First Quarter Highlights*
- Record Diluted EPS for the Quarter of $2.37, Up 21 percent
- Record Adjusted Diluted EPS¹ for the Quarter of $2.50, Up 16 percent
- Record Net Revenue for the Quarter of $565.2 million, Up 13 percent
- Increases 2025 Organic Total Net Revenue Growth Target2 to mid to high single digits, from mid single digits; Reaffirms Cboe Data Vantage3 Organic Net Revenue Growth Target2 of mid to high single digits
- Reaffirms 2025 Adjusted Operating Expense Guidance2 of $837 to $852 million
CHICAGO, May 2, 2025 -- Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the first quarter of 2025.
"In the first quarter, Cboe reported record quarterly net revenue of $565 million, record diluted EPS of $2.37, and record adjusted diluted EPS1 of $2.50, with strong results from each of our Derivatives, Cash and Spot Markets, and Data Vantage categories," said Fredric Tomczyk, Cboe Global Markets Chief Executive Officer. "Following a record 2024, net revenue grew 13 percent, diluted EPS increased 21 percent and adjusted diluted EPS1 increased 16 percent year-over-year in the first quarter of 2025 as investors utilized Cboe's product suite to help navigate dynamic macroeconomic and geopolitical conditions. The second quarter is off to a robust start, and we look forward to continuing to execute on our strategic vision by providing clients with a diverse toolkit of products for any market environment."
"The broad-based strength of our business model was on display during the first quarter, resulting in quarterly records for total net revenue and adjusted diluted EPS1," said Jill Griebenow, Cboe Global Markets Executive Vice President, Chief Financial Officer. "Derivatives net revenue grew 16 percent as we saw record trading volumes across our multi-listed and proprietary options products. Cash and Spot Markets net revenue increased 10 percent, and Data Vantage recorded 8 percent net revenue growth. Moving forward, we are increasing our organic total net revenue growth2 guidance range to mid to high single digits from mid single digits, and we are reaffirming our Data Vantage organic net revenue growth2 range of mid to high single digits for 2025. In addition, we are reaffirming our full year adjusted operating expense guidance2 range of $837 to $852 million. We are pleased with the strong start to the year and remain focused on producing durable shareholder returns in the quarters ahead."
* | All comparisons are first quarter 2025 compared to the same period in 2024. |
(1) | A full reconciliation of our non-GAAP results to our GAAP ("Generally Accepted Accounting Principles") results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
(2) | Specific quantifications of the amounts that would be required to reconcile the company's organic net revenue growth guidance and adjusted operating expenses guidance are not available. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related revenues and costs that would be required to reconcile to GAAP revenues less cost of revenues, GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company's organic net revenue growth guidance and adjusted operating expenses would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
(3) | Cboe Data Vantage refers to the company's Cboe Data Vantage business (formerly known as Data and Access Solutions). Cboe Data Vantage is subsequently referred to as Data Vantage throughout this press release. |
Consolidated First Quarter Results -Table 1
Table 1 below presents summary selected unaudited condensed consolidated financial information for the company as reported and on an adjusted basis for the three months ended March 31, 2025 and 2024.
Table 1 | |||||||||||||||||
Consolidated First Quarter Results ($ in millions except per share and percentages) | 1Q25 | 1Q24 | Change | 1Q25 Adjusted¹ | 1Q24 Adjusted¹ | Change | |||||||||||
Total Revenues Less Cost of Revenues | $ 565.2 | $ 502.1 | 13 % | $ 565.2 | $ 502.1 | 13 % | |||||||||||
Total Operating Expenses | $ 211.3 | $ 219.7 | (4) % | $ 192.4 | $ 192.9 | * % | |||||||||||
Operating Income | $ 353.9 | $ 282.4 | 25 % | $ 372.8 | $ 309.2 | 21 % | |||||||||||
Operating Margin % | 62.6 % | 56.2 % | 6.4 pp | 66.0 % | 61.6 % | 4.4 pp | |||||||||||
Net Income Allocated to Common Stockholders | $ 249.4 | $ 208.3 | 20 % | $ 263.1 | $ 227.7 | 16 % | |||||||||||
Diluted Earnings Per Share | $ 2.37 | $ 1.96 | 21 % | $ 2.50 | $ 2.15 | 16 % | |||||||||||
Operating EBITDA¹ | $ 384.2 | $ 319.7 | 20 % | $ 384.7 | $ 320.3 | 20 % | |||||||||||
Operating EBITDA Margin %¹ | 68.0 % | 63.7 % | 4.3 pp | 68.1 % | 63.8 % | 4.3 pp | |||||||||||
EBITDA¹ | $ 383.7 | $ 337.1 | 14 % | $ 383.8 | $ 337.3 | 14 % | |||||||||||
EBITDA Margin %¹ | 67.9 % | 67.1 % | 0.8 pp | 67.9 % | 67.2 % | 0.7 pp |
- Total revenues less cost of revenues (referred to as "net revenue"2) of $565.2 million increased 13 percent, compared to $502.1 million in the prior-year period, a result of increases in derivatives markets, cash and spot markets, and Data Vantage net revenue2.
