Tradeweb Markets Inc (TW)
NASDAQ:TW
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Tradeweb Markets
(NASDAQ:TW)
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Rating:78Outperform
Price Target:
$141.00
▲(14.33% Upside)
Action:ReiteratedDate:02/06/26
The score is driven primarily by very strong financial performance (profitability, cash generation, and low leverage). Earnings call commentary reinforces solid growth momentum and disciplined capital returns, partially offset by expense growth and pricing/FX headwinds. Technicals are mixed (below the 200-day and negative MACD), and valuation looks fair-to-somewhat-rich with a low dividend yield.
Positive Factors
Free Cash Flow Strength
Sustained, high free cash flow (FCF ~$1.13B in 2025) with FCF tracking net income (~0.91–0.97x) indicates durable earnings quality and cash conversion. This underpins capital returns, tech investment and liquidity resilience across market cycles without relying on external funding.
Negative Factors
Fee-per-Million Compression
Declining fees per million across multiple products signal structural pricing pressure from mix shifts and fixed-fee adoption. Even with higher volumes, weaker revenue intensity can constrain top-line elasticity and limit the benefit of growth unless offset by share gains or new higher‑value services.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained, high free cash flow (FCF ~$1.13B in 2025) with FCF tracking net income (~0.91–0.97x) indicates durable earnings quality and cash conversion. This underpins capital returns, tech investment and liquidity resilience across market cycles without relying on external funding.
Read all positive factors
Tradeweb Markets (TW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.06B
Dividend Yield0.45%
Average Volume (3M)1.48M
Price to Earnings (P/E)28.2
Beta (1Y)0.41
Revenue Growth22.17%
EPS Growth40.13%
CountryUS
Employees1,412
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.87
Shares Outstanding115,657,830
10 Day Avg. Volume1,381,012
30 Day Avg. Volume1,481,070
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)3.52
Price to Sales (P/S)11.17
P/FCF Ratio20.34
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue11.89
Enterprise Value/Gross Profit16.48
Enterprise Value/Ebitda17.10
Forecast
1Y Price Target
$137.13Price Target Upside11.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.04
Revenue Forecast (FY)$2.32B
Tradeweb Markets Business Overview & Revenue Model
Company Description
Tradeweb Markets Inc. builds and operates electronic marketplaces in the Americas, Europe, the Middle East, Africa, Asia Pacific, and internationally. The company's marketplaces facilitate trading in a range of asset classes, including rates, cred...
How the Company Makes Money
Tradeweb primarily earns revenue by charging fees tied to customer usage of its electronic marketplaces and related services. Its core revenue stream is transaction-based: when clients execute trades on Tradeweb’s platforms, Tradeweb receives fees...
Tradeweb Markets Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based top-line momentum and record results across 2025 and a very strong start to 2026 (January), highlighted by double-digit revenue growth, record swaps and ETF activity, margin expansion, robust free cash flow, disciplined capital returns (dividend increase and buybacks), and continued technology investment. Headwinds include lower intraday volatility, mix-driven fee compression, rising operating expenses (notably occupancy and tech), sizable FX losses, and weakness in US retail credit. Management articulates confidence in continued growth drivers (electronification, cross-asset connectivity, tokenization) while acknowledging variable digital-asset revenue and near-term expense growth. Overall, the positive operational and financial momentum materially outweighs the manageable challenges called out.Positive Updates
Record Annual and Quarterly Revenues
Crossed $2.0 billion in annual revenue for the first time; 2025 annual revenue grew 19% year-over-year on a reported basis. Q4 record revenues of $521 million, up 12.5% year-over-year (9.9% constant currency).
Negative Updates
Decline in Intraday Volatility
Intraday volatility declined 27% year-over-year and 15% quarter-over-quarter (lowest in four years), which can pressure trading activity and unit economics; US Treasury revenues only rose modestly (+1% YoY) despite low volatility environment.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Revenues
Crossed $2.0 billion in annual revenue for the first time; 2025 annual revenue grew 19% year-over-year on a reported basis. Q4 record revenues of $521 million, up 12.5% year-over-year (9.9% constant currency).
