10-Q · May 7, 2026
MarketAxess reported robust Q1 2026 results with revenues of $233.4 million, surpassing estimates and reflecting an 11.9% year-over-year increase. EPS of $2.20 marked a significant rise from $0.40 in the prior year,…
Earnings analysis · 10-Q
MKTX earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
MarketAxess delivered mixed Q2 2026 results: revenue of $218.415 million declined 6.3% sequentially and 0.3% year over year, while diluted EPS of $1.95 increased 2.1% year over year but fell 11.4% from Q1. The supplied…
Read full summary
MarketAxess delivered mixed Q2 2026 results: revenue of $218.415 million declined 6.3% sequentially and 0.3% year over year, while diluted EPS of $1.95 increased 2.1% year over year but fell 11.4% from Q1. The supplied filing text does not provide current-quarter operating margin, segment revenue, operating cash flow or free cash flow, preventing a complete profitability and cash-conversion assessment. The major change versus the prior risk profile is the pending Merger, including regulatory and closing uncertainty, a $148.8 million potential termination fee and restrictions on competing proposals.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.95
What stood out
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Revenue Normalized After Q1 Peak
Q2 2026 revenue was $218.415 million, down $14.585 million, or 6.3%, from $233 million in Q1 2026 and down $0.585 million, or 0.3%, from $219 million in Q2 2025.
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EPS Up Year Over Year
Diluted EPS was $1.95, down from $2.20 in Q1 2026 by $0.25, or 11.4%, but up from $1.91 in Q2 2025 by $0.04, or 2.1%.
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Meaningful Buyback Capacity Remains
The company had $205.0 million of remaining capacity under its 2025 Repurchase Program as of June 30, 2026.
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Liquidity Base Remains Solid
As of June 30, 2026, cash, cash equivalents, restricted cash and cash deposits totaled $419.7 million, providing a substantial liquidity base.
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Controls Remained Effective
Management reported that disclosure controls were effective as of June 30, 2026, and identified no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
What to watch
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Merger Completion Risk
The proposed Merger, governed by the agreement dated July 29, 2026, may not close on the anticipated terms or timeline, or at all, because it requires regulatory approvals, Company Stockholder Approval and the absence of a prohibiting law or order. Failure to close could cause management distraction, employee attrition, transaction costs and reputational harm.
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$148.8M Termination Fee
Under specified termination scenarios, MarketAxess may have to pay Parent a $148.8 million termination fee, including if it terminates the agreement to enter into an alternative agreement involving a Superior Proposal.
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No-Shop Limits Alternatives
The Merger Agreement includes a no-shop provision restricting the company from soliciting, initiating or knowingly facilitating competing acquisition proposals. The restrictions could limit pursuit of more favorable alternatives and discourage competing offers during the transaction process.
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Investment Portfolio Exposure
MarketAxess held $99.6 million of U.S. Treasury trading securities and $59.5 million of corporate-bond available-for-sale investments as of June 30, 2026; a 10.0% decline in their market values would produce losses of approximately $10.0 million and $5.9 million, respectively.
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Interest-Rate Sensitivity
A hypothetical 100-basis-point rate move would change annual interest income by approximately $4.2 million, while fair values of the available-for-sale and trading-security portfolios would change by approximately $0.7 million and $1.9 million, respectively.
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Foreign-Exchange Exposure
During the twelve months ended June 30, 2026, 18.5% of revenue and 30.9% of expenses were denominated in non-U.S. dollar currencies; a hypothetical 10.0% dollar movement would change revenue by approximately $16.1 million and operating expenses by approximately $16.0 million.
Management's outlook
No quantitative forward guidance is included in the supplied 10-Q text; the provided excerpt does not contain an outlook or liquidity outlook.
Earlier filings 4
10-K · February 24, 2026
MarketAxess Holdings Inc. reported revenues of $846.3 million in 2025, a 3.6% increase from 2024. The company faced rising expenses primarily due to increased employee compensation, leading to a decrease in net income…
10-Q · November 7, 2025
MarketAxess Holdings (MKTX) reported Q3 2025 results with total revenue of $208.82 million, reflecting a modest 1.0% increase year-over-year, but a decline from the previous quarter. EPS came in at $1.84, surpassing…
10-Q · August 6, 2025
MarketAxess reported solid Q2 2025 results, with revenues of $219.5 million, representing an 11% increase year-over-year, and earnings per share (EPS) of $1.91, up 11% from the prior year. The robust performance was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.