MarketAxess delivered slightly higher revenue and profitability in Q3, with management attributing performance to growth in non-U.S. credit markets and ongoing traction with new trading protocols. CEO Christopher Concannon pointed to double-digit advances in international client activity and emerging markets, while noting the U.S. credit segment remains pressured by tight spreads and lower volatility. Concannon acknowledged, “Our current model does exceptionally well in higher volatility when spreads are widened out and liquidity is in higher demand. Unfortunately, we have only seen limited periods of volatility over the last several years.”
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MarketAxess (MKTX) Q3 CY2025 Highlights:
- Revenue: $208.8 million vs analyst estimates of $207.4 million (1% year-on-year growth, 0.7% beat)
- Adjusted EPS: $1.84 vs analyst estimates of $1.70 (8.1% beat)
- Adjusted EBITDA: $107.6 million vs analyst estimates of $99.29 million (51.5% margin, 8.4% beat)
- Operating Margin: 41%, down from 42.1% in the same quarter last year
- Market Capitalization: $6.47 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MarketAxess’s Q3 Earnings Call
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Chris Allen (Citi): Asked about the early success of Mid-X and how MarketAxess intends to accelerate technology enhancements amid competitive pressure. CEO Christopher Concannon detailed that the company is scaling Mid-X sessions and investing broadly in automation and portfolio trading, but admitted U.S. credit share gains have been slower than desired.
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Patrick Moley (Piper Sandler): Requested details on the closing auction’s market potential and data strategy. Concannon explained the auction is designed to serve growing index and ETF demand, leveraging the S&P partnership for pricing and aiming to aggregate end-of-day liquidity.
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Alex Kramm (UBS): Inquired about the pace of U.S. block trading adoption. Concannon said block growth is stronger in Europe and emerging markets, but U.S. adoption is improving due to new features and enhanced bank content, with further changes expected to enhance participation.
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Benjamin Budish (Barclays): Asked how MarketAxess can sustain growth in a low-volatility environment. Concannon and CFO Ilene Bieler responded that portfolio trading, automation, and dealer-to-dealer protocols are positioned to perform in such conditions, but wider adoption and higher volatility would support stronger growth.
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Jeffrey Schmitt (William Blair): Queried about the plateau in portfolio trading share for investment grade credit. Concannon noted that while IG portfolio trading has stabilized at 10–12% of volume, high-yield portfolio trading is rising, and MarketAxess has gained a leadership position in that segment.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will focus on (1) adoption rates for new protocols such as Mid-X and the closing auction, (2) further international client growth and trading volume outside North America, and (3) continued expansion of automation and block trading solutions. We will also monitor how shifts in market volatility and competition affect fee capture and overall margin trends.
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