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Cboe Global Markets, Inc. (CBOE)·Q2 2025 Earnings Summary

Executive Summary

  • Record net revenue $587.3M (+14% YoY) and adjusted diluted EPS $2.46 (+14% YoY); GAAP diluted EPS $2.23 (+68% YoY) lifted by lapping 2024 digital intangible impairment .
  • Q2 beat S&P Global consensus: net revenue vs $574.9M and adjusted EPS vs $2.44; adjusted EPS surprise ~$0.02 and revenue surprise ~$12.5M. Values retrieved from S&P Global.*
  • Guidance raised and tightened: organic total net revenue to high single digits (from mid-to-high single digits) and adjusted OpEx lowered to $832–$847M (from $837–$852M); D&A trimmed to $53–$57M; tax rate and capex reaffirmed .
  • Segment strength broad-based: Options (+19% net revenue), Europe & APAC (+30%), Global FX (+19%); Futures (-14%) softened on lower ADV .
  • Strategic catalyst: decision to wind down Japan equities (immaterial near-term revenue impact; normalised annual OpEx savings $10–$12M), plus subsequent dividend increase to $0.72 for Q3 2025 (+14%) .

What Went Well and What Went Wrong

What Went Well

  • Record net revenue and double-digit adjusted EPS growth driven by robust derivatives volumes, strong Data Vantage sales, and resilient cash/spot markets. “Strong double-digit net revenue growth across Derivatives, Data Vantage, and Cash and Spot Markets drove our outstanding results.” — CEO Craig Donohue .
  • Options momentum: net revenue $364.8M (+19% YoY) on 20% total options ADV increase; market data +15% and access/capacity fees +9% YoY .
  • Europe & APAC: net revenue $70.4M (+30% YoY), Europe ADNV €54.5B (+28% industry volumes) and market share up to 25.1% from 22.5% .

What Went Wrong

  • Futures net revenue fell to $30.1M (-14% YoY) with a 13% decline in ADV and -19% net transaction/clearing fees .
  • U.S. Equities market share softened to 10.5% (from 11.4% YoY) amid higher industry off-exchange share; off-exchange ATS block share down to 15.2% (from 17.8%) .
  • GAAP OpEx optics benefited from lapping last year’s impairment; adjusted OpEx rose (+8% YoY) on higher comp, D&A, and technology support services .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Total Revenues ($USD Millions)$1,107.6 $1,195.0 $1,173.5
Net Revenue ($USD Millions)$524.5 $565.2 $587.3
Diluted EPS (GAAP) ($)$1.86 $2.37 $2.23
Adjusted Diluted EPS ($)$2.10 $2.50 $2.46
Operating Margin % (GAAP)56.9% 62.6% 57.7%
Adjusted Operating Margin %61.0% 66.0% 63.7%
EBITDA Margin % (GAAP)60.4% 67.9% 62.1%
Adjusted EBITDA Margin %63.2% 67.2% 65.1%
Segment Net Revenue ($USD Millions)Q4 2024Q1 2025Q2 2025
Options$324.3 $352.4 $364.8
North American Equities$94.9 $94.6 $98.4
Europe & APAC$56.2 $64.1 $70.4
Futures$30.2 $32.8 $30.1
Global FX$19.4 $21.3 $23.6
KPIsQ4 2024Q1 2025Q2 2025
Total Company Options ADV (000s)15,673 18,183 17,301
Total Options Market Share %30.4% 31.1% 30.2%
Total Options RPC ($)0.281 0.287 0.300
Futures ADV (000s)206.4 249.4 220.8
Futures RPC ($)1.765 1.740 1.673
U.S. Equities Exchange Market Share %10.8% 10.5% 10.5%
U.S. Off-Exchange ATS Block Share %17.3% 17.7% 15.2%
Europe Equities Market Share %24.6% 24.8% 25.1%
Global FX ADNV ($B)45.6 51.9 55.9
Global FX Net Capture ($ per $1M)2.72 2.77 2.81
Q2 2025 Actual vs S&P Global ConsensusActualConsensus Mean*Surprise
Net Revenue ($USD Millions)$587.3 $574.9*+$12.5M (~+2.2%)*
Adjusted Diluted EPS ($)$2.46 $2.44*+$0.02*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Organic Total Net Revenue GrowthFY 2025Mid to high single digits High single digits Raised
Data Vantage Organic Net Revenue GrowthFY 2025Mid to high single digits Mid to high single digits Maintained
Adjusted Operating Expenses ($M)FY 2025$837–$852 $832–$847 Lowered
Depreciation & Amortization ($M, excl. acquired intangibles)FY 2025$55–$59 $53–$57 Lowered
Effective Tax Rate on Adjusted Earnings (%)FY 202528.5–30.5 28.5–30.5 Reaffirmed
Capital Expenditures ($M)FY 2025$75–$85 $75–$85 Reaffirmed
Dividend per ShareQ3 2025$0.63 (Q2 paid) $0.72 (declared) Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q2 2025)Trend
Derivatives strength & SPX/0DTEQ4: options volumes strong across multi-listed; mix shift lowered RPC . Q1: record trading volumes; SPX and multi-listed drove +16% derivatives net revenue .CEO: robust volumes across multi-list and proprietary index options drove results; expanded hours and functionality for complex/simple orders .Improving
Data Vantage salesQ4: +7% YoY . Q1: +8% YoY .CFO: +11% YoY; reaffirm mid-to-high single-digit growth for 2025 .Accelerating
Europe & APACQ4: +17% YoY; Europe market share 24.6% . Q1: +18% YoY; Europe share 24.8% .+30% YoY; Europe share 25.1% and ADNV up sharply; Australia slight share down; Japan share down .Improving in Europe
U.S. Equities shareQ4: 10.8% (-); off-exchange up industry-wide . Q1: 10.5%; lower capture and share .10.5% exchange share; off-exchange ATS block share 15.2% (down YoY) .Stable to softer
Japan equities wind-downNot present in Q4/Q1.Announced exit; immaterial revenue impact; OpEx savings $2–$4M in 2025, $10–$12M normalised .Restructuring
Expense discipline & guidanceQ4: introduced 2025 OpEx guidance $837–$852M . Q1: reaffirmed .Lowered to $832–$847M; D&A trimmed; tax/capex reaffirmed .Positive

