , coming to life . also , as you We know , I had , you big headlines in you know , with the GSE commentary , you know , coming out of the administration , you know , the know , pretty administration wants lower rates .
Speaker #6: And so the market is without question , kind of , you know , coming to life . also , as you We know , I had , you big headlines in you know , with the GSE commentary , you know , coming out of the administration , you know , the know , pretty administration wants lower mortgage And they , you they tend know , sometimes what they want there was a .
Operator: And so there was a material pickup in activity in January. Our revenues were up 15%. I think the outlook for that business is quite strong, particularly if we break lower on rates. And I think the future of it is going to have, ultimately, I think, and very importantly, a larger group of players as participants. If you really think about it, it's kind of interesting. The systematic players that are very strong companies, as you know, Ken, very well in adjacent marketplaces like government bonds, have largely, I think, because of the cycles that the business goes through, have largely stayed out of the mortgage market. But we see those types of companies, ultimately, coming into that market. And from our perspective, I think that kind of pushes things towards a more velocity-driven marketplace, which is good for business.
Billy Hult: And so there was a material pickup in activity in January. Our revenues were up 15%. I think the outlook for that business is quite strong, particularly if we break lower on rates. And I think the future of it is going to have, ultimately, I think, and very importantly, a larger group of players as participants. If you really think about it, it's kind of interesting. The systematic players that are very strong companies, as you know, Ken, very well in adjacent marketplaces like government bonds, have largely, I think, because of the cycles that the business goes through, have largely stayed out of the mortgage market. But we see those types of companies, ultimately, coming into that market. And from our perspective, I think that kind of pushes things towards a more velocity-driven marketplace, which is good for business.
Speaker #6: pickup in And so material in January activity were up , you know , 15% , January , I think the outlook for that .
Speaker #6: quite is to get , particularly if we break lower on rates . Our think the going to future And I have very think , and ultimately , I larger group importantly , a of as players participants , if you really think about it , kind of interesting , you know , the the systematic players that very strong are , as you know , companies Ken , very in adjacent well marketplaces like government have bonds , I largely , think , because of the of cycles that the business the goes through have stayed out of the largely of the mortgage .
Speaker #6: we see market But companies ultimately coming into that market . And from our those perspective , I think that kind of pushes things .
Operator: I follow pretty closely things that Jeff does on the mortgage servicing side. I think he's been kind of right on his thesis all along. Tough to time it, I would say. But ultimately, as he makes origination and he makes the servicing aspect of the marketplace more efficient, those become good aspects of secondary trading. And we feel like we'll ultimately also be, ironically, the beneficiary of that as well. So in an interesting way, kind of rooting for him on the efficiency play that he's been working on. And we think directionally, he's been right in terms of that area of the business needing a step up in technology. But I appreciate the question, and thanks very much, Ken. Great. Thank you. One moment for the next question. And our next question will be coming from the line of Alex Kramm of UBS. Your line is open. Hey.
Billy Hult: I follow pretty closely things that Jeff does on the mortgage servicing side. I think he's been kind of right on his thesis all along. Tough to time it, I would say. But ultimately, as he makes origination and he makes the servicing aspect of the marketplace more efficient, those become good aspects of secondary trading. And we feel like we'll ultimately also be, ironically, the beneficiary of that as well. So in an interesting way, kind of rooting for him on the efficiency play that he's been working on. And we think directionally, he's been right in terms of that area of the business needing a step up in technology. But I appreciate the question, and thanks very much, Ken.
Speaker #6: You know, towards a driven marketplace, which is good for business. I follow pretty closely on things that Jeff is servicing on the side.
Speaker #6: the mortgage I think he's closely kind of been right on his thesis all along . Tough to time . would It . I say .
Speaker #6: But he makes , you ultimately , as , origination and the he makes servicing aspect of the efficient marketplace more become good , those aspects of , you know , trading .
Speaker #6: secondary And we like we'll feel ultimately also be ironically , you know , the beneficiary of that as well . So in an interesting way , kind of rooting for him on the , you know , efficiency play been working that he's on .
Speaker #6: And we think terms of that of the area business needing a step up in technology appreciate the question and thanks very .
Ken Worthington: Great. Thank you.
