2Q26
Filed Jul 30, 2026MarketAxess Reports Second Quarter 2026 Financial Results EPS of $1.93; $1.95 Excluding Notable Items; Record Services Revenue and 9% Revenue Growth Outside U.S. Credit
Revenue was relatively flat year-over-year and total credit commission revenue declined, while services revenue reached a record, strategic-channel volumes increased in key areas, and GAAP diluted EPS increased to $1.93.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $218.4 million | (6) % | — % |
| Total expensesGAAP | $128.5 million | (3) % | 1% |
| Operating marginGAAP | 41.1% | (210) bps | (80) bps |
| Net incomeGAAP | $68.3 million | (13) % | (4) % |
| Diluted EPSGAAP | $1.93 | (12) % | 1% |
| Net income marginGAAP | 31.3% | (220) bps | (110) bps |
| Revenues excluding notable itemsnon-GAAP | $218 million | (6) % | — |
| Expenses excluding notable itemsnon-GAAP | $127.0 million | (3) % | 3% |
| Operating margin excluding notable itemsnon-GAAP | 41.9% | (230) bps | (180) bps |
| Net income excluding notable itemsnon-GAAP | $68.9 million | (14) % | (7) % |
| Diluted EPS excluding notable itemsnon-GAAP | $1.95 | (13) % | (3) % |
| EBITDAnon-GAAP | $106 million | (13) % | (4) % |
| EBITDA marginnon-GAAP | 48.6% | (350) bps | (190) bps |
| Average variable transaction fee per million, Total Creditother | $129 | (2) % | (7) % |
| Average variable transaction fee per million, Total Ratesother | 4.96 | 6 | 23 |
| Effective tax rateGAAP | 23.9% | – | – |
| Effective tax rate excluding notable itemsnon-GAAP | 24.5% | – | – |
| Employee headcountother | 863 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Total credit commission revenueThe decrease was primarily driven by a 9% decrease in U.S. credit commission revenue, partially offset by growth in emerging markets and higher fixed distribution fees. | $168.4 million | – | (5)% |
| Total rates commission revenueTotal rates commission revenue was relatively flat compared to the prior year. | $8.1 million | – | relatively flat |
| Total other commission revenueThe increase was primarily driven by the inclusion of RFQ-hub beginning in May 2025. | $10.3 million | – | 46% |
| Services revenueRecord services revenue increased compared to the prior year. | $31.5 million | – | 14% |
| Information services revenueThe increase was principally driven by net new contract revenue. | $16.1 million | – | 23% |
| Post-trade services revenueThe increase was principally driven by net new contract revenue. | $11.6 million | – | 5% |
| Technology services revenueHigher connectivity and licensing fees reflected the inclusion of RFQ-hub. | $3.8 million | – | 8% |
Capital returns
- The Company had $112.0 million in borrowings outstanding under the Company’s credit facility as of June 30, 2026, as compared to $220.0 million in borrowings outstanding as of December 31, 2025.
- As of July 29, 2026, the Company had $92.0 million in borrowings outstanding under the Company’s credit facility.
- As of July 29, 2026, $205 million remained under the Board of Directors’ share repurchase authorizations.
- The Board declared a quarterly cash dividend of $0.78 per share, payable on September 2, 2026 to stockholders of record as of the close of business on August 19, 2026.
What drove it
- Total commission revenue of $186.9 million declined 3%, driven by a 9% decline in U.S. credit and partially offset by a 6% increase in emerging markets commission revenue.
- Client-Initiated Channel block trading ADV increased 11% to $5.9 billion, including U.S. credit (+8%) and emerging markets (+24%).
- Portfolio Trading Channel total portfolio trading ADV increased 33% to a record $2.0 billion, with U.S. high-grade (+41%), U.S. high-yield (+93%), municipal bonds (+154%), and emerging markets (+44%).
- Dealer-Initiated Channel ADV decreased 3% to $1.7 billion, partially offset by a 151% increase in Mid-X ADV to record levels.
- The decline in total credit FPM year-over-year was driven by protocol and product mix, as well as lower duration of bonds traded in U.S. high-grade.
- Information services and post-trade services growth was principally driven by net new contract revenue.
Concerns
- Total revenues of $218.4 million were relatively flat compared to the prior year, which benefited from elevated levels of event-driven market volatility.
- Total credit commission revenue decreased $8.1 million, or 5%, compared to the prior year.
