11% Increase in Revenue to Record $219.5 Million; Strong Progress with New Initiatives to Drive Growth

Record Block Trading ADV, Record Total Portfolio Trading ADV and Strong Growth in Dealer-Initiated ADV

EPS of $1.91; $2.00 Excluding Notable Items¹

MarketAxess Holdings Inc. (NASDAQ:MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the second quarter ended June 30, 2025.

2Q25 select financial and operational highlights*

11% increase in total revenues to a record $219.5 million, including an approximately $2.1 million increase from the impact of foreign currency fluctuations.
- Record total commission revenue of $191.8 million increased 12%, driven by record total credit commission revenue, up 10%, and record total rates commission revenue, up 40%.
  - Record emerging markets (+16%), record eurobonds (+22%) and record U.S. government bond (+49%) commission revenue.
- Record services revenue (combined information, post-trade and technology services revenue) of $27.7 million, up 7%.
Strong progress with our new initiatives across our three strategic channels:
- Client-Initiated Channel - strong growth in block trading average daily volume ("ADV") with record ADV across U.S. credit block trading (+37%), emerging markets (+27%), and eurobonds (+100%).
- Portfolio Trading Channel - 69% increase in total portfolio trading ADV to record $1.5 billion.
- Dealer-Initiated Channel - dealer-initiated ADV increased 40% to $1.8 billion, including record levels of eurobonds activity.
Total expenses of $127.6 million increased 10%, including an approximately $1.7 million increase from the impact of foreign currency fluctuations. Total expenses excluding notable items¹of $123.6 million increased 6%.
Diluted earnings-per-share ("EPS") of $1.91 increased 11%; EPS excluding notable items¹ of $2.00 increased 16%.

*All comparisons versus 2Q24

Chris Concannon, CEO of MarketAxess, commented:

"In the second quarter, we made significant strides in enhancing our client franchise, increasing client engagement with X-Pro, and delivering on our new initiatives across our client-initiated, portfolio trading and dealer-initiated channels. Strong progress with our new initiatives, combined with a favorable market backdrop, helped drive record levels of revenue and ADV across most product areas and regions in the quarter.

As we move through the back-half of 2025, we are focused on growing our targeted block trading solution in the client-initiated channel, continuing to enhance our portfolio trading solution for clients, and launching our new Mid-X solution in the dealer-initiated channel. Additionally, over the last several months, we have made several strategic hires in key roles that we believe will enhance our ability to drive growth.

We are executing our long-term strategy to drive growth, we are showing strong progress with our new initiatives, and we now have key leaders in place to help drive growth in 2025 and beyond."

Table 1: 2Q25 select financial results

	Quarter									% Change						YTD						% Change
$ in millions, except per share data (unaudited)	2Q 2025			1Q 2025			2Q 2024			QoQ			YoY			YTD 2025			YTD 2024			YoY
Selected GAAP-basis financial results
Revenues	$	219		$	209		$	198		5		%	11		%	$	428		$	408		5		%
Expenses		128			120			116		6			10				248			234		6
Net Income		71			15			65		NM			10				86			138		(37	)
Diluted EPS		1.91			0.40			1.72		NM			11				2.31			3.64		(37	)
Net Income Margin		32.4	%		7.2	%		32.9	%	NM			(50	)	bps		20.1	%		33.7	%	NM
Selected GAAP-basis financial results ex-notable items (non-GAAP)¹
Revenues		219			209			198		5			11				428			408		5
Expenses		124			120			116		3			6				244			234		4
Net Income		74			70			65		6			15				144			138		5
Diluted EPS		2.00			1.87			1.72		7			16				3.87			3.64		6
Other Non-GAAP financial measures
EBITDA²		111			107			99		3			12				218			208		5
EBITDA Margin²		50.5	%		51.5	%		50.0	%	(100	)	bps	+50		bps		51.0	%		51.0	%	–		bps

2Q25 overview of results

Table 1A: Notable items¹

	Quarter							YTD
	2Q 2025			1Q 2025		2Q 2024		YTD 2025				YTD 2024
$ in millions, except per share data (unaudited)
Repositioning charges	$	4.0		$	—	$	—		$	4.0		$	—
Acquisition-related charge/(credit)		0.6			—		—			0.6			—
Notable items (pre-tax)		4.6			—		—			4.6			—
Income tax impact from notable items		(1.2	)		—		—			(1.2	)		—
Reserve for uncertain tax positions related to prior periods		—			54.9		—			54.9			—
Total notable items	$	3.4		$	54.9	$	—		$	58.3		$	—
EPS impact	$	0.09		$	1.47	$	—		$	1.56		$	—

Notable items¹

Notable items in 2Q25 include repositioning charges of $4.0 million, which were principally severance costs related to changes in management structure, and an acquisition-related charge of $0.6 million.

