Cboe Global's Q4 Earnings Beat Estimates on Higher Revenues

Cboe Global Markets, Inc. CBOE reported fourth-quarter 2025 adjusted earnings of $3.06 per share, which beat the Zacks Consensus Estimate by 4.4%. The bottom line increased 46% year over year. 

The quarterly results reflected higher volumes across the company’s derivatives platform, solid cash and spot markets performance, offset by higher expenses.

Operational Details

Total adjusted revenues of CBOE Global were a record $671.1 million, up 28% year over year on the back of increases across all net revenue captions. The top line beat the consensus mark by 6%.

Options revenues climbed 34% year over year to $433.1 million. The improvement was driven by growth in net transaction and clearing fees and access and capacity fees.

Revenues of North American Equities totaled $110.7 million, up 17% year over year, reflecting higher net transaction and clearing fees, access and capacity fees, and market data fees.

Europe and Asia Pacific revenues increased 24% year over year to $69.9 million, reflecting growth in net transaction and clearing fees and non-transaction revenues.

Futures net revenues increased 12% year over year to $33.7 million, driven by a 13% increase in net transaction and clearing fees.

Global FX net revenues rose 22% year over year to $23.7 million. The increase was due to higher net transaction and clearing fees. 

Adjusted operating expenses were $220.6 million, which rose 7.7% year over year. This increase was primarily due to higher compensation and benefits, driven by a rise in accrued bonuses as a result of strong company performance. 

Adjusted operating income grew 41% year over year to $450.5 million.
 
Adjusted operating margin was 67.1%, which expanded 610 basis points (bps) year over year. Adjusted EBITDA margin of 69.2% expanded 600 bps year over year.

Full-Year Highlights

Adjusted earnings of $10.67 per share were up 24% from 2024. Moreover, full-year earnings missed the consensus estimate by 1.1%.

Net revenues were $2.4 billion, up 17.3% from 2024 and beat the consensus estimate by 1.6%.

Adjusted EBITDA margin of 67.7% expanded 250 bps year over year.

Financial Update

CBOE Global exited 2025 with cash and cash equivalents of $2.2 billion, which more than doubled from the 2024-end level. 

As of Dec. 31, 2025, total assets of $9.3 billion rose 19.5% 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 $5.1 billion, up 20% from the Dec. 31, 2024 figure.

Share Repurchase and Dividend Update

In the fourth quarter, CBOE Global paid out cash dividends worth $75.8 million or 72 cents per share. As of Dec. 31, 2025, CBOE had $614.5 million left under its current share repurchase authorization.

CBOE’s 2026 Guidance

CBOE Global expects total organic net revenue growth to be in the mid single-digit range.

CBOE Global anticipates that Data Vantage organic net revenue growth will be in the mid to high single-digit range. 

CBOE Global projects an adjusted operating expense in the range of $864 million to $879 million.

Capital expenditures are expected to be in the range of $73 million to $83 million.

Depreciation and amortization expense is expected to be in the range of $56 million to $60 million, excluding the expected amortization of acquired intangible assets.

The effective tax rate on adjusted earnings is expected to be in the range of 27.5-29.5%.

Zacks Rank

CBOE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industry Players

CME Group Inc. CME reported fourth-quarter 2025 adjusted earnings per share of $2.77, which beat the Zacks Consensus Estimate by 0.7%. The bottom line improved 9.9% year over year. CME Group’s revenues of $1.6 billion increased 8.1% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 7.8%) and market data and information services (up 14.5%). The top line beat the Zacks Consensus Estimate by 1.3%. Total expenses rose 8.8% year over year to $629.1 million. 

Operating income increased 7.7% from the prior-year quarter to $1 billion. Average daily volume (ADV) was a record 27.4 million contracts, up 7% year over year. This was due to higher quarterly volumes in Equities and Metals. Agricultural ADV reached 1.8 million contracts, up 2% year on year. Interest Rate and Forex ADV declined 2% and 12%, respectively. The total average rate per contract was 70.7 cents.

Intercontinental Exchange Inc. ICE reported fourth-quarter 2025 adjusted earnings per share of $1.71, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 12.5% on a year-over-year basis. Intercontinental’s net revenues were a record $2.5 billion, down 17.3% year over year. The top line, however, beat the Zacks Consensus Estimate by 1.2%. 

Total operating expenses increased 1.7% year over year to $1.3 billion. Adjusted operating expenses were $1 billion in the quarter, up 3.9% year over year. Adjusted operating income rose 1.1% year over year to $1.5 billion. Adjusted operating margin expanded 200 basis points year over year to 60%.

Nasdaq, Inc. NDAQ reported fourth-quarter 2025 adjusted earnings per share of 96 cents, beating the Zacks Consensus Estimate by 5.5%. The bottom line improved 26.3% year over year. Nasdaq’s net revenues of $1.4 billion increased 13% year over year. The top line beat the Zacks Consensus Estimate by 1.7%. Annualized Recurring Revenue (ARR) increased 10% year over year. Annualized SaaS revenues rose 11% and represented 38% of ARR. Organic growth was 13%.

Market Services net revenues were $311 million, up 16%. The increase was primarily driven by record industry volumes in U.S. cash equities and U.S. equity derivatives. Organic growth was 14%. Revenues at the Solutions business increased 13% year over year to $1.1 billion, reflecting strong growth from Index and Financial Technology. 

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This article originally published on Zacks Investment Research (zacks.com).

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