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1. Company Snapshot

1.a. Company Description

MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide.It offers the access to liquidity in the U.S. investment-grade bonds, U.S. high-yield bonds, and U.S. Treasuries, as well as municipal bonds, emerging market debts, Eurobonds, and other fixed income securities.The company, through its Open Trading protocols, executes bond trades between and among institutional investor and broker-dealer clients in an all-to-all anonymous trading environment for corporate bonds.


It also offers trading-related products and services, including composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments.In addition, the company provides various pre-and post-trade services, such as trade matching, trade publication, regulatory transaction reporting, and market and reference data across a range of fixed-income and other products.MarketAxess Holdings Inc.


was incorporated in 2000 and is headquartered in New York, New York.

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1.b. Last Insights on MKTX

MarketAxess Holdings Inc.'s recent performance was driven by strong Q4 earnings, beating estimates with $1.68 per share, and a 3.5% revenue rise. The company's record annual results were fueled by increasing trading volumes and adoption of newer protocols. A 2.6% dividend hike and "Buy" rating with 33.5% upside to $226.5 fair value (source) further bolstered investor confidence. Strategic investments in AI-driven X-Pro platform and portfolio trading are expected to drive mid-single digit revenue growth in 2026 and 8-9% through 2028.

1.c. Company Highlights

2. MarketAxess Holdings Inc. Delivers Record Revenue and Growth

MarketAxess Holdings Inc. reported record revenue of $846 million in 2025, representing a significant milestone for the company. The revenue growth was driven by a 10% increase in product areas outside US credit, with total average daily volume (ADV) reaching a record high. This, in turn, drove commission revenue and services revenue. The company's financial performance was also highlighted by the generation of $347 million in free cash flow and the return of $474 million to investors through share repurchases ($360 million) and dividends ($114 million). The actual EPS came out at $1.68, beating estimates of $1.65.

Publication Date: Feb -16

📋 Highlights
  • Record Revenue & Non-US Growth:: MarketAxess reported $846M revenue in 2025, with 10% growth in non-US credit areas.
  • Free Cash Flow & Shareholder Returns:: Generated $347M free cash flow, returning $474M to investors via $360M share buybacks and $114M dividends.
  • Block Trading ADV Surge:: Block trading ADV hit $5B in 2025 (24% YoY), with EM up 27%, euros up 66%, and US hybrid up 18%.
  • Emerging Markets Growth Potential:: EM ADV surged 50% YoY in 2025, with <10% electronic penetration offering significant expansion opportunities.
  • Data & AI Leverage:: $5.3T inquiry volume and 91M prices in 2025, used for AI-driven innovations like portfolio construction and spread prediction.

Segment-wise Performance

The company's block trading ADV increased 24% to a record $5 billion across US credit, emerging markets, and euro bonds. US credit ADV reached a record, driven by record block trading ADV in US hybrid of over $2 billion, up 18%. Additionally, the company saw a 48% increase in total global portfolio trading ADV to a record $1.4 billion, with record US credit ADV and market share. Emerging markets was a standout success story, with a 50% year-over-year increase in market ADV.

Guidance and Outlook

For 2026, the company expects total services revenue to grow in the mid-single-digit percent range. Total expenses ex-notables are expected to be in the range of $530 million to $545 million, implying an 8% growth rate. The effective tax rate is expected to be in the range of 24% to 26%. Analysts estimate next year's revenue growth at 7.6%, indicating a continued upward trajectory for the company.

Valuation and Return on Capital

With a P/E Ratio of 26.75 and an EV/EBITDA of 14.61, the company's valuation appears to be reasonable, considering its strong growth prospects. The company's return on invested capital (ROIC) stands at 15.94%, and return on equity (ROE) is at 18.78%, indicating a strong ability to generate returns on capital. The dividend yield is 1.69%, providing a relatively stable source of return for investors.

Growth Drivers and Opportunities

The company's block protocols are driving growth, with targeted RFQ seeing strong growth rates. The addressable market for electronification is substantial, particularly in the block market, which makes up around 50% of the US credit market. The company is focused on converting this market from phone to platform and sees enormous opportunity in electronifying the global fixed-income market. The potential for artificial intelligence (AI) to enhance its business is also being explored, particularly in areas such as portfolio construction, trading signals, and depth of liquidity.

3. NewsRoom

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NMR vs. MKTX: Which Stock Should Value Investors Buy Now?

