Cboe Global Q2 Earnings Surpass Estimates on Higher Revenues

Cboe Global Markets, Inc. CBOE reported second-quarter 2025 adjusted earnings of $2.46 per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line increased 14.4% year over year.

The quarterly results benefited from growth in market data, access and capacity fees, an increase in options average daily volume, higher net transaction, clearing fees and non-transaction revenues.

Operational Details

Total adjusted revenues of CBOE Global were a record $587.3 million, which improved 14% year over year on the back of an increase in derivatives markets, Data Vantage, and cash and spot markets net revenues. The top line beat the Zacks Consensus Estimate by 2.6%.

Options revenues climbed 19% year over year to $364.8 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 an increase in total options average daily volume.

Revenues of North American Equities totaled $98.4 million, which remained flat year over year, reflecting higher access and capacity fees and industry market data fees, offset by lower net transaction and clearing fees.

Europe and Asia Pacific revenues increased 30% year over year to $70.4 million, reflecting growth in net transaction and clearing fees and non-transaction revenues.

Futures net revenues decreased 14% year over year to $30.1 million due to 19% decrease in net transaction and clearing fees.

Global FX net revenues rose 19% year over year to $23.6 million, primarily due to higher net transaction and clearing fees.

Adjusted operating expenses were $213.3 million, which increased 8.2% year over year. This increase was primarily due to higher compensation and benefits, depreciation and amortization, and technology support services. It was partially offset by lower travel and promotional expenses and professional fees and outside services. Our estimate was $221.4 million.

Adjusted operating income grew 18.5% year over year to $374 million. Our estimate was $342.5 million.

Adjusted operating margin came in at 63.7%, which expanded 230 basis points (bps) year over year. Adjusted EBITDA margin of 65.1% contracted 120 bps year over year.

Financial Update

CBOE Global exited the second quarter with cash and cash equivalents of $1.26 billion, which increased 36.5% from the 2024-end level. As of June 30, 2025, total assets of $9 billion rose 16.2% from the 2024-end figure.

CBOE’s long-term debt was $1.4 billion, which inched up 0.06% from the 2024-end level. Total shareholders’ equity was $4.7 billion, up 9% from the Dec. 31, 2024, figure.

Share Repurchase and Dividend Update

In the second quarter, CBOE Global paid out cash dividends worth $66.4 million or 63 cents per share and bought back shares worth $35.3 million. As of June 30, 2025, CBOE had approximately $614.5 million left under its current share repurchase authorization.

2025 Guidance Updated

CBOE anticipates organic total net revenue growth to be in the high single-digit range, up from the previous guidance.

The company reaffirmed Data Vantage’s organic net revenue growth range of mid to high single digits.

The company expects adjusted operating expenses to be in the range of $832 million to $847 million, down from previous guidance of $837-$852 million. The guidance excludes the expected amortization of acquired intangible assets of $70 million. 

CBOE estimates depreciation and amortization expense to be in the range of $53-$57 million in 2025, down from previous guidance of $55-$59 million, excluding the expected amortization of acquired intangible assets.

Cboe Global estimates depreciation and amortization expenses in the range of $43-$47 million, excluding the expected amortization of acquired intangible assets.

CBOE reaffirms the effective tax rate on adjusted earnings to be in the range of 28.5% to 30.5%.

CBOE reaffirms capital expenditures in 2025 to be in the range of $75-$85 million.

Zacks Rank

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

Performance of Other Securities and Exchanges

Intercontinental Exchange ICE reported second-quarter 2025 adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate by 2.3%. The bottom line increased 19.1% on a year-over-year basis. Intercontinental’s net revenues were a record $2.5 billion, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 0.7%. 

Total operating expenses decreased 0.4% year over year to $1.3 billion. This can be primarily attributed to lower rent and occupancy and selling, general and administrative expenses. Our estimate was also $1.3 billion. Adjusted operating expenses were $983 million in the quarter, up 3.8% year over year. Our estimate was $1 billion. Adjusted operating income rose 13.9% year over year to $1.6 billion. Our estimate was $1.4 billion. Adjusted operating margin expanded 200 bps year over year to 61%.

Nasdaq NDAQ reported second-quarter 2025 adjusted earnings per share of 85 cents, which beat the Zacks Consensus Estimate by 6.3%. The bottom line improved 24% year over year. Nasdaq’s net revenues of $1.3 billion increased 13% year over year. Organic net revenue growth was 12%. The top line beat the Zacks Consensus Estimate by 2.4%.

Annualized Recurring Revenue (ARR) increased 10% year over year to $2.9 billion. Organic growth was 9%. Annualized SaaS revenues increased 13% and represented 37% of ARR. Capital Access Platforms' revenues, adjusted, were $527 million, up 9% year over year. The increase was primarily driven by higher revenues from all business lines. Our estimate was $517.6 million.

CME Group CME reported second-quarter 2025 operating income of $2.96 per share, which beat the Zacks Consensus Estimate by 1.7%. The bottom line improved 15.6% year over year. CME Group’s revenues of $1.7 billion increased 10.4% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 11% year over year) and market data and information services (up 13.2% year over year). The top line beat the Zacks Consensus Estimate by 0.5%. 

Total expenses rose 5.8% year over year to $562.7 million, attributable to higher compensation and benefits, technology, professional fees and outside services and licensing and other fee agreements. It exceeded our estimate of $513.7 million. Operating income increased 12.9% from the prior-year quarter to $1.1 billion. Our estimate was $1.1 billion.

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