Tradeweb Q2 2025 slides: Revenue jumps 26.7% as market share expands

Introduction & Market Context

Tradeweb Markets Inc . (NASDAQ:TW) presented its second quarter 2025 earnings results on July 30, 2025, revealing robust growth across all asset classes and continued market share gains in key segments. The electronic trading platform operator reported a 26.7% year-over-year increase in revenue, building on the momentum from its strong first quarter performance. Tradeweb’s stock closed at $138.31 on July 29, 2025, and showed minimal movement in pre-market trading following the earnings release, with a slight decline of 0.14% to $138.12.

Quarterly Performance Highlights

Tradeweb reported total revenue of $513.0 million for Q2 2025, representing a 26.7% increase year-over-year (24.7% in constant currency). This performance slightly exceeded the company’s Q1 2025 revenue of $510 million, demonstrating continued growth momentum.

As shown in the following chart of quarterly operating performance:

International revenues reached $215.2 million, growing 40.8% year-over-year (35.8% in constant currency), now representing approximately 42% of total revenue. Adjusted net income increased by 23.7% to $206.1 million, while adjusted diluted EPS grew 24.3% to $0.87, slightly improving from the $0.86 reported in Q1 2025.

Profitability metrics also showed improvement, with adjusted EBITDA margin expanding to 54.2% (+70 bps year-over-year) and adjusted EBIT margin reaching 50.7% (+104 bps year-over-year).

The revenue breakdown by asset class reveals strong performance across all segments, with particularly impressive growth in Money Markets:

Money Markets led growth with a remarkable 130.7% year-over-year increase, followed by Equities at 49.8%, Other revenue at 31.9%, Rates at 26.2%, Credit at 11.7%, and Market Data at 4.1%.

Growth Initiatives and Market Share Gains

Tradeweb continues to gain market share across key product segments, as illustrated in this overview of growth initiatives:

In Global Interest Rate Swaps (IRS), Tradeweb’s average daily volume (ADV) increased from approximately $736 billion in Q2 2024 to $887 billion in Q2 2025, driving a 14% increase in market share. U.S. Treasuries ADV grew from $200 billion to $250 billion, resulting in a 24% market share increase. U.S. Cash Credit market share expanded by 13% for investment grade and 42% for high yield bonds. Global ETF institutional ADV surged by 62% year-over-year.

The company’s credit business has shown consistent growth, with institutional client count increasing from 736 in Q2 2021 to 1,109 in Q2 2025, as shown in the following chart:

Tradeweb’s U.S. Request for Quote (RFQ) protocol ADV in credit grew from $1,168 million in 2021 to $3,055 million in 2025. Global Portfolio Trading ADV reached $3,324 million, while U.S. AllTrade and Net Spotting volumes hit $3,253 million and $3,541 million respectively in 2025.

In the Interest Rate Swaps segment, Tradeweb has made significant progress in emerging markets:

Emerging Market (EM) Swaps ADV grew nearly tenfold from $4.9 billion in the first half of 2021 to $43.6 billion in the first half of 2025. Similarly, Swaps RFM (Request for Market) ADV increased from $3.7 billion to $47.0 billion over the same period.

Financial Analysis

A detailed breakdown of Tradeweb’s Q2 2025 financial performance reveals strong results across key metrics:

Fixed trading revenue reached $93.821 million, while variable trading revenue totaled $380.879 million. Adjusted expenses increased by 24.1% year-over-year to $252.649 million, primarily driven by higher employee compensation and benefits, which rose to $168.761 million.

The company’s fees per million (FPM) varied significantly across asset classes, with Credit commanding the highest FPM at $45.82, followed by Equities at $18.68, Rates at $2.29, and Money Markets at $0.52. These differences reflect the varying liquidity profiles and trading characteristics of each asset class.

Capital Management and Future Outlook

Tradeweb maintains a strong financial position with $1.6 billion in cash and cash equivalents as of June 30, 2025, and an undrawn $500 million credit facility. The company’s trailing twelve months free cash flow reached $951.7 million, representing a 31.9% year-over-year increase.

As shown in the following capital management overview:

The Board of Directors declared a quarterly dividend of $0.12 per Class A and Class B share, representing a 20% increase year-over-year. This dividend increase matches the 20% hike announced in the previous quarter.

Tradeweb made strategic investments during the quarter, including co-leading a $135 million fundraising round for Digital Asset with DRW Venture Capital, contributing $20 million to the initiative. This investment signals Tradeweb’s commitment to exploring blockchain technology and digital asset infrastructure.

For the full year 2025, Tradeweb updated its guidance, projecting adjusted expenses between $1,000-1,050 million, acquisition and Refinitiv-related D&A of approximately $176 million, and capital expenditures between $99-109 million. The company expects LSEG Market Data Contract Revenue of around $90 million.

Strategic Initiatives

Tradeweb’s growth strategy continues to focus on expanding its global footprint, particularly in emerging markets, while enhancing its technological capabilities. The investment in Digital Asset underscores the company’s forward-looking approach to financial technology.

The company’s success in gaining market share across multiple asset classes demonstrates the effectiveness of its platform and the growing adoption of electronic trading in fixed income markets. With strong performance in both established markets like U.S. Treasuries and emerging segments like EM swaps, Tradeweb is well-positioned to capitalize on the ongoing electronification of global financial markets.

As trading volumes and market share continue to grow, Tradeweb’s scale advantages and network effects should further strengthen its competitive position, potentially leading to continued margin expansion and revenue growth in the coming quarters.

Full presentation:

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