A volatile macroeconomic backdrop and growing interest in electronic trading boosted Tradeweb’s first-quarter results, as the firm posted double-digit growth in revenue, volume, and net income.

Tradeweb generated $509.7 million in revenue in the first quarter of 2025, marking a 24.7% increase year-over-year. Revenue rose 25.8% on a constant currency basis. The company’s performance was boosted by $2.5 trillion in average daily volume (ADV), up 33.7% from the prior year period.

Revenue Soars on Rising Institutional Demand

This included new quarterly ADV records across major categories such as U.S. government bonds, European government bonds, mortgages, and swaps/swaptions longer than one year.

Net income rose 17.4% to $168.3 million, while adjusted net income climbed 22.5% to $205.7 million. The company reported a 54.6% adjusted EBITDA margin, translating into $278.2 million in adjusted EBITDA, up from $219.5 million a year ago.

The Rates segment contributed $265.4 million in revenue, a 24% increase year-over-year. U.S. government bond ADV hit a record high, supported by strong institutional and wholesale trading.

Mortgage ADV also set a new high, rising 19.2%, with hedge fund activity and robust TBA trading driving volumes. Meanwhile, European government bond ADV jumped 18.9%, reflecting broad institutional participation.

In Credit markets, revenue rose 7% to $124 million as ADV expanded 39.4%. Tradeweb reported record trading in fully electronic U.S. high-grade and high-yield credit and credit default swaps. U.S. credit ADV increased 10.4%, and European credit ADV rose 11.1%, aided by rising adoption of protocols like request-for-quote and Portfolio Trading.

Tradeweb’s market share in fully electronic U.S. high-grade TRACE rose 42 basis points to 18%, while high-yield TRACE share increased 86 basis points to 7.5%.

Other Segments and Capital Moves

Equities revenue grew 16.1% to $31.4 million despite a 3.3% drop in ADV, with institutional platforms in the U.S. and Europe offsetting weakness in wholesale ETF trading. In Money Markets, revenue surged 160.3% to $43.7 million, driven by the integration of ICD and strong repo activity tied to the Fed’s balance sheet reductions.

Market data revenue climbed 33.4% to $38.7 million, benefiting from historical dataset sales and higher LSEG data fees. Operating expenses increased 26.8% to $305.6 million, reflecting higher incentive compensation, headcount growth, and foreign exchange losses. Adjusted expenses rose 21.8%.

The company ended the quarter with $1.3 billion in cash and no draw on its $500 million credit facility. It declared a $0.12 per share dividend, up 20% year-over-year, payable June 16 to shareholders of record as of June 2.

The company continued expanding its leadership team and partnerships, including a partnership with Coremont and the appointment of new co-heads for global markets. Rich Repetto also joined the board in March.

Source: Finance Magnates