8-K: Cboe Global Markets Posts Record Q4, Full Year 2025 Results

Cboe Global Markets reported record diluted and adjusted diluted EPS, and net revenue for both the fourth quarter and full year 2025, driven by strong derivatives and cash markets performance.

Summary

• Record Diluted EPS for the fourth quarter of 2025 was $2.97, an increase of 60% compared to the fourth quarter of 2024.
• Record Diluted EPS for the full year 2025 was $10.42, an increase of 45% compared to the full year 2024.
• Record Adjusted Diluted EPS for the fourth quarter of 2025 was $3.06, an increase of 46% compared to the fourth quarter of 2024.
• Record Adjusted Diluted EPS for the full year 2025 was $10.67, an increase of 24% compared to the full year 2024.
• Record Net Revenue for the fourth quarter of 2025 was $671.1 million, an increase of 28% compared to the prior-year period.
• Record Net Revenue for the full year 2025 was $2.4 billion, an increase of 17% compared to the full year 2024.
• The company is establishing a 2026 Organic Total Net Revenue Growth Target of 'mid single-digit'.
• The 2026 Cboe Data Vantage Organic Net Revenue Growth Target is 'mid to high single-digit'.
• Adjusted Operating Expense Guidance for 2026 is set at $864 million to $879 million.
• Derivatives business net revenue grew 38% in Q4 2025 versus Q4 2024, driven by record volumes in index and multi-listed options.
• Cash and Spot Markets net revenue rose 27% in Q4 2025 versus Q4 2024.
• Data Vantage net revenue increased 9% in Q4 2025 on a year-over-year basis.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very strong report, characterized by record financial performance across key metrics and positive forward-looking guidance, despite some market share declines in specific equity segments.

Positives

• Achieved record Diluted EPS of $2.97 for Q4 2025 (up 60%) and $10.42 for Full Year 2025 (up 45%).
• Achieved record Adjusted Diluted EPS of $3.06 for Q4 2025 (up 46%) and $10.67 for Full Year 2025 (up 24%).
• Achieved record Net Revenue of $671.1 million for Q4 2025 (up 28%) and $2.4 billion for Full Year 2025 (up 17%).
• Derivatives net revenue increased 38% in Q4 2025, driven by record volumes in index and multi-listed options.
• Cash and Spot Markets net revenue increased 27% in Q4 2025.
• Data Vantage net revenue increased 9% in Q4 2025.
• Operating income increased 35% to $403.8 million in Q4 2025.
• Adjusted operating income increased 41% to $450.5 million in Q4 2025.
• Net income allocated to common stockholders increased 60% to $312.2 million in Q4 2025.
• Operating EBITDA increased 32% to $435.1 million in Q4 2025.
• Adjusted Operating EBITDA increased 40% to $464.7 million in Q4 2025.
• Cash and cash equivalents significantly increased to $2,216.5 million at December 31, 2025, from $920.3 million at December 31, 2024.
• The company has approximately $614.5 million of availability remaining under its existing share repurchase authorizations.

Negatives

• Total operating expenses increased 18% to $267.3 million in Q4 2025, primarily due to asset impairment and higher compensation and benefits.
• The effective tax rate for Q4 2025 was 30.6%, up from 29.7% in Q4 2024, primarily due to remeasuring deferred tax assets and liabilities.
• Cboe's Options exchanges total market share decreased to 29.2% in Q4 2025 from 30.4% in Q4 2024.
• Cboe's U.S. Equities exchanges market share decreased to 9.4% in Q4 2025 from 10.8% in Q4 2024.
• Canadian Equities market share decreased to 12.7% in Q4 2025 from 14.3% in Q4 2024.
• Cboe Australia market share decreased to 20.6% in Q4 2025 from 20.8% in Q4 2024.
• Impairment of assets of $25.1 million was recorded in Q4 2025, and $46.7 million for the full year 2025.

Risks

• Loss of the right to exclusively list and trade certain index options and futures products.
• Economic, political, and market conditions.
• Compliance with legal and regulatory obligations.
• Price competition and consolidation in the industry.
• Decreases in trading or clearing volumes, market data fees, or a shift in the mix of products traded on exchanges.
• Legislative or regulatory changes or changes in tax regimes.
• Ability to protect systems and communication networks from security vulnerabilities and breaches.
• Ability to attract and retain skilled management and other personnel.
• Increasing competition by foreign and domestic entities.
• Dependence on and exposure to risk from third parties.
• Factors that impact the quality and integrity of Cboe's and other applicable indices.
• Ability to manage global operations, growth, and strategic acquisition, wind-downs, divestitures or alliances effectively.
• Increases in the cost of the products and services used.
• Ability to operate the business without violating the intellectual property rights of others and the costs associated with protecting intellectual property rights.
• Ability to minimize the risks, including credit, liquidity, market, investment, counterparty, and default risks, associated with operating clearinghouses.
• Ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of systems.
• Misconduct by those who use markets or products or for whom transactions are cleared.
• Challenges to the use of open source software code.
• Ability to meet compliance obligations, including managing business interests and regulatory responsibilities.
• Loss of key customers or a significant reduction in trading or clearing volumes by key customers.
• Damage to reputation.
• The ability of compliance and risk management methods to effectively monitor and manage risks.
• Restrictions imposed by debt obligations and the ability to make payments on or refinance debt obligations.
• Ability to maintain an investment grade credit rating.
• Impairment of goodwill, long-lived assets, investments, or intangible assets.
• The accuracy of estimates and expectations.
• Litigation risks and other liabilities.

