Marketaxess Holdings (MKTX)
NASDAQ:MKTX
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Marketaxess Holdings
(NASDAQ:MKTX)
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Rating:75Outperform
Price Target:
$205.00
▲(19.86% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by strong underlying fundamentals (high margins and robust free cash flow) and supportive technical momentum (price above key moving averages with positive MACD). Offsetting factors are a relatively high P/E and earnings-call-flagged pressures on profitability (fee capture mix shift and higher expenses) alongside increased leverage.
Positive Factors
Free Cash Flow Strength
MarketAxess consistently converts earnings into cash (free cash flow running ~82%–98% of net income) and produced a record $347M FCF in 2025. Durable cash generation underpins dividends, buybacks, tech investment and resilience through cycles, supporting long-term capital allocation flexibility.
Negative Factors
Fee-Capture Compression
Growth skewing toward lower-capture products (portfolio trading, eurobonds, protocol volumes) reduces revenue per unit traded. Even with rising volumes, persistent mix shifts can structurally limit top-line leverage from flow growth and require sustained product pricing or mix remediation to protect margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
MarketAxess consistently converts earnings into cash (free cash flow running ~82%–98% of net income) and produced a record $347M FCF in 2025. Durable cash generation underpins dividends, buybacks, tech investment and resilience through cycles, supporting long-term capital allocation flexibility.
Read all positive factors
Marketaxess Holdings (MKTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.21B
Dividend Yield1.66%
Average Volume (3M)456.73K
Price to Earnings (P/E)27.1
Beta (1Y)-0.08
Revenue Growth3.96%
EPS Growth-20.33%
CountryUS
Employees891
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)1.68
Shares Outstanding35,548,264
10 Day Avg. Volume365,471
30 Day Avg. Volume456,729
Financial Highlights & Ratios
PEG Ratio-3.13
Price to Book (P/B)5.82
Price to Sales (P/S)7.86
P/FCF Ratio17.84
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue7.21
Enterprise Value/Gross Profit10.32
Enterprise Value/Ebitda13.52
Forecast
1Y Price Target
$190.57Price Target Upside11.42% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)8.21
Revenue Forecast (FY)$911.98M
Marketaxess Holdings Business Overview & Revenue Model
Company Description
MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. It offers the access to liquidity in the U.S. investment-grade bonds, U.S. high-yi...
How the Company Makes Money
MarketAxess generates revenue primarily through transaction fees charged to clients for trades executed on its platform. The company earns a commission for each trade, which varies based on the type of security and the volume traded. Additionally,...
Marketaxess Holdings Key Performance Indicators (KPIs)
Any
Average Daily Volume by Type
Monitors trading volumes across different product types, indicating market activity levels and the company's ability to capture trading demand.
Monitors trading volumes across different product types, indicating market activity levels and the company's ability to capture trading demand.
Data provided by:
The Fly
The FlyMarketaxess Holdings Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call highlighted multiple record metrics (revenue, ADV, free cash flow), strong growth across new initiatives (blocks, portfolio trading, MIDEX, automation), successful capital returns and accretive acquisition integration, and a clear three-year plan. Offsetting these positives are near-term pressures in US credit revenue and fee capture due to mix shifts, higher operating investments that increase expenses, some product-specific declines (municipals, US high grade), and temporary balance sheet leverage from the ASR. Management presented actionable plans and reiterated targets, signaling confidence in execution despite short-term headwinds.Positive Updates
Record Full-Year Revenue and Free Cash Flow
Generated record total revenue of $846 million in 2025 and record annual free cash flow of $347 million.
Negative Updates
US Credit Near-Term Revenue Pressure
US credit revenue decreased 2% in 2025; management acknowledged US credit market share in high grade was lower than desired (impacted in part by a 92% increase in new-issue block activity in January).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue and Free Cash Flow
Generated record total revenue of $846 million in 2025 and record annual free cash flow of $347 million.
