Tradeweb Markets Inc. (TW): Results of Operations and Financial Condition
Tradeweb Markets Inc. (TW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Investor Relations Ashley Serrao + 1 646 430 6027 Ashley.Serrao@Tradeweb.com Sameer Murukutla + 1 646 767 4864 Sameer.Murukutla@Tradeweb.com Media Relations Daniel Noonan + 1 646 767 4677 Daniel.Noonan@Tradeweb.com Savannah Steele + 1 646 767 4941 Savannah.Steele@Tradeweb.com TRA
How this was made
The 30-second read
Why it matters
Traders can use the reported revenue, net income, EPS, adjusted EBITDA, and ADV growth to reframe near-term earnings power and trading-activity expectations across rates and credit.
Market read
2Q26 shows YoY revenue and earnings growth alongside record ADV in multiple asset classes, with international revenue accelerating and adjusted EBITDA margin holding near prior year levels.
What to watch
The excerpt highlights product launches (TARA, AiEX adoption, iNAV adoption) but does not quantify monetization impact, so investors may focus more on margins and fee-rate trends than on narrative initiatives.
Tradeweb Reports Second Quarter 2026 Financial Results
Total revenue increased 9.0%, operating income increased 22.7%, net income increased 17.8%, and total ADV increased 18.2% from the prior-year period. Growth was broad across all reported revenue segments, led by Market Data, Equities, and Rates, while Credit growth was comparatively modest and variable fees declined in rates derivatives and cash credit.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $558,946 | – | 9.0% |
| International revenuesGAAP | $245.1 million | – | 13.9% |
| Total ADVother | $3,013 billion | – | 18.2% |
| Rates ADVother | $1,776 billion | – | 23.1% |
| Rates cash ADVother | $596 billion | – | 9.0% |
| Rates derivatives ADVother | $1,180 billion | – | 31.6% |
| Credit ADVother | $43 billion | – | 13.3% |
| Credit cash ADVother | $19 billion | – | 6.5% |
| Credit derivatives ADVother | $23 billion | – | 19.6% |
| Equities ADVother | $32 billion | – | 17.3% |
| Equities cash ADVother | $16 billion | – | 16.9% |
| Equities derivatives ADVother | $16 billion | – | 17.8% |
| Money Markets ADVother | $1,161 billion | – | 11.7% |
| Operating expensesGAAP | $313.7 million | – | remained relatively flat |
| Operating incomeGAAP | $245,262 | – | 22.7% |
| Other income (loss), netGAAP | $7.3 million of income | – | – |
| Net incomeGAAP | $206,686 | – | 17.8% |
| Net income attributable to Tradeweb Markets Inc.GAAP | $181,318 | – | 17.9% |
| Diluted EPSGAAP | $0.85 | – | 19.7% |
| Net income marginGAAP | 37.0% | – | +276 bps |
| Adjusted Expensesnon-GAAP | $276.4 million | – | 9.4% |
| Adjusted EBITDAnon-GAAP | $304,135 | – | 9.4% |
| Adjusted EBITDA marginnon-GAAP | 54.4% | – | +24 bps |
| Adjusted EBITnon-GAAP | $282,550 | – | 8.5% |
| Adjusted EBIT marginnon-GAAP | 50.6% | – | -20 bps |
| Adjusted Net Incomenon-GAAP | $228,149 | – | 10.7% |
| Adjusted Diluted EPSnon-GAAP | $0.97 | – | 11.5% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RatesRates ADV was up 23.1% from prior year period, including record ADV in rates futures. U.S. government bond ADV was up 5.3%, swaps/swaptions ≥ 1-year ADV was up 26.5%, European government bonds ADV was up 17.3%, and mortgages ADV was up 10.7% from prior year period. | $302,490 | – | 10.2% |
| CreditU.S. credit ADV was up 10.3% and European credit ADV was up 23.4% from prior year period. Credit derivatives ADV was up 19.6%, while municipal bond ADV was down 12.2% from prior year period. | $128,392 | – | 3.3% |
| EquitiesEquities ADV was up 17.3% from prior year period, with record ADV in convertibles/swaps/options. Volumes were driven by activity in U.S. and international ETFs and increased adoption of automated trading functionality. | $38,891 | – | 13.5% |
| Money MarketsMoney Markets ADV was up 11.7% from prior year period, driven by record ADV in global repurchase agreements, increased client participation, and Tradeweb ICD Portal activity. | $43,976 | – | 5.6% |
| Market DataGrowth was primarily due to amendments to the LSEG market data license agreement effective as of November 2025 and growth in proprietary market data revenues. | $37,288 | – | 22.6% |
| OtherRevenues remained relatively flat compared to the prior-year period. | $7,909 | – | 0.7% |
Capital returns
- $0.14 per share quarterly cash dividend declared, a 16.7% per share increase from prior year period.
What drove it
- International revenues were $245.1 million, an increase of 13.9% from the prior-year period.
- Record ADV was reported in rates futures, fully electronic U.S. high yield credit, convertibles/swaps/options and repurchase agreements.
- Market Data revenue benefited from higher overall fees and more frequent delivery of periodic historical data sets under the amended LSEG market data license agreement.
- Operating expenses remained relatively flat as increased technology and communication expense and higher data fees were partially offset by lower general and administrative expense, primarily from decreased foreign exchange losses.
- Adjusted Expenses increased primarily because of investment in data strategy and infrastructure, higher data fees driven by trading volumes, and depreciation and amortization relating to capitalized internally developed software and technology hardware.
Concerns
- Rates derivatives ≥ 1-year average variable fees per million declined 10.3% from the prior-year period, primarily due to a mix shift within currencies and lower duration.