Commission revenue

Table 1B: 2Q25 variable transaction fees per million (FPM)

	Quarter						% Change						YTD				% Change
	2Q25		1Q25		2Q24		QoQ			YoY			YTD 2025		YTD 2024		YoY
AVG. VARIABLE TRANS. FEE PER MILLION (FPM)
Total Credit	$	138	$	139	$	148	(1	)	%	(7	)	%	$	139	$	151	(8	)	%
Total Rates		4.03		4.20		4.45	(4	)		(9	)			4.11		4.61	(11	)

Credit

Record total credit commission revenue of $176.6 million (including $33.6 million in fixed-distribution fees) increased $15.8 million, or 10%, compared to $160.8 million (including $33.2 million in fixed-distribution fees) in the prior year, and increased 4% from 1Q25 levels. A 22% increase in total credit ADV compared to the prior year, driven in part by strong growth in market volumes, was partially offset by a 7% decrease in total credit variable transaction fee per million ("FPM"). The 10% increase in total credit commission revenue was driven by strong growth in U.S. credit commission revenue, up 7%, record emerging markets commission revenue, up 16%, and record eurobonds commission revenue, up 22%, reflecting continued product and geographic diversification. The decline in 2Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to protocol mix.

Rates

Record total rates commission revenue of $8.1 million increased $2.3 million, or 40%, compared to the prior year, and increased 16% from 1Q25 levels. A 58% increase in total rates ADV compared to the prior year, driven in part by strong growth in market volumes, was partially offset by a 9% decrease in FPM. The decrease in 2Q25 total rates FPM both year-over-year and quarter-over-quarter was driven by the impact of product mix.

Other

Record total other commission revenue of $7.1 million increased $2.0 million, or 39%, compared to the prior year driven by the inclusion of approximately $1.8 million from RFQ-Hub, which was acquired in mid-May 2025.

Services revenue

Record services revenue of $27.7 million increased $1.7 million, or 7%, compared to the prior year, driven by growth across information, post-trade and technology services.

Information services

Information services revenue of $13.1 million increased $0.5 million, or 4%, compared to the prior year. The increase was principally driven by an increase of $0.4 million from the impact of foreign currency fluctuations and net new data contract revenue.

Post-trade services

Post-trade services revenue of $11.1 million increased $0.7 million, or 7%, compared to the prior year mainly due to an increase of $0.6 million from the impact of foreign currency fluctuations and net new contract revenue.

Technology services

Total technology services revenue of $3.5 million increased $0.5 million, or 16%, compared to the prior year. The increase was driven by higher license fees of $0.3 million and connectivity fees of $0.2 million from RFQ-hub, which was acquired in mid-May 2025.

Expenses

Total expenses of $127.6 million increased 10% from the prior year, including an increase of $1.7 million from the impact of foreign currency fluctuations. Total expenses excluding notable items¹were $123.6 million, an increase of 6%.

Non-operating

Other income (expense): Other income was $5.6 million, up from $5.0 million in the prior year. The increase was driven by foreign exchange gains in the current quarter compared to foreign exchange losses in the prior quarter, offset by acquisition-related charges.
Tax rate: The effective tax rate was 26.9%, up from 24.8% in the prior year. The higher effective tax rate is due to an increase in current period accruals for the uncertain tax position reserve established in 1Q25.

Capital

The Company had $620.9 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of June 30, 2025, down from $698.6 million as of December 31, 2024. There were no outstanding borrowings under the Company's credit facility.
A total of 379,667 shares were repurchased year-to-date through July 2025 at a cost of $80.0 million, including 167,783 shares repurchased during the second quarter at a cost of $36.7 million. As of July 31, 2025, a total of $145.0 million remained under the Board of Directors' share repurchase authorization.
The Board declared a quarterly cash dividend of $0.76 per share, payable on September 3, 2025 to stockholders of record as of the close of business on August 20, 2025.

