Tradeweb Q2 revenue rises but slightly misses estimates
Tradeweb Q2 revenue rises but slightly misses estimates
Overview
Electronic trading platform's Q2 revenue rose 9% but slightly missed analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company raised quarterly dividend by 16.7% and repurchased $188.9 mln in shares
Outlook
Tradeweb maintains full-year 2026 adjusted expense guidance of $1.1 bln to $1.16 bln, trending toward the top half
Company expects 2026 acquisition and Refinitiv-related depreciation and amortization expense of $160 mln
Tradeweb forecasts 2026 LSEG market data contract revenue of $105 mln
Result Drivers
VOLUME GROWTH - Q2 saw record average daily volumes in rates futures, U.S. high yield credit, convertibles/swaps/options, and repurchase agreements, supporting revenue growth
AUTOMATION ADOPTION - Increased client use of Tradeweb AiEX and other automated trading tools contributed to higher trading activity
MARKET DATA REVENUE - Higher market data revenue was driven by amendments to the LSEG license agreement and growth in proprietary data sales
Company press release: ID:nBw1Gq943a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | $558.95 mln | $562.42 mln (11 Analysts) |
Q2 Adjusted EPS | Beat | $0.97 | $0.95 (13 Analysts) |
Q2 EPS |
| $0.85 |
|
Q2 Adjusted Net Income |
| $228.15 mln |
|
Q2 Adjusted EBITDA |
| $304.14 mln |
|
Q2 Adjusted EBITDA Margin |
| 54.40% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy"
Wall Street's median 12-month price target for Tradeweb Markets Inc is $122.00, about 12.8% above its July 29 closing price of $108.18
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 28 three months ago
Reuters Recommended Reads
July 30 - LSEG narrows revenue forecast, says it had "constructive" dialogue with Elliott
July 30 - Virtu Financial Q2 revenue beats on market making segment growth
July 29 - Robinhood beats quarterly profit estimates as trading activity remains robust
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)