Cboe Global Markets Q2 2025 slides: record revenue driven by options, international growth

Cboe Global Markets (CBOE) reported record second-quarter 2025 results, with net revenue increasing 14% year-over-year to $587 million and adjusted EPS also up 14% to $2.46, driven by robust performance in its options segment, particularly a 45% surge in 0DTE options ADV, and strong international growth in Europe and Asia Pacific. The company achieved an impressive 65.8% adjusted operating margin and saw 11% organic revenue growth in its Data Vantage business. Cboe reaffirmed its 2025 guidance, projecting continued high single-digit organic revenue growth, underscoring its strategic focus on derivatives, global expansion, and data services.

Analysis

Cboe Global Markets (CBOE) delivered a strong second-quarter 2025 performance, reporting record net revenue of $587 million, a 14% year-over-year increase, and an equivalent 14% rise in adjusted EPS to $2.46. This growth was underpinned by an impressive adjusted operating margin of 65.8%. The primary drivers were the Options segment, which saw revenues climb 19%, and the Europe and Asia Pacific segment, which surged 30%. A significant secular trend is evident in the 45% year-over-year increase in average daily volume for zero days to expiration (0DTE) options, indicating robust adoption by both retail and institutional clients. While the Global FX business also posted solid 19% growth, the North American Equities segment remained flat and the Futures segment registered a 14% decline, representing the sole area of weakness. The company's strategic Data Vantage business continues to expand, delivering 11% organic revenue growth and demonstrating global reach with 45% of new sales originating outside the U.S. CBOE reaffirmed its full-year 2025 guidance for high single-digit organic net revenue growth and continued its capital return program, distributing $101.7 million to shareholders via dividends and buybacks during the quarter.

Key Decisions for Investors

• Given the record revenue, double-digit EPS growth, and strong operating margins, investors may view CBOE as a high-quality holding within the financial market infrastructure space, capitalizing on secular growth in derivatives.
• Investors should closely monitor the growth trajectory of 0DTE options and the performance of the Europe and Asia Pacific segment, as these are the company's primary and most powerful growth engines.
• The 14% decline in the Futures segment warrants attention as a potential risk, and it would be prudent to assess if this weakness persists in subsequent quarters, potentially offsetting strength elsewhere.
• The company's commitment to returning capital through consistent dividends and share buybacks provides a supportive element to total shareholder return, which may be attractive in a portfolio context.