Tradeweb Markets (TW)·Q4 2025 Earnings Summary
Tradeweb Posts Record Q4 Revenue, 26th Straight Record Year as ADV Surges 23%
February 5, 2026 · by Fintool AI Agent
Tradeweb Markets delivered a strong Q4 2025, reporting record quarterly revenue of $521.2 million and extending its streak to 26 consecutive years of record annual revenue. The electronic trading platform beat consensus estimates on both the top and bottom line, with average daily volume surging 23.3% year-over-year to $2.8 trillion.
Net income more than doubled to $367.1 million, though this was heavily boosted by $205.4 million in gains from Canton Coin holdings following the start of spot trading in November 2025. Excluding crypto gains, adjusted net income rose 14.2% to $207.0 million.
Did Tradeweb Beat Earnings?
Yes. Tradeweb beat on both revenue and EPS, continuing an unbroken streak of estimate beats.
*Values retrieved from S&P Global
8-Quarter Beat/Miss History:
*Values retrieved from S&P Global
Tradeweb has delivered a beat streak over the past six quarters, reflecting consistent execution and the secular shift toward electronic trading.
Ask Fintool AI AgentWhat Drove the Results?
Rates: The Growth Engine (+16.2% YoY)
Rates revenue of $279.1 million represented 53.5% of total revenue and grew 16.2% year-over-year. ADV was up 33.5% driven by:
- Swaps/swaptions < 1-year: ADV up 82.1% YoY
- Swaps/swaptions ≥ 1-year: Record volume, up 25.5% YoY
- European government bonds: Record ADV, up 29.7% YoY
- Mortgages: ADV up 9.7% on strong TBA activity
Swaps 20th Anniversary: 2025 marked 20 years since Tradeweb launched its electronic interest rate swaps platform. Global swaps delivered record quarterly revenues (+25% YoY), with core risk market share rising 70+ bps YoY to a new record. Total market share increased from 20.8% to 23.3% YoY. The cleared swaps market remains ~30% electronic on a notional basis—significant runway ahead.
Credit: RFQ Gaining Traction (+4.3% YoY)
Credit revenue grew 4.3% to $118.4 million despite ADV rising 22.9%. The slower revenue growth reflects mix shift toward lower-fee protocols as certain dealers migrated to fixed subscription fees.
Key Q4 credit highlights:
- RFQ share of overall TRACE: New quarterly record
- Institutional RFQ ADV: Up 10%+ YoY across both IG and HY
- Block share gains: +130 bps in IG, +65 bps in HY (fully electronic)
- Active users: Up 18% YoY
- AllTrade volume: $200B+ in Q4, with all-to-all ADV up 45% YoY
Management emphasized that RFQ is expected to be "the number one driver of revenue growth in U.S. credit going forward."
Other: Canton Network Catalyst (+94.3% YoY)
The "Other" segment nearly doubled to $12.8 million, primarily from digital asset revenue earned for validation services on the Canton Network. This highlights Tradeweb's strategic positioning in blockchain-based institutional finance.
Canton Coin: The Wildcard
The headline net income surge (+129.5% YoY) was largely driven by $205.4 million in realized and unrealized gains on Tradeweb's Canton Coin holdings. In November 2025, spot trading of Canton Coin began across global digital asset exchanges, triggering a material valuation gain.
As of December 31, 2025, Tradeweb held 1.6 billion Canton Coins valued at $242.7 million. The company also diversified exposure by acquiring pre-funded warrants in Tharimmune (THAR), a publicly traded digital asset treasury company.
Key point: These gains are excluded from adjusted metrics. Adjusted net income of $207.0 million (+14.2% YoY) provides a cleaner view of operating performance.
How Did the Stock React?
Tradeweb shares traded up modestly following the report:
- Regular session close: $100.82 (+1.4%)
- After-hours: $103.01 (+2.2% from close)
The stock has pulled back 34% from its 52-week high of $152.65, creating a lower bar heading into the print. The after-hours reaction suggests the beat and strong January volumes were viewed favorably.
What Did Management Guide?
Full-Year 2026 Expense Guidance
Management indicated the midpoint (~11% expense growth) is in line with the company's average since 2016. They expect to drive adjusted EBITDA margin expansion at either end of the range, though expansion will be "more muted" as margins are already high and the company prioritizes investing for growth.
January 2026 Momentum
CEO Billy Hult reported record volumes and revenues in January, with total revenue growth of 17% YoY. Adjusting for one fewer trading day and $6M of LSEG market data timing differences, average daily revenue growth was 26% YoY.
"We reported record volumes in revenues in January, which translated into total revenue growth of 17% year-over-year... Adjusting for these two factors, average daily revenue growth was 26% year-over-year, showcasing how our sophisticated clients and dealers continue to be very active across our global markets."
Hult noted that momentum has continued into February: "a really strong start to February."
Capital Allocation: Dividend Raised, Buyback Expanded
Tradeweb announced several shareholder-friendly actions:
During Q4 2025, Tradeweb repurchased 987,379 shares at an average price of $107.29. The new $500 million authorization will begin once the remaining $23.2 million under the 2022 program is exhausted.
Ask Fintool AI AgentWhat Changed From Last Quarter?
