MarketAxess Withdraws 2026 Guidance After ICE Deal

The Tip Desk · October 24, 2026 · 3 min read

Third-quarter revenue was $210.4 million, up 1% from a year earlier, as merger costs with Intercontinental Exchange cut GAAP earnings to $1.53 a share.

MarketAxess Holdings Inc. (MKTX), the operator of an electronic trading platform for fixed-income securities, reported third-quarter revenue of $210.4 million, up 1% from a year earlier, after a 12% increase to a record $233.4 million in the first quarter.

The company said the modest year-over-year gain reflected growth in services revenue rather than commissions. Total commission revenue of $179.9 million was flat versus the prior year. Services revenue rose 6% to $30.5 million, after 14% growth to a record $31.5 million in the second quarter. Information services, the largest services line, increased 10% to $15.2 million, which the company said was principally driven by net new contract revenue.

Trading activity still expanded. Total trading average daily volume increased 13% year over year, with growth across credit and rates and market-share gains in high yield and municipal bonds. Block trading ADV rose 21% to $5.4 billion, after an 11% increase to $5.9 billion in the second quarter. Portfolio trading ADV increased 37% to $1.9 billion. Dealer-initiated ADV rose 2% to $1.5 billion, including a 196% increase in Mid-X ADV.

Credit commissions fell. Total credit commission revenue of $161.2 million decreased 2% from a year earlier, driven by a 4% decrease in U.S. credit commission revenue from lower variable transaction fee per million, partially offset by higher volumes and fixed distribution fees. Total credit ADV increased 7%, while total credit FPM decreased 9%. Rates commission revenue of $8.9 million increased 34%, primarily from higher U.S. Treasury volumes and improved FPM.

GAAP results were weighed down by merger costs. Diluted EPS was $1.53 on net income of $54.0 million, compared with $1.84 and $68.3 million a year earlier. Excluding notable items, EPS was $1.86 on net income of $65.7 million. Pre-tax notable items of $13.1 million were merger-related expenses associated with the pending merger with Intercontinental Exchange, versus none in the year-ago quarter. GAAP operating margin was 35.4%, down 560 basis points; operating margin excluding notable items was 41.6%, up 60 basis points.

Total expenses of $136.0 million increased 10% year over year. Expenses excluding notable items of $122.9 million were flat, which the company described as continued expense discipline. Professional and consulting fees rose 99% to $14.7 million from $7.4 million a year earlier.

On July 29, 2026, MarketAxess agreed to be acquired by Intercontinental Exchange in a cash deal of $167.00 a share. On October 21, the Department of Justice and the Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period. Completion remains subject to stockholder approval, remaining regulatory approvals and other closing conditions. In light of the merger, the company said it has suspended earnings conference calls, withdrawn previously announced 2026 annual guidance and medium-term financial targets, and suspended monthly volume press releases.

Cash, cash equivalents, corporate bond investments and U.S. Treasury investments were $539.6 million as of September 30, 2026, down from $678.9 million at year-end 2025. The company said the decline primarily reflected capital allocation in the first nine months of 2026, including share repurchases, repayment of $128.0 million of revolving-credit borrowings and quarterly dividends, as well as higher net receivables, partially offset by operating cash. Borrowings outstanding under the credit facility were $92.0 million. The board declared a quarterly cash dividend of $0.78 a share, payable November 25, 2026. Employee headcount was 858.