MarketAxess Reports Fourth Quarter and Full Year 2025 Financial Results

MarketAxess Reports Fourth Quarter and Full Year 2025 Financial Results February 6, 2026 Record Revenue of $846 Million in 2025 Driven by 10% Growth in Revenue Outside U.S. Credit Products 24% Increase in Block Trading ADV to Record $5 Billion in 2025 48% Increase in Portfolio Trading ADV to Record $1.4 Billion in 2025 with Record U.S. Credit ADV & Market Share 33% Increase in Dealer-Initiated ADV in 2025 MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the fourth quarter and full year ended December 31, 2025. 4Q25 select financial and operational highlights* Total revenues of $209.4 million increased 3.5%, and included an increase of approximately $1.6 million from the impact of foreign currency fluctuations.Strong progress with our new initiatives across our three strategic channels:Client-Initiated Channel - 29% increase in block trading average daily volume (“ADV”), including 21% growth in U.S. credit, 41% growth in emerging markets (record) and 43% growth in eurobonds.Portfolio Trading Channel - 41% increase in total portfolio trading ADV to record $1.5 billion with record U.S. high-yield and record emerging markets portfolio trading ADV of $368 million and $118 million, respectively. Record U.S. credit portfolio trading market share of 21%, an increase of 440 basis points.Dealer-Initiated Channel - 32% increase in dealer-initiated ADV to $1.8 billion, including 20% increase in dealer request for quote ("RFQ") ADV and a 185% increase in Mid-X ADV. Our Mid-X protocol in U.S. credit surpassed $3.0 billion in trading volume in December 2025.Total expenses of $133.4 million increased 9%, and included an increase of approximately $1.3 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items, 1 of $132.3million increased 8%.Effective tax rate of (15.8%); effective tax rate excluding notable items 1 of 23.4%.Diluted earnings-per-share (“EPS”) of $2.51 on net income of $92.4million; Diluted EPS of $1.68 on net income of $61.9 million, each excluding notable items. 1Announced 3-year financial targets and increased stock repurchase authorizations to $505.0 million, including a $300.0 million accelerated stock repurchase ("ASR") agreement that commenced in December 2025. Full Year 2025 select financial and operational highlights** Record total revenues of $846.3 million increased 4%( 10% outside U.S. credit), and included an increase of approximately $4.6 million from the impact of foreign currency fluctuations.Record commission revenue, including record emerging markets (+10%), record eurobonds (+10%) and record U.S. Government bonds (+13%).Record services revenue 3 of $111.6 million, up 6%.Strong progress with our new initiatives across our three strategic channels:Client-Initiated Channel - 24% increase in block trading ADV to a record$5 billion, including 18% growth in U.S. credit (record), 27% growth in emerging markets (record) and 66% growth in eurobonds (record).Portfolio Trading Channel - 48% increase in total portfolio trading ADV to record $1.4 billion with record U.S. credit portfolio trading ADV of $1.1 billion, an increase of 43%. Record U.S. credit portfolio trading market share of 19%, an increase of 270 basis points.Dealer-Initiated Channel - 33% increase in dealer-initiated ADV to $1.7 billion, including a 29% increase in dealer RFQ ADV and a 102% increase in Mid-X ADV with the launch of the Mid-X protocol in September 2025.Total expenses of $504.4 million increased 6%, and included an increase of approximately $4.5 million from the impact of foreign currency fluctuations. Total expenses, excluding notable items, 1 of $499.4million increased 5%.Diluted EPS of $6.64 on net income of $246.9 million; Diluted EPS of $7.39 on net income of $274.7 million, each excluding notable items. 