Operator: One moment for the next question. And our next question will be coming from the line of Alex Kramm of UBS. Your line is open.
Speaker #6: much , you
Speaker #6: Ken .
Speaker #7: Thank
Speaker #7: .
Speaker #7: . next
Alex Kramm: Hey.
Speaker #4: question One moment for the . And our next will be But I from the coming question line of Kramm of Your line is UBS .
Operator: Good morning, everyone. Billy, I saw you on a panel on tokenization a few weeks back. Sounds like you're doing a lot on that topic, a lot of initiatives. So maybe today, can you talk a little bit more specifically what you're doing and maybe some of the timing of those initiatives that you have going right now? Also, since I'm sure there's a lot going on, where do you actually see the biggest revenue opportunities coming out of this? And then on the other side of the coin, because I need to ask. Since you're kind of pretty critical connecting buy and sell side today, as those underlying markets potentially change here and get digitized or tokenized, how do you ensure that you're not going to get disintermediated as people may be looking for new rails, etc.? Yeah. All good questions, Alex. Appreciate it very much.
Alex Kramm: Good morning, everyone. Billy, I saw you on a panel on tokenization a few weeks back. Sounds like you're doing a lot on that topic, a lot of initiatives. So maybe today, can you talk a little bit more specifically what you're doing and maybe some of the timing of those initiatives that you have going right now? Also, since I'm sure there's a lot going on, where do you actually see the biggest revenue opportunities coming out of this? And then on the other side of the coin, because I need to ask. Since you're kind of pretty critical connecting buy and sell side today, as those underlying markets potentially change here and get digitized or tokenized, how do you ensure that you're not going to get disintermediated as people may be looking for new rails, etc.?
Speaker #4: .
Speaker #12: Hey , good everyone morning . Billy , saw you on a I tokenization a few weeks back . doing a like lot on that topic .
Speaker #12: Hey , good everyone morning . Billy , saw you on a I tokenization a few weeks back . doing a Sounds lot of initiatives .
Speaker #12: A So maybe you're talk a little bit today , can you you're more of the doing and maybe some specifically what timing you have going going right now initiatives that ?
Speaker #12: know , since I'm sure there's a lot going Also , you on , where do you actually see the biggest revenue opportunities coming out of this ?
Speaker #12: And then on the other side of because I need to the coin , of those since ask , you're pretty kind of critical , connecting buy and side today sell those , you know , underlying markets change and get potentially tokenized , how do you ensure that you're not going to get digitized or disintermediated as you know , be looking for new rails , people may etc.
Billy Hult: Yeah. All good questions, Alex. Appreciate it very much.
Operator: As I'm sure you heard me kind of on the panel confusing everyone, just for a quick second, I'm going to actually kick this to Sara, who's been spending a ton of time on this. And I'm really looking forward to kind of hearing you, Sara, kind of describe this perfectly. So you take it. Yeah. I'll start just kind of where you left off, which is a little bit of the big picture and how do we think about disintermediation. On tokenization, we don't really view it as disintermediating what we do. We think of it as an infrastructure upgrade. It's not replacing market structure and, in particular, doesn't really impact price discovery. As we see things evolve, we think people still need platforms to connect buyers and sellers. They need to be supported in terms of price discovery.
Billy Hult: As I'm sure you heard me kind of on the panel confusing everyone, just for a quick second, I'm going to actually kick this to Sara, who's been spending a ton of time on this. And I'm really looking forward to kind of hearing you, Sara, kind of describe this perfectly. So you take it.
Speaker #12: ?
Speaker #6: Yeah . . Appreciate it Alex much , as I'm sure you heard me questions . panel everyone . Let me . just for a quick Confusing second , I'm going to I'm going to actually kick this to this to spending a ton of time on this and really I'm kind of hearing you , looking forward to Sarah , kind of describe this like , you take it .
Sara Furber: Yeah. I'll start just kind of where you left off, which is a little bit of the big picture and how do we think about disintermediation. On tokenization, we don't really view it as disintermediating what we do. We think of it as an infrastructure upgrade. It's not replacing market structure and, in particular, doesn't really impact price discovery. As we see things evolve, we think people still need platforms to connect buyers and sellers. They need to be supported in terms of price discovery.
