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Image source: The Motley Fool. Thursday, July 30, 2026 at 9:30 a.m. ET Head of Treasury, FP&A and Investor Relations - Ashley Serrao Chief Executive Officer - William Hult Chief Financial Officer - Sara Furber Operator: Good morning, and welcome to Tradeweb's Second Quarter 2026 Earnings Conference Call. As a reminder, today's call is being recorded and will be available for playback. To begin, I'll turn the call over to Head of Treasury, FP&A and Investor Relations, Ashley Serrao. Please go ahead. Ashley Serrao: Thank you, and good morning. Joining me today for the call are our CEO, Billy Hult, who will review our business results and key growth initiatives; and our CFO, Sara Furber, who will review our financial results. We intend to use the website as a means of disclosing material nonpublic information and complying with our disclosure obligations under Regulation FD. I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations and as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements related to, among other things, our guidance are forward-looking statements. Actual results may differ materially from these forward-looking statements. Information concerning factors that could cause actual results to differ from forward-looking statements is contained in our earnings release, earnings presentation and periodic reports filed with the SEC. In addition, on today's call, we will reference certain non-GAAP measures as well as certain market and industry data. Information regarding these non-GAAP measures, including reconciliations to GAAP measures, is in our earnings release and earnings presentation. Information regarding market and industry data, including sources, is in our earnings presentation. Now let me turn the call over to Billy. William Hult: Thanks, Ashley. Good morning, and thank you for joining our second quarter earnings call. We delivered another outstanding quarter, generating the second highest quarterly revenue in our history and building on the record performance we achieved last quarter. Through the first half of the year, we've generated nearly $1.2 billion of revenue, almost matching what we delivered in all of 2022. Just as importantly, our growth accelerated as the quarter progressed, with June revenue increasing more than 20% year-over-year. Unlike prior periods, this performance wasn't driven by a single episode of elevated market volatility. Instead, it reflects something more durable, deeper client engagement, broader adoption of electronic trading across our markets, and the benefits of investments we have made over many years in technology, workflows and connectivity to capitalize on structural opportunities. The backdrop of our business remains constructive. Even as the macro environment continues to be debated, clients are navigating a world shaped by changing interest rate expectations, persistent fiscal deficits, geopolitical developments, elections, regulation and rapid technological innovation. Primary issuance remained healthy across the U.S., Asia, Australia, the Middle East and South America, while Europe is showing encouraging signs of renewed activity. At the same time, there remains considerable uncertainty around the path of monetary policy, the global economy and increasingly, the role that artificial intelligence will play across industries. Markets continue to process these questions, and that ongoing debate is exactly what creates opportunity for our clients to manage risk, reposition portfolios and access liquidity through our global network. Looking ahead, we believe the future of Tradeweb will continue to be defined by evolution rather than disruption. Our leadership positions across multiple asset classes provide a unique foundation to embed greater intelligence across the trade life cycle. We believe AI, automation and data will accelerate the continued electronification of financial markets by helping clients discover liquidity more effectively, make better decisions and operate with greater efficiency. Data is becoming increasingly valuable, not simply as an input into algorithms, but as a foundation for better insights before, during and after every trade. We are continuing to invest across analytics, execution and post-trade workflows while exploring new opportunities at the intersection of traditional finance, emerging technologies and evolving market structure. Regardless of how markets evolve, our objective remains unchanged. We are focused on helping clients navigate increasingly complex markets with technology that simplifies workflows, enhances decision-making and delivers better outcomes. Diving into the second quarter, strong client activity and a risk-on environment drove 9% year-over-year revenue growth on a reported basis. Our international revenues continue to scale higher with 14% revenue growth as our strategic initiatives across Europe, APAC and EM continued to pay off. International really continued to fire on all cylinders for us this quarter, contributing 65% of our overall revenue growth. And importantly, that strength was broad-based as we saw growth across all 4 asset classes from our international clients. We continue to balance investing for growth and profitability as adjusted EBITDA margins expanded by 24 basis points relative to the second quarter of 2025. Turning to Slide 5. We produced the second highest quarterly revenues in our history across rates, credit and equities and market data. Our rates revenues were driven by continued organic growth across swaps, global government bonds and mortgages. Credit revenues were led by strength across global corporate bonds and credit derivatives. Money markets revenue growth was led by global repos and ICD. Equities were led by growth in global ETFs and equity derivatives. Finally, market data revenues were up over 20% year-over-year, driven by our LSEG market data contract and proprietary data products. Turning to Slide 6. I will provide a brief update on a few of our focus areas, U.S. Treasuries and ETFs, and then I will dig deeper into U.S. credit and global interest rate swaps. Starting with U.S. Treasuries. Following the pickup in average intraday volatility in March, market conditions began to moderate in the second quarter with volatility down 20% from March levels. Even in a more measured trading environment, we continue to outperform. Our second quarter market share increased to 22.5%, up 100 basis points year-over-year, leading to mid-single-digit revenue growth that outpaced overall industry volume growth by roughly 300 basis points. Looking ahead, we remain constructive on the long-term opportunity. Structural tailwinds continue to strengthen from sustained government debt issuance to the steady electronification of trading workflows. As clients increasingly migrate from voice to electronic execution across both our institutional and wholesale channels, we believe Tradeweb is exceptionally well positioned to capture that growth. Institutional U.S. Treasuries were once again a standout performer, with revenues increasing nearly 15% year-over-year, reflecting deeper client engagement and continued adoption of electronic workflows. Our competitive position remains strong. We surpassed 50% share in electronic institutional U.S. Treasuries for the ninth consecutive quarter and further widened our lead during the period. Our strategy is straightforward. First, we look to continue to win wallet share from clients trading electronically by demonstrating the value of our workflow, data and automation capabilities with AiEX serving as a key differentiator. Second, we are expanding our electronic addressable markets by bringing historically voice-based trading activity onto our platform. We're particularly encouraged by the momentum we are seeing in basis and multi-leg trades, 2 large and strategically important workflows that have traditionally remained predominantly voice-driven. Combined, average daily volume across these initiatives grew in excess of 40% year-over-year in the second quarter. And with a strong pipeline of clients and dealers, we believe momentum will continue to compound over time. Our wholesale U.S. Treasury saw revenues decline 1% as strength across our sweep protocol was more than offset by softness in our wholesale streaming offering. While competition remains intense, wholesale continues to remain a strategic priority for us. We believe our opportunity extends well beyond competing on price alone. By broadening our execution capabilities, introducing new protocols, expanding our liquidity network and deepening client relationships, we are building a more differentiated platform that we believe positions us well for long-term share gains. Turning to equities. We continue to see clients embrace more automated trading workflows as they seek to improve execution quality, efficiency and consistency. As ETFs become an increasingly important vehicle for portfolio construction and risk transfer, institutional investors are looking for solutions that can seamlessly combine liquidity, automation and intelligent execution across a broad range of market conditions. We believe that continues to be a meaningful opportunity for Tradeweb. Against that backdrop, ETFs posted revenue growth in excess of 10% year-over-year despite a normalization in market volatility. Client engagement continues to increase, and our AiEX automation solution continues to be a key differentiator. AiEX average daily trades were up over 45% year-over-year with triple-digit growth in U.S. ETFs and double-digit growth in European ETFs. Our efforts to broaden our equity presence beyond our flagship ETF franchise continue to pay off with record institutional equity derivative revenues up 20% year-over-year. Looking ahead, the pipeline remains strong as the benefits of our electronic solutions continue to resonate with our clients. We believe we are well positioned to capitalize on the long-term secular ETF growth story, not only directly within our equity offering, but also beyond it as ETFs change behavior indirectly across our fixed income business. We believe this differentiated position will become increasingly valuable over time. Turning to global credit on Slide 7. The business delivered low single-digit revenue growth during the quarter. That performance reflected continued strength across many of our strategic growth areas, including strong double-digit growth in international credit and U.S. institutional credit. Strength here was offset by weakness across municipal bonds and our retail credit channel, where revenues were down 22% year-over-year, primarily reflecting better relative yields available in other products. We continue to believe U.S. credit represents one of our most significant long-term growth opportunities. While portfolio trading and sessions remain important differentiators, we see considerable runway to expand our RFQ presence as a larger share of institutional credit trading migrates to electronic execution. As adoption continues to broaden across the market, we think our competitive advantage is increasingly being defined by workflow, data and automation rather than connectivity alone. Clients today are looking for technology that helps them source liquidity intelligently, minimize information leakage and achieve better execution outcomes. That is exactly where we continue to invest. During the quarter, we continued to enhance SNAP+, which leverages predictive analytics and proprietary trading data to help clients identify the most appropriate liquidity providers for each trade. We also introduced TARA, our AI-powered trading assistant, which combines Tradeweb proprietary data, liquidity insights and artificial intelligence to help clients quickly transform market information into actionable trading intelligence. This is a step change improvement from navigating multiple screens and manual workflows. Early feedback has been very encouraging, and we expect TARA'S capabilities to continue expanding as we incorporate client feedback and further embed AI across our platform. Our position within block trading also continues to strengthen, with record overall U.S. credit block share up over 115 basis points year-over-year in the second quarter with block average daily volume growth of over 30% year-over-year across IG and high-yield. Growth was broad-based across portfolio trading, RFQ and sessions, demonstrating the value of our multi-protocol approach. Just as importantly, our efforts to expand into RFQ are seeing continued signs of success, reaching another quarterly market share record, reinforcing the progress we're making in one of the largest opportunities within electronic credit. Specifically, institutional RFQ average daily volume grew 15% year-over-year with double-digit growth in both IG and high-yield. Portfolio trading also delivered another record quarter with average daily volume increasing more than 30% year-over-year with strong double-digit growth across both U.S. and international portfolio trading. Meanwhile, AllTrade generated the second best quarter in our history with over $225 billion in volume with average daily volume up over 13% year-over-year. Our all-to-all average daily volume grew over 