A volatile macroeconomic backdrop and growing interest in electronic trading boosted Tradeweb’s first-quarter results, as the firm
posted double-digit growth in revenue, volume, and net income.
Tradeweb generated $509.7 million in revenue in the
first quarter of 2025, marking a 24.7% increase year-over-year. Revenue rose 25.8% on a constant currency basis. The
company’s performance was boosted by $2.5 trillion in average daily volume
(ADV), up 33.7% from the prior year period.
Revenue Soars on Rising Institutional Demand
This included new quarterly ADV records across major
categories such as U.S. government bonds, European government bonds, mortgages,
and swaps/swaptions longer than one year.
“While market volatility contributed to record
volumes, we also saw positive market share trends and greater adoption of
electronic protocols and tools,” commented Billy Hult, the CEO of Tradeweb.
Net income rose 17.4% to $168.3 million, while
adjusted net income climbed 22.5% to $205.7 million. The company reported a
54.6% adjusted EBITDA margin, translating into $278.2 million in adjusted
EBITDA, up from $219.5 million a year ago.
The Rates segment contributed $265.4 million in
revenue, a 24% increase year-over-year. U.S. government bond ADV hit a record
high, supported by strong institutional and wholesale trading.
Mortgage ADV also set a new high, rising 19.2%, with
hedge fund activity and robust TBA trading driving volumes. Meanwhile, European
government bond ADV jumped 18.9%, reflecting broad institutional participation.
In Credit markets, revenue rose 7% to $124 million as
ADV expanded 39.4%. Tradeweb reported record trading in fully electronic U.S.
high-grade and high-yield credit and credit default swaps. U.S.
credit ADV increased 10.4%, and European credit ADV rose 11.1%, aided by rising
adoption of protocols like request-for-quote and Portfolio Trading.
Other Segments and Capital Moves
Equities revenue grew 16.1% to $31.4 million despite a
3.3% drop in ADV, with institutional platforms in the U.S. and Europe
offsetting weakness in wholesale ETF trading. In Money Markets, revenue surged
160.3% to $43.7 million, driven by the integration of ICD and strong repo
activity tied to the Fed’s balance sheet reductions.
Market data revenue climbed 33.4% to $38.7 million,
benefiting from historical dataset sales and higher LSEG data fees. Operating
expenses increased 26.8% to $305.6 million, reflecting higher incentive
compensation, headcount growth, and foreign exchange losses. Adjusted expenses
rose 21.8%.
The company ended the quarter with $1.3 billion in
cash and no draw on its $500 million credit facility. It declared a $0.12 per
share dividend, up 20% year-over-year, payable June 16 to shareholders of
record as of June 2.
The company continued expanding its leadership team
and partnerships, including a partnership with Coremont and the appointment of
new co-heads for global markets. Rich Repetto also joined the board in March.
This article was written by Jared Kirui at www.financemagnates.com.
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