Cboe Global Markets reports record Q3 earnings, plans to sell Australian and Canadian operations

CHICAGO - Cboe Global Markets reported record third-quarter financial results on Friday while announcing plans to sell its Australian and Canadian equities businesses as part of a strategic realignment. The company, which has maintained dividend payments for 16 consecutive years according to InvestingPro data, continues to show financial strength despite trading slightly above its Fair Value.

The derivatives and securities exchange operator posted record quarterly net revenue of $605.5 million, up 14% from the same period last year. Diluted earnings per share reached a record $2.85, a 38% increase from the third quarter of 2024, while adjusted diluted EPS grew 20% to $2.67. This performance aligns with broader trends, as InvestingPro data shows Cboe has achieved 18.99% revenue growth over the last twelve months, with 13 analysts revising their earnings expectations upward for the upcoming period.

Cboe’s derivatives business drove much of the growth, with options net revenue increasing 19% to $380.8 million, reflecting a 26% rise in total options average daily volume. The company’s options exchanges captured 30.9% market share during the quarter, up from 30.5% a year earlier.

"This strategic realignment of our business portfolio and human capital ensures Cboe is well positioned to succeed in a dynamic and evolving market and supports our long-term vision to be a global derivatives leader," said Craig Donohue, Cboe Global Markets Chief Executive Officer, in a statement based on the press release.

As part of its strategic realignment, Cboe announced it will initiate sales processes for Cboe Australia and Cboe Canada, discontinue U.S. and European corporate listings efforts, and reduce costs in several smaller business areas.

The company raised its 2025 organic total net revenue growth target to "low double-digit to mid-teens" from its previous "high single-digit" guidance. It also lowered its adjusted operating expense guidance to $827-842 million from $832-847 million.

Cboe expects the business realignment to have minimal impact on 2025 revenue but estimates it will eventually result in approximately 3% reduction in net revenue and 8-10% reduction in adjusted operating expenses.

"Our Australian and Canadian equities businesses have consistently performed well and earned a reputation for innovation, reliability, and customer service. We believe these businesses are well positioned for future growth under new ownership," said Chris Isaacson, Cboe Global Markets Executive Vice President and Chief Operating Officer.

The company paid cash dividends of $75.7 million during the quarter and had approximately $614.5 million remaining under its existing share repurchase authorizations as of September 30. InvestingPro data reveals Cboe has raised its dividend for 11 consecutive years, currently offering a 1.21% yield, while maintaining a strong current ratio of 1.57, indicating liquid assets exceed short-term obligations. Investors seeking deeper insights into Cboe’s financial health can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities.

In other recent news, Cboe Global Markets Inc. reported record net revenue of $587 million for the second quarter of 2025, representing a 14% increase compared to the same period last year. The company also experienced a 14% rise in adjusted diluted earnings per share (EPS), reaching $2.46. These financial results indicate robust performance for Cboe Global, although specific forecast data was not provided. Despite the absence of forecast figures, the positive financial outcomes reflect investor confidence in the company’s strategic advancements. No mergers or acquisitions were announced in the recent updates from Cboe Global. Additionally, no analyst upgrades or downgrades were reported in the latest developments. The focus remains on the company’s strong earnings and revenue growth, which are crucial for investors analyzing its financial health.

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