Cboe Global Markets, Inc. (CBOE Quick QuoteCBOE - Free Report) reported first-quarter 2025 adjusted earnings of $2.50 per share, which beat the Zacks Consensus Estimate by 5.9%. The bottom line increased 16.3% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The quarterly results reflected strong performance in Derivatives Markets, Data Vantage and Cash and Spot Markets. 

Operational Details

Total adjusted revenues of CBOE Global were a record $565.2 million, up 13% year over year, on increases in derivatives markets, cash and spot markets, and Data Vantage net revenues. The top line beat the consensus mark by 1.5%.

Options revenues climbed 15% year over year to $352.4 million. The improvement was driven by growth in market data and access and capacity fees and an increase in net transaction and clearing fees as a result of higher options trading volumes.

Revenues of North American Equities totaled $94.6 million, up 2% year over year, reflecting higher access and capacity fees and proprietary market data, partially offset by lower net transaction and clearing fees2 and a decline in industry market data fees.

Europe and Asia Pacific revenues increased 18% year over year to $64.1 million, reflecting growth in net transaction and clearing fees and non-transaction revenues.

Futures net revenues increased 8% year over year to $32.8 million, driven by a 9% increase in net transaction and clearing fees.

Global FX net revenues rose 16% year over year to $21.3 million due to higher net transaction and clearing fees. 

Adjusted operating expenses were $192.4 million, which decreased 0.3% year over year, driven by lower depreciation and amortization, other expenses, and travel and promotional expenses. Our estimate was $205 million. 

Adjusted operating income grew 20.6% year over year to $373 million. Our estimate was $326.9 million.

Adjusted operating margin was 66%, which expanded 440 basis points (bps) year over year. Our estimate was 61.4%. Adjusted EBITDA margin of 67.9% expanded 50 bps year over year. Our estimate was 62.8%.

Financial Update

CBOE Global exited the first quarter of 2025 with cash and cash equivalents of $1 billion, which increased 13.8% from the 2024-end level. 

As of March 31, 2025, total assets of $8.7 billion rose 11.2% from the 2024-end figure. CBOE’s long-term debt was $1.4 billion, which inched up 0.1% from the 2024-end level. Total shareholders’ equity was $4.5 billion, up 4% from the Dec. 31, 2024 figure.

Share Repurchase and Dividend Update

In the first quarter, CBOE Global paid out cash dividends worth $66.4 million or 63 cents per share and bought back shares worth $30 million. As of March 31, 2025, CBOE had $649.8 million left under its current share repurchase authorization.

CBOE’s 2025 Guidance

CBOE increased its 2025 organic total net revenue growth target to mid-to-high single digits from mid-single digits.

Cboe Data Vantage organic net revenue growth is expected in the range of mid to high single digits.

Adjusted operating expense is expected to be between $837 million and $852 million. Depreciation and amortization expense is expected to be in the range of $55 to $59 million, excluding the expected amortization of acquired intangible assets. 

The effective tax rate on adjusted earnings is expected to be in the range of 28.5% to 30.5%. 

Capital expenditures are expected to be in the range of $75 million to $85 million.

Zacks Rank

CBOE currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

CME Group (CME Quick QuoteCME - Free Report) reported first-quarter 2025 operating income of $2.80 per share, which beat the Zacks Consensus Estimate by 0.4%. The bottom line improved 12% year over year. CME Group’s revenues of $1.6 billion increased 10.4% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.5%.

Operating income increased 15.5% from the prior-year quarter to $1.1 billion. Our estimate was $1 billion. Given heightened economic uncertainty, ADV was a record 29.8 million contracts. Commodities grew 19%, financials increased 12%, and ADV outside the United States reached a new high of 8.8 million contracts, up 19% year over year. The total average rate per contract was 68.6 cents.

Nasdaq (NDAQ Quick QuoteNDAQ - Free Report) reported first-quarter 2025 adjusted earnings per share of 79 cents, beating the Zacks Consensus Estimate by 2%. The bottom line improved 25.4% year over year. Nasdaq’s net revenues of $1.2 billion increased 12.5% year over year. The top line beat the Zacks Consensus Estimate by 0.1%.

Annualized Recurring Revenue (ARR) increased 8% year over year to $2.8 billion. Organic growth was 9%. Annualized SaaS revenues increased 14% and represented 37% of ARR. The company’s operating margin of 55% expanded 200 basis points year over year.

Intercontinental Exchange (ICE Quick QuoteICE - Free Report) reported first-quarter 2025 adjusted earnings per share of $1.72, which beat the Zacks Consensus Estimate by 1.2%. The bottom line increased 16.2% on a year-over-year basis. Intercontinental’s net revenues were a record $2.5 billion, up 11.7% year over year. The top line beat the Zacks Consensus Estimate by 0.5%. 

Adjusted operating income rose 11% year over year to $1.5 billion. Our estimate was $1.4 billion. Adjusted operating margin expanded 200 bps year over year to 61%. Our estimate was 46.9%.