Read all positive updates
Company Guidance
The company guided 2026 adjusted expenses of $1.10–$1.16 billion (midpoint ≈ +11% YoY) and said it expects adjusted EBITDA and operating margin expansion versus 2025, though incremental margin gains may be muted; quarterly tech & communications spend is expected to grow mid‑ to high‑teens over the Q4 run rate, professional fees to step down ≈ $2 million, occupancy to rise ≈ 35% YoY, and G&A to be pressured by FX losses. Other guidance items included net interest income of ≈ $15 million, an expected Q1 purchase of ≈ $70 million of transferable tax credits, a non‑GAAP tax rate of 23.5–24.5%, CapEx and capitalized software of $107–$117 million (midpoint ≈ +9% YoY; ~60% software/40% growth & maintenance), $160 million of acquisition/Refinitiv transaction-related adjustments, and LSAG master‑data revenue of ≈ $105 million evenly across quarters. The board approved up to $500 million in new share repurchases (after ~$23 million remaining on the 2022 program), the Q4 cash balance was ≈ $2.1 billion, 2025 free cash flow exceeded $1 billion, and the quarterly dividend was raised to $0.14 per share (+17% YoY).Tradeweb Markets Financial Statement Overview
Summary
Income Statement
90
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
95
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.05B | 1.73B | 1.34B | 1.19B | 1.08B |
| Gross Profit | 1.80B | 1.13B | 877.91M | 756.36M | 669.19M |
| EBITDA | 1.43B | 978.68M | 681.10M | 617.82M | 542.88M |
| Net Income | 812.79M | 501.51M | 364.87M | 309.34M | 226.83M |
Balance Sheet | |||||
| Total Assets | 8.19B | 7.27B | 7.06B | 6.26B | 5.99B |
| Cash, Cash Equivalents and Short-Term Investments | 2.08B | 1.34B | 1.71B | 1.26B | 973.05M |
| Total Debt | 278.34M | 35.75M | 49.08M | 27.94M | 24.33M |
| Total Liabilities | 1.00B | 869.11M | 1.13B | 713.82M | 681.24M |
| Stockholders Equity | 6.51B | 5.80B | 5.37B | 4.95B | 4.65B |
Cash Flow | |||||
| Free Cash Flow | 1.13B | 856.78M | 684.33M | 572.73M | 526.67M |
| Operating Cash Flow | 1.17B | 897.74M | 746.09M | 632.82M | 578.02M |
| Investing Cash Flow | -126.53M | -969.19M | -132.76M | -60.10M | -259.11M |
| Financing Cash Flow | -307.48M | -290.26M | -168.17M | -276.70M | -136.10M |
Tradeweb Markets Technical Analysis
Positive
123.33
Price Trends
114.56
Positive
110.73
Positive
118.50
Positive
Market Momentum
2.69
Positive
57.57
Neutral
66.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW, the sentiment is Positive. The current price of 123.33 is below the 20-day moving average (MA) of 124.02, above the 50-day MA of 114.56, and above the 200-day MA of 118.50, indicating a bullish trend. The MACD of 2.69 indicates Positive momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 66.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TW.
Tradeweb Markets Risk Analysis
Tradeweb Markets disclosed 56 risk factors in its most recent earnings report. Tradeweb Markets 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
Tradeweb Markets Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $29.06B | 28.21 | 13.10% | 0.45% | 22.17% | 40.13% | |
75 Outperform | $29.46B | 29.11 | 19.88% | 0.46% | 11.88% | 28.96% | |
75 Outperform | $6.07B | 27.05 | 18.76% | 1.66% | 3.96% | -20.33% | |
71 Outperform | $28.66B | 14.06 | 16.94% | 1.26% | 6.45% | 5.85% | |
68 Neutral | $19.52B | 15.73 | 32.39% | ― | 81.43% | 119.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
56 Neutral | $8.38B | 17.25 | 6.84% | 2.52% | -5.41% | 25.28% |
* Financial Sector Average
TW
Tradeweb Markets
123.33
-21.62
-14.92%
IBKR
Interactive Brokers
66.12
21.50
48.18%
JEF
Jefferies
40.55
-19.39
-32.35%
MKTX
Marketaxess Holdings
166.55
-43.42
-20.68%
RJF
Raymond James Financial
145.37
1.56
1.09%
FUTU
Futu Holdings
140.29
32.30
29.91%
Tradeweb Markets Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Tradeweb Markets Authorizes New $500 Million Share Buyback
Positive
Feb 5, 2026
On February 5, 2026, Tradeweb’s board approved a new share repurchase program authorizing the buyback of up to $500 million of its Class A common stock, to take effect once the existing $300 million 2022 program is fully utilized, with $23.2...
Business Operations and Strategy
Tradeweb Markets Amends Long-Term Market Data Agreements
Positive
Jan 6, 2026
On December 31, 2025, Tradeweb Markets LLC entered into a series of amendments, effective November 1, 2025, to its master data license agreement with Refinitiv US LLC and Refinitiv US Organization LLC, affiliates of London Stock Exchange Group, re...
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.