1 *All comparisons versus 4Q24 **All comparisons versus full year 2024 Chris Concannon, CEO of MarketAxess, commented: “In 2025, we made significant strides in enhancing the MarketAxess advantage by expanding our global network, deepening our differentiated liquidity. We also accelerated our use of AI in enhancing the proprietary data and analytics that underpin our protocols and workflow tools for clients, helping them to be more efficient and gain deeper insights into their trading activity. We delivered record volumes in U.S. credit and record revenue outside of U.S. credit of $406 million, a 10% increase, reflecting the strong returns generated from our investments in these areas. We also made strong progress across our three U.S. credit strategic channels: block trading ADV increased 24%, total portfolio trading ADV increased 48%, and dealer‑initiated ADV increased 33%. Additionally, the Mid‑X solution launched in the second half of 2025 continues to gain momentum, delivering over $3 billion in trading volume in December 2025. The client initiatives that we expect to deliver in 2026 and beyond include enhancements to our X-Pro platform and our automation suite, as well as the launch of new solutions that allow dealers to send axes directly to investor clients. These enhancements are progressing well and we expect them to drive market share and revenue growth consistent with our medium-term financial targets." Table 1: 4Q25 and full year 2025 select financial results Quarter % Change Full Year % Change $ in millions, except per share data (unaudited) 4Q 2025 3Q 2025 4Q 2024 QoQ YoY FY 2025 FY 2024 YoY Selected GAAP-basis financial results Revenues $ 209 $ 209 $ 202 — % 3 % $ 846 $ 817 4 % Expenses 133 123 122 8 9 504 476 6 Net Income 92 68 65 35 42 247 274 (10 ) Diluted EPS 2.51 1.84 1.73 36 45 6.64 7.28 (9 ) Net Income Margin 44.1 % 32.7 % 32.2 % NM NM 29.2 % 33.6 % NM Selected GAAP-basis financial results ex-notable items (non-GAAP)1 Revenues 209 209 202 — 3 846 817 4 Expenses 132 123 122 7 8 499 476 5 Net Income 62 68 65 (9 ) (5 ) 275 274 — Diluted EPS 1.68 1.84 1.73 (9 ) (3 ) 7.39 7.28 2 Other Non-GAAP financial measures EBITDA2 95 108 97 (12 ) (2 ) 421 410 3 EBITDA Margin2 45.3 % 51.5 % 47.8 % (620 ) bps (250 ) bps 49.7 % 50.2 % (50) bps NM - not meaningful 4Q25 overview of results Table 1A: Notable items1 Quarter Full Year 4Q 2025 3Q 2025 4Q 2024 FY 2025 FY 2024 $ in millions, except per share data (unaudited) Repositioning charges $ 1.1 $ — $ — $ 5.1 $ — Acquisition-related charge/(credit) — — — 0.6 — Notable items (pre-tax) 1.1 — — 5.7 — Income tax impact from notable items (0.3 ) — — (1.5 ) — Reserve for uncertain tax positions related to prior periods (31.3 ) — — 23.6 — Total notable items $ (30.5 ) $ — $ — $ 27.8 $ — EPS impact $ (0.83 ) $ — $ — $ 0.75 $ — Notable items1 Notable items in 4Q25 include repositioning charges of $1.1 million, which consisted of severance costs related to changes in management structure, and a benefit to the reserve for uncertain tax positions of approximately $31.3 million related to prior periods. Revenue Total revenues of $209.4 million increased 3.5% compared to the prior year and included RFQ-hub revenues of approximately $3.7 million and a $1.6 million increase from the impact of foreign currency fluctuations. Commission revenue Table 1B: 4Q25 variable transaction fees per million (FPM) Quarter % Change Full Year % Change 4Q 2025 3Q 2025 4Q 2024 QoQ YoY FY 2025 FY 2024 YoY AVG. VARIABLE TRANS. FEE PER MILLION (FPM) Total Credit $ 138 $ 140 $ 150 (1 ) % (8 ) % $ 139 $ 150 (7 ) % Total Rates 4.79 4.21 4.31 14 11 4.28 4.39 (3 ) Credit Total credit commission revenue of $165.2million(including $32.8 million in fixed-distribution fees) increased $3.0 million, or 2%, compared to $162.2 million(including $32.8 million in fixed-distribution fees) in the prior year, and was consistent with 3Q25 levels. An 11% increase in total credit ADV compared to the prior year, driven by growth in market volumes, was partially offset by an 8% decrease