Read all positive updates
Company Guidance
For 2026 the company guided total services revenue to grow in the mid-single-digit range, non‑GAAP total expenses of $530–$545 million (implying roughly 8% growth to the midpoint), an effective tax rate of 24–26%, and capital expenditures of $65–$75 million (about 80% related to capitalized software development); management reiterated its three‑year targets of average annual revenue growth of 8–9% and operating margin expansion of 75–125 basis points, with US credit expected to contribute ~20% of incremental revenue in year one and ~35% by the end of the plan. These targets sit on a 2025 base of record revenue of $846 million and record free cash flow of $347 million; the company returned $474 million to shareholders in 2025 ($360 million repurchases and $114 million dividends), completed a $300 million ASR (final delivery of 360,000 shares) and has retired 1.7 million shares to date, with $25 million remaining on the repurchase authorization.Marketaxess Holdings Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 849.20M | 817.92M | 750.90M | 718.71M | 701.03M |
| Gross Profit | 593.40M | 573.61M | 524.13M | 519.48M | 528.79M |
| EBITDA | 452.70M | 442.61M | 411.09M | 406.14M | 395.01M |
| Net Income | 246.63M | 274.18M | 258.06M | 250.22M | 257.89M |
Balance Sheet | |||||
| Total Assets | 1.81B | 1.79B | 2.02B | 1.61B | 1.53B |
| Cash, Cash Equivalents and Short-Term Investments | 568.46M | 649.25M | 522.25M | 464.75M | 517.93M |
| Total Debt | 284.94M | 72.65M | 79.68M | 82.68M | 88.42M |
| Total Liabilities | 650.35M | 400.56M | 722.10M | 526.68M | 489.14M |
| Stockholders Equity | 1.15B | 1.39B | 1.29B | 1.08B | 1.04B |
Cash Flow | |||||
| Free Cash Flow | 373.94M | 375.30M | 281.32M | 237.36M | 231.47M |
| Operating Cash Flow | 382.14M | 385.24M | 333.77M | 289.23M | 282.09M |
| Investing Cash Flow | -96.72M | -86.94M | -155.29M | -86.27M | -67.69M |
| Financing Cash Flow | -332.37M | -201.38M | -147.06M | -242.38M | -189.78M |
Marketaxess Holdings Technical Analysis
Negative
171.03
Price Trends
175.64
Negative
173.76
Negative
179.43
Negative
Market Momentum
-1.08
Negative
45.73
Neutral
53.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTX, the sentiment is Negative. The current price of 171.03 is below the 20-day moving average (MA) of 171.07, below the 50-day MA of 175.64, and below the 200-day MA of 179.43, indicating a bearish trend. The MACD of -1.08 indicates Negative momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 53.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKTX.
Marketaxess Holdings Risk Analysis
Marketaxess Holdings disclosed 34 risk factors in its most recent earnings report. Marketaxess Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marketaxess Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $29.28B | 28.21 | 13.10% | 0.45% | 22.17% | 40.13% | |
75 Outperform | $6.21B | 27.05 | 18.76% | 1.66% | 3.96% | -20.33% | |
74 Outperform | $7.82B | 5.77 | 16.43% | ― | 32.53% | 13.38% | |
74 Outperform | $6.10B | 20.12 | 22.08% | 1.63% | 12.77% | 36.43% | |
73 Outperform | $7.87B | 6.06 | 32.56% | 2.88% | 27.66% | 131.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $4.53B | 19.99 | 30.96% | 4.06% | 1.58% | 1.93% |
* Financial Sector Average
MKTX
Marketaxess Holdings
171.03
-49.33
-22.39%
SNEX
StoneX Group
102.23
49.46
93.74%
LAZ
Lazard
50.02
15.67
45.61%
PIPR
Piper Sandler
87.31
32.62
59.63%
VIRT
Virtu Financial
51.28
13.55
35.92%
TW
Tradeweb Markets
121.43
-11.64
-8.75%
Marketaxess Holdings Corporate Events
Business Operations and StrategyExecutive/Board Changes
MarketAxess Announces Leadership Transition in Technology Organization
Neutral
Feb 17, 2026
On February 16, 2026, MarketAxess Holdings Inc. concluded a comprehensive search to identify a new Chief Technology Officer, signaling a forthcoming leadership change in its technology organization. The company plans to announce the new CTO later ...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
MarketAxess Extends Credit Facility and Declares Dividend
Positive
Feb 6, 2026
On February 4, 2026, MarketAxess Holdings amended and restated its existing $750 million revolving credit facility, extending the maturity from August 2026 to February 2029, removing a 0.10 percentage point SOFR credit spread adjustment and signif...
Business Operations and StrategyExecutive/Board Changes
MarketAxess Adds Independent Directors to Strengthen Board
Positive
Jan 26, 2026
On January 22, 2026, MarketAxess Holdings Inc. elected Douglas A. Cifu, co-founder and former CEO of Virtu Financial, and Kenneth T. Schiciano, a senior advisor and longtime executive at private equity firm TA Associates, to its board of directors...
Business Operations and StrategyStock Buyback
MarketAxess Announces Stock Repurchase Increase
Positive
Dec 9, 2025
On December 9, 2025, MarketAxess Holdings Inc. announced new medium-term financial targets and an increase in its stock repurchase authorization to $505 million, reflecting the Board’s confidence in its long-term strategy and commitment to s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.