Tradeweb Markets Reports Robust Growth In First Quarter Amid Rising Market Activity

Tradeweb Markets Inc. reported strong growth in the first quarter, supported by higher market activity and increased adoption of electronic trading platforms. The company shared updates on trading volume, revenue, and business expansion.

Tradeweb said its average daily volume rose by 33% to $2.5 trillion, which helped lift revenue by nearly 25%. Management explained that market volatility and stronger interest in electronic tools played a key role.

Tradeweb Aims To Strengthen Market Leadership Through Record Volumes

The company reported revenue of $509.7 million, up 24.7% from the previous period. On a constant currency basis, the increase reached 25.8%. It noted record-high trading volumes in areas like U.S. and European government bonds, mortgages, and long-term swaps.

Chief Executive Officer Billy Hult said market swings contributed to the strong volume, but also pointed to higher market share and growing use of electronic protocols.

Net income increased by 17.4% to $168.3 million, while adjusted net income rose 22.5% to $205.7 million. Adjusted EBITDA climbed to $278.2 million, up from $219.5 million a year earlier, giving the company an adjusted margin of 54.6%.

Tradeweb stated that its Rates segment generated $265.4 million in revenue, a 24% increase. U.S. government bond trading reached a new high, driven by institutional and wholesale activity. Mortgage volumes increased by 19.2%, and European government bond volumes rose by 18.9%.

In Credit markets, the firm saw a 7% rise in revenue to $124 million and a 39.4% jump in average daily volume. It reported record electronic trading in U.S. high-grade and high-yield credit and in credit default swaps. U.S. credit volume rose by 10.4%, while European credit grew by 11.1%—helped by wider use of request-for-quote and Portfolio Trading protocols.

Tradeweb Wants To Drive Growth Through Strategic Partnerships

Equities revenue climbed 16.1% to $31.4 million, despite a 3.3% drop in trading volume. The company said institutional activity in the U.S. and Europe helped offset weaker wholesale ETF trading.

In Money Markets, revenue surged 160.3% to $43.7 million, due to the ICD integration and stronger repo trading linked to Fed balance sheet actions.

Tradeweb also reported a 33.4% increase in market data revenue to $38.7 million, benefiting from demand for historical datasets and higher fees from LSEG. Operating expenses grew 26.8% to $305.6 million, which the firm attributed to higher headcount, incentive compensation, and foreign exchange losses. Adjusted expenses rose by 21.8%.

The company said it ended the quarter with $1.3 billion in cash and no borrowings from its $500 million credit facility. It announced a dividend of $0.12 per share, 20% higher than the prior level, payable in June.

Tradeweb said it continued expanding its leadership team and partnerships. It formed a new partnership with Coremont and appointed new co-heads of global markets. Rich Repetto joined the board in March.