Other

Employee headcount was 881 as of June 30, 2025, up from 864 as of June 30, 2024, and up from 870 as of March 31, 2025.

¹	See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to "Non-GAAP financial measures and other items" for a discussion of these non-GAAP financial measures and Table 6 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.
²	EBITDA and EBITDA margin are non-GAAP financial measures. Refer to "Non-GAAP financial measures and other items" for a discussion of these non-GAAP financial measures and Table 7 for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

Non-GAAP financial measures and other items

To supplement the Company's unaudited financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization ("EBITDA"), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company's normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, "notable items"). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company's operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) selected GAAP-basis financial results, each excluding notable items, to their most directly comparable GAAP measure; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure.

Webcast and conference call information

Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer will host a conference call to discuss the Company's financial results and outlook on Wednesday, August 6, 2025 at 10:00 a.m. ET. To access the conference call, please dial 646-307-1963 (U.S./International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement.

General Notes Regarding the Data Presented

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority ("FINRA") Trade Reporting and Compliance Engine ("TRACE") reported volumes are available on the Company's website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company's future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess' current expectations. The Company's actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients' response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the divergence of U.K. and European Union legal and regulatory requirements following the U.K.'s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess' business and prospects is contained in MarketAxess' periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (NASDAQ:MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess' patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess' award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess.

Table 2: Consolidated Statements of Operations
	Three Months Ended										Six Months Ended
	June 30,										June 30,
In thousands, except per share data (unaudited)	2025			2024			% Change				2025			2024			% Change
Revenues
Commissions	$	191,770		$	171,679			12		%	$	373,113		$	356,552			5		%
Information services		13,087			12,544			4				25,991			24,425			6
Post-trade services		11,076			10,400			7				22,164			21,130			5
Technology services		3,529			3,037			16				6,770			5,871			15
Total revenues		219,462			197,660			11				428,038			407,978			5

Expenses
Employee compensation and benefits		65,237			56,790			15				127,153			118,054			8
Depreciation and amortization		19,195			18,356			5				37,431			36,556			2
Technology and communications		19,421			17,771			9				37,469			34,822			8
Professional and consulting fees		7,190			7,669			(6	)			13,600			14,064			(3	)
Occupancy		3,753			3,714			1				7,375			7,139			3
Marketing and advertising		2,952			3,010			(2	)			5,013			4,843			4
Clearing costs		4,447			4,122			8				8,632			9,033			(4	)
General and administrative		5,403			4,889			11				11,119			9,628			15
Total expenses		127,598			116,321			10				247,792			234,139			6
Operating income		91,864			81,339			13				180,246			173,839			4
Other income (expense)
Interest income		5,930			6,401			(7	)			13,099			12,374			6
Interest expense		(139	)		(621	)		(78	)			(352	)		(937	)		(62	)
Equity in earnings of unconsolidated affiliate		168			354			(53	)			457			724			(37	)
Other, net		(407	)		(1,136	)		(64	)			120			(2,946	)	NM
Total other income (expense)		5,552			4,998			11				13,324			9,215			45
Income before income taxes		97,416			86,337			13				193,570			183,054			6
Provision for income taxes		26,236			21,399			23				107,325			45,501			136
Net income	$	71,180		$	64,938			10			$	86,245		$	137,553			(37	)
Less: income attributable to noncontrolling interest		(31	)		—		NM					(31	)		—		NM
Net income available for common stockholders	$	71,149		$	64,938			10			$	86,214		$	137,553			(37	)
Per Share Data:
Net income per common share
Basic	$	1.91		$	1.72						$	2.31		$	3.65
Diluted	$	1.91		$	1.72						$	2.31		$	3.64
Cash dividends declared per common share	$	0.76		$	0.74						$	1.52		$	1.48
Weighted-average common shares:
Basic		37,210			37,655							37,299			37,698
Diluted		37,298			37,689							37,377			37,740
NM - not meaningful