Speaker #10: You
Speaker #10: start I'll Alex ,
Speaker #10: kind of where you left off , which is a little bit of the big picture . do we think disintermediation know , about tokenization ?
Speaker #10: We don't disintermediating . What we really view And , you know , how do , we it upgrade . as an Its not replacing market think of .
Speaker #10: structure And in perfectly . particular doesn't really price impact discovery . So we see things as we think people still need platforms that connect sellers .
Operator: They need to manage that risk transfer and, importantly, deeply integrate into institutional workflows, which are things that we think we are still well-positioned to do given how long we've been investing in this space and can do it, whether it be traditional rails or on these digitized, more modern rails. What we do see tokenization impacting are things like settlement and collateral mobility. And I know, Billy, you talked about this on the panel, which we think frees up capital, increases velocity of trading over time. We've talked about potential for 24/7 trading before, all positives from our seat in terms of the big picture. More specific to us, and Billy and I and Chris Bruner here have been spending a lot of time on this. We've been at this for a while.
Sara Furber: They need to manage that risk transfer and, importantly, deeply integrate into institutional workflows, which are things that we think we are still well-positioned to do given how long we've been investing in this space and can do it, whether it be traditional rails or on these digitized, more modern rails. What we do see tokenization impacting are things like settlement and collateral mobility. And I know, Billy, you talked about this on the panel, which we think frees up capital, increases velocity of trading over time. We've talked about potential for 24/7 trading before, all positives from our seat in terms of the big picture. More specific to us, and Billy and I and Chris Bruner here have been spending a lot of time on this. We've been at this for a while.
Speaker #10: They need to be in terms of price it as They need to infrastructure transfer and deeply importantly , buyers and into institutional workflows , things that we which are we are still well positioned to do given we've been investing in this space and how long can do it , whether it be traditional rails or on digitized , more modern rails , what we see tokenization think settlement collateral mobility .
Speaker #10: I know , Bill , you talked about And this on the we think which capital , increases velocity of trading over time . know , You and we've talked potential for 24 over seven trading all from our positives picture in terms specific to us .
Speaker #10: , more Billy and know , Brunner here seat We've been at this for a while . about I and So of the big for the three years , last and I would add , you know , with my CFO hat on in a remarkably efficient this .
Operator: So for the last three years, and I would add with my CFO hat on, in a remarkably capital-efficient way, we've built out a leadership position, whether it be digital assets, blockchain networks, or tokenization. Today, I'll give you one specific example. We feel like we're positioned to be the premier venue for tokenized trading for US Treasuries. We've talked about this, I think, on other earnings calls. We've completed multiple rounds of fully on-chain repo trades utilizing tokenized Treasuries as collateral versus stablecoins with the notion of expanding for other forms of collateral like digital cash. So that's already been in the works since Q3 of last year. More recently, which I think is interesting and a little bit to your timing point, we think we're sitting in a unique position during what you would argue might be a milestone year.
Sara Furber: So for the last three years, and I would add with my CFO hat on, in a remarkably capital-efficient way, we've built out a leadership position, whether it be digital assets, blockchain networks, or tokenization. Today, I'll give you one specific example. We feel like we're positioned to be the premier venue for tokenized trading for US Treasuries. We've talked about this, I think, on other earnings calls. We've completed multiple rounds of fully on-chain repo trades utilizing tokenized Treasuries as collateral versus stablecoins with the notion of expanding for other forms of collateral like digital cash. So that's already been in the works since Q3 of last year. More recently, which I think is interesting and a little bit to your timing point, we think we're sitting in a unique position during what you would argue might be a milestone year.
Speaker #10: , we've built out leader leadership capital position , whether it be digital assets , blockchain or tokenization a . And and today I'll give you one specific example .
Speaker #10: networks like we're premier positioned to be the venue for tokenized trading for US treasuries . You We feel talked about this I think on other calls .
Speaker #10: We've completed multiple fully on-chain rounds of trading utilizing tokenized earnings as collateral and versus stablecoins, with the trades expanding to include other notions of collateral like cash.
Speaker #10: digital So that's already been works since forms of the third quarter of year . More recently , which I think is know , we've to your And you little bit think we we're sitting in a unique during what position you would might be a milestone .