Feb -19

Source: zacks.com

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Rhumbline Advisers Has $15.76 Million Position in MarketAxess Holdings Inc. $MKTX

Feb -19

Source: defenseworld.net

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MarketAxess Holdings Inc. (NASDAQ:MKTX) Receives Average Recommendation of “Hold” from Brokerages

Feb -19

Source: defenseworld.net

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Market Today: Moderna rebounds; oil and gold jump

Feb -18

Source: gurufocus.com

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First Look: Nvidia-Meta chip pact, Bayer deal, WBD talks

Feb -18

Source: gurufocus.com

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Arnold Van Den Berg's Strategic Moves: MarketAxess Holdings Inc. Takes Center Stage

Feb -17

Source: gurufocus.com

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MarketAxess: Diversification With This Counter-Cyclical Stock

Feb -11

Source: seekingalpha.com

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Robertson Opportunity Capital Opens $5 Million MarketAxess Position

Feb -10

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.58%)

6. Segments

Commissions

Expected Growth: 7.5%

Commissions from MarketAxess Holdings Inc. grew 7.5% driven by increased trading volumes, expansion of credit spreads, and rising adoption of electronic trading platforms. Additionally, the company's strategic partnerships, product innovation, and growing market share in the fixed-income market also contributed to the growth.

Information Services

Expected Growth: 8.5%

MarketAxess Holdings Inc.'s Information Services segment growth of 8.5% is driven by increasing adoption of electronic trading platforms, growing demand for data analytics and market insights, expansion into new markets, and strategic partnerships. Additionally, the rise of passive investing and ETFs has led to increased demand for fixed-income market data and trading solutions.

Post-trade Services

Expected Growth: 7.8%

MarketAxess Holdings Inc.'s Post-trade Services segment growth of 7.8% is driven by increasing electronification of fixed-income trading, growing demand for automated trade processing, and expanding client base. Additionally, the company's strategic acquisitions and investments in technology have enhanced its offerings, attracting more clients and increasing trading volumes.

Technology Services

Expected Growth: 8.2%

MarketAxess Holdings Inc.'s Technology Services segment growth of 8.2% is driven by increasing adoption of electronic trading platforms, growing demand for fixed-income trading solutions, and expansion into new markets. Additionally, the company's investments in technology and data analytics, as well as its strategic partnerships, have contributed to the segment's growth.

7. Detailed Products

Corporate Bond Trading

MarketAxess' corporate bond trading platform provides institutional investors with access to a deep pool of liquidity, enabling them to trade a wide range of corporate bonds.

High-Yield Bond Trading

MarketAxess offers a high-yield bond trading platform, providing investors with access to a broad range of high-yield bonds, including distressed and fallen angel securities.

Agency MBS Trading

MarketAxess' agency MBS trading platform enables investors to trade a wide range of agency mortgage-backed securities, including TBA and specified pool securities.

Rates Derivatives Trading

MarketAxess offers a rates derivatives trading platform, providing investors with access to a range of interest rate swaps, options, and futures.

Municipal Bond Trading

MarketAxess' municipal bond trading platform provides investors with access to a broad range of municipal bonds, including general obligation and revenue bonds.

Data and Analytics

MarketAxess offers a range of data and analytics tools, providing investors with insights into market trends, pricing, and liquidity.

Post-Trade Services

MarketAxess offers a range of post-trade services, including trade confirmation, clearing, and settlement.

8. MarketAxess Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

MarketAxess Holdings Inc. operates in a niche market, providing electronic trading platforms for fixed-income securities. While there are substitutes available, they are not as comprehensive as MarketAxess' offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

MarketAxess Holdings Inc.'s customers are primarily institutional investors and broker-dealers, who have limited bargaining power due to the specialized nature of the company's services.

Bargaining Power Of Suppliers

MarketAxess Holdings Inc. has a diversified supplier base, and the company's suppliers have limited bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the electronic trading platform market, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The electronic trading platform market is moderately competitive, with a few established players competing for market share. However, MarketAxess Holdings Inc.'s strong brand recognition and established customer base help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.97%
Debt Cost 3.95%
Equity Weight 89.03%
Equity Cost 8.82%
WACC 8.28%
Leverage 12.32%

11. Quality Control: MarketAxess Holdings Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Houlihan Lokey

A-Score: 5.6/10

Value: 2.6

Growth: 6.8

Quality: 7.8

Yield: 3.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Evercore

A-Score: 5.3/10

Value: 3.0

Growth: 5.8

Quality: 8.0

Yield: 3.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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LPL Financial Holdings

A-Score: 5.3/10

Value: 4.3

Growth: 6.8

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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StoneX

A-Score: 5.1/10

Value: 7.3

Growth: 4.2

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
MarketAxess

A-Score: 4.9/10

Value: 2.8

Growth: 6.2

Quality: 8.8

Yield: 3.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Marathon Digital Holdings

A-Score: 4.0/10

Value: 7.9

Growth: 5.1

Quality: 7.4

Yield: 0.0

Momentum: 2.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

181.23$

Current Price

181.23$

Potential

-0.00%

Expected Cash-Flows