Cboe Global Markets Reports 25% Revenue Growth to $1.195 Billion in Q1 2025

Cboe Global Markets, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenues reaching $1.195 billion, a 25% increase from $957.2 million in the same period last year. The growth was primarily driven by higher transaction and clearing fees across its cash and spot markets and derivatives markets segments. Notably, cash and spot markets revenue surged by 32% to $500.9 million, while derivatives markets revenue increased by 24% to $541.6 million. The company's net income also rose to $250.6 million, up 20% from $209.5 million in the prior year, resulting in basic earnings per share of $2.38, compared to $1.97.

The company's operational metrics reflected a robust trading environment, with average daily volume (ADV) in options increasing by 23% to 58.4 million contracts. Cboe's market share in options remained stable at 31.1%, while the North American equities segment saw a 33% increase in market ADV to 15.7 billion shares. The increase in trading volumes was complemented by a substantial rise in regulatory fees, which were impacted by a 248% increase in the Section 31 fee rate, from an average of $8.00 per million dollars of covered sales in Q1 2024 to $27.80 in Q1 2025.

Strategically, Cboe has restructured its reporting segments, consolidating its operations into five segments: Options, North American Equities, Europe and Asia Pacific, Futures, and Global FX, effective January 1, 2025. This reorganization reflects the company's focus on enhancing operational efficiency and leveraging its strengths in derivatives and technology. Additionally, Cboe has closed its Cboe Digital spot market as of May 31, 2024, redirecting its efforts towards cash-settled margin Bitcoin and Ether futures contracts, which are expected to transition to the Cboe Futures Exchange in the second quarter of 2025.

Cboe's total operating expenses for the quarter decreased by 4% to $211.3 million, primarily due to lower depreciation and amortization costs. The company reported an operating income of $353.9 million, a 25% increase from the previous year. Looking ahead, Cboe remains optimistic about its growth trajectory, supported by strong trading volumes and strategic initiatives aimed at expanding its market presence. The company anticipates that its cash from operations, along with available credit facilities, will be sufficient to meet its operational and capital needs in the foreseeable future.