Operator: The SEC delivered a no-action letter to DTCC this December. Tradeweb is positioned as the non-equity venue, really leading the charge for their pilot program where trillions of assets that sit at DTCC will now be tokenized on an opt-in basis from their clients. So if you think about what that means, that program can launch at the second half of this year. That opens up a real opportunity. We think tokenized Treasuries, given what we've already put into the market, will be a place to start, and from there, we'll grow. I don't think anything changes overnight. Billy and I talk about that. We think clients, as we know better than anyone, take time to change. We do see interest. But I think the reality is the tokenized rails, digitization, and blockchain will operate side by side with a lot of traditional rails in the marketplace.
Sara Furber: The SEC delivered a no-action letter to DTCC this December. Tradeweb is positioned as the non-equity venue, really leading the charge for their pilot program where trillions of assets that sit at DTCC will now be tokenized on an opt-in basis from their clients. So if you think about what that means, that program can launch at the second half of this year. That opens up a real opportunity. We think tokenized Treasuries, given what we've already put into the market, will be a place to start, and from there, we'll grow. I don't think anything changes overnight. Billy and I talk about that. We think clients, as we know better than anyone, take time to change. We do see interest. But I think the reality is the tokenized rails, digitization, and blockchain will operate side by side with a lot of traditional rails in the marketplace.
Speaker #10: The SEC delivered action letter to DTCC this year and Tradeweb is repo non-Equity non-equity venue . Really leading the charge for the pilot a no assets trillions of that will DTCC tokenized on opt in their .
Speaker #10: basis from And we think , you know , tokenized treasuries , we've already given what put into the will be a place to market , start .
Speaker #10: if you think about And so what sit at program can launch at the second half of this year , that opens that up a real opportunity .
Speaker #10: And from there , we'll grow . I don't think anything overnight . You know , Billy and I talk that . clients clients as know about anyone , take we time to change .
Speaker #10: interest . But I do see better than reality is think the tokenized rails blockchain will operate side with a lot of traditional marketplace .
Operator: We think we can bridge that quite well for clients. As a result, I think from a revenue opportunity, it's early to say exactly how it plays out, but we see opportunities to drive revenue in our traditional trading business as well as new opportunities given our leadership position on some of these networks, developing apps, and bringing other market participants, given our institutional and dealer network, onto some of these digitized rails. And I think that's spot on, Sara. Then, for a quick second, Alex, kind of almost tying your question a little bit in an interesting way back to kind of what Ken was asking about, if you just think about for one second just about the concept of, obviously, the guardrails of collateral management and ultimately problem-solving around kind of settlement.
Sara Furber: We think we can bridge that quite well for clients. As a result, I think from a revenue opportunity, it's early to say exactly how it plays out, but we see opportunities to drive revenue in our traditional trading business as well as new opportunities given our leadership position on some of these networks, developing apps, and bringing other market participants, given our institutional and dealer network, onto some of these digitized rails.
Speaker #10: And can rails in the for clients . And as well a quite result , I think from a revenue it's opportunity , say how it exactly we see plays out .
Speaker #10: Opportunities to both drive revenue in our traditional trading channels, as well as new opportunities, lead to a leadership position on some of these networks, apps, and other market participants.
Billy Hult: And I think that's spot on, Sara. Then, for a quick second, Alex, kind of almost tying your question a little bit in an interesting way back to kind of what Ken was asking about, if you just think about for one second just about the concept of, obviously, the guardrails of collateral management and ultimately problem-solving around kind of settlement.
Speaker #10: Given our , developing institutional and dealer network onto some of these rails . digitized
Speaker #6: quick second , Alex , kind of like almost like tying , you know , your question a little bit in an Back to kind of interesting way .
Speaker #6: what was Ken asking about . you just think about Like , if one second , just for one , concept about the you know , the obviously , Sarah .
Operator: I was talking about my favorite child before, the mortgage market, which has, in a lot of ways, within the fixed-income complex the most onerous settlement cycle. I think that settlement cycle, in a lot of ways, is one of the reasons why the types of entities that have been performing exceptionally well in other markets have tended to either stay away from or have a lower impact in that market. For sure, as we see the continued advancement of blockchain, and we've talked a lot about our partnership with Canton, as we see that continued advancement there, we've identified the mortgage market as one of those businesses where, from our perspective, a great commercial outcome would be onboarding more participants. We see a streamlined settlement process as a very important outcome there.