Management Commentary

  • “Net revenue grew 14 percent and adjusted diluted EPS increased 14 percent year-over-year… I am excited to build on the exceptional first half results as we work towards delivering long-term value for shareholders.” — CEO Craig Donohue .
  • “Derivatives net revenue grew 17 percent… Data Vantage produced 11 percent net revenue growth, and Cash and Spot Markets net revenue increased 11 percent.” — CFO Jill Griebenow .
  • Prepared remarks emphasized derivatives execution, market access enhancements, and disciplined capital allocation; management highlighted elevating leaders and ongoing optimization initiatives .

Q&A Highlights

  • Japan equities exit: management expects a ~$5M pre-tax charge in Q3 2025 (non-cash impairment and software), excluded from adjusted OpEx; savings $2–$4M in FY25 and $10–$12M annualised thereafter .
  • Derivatives client mix: institutional hedging drove April index options records; retail re-engaged as volatility moderated in May/June .
  • S&P Global relationship: CEO described the index partnership as long-term and valued, aiming to maintain/extend the agreement .
  • Operational leadership transition: commentary on elevating Chris Isaacson and Cathy Clay to support strategy and execution .

Estimates Context

  • Q2 2025 adjusted EPS $2.46 modestly beat S&P Global consensus $2.44; Q1 2025 adjusted EPS $2.50 vs consensus $2.36; Q4 2024 adjusted EPS $2.10 vs consensus $2.12 (slight miss). Values retrieved from S&P Global.*
  • Revenue context: Cboe reports net revenue (revenues less cost of revenues) as its primary revenue KPI; Q2 net revenue $587.3M exceeded S&P Global consensus $574.9M by ~$12.5M. Values retrieved from S&P Global.*
  • Estimate trajectory suggests analysts may need to raise derivatives and Europe/APAC segment expectations while trimming futures assumptions given ADV softness.
S&P Global Consensus*Q4 2024Q1 2025Q2 2025
Revenue Consensus Mean ($USD Millions)526.9562.4574.9
Primary EPS Consensus Mean ($)2.11882.36382.4442
Revenue - # of Estimates111212
Primary EPS - # of Estimates161616

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Mix shift towards higher-value index options and strong multi-listed volumes underpin net revenue resilience; Europe/APAC momentum is increasingly a growth driver .
  • Guidance raise and OpEx trim signal confidence and expense discipline; expected Japan exit savings enhance medium-term margin durability .
  • Futures softness warrants monitoring; if ADV stabilises, margin recovery could follow, but near-term headwinds remain .
  • Data Vantage’s double‑digit growth and subscription traction support multiple expansion as recurring revenue rises .
  • Capital returns remain robust (Q2 dividend paid $0.63; Q3 declared $0.72; continued buybacks), supported by $1.24B adjusted cash and manageable debt ($1.44B) .
  • Trading catalysts: elevated SPX/0DTE engagement and European share gains; watch monthly volume/RPC updates for trend verification .
  • Near-term trading: positive skew given beats and guidance raise; medium-term thesis supported by derivatives franchise strength, Data Vantage growth, and structural OpEx savings .