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    CBOE
    Earnings call· Jun 2026(Q2 FY26)

    Cboe Global Markets Q2 FY26 earnings call CBOE

    Jul 31, 2026 Source

    Executive summary

    Cboe Q2 FY26 — Record Revenue and EPS Driven by Derivatives and Data Vantage Growth

    Cboe Global Markets delivered a record second quarter, driven by robust growth across its derivatives and data businesses, with strong retail engagement in options. The company is strategically expanding into event and prediction markets, enhancing its global clearing capabilities, and extending cash equities trading hours, positioning itself for continued long-term growth despite increased capital expenditure for infrastructure.

    Highlights

    5

    • Net revenue grew 25% year-over-year to a record $732 million.

    • Adjusted diluted EPS increased 45% year-over-year to $3.56.

    • Derivatives net revenue increased 30% year-over-year to $413 million.

    • Index options ADV increased 32% year-over-year to 6.2 million contracts.

    • Adjusted operating EBITDA grew 37% to $528 million, with margin expanding 6.4 percentage points to 72.2%.

    Concerns

    1

    • CapEx guidance increased to $98 million-$108 million from $73 million-$83 million due to incremental investment in clearing infrastructure and pulled-forward hardware purchases.

    Guidance & targets

    8
    CategoryTargetConfidence
    Total organic net revenue growth
    mid- to high teens range
    high materiality
    High
    Data Vantage organic net revenue growth
    low-teens range
    medium materiality
    High
    Adjusted operating expense
    $838 million to $853 million
    high materiality
    High
    Annualized expense savings from strategic realignment
    $40 million to $50 million
    medium materiality
    High
    Capital expenditure
    $98 million to $108 million
    high materiality
    High
    Depreciation and amortization expenses
    $54 million to $58 million
    medium materiality
    High
    Effective tax rate on adjusted earnings
    27.5% to 29.5%
    medium materiality
    High
    Net interest income (net of expense)
    $8 million to $9 million
    low materiality
    High

    Segment performance

    8
    SegmentRevenueYoYQoQMargin
    Derivatives
    Record quarter, driven by proprietary index options and multi-list products. Strong retail engagement, especially after Pattern Day Trader rule repeal.
    Index options ADV: 6.2 million contracts (up 32% YoY)SPX options ADV: 5.1 million contracts (up 40% YoY)SPX 0DTE options ADV: 3.1 million contractsMini SPX options ADV: 195,000 contracts (up >80% YoY in Q2)Global trading hours contracts: 189,000 contracts
    		$413 million30%——
    Cash and Spot Markets
    Steady growth across Europe and Asia Pacific and Global FX, and record revenues in North American Equity segment.
    		—22%——
    Data Vantage
    Growth was broad-based with market data and access services, Cboe Global indices, and risk and market analytics all posting double-digit gains.
    New subscription and unit sales contribution to growth: 84%International sales: 50% of quarter sales
    		$178 million15%——
    Options
    Another record quarter, driven by strong volumes and mix shift.
    Net transaction and clearing fees: up 33%Total options ADV: 26%Index options volume: 32%Multi-list options volume: 24%Revenue per contract: up 6% YoYMix shift towards index optionsIndex options rate per contract: up 3%
    		—30%——
    North American Equities
    Record net revenue for the segment, driven by stronger industry volumes and improved net capture rates.
    Net transaction and clearing fees: up 37%
    		—17%——
    Europe and APAC
    Driven by stronger industry volumes and improved net capture, despite market share easing slightly.
    Constant currency growth: 18%Net transaction and clearing fees: up 31%Nontransaction revenues: up 9%
    		—20%——
    Futures
    Primarily on higher market data fees, while transaction clearing fees held steady.
    		—2%——
    Global FX
    Driven by continued gains in average daily notional value and net capture.
    Average daily notional value: up 8%Net capture: up 6%
    		—17%——

