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Introduction & Market Context
Cboe Global Markets (BATS:NYSE:CBOE) presented its second quarter 2025 earnings results on August 1, 2025, highlighting record revenue performance driven by strong growth in its options business and international operations. The company’s stock closed at $241.04 prior to the presentation, representing a modest decline of 0.26% for the day, but maintaining a position well above its 52-week low of $186.10.
Building on momentum from the first quarter, Cboe delivered robust financial results amid favorable market conditions for derivatives trading, particularly in its flagship S&P 500 (SPX) options products. The company’s strategic focus on global expansion and data services continued to yield positive results, with significant growth in Europe and Asia Pacific regions.
Quarterly Performance Highlights
Cboe reported record net revenue of $587 million for Q2 2025, representing a 14% increase year-over-year. Adjusted earnings per share reached $2.46, also up 14% compared to the same period last year. The company’s adjusted operating EBITDA grew by 19% to $387 million, with an impressive adjusted operating margin of 65.8%.
As shown in the following financial summary chart:
The company’s revenue growth was driven primarily by strong performance in the options segment, which increased 19% year-over-year, and the Europe and Asia Pacific segment, which surged 30%. The Global FX business also showed strong momentum with 19% growth, while North American Equities remained flat. The Futures segment was the only area of weakness, declining 14% compared to Q2 2024.
The following breakdown illustrates revenue performance across all business segments:
Cboe’s Data Vantage business, which includes market data, analytics, and indices, continued its steady growth trajectory with an 11% year-over-year organic increase in net revenue, reaching $155.1 million for the quarter. The company reaffirmed its 2025 organic growth target of mid to high single digits for this segment.
The Data Vantage revenue growth is illustrated in this chart:
Segment Performance Analysis
The options segment remained Cboe’s primary growth driver, benefiting from both cyclical market conditions and secular trends in derivatives trading. Total (EPA:TTEF) index options average daily volume (ADV) reached 4.7 million contracts, up 17% year-over-year, while SPX options ADV grew 21% to 3.7 million contracts.
Particularly notable was the continued expansion of zero days to expiration (0DTE) options trading, which saw ADV increase 45% year-over-year to 2.1 million contracts. This growth reflects increasing adoption by both retail and institutional investors, with 0DTE customer ADV showing compound annual growth rates of 50% for individual investors and 43% for institutional investors since 2020.
The following chart demonstrates how Cboe’s derivatives business is aligned with both cyclical and secular market trends:
In the international arena, Cboe’s Europe and Asia Pacific segment delivered exceptional performance with 30% revenue growth. Key highlights included Cboe Europe maintaining its leading market share position, while Cboe Clear Europe grew its equities market share to 39.5%. In Australia, average daily notional value increased 25% to $1.0 billion.
The company’s global growth strategy is outlined in this slide:
Strategic Initiatives and Growth Drivers
Cboe’s strategic focus remains centered on three key pillars: optimizing core businesses, driving organic growth outside core operations, and maintaining disciplined capital allocation. The company continues to leverage its strong position in derivatives markets while expanding its global footprint and data services offerings.
The Data Vantage portfolio represents a significant growth opportunity, with approximately 45% of new data sales occurring outside the U.S. and about 85% of Cboe Global Cloud incremental revenue coming from outside the Americas. The company is focusing on delivering comprehensive solutions for real-time, data-enabled global risk analytics and expanding its index creation and calculation services.
Cboe’s capital allocation strategy balances investments in growth initiatives with consistent returns to shareholders. In Q2 2025, the company returned $66.4 million to shareholders through dividends and an additional $35.3 million through share repurchases.
The following slide illustrates Cboe’s approach to capital allocation:
Financial Outlook and Guidance
Cboe maintained its 2025 guidance, projecting mid to high single-digit organic growth for its Data Vantage business and high single-digit growth for total organic net revenue. The company expects adjusted operating expenses (excluding amortization of acquired intangible assets) to range between $832 million and $847 million, with capital expenditures between $75 million and $85 million.
The company’s adjusted operating expenses for Q2 2025 increased 8% year-over-year to $213.3 million, primarily driven by higher compensation and benefits costs, which rose 10% to $127.3 million. Technology support services expenses increased 9% to $26.7 million, while professional fees and outside services decreased 4% to $24.8 million.
Looking ahead, Cboe remains focused on capitalizing on secular growth trends in derivatives trading, expanding its global presence, and enhancing its data and analytics offerings. The company’s strong financial position and disciplined approach to capital allocation provide a solid foundation for continued growth and shareholder value creation.
Full presentation:
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