in total credit variable transaction fee per million (“FPM”). The 2% increase in total credit commission revenue was driven by a 7% increase in emerging markets and eurobonds commission revenue, reflecting continued product and geographic diversification. The decline in 4Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to protocol mix. Rates Total rates commission revenue of $6.8 million decreased $0.5 million, or 7%, compared to the prior year, and increased 2% from 3Q25 levels. A 17% decrease in total rates ADV compared to the prior year was partially offset by an 11% increase in FPM. Other Record total other commission revenue of $9.4million increased $4.1 million, or 79%, compared to the prior year, driven by the inclusion of approximately $3.4million from RFQ-Hub, majority control of which was acquired in 2Q25. Services revenue Services revenue 3 of $28.1 million increased $0.4 million, or 2%, compared to the prior year. Information services Information services revenue of $13.5 million increased $0.3 million, or 2%, compared to the prior year. The increase was principally driven by an increase of $0.3 million from the impact of foreign currency fluctuations. Post-trade services Post-trade services revenue of $11.0 million increased $0.1 million, or 1%, compared to the prior year principally due to an increase of $0.6 million from the impact of foreign currency fluctuations, partially offset by lower net contract revenue. Technology services Total technology services revenue of $3.6 million increased $0.1 million, or 2%, compared to the prior year. The increase was driven by connectivity fees from RFQ-hub, majority control of which was acquired in 2Q25. Expenses Total expenses of $133.4 million increased 9% from the prior year, including approximately $3.5 million of RFQ-hub expenses and an increase of $1.3 million from the impact of foreign currency fluctuations. Non-operating Other income (expense): Other income was $3.8million, down from $4.6 million in the prior year. The decrease was driven by lower interest income due to a decrease in interest rates and higher interest expense due to borrowings on the Company's credit facility that were used, along with cash on hand, to fund the ASR, partially offset by unrealized gains on investments compared to unrealized losses in the prior year.Tax rate: The effective tax rate was (15.8%), compared to 23.0% in the prior year. The effective tax rate excluding notable items 1 was 23.4%. Capital The Company had $678.9 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of December 31, 2025, down from $698.6 million as of December 31, 2024. The Company had $220.0 million in borrowings outstanding under the Company’s credit facility as of December 31, 2025, as compared to no borrowings outstanding as of December 31, 2024.In December 2025, the Board of Directors authorized the repurchase of up to $400.0 million of additional shares of MarketAxess common stock. Following the new authorization, the Company entered into an ASR agreement to repurchase, in aggregate, $300.0million of MarketAxess common stock. Upon execution of the ASR, a total of 1,386,001 shares were delivered, representing 80% of the total shares that the Company expected to receive under the ASR based on the market price of the Company's common stock on the date of execution. Final settlement of the ASR occurred on February 4, 2026 with the delivery of 359,782 additional shares. For the full year 2025, a total of 1,980,715 shares were repurchased at a cost of $360.0 million. As of January 31, 2026, $205.0 million remained under the Board of Directors’ share repurchase authorizations.The Board declared a quarterly cash dividend of $0.78 per share, payable on March 4, 2026 to stockholders of record as of the close of business on February 18, 2026. Other Employee headcount was 869 as of December 31, 2025, down from 891 as of December 31,2024 and 896 as of