    Operational metrics

    31
    Adjusted diluted EPS
    $3.56up 45% YoY
    Q2 FY26
    Adjusted operating expenses
    $217 millionup 2% YoY
    Q2 FY26
    Adjusted operating EBITDA
    $528 millionup 37% YoY
    Q2 FY26
    Adjusted operating EBITDA margin
    72.2%expanded 6.4 percentage points
    Q2 FY26
    Total options ADV
    26%YoY
    Q2 FY26
    Index options ADV
    6.2 millionup 32% YoY
    Q2 FY26
    SPX options ADV
    5.1 millionup 40% YoY
    Q2 FY26
    SPX 0DTE options ADV
    3.1 millionup 11% MoM in June
    Q2 FY26
    Mini SPX options ADV
    195,000up >80% YoY
    Q2 FY26
    Global trading hours contracts
    189,000
    Q2 FY26
    Revenue per contract (options)
    6%YoY
    Q2 FY26

    Result of continued mix shift towards index options.

    Index options rate per contract
    3%increase
    Q2 FY26
    Average daily notional value (Global FX)
    8%increase
    Q2 FY26
    Net capture (Global FX)
    6%increase
    Q2 FY26
    New subscription and unit sales contribution to Data Vantage growth
    84%
    Q2 FY26

    Remainder came from pricing changes.

    International sales (Data Vantage)
    50%
    Q2 FY26

    Of the quarter's sales coming from customers outside the U.S.

    Share repurchase
    $33 million
    Q2 FY26

    Part of opportunistic share repurchase activity.

    Dividend payment
    $76 million
    Q2 FY26
    Total capital returned to shareholders
    $108 million
    Q2 FY26

    Combined with share repurchases and dividends.

    Adjusted cash
    $2.3 billion
    Q2 FY26
    Leverage ratio
    0.7x
    Q2 FY26
    U.S. options annual growth
    over 20%
    since 2019

    More than tripling volumes in 7 years.

    U.S. options daily volume
    nearly 71 million
    Q2 FY26
    Options Institute class registrations
    173%QoQ
    Q2 FY26
    SPX options ADV annual growth
    roughly 30%
    since 2021
    U.S. equity market cap
    $75 trillion
    June 2026
    S&P 500 indexed/benchmarked assets
    $20 trillion
    current

    Globally.

    U.S. household financial assets annual growth
    6%
    last 3 decades
    Cboe Australia net revenue contribution
    $20 million
    through July

    Prior to expected Q3 sale.

    Cboe Australia Data Vantage net revenue contribution
    $17 million
    through July

    Prior to expected Q3 sale.

    Debt tranche maturing
    $650 million
    Q1 2027

    Expected to repay with cash on hand.

    Product announcements

    3
    ProductTypeDetails
    Cboe Predictslaunch
    Company-specific KPI productsroadmap
    Cash equities tradingexpansion

    Deals & partnerships

    1
    Not statedDefinitive agreement to sell Cboe Canada and Cboe Australia.

    Will continue operating both entities until close, subject to closing conditions and regulatory approval. Cboe Canada remains part of 2026 guidance until timing clarity.

    Risks & headwinds

    3
    Regulatory approval for company-specific KPI productsH2 September, early October launch

    pending regulatory approval

    Mitigation: Working closely with SEC staff, filing is open for comment.

    Inflationary pressure on hardware purchasesFY26

    CapEx guidance increases to $98 million to $108 million from $73 million to $83 million

    Mitigation: Opportunistically pulled forward hardware purchases to lock in lower costs.

    Volatility in share price impacting buybacksQ2 FY26

    most notable decline occurred in the final weeks of June

    Mitigation: Ability to transact in open market limited by quarter-end reporting; would have been more aggressive if not for limitations.

    What to watch in Q3 FY26

    5

    Company-specific KPI product launch

    H2 September, early October
    CurrentFiled with SEC in July, targeting 23 companies.
    TargetSuccessful launch and initial adoption.