The margin compression QoQ reflects increased operating expenses (+9.2% YoY) from headcount additions and technology investments. However, the massive Canton Coin gains and strong volume growth more than offset this.
Key Strategic Highlights
Blockchain & Digital Assets
- Completed industry's first on-chain electronic auction for brokered CDs
- Announced Chainlink collaboration to publish FTSE U.S. Treasury Benchmark Closing Prices on-chain
- Participated in third wave of transactions on Canton Network
- Securitize (Tradeweb convertible note holder) announced $1.25B pre-money business combination
Geographic & Product Expansion
- Launched Alternative Trading System for sukuk and SAR-denominated debt in Saudi Arabia
- Completed first fully electronic European invoice spread trade via RFM
- Expanded dealer algo capabilities for U.S. Treasuries
- Expanded ECB collaboration for repo trading services
Full-Year 2025 Summary
FY 2025 marked Tradeweb's 26th consecutive year of record annual revenue, underscoring the durability of its multi-asset, multi-client model.
Forward Estimates
Street expectations for FY 2026:
*Values retrieved from S&P Global
The FY 2026 revenue consensus of $2.28 billion implies continued double-digit growth as electronification trends persist and Tradeweb expands its product and geographic footprint.
Ask Fintool AI AgentQ&A Highlights: What Did Analysts Ask?
On 2026 Market Outlook (Piper Sandler): CEO Billy Hult painted a constructive picture for 2026, highlighting several tailwinds: real debate on Fed timing driving rates activity, growing debt markets from AI infrastructure ($600B+ in spending driving bond issuance by hyperscalers), and central bank policy divergence spurring cross-border trading.
"AI is real, right? The hyperscalers will be selling bonds... $600 billion of AI infrastructure spent, right? That's going to lead to more rates trading."
On Bank Deregulation (Piper Sandler): Hult emphasized the importance of strong dealer partners, noting that Goldman, Morgan Stanley, J.P. Morgan, and Citi earned over $55 billion in FIC revenues in 2025.
"The swag is back for these firms, and the numbers kind of prove it... As a trusted partner in the markets with those kind of firms, it's an incredibly good outcome for us."
On AI Utilization (Bank of America): Hult described Tradeweb's AI approach as commercially focused—predictive AI is being applied to unlock "less liquid markets and larger notional trades" where pricing signals are weakest. The company employs data scientists who sit directly with product teams.
On Credit Competition (Redburn): Asked about the competitive credit environment, Hult outlined the path to share gains: partnership with banks, linking markets (cross-asset), pre-trade data quality, and solving for risk and dealer inventories.
"Month to month, quarter to quarter, we are focused on the credit business... It is an enormous focus for me and for the company to continue in a competitive environment, to be best in class there."
On Mortgage Outlook (J.P. Morgan): Hult called mortgages his "favorite child" due to its high electronification and risk trading history. With primary issuance increasing and GSE commentary from the administration, January mortgage revenues were up 15%. He sees systematic players eventually entering the market as settlement cycles improve.
On Expense Flexibility (Goldman Sachs): CFO Sara Furber explained that ~55% of expenses are fixed and ~45% are variable/discretionary, giving flexibility to pace spend based on revenue environment. She cited 2023 (5% revenue growth, still delivered 43 bps margin expansion) as proof of the model's flexibility.
Tokenization: DTCC Pilot Launching H2 2026
CFO Sara Furber provided significant updates on Tradeweb's digital asset strategy:
- DTCC No-Action Letter: In December 2025, the SEC delivered a No-Action Letter to DTCC for a tokenization pilot program
- Tradeweb's Role: Positioned as the "non-equity venue, really leading the charge" for the pilot
- Timeline: Program can launch in H2 2026, with tokenized Treasuries expected to be a starting point
- Infrastructure View: "We don't really view [tokenization] as disintermediating what we do. We think of it as an infrastructure upgrade."
On Canton Network revenue, the company earned $6.6 million in Q4 from its super validator role. 2026 Canton-related revenue is expected to be similar to 2025 (~$11M), though this can vary based on coin pricing and network dynamics.
Key Risks & Considerations
- Canton Coin Volatility: The $242.7M coin position creates earnings volatility that may confuse investors focused on operating fundamentals
- Fee Compression: Credit revenue grew only 4.3% despite 22.9% volume growth, indicating ongoing mix shift toward lower-margin protocols
- Expense Growth: Adjusted expenses grew 11.9% YoY as Tradeweb invests in headcount and technology
- Stock Pullback: Shares down 34% from highs despite strong fundamentals, suggesting valuation concerns or sector rotation
The Bottom Line
Tradeweb delivered a clean beat on both revenue (+2.7%) and adjusted EPS (+4.9%), extending its streak of record annual revenues to 26 years. The core business showed strong momentum with ADV up 23%, led by Rates and supported by new product initiatives. The Canton Coin gains were a one-time boost to reported earnings but highlight Tradeweb's strategic positioning in blockchain infrastructure. With January ADV of $3.1 trillion and a 17% dividend hike, management is signaling confidence in sustained growth. The stock's muted reaction suggests the market wants to see continued execution before re-rating the multiple.
View Tradeweb Company Profile · Read Full Transcript · Q3 2025 Earnings