TASE Q2 2025 presentation: Revenue surges 29%, net profit jumps 73%

The Tel Aviv Stock Exchange (TASE) released its Q2 2025 investor presentation on August 5, revealing exceptional financial performance with substantial revenue growth and margin expansion across all key business segments.

Quarterly Performance Highlights

TASE reported Q2 2025 revenue of 136.1 million NIS, representing a 29% year-over-year increase. This strong top-line growth translated into even more impressive profitability metrics, with adjusted EBITDA rising 56% to 71.6 million NIS and adjusted net profit surging 73% to 44.4 million NIS.

The exchange’s basic earnings per share reached 0.478 NIS, an 82% increase compared to the same period last year, significantly outpacing the 40% EPS growth reported in Q1 2025.

As shown in the following chart of TASE’s Q2 2025 financial metrics:

The exchange’s profitability margins expanded considerably, with adjusted EBITDA margin reaching 52.6% and adjusted net profit margin improving to 32.6%. This margin expansion reflects TASE’s operational leverage, as expenses grew by only 9% year-over-year while revenue increased by 29%.

Detailed Financial Analysis

TASE’s revenue growth was broad-based across all major business segments. The company’s revenue composition for Q2 2025 shows a well-diversified business model, with 64% coming from non-transactional sources and 36% from transaction-based activities.

The following chart illustrates TASE’s Q2 2025 revenue composition:

Trading and clearing commissions, which accounted for 36% of total revenue, were driven by significant increases in trading volumes. Average daily turnover in shares reached 3.2 billion NIS, up 46% year-over-year, while derivatives trading volume increased by 24%.

The breakdown of trading and clearing commissions revenue shows shares representing the largest component at 39%, followed by mutual funds at 21% and derivatives at 14%:

Non-transactional revenue streams also showed strong growth. Clearing House services revenue increased by 63% year-over-year to 35.2 million NIS, while Data Distribution and Connectivity Services grew by 19% to 26.3 million NIS. Listing Fees and Levies rose by 16% to 25.1 million NIS.

On the expense side, TASE maintained disciplined cost management. Total (EPA:TTEF) adjusted expenses for Q2 2025 were 79.9 million NIS, up 9% year-over-year. Compensation expenses, representing 50% of total costs, were the largest component, followed by depreciation and amortization at 19% and computer and communications expenses at 16%.

Market Activity and Capital Raising

The exchange saw robust capital raising activity during Q2 2025. Corporate bond issuances reached 43.4 billion NIS, a 141% increase year-over-year, while equity raised totaled 2.6 billion NIS, up 138%.

Market capitalization across most segments showed significant growth, with shares up 53% year-over-year to 1,662 billion NIS, corporate bonds up 23% to 588 billion NIS, and mutual funds up 29% to 484 billion NIS.

The following chart provides an overview of TASE’s key market metrics:

First Half 2025 Performance

For the first half of 2025, TASE reported equally impressive results. Revenue reached 267.1 million NIS, a 25% increase compared to H1 2024. Adjusted EBITDA rose 41% to 133.5 million NIS, while adjusted net profit grew 52% to 81.3 million NIS.

The revenue composition for H1 2025 remained consistent with the quarterly breakdown, with trading and clearing commissions accounting for 37% of total revenue, clearing house services for 25%, data distribution and connectivity services for 19%, and listing fees and levies for 18%.

Market Context and Outlook

TASE’s strong Q2 2025 performance builds on the momentum established in Q1, when the company reported a 40% year-over-year increase in EPS to 0.39 NIS. The consistent growth trajectory has been reflected in TASE’s stock price, which closed at 6519 prior to this presentation, though it experienced a slight decline of 0.94% on the day of the announcement.

The exchange’s financial position remains solid, with excess capital of 449.3 million NIS and excess liquidity of 157.1 million NIS, providing a strong foundation for continued growth and potential strategic initiatives.

TASE’s ability to grow revenue across diverse business segments while maintaining cost discipline positions the exchange well for sustained profitability. The significant increases in trading volumes and capital raising activity indicate robust market dynamics in the Israeli financial markets, despite broader regional challenges.

As TASE continues to enhance its market infrastructure and service offerings, the exchange appears well-positioned to capitalize on increased market participation and activity, potentially driving further growth in the coming quarters.

Full presentation:

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