25% year-over-year, and our DRFQ average daily volume grew nearly 30% year-over-year. We also continue to expand network participation, driving record responder rates in high-yield as we broaden liquidity across the platform. Looking ahead, we remain confident in the long-term outlook for global credit. Electronic trading continues to evolve beyond simply digitizing execution. Clients increasingly expect intelligent workflows that seamlessly combine liquidity, data, analytics and automation. We believe Tradeweb is uniquely positioned to deliver that integrated experience across protocols, products and regions. We are seeing that opportunity play out across our business. During the quarter, we launched electronic spread trading across European credit, further expanding our workflow offering in a differentiated fashion. We are also seeing strong momentum in EM credit, where revenues grew 20% year-over-year in the second quarter. While electronification in EM credit remains in its early stages, we continue to build on our established global network and broad EM product suite to support growing client adoption. Together, we believe these initiatives position us well to capture the increased adoption of electronic trading and credit. Moving to Slide 8. Global swaps delivered its second highest quarterly revenues, up 13% year-over-year. The performance was driven by a combination of strong client engagement across our global suite of currencies. Just as importantly, our core risk market share, which excludes compression activity and is the best indicator of our underlying franchise, reached another record, rising 207 basis points year-over-year. Total market share moved from 22.5% in the second quarter '25 to 24.1% in the second quarter '26. One of the strengths of swaps is its diversification. While it's often viewed as a monolithic product, it is really a collection of different currencies, instruments and protocols, each responding to its own macro and client dynamics. This quarter was a case in point. As central banks around the world, including the Federal Reserve, the ECB and Bank of Japan turned hawkish and reshaped monetary policy expectations, clients remained highly engaged in managing interest rate risk. Emerging markets extended their momentum, while our developed market franchise also stayed active, contributing to our second highest quarterly revenues overall. Taking a step back, the long-term picture has been one of steady structural growth. Over the past decade, the swaps market has expanded along 2 important dimensions: first, the amount of risk outstanding as measured by open interest has roughly doubled to a record; second, that risk changes hands approximately twice as frequently as it did 10 years ago. Together, these 2 trends have compounded into roughly 14% average annual growth in swap volumes over the past decade. Looking ahead, we believe those structural trends remain firmly in place. As governments and corporations continue to issue debt, the stock of outstanding risk should continue to grow. And with only around 30% of the swaps market trading electronically today, there is substantial room for growth as we look ahead. Tradeweb has steadily gained share in the global swaps market. Over the past 10 years, our swaps revenue has grown by more than 20% annually as we have expanded across emerging market swaps, strengthened our developed market franchise and continue to innovate across both the cleared and bilateral swaps market. Our RFM protocol continues to gain traction, and we're investing across automation, workflow and execution tools to help clients trade more intelligently and efficiently. Taken together, we believe global swaps remains one of our largest, diversified and most durable long-term growth opportunities across our business. Turning to Slide 10. Technology is helping to make financial markets more connected, more intelligent and more automated than at any point in their history. If there is a single thread running through our franchise, it is that our clients are increasingly relying on technology to make better decisions and execute with greater speed, precision and scale. We believe that trend is still in its early innings. Our best example of that evolution is AiEX, our intelligent automation platform. Since launching AiEX in 2012, automated trading activity has grown meaningfully. And today, 45% of all institutional trades executed on Tradeweb flow through AiEX. Adoption continues to broaden across regions and products, particularly in markets that historically have been less automated. What's exciting is that we believe automation itself is evolving. Historically, automation has been rules-based. Clients define the parameters, the AiEX executes those instructions with consistency and precision. More recently, we've introduced dynamic capabilities that adapt to changing market conditions in real time while remaining within those client-defined guardrails. The next chapter is even more compelling. We see AI moving beyond simply automating workflows to augmenting judgment. Rather than just executing predefined instructions, we believe AI has the potential to help clients answer increasingly complex questions. When is the optimal moment to trade? Which protocol is most likely to achieve the best outcome? How many dealers should participate? How should a portfolio be sequenced across products and markets? These are decisions that have traditionally relied on years of human experience, but increasingly can be informed by data, context and machine intelligence. This is where Tradeweb's competitive advantage becomes even more powerful. Every day, our network connects thousands of institutional participants across rates, credit, mortgages, ETFs, money markets and equities around the world, which creates one of the richest and most diverse sets of market intelligence anywhere in global fixed income and electronic trading. As AI becomes more capable, we believe the breadth of our network, the quality of our data and the trust our clients place in us will become increasingly valuable. And with that, let me turn it over to Sara to discuss our financials in more detail. Sara Furber: Thanks, Billy, and good morning. As I go through the numbers, all comparisons will be to the prior year period, unless otherwise noted. Slide 11 provides a summary of our quarterly earnings performance. As Billy recapped earlier, this quarter, we saw our second highest revenues of $559 million that were up 9% year-over-year on a reported basis and 8.3% on a constant currency basis given the weakening dollar. Notably, we delivered that growth even while lapping a difficult April comparison. Recall that April 2025 was one of our strongest months on record, benefiting from the exceptional volatility that followed the implementation of tariffs. Even with April revenues down low single digits against that backdrop, the quarter still compounded to 9% growth, underscoring the durability of the business across environments and the accelerating growth we saw through the quarter. We derived approximately 44% of our second quarter revenue from international clients and recall that approximately 30% of our revenue base is denominated in currencies other than dollars, predominantly in euros. Total trading revenues increased 8%, comprised of 9% variable trading revenue growth and 5% growth across fixed trading revenue. Rate fixed revenue growth was driven by the addition of dealers to our mortgage, swaps and U.S. government bond platforms, as well as existing dealers opting for higher fixed fee plans and some increases in minimum fee floors. Credit fixed revenue declined slightly due to a smaller dealer stepping away from the credit market. Other revenues of $7.9 million for the second quarter increased 1% year-over-year, driven by an increase from ICD-related marketing partnership revenue, which was partially offset by a slight decline in revenue tied to periodic technology enhancements performed for our retail clients, along with slightly lower super validator fees associated with our commercial relationship with the Canton Network. As a reminder, our other revenue line will remain variable from quarter-to-quarter, reflecting fluctuations in a number of factors, including the number of Canton Coins earned, the value of Canton Coins, the number of super validators in the network and periodic technology enhancements for retail clients. For modeling purposes, we believe the second quarter is a reasonable quarterly run rate for the remainder of the year, as super validator fees are expected to moderate with the addition of new validators to the Canton Network, reflecting the continued expansion and strengthening of the network. Second quarter adjusted EBITDA margin of 54.4% increased by 43 basis points on a reported basis when compared to our 2025 full year margins. Our net interest income of approximately $18 million increased due to higher cash balances, which offset lower interest yields. Lastly, GAAP results this quarter reflected a $7.3 million net gain from unrealized gains and losses across our strategic investments. As a reminder, this portfolio is designed to invest in emerging areas like digital assets, tokenization and prediction markets. So results here will fluctuate from quarter-to-quarter. Moving on to fees per million on Slide 12, we provide a highlight of the key trends for the quarter. You can see Slide 18 of the earnings presentation for the full detail regarding our fee per million performance this quarter. For long tenor swaps, average fees per million were down 10.3%, primarily due to mix shift within our currencies and lower duration. For cash credit, average fees per million decreased 11.4%, primarily due to a mix shift away from higher fee per million munis and retail credit and towards lower fee per million European credit and portfolio trading. Slide 13 details our adjusted expenses. At a high level, the scalability and variable nature of our expense base allow us to continue to invest for growth and grow margins. We have maintained a consistent philosophy here. Adjusted expenses for the second quarter increased 9.4% on a reported basis and 9.9% on a constant currency basis. During the second quarter, we continued investments in tech and communications, digital assets, tech consulting and client relationship development. Adjusted compensation costs grew 1.6% as higher headcount, which was up 10.3% year-over-year and higher equity-based compensation were largely offset by lower discretionary and performance-related compensation. Technology and communication costs increased 38.9%, primarily due to our continued investments in data strategy and infrastructure and increased software costs, including AI. Approximately $5.2 million of the increase was driven by investments in our data infrastructure strategy and higher reference data costs, both of which began in the second half of 2025. Adjusted professional fees grew 17.9% due to an increase in tech consultants as we continue to augment our offshore technology operations. Occupancy expenses increased 39.1%, primarily from increased rent due to the move to our new York City headquarters, which came into effect in the third quarter of '25 and data center rent expense. Adjusted general and administrative costs increased 4.9%, primarily due to a pickup in travel and entertainment, but partially offset by favorable FX movements. Favorable movements in FX resulted in a $0.7 million gain in the second quarter of '26 versus approximately a $2.2 million loss in the second quarter of '25. Excluding FX, adjusted general and administrative costs grew 22.2%. Slide 14 details capital management and our guidance. On our cash position and capital return policy, we ended second quarter in a strong position with approximately $2.1 billion in cash and cash equivalents, and free cash flow exceeding $1 billion for the trailing 12 months, representing strong year-over-year growth of approximately 13%. We also held approximately 1.6 billion Canton Coins with a fair value of approximately $230 million. With this quarter's earnings, the Board declared a quarterly dividend of $0.14 per Class A and Class B shares, up 16.7% year-over-year. During the quarter, we stepped up our share repurchases, buying back approximately 1.9 million shares for $189 million as we took advantage of the dislocation in our stock price. There was $334 million of aggregate share repurchase authorization remaining as of June 30. Turning to guidance for 2026. In light of our continued strong business momentum, we are maintaining our guidance for the adjusted expenses to trend toward the top half of the initial guidance range of $1.1 billion to $1.16 billion. We believe we can drive adjusted EBITDA and operating margin expansion compared to 2025 at either end of this range, although we expect the incremental margin expansion to be more muted as we continue to focus on balancing margin expansion with investing for the future. Specifically, we continue to invest in frontier markets and opportunities to expand electronification across Asia and emerging markets, as well as AI-related credit initiatives. We also continue to invest in technology that allows us to sustain and build on our leading platform. Some