Q4 2025 Cboe Global Markets Inc Earnings Call Transcript
Key Points
- Cboe Global Markets Inc (CBOE) delivered record net revenue and adjusted earnings for the quarter and year, with net revenue growing 28% year-over-year to $671 million and adjusted diluted EPS increasing 46% to $3.06.
- The derivatives franchise delivered a record fourth quarter with net revenue increasing 38% year-over-year, driven by strong volumes in multi-list and proprietary index option products.
- Cboe's cash and spot markets saw a 27% increase in net revenue, with solid growth in cash equities in Europe and North America, as well as in the global FX business.
- The Data Vantage business experienced a 9% increase in net revenue, with 90% of growth driven by new unit and new sales, indicating strong demand for market data and access.
- Cboe's strategic initiatives, including the expansion of trading hours and the introduction of new products like Monday and Wednesday expirations for select multi-list names, are expected to drive future growth.
- Cboe is in the process of selling its Australia and Canada businesses, which could impact future revenue and operational focus.
- The company has ceased operations on its corporate listings businesses and is winding down its Cboe Europe Derivatives Exchange (FedEx), indicating challenges in these areas.
- Despite strong growth, the company faces potential risks from geopolitical tensions and economic uncertainties that could impact market conditions.
- The introduction of single stock 0DTE trading requires significant investor education due to the unique risks associated with these products.
- Cboe's guidance for 2026 includes modest revenue assumptions from new initiatives like prediction markets, indicating cautious expectations for immediate impact.
Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cboe Global Markets fourth quarter earnings call. (Operator Instructions)
I would now like to turn the call over to Ken Hill, Head of Investor Relations. Ken, please go ahead.
Good morning, and thank you for joining us for our fourth quarter earnings conference call. On the call today, Craig Donohue, our CEO, will discuss our performance for the quarter and provide an update on our strategic initiatives. Jill Griebenow, our Chief Financial Officer, will then provide an overview of our financial results for the quarter as well as discuss our 2026 financial outlook.
Following their comments, we will open the call to Q&A. Also, joining us for Q&A will be Chris Isaacson, our Chief Operating Officer; Prashant Bhatia, our Head of Enterprise Strategy and
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