Tradeweb misses Q3 profit and revenue estimates as volumes rise 22.4%

Tradeweb Markets Inc. (TW) missed profit and revenue estimates for the third quarter of 2026. Adjusted diluted earnings were $1.02 per share, against a $1.05 consensus estimate compiled by Finnhub, and revenue was $584.5 million, short of a $599.78 million estimate.

The company said in a press release furnished with an 8-K filing on Oct. 29 that revenue rose 14.9% from a year earlier.

Here's how the company did:

• Adjusted diluted EPS: $1.02 vs. $0.87 a year earlier, $1.05 expected, according to Finnhub
• Diluted EPS: 94 cents vs. 86 cents a year earlier
• Revenue: $584.5 million vs. $508.6 million a year earlier, $599.78 million expected, according to Finnhub
• Adjusted EBITDA: $318.9 million, a 54.5% margin, vs. $274.4 million a year earlier

Net income was $224.9 million, up 6.8% from a year earlier.

Average daily volume was $3.2 trillion, up 22.4% from a year earlier. The company said it set quarterly volume records in municipal bonds.

Segment results

Rates revenue was $324.5 million, up 18.2% from a year earlier. The company said U.S. government bond volume rose 28.0% from the prior-year period.

Credit revenue was $133.0 million, up 9.6%. Credit derivatives volume rose 61.3%.

Equities revenue was $38.4 million, up 28.8%. Market data revenue was $36.9 million, up 19.6%, mainly due to amendments to the LSEG market data license agreement.

Other income was $18.7 million, down 52.5% from $39.4 million a year earlier.

“Our third quarter 2026 revenue and volumes reflect the strength and breadth of our global, multi-asset platform,” CEO Billy Hult said, pointing to average daily volume up 22.4% from a year earlier.

2026 guidance

The company revised its full-year 2026 adjusted expense guidance to $1,155 million to $1,175 million. The company said the change reflects year-to-date revenue growth and its expectations for the rest of the year, with spending trending toward the middle of the range.

Other guidance is unchanged. The company expects depreciation and amortization of $160 million, an assumed non-GAAP tax rate of about 23.5% to 24.5%, cash capital expenditures of about $107 million to $117 million, and LSEG market data contract revenue of about $105 million.

The guidance does not include acquisitions announced but not yet closed.

Trumid and capital returns

Tradeweb agreed in October to buy Trumid Holdings for a total price of about $1.97 billion, including $1.89 billion in cash. The company expects to fund the cash component primarily with cash on hand and targets closing in the first half of 2027.

The board declared a quarterly cash dividend of 14 cents per share, a 16.7% increase from the prior-year period. It is payable Dec. 15 to holders of record on Dec. 1.

In the quarter, Tradeweb bought back 2,020,555 Class A shares at an average price of $103.83, for $209.8 million. It said $124.5 million remained under its share repurchase authorization as of Sept. 30.