- Cash credit average variable fees per million declined 11.4% from the prior-year period, primarily due to mix shifts away from municipal bonds and retail U.S. credit and toward European credit and portfolio trading.
- Credit revenue increased 3.3%, below the growth reported for Rates, Equities, Market Data and total revenue.
- Municipal bond ADV was down 12.2% from the prior-year period.
- Other income (loss), net was $7.3 million of income, compared with $12.7 million of income in the prior-year period. The current period included a $15.1 million unrealized loss related to Canton Coin holdings and a $3.7 million decrease in the fair value of the investment in Canton Strategic Holdings.
What to watch
- Sustainability of international revenue growth and client adoption of Tradeweb AiEX.
- Development of variable fees per million in rates derivatives and cash credit amid product and geographic mix shifts.
- Credit growth, including activity in portfolio trading, RFQ, Tradeweb AllTrade®, European credit and credit derivatives.
- The contribution from the amended LSEG market data license agreement and proprietary market data revenues.
- Technology, infrastructure, data-fee and depreciation expense associated with the company's investments.
Analysis
Tradeweb delivered broad year-over-year expansion in the second quarter of 2026. Total revenue was $558,946, up 9.0%, while total ADV was $3,013 billion, up 18.2%. Rates was the largest revenue segment at $302,490 and grew 10.2%, supported by 23.1% growth in Rates ADV. International revenues were $245.1 million and increased 13.9%, and management described continued growth in adoption of Tradeweb AiEX.
Revenue growth extended across every reported segment. Market Data was the fastest-growing segment, with revenue of $37,288, up 22.6%, primarily reflecting amendments to the LSEG market data license agreement and proprietary-data growth. Equities revenue increased 13.5% to $38,891, and Rates revenue increased 10.2%. Credit revenue was $128,392, up 3.3%, while Money Markets revenue increased 5.6% to $43,976. Record ADV was reported in rates futures, fully electronic U.S. high yield credit, convertibles/swaps/options and repurchase agreements.
Profitability improved on reported GAAP measures. Operating income increased 22.7% to $245,262, net income increased 17.8% to $206,686, and diluted EPS increased 19.7% to $0.85. Net income margin was 37.0%, compared with 34.2% in the prior-year period. Operating expenses were $313.7 million and remained relatively flat compared with $313.1 million, as higher technology, communication and data costs were partially offset by lower general and administrative expense.
Non-GAAP results remained strong but grew more slowly than GAAP operating income. Adjusted EBITDA was $304,135, up 9.4%, with adjusted EBITDA margin of 54.4%, compared with 54.2%. Adjusted EBIT margin was 50.6%, compared with 50.7%. Adjusted Expenses increased 9.4%, reflecting data strategy and infrastructure investment, higher volume-related data fees, and depreciation and amortization. The company declared a $0.14 per share quarterly cash dividend, a 16.7% per share increase from the prior-year period.
Investors should focus on product mix and variable fees. Rates derivatives ≥ 1-year average variable fees per million declined 10.3%, and cash credit average variable fees per million declined 11.4%, both due to mix changes. Credit also faced a 12.2% decline in municipal bond ADV, although management stated this outperformed a market decline of 16%. Separately, other income (loss), net declined to $7.3 million of income from $12.7 million of income, reflecting a $15.1 million unrealized loss on Canton Coin holdings and a $3.7 million fair-value decrease in Canton Strategic Holdings, partly offset by $26.6 million of unrealized gains on minority equity investments.
Management, verbatim
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.
Billy Hult, CEO of Tradeweb
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.
Billy Hult, CEO of Tradeweb
With a strong foundation across our core and emerging products, we remain focused on delivering for our clients and driving durable, long-term growth.
Billy Hult, CEO of Tradeweb
Not in the filing
stated, not guessed- Forward guidance was not provided in the supplied filing text.
- Previous-period outlook was not provided.
- Gross profit and gross margin were not reported in the supplied filing text.
- Tax rate was not reported in the supplied filing text.
- Cash balance was not reported in the supplied filing text.
- Debt balance was not reported in the supplied filing text.
- Operating cash flow was not reported in the supplied filing text.
- Free cash flow was not reported in the supplied filing text.
- Share repurchases were not reported in the supplied filing text.
- Prior-quarter comparisons for reported financial and operating metrics were not reported in the supplied filing text.
- Prior-year dollar values for international revenues and Adjusted Expenses were not reported on their respective reported metric lines in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The 8-K (Item 2.02) reports Tradeweb’s second quarter 2026 financial results for the quarter ended June 30, 2026.
Ticker impact
Tradeweb reported 2Q26 results in an 8-K, including $558.9M revenue (+9% YoY) and $0.85 diluted EPS, plus segment ADV growth records.
Likely supportive for the stock versus prior expectations if the market was underpricing volume and margin durability; watch for any implied sensitivity to volatility normalization.
This is a primary disclosure of quarterly results with multiple growth and margin figures, but the excerpt does not include guidance or consensus comparisons, limiting conviction on magnitude of upside/downside.
Market effects
Strength in electronic trading volumes and international revenue can reinforce sentiment toward market-structure and trading-technology platforms.
International revenue acceleration and European credit ADV strength may support European trading venue sentiment.
Cross-asset volume growth (rates, credit, equities, money markets) suggests broad-based activity rather than a single-region catalyst.
Counterpoint
Despite growth, the company notes more normalized volatility versus 1Q26, which could cap near-term upside if volumes mean-revert.
Key entities
- companyTradeweb Markets Inc.
Global electronic trading platform reporting 2Q26 results and operational metrics in an SEC 8-K.
- executiveBilly Hult
CEO quoted on resilience, international acceleration, and product initiatives (AiEX, TARA, iNAV, Kalshi integration, Canton Network).
