MarketAxess Revenue Rises 1% to $210.4 Million as Deal Clears HSR Review
Key Facts
MarketAxess reported results on October 23 for the third quarter ended September 30, 2026, with revenue of $210.4 million, up 1% year over year, and diluted earnings per share of $1.53, or $1.86 excluding notable items, according to the company’s statement. Adjusted earnings per share came in below analysts’ estimates, while reported net income fell to $54 million from $68.3 million in the same period a year earlier. Net income excluding notable items was $65.7 million, compared with diluted earnings per share of $1.84 and net income of $68.3 million a year earlier. The results showed limited revenue growth alongside a decline in reported profitability, while adjusted figures reflected a smaller impact from notable items. The results were announced ahead of a shareholder meeting scheduled to vote on Intercontinental Exchange’s acquisition of the company, after the U.S. waiting-period review was ended early.
Activity growth was more pronounced in trading volumes, with average daily total trading volume up 13% from the third quarter of 2025. Average daily block trading rose 21% to $5.4 billion, while average portfolio trading increased 37% to $1.9 billion a day, according to MarketAxess. These indicators link the platform’s performance to increased activity in the institutional trading channels the company serves. But volume growth did not translate into a comparable increase in revenue; revenue rose just 1% year over year to $210.4 million. Profitability also came under pressure, as total expenses increased and the reported operating margin fell to 35.4%.
Total expenses were $136 million in the third quarter, up 10% year over year, according to the company’s statement. Excluding notable items, expenses were $122.9 million and remained stable compared with the same period. The reported operating margin was 35.4%, while reported net income fell to $54 million from $68.3 million a year earlier. Excluding notable items, the company recorded net income of $65.7 million and diluted earnings per share of $1.86. The divergence between stable adjusted expenses and higher total expenses puts the impact of notable items at the center of the quarter’s results, alongside limited revenue growth.
The ICE deal remains a key focus for shareholders alongside the company’s operating performance. The Justice Department and the Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period on October 21, 2026, according to a MarketAxess filing, and the FTC listed the transaction between Intercontinental Exchange and MarketAxess in its records on the same date. That means the end of the regulatory waiting period is no longer an outstanding step under the previous timetable. Early termination alone, however, does not complete the deal; MarketAxess shareholder approval and other closing conditions are still required. The company has scheduled a virtual special shareholder meeting for October 29 at 9 a.m. Eastern Time to vote on the merger agreement.
Reuters reported that ICE expects to complete the deal in the first half of 2027, with closing still subject to required approvals, and said the transaction is expected to be accretive to adjusted earnings per share in the first full year after closing. Meanwhile, MarketAxess suspended earnings calls, guidance and monthly trading-volume announcements, and withdrew its 2026 annual guidance and medium-term financial targets because of the deal. Suspending these practices reduces the regular updates investors have followed during the closing process. The company also declared a quarterly cash dividend of $0.78 per share, payable on November 25 to shareholders of record on November 11. These dates follow the October 29 vote, while completion of the deal remains targeted for the first half of 2027.