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Tradeweb (TW) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 30, 2026

Source: earnings call transcript

Executive summary

Tradeweb Q2 FY26 — Record Revenue and Strong Electronification Across Markets

Tradeweb delivered a strong second quarter with record revenue and expanded margins, driven by deep client engagement and accelerating electronification across its global markets. The company continues to invest in AI-powered solutions like TARA and AIEX, and frontier markets, aiming to capitalize on structural tailwinds such as sustained government debt issuance and the ongoing shift to electronic trading, positioning itself for durable long-term growth. The recent M&A activity in the credit market is viewed as a validation of Tradeweb's strategic focus and competitive advantage.

Highlights

5

  • Generated $559 million in revenue, the second highest quarterly revenue in company history, up 9% year-over-year (8.3% constant currency).

  • International revenues grew 14% year-over-year, contributing 65% of overall revenue growth.

  • Adjusted EBITDA margin expanded by 24 basis points year-over-year to 54.4%.

  • Institutional U.S. Treasuries revenues increased nearly 15% year-over-year, with over 50% electronic market share for the ninth consecutive quarter.

  • Global Swaps revenues were up 13% year-over-year, with core risk market share reaching a record 24.1%, up 207 basis points year-over-year.

Concerns

4

  • Wholesale U.S. Treasury revenues declined 1% year-over-year due to softness in wholesale streaming.

  • Retail credit channel revenues were down 22% year-over-year, primarily reflecting better relative yields in other products.

  • Cash credit average fees per million decreased 11.4% due to mix shift away from higher-fee products.

  • Long tenor swaps average fees per million were down 10.3% due to mix shift within currencies and lower duration.

Guidance & targets

CategoryTargetConfidence
Adjusted expenses
top half of the initial guidance range of $1.1 billion to $1.16 billion
high materiality
High
Adjusted EBITDA and operating margin expansion
expansion compared to 2025
high materiality
High
Other revenue run rate
reasonable quarterly run rate for the remainder of the year
medium materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Rates
Strong organic growth across swaps, global government bonds, and mortgages. U.S. Treasuries outperformed overall industry volume growth by roughly 300 basis points. Global Swaps delivered its second highest quarterly revenues.
U.S. Treasuries market share: 22.5% (up 100 bps YoY)Institutional U.S. Treasuries revenue growth: nearly 15% YoYElectronic institutional U.S. Treasuries share: >50% (9th consecutive quarter)Basis and multi-leg trades ADV growth: >40% YoYWholesale U.S. Treasury revenue growth: -1% YoYGlobal Swaps revenue growth: 13% YoYGlobal Swaps core risk market share: 24.1% (up 207 bps YoY from 22.5% in Q2 FY25)Swaps market electronification: ~30%
————
Credit
Performance reflected continued strength across international and U.S. institutional credit, offset by weakness in municipal bonds and the retail credit channel. The company saw continued success in expanding its RFQ presence and strong growth in portfolio trading.
International credit growth: strong double-digitU.S. institutional credit growth: strong double-digitMunicipal bonds revenue: weaknessRetail credit channel revenue growth: -22% YoYU.S. credit block share: up over 115 bps YoYBlock ADV growth (IG and high yield): >30% YoYInstitutional RFQ ADV growth: 15% YoYPortfolio trading ADV growth: >30% YoYAllTrade volume: >$225 billionAllTrade ADV growth: >13% YoYAll-to-all ADV growth: >25% YoYDRFQ ADV growth: >30% YoYEM credit revenue growth: 20% YoY
—low single-digit——
Equities
Clients are increasingly embracing automated trading workflows. ETFs posted strong revenue growth despite a normalization in market volatility. The company achieved record institutional equity derivative revenues.
ETFs revenue growth: >10% YoYAIX average daily trades growth: >45% YoYU.S. ETFs AIX growth: triple-digitEuropean ETFs AIX growth: double-digitInstitutional equity derivative revenues growth: 20% YoY
————
Market Data
Revenue growth was driven by the LSEG market data contract and proprietary data products.
—>20% YoY——
International
International revenues scaled higher with broad-based strength across all four asset classes from international clients.
Contribution to overall revenue growth: 65%
—14% YoY——

Product announcements

ProductTypeDetails
SNAP+update
TARA (AI-powered trading assistant)launch
Electronic spread tradinglaunch

Deals & partnerships

LSEG Market data contract

Contract for market data.

Canton network Commercial relationship for super validator fees and technology enhancements.

Revenue tied to periodic technology enhancements performed for retail clients and super validator fees associated with the commercial relationship.

Risks & headwinds

Market volatility moderation Q2 FY26

U.S. Treasury volatility down 20% from March levels in Q2 FY26.