- Total operating expenses were $211.3 million versus $219.7 million in the first quarter of 2024, a decrease of $8.4 million. This decrease was primarily due to lower depreciation and amortization, other expenses, and travel and promotional expenses, partially offset by an increase in technology support services and compensation and benefits. Adjusted operating expenses1 of $192.4 million were down compared to $192.9 million in the first quarter of 2024. The decrease was primarily due to lower other expenses, travel and promotional expenses, and professional fees and outside services, balanced by higher technology support services, depreciation and amortization, and compensation and benefits.
- The effective tax rate for the first quarter of 2025 was 28.4 percent as compared with 28.3 percent in the first quarter of 2024. The effective tax rate on adjusted earnings1 was 28.3 percent, an increase of 0.2 percentage points when compared with 28.1 percent in last year's first quarter.
- Diluted EPS for the first quarter of 2025 increased 21 percent to $2.37 compared to the first quarter of 2024. Adjusted diluted EPS1 of $2.50 increased 16 percent compared to 2024 first quarter results.
Business Segment Information:
Table 2 | |||||
Total Revenues Less Cost of Revenues by Business Segment (in millions) | 1Q25 | 1Q24 | Change | ||
Options | $ 352.4 | $ 307.4 | 15 % | ||
North American Equities | 94.6 | 92.6 | 2 % | ||
Europe and Asia Pacific | 64.1 | 54.1 | 18 % | ||
Futures | 32.8 | 30.5 | 8 % | ||
Global FX | 21.3 | 18.4 | 16 % | ||
Digital³ | — | (0.9) | * % | ||
Total | $ 565.2 | $ 502.1 | 13 % |
(1) | A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
(2) | See the attached tables on page 10 for "Net Revenue by Revenue Caption." |
(3) | The Digital segment results are prospectively included in the Futures segment beginning in the first quarter of 2025. Digital results from the first quarter of 2024 have been retained in the former Digital segment for comparative purposes. |
* | Not meaningful |
Discussion of Results by Business Segment1:
Options:
- Record Options net revenue of $352.4 million was up $45.0 million, or 15 percent, from the first quarter of 2024. Net transaction and clearing fees2 increased primarily as a result of a 23 percent increase in total options average daily volume ("ADV") versus the first quarter of 2024. Market data fees were 15 percent higher and access and capacity fees were 6 percent higher as compared to the first quarter of 2024.
- Net transaction and clearing fees2 increased $43.1 million, or 16 percent, reflecting a 25 percent increase in multi-listed options ADV and a 17 percent increase in index options ADV. Total options revenue per contract ("RPC") declined 4 percent compared to the first quarter of 2024. The decrease in total options RPC was due to a mix shift, with index options representing a lower percentage of total options volume.
- 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.
North American (N.A.) Equities:
- N.A. Equities net revenue of $94.6 million increased $2.0 million, or 2 percent, from the first quarter of 2024, reflecting higher access and capacity fees and proprietary market data, partially offset by lower net transaction and clearing fees2 and a decline in industry market data fees.
- Net transaction and clearing fees2 decreased by $2.6 million, or 9 percent, compared to the first quarter of 2024. The decrease was driven by lower U.S. Equities exchanges market share, as well as lower net capture for U.S. Equities exchanges and U.S. Equities off-exchanges versus 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. Cboe's U.S. Equities off-exchange market share was 17.7 percent, up from 17.6 percent in the first quarter of 2024. 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.
Europe and Asia Pacific (APAC):
- Record Europe and APAC net revenue of $64.1 million increased by 18 percent compared to the first quarter of 2024, reflecting growth in net transaction and clearing fees2 and non-transaction revenues. On a constant currency basis3, net revenues were $65.9 million, up 22 percent on a year-over-year basis. European Equities average daily notional value ("ADNV") traded on Cboe European Equities was €13.8 billion, up 39 percent compared to the first quarter of 2024 given a 34 percent increase in industry market volumes. Japanese Equities ADNV was 2 percent higher and Australian Equities ADNV was 7 percent higher than the first quarter of 2024.