Billy Hult: I was talking about my favorite child before, the mortgage market, which has, in a lot of ways, within the fixed-income complex the most onerous settlement cycle. I think that settlement cycle, in a lot of ways, is one of the reasons why the types of entities that have been performing exceptionally well in other markets have tended to either stay away from or have a lower impact in that market. For sure, as we see the continued advancement of blockchain, and we've talked a lot about our partnership with Canton, as we see that continued advancement there, we've identified the mortgage market as one of those businesses where, from our perspective, a great commercial outcome would be onboarding more participants. We see a streamlined settlement process as a very important outcome there.
Speaker #6: of collateral and ultimately solving problem kind settlement . around was I talking of the market , which And lot of ways , what within the child of income know , the you fixed onerous mortgage complex , .
Speaker #6: , settlement cycle You know . And I think settlement that most a lot cycle and of ways is one of the why reasons , you know , there are , you types know , the of that have been performing exceptionally well entities markets , before tended either stay away have a to lower from or impact in that market .
Speaker #6: , settlement cycle You know . And I think settlement that most a lot cycle and of ways is one of the why reasons , you know , there are , you types know , the of that have been performing exceptionally well entities markets , before tended either stay away have a to lower from or impact in that And for as you know , we continued of , of blockchain , and we've talked a lot about partnership with canton , as we the advancement there , we've identified the , you know , the mortgage market those where from our businesses perspective , commercial outcome a great would be onboarding more participants .
Operator: So that's an area of focus and attention for us that has a good commercial outcome. And good to hear your voice, Alex. Thanks. Oh, thank you. Yeah. Thank you. One moment for the next question. And the next question will be coming from the line of Tyler Muller of William Blair. Your line is open. Hi. I'm on for Jeff Schmidt. We had one question on share buybacks given the strength of the quarter in January and new authorization. So the stock's down a fair amount over the last six months. I think it's now trading near the lowest PE since going public. Is there potential for you to increase your buybacks at all? Thanks, Jeff. We're definitely giving more thoughts to buybacks.
Billy Hult: So that's an area of focus and attention for us that has a good commercial outcome. And good to hear your voice, Alex. Thanks.
Speaker #6: And we see a settlement process as one of very streamlined important outcome . There . So that's an area of of focus and attention that has a good commercial outcome for us and voice .
Alex Kramm: Oh, thank you.
Billy Hult: Yeah.
Operator: Thank you. One moment for the next question. And the next question will be coming from the line of Tyler Muller of William Blair. Your line is open.
Speaker #6: hear your good to Alex . Thanks . Yeah
Speaker #4: Thank you . question next One moment for the and
Tyler Muller: Hi. I'm on for Jeff Schmidt. We had one question on share buybacks given the strength of the quarter in January and new authorization. So the stock's down a fair amount over the last six months. I think it's now trading near the lowest PE since going public. Is there potential for you to increase your buybacks at all?
Speaker #4: question will from the line of be coming Tyler Miller the next of Blair . Your line . open is . Hey .
Speaker #13: for Jeff I'm on Schmidt . We had one question on buybacks . share so your fair amount over the last six it's now here near the lowest P since going public .
Sara Furber: Thanks, Jeff. We're definitely giving more thoughts to buybacks.
Speaker #13: Is potential for you to there increase your buybacks at all .
Operator: I think you just talked about our positioning and view of the forward market and the macro environment and our business performance, not only in January, but that momentum continuing in February. We remain confident in what we can drive and deliver. We do think that you've seen the stock dislocate from some of those fundamentals. You've already seen us, and I think you're aware of this. You've already seen us be more aggressive. In Q4 and through January, we've repurchased about $150 million of stock, and the board authorized an additional $500 million plan. We think we have the flexibility to continue to do it. I think from our seat, it's one piece of our capital allocation framework. It's one that we definitely have in our arsenal.
