TLDR
- Cboe posts strong Q2 earnings, raises full-year growth outlook
- Cboe Q2 profit surges 67%, driven by trading and fee-based growth
- Strong options volume boosts Cboe’s revenue and stock price
- Cboe ups 2025 outlook, trims expenses, exits Japan equities
- Cboe beats EPS estimates, signals continued global momentum
Cboe Global Markets, Inc. reported a sharp rise in quarterly profit and revenue, boosting its full-year growth outlook.
Cboe Global Markets, Inc. (CBOE)
The company’s second-quarter net income reached $233.9 million, up from $139.7 million a year earlier. Earnings growth and higher revenue drove the stock higher, with shares closing at $247.59 and edging up in after-hours trading.
Strong Quarterly Earnings Performance
Earnings per share climbed to $2.23 from $1.33, while adjusted earnings per share rose to $2.46 from $2.15. Net revenue increased 14 percent to $587.3 million, supported by strong performances in derivatives, Data Vantage, and cash and spot markets. Operating income grew to $339.1 million from $210.1 million as operating EBITDA surged to $369 million from $241.9 million.
Adjusted EBITDA increased to $382.3 million from $340.7 million, reflecting higher trading activity and growth in fee-based services. Derivatives net revenue jumped 17% due to a 20% increase in options trading volume. Data Vantage revenue advanced 11 percent, and cash and spot markets revenue also grew 11% year over year.
North American equities net revenue reached $98.4 million, supported by higher access and market data fees despite lower transaction fees. Due to higher off-exchange volumes, market share in U.S. equities exchanges fell to 10.5% from 11.4%. Canadian equities market share also declined, while European equities market share rose to 25.1% from 22.5%.
Revised Guidance for 2025
Cboe raised its 2025 organic total net revenue growth forecast to the high single-digit range from the mid-single-digit range earlier. The company reaffirmed its Data Vantage organic revenue growth outlook at mid- to high single digits. Adjusted operating expense guidance was lowered to between $832 million and $847 million, down from the previous range of $837 million to $852 million.
Depreciation and amortization expenses are now expected at $53 million to $57 million, excluding the amortization of acquired intangible assets. The effective tax rate on adjusted earnings for the year remains projected between 28.5% and 30.5%. Capital expenditures for 2025 are expected to range from $75 million to $85 million.
Cboe announced plans to wind down its Japanese equities business by the end of August, citing limited market share. The closure is expected to save between $2 million and $4 million in 2025 and $10 million to $12 million annually thereafter. Management indicated the move will have minimal impact on overall revenue growth or expense guidance.
Market Reaction
Cboe’s stock rose 2.72% on Friday, reflecting confidence in its growth trajectory and operational efficiency. The record net revenue and improved margins supported the share price, which also saw a slight after-hours uptick. Pre-market trading showed shares at $241.04, 0.1% higher on the Chicago Board Options Exchange.
The company’s performance exceeded analyst expectations, with adjusted earnings per share beating the consensus estimate of $2.43. Higher trading volumes, robust fee generation, and disciplined expense management positioned Cboe for continued momentum. The positive financial results reinforced its standing as a leading global exchange operator.
