MKTX · MarketAxess Holdings Inc.

MarketAxess delivered record Q1 2026 results with total revenues reaching $233.4 million, a 12% increase from the prior year, fueled by strong growth across credit and rates products. Commission revenue hit a record $203 million, up 12%, with total credit commissions at $183.8 million (9% YoY) driven by 21% growth in emerging markets and eurobonds despite a 5% decline in variable FPM due to protocol and product mix. Rates commissions surged 29% to $9.0 million on 16% ADV growth and higher FPM. Services revenue rose 10% to a record $29.9 million, supported by information, post-trade, and technology services including contributions from RFQ-hub. Expenses increased 10% to $132.5 million, but operating margin expanded to 43.2% (44.2% ex-notable items), reflecting efficient cost management amid foreign currency impacts. GAAP net income of $78.1 million and EPS of $2.20 were bolstered by a 6% share count reduction from the completed $300 million ASR. CEO Chris Concannon highlighted record trading volumes across channels—35% block trading ADV growth to $6.6 billion, 51% portfolio trading to $1.9 billion, and 3% dealer-initiated to $1.9 billion—attributing strength to volatility, global client demand, and differentiated liquidity. The board's $0.78 quarterly dividend underscores confidence in cash generation, with $537.4 million in liquid assets as of March 31, 2026, despite borrowings for the ASR.