Table 3: Commission Revenue Detail
In thousands, except fee per million data	Three Months Ended June 30,								Six Months Ended June 30,
(unaudited)	2025		2024		% Change				2025		2024			% Change
Variable transaction fees
Credit	$	142,977	$	127,645		12		%	$	278,817	$	269,149			4		%
Rates		8,035		5,719		40				14,954		10,885			37
Other		7,061		5,076		39				12,293		9,925			24
Total variable transaction fees		158,073		138,440		14				306,064		289,959			6
Fixed distribution fees
Credit		33,616		33,177		1				66,881		66,465			1
Rates		81		62		31				168		128			31
Total fixed distribution fees		33,697		33,239		1				67,049		66,593			1
Total commission revenue	$	191,770	$	171,679		12			$	373,113	$	356,552			5
Average variable transaction fee per million
Credit	$	138	$	148		(7	)	%	$	139	$	151			(8	)	%
Rates		4.03		4.45		(9	)			4.11		4.61			(11	)

Table 4: Trading Volume Detail*
	Three Months Ended June 30,
In millions (unaudited)	2025				2024						% Change
	Volume		ADV		Volume				ADV		Volume			ADV
Credit
High-grade	$	481,090	$	7,760	$	405,440			$	6,436		19	%		21		%
High-yield		104,897		1,692		84,248				1,337		25			27
Emerging markets		249,091		4,018		210,205				3,337		18			20
Eurobonds		160,873		2,681		128,266				2,103		25			27
Other credit		39,965		644		33,376				530		20			22
Total credit trading		1,035,916		16,795		861,535				13,743		20			22
Rates
U.S. government bonds		1,906,892		30,756		1,236,917				19,634		54			57
Agency and other government bonds		87,625		1,458		48,506				792		81			84
Total rates trading		1,994,517		32,214		1,285,423				20,426		55			58
Total trading	$	3,030,433	$	49,009	$	2,146,958			$	34,169		41			43
Number of U.S. Trading Days¹			62						63
Number of U.K. Trading Days²			60						61

	Six Months Ended June 30,
In millions (unaudited)	2025				2024						% Change
	Volume		ADV		Volume				ADV		Volume			ADV
Credit
High-grade	$	942,398	$	7,662	$	861,438			$	6,947		9	%		10		%
High-yield		194,894		1,585		169,627				1,368		15			16
Emerging markets		489,376		3,979		431,632				3,481		13			14
Eurobonds		308,790		2,510		257,115				2,074		20			21
Other credit		76,447		621		59,705				481		28			29
Total credit trading		2,011,905		16,357		1,779,517				14,351		13			14
Rates
U.S. government bonds		3,488,973		28,366		2,282,713				18,409		53			54
Agency and other government bonds		153,450		1,248		80,132				646		91			93
Total rates trading		3,642,423		29,614		2,362,845				19,055		54			55
Total trading	$	5,654,328	$	45,971	$	4,142,362			$	33,406		37			38
Number of U.S. Trading Days¹			123						124
Number of U.K. Trading Days²			123						124
¹ The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.
²The number of U.K. trading days is based on the U.K. Bank holiday schedule.
*Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company's reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted.

Table 5: Consolidated Condensed Balance Sheet Data
	As of
In thousands (unaudited)	June 30, 2025			December 31, 2024

Assets
Cash and cash equivalents	$	462,837		$	544,478
Cash segregated under federal regulations		47,930			47,107
Investments, at fair value		169,349			165,260
Accounts receivable, net		113,242			91,845
Receivables from broker-dealers, clearing organizations and customers		559,120			357,728
Goodwill		286,020			236,706
Intangible assets, net of accumulated amortization		121,397			98,078
Furniture, equipment, leasehold improvements and capitalized software, net		109,206			107,298
Operating lease right-of-use assets		55,382			58,132
Prepaid expenses and other assets		50,455			82,584
Total assets	$	1,974,938		$	1,789,216

Liabilities and stockholders' equity
Liabilities
Accrued employee compensation	$	48,198		$	68,054
Payables to broker-dealers, clearing organizations and customers		329,785			218,845
Income and other tax liabilities		95,197			3,683
Accounts payable, accrued expenses and other liabilities		31,628			37,320
Operating lease liabilities		69,230			72,654
Total liabilities		574,038			400,556

Redeemable noncontrolling interest		14,715			—

Stockholders' equity
Common stock		123			123
Additional paid-in capital		356,817			350,701
Treasury stock		(407,029	)		(333,369	)
Retained earnings		1,434,953			1,405,904
Accumulated other comprehensive income/(loss)		1,321			(34,699	)
Total stockholders' equity		1,386,185			1,388,660
Total liabilities, redeemable noncontrolling interest and stockholders' equity	$	1,974,938		$	1,789,216

