Tradeweb Revises 2026 Expense Outlook After Volume Rebound

The Tip Desk · October 31, 2026 · 5 min read

Third-quarter revenue reached $584.5 million, up 14.9%, as average daily volume growth picked up to 22.4% from 18.2% in the second quarter.

Tradeweb Markets Inc. (TW), a global operator of electronic marketplaces for rates, credit, equities and money markets, reported third-quarter 2026 revenue of $584.5 million, up 14.9% from a year earlier, or 15.4% on a constant-currency basis.

That year-over-year pace picked up from 9.0% growth in the second quarter, after 21.2% in the first quarter. Average daily volume was $3.2 trillion, up 22.4% from a year earlier, after 18.2% growth in the prior quarter. International revenue was $258.5 million, up 22.4%.

Net income was $224.9 million, up 6.8%, and adjusted net income was $238.8 million, up 15.6%. Diluted earnings were $0.94 a share; adjusted diluted earnings were $1.02 a share. Adjusted EBITDA was $318.9 million, a 54.5% margin. Operating income was $253.4 million. The net income margin was 38.5%.

Rates remained the largest product line. Rates revenue was $324.5 million, up 18.2% (18.9% constant currency). Rates ADV rose 33.8%. U.S. government bond ADV was up 28.0%, which the company said reflected robust institutional and wholesale activity, with September 2026 the most active month for U.S. government bond trading on the platform this year. Swaps/swaptions of one year and longer ADV rose 42.4%, which the company attributed to global central bank policy changes, geopolitical tensions and inflation uncertainty. European government bond ADV rose 24.5%. Mortgages ADV fell 3.6%. Rates derivatives of one year and longer average variable fees per million declined 10.5%, which the company said was primarily driven by higher compression activity and lower duration.

Credit revenue was $133.0 million, up 9.6% (10.0% constant currency). Credit ADV rose 45.0%. U.S. credit ADV was up 23.9%, which the company said reflected continued client adoption across protocols, most notably Portfolio Trading, RFQ and Tradeweb AllTrade. European credit ADV rose 8.4%, with Tradeweb AiEX reaching a record in September. Credit derivatives ADV rose 61.3%, which the company attributed to increased hedge fund and systematic activity in SEF and MTF credit default swaps. Municipal bond ADV rose 9.7%, against a broader market that was up 13% according to MSRB, which the company said reflected elevated new issuance in which Tradeweb does not participate. Fully electronic U.S. high-grade TRACE share was 19.9%, up 130 basis points; total high-grade TRACE share was 27.9%, up 170 basis points. A FINRA reporting-rule change that took effect August 31, 2026 lowered reported U.S. high-grade TRACE volumes and increased Tradeweb’s electronic share growth as a percentage of TRACE; TRACE and Tradeweb have not restated prior periods, so those amounts may not be comparable. Cash credit average variable fees per million declined 10.6%, which the company said was primarily a mix shift away from higher-fee municipal bonds and retail U.S. credit toward Portfolio Trading.

Equities revenue was $38.4 million, up 28.8% (29.8% constant currency). Equities ADV rose 14.4%, which the company said was driven by institutional and wholesale activity, including U.S. and international ETFs. Money markets revenue was $44.2 million, up 3.0%. Money markets ADV rose 6.0%, which the company said reflected global repurchase agreement activity and ICD Portal activity, partially offset by less commercial paper and discount notes demand. Market data revenue was $36.9 million, up 19.6%, which the company said was primarily due to amendments to its LSEG market data license effective November 2025. Other revenue was $7.6 million, down 17.3%, which the company said was primarily lower digital-asset validation revenue on the Canton Network and lower software development and implementation revenue.

Operating expenses were $331.1 million, up 11.0%. Adjusted expenses were $288.1 million, up 13.9% (15.1% constant currency), which the company said was primarily higher incentive compensation, headcount, AI and data investment, and higher data and clearance fees. Other income, net, was $18.7 million, down 52.5% from $39.4 million a year earlier, including a $27.5 million Securitize convertible-note reclassification gain, $14.4 million of unrealized gains on a minority equity investment, and a $24.0 million unrealized loss on Canton Coin holdings.

In October, Tradeweb entered a definitive agreement to acquire Trumid Holdings for about $1.97 billion, comprising $1.89 billion in cash and $82.0 million in equity, which the company described as its largest acquisition. The $1.89 billion cash component is expected to be funded primarily with cash on hand; the deal is targeted to close in the first half of 2027. Cash and cash equivalents were $2.1 billion as of September 30, with an undrawn $500 million credit facility. Trailing-twelve-month free cash flow was $1.1 billion. The board declared a $0.14 a share quarterly cash dividend.

The company revised full-year 2026 adjusted expense guidance to $1,155 million to $1,175 million, trending toward the middle of the range, to reflect year-to-date revenue growth. Depreciation and amortization, assumed non-GAAP tax rate, cash capital expenditures and LSEG market data contract revenue guidance were unchanged. Updated guidance does not incorporate announced but unclosed strategic acquisitions.