$MKTX

MARKETAXESS HOLDINGS INC

CIK:0001278021|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Revenues	$ 218,415	$ 219,462	$ 451,795	$ 428,038
Expenses
Employee compensation and benefits	62,182	65,237	132,377	127,153
Depreciation and amortization	19,309	19,195	38,519	37,431
Technology and communications	21,508	19,421	41,868	37,469
Professional and consulting fees	7,973	7,190	14,349	13,600
Occupancy	3,982	3,753	7,801	7,375
Marketing and advertising	3,442	2,952	5,776	5,013
Clearing costs	4,359	4,447	8,785	8,632
General and administrative	5,783	5,403	11,522	11,119
Total expenses	128,538	127,598	260,997	247,792
Operating income	89,877	91,864	190,798	180,246
Other income (expense)
Interest income	4,692	5,930	9,000	13,099
Interest expense	(1,862)	(139)	(4,750)	(352)
Equity in earnings of unconsolidated affiliate	0	168	0	457
Other, net	(2,945)	(407)	(1,401)	120
Total other income (expense)	(115)	5,552	2,849	13,324
Income before income taxes	89,762	97,416	193,647	193,570
Provision for income taxes	21,439	26,236	47,217	107,325
Net income	68,323	71,180	146,430	86,245
Less: income attributable to redeemable noncontrolling interest	(218)	(31)	(443)	(31)
Net income available for common stockholders	$ 68,105	$ 71,149	$ 145,987	$ 86,214
Net income per common share
Basic	$ 1.93	$ 1.91	$ 4.14	$ 2.31
Diluted	1.93	1.91	4.13	2.31
Cash dividends declared per common share	$ 0.78	$ 0.76	$ 1.56	$ 1.52
Weighted average shares outstanding
Basic	35,203	37,210	35,252	37,299
Diluted	35,242	37,298	35,314	37,377
Commissions [Member]
Revenues
Revenues	$ 186,895	$ 191,770	$ 390,366	$ 373,113
Information Services [Member]
Revenues
Revenues	16,094	13,087	30,539	25,991
Post-trade Services [Member]
Revenues
Revenues	11,598	11,076	23,205	22,164
Technology Services [Member]
Revenues
Revenues	$ 3,828	$ 3,529	$ 7,685	$ 6,770

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income	$ 146,430	$ 86,245
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	38,519	37,431
Amortization of operating lease right-of-use assets	3,906	3,626
Stock-based compensation expense	17,830	15,345
Deferred taxes	(638)	(706)
Foreign currency transaction losses	(634)	4,080
Other	5,278	(2,826)
Changes in operating assets and liabilities:
(Increase) in accounts receivable	(34,527)	(13,146)
(Increase) in receivables from broker-dealers, clearing organizations and customers	(728,239)	(159,675)
(Increase)/decrease in prepaid expenses and other assets	(1,821)	2,826
(Decrease) in accrued employee compensation	(24,296)	(19,696)
Increase in payables to broker-dealers, clearing organizations and customers	541,224	99,968
(Decrease)/increase in income and other tax liabilities	(7,961)	91,406
Increase/(decrease) in accounts payable, accrued expenses and other liabilities	1,600	(6,913)
(Decrease) in operating lease liabilities	(4,608)	(4,373)
Net cash (used in)/provided by operating activities	(48,517)	133,343
Cash flows from investing activities
Proceeds from maturities and sales	6,891	7,246
Purchases	(8,286)	(9,231)
Acquisition, net of cash acquired	0	(36,515)
Purchases of furniture, equipment and leasehold improvements	(908)	(3,136)
Capitalization of software development costs	(28,449)	(26,541)
Net cash (used in) investing activities	(30,752)	(68,177)
Cash flows from financing activities
Payment of the excise tax on repurchases	(3,361)	0
Cash dividends on common stock	(55,890)	(57,705)
Withholding tax payments on Full Value Awards vesting and stock option exercises	(8,935)	(9,846)
Repurchases of common stock	0	(74,764)
Proceeds from borrowings	130,164	0
Repayments of borrowings	(234,250)	0
Net cash (used in) financing activities	(172,272)	(142,315)
Effect of exchange rate changes on cash and cash equivalents	(4,589)	27,144
Net decrease for the period	(256,130)	(50,005)
Beginning of period	675,851	700,459
End of period	419,721	650,454
Supplemental cash flow information
Cash paid/(refunded) for income taxes	51,555	9,852
Cash paid for interest	4,865	342
Non-cash investing and financing activity
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	2,904	407
Fair value of assets acquired	0	86,413
Cash paid for acquisition, net of cash and cash equivalents acquired	0	(36,515)
Fair value of previously held interest on acquisition date	0	(34,321)
Fair value of remaining noncontrolling interests on acquisition date	0	(13,755)
Liabilities assumed	0	1,822
Software development costs [Member]
Non-cash investing and financing activity
Stock-based and accrued incentive compensation relating to capitalized software development costs	3,980	3,633
Furniture, equipment, software and leasehold improvement [Member]
Non-cash investing and financing activity
Furniture, equipment, software and leasehold improvement additions included in accounts payable	563	664
Trading Investments [Member]
Changes in operating assets and liabilities:
(Increase)/decrease in trading investments	0	(66)
Mutual Funds Held In Rabbi Trust [Member]
Changes in operating assets and liabilities:
(Increase)/decrease in trading investments	$ (580)	$ (183)

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and cash equivalents	$ 245,794	$ 519,734
Cash segregated under federal regulations	49,390	48,722
Investments, at fair value	171,067	170,677
Accounts receivable, net of allowance of $984 and $743 as of June 30, 2026 and December 31, 2025, respectively	133,786	100,989
Receivables from broker-dealers, clearing organizations and customers.	1,228,453	489,211
Goodwill	283,667	283,667
Intangible assets, net of accumulated amortization	100,245	110,629
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization	111,362	112,431
Operating lease right-of-use assets	50,620	51,854
Prepaid expenses and other assets	47,829	46,972
Total assets	2,422,213	1,934,886
Liabilities
Accrued employee compensation	46,747	73,879
Payables to broker-dealers, clearing organizations and customers	863,546	325,959
Borrowings	115,914	220,000
Income and other tax liabilities	37,418	49,267
Accounts payable, accrued expenses and other liabilities	42,232	42,584
Operating lease liabilities	62,999	64,938
Total liabilities	1,168,856	776,627
Commitments and Contingencies (Note 13)
Redeemable noncontrolling interest	14,441	12,592
Stockholders' equity
Preferred stock	0	0
Common stock	123	123
Additional paid-in capital	374,229	305,923
Treasury stock - Common stock voting, at cost, 5,698,972 shares and 5,344,419 shares as of June 30, 2026 and December 31, 2025, respectively	(752,333)	(694,764)
Retained earnings	1,629,214	1,538,746
Accumulated other comprehensive income/(loss)	(12,317)	(4,361)
Total stockholders' equity	1,238,916	1,145,667
Total liabilities, redeemable noncontrolling interest and stockholders' equity	2,422,213	1,934,886
Series A Preferred Stock [Member]
Stockholders' equity
Preferred stock	$ 0	$ 0