Sara Furber: I think you just talked about our positioning and view of the forward market and the macro environment and our business performance, not only in January, but that momentum continuing in February. We remain confident in what we can drive and deliver. We do think that you've seen the stock dislocate from some of those fundamentals. You've already seen us, and I think you're aware of this. You've already seen us be more aggressive. In Q4 and through January, we've repurchased about $150 million of stock, and the board authorized an additional $500 million plan. We think we have the flexibility to continue to do it. I think from our seat, it's one piece of our capital allocation framework. It's one that we definitely have in our arsenal.
Speaker #10: Thanks , Jeff . giving more We're thoughts to buybacks . You know I you just think talk about our positioning and view of the forward market and the macro environment and our business performance .
Speaker #10: Not
Speaker #1: January , but that continuing in
Speaker #1: February remain confident in what . can drive Only in and . And we So we think do that you've the stock dislocate from some of those You've seen already us .
Speaker #1: you're aware of fundamentals . seen us be aggressive . more And I You've the fourth quarter and already through January , we've So in repurchased seen $150 million of about And the board authorized an additional stock .
Speaker #1: you're aware of fundamentals . seen us be aggressive . more And I You've the fourth quarter and already through January , we've So in repurchased seen $150 million of about And the board authorized an additional $500 million plan .
Speaker #1: think we flexibility to continue to do it . I think from our seat . one piece of our capital allocation It's framework . So definitely have in our But we arsenal .
Operator: But we also feel quite strongly that we have a lot of opportunity to grow the business organically. We have the opportunity to pursue inorganic investments and M&A. And obviously, share repurchases, particularly when the stock dislocates from what we think is our fundamental growth opportunity, we'll use that tool as well. And thank you. Thank you. One moment for the next question. And the next question will be coming from the line of Simon Clinch of Rothschild. Your line is open. Hi. Thanks for taking my question. Billy, I was wondering if you could characterize the competitive environment in credit today. This is clearly a focus of the investment community, particularly given they have the market share data out there all the time.
Sara Furber: But we also feel quite strongly that we have a lot of opportunity to grow the business organically. We have the opportunity to pursue inorganic investments and M&A. And obviously, share repurchases, particularly when the stock dislocates from what we think is our fundamental growth opportunity, we'll use that tool as well. And thank you.
Speaker #1: also strongly feel quite have a lot of opportunity to grow the business that we We it's one that we investments pursue and organically .
Speaker #1: M&A and share repurchases, particularly when the inorganic have the, obviously, what we think is our fundamental opportunity, we'll use that tool well.
Operator: Thank you. One moment for the next question. And the next question will be coming from the line of Simon Clinch of Rothschild. Your line is open.
Speaker #1: as Thank you .
Speaker #4: Thank you . One moment for the next question and the next question from the line will be coming of Simon Clinch Rothschild . is open .
Simon Clinch: Hi. Thanks for taking my question. Billy, I was wondering if you could characterize the competitive environment in credit today. This is clearly a focus of the investment community, particularly given they have the market share data out there all the time.
Speaker #14: am thanks I
Speaker #14: my question . wondering if you could characterize the I was competitive environment credit in today . This is clearly a of the focus investment community of , particularly have the market given they share data all the the biggest you see as So what do improvement time .
Operator: So what do you see as the biggest catalyst for improvement in share for Tradeweb going forward from this point, and how that sort of competitive dynamic shapes up over the next 1 year to 5 years? Yeah. Good question. And I would agree completely. It's competitive. And I would agree completely with you that it's a focus of the analyst world and the investor world. I wouldn't go so far as to say it's an obsession, but it's a focus for sure. And I would start by saying just as a reiteration, we feel very, very comfortable competing. It's part of who we are. We've been competing day one as we built this company over 25, 27 years with Bloomberg. The competitive framework is something that's comfortable to us. I think the path forward on continuing to grow revenue and grow share is going to be pretty straightforward.
Simon Clinch: So what do you see as the biggest catalyst for improvement in share for Tradeweb going forward from this point, and how that sort of competitive dynamic shapes up over the next 1 year to 5 years?
Billy Hult: Yeah. Good question. And I would agree completely. It's competitive. And I would agree completely with you that it's a focus of the analyst world and the investor world. I wouldn't go so far as to say it's an obsession, but it's a focus for sure. And I would start by saying just as a reiteration, we feel very, very comfortable competing. It's part of who we are. We've been competing day one as we built this company over 25, 27 years with Bloomberg. The competitive framework is something that's comfortable to us. I think the path forward on continuing to grow revenue and grow share is going to be pretty straightforward.