of these investments will take time to scale, but we continue to prize innovation and creating durable long-term growth opportunities. Now I'll turn it back to Billy for concluding remarks. William Hult: Thanks, Sara. As we close out the first half of the year, I want to step back and talk about where the franchise stands. Our clients have navigated a lot over the last 6 months. And through all of it, Tradeweb hasn't just held its ground, we've extended it, deepening relationships across many of the asset classes we serve. We tend to come out of complicated periods more relevant to our clients than when we went in because the harder the market gets, the more they lean into innovation. And the ways we can help them are only expanding, especially with AI. This is still a young shift, but clients are moving from experimenting with these tools to building them into their day-to-day faster than we could have expected even a year ago. My conviction is that the firms that pair the deepest liquidity with the smartest technology will set the pace from here, and we intend to be at the front of it. The same drivers that powered the first half, deeper client engagement and broader adoption of electronic trading are already carrying into the third quarter. With 2 important month-end trading days left in July, which tend to be some of our strongest revenue days, average daily revenue growth is up low teens relative to July 2025. The diversity of our growth remains a theme, as we are seeing a preliminary strong double-digit growth across rates, credit and equities. Specifically, we are seeing double-digit volume growth year-over-year across global government bonds, global interest rate and credit default swaps, fully electronic IG credit and global equities. Our IG and high-yield share is tracking below June levels. I would like to conclude my remarks by thanking our clients for their business and partnership in the quarter. I want to thank my colleagues for their efforts that contributed to the second highest quarterly revenues in our history. With that, I will turn it back to Ashley for your questions. Ashley Serrao: [Operator Instructions] Q&A will end at 10:30 a.m. Eastern Time. Operator, you can now take our first question. Operator: And the first question is going to come from Alex Blostein with Goldman Sachs. Alexander Blostein: So I appreciate it's obviously early, but I was hoping to get your perspective on potential shifts in the competitive landscape for your products from the announced acquisition of MarketAxess by ICE. In particular, curious if you think about both opportunities that could come on the back of any dislocation and customer moves whenever there is an integration versus potential risks, I guess, both in credit and to some degree, in rates. William Hult: Interesting times. Thanks for the question. Yes, so it's early. You're right about that. And obviously, as you know very well, like we know ICE. As you know, I like Jeff or I did, I should say, I still like him. He actually texted me this morning and said, sorry about this news coming out kind of as your great earnings are also coming out. So I accept your apology for the record, Jeff. I'm sure you're reading the transcript anyway. We see it as a validation of the fee pool and credit to start with, Alex. And we do welcome -- and I say this just like very clearly, like we welcome all of the time, like rational and commercial competition in the space. Ultimately, I think we feel very confident in our role as the trusted market venue that I think really ultimately understands the role that data plays in the relationship between the most important clients globally and their counterparties. And I think that's a really important thing to say. We're in a sweet spot from my perspective, and I think that makes us all like super excited at Tradeweb. We're in a sweet spot around credit, right? As you know very well, the hyperscalers continue to sell bonds, central banks are less active in the space. The traditional banks have had just lights out kind of earnings. At the same time, these nonbank liquidity providers are arriving en masse and in force in the credit space. That's a pretty good environment. And so as you know, like the market volumes have been growing. The pace of electronification continues to keep up and is increasing all along. And not surprisingly, what that means is like competition is here and has been arriving. And as always, there have been and there will be kind of winners and losers around competition. And you know this very well, the ethos of this company is we are market share takers kind of period. And so we see sort of 2 things from my perspective. I think we see the opportunity inside of credit for the wallet to be restored. We think we have a tremendous amount of opportunity to continue to invest in credit around the next chapter of growth, which we see as the use of technology, access to data and ultimately, I think something really important, which is the scalability of decision-making by our clients. We're going to be into a very, very interesting, I think, next chapter that I think is going to be defined by a few things. It's going to be the continued rise of the nonbank liquidity providers, the systematic players in credit. But that rise needs to be balanced, I think, with something like super important, which is the traditional partner banks, the legacy banks in the space. And those are the keys to, I think, ultimately, risk trading and has been a historic advantage from my perspective of Tradeweb. The impact of technology inside of credit isn't anything to be diminished. So to start with protocol innovations matter, and the market is becoming more sophisticated and ultimately more model driven. I think that plays to our strength. Do we get to a place where we get into this concept of kind of power law domination where winner takes most? I think so. And I think we're really, really well positioned to be that venue from my perspective as we get to this kind of like how we think about kind of virtuous cycle of data, automation solution, liquidity where liquidity begets liquidity. And I think this is a really important moment for us. I say this very clearly. Ultimately, those who create a better value proposition are going to get the share. And I can say that with like perfect confidence. And I think in a really interesting way, and I think an optimistic way, just around what's happening in our world, Alex, I think there's no fighting technology. And I think that's like a headline that should be out there and that we should think about. Everything in credit is pointing towards ultimately more transparency. And ultimately, I think that's the direction of travel. And from our perspective, that's the thing that makes us extremely excited about where we are in credit. So thanks a lot. Good to hear your voice. Interesting morning, as always. Operator: And the next question is going to come from Tyler Mulier with William Blair. Tyler Mulier: There have been concerns around perpetuals potentially disrupting parts of the fixed income market. Are there any areas where you see genuine displacement risks and any areas where you could actually benefit? William Hult: Yes. It's a good question. I think I'm old enough to -- I think I -- I received that, I forget his name, like Fabozzi, whoever the guy who wrote the original book on bond trading like way back in the '90s, someone actually gave that to me and I read it, which is scary. But I think the short answer, kind of, is no. And I think it's actually like a very important question, and there's some technicality to it or technical-ness around it. I think the short answer is no. We don't view it as disruptive across our core kind of financing and hedging markets that we live in. I think the details do matter. Ultimately, first of all, like, love innovation to start with. A perp is really ultimately -- think of it as a levered bet on price with no end date, which fit things in a very interesting way that never end. And we can talk about that from the perspective of like Bitcoin, stock indices, oil, et cetera. Bonds are essentially the exact opposite, right? A bond is an end date, and much of the returns comes from getting it shorter as it ages, something a constant maturity perp in its essence, can't capture, and I'm getting a little kind of wonky around this sort of answer. So in a certain way, it doesn't solve a problem for asset managers, right? Mandates are written in maturity buckets. Hedges have a lineup against actual bonds and swaps, which already give elongated exposure without a roll, okay? And I'm explaining it like super technically. So we don't see it as a threat at all into our institutional business. Are we for innovation? Do we put our creative hats on and do we look at the world and say, where can this play a significant opportunity inside of Tradeweb? And we see that playing out inside of the retail world potentially. And so we're excited about it. But we don't view it fundamentally as relevant inside of the institutional fixed income markets. I think it gives us this like very cool opportunity to expand our footprint to the extent that demand arises inside of the retail world, which has kind of, I think, in an important way, continues to surprise and activate everyone in terms of the growing sophistication of that population in that world. So I think you can kind of think about answering my answer around understanding the role that it plays and a willingness that we have as a company to always embrace innovation. And thanks for the question. Operator: And the next question will come from Craig Siegenthaler with Bank of America. Craig Siegenthaler: We wanted to see if you have any metrics to help us evaluate the engagement levels with both, one, TARA, your brand-new AI assistant and also two, your new dedicated Kalshi pricing page. And I know you just launched them both in the back half of June, but we're curious on early engagement levels and also where you expect them to go to. William Hult: Yes. It's a great question. Good to hear your voice, Craig. And the timeliness, I think, around TARA, interesting, given the kind of news of today. So I appreciate the question. Definitely still early days. And let me kind of like take a half a step back on your question. I think I say this all the time, we are going to be the most ambitious company that we can be. And part of that ambition ultimately relies on our ability to continue to be a leader in the core businesses that we are in and at the same time, place these very, very important bets in frontier space, which I think encapsulates your question like really well, frontier space. So having like extremely strong client conversations this quarter on both TARA and Kalshi. And I think right now, our focus is trying to kind of engage with our clients and prove the value of this to our clients. So start with the problem, I think, from our perspective that TARA solves. The challenge, I think the way I would describe it is the challenge for a trader today isn't by definition, kind of access to data. It's pulling the signal out of a large and growing data set really fast enough to act on it. And so hear me on that kind of point, right? TARA ultimately will move clients from data retrieval into something extremely important, which is insight generation. Instantly, right inside of their workflow across liquidity, pricing and historical context. And as I'm describing all of that to you, Craig, you can hear the focus that the company is bringing to the space, specifically around this because it starts in credit. And over the medium term, I think we're going to expand it where it makes sense across product lines. And ultimately, it aligns, I think, really well with our vision of a kind of true multi-asset assistant here. Early adoption in credit has been quite encouraging from my perspective, despite obviously something which is, as you know very well, like this is all new, right? And it's anything -- anytime something is new and there's the -- obviously, the agentic nature of the product. So it's forcing clients, I think, in a good way to revisit and rewrite compliance rules around this. But we're super excited around directionally where this is going, and I think we're putting the right amount of effort and energy around this. And so that's a great thing. Kalshi is just, like, the best conversations we're having with our clients really has been around Kalshi. Because the Kalshi page from my perspective, I think, reflects the definition of something really important, which is like how the macro markets are continuing to evolve. And clients are increasingly looking at kind of how we think about prediction market signals alongside their kind of core rates, interest rate swaps, government bonds, et cetera, and also credit strategies. And so we try to keep things simple. So we started with, like, a simple thing, which is a viewer that puts real-time event probabilities right next to swaps and treasuries in an easy and accessible way. Intentionally low friction because step one, as always around these things is kind of discovery and learning. And we're getting like really good feedback around that. Clients are returning and beginning to personalize