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    TW
    Earnings call· Jun 2026(Q2 FY26)

    Tradeweb Markets Q2 FY26 earnings call TW

    Jul 30, 2026 Source

    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

    3
    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

    5
    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——

    Operational metrics

    36
    Revenue
    $559 millionup 9% YoY
    Q2 FY26

    Second highest quarterly revenue in company history.

    Revenue
    $1.2 billionalmost matching all of 2022
    H1 FY26

    Total revenue generated in the first half of the year.

    June revenue growth
    >20% YoY
    June FY26

    Growth accelerated as the quarter progressed.

    Adjusted EBITDA margin
    54.4%up 24 bps YoY
    Q2 FY26

    Reflects balance of investing for growth and profitability.

    International revenue contribution
    65%
    Q2 FY26

    International revenues grew 14% YoY.

    International revenue as % of total
    44%
    Q2 FY26

    Approximately 30% of revenue base is denominated in non-USD currencies.

    Total trading revenues growth
    8%
    Q2 FY26

    Comprised of variable and fixed trading revenue growth.

    Other revenues
    $7.9 millionup 1% YoY
    Q2 FY26

    Driven by ICD-related marketing partnership revenue, partially offset by lower retail technology enhancements and Canton network fees.

    Net gain from strategic investments
    $7.3 million
    Q2 FY26

    From unrealized gains and losses across investments in digital assets, tokenization, and prediction markets.

    Net interest income
    $18 millionincreased
    Q2 FY26

    Due to higher cash balances, offsetting lower interest yields.

    Long tenor swaps average fees per million
    down 10.3%
    Q2 FY26

    Primarily due to mix shift within currencies and lower duration.

    Cash credit average fees per million
    decreased 11.4%
    Q2 FY26

    Primarily due to mix shift away from higher fee munis and retail credit towards lower fee European credit and portfolio trading.

    Adjusted expenses growth
    9.4%YoY
    Q2 FY26

    Continued investments in tech, digital assets, and client relationship development.

    Adjusted compensation costs growth
    1.6%
    Q2 FY26

    Higher headcount (up 10.3% YoY) and equity-based compensation largely offset by lower discretionary/performance-related compensation.

    Technology and communication costs increase
    38.9%
    Q2 FY26

    Due to investments in data strategy, infrastructure, and increased software costs, including AI.

    Adjusted professional fees growth
    17.9%
    Q2 FY26

    Due to an increase in tech consultants.

    Occupancy expenses increase
    39.1%
    Q2 FY26

    Primarily from increased rent due to new NYC headquarters and data center rent.

    Adjusted general and administrative costs increase
    4.9%
    Q2 FY26

    Primarily due to a pickup in travel and entertainment, partially offset by favorable FX movements.

    FX gain
    $0.7 millionvs $2.2 million loss in Q2 FY25
    Q2 FY26

    Favorable movements in FX resulted in a gain.

    Cash and cash equivalents
    $2.1 billion
    Q2 FY26 end

    Strong cash position.

    Canton coins held
    $1.6 billion
    Q2 FY26 end

    Strategic investment in Canton network.

    Quarterly dividend
    $0.14 per shareup 16.7% YoY
    Q2 FY26

    Declared by the Board for Class A and Class B shares.

    Share repurchases executed
    $189 million
    Q2 FY26

    Stepped up repurchases, taking advantage of stock price dislocation.

    Share repurchases deployed
    $200 million
    YTD Q2 FY26

    Total amount deployed in share repurchases year-to-date.

    Share repurchase authorization remaining
    $334 million
    as of June 30

    Aggregate share repurchase authorization remaining.

    Adjusted expenses growth
    14.8%
    H1 FY26

    Expense growth in the first half of the year.

    Margins expanded
    >30 bps
    H1 FY26

    Margin expansion in the first half of the year.

    Adjusted expenses growth
    11% to 14%
    FY26

    Expected growth rate for adjusted expenses for the full year, based on top half of guidance range.

    Expense base variable/discretionary
    45%
    current

    Percentage of the expense base that is variable and discretionary.

    Headcount growth
    10.3%YoY
    Q2 FY26

    Higher headcount contributed to compensation costs.

    AIEX institutional trades
    45%
    current

    Percentage of all institutional trades executed on Tradeweb that flow through AIEX.

    Average daily revenue growth
    low teensrelative to July 2025
    July FY26

    Preliminary strong performance for the start of Q3.

    Volume growth (Global Government Bonds)
    double-digitYoY
    July FY26

    Preliminary strong performance for the start of Q3.

    Volume growth (Global Interest Rate and Credit Default Swaps)
    double-digitYoY
    July FY26

    Preliminary strong performance for the start of Q3.

    Volume growth (Fully Electronic IG Credit)
    double-digitYoY
    July FY26

    Preliminary strong performance for the start of Q3.

    Volume growth (Global Equities)
    double-digitYoY
    July FY26

    Preliminary strong performance for the start of Q3.

    Product announcements

    3
    ProductTypeDetails
    SNAP+update
    TARA (AI-powered trading assistant)launch
    Electronic spread tradinglaunch

    Deals & partnerships

    2
    LSEGMarket data contract

    Contract for market data.

    Canton networkCommercial 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

    6
    Market volatility moderationQ2 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 comparisonQ2 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 marketsQ2 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 millionQ2 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 channelQ2 FY26

    Retail credit channel revenues down 22% YoY.

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

    Compliance rule adjustments for AI toolsOngoing

    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

    5

    Adjusted expenses growth

    H2 FY26
    Current14.8% (H1 FY26)
    TargetSlower 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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

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