Speaker #14: and how shapes next to five years ?
Speaker #6: question . And Good I would agree Yeah . completely . You know , it's competitive and I would agree completely with you that it's know , that a you it's a focus .
Speaker #6: You the of know , of analyst so far as to investor world . say it's an I
Speaker #6: You the of know , of analyst so far as to investor world . say it's an I wouldn't go the it's it's a the focus for sure .
Speaker #6: by , just as start , you know , And saying reiteration , like very , very we feel comfortable competing . It's part of who We've been competing I would we are .
Speaker #6: One, as we built the company over 27 years with over 25, this framework is something that's comfortable to us. Think the path forward on.
Speaker #6: I to continuing revenue and grow share is going to be pretty straightforward . You banks . I describe that before when I was , you know , talking on side grow to 26 , you know , if you're on the wrong with the next side with the as this occurs in evolution on the you're credit , wrong side .
Operator: You have to be on side with the banks. I described that before when I was talking about the framework going forward to 2026. If you're on the wrong side with the banks as this next leg of evolution occurs in credit, you're on the wrong side. And we think our relationships with the banks is a game-changer for us there. You have to continue to be able to link markets. And so again, we feel like our footprint in Treasuries is kind of important there. Obviously, the cross-asset piece of how we approach the market, I think, is important. Data, pre-trade data, the ability to present clients with the best data, I think is, again, very important principles for us to keep in mind.
Billy Hult: You have to be on side with the banks. I described that before when I was talking about the framework going forward to 2026. If you're on the wrong side with the banks as this next leg of evolution occurs in credit, you're on the wrong side. And we think our relationships with the banks is a game-changer for us there. You have to continue to be able to link markets. And so again, we feel like our footprint in Treasuries is kind of important there. Obviously, the cross-asset piece of how we approach the market, I think, is important. Data, pre-trade data, the ability to present clients with the best data, I think is, again, very important principles for us to keep in mind.
Speaker #6: And we think our relationships with the about game for us. There is a have to be changer able continue to be markets.
Speaker #6: You have ability to . Present the data , I is clients with important principles for us to keep again , very in then going to get into think kind of banks is the two things that feel very we strongly is about , which best solving ultimately I'm risk for you as banks know , you , inventories and banks trading access .
Speaker #6: And to so again , we feel like footprint in our treasuries is kind of important . . Obviously , you know , the cross piece of asset how we approach the market I think is important data to link Pre-trade data .
Operator: And then ultimately, I'm going to get into kind of the two things that we feel very strongly about, which is solving for risk and solving for what we would describe to you as banks' inventories and banks' trading access. And to make an obvious point, if you don't do the first three things I described at the highest level, which is partnership, the ability to bring in other marketplaces, and ultimately have the best data, then you cannot solve for ultimately what is risk trading and what is complexity. And so month-to-month, quarter-to-quarter, we are focused on the credit business. We grew revenues, as you know, quite well in the month of January. So we're feeling good directionally about how we're positioned there.
Billy Hult: And then ultimately, I'm going to get into kind of the two things that we feel very strongly about, which is solving for risk and solving for what we would describe to you as banks' inventories and banks' trading access. And to make an obvious point, if you don't do the first three things I described at the highest level, which is partnership, the ability to bring in other marketplaces, and ultimately have the best data, then you cannot solve for ultimately what is risk trading and what is complexity. And so month-to-month, quarter-to-quarter, we are focused on the credit business. We grew revenues, as you know, quite well in the month of January. So we're feeling good directionally about how we're positioned there.
Speaker #6: to make mind . an And obvious point , if you don't do the first three things , I described at the what we would level , is partnership , solving for the ability to which bring in And other other marketplaces and ultimately have the best data , then cannot highest solve for ultimately what risk is trading is what is and what so .
Speaker #6: And month to month , quarter to , you know , are we on the credit focused . We grew revenues , as you quite know , , in the in the month of month of well feeling good about how positioned we're there .