their workflows, through filters and watch lists. And these are, like, the technical things that we can see happening, that from our perspective, matter a lot. And so things are going to get interesting, right? Prediction markets today are, as you know very well, Craig, like essentially retail. From my perspective, obviously, the opportunity is to build the institutional-grade version with the standardization, connectivity, execution quality and size that the biggest, most sophisticated institutions in the world expect. And in a certain way, as new as all of this is and as exciting as all of this is, that's in a certain way, the same playbook we've run across fixed income for more than 25 years. And I think it builds directly on what we already have, which is a broad network, execution infrastructure and ultimately, the seat on how this activity trades. The seat on how this activity trades. So 2 very big initiatives that you kind of asked the question on. Interestingly, I would say they're different initiatives, but I think connected by the same strategy. The ethos has to be lead with the client, prove the engagement and ultimately, the monetization opportunity, as you know very well, always comes on the follow. So a lot of focus on this from our perspective. And thanks very much for the question, Craig. Operator: And the next question is going to come from Dan Fannon with Jefferies. Daniel Fannon: Sara, I heard you on the guidance for expenses, but I was hoping to get a little more detail on the incremental spend and where that's being directed. And then if we think about a revenue environment that maybe is less constructive, how do we think about expense flexibility in that type of scenario? Sara Furber: Great. Look, specifically, we're directing our incremental investments this year versus last year in 2 big buckets. The first grouping, I would say, is around longer-term investments and horizons that are fueling what we think are the next legs of growth and innovation for Tradeweb. And so there's 3 specific things I'd call out there that you've heard us talk about. One is data infrastructure and strategy. And I think I mentioned this in our prepared remarks. This quarter, we had a $5 million increase from last year as we really stepped up our spend significantly in the back half of last year. But those investments support AI readiness, increased performance demands with the volumes we're seeing and a lot of our expansion, particularly internationally. The next bucket, I would say, and Billy just spent some time talking about that, is AI client-facing innovation, which we think is really important. So those include areas like TARA and Ai-Price, and improvements in protocols like SNAP+ and AiEX, which we believe really are driving next levels of electronification in our biggest markets like credit and treasuries. And those include people and non-comp investments. And then the last piece in that longer-term bucket that I'd call out is digital and frontier markets, which you've seen us talk about, but include organic things that we're doing in tokenized trading, such as intraday repo, crypto capabilities as well as Kalshi-related initiatives. So that's the first grouping that I would say is longer term. On top of that, we have a second bucket that I think is more nearer-term return and things that we are continuing to invest in that we started years ago that have clear traction, clear acceleration of revenue growth. And so those are areas like swaps and EM in Asia. And so as you think about it, overall, your question about flexibility, even with these stepped-up investments and our new office and the hiring, about 45% of our expense base remains variable and discretionary. So we continue to see operating leverage. We remain confident in our ability to show margin improvement. And you saw that in the first half of this year, our expense grew 14.8% and margins expanded over 30 basis points. So at that top half of the range, adjusted expenses would grow between 11% and 14% for the full year. We expect the second half to show slower expense growth relative to the prior year comparisons. And given our strategic priorities and enthusiasm on the outlook, we're continuing to invest, but we absolutely have the flexibility to slow down the pace of investments and a lot of flexibility in different environments. So thanks for that question. Operator: And the next question comes from Ken Worthington with JPMorgan. Kenneth Worthington: I wanted to follow up on Alex's earlier question. Where might Sprecher as a new owner and leader of MarketAxess make it a more formidable competitor in credit? So part of the pitch that Jeff made this morning is that having a fully integrated front-to-back ecosystem and leveraging economies of scale can increase activity and market share. So Billy, does the pitch make sense to you? And do they have the pieces for that front-to-back ecosystem? And how does Tradeweb adjust here? I was going to say you've got plenty of cash on the balance sheet, you can fill in the pieces that you need. But ultimately, what's -- is there a response here? William Hult: Yes, that's a good question. And I don't want to be dismissive. But I'll tell you my very strong reaction is just like, we have our playbook and so therefore, we can be very opportunistic, but I'm reluctant to say that we have to adjust. And I will make sure I say that very kind of clearly around this. Because in some ways, what you're kind of describing, I don't want to like give Jeff too many kind of house secrets, but like it's a little bit of a strategy that we've been kind of building for nearly 30 years around kind of STP data execution, post-trade, TCA, et cetera. We have a very strong kind of worldview around the power of technology, around the user experience and sales. And part of that sales has to be around ultimately aligning interests with the biggest, most important banks in the world, including JPMorgan. I'm not positive, like, how all of this that got announced this morning kind of easily solves in a very specific way how MarketAxess has been offsides around that for a while. But I'll be kind of watching that in a way that you would expect, Ken. And we feel quite good about the playbook that we have running in credit, which is going to be a hyper focus on ultimately solving for more complexity and more risk trades. And what I think described before, I think is really, really important, which is the nonbank liquidity providers are arriving in force inside of credit. The nuance it takes to actually solve for both the needs of those firms. Plus to make sure you're keeping the biggest, most important counterparties, banks, globally in the world, on side, is everything. And I think Tradeweb's ability to solve for that is at the highest level and probably a big piece of the secret sauce that we've brought to the equation from the very beginning in credit. And maybe I just gave away a tiny little bit of a playbook there, but that's okay. And I think that's historically what we've been really good at and is going to be a version of the play that we continue to run. So yes, continuing -- the optimism that we feel around where kind of credit is going, I think, was validated this morning. And I'm looking forward to kind of where the next chapter goes from here. Operator: The next question comes from Michael Cyprys with Morgan Stanley. Michael Cyprys: I wanted to ask on rates swaps. Curious what you see as the biggest barriers to further electronification and swaps from here? And where are you seeing the fastest progress so far? And where can -- what can Tradeweb do to accelerate adoption as you look out? William Hult: Yes. It's a really good question, Michael. It's like all this kind of focus on this morning's news and credits that are like, what a franchise that we have in our kind of global swaps business. So I appreciate the question. As you know, like in a really good way, I think the swaps market is sort of like awash in complexity. And in a very specific way, I think that's where we thrive. Electronification, we know this like really well, has never been linear. It moves in phases as market structure, kind of regulation, liquidity and client behavior ultimately line up. On the barriers, I think from my perspective, and it's amazing to say this kind of all these years later, I think the biggest one in a certain way is, like, simply, like, behavioral. Ultimately, moving real large risk electronically requires trust and a change in a certain way around kind of long-held workflows. And in the more complex corners, I think it also depends, I think, on something like really important, which is better data and ultimately more efficient post-trade. In a certain way, it's less a technological barrier than an adoption curve, okay? So think about that again. It's like less a technological shift or a change and ultimately back to this concept of like human behavior shifting, which is something, I think, again, back to sales, interestingly, something that like we're really, really good at and really focused on. And so on where progress, I think, in a certain way is fastest, EM swaps is a huge standout. We've helped to drive it to roughly 20% electronification and account for the majority of that activity. I think also, I think in a good way, breaking new ground in the more complex sort of like uncleared parts of the market with a series of kind of industry-first electronic trades there, which you've heard from us about. And risk share keeps climbing as clients ultimately execute more risk with us. The big and really important kind of next frontier around all of this is kind of clearly, I think, from our perspective, wholesale. And as you've gotten to know us really well over the years, as you know, as we've built out these big institutional markets and whether or not that is mortgages, government bonds, credit, et cetera, we've also built out mirroring liquidity pools electronically on the wholesale side in those markets. And the focus for us in swaps now, I think, in a really big way is now wholesale. In a certain way, just think about it very basically, which is like the institutional market is moving like 60, 70 miles an hour. And the wholesale market is going like much slower. And I think as dealers win and manage more risk electronically, their need for more efficient tools and the ability to recycle and warehouse that risk electronically grows, and we're going to have the connectivity, from my perspective, to be the winner as that market moves electronically. So here where our focus is around that, and feeling like exceptionally good about what we've been able to accomplish globally within our interest rate business. And thanks for the question, Michael. Operator: And the next question comes from Christian Bolu with Autonomous. Chinedu Bolu: A couple of quick questions on your capital management strategy. You're sitting on north of $2 billion of cash. The stock is near its lowest relative multiple since the IPO. Yet you've only purchased about $250 million worth of shares this year. So just curious why you're not leaning in harder into share repurchases. And then maybe longer term, strategically, after you've done the Crossover and the Kalshi minority interest investments this year, is sort of the next leg of the TAM story crypto execution of prediction markets? And what would make you move from just doing minority investments to doing full-scale acquisitions? Sara Furber: Great. Thanks, Christian. We continuously evaluate the size of our cash position relative to our capital needs and investment opportunities. And it's a good problem to have as we've grown, our business excels in generating cash. And so organic initiatives remain our top capital management return, and we're actively investing in areas like frontier markets and tokenization, Billy mentioned AI and agentic trading and international. But overall, to your point, in the scheme of producing $1 billion of annual free cash flow, we will have excess cash. So right now, of that $2 billion on the balance sheet, we have about $500 million earmarked for reg risk capital and working capital, and that leaves about $1.5 billion of excess cash, which we've already stepped up on our share repurchases. And you can expect us, barring M&A and any restrictions to continue to lean in at these price levels. As you mentioned, we've deployed the $200 million we have, a little over $300 million remaining in our current authorization, and we are very open to opportunistically deploying against that. I did say the caveat on share repurchases, though, because while it's accretive at current levels, it's not nearly as accretive as some of the M&A opportunities we are evaluating in our pipeline. And our space is active, both on outright M&A and strategic investments. So going forward, we have multiple things in the pipeline, both M&A and investment opportunities that we're evaluating. We find having that clean balance sheet and that solid cash position really allows us to be a nimble and attractive partner. Overall, I'd say, given that our confidence in our organic growth, we just will remain disciplined around acquisitions. So we're looking at things, but we want them to be accretive in the near term