September 30, 2025. Full Year 2026 Guidance4 For the full year 2026, the Company is providing the following guidance: Services revenue 3 is expected to grow in the mid-single digits (percent).Expenses, excluding notable items, are expected to be in the range of $530.0 million to $545.0 million. Based on the midpoint of the stated guidance range, total expenses are expected to increase by 8%.The effective tax rate is expected to be between 24.0% and 26.0%.Capital expenditures to support new protocols, products and trading platform enhancements are expected to be in the range of $65.0million to $75.0 million. 1 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 and Table 6 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures. 2 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 and Table 7 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures. 3 Services revenue is defined as combined information, post-trade and technology services revenue. 4 The Company's guidance for full year 2026 is based on foreign exchange rates as of December 31, 2025, and assumes a constant business portfolio. Non-GAAP financial measures and other items To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) selected GAAP-basis financial results, each excluding notable items, to their most directly comparable GAAP measure; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure. The Company does not reconcile its forward-looking non-GAAP financial measures, including the 2026 expense guidance, to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides forward-looking non-GAAP financial measures that it believes will be achieved, however, it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures. Webcast and conference call information Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer, will host a conference call to discuss the Company’s financial results and outlook on Friday, February 6, 2026 at 10:00 a.m. ET. To access the conference call, please dial +1-800-715-9871 (U.S.) or +1-646-307-1963 (International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement. General Notes Regarding the Data Presented Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume. Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance, including the full year 2026 guidance included in this press release. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the divergence of U.K. and European Union legal and regulatory requirements following the U.K.’s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com. About MarketAxess MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess. Table 2: Consolidated Statements of Operations Three Months Ended Year Ended December 31, December 31, In thousands, except per share data (unaudited) 2025 2024 % Change 2025 2024 % Change Revenues Commissions $ 181,339 $ 174,766 4 % $ 734,623 $ 711,710 3 % Information services 13,454 13,155 2 53,230 50,540 5 Post-trade services 11,034 10,975 1 44,491 42,487 5 Technology services 3,582 3,508 2 13,924 12,360 13 Total revenues 209,409 202,404 3 846,268 817,097 4 Expenses Employee compensation and benefits 61,402 59,395 3 248,537 235,880 5 Depreciation and amortization 19,606 18,540 6 76,699 73,824 4 Technology and communications 20,864 18,791 11 78,294 72,166 8 Professional and consulting fees 10,505 6,329 66 31,487 27,382 15 Occupancy 3,804 3,716 2 15,038 14,690 2 Marketing and advertising 3,842 3,972 (3 ) 11,204 11,713 (4 ) Clearing costs 4,003 4,443 (10 ) 16,583 17,863 (7 ) General and administrative 9,370 7,242 29 26,588 22,709 17 Total expenses 133,396 122,428 9 504,430 476,227 6 Operating income 76,013 79,976 (5 ) 341,838 340,870 — Other income (expense) Interest income 5,448 6,719 (19 ) 24,397 26,046 (6 ) Interest expense (964 ) (318 ) 203 (1,487 ) (1,601 ) (7 ) Equity in earnings of unconsolidated affiliate — 331 (100 ) 457 1,395 (67 ) Other, net (711 ) (2,113 ) (66 ) 1,790 (6,164 ) NM Total other income (expense) 3,773 4,619 (18 ) 25,157 19,676 28 Income before income taxes 79,786 84,595 (6 ) 366,995 360,546 2 Provision for income taxes (12,608 ) 19,456 (165 ) 120,083 86,365 39 Net income $ 92,394 $ 65,139 42 $ 246,912 $ 274,181 (10 ) Less: income attributable to noncontrolling interest (157 ) — NM (285 ) — NM Net income available for common stockholders $ 92,237 $ 65,139 42 $ 246,627 $ 274,181 (10 ) Per Share Data: Net income per common share Basic $ 2.52 $ 1.74 $ 6.66 $ 7.29 Diluted $ 2.51 $ 1.73 $ 6.64 $ 7.28 Cash dividends declared per common share $ 0.76 $ 0.74 $ 3.04 $ 2.96 Weighted-average common shares: Basic 36,601 37,479 37,056 37,600 Diluted 36,683 37,601 37,137 37,672 NM - not meaningful Table 3: Commission Revenue Detail In thousands, except fee per million data (unaudited) Three Months Ended December 31, Year Ended December 31, 2025 2024 % Change 2025 2024 % Change Variable transaction fees Credit $ 132,358 $ 129,351 2 % $ 541,986 $ 533,363 2 % Rates 6,695 7,262 (8 ) 28,198 25,165 12 Other 9,382 5,235 79 30,264 20,016 51 Total variable transaction fees 148,435 141,848 5 600,448 578,544 4 Fixed distribution fees Credit 32,802 32,849 — 133,820 132,898 1 Rates 102 69 48 355 268 32 Total fixed distribution fees 32,904 32,918 — 134,175 133,166 1 Total commission revenue $ 181,339 $ 174,766 4 $ 734,623 $ 711,710 3 Average variable transaction fee per million Credit $ 138 $ 150 (8 ) % $ 139 $ 150 (7 ) % Rates 4.79 4.31 11 4.28 4.39 (3 ) Table 4: Trading Volume Detail* Three Months Ended December 31, In millions (unaudited) 2025 2024 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 424,563 $ 6,848 $ 400,129 $ 6,454 6 % 6 % High-yield 95,650 1,543 83,373 1,345 15 15 Emerging markets 247,140 3,986 214,439 3,459 15 15 Eurobonds 154,061 2,407 128,064 2,001 20 20 Other credit 37,086 597 38,698 624 (4 ) (4 ) Total credit trading 958,500 15,381 864,703 13,883 11 11 Rates U.S. government bonds 1,352,808 21,819 1,608,995 25,952 (16 ) (16 ) Agency and other government bonds 43,787 686 76,221 1,195 (43 ) (43 ) Total rates trading 1,396,595 22,505 1,685,216 27,147 (17 ) (17 ) Total trading $ 2,355,095 $ 37,886 $ 2,549,919 $ 41,030 (8 ) (8 ) Number of U.S. Trading Days1 62 62 Number of U.K. Trading Days2 64 64 Year Ended December 31, In millions (unaudited) 2025 2024 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 1,786,664 $ 7,175 $ 1,711,275 $ 6,845 4 % 5 % High-yield 376,772 1,513 334,761 1,339 13 13 Emerging markets 979,903 3,935 859,412 3,438 14 14 Eurobonds 605,623 2,403 508,093 2,008 19 20 Other credit 153,869 617 135,975 543 13 14 Total credit trading 3,902,831 15,643 3,549,516 14,173 10 10 Rates U.S. government bonds 6,322,098 25,390 5,511,045 22,044 15 15 Agency and other government bonds 272,951 1,084 227,614 902 20 20 Total rates trading 6,595,049 26,474 5,738,659 22,946 15 15 Total trading $ 10,497,880 $ 42,117 $ 9,288,175 $ 37,119 13 13 Number of U.S. Trading Days1 249 250 Number of U.K. Trading Days2 252 253 1 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar. 2 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. Table 5: Consolidated Condensed Balance Sheet Data As of In thousands (unaudited) December 31, 2025 December 31, 2024 Assets Cash and cash equivalents $ 519,734 $ 544,478 Cash segregated under federal regulations 48,722 47,107 Investments, at fair value 170,677 165,260 Accounts receivable, net 100,989 91,845 Receivables from broker-dealers, clearing organizations and customers 362,931 357,728 Goodwill 283,667 236,706 Intangible assets, net of accumulated amortization 110,629 98,078 Furniture, equipment, leasehold improvements and capitalized software, net 112,431 107,298 Operating lease right-of-use assets 51,854 58,132 Prepaid expenses and other assets 46,972 82,584 Total assets $ 1,808,606 $ 1,789,216 Liabilities and stockholders' equity Liabilities Accrued employee compensation $ 73,879 $ 68,054 Payables to broker-dealers, clearing