Operator: It is an enormous focus for me and for the company to continue in a competitive environment to be best in class there. That's the mandate for us as a company. And appreciate it. Good question. Thank you. Thank you. One moment for the next question. Our next question is coming from the line of Bill Katz of TD Cowen. Your line is open. Hi. It's Bradley Hayes on for Bill Katz. Following up on tokenization, as assets increasingly become tokenized, how are you thinking about the impacts for the swaps market? In particular, is there risk to volume from smart contract functionality? Sure. Why don't I jump in with that? I think similar to how we talked about tokenization, smart contracts really takes away the friction in the swaps market potentially that sits downstream past execution in terms of the value chain that we're in.
Billy Hult: It is an enormous focus for me and for the company to continue in a competitive environment to be best in class there. That's the mandate for us as a company. And appreciate it. Good question.
Speaker #6: It is enormous for us and for the directionally focused company going into January. So we're continuing to be competitive, to be the best in this area.
Simon Clinch: Thank you.
Operator: Thank you. One moment for the next question. Our next question is coming from the line of Bill Katz of TD Cowen. Your line is open.
Speaker #6: that's that's the mandate as a for us company appreciate it . me Good question and .
Speaker #14: you Thank
Bradley Hayes: Hi. It's Bradley Hayes on for Bill Katz. Following up on tokenization, as assets increasingly become tokenized, how are you thinking about the impacts for the swaps market? In particular, is there risk to volume from smart contract functionality?
Speaker #14: .
Speaker #4: Thank you. One moment for the next question. Our next question is coming from Bill, from the line of Bill Katz of TD Cowen.
Speaker #4: Your line open
Speaker #15: Hi .
Speaker #15: Hayes on for Bill Katz . It's up on tokenization
Sara Furber: Sure. Why don't I jump in with that? I think similar to how we talked about tokenization, smart contracts really takes away the friction in the swaps market potentially that sits downstream past execution in terms of the value chain that we're in.
Speaker #1: that ? You with think we know , I smart talked about contracts Sure . really Why takes away the similar to how the swaps potentially , that friction in downstream past sits really
Operator: So it really streamlines affirmations, confirmations, clearing that post-trade lifecycle management, which we think is really helpful and only furthers the electronification and the trading velocities in this space. But from our seat, it doesn't disintermediate or really impact the value that we are offering in terms of our markets. Thanks. Thank you. Thank you. And at this time, I would like to go ahead and turn the call back over to Billy Hult, CEO, for closing remarks. Please go ahead. Great. I know, Sara and I both appreciate a very busy day for everyone on the call. Appreciate your time. Thank you all very much for joining us. Any follow-up questions, obviously, please feel free to reach out to Ashley, Sameer, and our great team. Everyone, have a great day. Thanks very much. Thank you all for attending today's program. You may now disconnect.
Sara Furber: So it really streamlines affirmations, confirmations, clearing that post-trade lifecycle management, which we think is really helpful and only furthers the electronification and the trading velocities in this space. But from our seat, it doesn't disintermediate or really impact the value that we are offering in terms of our markets. Thanks.
Speaker #1: , confirmations , clearing that post-trade is really helpful is management , which it and only furthers lifecycle and the trading the space . from But our this seat , it doesn't , you know , disintermediate or really functionality value that we are terms of offering in markets impact the .
Operator: Thank you. Thank you. And at this time, I would like to go ahead and turn the call back over to Billy Hult, CEO, for closing remarks. Please go ahead.
Speaker #1: Thanks . our
Billy Hult: Great. I know, Sara and I both appreciate a very busy day for everyone on the call. Appreciate your time. Thank you all very much for joining us. Any follow-up questions, obviously, please feel free to reach out to Ashley, Sameer, and our great team. Everyone, have a great day. Thanks very much.
Speaker #4: Thank you . you . this time , ahead and like to go And at call over Billy back Holt , CEO for closing Please go I would ahead .
Speaker #6: Great . A
Speaker #6: very and I busy day on the appreciate a call . Sarah Appreciate your both Thank you time . all very much for
Speaker #6: For everyone, questions? Please feel free to reach out. Obviously, Ashley, Sameer, and our team are here. Have a great, great day.
Operator: Thank you all for attending today's program. You may now disconnect.
