NEW YORK | May 7, 2025 - MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the first quarter ended March 31, 2025.

1Q25 select financial and operational highlights*

•  Total revenues of $208.6 million, including a decrease of approximately $0.3 million from the impact of foreign currency fluctuations, decreased 1% compared to the prior year.

•  2% decline in total commission revenue driven by 3% decline in total credit commissions, partially offset by 34% increase in total rates commission revenue.

•  Record emerging markets (+6%) and record eurobonds (+5%) commission revenue helped to partially offset 7% decline in U.S. credit commission revenue.

•  Record services revenue (combined information, post-trade and technology services revenue) of $27 million, up 7%.

•  Record ADV achieved across strategic priority related protocols and workflow tools, including:

•  Emerging markets and eurobonds block trading ADV, up 22% and 68%, respectively.

•  Total portfolio trading ADV of $1.3 billion, up 78%.

•  Dealer RFQ ADV of $1.8 billion, up 40%.

•  Open Trading ADV of $4.8 billion, up 8%.

•  Total expenses of $120.2 million, up 2%, including a decrease of approximately $0.3 million from the impact of foreign currency fluctuations.

•  Effective tax rate of 84.3%.¹ The effective tax rate excluding notable items¹ was 27.2%.

•  Diluted earnings-per-share (“EPS”) of $0.40 on net income of $15.1 million; EPS of $1.87 on net income of $70.0 million, each excluding notable items.¹

Chris Concannon, CEO of MarketAxess, commented:

“We generated record daily volumes across most of our product areas in the first quarter, including record portfolio trading ADV and record block trading ADV across both emerging markets and eurobonds.

During 1Q25 and continuing in early 2Q25, we have been encouraged by the performance of our platform and protocols as our clients have navigated the ongoing credit market volatility. Open Trading activity reached record levels in 1Q25, and we continue to see higher levels of velocity. We believe that MarketAxess’ platform is well-positioned in this environment. Looking ahead, we expect the new capabilities launched with our targeted block solution and enhancements to portfolio trading should help drive higher levels of market share in U.S. credit in the coming quarters.”

All comparisons versus 1Q24

$ in millions, except per share data (unaudited)

Revenues

Operating Income

Net Income

Diluted EPS

Net Income Margin

EBITDA²

EBITDA Margin²

$ in millions, except per share data (unaudited)

Reserve for uncertain tax positions related to prior periods

EPS impact

Reserve for uncertain tax positions of approximately $54.9 million taken related to prior periods. The Company established a reserve in 1Q25 following a NY state tax court’s issuance of an opinion that impacted the Company’s uncertain tax positions. The Company was not a party to the case, but its historical tax filing position was not supported by the Court’s decision.

AVG. VARIABLE TRANS. FEE PER MILLION (FPM)

Total Credit

Total Rates

Total credit commission revenue of $169.1 million (including $33.3 million in fixed-distribution fees) decreased $5.7 million, or 3%, compared to $174.8 million (including $33.3 million in fixed-distribution fees) in the prior year, but increased 4% from 4Q24 levels. A 7% decline in U.S. credit commission revenue, principally due to lower total credit variable transaction fee per million (“FPM”) and lower estimated market share, was partially offset by a 6% increase in emerging markets and Eurobonds commission revenue, as well as a 6% increase in municipal bonds commission revenue, reflecting continued strong product and geographic diversification. The decline in 1Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to product mix.

Total rates commission revenue of $7.0 million increased $1.8 million, or 34%, compared to the prior year. Total rates ADV of $27.0 billion increased 53% compared to the prior year, but decreased 1% compared to 4Q24. The decrease in 1Q25 total rates FPM compared to the prior year and the prior quarter was driven by the impact of product mix.

Total other commission revenue of $5.2 million, which consists of Pragma-related commission revenue, increased 8% driven by higher equities commissions.

Record services revenue of $27.2 million increased $1.8 million, or 7%, compared to the prior year, driven principally by a 9% increase in information services revenue.

Information services revenue of $12.9 million increased $1.0 million, or 9%, compared to the prior year. The increase was principally driven by net new data contract revenue.

Post-trade services revenue of $11.1 million increased $0.4 million, or 3%, compared to the prior year mainly due to net new contract revenue, partially offset by a decrease of $0.2 million from the impact of foreign currency fluctuations.

Total technology services revenue of $3.2 million increased $0.4 million, or 14%, compared to the prior year. The increase was driven by higher Pragma-related license and connectivity fees.

Total expenses of $120.2 million increased 2% from the prior year, including a decrease of $0.3 million from the impact of foreign currency fluctuations.