organizations and customers 199,679 218,845 Borrowings 220,000 — Income and other tax liabilities 49,267 3,683 Accounts payable, accrued expenses and other liabilities 42,584 37,320 Operating lease liabilities 64,938 72,654 Total liabilities 650,347 400,556 Redeemable noncontrolling interest 12,592 — Stockholders' equity Common stock 123 123 Additional paid-in capital 305,923 350,701 Treasury stock (694,764 ) (333,369 ) Retained earnings 1,538,746 1,405,904 Accumulated other comprehensive income/(loss) (4,361 ) (34,699 ) Total stockholders' equity 1,145,667 1,388,660 Total liabilities, redeemable noncontrolling interest and stockholders' equity $ 1,808,606 $ 1,789,216 Table 6: Reconciliation of Notable Items Quarter Full Year $ in thousands, except per share data (unaudited) 4Q 2025 3Q 2025 4Q 2024 FY 2025 FY 2024 Total Expenses, GAAP-basis $ 133,396 $ 123,242 $ 122,428 $ 504,430 $ 476,227 Exclude: Notable items Repositioning charges1 (1,084 ) — — (5,054 ) — Total Expenses, excluding notable items $ 132,312 $ 123,242 $ 122,428 $ 499,376 $ 476,227 Other income (expense), GAAP-basis $ 3,773 $ 8,060 $ 4,619 $ 25,157 $ 19,676 Exclude: Notable items Acquisition-related charge/(credit)2 — — — 557 — Other income (expense), excluding notable items $ 3,773 $ 8,060 $ 4,619 $ 25,714 $ 19,676 Net income, GAAP-basis $ 92,394 $ 68,273 $ 65,139 $ 246,912 $ 274,181 Exclude: Notable items Repositioning charges1 1,084 — — 5,054 — Acquisition-related charge/(credit)2 — — — 557 — Income tax impact from notable items (254 ) — — (1,471 ) — Reserve for uncertain tax positions related to prior periods (31,308 ) — — 23,631 — Net income, excluding notable items $ 61,916 $ 68,273 $ 65,139 $ 274,683 $ 274,181 Diluted EPS, GAAP-basis $ 2.51 $ 1.84 $ 1.73 $ 6.64 $ 7.28 Notable items as reconciled above (0.83 ) — — 0.75 — Diluted EPS, excluding notable items $ 1.68 $ 1.84 $ 1.73 $ 7.39 $ 7.28 Effective tax rate, GAAP-basis -15.8 % 27.1 % 23.0 % 32.7 % 24.0 % Notable items as reconciled above 39.2 — — (6.4 ) — Effective tax rate, excluding notable items 23.4 % 27.1 % 23.0 % 26.3 % 24.0 % 1 Repositioning charges consist of severance included in employee compensation and benefits 2 Consists of loss on remeasurement of previous equity interest in RFQ-hub to fair value Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin Quarter Full Year In thousands (unaudited) 4Q 2025 3Q 2025 4Q 2024 FY 2025 FY 2024 Net income $ 92,394 $ 68,273 $ 65,139 $ 246,912 $ 274,181 Add back: Interest income (5,448 ) (5,850 ) (6,719 ) (24,397 ) (26,046 ) Interest expense 964 171 318 1,487 1,601 Provision for income taxes (12,608 ) 25,366 19,456 120,083 86,365 Depreciation and amortization 19,606 19,662 18,540 76,699 73,824 EBITDA $ 94,908 $ 107,622 $ 96,734 $ 420,784 $ 409,925 Net income margin1 44.1 % 32.7 % 32.2 % 29.2 % 33.6 % Add back: Interest income (2.6 ) (2.8 ) (3.3 ) (2.9 ) (3.2 ) Interest expense 0.5 0.1 0.2 0.2 0.2 Provision for income taxes (6.1 ) 12.1 9.5 14.1 10.6 Depreciation and amortization 9.4 9.4 9.2 9.1 9.0 EBITDA margin2 45.3 % 51.5 % 47.8 % 49.7 % 50.2 % 1 Net income margin is derived by dividing net income by total revenues for the applicable period. 2 EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period. Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Quarter Full Year In thousands (unaudited) 4Q 2025 3Q 2025 4Q 2024 FY 2025 FY 2024 Net cash (used in)/provided by operating activities $ 158,632 $ 90,164 $ 176,248 $ 382,139 $ 385,237 Exclude: Net change in trading investments (404 ) 264 — (206 ) 629 Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers (67,825 ) 34,338 (51,833 ) 22,965 (1,118 ) Less: Purchases of furniture, equipment and leasehold improvements (3,572 ) (1,496 ) (215 ) (8,204 ) (9,942 ) Less: Capitalization of software development costs (11,775 ) (11,494 ) (10,833 ) (49,810 ) (46,623 ) Free cash flow $ 75,056 $ 111,776 $ 113,367 $ 346,884 $ 328,183 Source: MarketAxess Holdings Inc.