MarketAxess Tops Q4 EPS Estimates, Raises Dividend 2.6% and Expands Buyback
MarketAxess reported Q4 adjusted EPS of $1.68, topping estimates by 1.2% despite a 2.9% year-over-year decline, while revenues grew 3.5% to $209 million but fell short of consensus by 1.6%. The board approved a 2.6% dividend increase to $0.78 per share and authorized up to $400 million in additional share repurchases.
1. Fourth-quarter financial results
MarketAxess delivered adjusted earnings per share of $1.68 in Q4, beating the consensus by 1.2% but declining 2.9% year over year. Total revenue rose 3.5% to $209 million, missing estimates by 1.6%, as operating expenses climbed 9% to $133.4 million due to higher compensation and G&A costs.
2. Operational drivers and trading volumes
Commission revenues increased 4% to $181.3 million, while information services and technology services grew 2% each. Total credit trading volume advanced 11% year over year to $958.5 billion, led by 15% growth in high-yield and emerging markets and a 20% rise in Eurobond volumes.
3. Capital deployment and shareholder returns
The company repurchased $360 million of stock in 2025 and received approval for up to $400 million more, executing a $300 million accelerated share repurchase agreement. It also raised the quarterly dividend by 2.6% to $0.78 per share, payable March 4 to holders of record February 18.
4. Outlook and medium-term targets
For full-year 2025, revenue climbed 4% to $846.3 million and adjusted EPS reached $7.39. Management expects mid-single-digit growth in service revenues in 2026, total expenses of $530–545 million, and is targeting annual revenue growth of 8–9% with 75–125 basis points of operating margin expansion through 2028.