    Why it matters

    Represents a key new product category for Cboe, expanding its derivatives franchise into event and prediction markets, potentially attracting new investor segments.

    We've taken the first step by filing with the SEC in July, to list these products with an initial focus on 23 of the most actively traded U.S. companies. That filing remains subject to regulatory approval but we see a variety of use cases that span both our institutional and retail customer bases for these products.

    Q&A highlights

    8

    How do options compare to perpetual futures, especially for retail, and where is the overlap? What's the mix of sophisticated vs. less sophisticated retail trading?

    Options offer defined risk and convexity, unlike linear perpetual futures which have unbounded downside. Perps emerged from crypto for leveraged exposure without expiration, but options serve different needs (hedging, income, volatility management). Over 95% of 0DTE trades are defined risk strategies (55% spreads). Cboe views perps as complementary, not a direct substitute, and may expand continuous futures where demand exists. Retail demand is broad, with a much larger ecosystem than futures.

    “Perps offer no expiration date. So you can hold an underlying position indefinitely. This really is contrary to 0DTE contracts that expire the day you trade them. Perps do provide leverage, but it's in the form of linear exposure so that the market moves, whether it's for or more importantly, against your position gains and losses move proportionally and the amount of leverage offer really just dictates how quickly your gains and losses move. And so options, as we've mentioned, offer that complexity and really that defined risk exposure.”

    asked by Ben Budish · answered by Robert Hocking

    2 min read7 chapters

    Detailed Narrative

    01

    Record Performance and Broad-Based Growth

    Cboe achieved record net revenue of $732 million, up 25% year-over-year, and adjusted diluted EPS of $3.56, up 45%. This strong performance was broad-based, with double-digit net revenue growth across all major categories and year-over-year growth in all five company segments, demonstrating effective execution of the company's strategy.

    02

    Derivatives Strength and Retail Engagement

    The derivatives business delivered a record $413 million in net revenue, a 30% increase, primarily driven by index options, which saw ADV climb 32% to 6.2 million contracts. Retail engagement, particularly in SPX 0DTE options, increased following the repeal of the Pattern Day Trader rule, with retail share of SPX 0DTE ADV rising to 57% in June and Mini SPX ADV surging over 80% year-over-year.

    03

    Expansion into Event and Prediction Markets

    Cboe launched Cboe Predicts, binary options on the Mini S&P 500 Index, and filed with the SEC to list company-specific KPI products on 23 actively traded U.S. companies. These initiatives leverage Cboe's market infrastructure to offer simple, outcome-based products, aiming to attract a broader investor base and potentially lead to more sophisticated options strategies.

    04

    Global Clearing and Regulatory Alignment

    The company filed for temporary SEC registration as a covered clearing agency and achieved CFTC Subpart C compliance, supporting its treatment as a qualifying central counterparty. These efforts are designed to enable product innovation, particularly for new options and futures offerings, and are complementary to the existing OCC clearing model.

    05

    Cash and Spot Markets Innovation

    Net revenue in cash and spot markets grew 22%, with North American Equities achieving record net revenue and Global FX increasing 17%. Cboe plans to expand cash equities trading to a 23x5 basis by December, with a long-term goal of 24/7 trading, aligning with evolving market structure and supporting the proposed recision of Rule 611.

    06

    Data Vantage Momentum

    Data Vantage net revenue increased 15% year-over-year, driven by strong new unit and subscription trends, with 84% of growth from new sales and 50% of sales from international customers. This segment continues to benefit from increased connectivity demand to options exchanges and strong demand for proprietary data sets.

    07

    Strategic Repositioning and Future Growth

    Cboe has repositioned its resources towards core businesses and high-growth areas, aligning with secular trends like the dominance of the U.S. equity market, growing retail participation, and the rise of options trading. The company aims to leverage these trends for long-term shareholder growth through continued product innovation and market expansion.

    AI-generated summary of the company’s earnings call. Not investment advice.