MarketAxess Posts Mixed Q4 Results, Guides for Higher Expenses in 2026
MarketAxess Holdings Inc (NASDAQ:MKTX) reported financial results for the fourth quarter and full year 2025, delivering earnings that narrowly topped analyst expectations but revenue that fell short. The electronic fixed-income trading platform also provided guidance for the coming year that anticipates a significant rise in operating expenses.
Earnings and Revenue Versus Estimates
The company’s fourth-quarter performance presented a mixed picture relative to Wall Street forecasts.
- Earnings Per Share (EPS): MarketAxess reported non-GAAP diluted EPS of $1.68 for Q4 2025. This figure slightly exceeded the consensus analyst estimate of $1.68.
- Revenue: Total revenue for the quarter was $209.4 million, representing a 3.5% year-over-year increase. However, this result missed analyst expectations, which had called for revenue of approximately $217.3 million.
For the full year 2025, the company achieved record total revenues of $846.3 million, a 4% increase over 2024. Full-year non-GAAP diluted EPS was $7.39, compared to $7.28 in the prior year.
Market Reaction and Strategic Channel Growth
In pre-market trading following the release, shares of MarketAxess were down approximately 3%. This initial negative reaction likely reflects the revenue miss coupled with the company's expense outlook for 2026. Despite the top-line shortfall, the earnings report highlighted robust growth across the company's strategic initiatives. All three of its key trading channels—Client-Initiated, Portfolio Trading, and Dealer-Initiated—posted record or near-record volumes.
- Portfolio Trading Channel: Total portfolio trading average daily volume (ADV) surged 48% for the full year to a record $1.4 billion.
- Client-Initiated Channel: Block trading ADV increased 24% for the full year.
- Dealer-Initiated Channel: ADV grew 33% for the full year, with the Mid-X protocol surpassing $3.0 billion in trading volume in December alone.
CEO Chris Concannon attributed the year's progress to an expanded global network, deeper liquidity, and accelerated use of AI in data and analytics. "We delivered record volumes in U.S. credit and record revenue outside of U.S. credit," Concannon stated.
2026 Guidance and Capital Allocation
A focal point for investors was the company's outlook for the full year 2026. MarketAxess provided specific guidance that calls for higher operating costs.
- Expenses: The company expects expenses, excluding notable items, to be in the range of $530 million to $545 million. Based on the midpoint, this represents an approximate 8% increase from 2025 levels. This guidance is a key metric for investors monitoring profit margins.
- Services Revenue: Growth in services revenue is projected to be in the "mid-single digits."
- Capital Expenditures: The company plans to invest between $65 million and $75 million in capital expenditures to support new protocols, products, and platform enhancements.
Alongside its results, MarketAxess announced an increased stock repurchase authorization, bringing the total available to $505 million. The company also entered into a $300 million accelerated share repurchase (ASR) agreement in December 2025. A quarterly cash dividend of $0.78 per share was declared.
Conclusion
MarketAxess concluded 2025 with solid operational momentum in its core trading channels, driving record volumes in several key product areas. While the company managed to slightly exceed bottom-line expectations for the quarter, its revenue fell short of forecasts. The market's initial negative reaction appears to balance the earnings beat against the revenue miss and, more significantly, the company's projection for materially higher operating expenses in the year ahead. This guidance suggests continued heavy investment in growth initiatives, which may pressure near-term profitability even as the company aims to solidify its long-term competitive position in electronic fixed-income trading.
For a detailed look at historical earnings, future estimates, and analyst projections for MarketAxess, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