- For the first quarter of 2025, Cboe European Equities had 24.8 percent market share, up from 23.7 percent in the first quarter of 2024. Cboe Australia had 19.4 percent market share for the first quarter of 2025, down from 20.4 percent in the first quarter of 2024. Cboe Japan grew market share to 5.4 percent in the first quarter of 2025 from 5.0 percent in the first quarter of 2024.
Futures:
- Futures net revenue of $32.8 million increased $2.3 million, or 8 percent, from the first quarter of 2024 driven by a 9 percent increase in net transaction and clearing fees2.
- Net transaction and clearing fees2 increased $2.2 million, reflecting a 13 percent increase in ADV during the quarter.
Global FX:
- Record Global FX net revenue of $21.3 million increased 16 percent as compared to the first quarter of 2024. The increase was due to higher net transaction and clearing fees2. ADNV traded on the Cboe FX platform was $51.9 billion for the quarter, up 15 percent compared to last year's first quarter, and net capture rate per one million dollars traded was $2.77 for the first quarter of 2025, up 6 percent compared to $2.62 in the first quarter of 2024.
(1) | The Digital segment results are prospectively included in the Futures segment beginning in the first quarter of 2025. Digital results from the first quarter of 2024 have been retained in the former Digital segment for comparative purposes. |
(2) | See the attached tables on page 10 for "Net Transaction and Clearing Fees by Business Segment." |
(3) | A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
2025 Fiscal Year Financial Guidance
Cboe provided guidance for the 2025 fiscal year as noted below.
- Organic total net revenue growth1 is expected to be in the mid to high single digits range, up from previous guidance calling for mid single digits in 2025.
- Reaffirms Data Vantage organic net revenue growth1 range of mid to high single digits in 2025.
- Reaffirms adjusted operating expenses1 in 2025 are expected to be in the range of $837 to $852 million. The guidance excludes the expected amortization of acquired intangible assets of $70 million; the company reflects the exclusion of this amount in its non-GAAP reconciliation.
- Reaffirms depreciation and amortization expense in 2025 is expected to be in the range of $55 to $59 million, excluding the expected amortization of acquired intangible assets.
- Reaffirms the effective tax rate on adjusted earnings1 for the full year 2025 is expected to be in the range of 28.5 to 30.5 percent. Significant changes in trading volume, expenses, tax laws or rates and other items could materially impact this expectation.
- Reaffirms capital expenditures in 2025 are expected to be in the range of $75 to $85 million.
(1) | Specific quantifications of the amounts that would be required to reconcile the company's organic and inorganic growth guidance, adjusted operating expenses guidance, annualized adjusted operating expenses guidance, and the effective tax rate on adjusted earnings guidance are not available. Acquisitions are considered organic after 12 months of closing. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related revenues and costs that would be required to reconcile to GAAP revenues less cost of revenues, GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company's organic growth, adjusted operating expenses, annualized adjusted operating expenses, and the effective tax rate on adjusted earnings would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
Capital Management
At March 31, 2025, the company had cash and cash equivalents of $1,047.2 million and adjusted cash2 of $1,046.7 million. Total debt as of March 31, 2025 was $1,441.5 million.
The company paid cash dividends of $66.4 million, or $0.63 per share, during the first quarter of 2025 and utilized $30.0 million to repurchase approximately 145 thousand shares of its common stock under its share repurchase program 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.
Earnings Conference Call
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. The conference call and any accompanying slides will be publicly available via live webcast from the Investor Relations section of the company's website at www.cboe.com under Events & Presentations. Participants may also listen via telephone by dialing (800) 715-9871 (toll-free) or (646) 307-1963 (toll) and using the Conference ID 8325940. Telephone participants should place calls 10 minutes prior to the start of the call. The webcast will be archived on the company's website for replay.
(2) | A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See "Non-GAAP Information" in the accompanying financial tables. |
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across North America, Europe, and Asia Pacific. Above all, Cboe is committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Some factors that could cause actual results to differ include: the loss of our 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 our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel, increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our global operations, growth, and strategic acquisitions or alliances effectively; increases in the cost of the products and services we use; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty investment, and default risks, associated with operating our clearinghouses; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing our business interests and our regulatory responsibilities; the loss of key customers or a significant reduction in trading or clearing volumes by key customers; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the accuracy of our estimates and expectations; and litigation risks and other liabilities. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
The condensed consolidated statements of income and balance sheets are unaudited and subject to revision.
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