Tradeweb (TW) Q2 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 11:38 AM CDT 52 min read

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Wednesday, July 30, 2025 astatine 9:30 a.m. ET

• Chief Executive Officer — William E. Hult

• Chief Financial Officer — Sara Hassan Furber

• Head of Investor Relations and Corporate Development — Ashley Neil Serrao

William E. Hult: Thanks, Ashley. Good morning, everyone, and convey you for joining our 2nd 4th net call. We acceptable a caller precocious watermark for quarterly revenues erstwhile again surpassing the grounds we acceptable successful the archetypal 4th 2025. This beardown momentum propelled revenues to transcend $1 cardinal successful the archetypal fractional of the twelvemonth and we expect 2025 to signifier up to nutrient different twelvemonth of double-digit gross growth. From tariff wars to détentes, a rapidly evolving rates successful equity marketplace backdrop, a slowing lodging marketplace and stubbornly precocious inflation, planetary statement and beardown lawsuit engagement was connected show crossed our platform. We judge the question from the telephone to the keyboard arsenic a one-way train.

As we person seen successful the past, utmost volatility creates impermanent moments arsenic we saw successful April wherever our clients inactive tin spell backmost to the phone. Despite these moments, our physics travel continued, and we achieved grounds volumes successful galore of our plus classes this quarter, which bodes good for aboriginal marketplace stock growth. Our clients are becoming progressively blase astir the hunt for liquidity, and our trader and nonbank liquidity providers proceed to put to supply 2-way markets adjacent successful the astir volatile conditions. While bid-ask spreads widened, the liquidity crunch we experienced this 4th was lone a fraction of what we witnessed successful March 2020.

Encouragingly, Unlike erstwhile volatility periods, our clients leaned into newer innovations similar AiEX and Portfolio Trading. Momentum builds momentum, and we proceed to beryllium laser focused connected the areas we tin control. Putting our clients first, investing successful caller solutions for insubstantial and dependable markets and strategically planting much flags crossed early-stage ventures. Diving into the 2nd quarter, beardown lawsuit enactment and hazard connected situation drove 26.7% year-over-year gross maturation connected a reported basis. Our planetary concern continues to acceptable caller records with 41% gross maturation arsenic our strategical initiatives successful EM and APAC continued to wage off.

We proceed to equilibrium investing for maturation and profitability arsenic adjusted EBITDA margins expanded by 70 ground points comparative to the 2nd 4th of 2024. Turning to Slide 5. Our rates concern produced a grounds gross quarter, driven by continued integrated maturation crossed swaps, planetary authorities bonds and mortgages. Record recognition revenues were led by the spot crossed planetary firm bonds, munis and recognition derivatives. Money markets gross maturation was led by the summation of ICD and aided by grounds quarterly revenues crossed planetary repos.