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    Richard Fellinger • Autonomous Research

    Richard Fellinger's questions to Tradeweb Markets Inc (TW) leadership

    Richard Fellinger's questions to Tradeweb Markets Inc (TW) leadership • Q1 2025

    Question

    Richard Fellinger asked about capital allocation, specifically how market uncertainty affects the appetite for M&A and at what point the company might consider more opportunistic share buybacks.

    Answer

    CEO William Hult reiterated that M&A remains the preferred use of cash, with a focus on cultural fit and under-resourced technology networks. CFO Sara Furber confirmed the capital allocation waterfall remains organic growth, then M&A, followed by share repurchases and dividends. She stated that while the company's strong balance sheet allows it to be nimble and opportunistic, any deal must be financially disciplined and accretive to revenue and/or earnings growth. Share repurchases beyond offsetting dilution would be a function of accretion analysis.

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    Richard Fellinger's questions to Tradeweb Markets Inc (TW) leadership • Q3 2024

    Question

    Richard Fellinger of Autonomous Research inquired about the longer-term outlook for expense growth and adjusted EBITDA margin expansion over the next few years.

    Answer

    CFO Sara Furber explained that expense growth is variable and depends on the revenue environment and strategic investments. She noted that while they expect to continue expanding margins, the expansion in 2025 might be more muted due to specific factors. These include approximately $35 million in incremental expenses from the full-year impact of the ICD acquisition and about $7 million in higher occupancy costs in the second half of 2025 due to their new headquarters.

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