Tradeweb Markets (NASDAQ:TW) Q3 2025 Earnings: EPS Beats, Revenue Misses Estimates

Tradeweb Markets Inc. (NASDAQ:TW) reported financial results for the third quarter of 2025, delivering a performance that notably surpassed analyst expectations on profitability, though it fell slightly short on the top line. The company’s results, coupled with a robust operational update, have elicited a measured yet positive response in pre-market trading.

Earnings and Revenue Versus Estimates

The electronic marketplace operator reported adjusted earnings per share (EPS) of $0.87 for the quarter, comfortably exceeding the analyst consensus estimate of $0.8538. This represents a 16% increase compared to the adjusted diluted EPS from the same period last year.

However, the company’s revenue for the quarter was $508.6 million, which came in below the estimated $526.2 million. Despite this miss against expectations, the reported figure still signifies a solid 13.3% year-over-year increase.

• Reported Adjusted EPS: $0.87
• Estimated Adjusted EPS: $0.8538
• Reported Revenue: $508.6 million
• Estimated Revenue: $526.2 million

Market Reaction

In pre-market trading, shares of Tradeweb are up approximately 0.53%, indicating a positive investor reception to the earnings beat on the bottom line. This initial uptick suggests the market is focusing on the company’s strong profitability and operational momentum, viewing them as more significant than the revenue miss. This positive movement contrasts with the stock's slight decline over the past month.

Operational and Financial Highlights

The quarter was characterized by strong growth across several key financial and operational metrics, underscoring the company's broad-based strength.

• Record Trading Volumes: Average daily volume (ADV) reached a record $2.58 trillion, an 11.8% increase year-over-year. This was driven by record ADV in several product areas, including mortgages, U.S. short-dated swaps, and global repurchase agreements.
• Profitability Expansion: Net income saw a substantial jump of 61.7% to $210.5 million. The adjusted EBITDA margin expanded to 54.0%, up from 53.4% in the prior year period.
• Dividend Increase: The Board declared a quarterly cash dividend of $0.12 per share, a 20% increase from the dividend paid a year ago.
• Segment Performance: The Rates division led revenue growth with a 17.7% increase, while Equities and Money Markets also posted strong double-digit growth of 16.9% and 18.7%, respectively.

Updated Guidance and Analyst Estimates

Looking ahead, Tradeweb provided updated full-year 2025 guidance, tightening its adjusted expense range to $1,000 - $1,025 million and increasing its expectation for LSEG Market Data Contract Revenue to approximately $92 million for the year.

When comparing the company's implied trajectory to Wall Street's expectations, analysts have estimated revenue of $2.122 billion for the full year 2025. For the upcoming fourth quarter, the analyst consensus is for revenue of approximately $534.94 million.

Strategic Initiatives and Innovation

CEO Billy Hult highlighted the quarter's strong execution and several market milestones. The company advanced its position in electronic trading with initiatives such as the first fully electronic bilateral multi-asset package list trade and participation in the Canton Network to facilitate the first real-time, fully on-chain financing of U.S. Treasuries. These efforts underscore Tradeweb's ongoing commitment to innovation and building more interconnected global markets.

For a detailed look at historical earnings and future analyst estimates for Tradeweb Markets, visit the earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making an investment decision.