to EPS. We're not -- I don't feel any need to take on a high degree of execution complexity. And so there are things that we evaluate that are accretive and that we'll pass on, including last year, we spent some time on an acquisition. But overall, our capital return, we're focused and we'll be opportunistic on share repurchases, and it's sized in relation to that overall inorganic pipeline. On your second point about the next leg around crypto and prediction markets, specifically, we see these frontier markets as potentially very large from a TAM perspective and transformational. And with both Kalshi and Crossover, they're plays on retail-oriented markets potentially institutionalizing. So our minority investments give us a seat at the table, real optionality in these markets that can be quite dynamic without committing heavy capital upfront. As we think about crypto in particular, we think that TAM for institutional crypto is likely to come along nearest term relative to the predictive market. We're seeing interest from clients pick up and the required mechanisms they need for institutional adoption. So things like custody, execution, and clearing are developing. Overall, our investment is performing really well, and we're quite happy with it. We're expanding our organic capabilities. And I think our strategy right now lets us be efficient, as regulation still is getting clarified and the market continues to develop more fully. So for us to go further in that, we want to make sure that we're getting something beyond what the partnership is providing us. We'd want clarity on some of those regulation dynamics and the financials on that market, just like you'd evaluate any other M&A opportunity. With Kalshi, our investment here has also performed quite well, as you can see in the market. From a TAM, this is really a data story first, and Billy hit on this earlier. So we've really spent our time curating a set of event prices that are live on our trading screens. And you can imagine there's quite a bit of engagement, particularly on the Fed event contracts. And we see the development of that institutional market further out on the continuum. So I'd say we're quite happy with our investment strategy for now. Operator: And the next question is going to come from Patrick Moley with Piper Sandler. Patrick Moley: Just maybe a question on the outlook. You mentioned that revenues in July were trending up low teens year-over-year. I would love to hear how you're thinking about the setup for the rest of the quarter and into the back half of the year. And then maybe more specifically, with the new Fed leadership, maybe just your comments on how you see that benefiting the industry and Tradeweb moving forward. William Hult: Good question, Patrick. So I think your question is a really good one. I think you're right. I think that -- I think Kevin is -- I think he's a gift for our rates business in a very basic way. I think a market that has to form its own view is a better market for us. And I think we saw that yesterday. I think it was like twos bonds steepened yesterday on a Fed day. It was a bigger steepener that had happened at any time since like the mid-90s, right? So the change is real. I think 2 things to follow. Dispersion of view widens. So in a very basic way, instead of everyone trading off like the same signal, I think you get a genuine kind of 2-sided debate. And price discovery sort of migrates from kind of 8 scheduled meetings to the to the economic calendar. So I think every print in a certain way now matters more. And that's a steadier drumbeat of activity and not like kind of like one big macro moment. So think about it that way. But as you know, I think, very well, and I think this has been one of the things that has kind of occurred through our business the most over the past year, we don't rely on volatility to drive our story. I think growth accelerated through the quarter. As you know, with June revenue up 20% year-over-year, even as I think treasury intraday volatility fell about 20% from March levels. A livelier policy debate is upside on a base case in a certain way that doesn't need it. And I think that's kind of like an interesting way to say it, and I think you hear me on that. At a high level, and I've said this before, but I'm going to kind of reassert this. Handful of themes, I think, that are driving ultimately client activity right now, growing issuance globally, obviously, across government bonds and corporate debt. I don't think we can minimize how important, kind of, that is. More debt outstanding means more trading. More debt outstanding means more trading. Diverging central bank rate outlooks, that kind of same dispersion of views. I've talked about how the banks are stronger than ever. I think that's a great setup for us. Something we don't talk about as much, I think, is the global de-dollarization, which from our perspective, I think, pushes more activity into non-dollar rates, one of the big kind of rises around our European swaps business. And I think clients are obviously increasingly using ETFs to express risk, which is a big deal, pulls more kind of credit and rates flow into a workflow that we already own. And so as that activity grows, more collateral has to move, which accelerates, in a certain way, our financing business. So like a really, really good backdrop for us. And think about inside of that backdrop, probably a few things. Swaps, from our perspective, are the purest expression of a policy debate. It's the market where we're talking about record risk market share with a long electronification runway ahead. Like really, really good stuff there. In a certain way, I think, like, money markets are the underappreciated one. I think the Chair would rather shrink the balance sheet than raise rates. That unwind is going to drive our kind of U.S. repo growth. Less talk, more runoff straight into our kind of repo franchise. And I think we're really well set up kind of around that. So lots of stuff there. I think from our perspective, always, like the pace of electronification continues to grow. I think the backdrop is about as strong from our perspective as we've had. And feeling really good about directionally where our businesses kind of across the board are headed. And I appreciate the question. Thank you very much. Operator: And the next question will come from Simon Clinch with Rothschild & Company. Simon Alistair Clinch: I was wondering, Billy, if you could talk about the opportunity in mortgages, particularly as you're sort of making strides into new areas like the spec pools. What kind of innovations, protocol launches would help electronic trading there? And how does that impact the overall fee per million sort of dynamic as well? William Hult: Yes. Great question. I made kind of a joke a couple of quarters ago that given the kind of historic role that Tradeweb has played in the mortgage industry, that they were kind of -- I made the joke that they were my favorite child. And I think I'm maybe downgrading them to my third favorite child and putting both a combination of global swaps and credit ahead of them now with all the focus that we have there, but that's okay. They don't know that. Great historic kind of business for us. We've built a leadership position there for many years, and it continues to show results. So year-to-date, mortgage revenues are up kind of almost 14% with our institutional specified pool revenue growing more than 40% year-to-date. I was feeling quite bullish about where we were going with our mortgage business as 2026 was starting. I think I was bullish in some ways because I thought rates were going lower. And to see the performance of our mortgage business do as well as it's done in a higher rate environment, I think, speaks to the maturity of our franchise and how strong we are in that TBA market. As you know, pools are different. Only about 20% to 25% of institutional trading in pools is electronic today, which in a certain way implies obviously a long runway there. We've been a leader in driving that transition. And today, we hold a share -- the leading share of institutional electronic pool market. It doesn't completely perfectly resemble, like, the credit market, but you can understand from a very basic perspective, it trades on spread. It tends to trade on bid lists and offer lists. And I think there is a tremendous amount of innovation and transparency that we will continue to bring into the equation around the pool business. We have all the clients. We have the connectivity to the most important dealers. We have the reputation from the role that we play both on the wholesale and institutional side in TBAs. So we're bringing a pretty strong combination of things and focus into the equation, and we have the data. And so we feel really, really good about the role that we're playing in pools. It's a big area of focus for us inside of our rates complex. And then the other thing, which you know really well, is that the pool fee per million is obviously higher because it's a less liquid instrument than TBAs. We're commercial and just another reason why we're going to apply our kind of leading-edge lens into that area of the world. So busy company, as you know really well. And whether or not they're my favorite child or third favorite child, you're going to get a lot of focus from us as a company in that part of the mortgage complex. Thanks for the question. Appreciate it. Operator: Thank you. And this does conclude our Q&A session. And I will now turn the call back over to Billy for closing remarks. William Hult: Busy morning. Thank you all for joining us. As always, super appreciated. Any follow-up questions, obviously, feel free always to reach out to Ashley, Sameer and the team. Hope everyone has a great day. Thank you all so much. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Before you buy stock in Tradeweb Markets, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tradeweb Markets wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Tradeweb (TW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

In the past week, Tradeweb Markets Inc. reported second-quarter 2026 results showing revenue of US$558.95 million and net income of US$181.32 million, alongside announcing a US$0.1400 per-share quarterly dividend payable on September 15, 2026 with an ex- and record date of September 1, 2026. Over the same period, Tradeweb also completed US$300.00 million and US$165.70 million share repurchase programs while delivering year-on-year growth in both quarterly and six-month earnings per share, highlighting ongoing capital returns and profitability. Next, we’ll examine how Tradeweb’s earnings growth paired with substantial buybacks and a fresh dividend affects its investment narrative. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Tradeweb, you generally need to believe that fixed income and derivatives trading will keep shifting toward electronic platforms where Tradeweb already plays a central role. The Q2 2026 results, with higher revenue and earnings plus ongoing buybacks and dividends, support that story, but the recent share price drop shows how sensitive the stock can be to any perceived slowdown in revenue momentum, which remains a key short term catalyst and risk. The completion of US$465.70 million in share repurchases in tandem with higher Q2 and first half earnings per share is especially relevant. It reinforces how Tradeweb is returning capital while growing profits, which matters if you think continued electronification and data adoption will support earnings over time. At the same time, heavy reinvestment and rising tech and compliance costs could still pressure margins if revenue growth softens. However, investors should also be aware of the risk that rising technology and regulatory costs could squeeze margins just as competition intensifies and... Read the full narrative on Tradeweb Markets (it's free!) Tradeweb Markets' narrative projects $2.9 billion revenue and $1.1 billion earnings by 2029. Uncover how Tradeweb Markets' forecasts yield a $129.86 fair value, a 29% upside to its current price. Some of the lowest ranked analysts were already cautious, expecting around US$2.8 billion of revenue and US$1.2 billion of earnings by 2029, and see regulatory and tech cost risks as more pressing than the consensus does. After a quarter where revenue growth slightly lagged expectations, it is worth recognizing that these more pessimistic voices may either be reinforced or challenged, and you should compare their assumptions with your own view of Tradeweb's future. Explore 4 other fair value estimates on Tradeweb Markets - why the stock might be worth as much as 77% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Tradeweb Markets research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free Tradeweb Markets research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tradeweb Markets' overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: Find 55 companies with promising cash flow potential yet trading below their fair value. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Rare earth metals are the new gold rush. Find out which 29 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tradeweb Markets Inc (NASDAQ:TW) delivered its second-highest quarterly revenue ever at $559 million, with growth accelerating to over 20% year-over-year in June. International revenue grew 14% year-over-year and contributed 65% of total revenue growth, with strength across all four asset classes. Core risk market share in global swaps reached a record 24.1%, up 207 basis points year-over-year, driven by strong client engagement. Institutional US Treasury market share surpassed 50% for the ninth consecutive quarter, with revenues up nearly 15% year-over-year. AIX automated trading platform saw average daily trades increase over 45% year-over-year, with triple-digit growth in US ETFs and double-digit growth in European ETFs. Wholesale US Treasury revenues declined 1% year-over-year due to softness in the wholesale streaming offering amid intense competition. Credit revenue growth was muted at low single-digits, as strength in international and institutional credit was offset by a 22% decline in retail credit and municipal bonds. Average fees per million for long-tenure swaps decreased 10.3% due to a mix shift within currencies and lower duration. Average fees per million for cash credit decreased 11.4% due to a mix shift away from higher-fee munis and retail credit toward lower-fee European credit and portfolio trading. Technology and communication costs surged 38.9% year-over-year, driven by investments in data infrastructure, AI, and higher software costs. Here are the key Q&A highlights from the Tradeweb Markets Inc. Q2 2026 earnings call. Warning! GuruFocus has detected 6 Warning Signs with KKR. Is TW fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the potential impact of the announced acquisition of MarketAxess by ICE on the competitive landscape, particularly in credit and rates?A: Billy Hult (CEO): We see this as a validation of the fee pool in credit. We welcome rational competition and feel very confident in our role as a trusted market venue. Our sweet spot is in credit, where we see a great environment with hyper-scalers selling bonds, traditional banks having strong earnings, and nonbank liquidity providers arriving in force. We are market share takers and see a tremendous opportunity to continue investing in credit around technology, data, and the scalability of client decision-making. We believe the market is moving toward a "winner takes most" dynamic, and we are well-positioned to be that venue. Q: What are the biggest barriers to further electronification in the global swaps market, and where is Tradeweb seeing the fastest progress?A: Billy Hult (CEO): The biggest barrier is behavioralmoving large risk electronically requires trust and a change in long-held workflows. It's less a technological barrier than an adoption curve. Progress is fastest in EM swaps, which we've helped drive to roughly 20% electronification. We are also breaking new ground in the more complex, uncleared parts of the market. The next big frontier is the wholesale market, which is moving much slower than the institutional market. As dealers manage more risk electronically, their need for efficient tools to recycle that risk grows, and we aim to be the connectivity winner as that market moves. Q: Can you provide more detail on the incremental expense spend and the flexibility to adjust if the revenue environment becomes less constructive?A: Sarah Ferber (CFO): Our incremental investments are in two buckets. The first is longer-term investments in data infrastructure and strategy (for AI readiness), AI client-facing innovation (like Terra and Snap Plus), and digital/frontier markets (tokenized trading, crypto, Kalshi). The second bucket is nearer-term investments with clear traction, like swaps and EM/Asia. Even with these investments, about 45% of our expense base remains variable and discretionary. We have the flexibility to slow the pace of investments if needed, but given our strategic priorities and outlook, we are continuing to invest. Q: With over $2 billion in cash and the stock at a low multiple, why aren't you leaning harder into share repurchases? What would make you move from minority investments to full-scale acquisitions?A: Sarah Ferber (CFO): We continuously evaluate our cash position. Of the $2 billion, about $500 million is earmarked for regulatory risk capital and working capital, leaving $1.5 billion in excess cash. We have already stepped up share repurchases and will continue to be opportunistic at these price levels, barring M&A restrictions. However, while buybacks are accretive, they are not as creative as some M&A opportunities we are evaluating. We have multiple things in the pipeline and want to remain disciplined, looking for acquisitions that are accretive to EPS and don't have a high degree of execution complexity. Q: How do you view the opportunity in mortgages, particularly in new areas like specified pools, and how does this impact the fee per million dynamic?A: Billy Hult (CEO): Year-to-date, mortgage revenues are up almost 14%, with institutional specified pool revenue growing more than 40%. Only about 20-25% of institutional trading in pools is electronic, implying a long runway. We hold the leading share of the institutional electronic pool market. Pools trade on spread and on bid/offer lists, and we will bring innovation and transparency to that business. The pool fee per million is higher than TBAs because it's a less liquid instrument, which is a key reason we are applying our leading-edge technology to this area. Q: What is the outlook for the rest of the quarter and the back half of the year, especially with new Fed leadership?A: Billy Hult (CEO): The new Fed leadership is a gift for our rates business. A market that has to form its own view is better for us, as it creates a genuine two-sided debate and a steadier drumbeat of activity. We don't rely on volatility to drive our story; growth accelerated through Q2 even as volatility fell. The key drivers are growing global issuance, diverging central bank outlooks, strong banks, global de-dollarization pushing activity into non-dollar rates, and clients increasingly using ETFs to express risk. Swaps are the purest expression of a policy debate, and money markets are underappreciated as balance sheet runoff drives repo growth. Q: Can you provide metrics on early engagement levels with your new AI system, Terra, and your new Kalshi prediction market pricing page?A: Billy Hult (CEO): It's still early days. Our focus is on engaging with clients and proving value. Terra solves the challenge of pulling signal from a large data set to generate insight instantly. Early adoption in credit has been encouraging, though it's forcing clients to revisit compliance rules. Kalshi has generated the best client conversations. We started with a simple viewer that puts real-time event probabilities next to swaps and treasuries. Clients are returning and personalizing their workflows. The opportunity is to build the institutional-grade version of prediction markets, which follows the same playbook we've run in fixed income for 25 years. Q: How might Jeff Sprecher as the new owner of MarketAxess make it a more formidable competitor in credit, and does the pitch of a fully integrated front-to-back ecosystem make sense?A: Billy Hult (CEO): We have our own playbook and don't feel we have to adjust. The strategy of an integrated ecosystem (SDP, data, execution, post-trade, TCA) is something we've been building for nearly 30 years. Our strength lies in aligning interests with the biggest banks in the world. The nuance of solving for both the needs of nonbank liquidity providers and keeping the largest global banks onside is everything. That is a big piece of our secret sauce and what we have been really good at historically. We feel quite good about our playbook in credit. Q: Are there any areas where perpetuals (perps) could disrupt parts of the fixed income market, and where could Tradeweb benefit?A: Billy Hult (CEO): We don't view perps as a threat to our core institutional business. A bond has an end date, and much of For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, Tradeweb Markets (TW) reported revenue of $558.95 million, up 9% over the same period last year. EPS came in at $0.97, compared to $0.87 in the year-ago quarter. The reported revenue represents a surprise of -0.9% over the Zacks Consensus Estimate of $564.05 million. With the consensus EPS estimate being $0.96, the EPS surprise was +1.04%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Tradeweb performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average Daily Volumes - Rates - Cash: $595.66 billion compared to the $611.54 billion average estimate based on 11 analysts. Average Daily Volumes - Total: $3,012.51 billion versus the 11-analyst average estimate of $3,024.71 billion. Average Daily Volumes - Money Markets: $1,161.47 billion compared to the $1,165.34 billion average estimate based on 11 analysts. Average Daily Volumes - Equities: $32.32 billion versus $30.97 billion estimated by 11 analysts on average. Revenue by Asset Class- Equities- Fixed: $2.44 million compared to the $2.41 million average estimate based on 11 analysts. The reported number represents a change of +3.5% year over year. Revenue by Asset Class- Market Data: $37.29 million compared to the $37.02 million average estimate based on 11 analysts. The reported number represents a change of +22.6% year over year. Revenue by Asset Class- Rates- Variable: $228.01 million compared to the $233.92 million average estimate based on 11 analysts. The reported number represents a change of +11.4% year over year. Revenue by Asset Class- Rates- Fixed: $74.48 million compared to the $73.61 million average estimate based on 11 analysts. The reported number represents a change of +6.8% year over year. Revenue by Asset Class- Credit- Fixed: $17.23 million versus the 11-analyst average estimate of $18.25 million. The reported number represents a year-over-year change of -0.7%. Revenue by Asset Class- Equities- Variable: $36.45 million compared to the $34.82 million average estimate based on 11 analysts. The reported number represents a change of +14.3% year over year. Revenue by Asset Class- Money Markets- Variable: $39.5 million versus the 11-analyst average estimate of $41.25 million. The reported number represents a year-over-year change of +5.9%. Revenue by Asset Class- Money Markets- Fixed: $4.48 million versus the 11-analyst average estimate of $4.45 million. The reported number represents a year-over-year change of +2.9%. View all Key Company Metrics for Tradeweb here>>> Shares of Tradeweb have returned +6.6% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, July 30, 2026--(BUSINESS WIRE)--Tradeweb Markets Inc. (Nasdaq: TW), a global leader in electronic trading across asset classes, today reported financial results for the quarter ended June 30, 2026. $558.9 million quarterly revenues, an increase of 9.0% (8.3% on a constant currency basis) compared to prior year period $245.1 million quarterly international revenues, an increase of 13.9% (12.3% on a constant current basis) compared to prior year period $3.0 trillion average daily volume ("ADV") for the quarter, an increase of 18.2% compared to prior year period; quarterly ADV records in rates futures, fully electronic U.S. high yield credit, convertibles/swaps/options and repurchase agreements $206.7 million net income and $228.1 million adjusted net income for the quarter, increases of 17.8% and 10.7%, respectively, from prior year period 54.4% adjusted EBITDA margin and $304.1 million adjusted EBITDA for the quarter, compared to 54.2% and $277.9 million, respectively, for prior year period $0.85 diluted earnings per share ("Diluted EPS") and $0.97 adjusted diluted earnings per share for the quarter $0.14 per share quarterly cash dividend declared, a 16.7% per share increase from prior year period Billy Hult, CEO of Tradeweb: "Our second quarter results reflect the resilience and diversification of our global, multi-asset platform, with strong volume growth across the business despite more normalized volatility compared to the first quarter of 2026. International revenue continued to accelerate, and client adoption of Tradeweb AiEX continued to increase as clients further embedded automation into their trading workflows — a trend that continues to reinforce the long-term structural shift toward electronic trading. In our core markets, we advanced our credit offering with the launch of TARA, our first generative AI-powered research assistant for institutional credit trading, and the introduction of spread trading for European credit portfolios, enabling clients to execute at the portfolio level within a single, integrated workflow. We also announced the adoption of Tradeweb's iNAV by Xtrackers across its European-listed ETFs, highlighting our commitment to supporting more efficient ETF trading and building confidence across the broader market. In frontier markets, we deepened our partnership with Kalshi, integrating prediction market data and a dedicated pricing index into institutional trading workflows, while continuing to invest in our digital asset capabilities on the Canton Network. Together, these initiatives reflect our commitment to investing in the technologies and