Executive Summary

Q4 2024 net revenue grew 5% YoY to $524.5M; GAAP diluted EPS fell 6% YoY to $1.86 on a higher effective tax rate and investment losses, while adjusted EPS rose 2% to $2.10 . FY24 delivered record net revenue of $2.07B and record adjusted EPS of $8.61 .
Segment drivers were broad-based: Options net revenue hit a record $324.3M (+3% YoY), North American Equities +10%, Europe & APAC +17%; Futures declined 7% on lower ADV; Global FX +3% with higher capture but lower ADNV .
2025 outlook: Cboe introduced mid-single-digit organic total net revenue growth; Data Vantage mid–high single-digit growth; adjusted opex $837–$852M; ETR 28.5–30.5%; capex $75–$85M; D&A $55–$59M (excl. acquired intangibles amort.) .
Capital return: Q4 dividend $0.63/share; no Q4 buybacks (management cited succession process); Q1’25 dividend maintained at $0.63/share .

What Went Well and What Went Wrong

What Went Well

Record Options net revenue ($324.3M, +3% YoY) on higher multi‑listed volumes and stronger market data/access fees; Data Vantage and Cash & Spot also contributed to growth .
International strength: Europe & APAC net revenue +17% YoY with share gains in Europe (24.6%) and improved capture; Japan/Australia volumes rose, supporting diversified growth .
Retail access catalyst: “Uptake [on Robinhood] has been quicker… and greater than expected” with volumes “largely additive” across SPX, VIX and XSP; joint education/marketing to continue .

What Went Wrong

Options market share declined to 30.4% (from 33.5% LY) on lower multi‑listed market share; total Options RPC fell 5% on mix shift away from index options (pressuring capture) .
Futures net revenue fell 7% YoY on a 12% decline in ADV; Global FX ADNV down 3% and market share fell to 19.0% (from 21.3% LY), partly offset by higher capture/1mm .
GAAP EPS down 6% YoY to $1.86 as ETR increased to 29.7% (vs. 26.3% LY) and losses on investments; adjusted ETR also rose to 29.5% (from 27.3% LY) .

Financial Results

Core P&L vs prior year and prior quarter

Metric	Q4 2023	Q3 2024	Q4 2024
Net Revenue (Revenues less cost of revenues, $M)	499.0	532.0	524.5
GAAP Diluted EPS ($)	1.98	2.07	1.86
Adjusted Diluted EPS ($)	2.06	2.22	2.10
GAAP Operating Margin (%)	58.9%	57.8%	56.9%
Adjusted Operating Margin (%)	61.6%	61.7%	61.0%
EBITDA Margin (%)	66.9%	64.1%	60.4%

Estimates vs actuals (S&P Global consensus)

Metric (Q4 2024)	Actual	Consensus (S&P Global)
GAAP Diluted EPS ($)	1.86	N/A – S&P Global consensus unavailable at time of analysis due to rate limit
Adjusted Diluted EPS ($)	2.10	N/A – S&P Global consensus unavailable at time of analysis due to rate limit
Net Revenue ($M)	524.5	N/A – S&P Global consensus unavailable at time of analysis due to rate limit

Note: S&P Global (Capital IQ) estimates could not be retrieved due to an API rate limit at the time of analysis. We will update comparisons when available.

Segment net revenue (Revenues less cost of revenues)

Segment ($M)	Q4 2023	Q3 2024	Q4 2024
Options	314.5	320.9	324.3
North American Equities	86.3	98.0	94.9
Europe & APAC	48.0	55.6	56.2
Futures	32.4	38.0	30.2
Global FX	18.9	20.0	19.4
Digital	(1.1)	(0.5)	(0.5)
Total	499.0	532.0	524.5

Operating detail and tax

Adjusted operating expenses: $204.8M (+7% YoY) on higher travel/promotional, technology support, and professional fees; GAAP opex $226.0M (+10% YoY) also reflects contingent consideration changes .
Effective tax rate: 29.7% (vs. 26.3% LY); adjusted ETR 29.5% (vs. 27.3% LY) .

KPIs and market metrics

KPI	Q4 2023	Q3 2024	Q4 2024
Total Company Options ADV (000s)	14,896	14,882	15,673
Total Options Market Share (%)	33.5%	30.5%	30.4%
Total Options RPC ($)	0.297	0.298	0.281
U.S. Equities – Exchange Market Share (%)	13.0%	10.9%	10.8%
Europe Equities Market Share (%)	23.9%	23.8%	24.6%
Futures ADV (000s)	233.4	273.7	206.4
Futures RPC ($)	1.729	1.767	1.765
Global FX Spot Market Share (%)	21.3%	19.1%	19.0%
Global FX ADNV ($bn)	47.0	48.3	45.6
Global FX Net Capture ($/1mm)	2.60	2.66	2.72

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic total net revenue growth	FY2025	—	Mid single digits	New framework
Data Vantage organic net revenue growth	FY2025	—	Mid to high single digits	New framework
Adjusted operating expenses ($M)	FY2025	—	$837–$852	New framework
Depreciation & Amortization ($M, excl. acquired intangibles amort.)	FY2025	—	$55–$59	New framework
Effective tax rate (adjusted)	FY2025	—	28.5%–30.5%	New framework (range consistent with historical)
Capital expenditures ($M)	FY2025	—	$75–$85	New framework
Organic total net revenue growth	FY2024	6%–8% (Aug) → 7%–9% (Nov)	—	Raised in Q3’24 (context)
Data & Access (Data Vantage) organic growth	FY2024	7%–10% (at lower end expected, Aug)	—	Reaffirmed lower end (context)
Adjusted operating expenses ($M)	FY2024	$795–$805 (Aug) → $798–$808 (Nov)	—	Slight increase (context)
Dividend per share	Q4’24	$0.63	—	Maintained
Dividend per share	Q1’25	—	$0.63	Maintained

Notes: FY2025 guidance introduced this quarter; FY2024 ranges shown for context from prior quarters.

