Q3 2025 Marketaxess Holdings Inc Earnings Call Transcript
Key Points
- MarketAxess Holdings Inc (MKTX) reported a slight increase in revenue to $209 million for the third quarter, with strong growth outside of US credit at 10%.
- The company is modernizing its technology platform and delivering new protocols and workflow tools, gaining significant traction with new initiatives.
- Block trading average daily volume (ADV) grew by 10% across US credit, emerging markets, and Eurobonds, with a 21% increase in October.
- Portfolio trading ADV increased by 20%, with record US high yield ADV, and market share in US credit portfolio trading increased by 300 basis points.
- Dealer-initiated ADV increased by 18%, supported by strong growth in Mid-X for Eurobonds and the addition of Mid-X for US credit.
- Revenue growth in US credit remains challenging due to tight spreads and the growth of new protocols like portfolio trading.
- Total credit commission revenue decreased by 2% compared to the prior year, with a 9% decline in US high grade and flat growth in US high yield.
- The company faces investor frustration due to elusive overall share gains despite uptake in new offers.
- Operating expenses increased by 3%, driven by higher employee compensation and technology costs.
- The effective tax rate increased to 27.1% from 23% in the prior year, reflecting an increased accrual for uncertain tax positions.
Ladies and gentlemen, thank you for standing by. Welcome to the Marketaxess third-quarter 2025 earnings conference call.
(Operator Instructions) (technical difficulty) 2025.
I now like to turn the call over to Steve Davidson, Head of Investor Relations at Marketaxess. Please go ahead, sir.
Good morning and welcome to the Marketaxess third-quarter 2025 earnings conference call.
For the call, Chris Concannon, Chief Executive Officer, will provide you with an update on our strategy and our trading businesses, and Ilene Fiszel Bieler, Chief Financial Officer, will review the financial results.
Before I turn the call over to Chris, let me remind you that today's call may include forward-looking statements. These statements represent the company's belief regarding future events that by their nature are uncertain. The company's actual results and financial condition may differ materially from what is indicated in those forward-looking statements. For a discussion
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