Future Outlook

Cboe Global Markets anticipates 'mid single-digit' organic total net revenue growth and 'mid to high single-digit' organic net revenue growth from Data Vantage for 2026. Adjusted operating expenses for 2026 are projected to be between $864 million and $879 million. The guidance includes impacts from discontinuing certain listings businesses and planned cost reductions, while also incorporating anticipated business-as-usual financial contributions from Cboe Canada and Cboe Australia, despite announced divestiture plans.

Management Comments

• "Cboe delivered an exceptional fourth quarter, marking the culmination of a year characterized by record growth – including 17 percent net revenue growth, 45 percent diluted EPS growth, and 24 percent adjusted diluted EPS growth." Craig Donohue, Chief Executive Officer.
• "Our recent strategic realignment is enabling us to allocate more resources toward growth and value creation in our core businesses, while also better positioning Cboe to capitalize on emerging opportunities." Craig Donohue, Chief Executive Officer.
• "We are starting 2026 with a very strong foundation – a focused growth strategy, a highly seasoned and impressive leadership team, and continued strong secular trends in our core businesses." Craig Donohue, Chief Executive Officer.
• "Cboe produced another quarter of record net revenue, diluted EPS, and adjusted diluted EPS to conclude an extraordinary year." Jill Griebenow, Executive Vice President, Chief Financial Officer.
• "In our Derivatives business, record volumes across our index and multi-listed options products drove robust net revenue growth of 38 percent versus the fourth quarter of 2024." Jill Griebenow, Executive Vice President, Chief Financial Officer.
• "We are pleased with the record results we achieved in 2025, and we remain focused on driving durable shareholder returns in the year ahead." Jill Griebenow, Executive Vice President, Chief Financial Officer.

Industry Context

StockSavvy.ai notes that Cboe's strong performance in derivatives, particularly index and multi-listed options, aligns with broader industry trends of increasing demand for sophisticated hedging and trading instruments. The growth in Data Vantage also reflects the rising importance of market data and analytics in financial services. While Cboe experienced some market share declines in U.S. and Canadian equities, its overall revenue growth across diverse segments indicates resilience and effective strategic positioning in a competitive global exchange landscape.

Comparison to Industry Standards

• The filing primarily focuses on Cboe's internal performance metrics and market share within its operating segments (e.g., Options, U.S. Equities, Canadian Equities, European Equities, Australian Equities) against the total market volume or share, rather than providing specific comparisons to named competitor companies or global benchmarks.

Stakeholder Impact

• Shareholders: Positive impact due to record EPS and net revenue, strong financial performance, and remaining share repurchase authorization.
• Employees: Higher compensation and benefits due to increased accrued bonuses reflecting strong company performance. Strategic realignment and discontinuing some businesses might imply internal restructuring, but no negative impacts are detailed.
• Customers: Continued provision of trading, clearing, and investment solutions across multiple asset classes and geographies.
• Creditors: Stable debt levels and a significantly improved cash position.

Next Steps

• Executives will host a conference call on February 6, 2026, at 8:30 a.m. ET/7:30 a.m. CT to review the financial results.
• Guidance for 2026 will be updated as further actions related to announced divestitures are made public.

Key Dates

Recommendation

The company delivered record financial results for both the fourth quarter and full year 2025, with significant growth in diluted and adjusted diluted EPS and net revenue. All key business segments showed robust growth, particularly derivatives. The 2026 guidance for organic net revenue growth is positive, and the company maintains a strong cash position and share repurchase authorization. While there were some market share declines in specific equity segments, the overall performance and outlook are exceptionally strong, indicating continued value creation for shareholders.

Keywords

Cboe Global Markets, CBOE, Financial Results, Earnings, Q4 2025, Full Year 2025, EPS, Net Revenue, Derivatives, Options Trading, Equities Trading, FX Trading, Market Data, Financial Exchange, Trading Volume, Guidance, SEC Filing