Earnings Call Themes & Trends

Topic	Q-2 (Q2 2024)	Q-1 (Q3 2024)	Current (Q4 2024)	Trend
Product performance (Options/SPX/VIX, 0DTE)	Options growth with SPX index mix supporting capture; record net revenue, adj. EPS despite Digital impairment	Record Options net revenue; SPX/VIX volumes strong; raised FY24 revenue guidance	SPX/VIX toolkit highlighted amid tariffs/macros; SPX 0DTE nearly 1.6M ADV QoQ; record Options net revenue	Positive momentum; mix/capture fluctuates
Retail access	—	—	Robinhood rollout faster and stronger than expected; additive volumes; expanded access and education plans	Positive catalyst for proprietary options
Data/technology (Cboe Titanium, data growth)	Data & Access organic growth; platform investments; EBITDA margins stable	Data & Access +6% YoY; new products; raised total revenue growth; opex framework	Rebrand to Cboe Titanium; tech resources shift to growth; Data Vantage growth 7% FY24; 2025 mid–high single-digit target	Invest-to-grow; durable revenue
Macro/regulatory	—	—	New U.S. administration tone, tariffs adding volatility; 24x5 U.S. equities plan subject to SEC/SIP readiness (late ’25/early ’26 timing indicated)	Volatility tailwinds; regulatory gating
Capital allocation	Share repurchases $90M in Q2; dividend maintained	Q3 repurchases $24.6M; dividend $0.63	No Q4 buybacks due to succession process; dividend maintained; strong cash, low-rate debt	Balanced; opportunistic buybacks likely resume

Management Commentary

CEO: “Each category – Derivatives Markets, Data Vantage, and Cash and Spot Markets – contributed to the fourth quarter and full year growth… We remain well positioned to benefit from the secular market trends” .
Global President on retail: “Uptake [at Robinhood] has been quicker… and greater than we had expected… volumes … largely additive… all three products [SPX, VIX, XSP] have grown in usage” .
CFO on 2025 framework: “Data Vantage organic net revenue growth to be in the mid- to high single-digit range… total organic net revenue mid single-digit… adjusted expense guidance $837–$852M” .
COO on technology: “Cboe Titanium… no plans to commercialize as SaaS today; continue to invest as it powers our businesses globally” .

Q&A Highlights

Data Vantage guidance language: Management reframed to market-standard ranges but consistent with prior 7–10% bandwidth; total organic growth consistent with prior 5–7% framing .
Robinhood ramp: Faster-than-expected rollout, largely additive volumes; education and marketing to deepen adoption; significant runway across ~25M funded accounts (low options penetration) .
24x5 U.S. equities: Demand from global clients; EDGX chosen given extended hours/retail skew; timeline dependent on SEC approvals and consolidated tape readiness (likely end-’25/early-’26) .
Options pricing/capture: Multi‑list pricing tuned dynamically; index pricing changes are less frequent/targeted; 0DTE usage up ~11% YoY in January, supporting retail adoption .
Capital allocation: No Q4 buybacks due to non-public succession process; buybacks remain part of allocation strategy; M&A must be strategic/return-accretive .

Estimates Context

S&P Global consensus EPS and revenue for Q4 2024 were not retrievable at the time of analysis due to an API rate limit. We will refresh and provide beat/miss analysis versus Street once available.
In absence of consensus, we note fundamentals: net revenue +5% YoY; adjusted EPS +2% YoY; sequential net revenue down vs Q3 on Futures softness and lower NA Equities/FX, partially offset by Options and EMEA strength .

Key Takeaways for Investors

Derivatives remain the cornerstone: record Options net revenue with expanding retail access (Robinhood) and resilient SPX/VIX demand position Cboe for continued proprietary product growth, though mix shifts can pressure RPC and market share optics .
International equities momentum (Europe market share 24.6%; APAC growth) and higher EMEA capture diversify revenue and support mid-single-digit organic growth in 2025 .
Data Vantage durability: 2025 mid–high single-digit growth target underpinned by new products, global distribution and tech reallocation (Cboe Titanium), supporting non-transaction revenue quality .
Expense discipline with targeted investment: 2025 adjusted opex +~5–7% enables sales/education in APAC and product initiatives while aiming to maintain ~61% adjusted operating margin profile .
Watch macro/vol catalysts: Tariffs and policy shifts can boost SPX/VIX activity; Futures softness (ADV) and FX share declines are monitoring points for sequential performance .
Capital returns steady (dividend maintained); buybacks likely resume post-succession clarity given $880M adjusted cash and low-cost debt (avg. fixed rate <3%) .
Near-term catalysts: Street estimate updates; Robinhood index options adoption trajectory; SEC progress on 24x5 U.S. equities; continued EU/APAC share/capture gains .

Appendix: Additional Context and Drivers

Revenue accounting context: Total “revenues” rose sharply with higher Section 31 fees, but net revenue (revenues less cost of revenues) is the key metric Cboe and the Street track .
Q4 YoY EPS delta drivers: Higher effective tax rate and losses on investments; adjusted EPS filters these items (e.g., intangible amortization) .
Balance sheet/liquidity: Cash & equivalents $920.3M; adjusted cash $879.5M; total debt $1,441.0M as of 12/31/24 .

Cboe Global Markets, Inc. (CBOE)·Q4 2024 Earnings Summary