Tel Aviv Stock Exchange reports strong Q2 with record margins

Investing.com -- The Tel Aviv Stock Exchange (TASE) reported a strong second quarter for 2025 on Wednesday, with adjusted EBITDA of ILS 72 million, representing a 56% increase year-over-year and resulting in a record 52.6% adjusted margin.

Revenue grew 29% year-over-year to ILS 136 million, exceeding estimates by ILS 3 million. This growth was primarily driven by the clearinghouse segment, where balances are 21% higher compared to when guidance for price increases was initially provided in July 2024.

Expenses came in ILS 8 million below estimates, partly due to a lower compensation ratio of 29% versus the estimated 35%.

Management indicated that the second quarter expense trajectory represents a reasonable run rate for the remainder of the year.

Non-transactional revenues continued to perform well at ILS 87 million, up 31% year-over-year, marking the eighth consecutive quarter of meeting or exceeding the 10-12% five-year CAGR target.

Clearinghouse revenues increased 63% year-over-year, with 38% generated from higher activity volumes and services offered.

Listing fees rose 16% year-over-year, with 7% attributed to an increase in companies paying annual levies and linkage of those levies to the Consumer Price Index.

Data distribution revenues grew 19% year-over-year, with a 9% increase from TASE index authorizations.

The exchange’s adjusted EBITDA margins of 52.6% were up 545 basis points from the first quarter. Estimates now project margins of 50.1% for fiscal year 2025, representing a 756 basis point increase year-over-year.

In June, TASE’s Board authorized an examination of strategic measures for its index business, including potential partial or full sale, or partnership with a leading international index operator or financial institution.

The exchange cited a desire to access a global distribution platform to address increasing international demand for its indices.

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