Other income (expense): Other income was $7.8 million, up from $4.2 million in the prior year. The increase was driven by higher interest income earned on our cash and investments, unrealized gains on our U.S. treasury investments compared to unrealized losses in the prior year, and lower foreign exchange losses compared to the prior period.

Tax rate: The effective tax rate was 84.3%, up from 24.9% in the prior year. The effective tax rate excluding notable items¹ was 27.2%.

The Company had $642.1 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of March 31, 2025, down from $698.6 million as of December 31, 2024. There were no outstanding borrowings under the Company’s credit facility.

A total of 250,792 shares were repurchased year-to-date through April 2025 at a cost of $51.7 million, including 187,905 shares repurchased during the first quarter at a cost of $38.1 million. As of April 30, 2025, a total of $173.4 million remained under the Board of Directors’ share repurchase authorization.

The Board declared a quarterly cash dividend of $0.76 per share, payable on June 4, 2025 to stockholders of record as of the close of business on May 21, 2025.

Employee headcount was 870 as of March 31, 2025, consistent with March 31, 2024, but down from 891 as of December 31, 2024.

Due to the reserve noted above, the GAAP-basis effective tax rate for full year 2025 is now expected to be between 41.0% and 42.0%, assuming no material changes in applicable tax laws; the effective tax rate excluding notable items¹ is expected to be between 26.0% and 27.0%. Previously, the GAAP-basis effective tax rate stated guidance range was between 23.5% and 24.5%.

See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures.

EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures.

Stephen Davidson

MarketAxess Holdings Inc.

+1 212 813 6313

[email protected]

Marisha Mistry

MarketAxess Holdings Inc.

+1 917 267 1232

[email protected]

In thousands, except per share data (unaudited)

Revenues

Commissions

Information services

Post-trade services

Technology services

Total revenues

Expenses

Employee compensation and benefits

Depreciation and amortization

Technology and communications

Professional and consulting fees

Occupancy

Marketing and advertising

Clearing costs

General and administrative

Total expenses

Operating income

Other income (expense)

Interest income

Interest expense

Equity in earnings of unconsolidated affiliate

Other, net

Total other income (expense)

Income before income taxes

Provision for income taxes

Net income

Per Share Data:

Net income per common share

Basic

Diluted

Cash dividends declared per common share

Weighted-average common shares:

Basic

Diluted

In thousands, except fee per million data (unaudited)

Variable transaction fees

Credit

Rates

Other

Total variable transaction fees

Fixed distribution fees

Credit

Rates

Total fixed distribution fees

Total commission revenue

Average variable transaction fee per million

Credit

Rates

In millions (unaudited)

Credit

High-grade

High-yield

Emerging markets

Eurobonds

Other credit

Total credit trading

Rates

U.S. government bonds

Agency and other government bonds

Total rates trading

Total trading

Number of U.S. Trading Days¹

Number of U.K. Trading Days²

The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.

The number of U.K. trading days is based on the U.K. Bank holiday schedule.

Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company’s reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted.

In thousands (unaudited)

Assets

Cash and cash equivalents

Cash segregated under federal regulations

Investments, at fair value

Accounts receivable, net

Receivables from broker-dealers, clearing organizations and customers

Goodwill

Intangible assets, net of accumulated amortization

Furniture, equipment, leasehold improvements and capitalized software, net

Operating lease right-of-use assets

Prepaid expenses and other assets

Total assets

Liabilities and stockholders’ equity

Liabilities

Accrued employee compensation

Payables to broker-dealers, clearing organizations and customers

Income and other tax liabilities

Accounts payable, accrued expenses and other liabilities

Operating lease liabilities

Total liabilities

Stockholders’ equity

Common stock

Additional paid-in capital

Treasury stock

Retained earnings

Accumulated other comprehensive loss

Total stockholders’ equity

Total liabilities and stockholders’ equity

$ in thousands, except per share data (unaudited)

Net income, GAAP-basis

Exclude: Notable items

Reserve for uncertain tax positions related to prior periods

Net income, excluding notable items

Diluted EPS, GAAP-basis

Notable items as reconciled above

Diluted EPS, excluding notable items

Effective tax rate, GAAP-basis

Notable items as reconciled above

Effective tax rate, excluding notable items

In thousands (unaudited)

Net income

Add back:

Interest income

Interest expense

Provision for income taxes

Depreciation and amortization

EBITDA

Net income margin¹

Add back:

Interest income

Interest expense

Provision for income taxes

Depreciation and amortization

EBITDA margin²

In thousands (unaudited)

Net cash (used in)/provided by operating activities

Exclude: Net change in trading investments

Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers

Less: Purchases of furniture, equipment and leasehold improvements

Less: Capitalization of software development costs

Free cash flow

Net income margin is derived by dividing net income by total revenues for the applicable period.

EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period.