Mitigation:Tradeweb's performance was driven by deeper client engagement and electronification, not single episodes of volatility.

Difficult prior-year comparison Q2 FY26

April revenues down low single digits against a strong April 2025 (benefiting from exceptional volatility).

Mitigation:Overall Q2 revenue still compounded to 9% growth, underscoring business durability.

Intense competition in wholesale U.S. Treasury and credit markets Q2 FY26

Wholesale U.S. Treasury revenues declined 1% YoY.

Mitigation:Broadening execution capabilities, introducing new protocols, expanding liquidity network, and deepening client relationships to differentiate beyond price.

Mix shift in fee per million Q2 FY26

Long tenor swaps average fees per million down 10.3%; cash credit average fees per million decreased 11.4%.

Mitigation:Focus on strategic growth areas and continued electronification in credit, despite mix shift away from higher-fee products.

Weakness in municipal bonds and retail credit channel Q2 FY26

Retail credit channel revenues down 22% YoY.

Mitigation:Primarily reflecting better relative yields available in other products.

Compliance rule adjustments for AI tools Ongoing

New AI tools like TARA are 'forcing clients... to revisit and rewrite compliance rules'.

Mitigation:Early adoption of TARA has been encouraging, and Tradeweb is putting significant effort into this space.

What to watch in Q3 FY26

Adjusted expenses growth

H2 FY26
Current 14.8% (H1 FY26)
Target Slower expense growth relative to prior year comparisons

Why it matters

Indicates management's ability to balance growth investments with margin expansion.

We expect the second half to show slower expense growth relative to the prior year comparisons.

Find out whether TW delivers this. Inve re-checks your case every morning.

Q&A highlights

How does Tradeweb view the potential opportunities and risks from the announced acquisition of MarketAxess by ICE, particularly in credit and rates?

Billy Hult sees the acquisition as a validation of the credit fee pool and welcomes rational competition. He emphasizes Tradeweb's strong position as a trusted market venue, leveraging data, workflow, and automation, especially with the rise of non-bank liquidity providers. He believes technology will drive more transparency and a 'winner takes most' scenario, where Tradeweb is well-positioned.

“We see it as a validation of the fee pool and credit to start with, Alex. And we do welcome, and I say this just like very clearly, like we welcome all of the time, like rational and commercial competition in the space.”

asked by Alex Blostein · answered by William Hult

2 min read 5 chapters

Detailed narrative

Market Dynamics and Electronification Trends

Tradeweb's strong performance in Q2 FY26 reflects deeper client engagement and broader adoption of electronic trading, rather than being solely driven by market volatility. The company identifies structural tailwinds from sustained government debt issuance and the ongoing migration from voice to electronic execution across both institutional and wholesale channels. Management believes AI, automation, and data will accelerate the electronification of financial markets, enabling clients to discover liquidity more effectively, make better decisions, and operate with greater efficiency.

AI and Technology Investment Strategy

Tradeweb is actively investing in analytics, execution, and post-trade workflows, exploring new opportunities at the intersection of traditional finance and emerging technologies. Their intelligent automation platform, AIEX, now processes 45% of all institutional trades. New AI-powered tools like TARA, a trading assistant, and enhancements to SNAP+ are being introduced to augment judgment and provide instant insight generation from vast data sets, moving beyond traditional rules-based automation. These investments are aimed at creating durable long-term growth opportunities.

International Growth Momentum

International revenues continue to scale significantly, growing 14% year-over-year and contributing 65% of Tradeweb's overall revenue growth in Q2 FY26. This robust performance was broad-based, with growth observed across all four asset classes (rates, credit, equities, and money markets) from international clients, particularly in Europe, APAC, and emerging markets. This highlights the success of strategic initiatives in these regions.

Competitive Landscape and Credit Market Opportunity

Management views the announced acquisition of MarketAxess by ICE as a validation of the credit market's fee pool and an opportunity for Tradeweb. The company emphasizes its role as a trusted market venue, leveraging data, workflow, and automation. With the rise of non-bank liquidity providers and the need to balance their needs with those of traditional partner banks, Tradeweb believes its approach to solving for complexity and risk trades positions it strongly. They anticipate technology will drive increased transparency and a 'winner takes most' dynamic in the credit space.

Frontier Markets and Capital Allocation

Tradeweb is placing important bets in frontier spaces, including digital assets, tokenization, and prediction markets like Kalshi. While not seen as disruptive to core fixed income, these areas offer potential for expansion, particularly in the retail sector. The strategy involves making minority investments to gain optionality without heavy capital commitment, waiting for regulatory clarity and market development before considering full-scale acquisitions. The company maintains a strong cash position with $1.5 billion in excess cash, prioritizing organic growth and M&A over share repurchases.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.