8-K: Cboe Global Markets Reports Record First Quarter 2025 Results, Raises Revenue Growth Target

Cboe Global Markets announced record first-quarter 2025 results, including record diluted EPS of $2.37 and net revenue of $565.2 million, and increased its 2025 organic total net revenue growth target.

Summary

• Cboe Global Markets reported record financial results for the first quarter of 2025.
• Net revenue reached a record $565.2 million, up 13% year-over-year.
• Diluted EPS was a record $2.37, a 21% increase.
• Adjusted diluted EPS also hit a record of $2.50, up 16% from the previous year.
• The company is increasing its 2025 organic total net revenue growth target to mid to high single digits from the previous mid single digits guidance.
• Adjusted operating expense guidance for 2025 remains between $837 and $852 million.
• Derivatives net revenue grew by 16%, while Cash and Spot Markets net revenue increased by 10%, and Data Vantage saw an 8% increase.
• The company paid cash dividends of $66.4 million, or $0.63 per share, during the first quarter of 2025.
• Cboe repurchased approximately 145 thousand shares of its common stock for $30.0 million at an average price of $207.04 per share.
• As of March 31, 2025, the company had approximately $649.8 million of availability remaining under its existing share repurchase authorizations.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with record financial results and increased revenue growth targets. While there are some risks and challenges mentioned, the overall tone is optimistic and suggests strong performance.

Positives

• Record net revenue, diluted EPS, and adjusted diluted EPS indicate strong financial performance.
• Increasing the organic total net revenue growth target suggests confidence in future growth.
• Strong growth in Derivatives, Cash and Spot Markets, and Data Vantage segments demonstrates a diversified revenue stream.
• Growth in Europe and Asia Pacific markets indicates successful international expansion.
• Increased ADV in options and futures trading points to higher market activity and demand for Cboe's products.
• The company has significant availability remaining under its share repurchase authorizations.

Negatives

• Cboe's Options exchanges had total market share of 31.1 percent for the first quarter of 2025, down compared to 31.3 percent in the first quarter of 2024.
• Cboe's U.S. Equities exchanges had market share of 10.5 percent for the first quarter of 2025 compared to 12.8 percent in the first quarter of 2024 as a result of higher industry off-exchange share.
• Canadian Equities market share declined to 13.8 percent as compared to 15.3 percent in the first quarter of 2024, impacted by reduced client activity during our migration to the Cboe Titanium platform and lower volume in Cboe Canada listed securities.

Risks

• The document contains cautionary statements regarding forward-looking information, highlighting various economic, political, market, and competitive risks.
• The company's performance is subject to economic, political, and market conditions.
• Compliance with legal and regulatory obligations poses ongoing risks.
• The company faces price competition and consolidation in the industry.
• Security vulnerabilities and breaches to systems and communication networks could negatively impact operations.
• The company's ability to manage global operations, growth, and strategic acquisitions effectively is crucial.
• Litigation risks and other liabilities could affect financial results.

Future Outlook

Cboe expects organic total net revenue growth in the mid to high single digits range for 2025 and reaffirms Data Vantage organic net revenue growth in the mid to high single digits range. Adjusted operating expenses for 2025 are expected to be in the range of $837 to $852 million.

Management Comments

• Fredric Tomczyk, Cboe Global Markets Chief Executive Officer, stated that the company reported record quarterly net revenue, diluted EPS, and adjusted diluted EPS, with strong results from each of the Derivatives, Cash and Spot Markets, and Data Vantage categories.
• Jill Griebenow, Cboe Global Markets Executive Vice President, Chief Financial Officer, noted the broad-based strength of the business model, resulting in quarterly records for total net revenue and adjusted diluted EPS.

Industry Context

Cboe's results reflect the ongoing trends in the exchange industry, including increased trading volumes in derivatives markets, the growing importance of data and analytics, and the need for diversified revenue streams. The company's performance is indicative of its ability to capitalize on market volatility and evolving investor needs.

Comparison to Industry Standards

• Cboe's revenue growth of 13% compares favorably to peers such as Intercontinental Exchange (ICE) and Nasdaq, which have also reported growth driven by increased trading activity and data services.
• Cboe's focus on options trading aligns with industry trends, as options volumes have been increasing across major exchanges.
• The company's Data Vantage business competes with data and analytics offerings from companies like Bloomberg and Refinitiv, highlighting the growing importance of data in the financial industry.
• Cboe's market share in various segments, such as U.S. Equities, is a key indicator of its competitive position relative to other exchange operators like NYSE and Bats Global Markets.

Stakeholder Impact

• Shareholders benefit from increased EPS and potential for future growth.
• Employees may experience increased job security and potential for bonuses.
• Customers benefit from a diverse toolkit of products for any market environment.
• The company's commitment to building a trusted, inclusive global marketplace benefits all stakeholders.

Next Steps

• Executives of Cboe Global Markets will host a conference call to review its first-quarter financial results today, May 2, 2025, at 8:30 a.m. ET/7:30 a.m. CT.

Key Dates

Keywords

Cboe Global Markets, financial results, first quarter 2025, net revenue, EPS, options, equities, futures, Data Vantage, market share