MarketAxess profit falls on ICE merger costs as block and portfolio trading surge

MarketAxess posted lower third-quarter earnings as costs tied to its pending merger with Intercontinental Exchange weighed on results, though trading volume grew across most of its platform, according to its 8-K earnings release.

Revenue rose 1% to $210.4 million. Net income fell to $54.0 million, or $1.53 a share, from $68.3 million, or $1.84, a year earlier. Excluding notable items, mainly $13.1 million of merger-related expenses, EPS was $1.86 on net income of $65.7 million.

Volume up, commissions flat

Total trading average daily volume rose 13%, with market share gains in high-yield and municipal bonds. Commission revenue was flat at $179.9 million, while services revenue grew 6% to $30.5 million and information services revenue grew 10%.

Block trading volume rose 21% to $5.4 billion a day, led by a 24% gain in U.S. credit. Portfolio trading volume jumped 37% to $1.9 billion a day, and dealer-initiated volume rose 2% to $1.5 billion.

"We continued to execute on our product roadmap across major trading protocols," CEO Chris Concannon said in the release, pointing to an upgraded request-for-quote experience for U.S. credit clients.

Costs and capital

Total expenses rose 10% to $136.0 million, but were flat at $122.9 million excluding notable items. The GAAP operating margin fell to 35.4% from 41.0%, while the adjusted margin rose to 41.6%.

The company ended the quarter with $539.6 million in cash and investments and $92.0 million borrowed under its credit facility, down from $220.0 million at the end of 2025. The board declared a quarterly dividend of $0.78 a share.

Earlier this week, MarketAxess disclosed that U.S. antitrust regulators granted early termination of the waiting period for the ICE deal.

By the numbers

• Revenue: $210.4 million, up 1%
• EPS: $1.53 GAAP; $1.86 excluding notable items
• Merger-related costs: $13.1 million
• Total trading ADV: up 13%
• Portfolio trading ADV: $1.9 billion, up 37%
• Dividend: $0.78 a share

Sources

1. MarketAxess Holdings Inc., Form 8-K with Exhibit 99.1 filed Oct. 23, 2026, accession 0001193125-26-429420

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