Tradeweb Q1 2025 slides: revenue jumps 24.7%, international growth accelerates

Tradeweb Markets Inc . (NASDAQ:TW) presented its first quarter 2025 earnings results on April 30, showing continued strong performance with revenue growth of 24.7% year-over-year. The electronic trading platform operator reported particularly robust international expansion and improvements in key operating margins.

Quarterly Performance Highlights

Tradeweb reported Q1 2025 revenue of $509.7 million, representing a 24.7% increase from the same period last year (25.8% on a constant currency basis). The company’s international revenue showed exceptional growth, reaching $211.8 million, up 37.0% year-over-year.

"Our first quarter results demonstrate Tradeweb’s continued momentum across all major business segments," said Billy Hult, Chief Executive Officer, according to the presentation materials.

Adjusted net income rose to $205.7 million, a 22.5% increase year-over-year, while adjusted diluted earnings per share reached $0.86, up 21.1% compared to Q1 2024.

As shown in the following summary of key financial metrics:

The company also reported improved profitability, with adjusted EBITDA margin expanding to 54.6%, an increase of 88 basis points year-over-year. Similarly, the adjusted EBIT margin improved to 51.2%, up 116 basis points from the prior year.

Detailed Financial Analysis

Tradeweb’s revenue growth was broad-based across asset classes, with particularly strong performance in rates and money markets. The company’s average daily volume (ADV) reached $2,547 billion in Q1 2025, representing a 33.7% increase year-over-year.

The breakdown of revenue by asset class shows significant growth across multiple categories:

The company’s trading revenues were primarily driven by variable revenues, which accounted for $379.9 million of the total $471.0 million in trading revenues. Fixed revenues contributed $91.1 million, while market data and other information services added $38.7 million to the total.

Tradeweb maintained disciplined expense management while continuing to invest in growth. Total (EPA:TTEF) adjusted expenses for the quarter were $248.7 million, with employee compensation and benefits representing the largest component at $175.9 million.

Strategic Initiatives

Tradeweb highlighted several key growth initiatives that are driving its performance. The company continues to gain market share in global interest rate swaps, U.S. treasuries, U.S. cash credit, and global ETFs.

The following chart illustrates the progress in these strategic areas:

In the credit segment, Tradeweb is expanding its share in both U.S. investment grade and high yield markets, with compound annual growth rates of 19% and 11% respectively. The company’s portfolio trading average daily volume reached $3,180 million in Q1 2025.

The company’s credit growth initiatives are detailed below:

Similarly, in interest rate swaps (IRS), Tradeweb continues to gain market share across multiple currencies, with particularly strong growth in emerging markets swaps, which reached an ADV of $42,562 million in the three months ending March 2025.

Forward-Looking Statements

Tradeweb maintained a strong balance sheet with $1.31 billion in cash and cash equivalents at the end of Q1 2025. The company’s trailing twelve-month free cash flow grew 28.1% year-over-year to $833.6 million, demonstrating its strong cash generation capabilities.

The Board of Directors declared a quarterly dividend of $0.12 per share, an increase from the $0.10 per share reported in the previous quarter’s earnings.

For fiscal year 2025, Tradeweb provided guidance for adjusted expenses in the range of $970-1,030 million, with acquisition and Refinitiv-related depreciation and amortization expected to be approximately $176 million.

"We remain focused on executing our growth strategy while maintaining financial discipline," said Sara Furber, Chief Financial Officer, according to the presentation materials. "Our strong cash flow generation provides us with the flexibility to invest in future growth opportunities while returning capital to shareholders."

Market Context

Tradeweb’s Q1 2025 results continue the strong momentum reported in previous quarters. In Q3 2024, the company had reported a 36.7% year-over-year revenue increase to $449 million, indicating that while growth remains robust at 24.7% in Q1 2025, the pace has moderated somewhat.

The company’s stock closed at $137.38 on April 29, 2025, with a 52-week range of $101.03 to $152.65. In pre-market trading on April 30, the stock was down 1.73% at $135.01.

Tradeweb’s continued market share gains and strong financial performance demonstrate its ability to capitalize on the ongoing electronification of trading across multiple asset classes, positioning the company for sustained growth in the evolving financial markets landscape.

Full presentation:

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