Table 6: Reconciliation of Notable Items

$ in thousands, except per share data (unaudited)	2Q 2025			1Q 2025			2Q 2024			YTD 2025			YTD 2024

Total Expenses, GAAP-basis	$	127,598		$	120,194		$	116,321		$	247,792		$	234,139
Exclude: Notable items
Repositioning charges¹		(3,970	)		—			—			(3,970	)		—
Total Expenses, excluding notable items	$	123,628		$	120,194		$	116,321		$	243,822		$	234,139


Other income (expense), GAAP-basis	$	5,552		$	7,772		$	4,998		$	13,324		$	9,215
Exclude: Notable items
Acquisition-related charge/(credit)²		557			—			—			557			—
Other income (expense), excluding notable items	$	6,109		$	7,772		$	4,998		$	13,881		$	9,215


Net income, GAAP-basis	$	71,180		$	15,065		$	64,938		$	86,245		$	137,553
Exclude: Notable items
Repositioning charges¹		3,970			—			—			3,970			—
Acquisition-related charge/(credit)²		557			—			—			557			—
Income tax impact from notable items		(1,218	)		—			—			(1,218	)		—
Reserve for uncertain tax positions related to prior periods		—			54,939			—			54,939			—
Net income, excluding notable items	$	74,489		$	70,004		$	64,938		$	144,493		$	137,553


Diluted EPS, GAAP-basis	$	1.91		$	0.40		$	1.72		$	2.31		$	3.64
Notable items as reconciled above		0.09			1.47			—			1.56			—
Diluted EPS, excluding notable items	$	2.00		$	1.87		$	1.72		$	3.87		$	3.64


Effective tax rate, GAAP-basis		26.9	%		84.3	%		24.8	%		55.4	%		24.9	%
Notable items as reconciled above		—			(57.1	)		—			(28.3	)		—
Effective tax rate, excluding notable items		26.9	%		27.2	%		24.8	%		27.1	%		24.9	%

¹ Repositioning charges consist of severance included in employee compensation and benefits
² Consists of loss on remeasurement of previous equity interest in RFQ-hub to fair value

Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin

In thousands (unaudited)	2Q 2025			1Q 2025			2Q 2024			YTD 2025			YTD 2024

Net income	$	71,180		$	15,065		$	64,938		$	86,245		$	137,553
Add back:
Interest income		(5,930	)		(7,169	)		(6,401	)		(13,099	)		(12,374	)
Interest expense		139			213			621			352			937
Provision for income taxes		26,236			81,089			21,399			107,325			45,501
Depreciation and amortization		19,195			18,236			18,356			37,431			36,556
EBITDA	$	110,820		$	107,434		$	98,913		$	218,254		$	208,173

Net income margin¹		32.4	%		7.2	%		32.9	%		20.1	%		33.7	%
Add back:
Interest income		(2.7	)		(3.4	)		(3.2	)		(3.1	)		(3.0	)
Interest expense		0.1			0.1			0.3			0.1			0.2
Provision for income taxes		12.0			38.9			10.7			25.1			11.1
Depreciation and amortization		8.7			8.7			9.3			8.8			9.0
EBITDA margin²		50.5	%		51.5	%		50.0	%		51.0	%		51.0	%


Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

In thousands (unaudited)	2Q 2025			1Q 2025			2Q 2024			YTD 2025			YTD 2024


Net cash (used in)/provided by operating activities	$	103,714		$	29,629		$	118,849		$	133,343		$	113,900
Exclude: Net change in trading investments		(66	)		—			100			(66	)		(155	)
Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers		22,053			34,399			(3,151	)		56,452			48,137
Less: Purchases of furniture, equipment and leasehold improvements		(1,206	)		(1,930	)		(7,695	)		(3,136	)		(8,892	)
Less: Capitalization of software development costs		(11,510	)		(15,031	)		(10,496	)		(26,541	)		(24,459	)
Free cash flow	$	112,985		$	47,067		$	97,607		$	160,052		$	128,531

¹ Net income margin is derived by dividing net income by total revenues for the applicable period.
² EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period.

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