- GAAP operating margin decreased 80 basis points to 41.1%, while operating margin excluding notable items decreased 180 basis points to 41.9%.
- Other income was $(0.1) million, down from $5.6 million in the prior year, largely reflecting lower interest income, higher interest expense, and foreign currency transaction losses.
- The Company reported legal-related expenses of $1.6 million in 2Q26.
What to watch
- U.S. credit commission revenue, which decreased 9%.
- Total credit FPM, which decreased 7% to $129.
- Growth in services revenue, which reached a record $31.5 million.
- Sustainability of portfolio trading ADV growth, which reached a record $2.0 billion.
- Dealer-Initiated Channel ADV, which decreased 3%, and the continuing expansion of Mid-X.
- Cash, borrowings, net receivables, dividend payments, and use of the remaining $205 million share repurchase authorization.
Balance sheet and cash flow
- The Company had $404.8 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of June 30, 2026, down from $678.9 million as of December 31, 2025.
- The decline from year-end 2025 primarily reflects capital allocation activity during the first half of 2026, including cash used to pay down borrowings under the revolving credit facility, and quarterly dividend payments, in addition to an increase in net receivables from broker-dealers, clearing organizations and customers, partially offset by cash generated from operating activities.
- Other income was $(0.1) million, down from $5.6 million in the prior year.
Analysis
MarketAxess reported total revenues of $218.4 million, relatively flat versus the prior year and down sequentially in the table. The release attributes the prior-year comparison to elevated event-driven market volatility. Commission revenue declined 3% to $186.9 million, with total credit commission revenue down 5% to $168.4 million. A 9% decline in U.S. credit commission revenue was partly offset by a 6% increase in emerging markets commission revenue, while total other commission revenue increased 46% to $10.3 million.
Services was the principal growth offset. Record services revenue increased 14% to $31.5 million, led by information services revenue growth of 23% to $16.1 million. Post-trade services revenue increased 5% to $11.6 million, and technology services revenue increased 8% to $3.8 million. The company cited net new contract revenue for information and post-trade services and higher connectivity and licensing fees reflecting RFQ-hub for technology services.
Activity metrics showed progress in the strategic channels despite the softer commission result. Client-Initiated Channel block trading ADV increased 11% to $5.9 billion, and portfolio trading ADV increased 33% to a record $2.0 billion. Portfolio trading growth included records in U.S. high-grade, U.S. high-yield, municipal bonds, and emerging markets. Dealer-Initiated Channel ADV declined 3% to $1.7 billion, although Mid-X ADV increased 151% to record levels. Total credit FPM declined 7% to $129, which management attributed to protocol and product mix and lower duration of bonds traded in U.S. high-grade.
Profitability declined sequentially and year-over-year on the reported measures. GAAP operating margin was 41.1%, down 80 basis points year-over-year, and operating margin excluding notable items was 41.9%, down 180 basis points. GAAP net income was $68.3 million compared with $71.2 million in the prior year, while diluted EPS increased to $1.93 from $1.91. The release reported $1.6 million of legal-related expenses and a $1.1 million benefit to the reserve for uncertain tax positions related to prior periods.
Capital balances moved lower during the first half. Cash, cash equivalents, corporate bond investments and U.S. Treasury investments were $404.8 million as of June 30, 2026, compared with $678.9 million as of December 31, 2025. Credit-facility borrowings were $112.0 million at quarter end and $92.0 million as of July 29, 2026. The board declared a quarterly dividend of $0.78 per share, and $205 million remained under repurchase authorizations as of July 29, 2026. The release did not provide forward financial guidance.
Management, verbatim
In a quarter marked by lower market volatility and elevated levels of new issuance, we delivered solid results that demonstrate the growing client adoption of our new solutions across each of our strategic channels.
Chris Concannon, CEO of MarketAxess
In the first half of 2026, our continued investments, expense discipline and capital management contributed to 6% revenue growth and solid earnings growth year-over-year, while supporting healthy operating margins.
Chris Concannon, CEO of MarketAxess
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-outlook section for comparison with reported results
- Gross profit and gross margin
- Operating cash flow
- Free cash flow amount
- Capital expenditures
- Share repurchase amount, shares repurchased, and average repurchase price
- Quarterly dividend payment amount
- Detailed revenue and profitability guidance
- CFO commentary
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.