In This Article:
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Revenue: Record revenues of $510 million, up 24.7% year-over-year.
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Adjusted EBITDA Margin: Expanded by 125 basis points to 54.6%.
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Rates Business Revenue: Record revenue driven by organic growth across swaps, global government bonds, and mortgages.
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Credit Revenue: High single-digit growth, with strong gains in credit derivatives and municipal bonds.
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Equities Revenue: Double-digit growth led by global ETF and equity derivatives business.
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Market Data Revenue: Growth driven by LSEG market data contract and proprietary data products.
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US Treasuries Market Share: 23% market share, driving record revenues up 13% year-over-year.
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Global Swaps Revenue: Grew over 40% year-over-year, with record institutional swap revenues.
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Cash Position: $1.3 billion in cash and cash equivalents.
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Free Cash Flow: Approximately $834 million for the trailing 12 months.
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Dividend: Quarterly dividend of $0.12 per Class A and Class B shares, up 20% year-over-year.
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Guidance for 2025: Adjusted expenses expected to range from $970 million to $1.03 billion.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tradeweb Markets Inc (NASDAQ:TW) achieved record revenues of $510 million in Q1 2025, marking a 24.7% year-over-year increase.
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The company reported strong double-digit revenue growth across all four asset classes: rates, credit, equities, and money markets.
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Tradeweb's rates business produced a record revenue quarter, driven by organic growth in swaps, global government bonds, and mortgages.
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The company's adjusted EBITDA margin expanded by 88 basis points compared to Q1 2024, reflecting improved profitability.
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Tradeweb continues to innovate with new protocols like portfolio trading for European government bonds, enhancing market electronification.
Negative Points
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Retail credit revenues were down 20% year-over-year, reflecting a risk-off tone among retail investors amid rising macro uncertainty.
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Total market share in global swaps declined from 22% to 21% due to a reduction in US and European client-related compression volumes.
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Average fees per million for cash rate products decreased by 8%, primarily due to negative mix shift changes within US government bonds.
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Adjusted expenses increased by 22% year-over-year, driven by investments in digital assets, consulting, and client relationship development.
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The company faces challenges in transitioning from variable to fixed pricing in its credit business, which could impact revenue growth dynamics.