partnerships that we believe will define the next phase of electronic trading. With a strong foundation across our core and emerging products, we remain focused on delivering for our clients and driving durable, long-term growth." DISCUSSION OF RESULTS Rates – Revenues of $302.5 million in the second quarter of 2026 increased 10.2% compared to prior year period (increased 9.5% on a constant currency basis). Rates ADV was up 23.1% from prior year period, including record ADV in rates futures. U.S. government bond ADV was up 5.3% from prior year period, driven by strong institutional and wholesale activity, with institutional volumes reaching their second highest month on record in May 2026. Swaps/swaptions ≥ 1-year ADV was up 26.5% from prior year period, driven by fluctuating global central bank policy expectations and evolving geopolitical uncertainty. European government bonds ADV was up 17.3% from prior year period, led by strong volumes across our institutional client channel. Mortgages ADV was up 10.7% from prior year period, including strong To-Be-Announced ("TBA") activity, which was primarily driven by increased trading year-over-year ("YoY") from asset managers and hedge funds. Tradeweb's specified pool platform saw higher trading activity YoY, supported by continued momentum in client adoption and an expanding dealer roster. The 10.3% decline in rates derivatives ≥ 1-year average variable fees per million in the second quarter of 2026 compared to prior year period was primarily driven by a mix shift within currencies, which carry a relatively lower fee per million as well as lower duration. Credit – Revenues of $128.4 million in the second quarter of 2026 increased 3.3% compared to prior year period (increased 2.7% on a constant currency basis). U.S. credit ADV was up 10.3% from prior year period, including record ADV in fully electronic U.S. high yield credit, as well as continued client adoption of trading protocols, including in Portfolio Trading ("PT"), Request-for-Quote ("RFQ") and Tradeweb AllTrade®. European credit ADV was up 23.4% from prior year period, driven by a diverse set of protocols, particularly PT and Tradeweb Automated Intelligent Execution ("AiEX"). Credit derivatives ADV was up 19.6% from prior year period, driven by increased hedge fund and systematic account activity YoY which led to increased swap execution facility ("SEF") and multilateral trading facility ("MTF") credit default swaps activity. Municipal bond ADV was down 12.2% from prior year period, outperforming the market which was down 16% from prior year period (based on MSRB). We reported 19.0% share of fully electronic U.S. high grade TRACE, up 101 basis points (bps) from prior year period and 8.5% share of fully electronic U.S. high yield TRACE, up 32 bps from prior year period. We also reported 25.7% total share of U.S. high grade TRACE, down 29 bps from prior year period and 11.1% total share of U.S. high yield TRACE, up 44 bps from prior year period. The 11.4% decline in cash credit average variable fees per million in the second quarter of 2026 compared to prior year period was primarily driven by a mix shift away from municipal bonds and retail U.S. credit, which carry a relatively higher fee per million, as well as a mix shift towards European credit and portfolio trading, which carry a relatively lower fee per million. Equities – Revenues of $38.9 million in the second quarter of 2026 increased 13.5% compared to prior year period (increased 12.1% on a constant currency basis). Equities ADV was up 17.3% from prior year period, with record ADV in convertibles/swaps/options. Volumes were driven by strong activity in U.S. and international exchange traded funds ("ETFs"), with robust activity in our institutional and wholesale channels, as the client base grew and clients' adoption of our automated trading functionality continued to grow YoY. Money Markets – Revenues of $44.0 million in the second quarter of 2026 increased 5.6% compared to prior year period (increased 5.2% on a constant currency basis). Money Markets ADV was up 11.7% from prior year period, driven by record ADV in global repurchase agreements as a result of increased client participation across the platform, as well as Tradeweb ICD Portal activity, which was driven by both existing clients and new client additions. Market Data – Revenues of $37.3 million in the second quarter of 2026 increased 22.6% compared to prior year period (increased 22.7% on a constant currency basis), primarily due to amendments to our LSEG market data license agreement which were effective as of November 2025, as well as growth in our proprietary market data revenues. The amended market data license agreement included higher overall fees and a change in the timing of the delivery of periodic historical data sets, with more frequent deliveries scheduled under the amended agreement and a corresponding increase in revenue during the second quarter of 2026. Other – Revenues of $7.9 million in the second quarter of 2026 remained relatively flat compared to prior year period. Operating Expenses of $313.7 million in the second quarter of 2026 remained relatively flat compared to $313.1 million in prior year period as the increase in technology and communication expense due to increased investment in our data strategy and infrastructure and increased data fees driven primarily by higher trading volumes period-over-period was partially offset by a decrease in general and administrative expenses primarily due to a decrease in foreign exchange losses. Adjusted Expenses of $276.4 million in the second quarter of 2026 increased 9.4% (increased 9.9% on a constant currency basis) compared to prior year period primarily due to (i) an increase in technology and communication expense due to increased investment in our data strategy and infrastructure and increased data fees driven primarily by higher trading volumes period-over-period and (ii) an increase in depreciation and amortization expense primarily relating to capitalized internally developed software and technology hardware. Please see "Non-GAAP Financial Measures" below for additional information. Non-operating Income – Other income (loss), net of $7.3 million of income in the second quarter of 2026 compared to the prior year period income of $12.7 million, primarily included $26.6 million in unrealized gains on minority equity investments during the second quarter of 2026, partially offset by a $15.1 million unrealized loss related to our Canton Coin holdings and a $3.7 million decrease in fair value of our investment in Canton Strategic Holdings. Other income in the second quarter of 2025 included $18.1 million in unrealized gains relating our Canton Coin holdings, partially offset by a $5.4 million loss due to the impairment of a minority equity investment. Other income (loss), net is excluded from all non-GAAP financial measures. RECENT HIGHLIGHTS July 2026 Announced the completion of a landmark real-time transaction involving tokenized U.S. Treasuries on Tradeweb with the Canton Network. Announced our multi-year partnership with professional golfer James Nicholas. Participated in the Depository Trust & Clearing Corporation (DTCC)'s successful processing of U.S. Treasury transactions using tokenized assets held at The Depository Trust Company (DTC) - the largest tokenization production initiative to date. Extended the distribution of our licensed Tradeweb FTSE Benchmark Closing Prices through Pyth Network's Data Marketplace, alongside pricing derived from our electronic fixed income marketplaces. Recognized in numerous awards, including: Most Influential in European Finance - Enrico Bruni (Financial News); Best Fixed Income Trading Solution - Tradeweb (Capital Markets Technology Awards APAC 2026). Second Quarter 2026 Core Markets Announced that Xtrackers, the ETF and ETC platform of DWS, has adopted Tradeweb’s iNAVs across its European-listed ETFs, adding an independent, real time intraday pricing reference for market participants. Contributed Tradeweb’s iNAV data to the new Pyth Data Marketplace from Pyth Network, expanding access to our high-quality, intraday ETF valuations via on-chain infrastructure. Introduced TARA, an AI-powered research assistant for institutional credit trading, designed to help institutional U.S. credit market participants transform trading data into actionable real-time market intelligence and trading insights. Launched spread trading for European credit portfolios, enabling portfolio-level execution on a spread within a single, integrated workflow. Selected by the European Central Bank to facilitate the lending of French, German, Italian and Spanish public sector securities against cash collateral. Announced the first Swap Exchange for Physical (EFP) Unwind transaction executed on Tradeweb, with Ardea Investment Management and Deutsche Bank Investment Bank providing liquidity. Published the annual 2026 Tradeweb ICD Portal Client Survey. Frontier Markets Expanded our Kalshi partnership, integrating Kalshi prediction market data and a dedicated pricing index into institutional trading workflows on Tradeweb. Awards Recognized in numerous awards, including: Rising Stars of European Finance 2026 - Melanie Hazan (Financial News); Most Effective Platform for Trading Rates - Tradeweb (Markets Media Bond Market Awards 2026); Rising Star - Nicole Hasbrouck (Women’s Bond Club Awards); Excellence in Talent Management - Isabella Teixeira (Women in Finance Asia Awards); Best in Fixed Income - Tradeweb (Global Markets Choice Awards 2026); Top Innovator - Tradeweb (TabbFORUM NOVA Awards 2026). CAPITAL MANAGEMENT $2.1 billion in cash and cash equivalents and an undrawn $500 million credit facility as of June 30, 2026 As of June 30, 2026, we held 1.6 billion Canton Coins, valued at $230.0 million of which we are restricted in our ability to transfer 1.3 billion Canton Coins, valued at $181.6 million Free cash flow for the trailing twelve months ended June 30, 2026 of $1.1 billion, up 13.0% compared to prior year period. See "Non-GAAP Financial Measures" for additional information Cash paid for capital expenditures and capitalized software development during the second quarter of 2026 of $27.2 million Cash paid for investments during the second quarter of 2026 of $6.7 million During the second quarter of 2026, Tradeweb purchased a total of 1,908,308 shares of Class A common stock, at an average price of $99.01, for purchases totaling $188.9 million. As of June 30, 2026, $334.3 million in share repurchase authorization remained $0.2 million in shares of Class A common stock were withheld during the second quarter of 2026 to satisfy tax obligations related to the vesting or exercise of employee stock-based compensation awards The Board declared a quarterly cash dividend of $0.14 per share of Class A common stock and Class B common stock. The dividend will be payable on September 15, 2026 to stockholders of record as of September 1, 2026 OTHER MATTERS Unchanged Full-Year 2026 Guidance* Adjusted Expenses: $1,100 - 1,160 million (trending towards the top half of the range) Acquisition and Refinitiv Transaction related depreciation and amortization expense: $160 million Assumed non-GAAP tax rate: ~23.5% - 24.5% Cash capital expenditures and capitalized software development: ~$107 - 117 million LSEG Market Data Contract Revenue: ~$105 million *GAAP operating expenses and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement of foreign currency rates. Expense guidance assumes an average 2026 Sterling/US$ foreign exchange rate of 1.32. CONFERENCE CALL Tradeweb Markets will hold a conference call to discuss second quarter 2026 results starting at 9:30 AM EDT today, July 30, 2026. A live, audio webcast of the conference call along with related presentation materials will be available at https://investors.tradeweb.com/events-and-presentations. To join the call via audio webcast, click here: https://edge.media-server.com/mmc/p/u6hiogc8/ To join the call via phone, please register in advance here: https://register-conf.media-server.com/register/BIda35a925fa59455aa4d9fa6446e4f6c5. Registered participants will receive an email confirmation with a unique PIN to access the conference call. An archived recording of the call will be available afterward at https://investors.tradeweb.com. ABOUT TRADEWEB MARKETS Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale, retail and corporates markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 3,000 clients in more than 85 countries. On average, Tradeweb facilitated more than $2.9 trillion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com. The following table summarizes the calculation of Adjusted Diluted EPS for the periods presented: To access historical traded volumes, go to https://www.tradeweb.com/newsroom/monthly-activity-reports/ BASIS OF PRESENTATION Tradeweb Markets Inc. (unless the context otherwise requires, together with its subsidiaries, referred to as "we," "our," "Tradeweb," "Tradeweb Markets" or the "Company") closed its IPO on April 8, 2019. As a result of certain reorganization transactions (the "Reorganization Transactions") completed in connection with the IPO, on April 4, 2019, Tradeweb Markets Inc. became a holding company whose principal assets consist of its direct and indirect equity interest in Tradeweb Markets LLC ("TWM LLC") and related deferred tax assets. As the sole manager of TWM LLC, Tradeweb Markets Inc. operates and controls all of the business and affairs of TWM LLC and, through TWM LLC and its subsidiaries, conducts its business. As a result of this control, and because Tradeweb Markets Inc. has a substantial financial interest in TWM LLC, Tradeweb Markets Inc. consolidates the financial results of TWM LLC and its subsidiaries. Numerical figures included in this release have been subject to rounding adjustments and as a result totals may not be the arithmetic aggregation of the amounts that precede them and figures expressed as percentages may not total 100%. Please refer to the Company's previously filed Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for capitalized terms not otherwise defined herein. UNAUDITED INTERIM RESULTS The interim financial results presented herein for the three and six months ended June 30, 2026 and 2025 are unaudited. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. FORWARD-LOOKING STATEMENTS This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our guidance, including full-year 2026 guidance and full-year 2026 revenue guidance related to the LSEG market data license agreement, any acquisitions, investments, partnerships and collaborations, future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading "Risk Factors" in the documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future events or performance and future events, our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if future events, our results of operations, financial condition, or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of events, results or developments in future periods. Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release. NON-GAAP FINANCIAL MEASURES This release contains "non-GAAP financial measures," including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted Net Income, Adjusted Net Income per diluted share ("Adjusted Diluted EPS"), Adjusted Expenses, Free Cash Flow and constant currency change, which are supplemental financial measures that are not calculated and presented in accordance with GAAP. We make use of non-GAAP financial measures in evaluating our past results and future prospects. We present these non-GAAP financial measures because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management and our board of directors use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT and Adjusted EBIT margin to assess our financial performance and believe they are helpful in highlighting trends in our core operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Further, our executive incentive compensation is based in part on components of Adjusted EBITDA. We use Adjusted Net Income and Adjusted Diluted EPS as supplemental metrics to evaluate our business performance in a way that also considers our ability to generate profit without the impact of certain items. Each of the normal recurring adjustments and other adjustments included in Adjusted Net Income and Adjusted Diluted EPS help to provide management with a measure of our operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses. We use Adjusted Expenses as a supplemental metric to evaluate our underlying operating performance over time by removing items that are not related to day-to-day operations or are non-cash expenses. We use Free Cash Flow to assess our liquidity in a way that considers the amount of cash generated from our core operations after non-acquisition related expenditures for capitalized software development costs and furniture, equipment and leasehold improvements. We present certain changes on a "constant currency" basis. Since our consolidated financial statements are presented in U.S. dollars, we must translate non-U.S. dollar revenues and expenses into U.S. dollars. Constant currency change, which is a non-GAAP financial measure, is defined as change excluding the effects of foreign currency fluctuations. Constant currency information is calculated by translating the current period and prior period’s results using the annual average exchange rates for the prior period. We use constant currency change as a supplemental metric to evaluate our underlying performance between periods by removing the impact of foreign currency fluctuations. We present certain constant currency change information because we believe it provides investors and analysts a useful comparison of our results and trends between periods. This information should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. See the attached schedules for reconciliations of the non-GAAP financial measures contained in this release to their most comparable GAAP financial measure. Non-GAAP financial measures have limitations as analytical tools, and you should not consider these non-GAAP financial measures in isolation or as alternatives to net income attributable to Tradeweb Markets Inc., net income, net income margin, earnings per share, operating income, operating expenses, cash flow from operating activities or any other financial measure prepared or derived in accordance with GAAP. You are encouraged to evaluate each adjustment included in the reconciliations. In addition, in evaluating Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted EBIT margin, Adjusted EBT, Adjusted Net Income, Adjusted Diluted EPS, Adjusted Expenses and Free Cash Flow, you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of these non-GAAP financial measures. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures contained in this release may not be comparable to similarly titled measures used by other companies in our industry or across different industries. MARKET AND INDUSTRY DATA This release includes estimates regarding market and industry data that we prepared based on our management’s knowledge and experience in the markets in which we operate, together with information obtained from various sources, including publicly available information, industry reports and publications, surveys, our clients, trade and business organizations and other contacts in the markets in which we operate. In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and we take no responsibility for such information. TRADEWEB SOCIAL MEDIA Investors and others should note that Tradeweb announces material financial and operational information using its investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about Tradeweb, its business and its results of operations may also be announced by posts on the Company’s accounts on the following social media channels: Instagram, LinkedIn and X. The information that we post through these social media channels may be deemed material. As a result, we encourage investors, the media, and others interested in Tradeweb to monitor these social media channels in addition to following our investor relations website, press releases, SEC filings and public conference calls and webcasts. These social media channels may be updated from time to time on our investor relations website. View source version on businesswire.com: https://www.businesswire.com/news/home/20260727344732/en/ Contacts Investor Relations Ashley Serrao + 1 646 430 [email protected] Sameer Murukutla + 1 646 767 [email protected] Media Relations Daniel Noonan + 1 646 767 [email protected] Savannah Steele + 1 646 767 [email protected]

Tradeweb Markets (TW) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.04%. A quarter ago, it was expected that this electronic marketplaces operator would post earnings of $1.06 per share when it actually produced earnings of $1.08, delivering a surprise of +1.89%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Tradeweb, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $558.95 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.9%. This compares to year-ago revenues of $512.97 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tradeweb shares have added about 0.6% since the beginning of the year versus the S&P 500's gain of 6.9%. While Tradeweb has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tradeweb was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.99 on $568.97 million in revenues for the coming quarter and $4.00 on $2.34 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the top 9% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, MarketAxess (MKTX), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This operator of bond trading platforms is expected to post quarterly earnings of $1.88 per share in its upcoming report, which represents a year-over-year change of -6%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. MarketAxess' revenues are expected to be $217.34 million, down 1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Analysts on Wall Street project that Tradeweb Markets (TW) will announce quarterly earnings of $0.96 per share in its forthcoming report, representing an increase of 10.3% year over year. Revenues are projected to reach $564.05 million, increasing 10% from the same quarter last year. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. Given this perspective, it's time to examine the average forecasts of specific Tradeweb metrics that are routinely monitored and predicted by Wall Street analysts. The consensus among analysts is that 'Revenue by Asset Class- Market Data' will reach $37.02 million. The estimate points to a change of +21.7% from the year-ago quarter. Analysts forecast 'Revenue by Asset Class- Rates- Variable' to reach $233.92 million. The estimate suggests a change of +14.3% year over year. Analysts predict that the 'Revenue by Asset Class- Rates- Fixed' will reach $73.61 million. The estimate suggests a change of +5.5% year over year. Analysts' assessment points toward 'Revenue by Asset Class- Credit- Fixed' reaching $18.25 million. The estimate indicates a change of +5.2% from the prior-year quarter. The combined assessment of analysts suggests that 'Average Daily Volumes - Rates - Cash' will likely reach $611.54 billion. Compared to the present estimate, the company reported $546.39 billion in the same quarter last year. According to the collective judgment of analysts, 'Average Daily Volumes - Total' should come in at $3024.71 billion. The estimate compares to the year-ago value of $2550.02 billion. The collective assessment of analysts points to an estimated 'Average Daily Volumes - Money Markets' of $1165.34 billion. Compared to the current estimate, the company reported $1041.81 billion in the same quarter of the previous year. The consensus estimate for 'Average Daily Volumes - Equities' stands at $30.97 billion. Compared to the present estimate, the company reported $27.54 billion in the same quarter last year. Analysts expect 'Average Daily Volumes - Credit' to come in at $43.86 billion. The estimate compares to the year-ago value of $37.74 billion. The average prediction of analysts places 'Average Daily Volumes - Rates' at $1784.54 billion. Compared to the present estimate, the company reported $1442.93 billion in the same quarter last year. Based on the collective assessment of analysts, 'Average variable fees per million dollars of volume - Equities' should arrive at $18.17 . Compared to the present estimate, the company reported $18.68 in the same quarter last year. It is projected by analysts that the 'Average variable fees per million dollars of volume - Credit' will reach $40.00 . Compared to the present estimate, the company reported $45.82 in the same quarter last year. View all Key Company Metrics for Tradeweb here>>> Shares of Tradeweb have demonstrated returns of +4.6% over the past month compared to the Zacks S&P 500 composite's +1.9% change. With a Zacks Rank #3 (Hold), TW is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Tradeweb Markets (TW) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This electronic marketplaces operator is expected to post quarterly earnings of $0.96 per share in its upcoming report, which represents a year-over-year change of +10.3%. Revenues are expected to be $564.05 million, up 10% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.43% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Tradeweb, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.68%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Tradeweb will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Tradeweb would post earnings of $1.06 per share when it actually produced earnings of $1.08, delivering a surprise of +1.89%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Tradeweb doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Moelis (MC), another stock in the Zacks Financial - Investment Bank industry, is expected to report earnings per share of $0.62 for the quarter ended June 2026. This estimate points to a year-over-year change of +17%. Revenues for the quarter are expected to be $391.55 million, up 7.2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Moelis has been revised 0.2% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.98%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Moelis will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report Moelis & Company (MC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research