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Tradeweb Markets (TW)
:TW
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Tradeweb Markets
(NASDAQ:TW)
Rating:75Outperform
Price Target:
$154.00
▲(9.58% Upside)
Positive Factors
Market expansion
The company continues to expand volumes at a high rate despite tough comparisons due to heightened volatility and continued share gains.
Trading volumes
Tradeweb reported another quarter of record ADV and revenues, as trading volumes benefited from elevated volatility.
Negative Factors
Market share
Credit market share was under the microscope after volume data disclosed earlier this month caused the stock to fall 11%, the largest single-day decline since 2020.
Revenue growth
Slower organic revenue growth prospects to weigh on premium valuation.
Tradeweb Markets (TW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.23B
Dividend Yield0.32%
Average Volume (3M)1.31M
Price to Earnings (P/E)54.2
Beta (1Y)0.43
Revenue Growth27.97%
EPS Growth28.39%
CountryUS
Employees1,412
SectorFinancial
Sector Strength64
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.87
Shares Outstanding116,453,680
10 Day Avg. Volume1,389,238
30 Day Avg. Volume1,313,197
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)4.81
Price to Sales (P/S)16.16
P/FCF Ratio32.55
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue15.76
Enterprise Value/Gross Profit23.90
Enterprise Value/Ebitda28.19
Forecast
1Y Price Target
$152.82Price Target Upside8.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Tradeweb Markets Business Overview & Revenue Model
Company DescriptionTradeweb Markets Inc. (TW) is a leading global operator of electronic marketplaces for rates, credit, equities, and money markets. The company provides institutional, wholesale, and retail clients with access to markets, data, and analytics, facilitating the trading of a variety of financial products, including government bonds, mortgage securities, interest rate swaps, credit derivatives, and exchange-traded funds. Tradeweb is known for its innovative technology and strong focus on improving transparency and efficiency in financial markets.
How the Company Makes MoneyTradeweb Markets generates revenue primarily through transaction fees and subscription fees. The company earns transaction fees based on the volume and value of trades executed on its platform, making its revenue somewhat dependent on market activity and trading volumes. Additionally, Tradeweb offers data and analytics services through a subscription model, providing clients with market data, trading insights, and analytical tools. The company also benefits from strategic partnerships with major financial institutions and trading networks, which help to expand its market reach and enhance its service offerings. Tradeweb's ability to maintain and grow these partnerships is a significant factor in its revenue generation and overall business strategy.
Tradeweb Markets Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: 1.61%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
Tradeweb's earnings call highlighted significant growth in revenues and international business expansion, with strong performances in equities and credit. However, challenges in the U.S. Treasuries market and the impact of volatility on the ICD business were notable lowlights. Overall, the positive aspects, particularly the record-breaking revenue and successful integration of acquisitions, outweigh the challenges.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Tradeweb set a new high watermark for quarterly revenues, surpassing $1 billion in the first half of 2025, with a 26.7% year-over-year revenue growth for the quarter.
International Business Expansion
International revenues grew by 41% year-over-year, with significant contributions from emerging markets and APAC regions.
Strong Performance in Equities and Credit
Equities posted a 50% year-over-year revenue increase, and credit derivatives showed double-digit revenue growth, with record institutional equity derivatives revenue up 30% year-over-year.
Adjusted EBITDA Margin Expansion
Adjusted EBITDA margins expanded by 70 basis points relative to the second quarter of 2024.
Successful Product and Technology Integration
Integration of acquisitions like Yieldbroker, R8fin, and ICD is on track, enhancing Tradeweb's capabilities.
Negative Updates
Challenges in U.S. Treasuries Market
Market share of U.S. Treasuries declined by 400 basis points year-over-year due to a mix shift towards voice-centric trades during periods of volatility.
Impact of Market Volatility on ICD Business
The ICD business experienced a negative impact due to market volatility, with large clients drawing down money market fund balances.
Mixed Performance in Cash Rate Products
Average fees per million for cash rate products were down 7% due to a mix shift and lower fees in mortgages and European government bonds.
U.S. Credit Revenue Pressure
Retail corporate credit revenues declined by 17% year-over-year, reflecting better relative yields in other areas like money markets and munis.
Company Guidance
In the second quarter of 2025, Tradeweb achieved a record revenue of $513 million, marking a 26.7% year-over-year increase. This growth was driven by a strong 41% increase in international revenues, fueled by strategic initiatives in emerging markets (EM) and the Asia-Pacific (APAC) region. The company also saw a 70 basis point expansion in adjusted EBITDA margins compared to the same period in 2024. Tradeweb's rates business set a record for revenue, bolstered by organic growth across swaps, global government bonds, and mortgages. Additionally, credit revenues surged due to global corporate bonds and municipal bonds, while equities revenue rose by 50%, primarily from growth in the global ETF and equity derivatives sectors. The company raised its adjusted expense guidance for 2025 to between $1 billion and $1.05 billion, with a focus on U.S. and European credit, global repos, and digital assets. Despite market volatility, Tradeweb's electronic trading platforms, including AiEX and Portfolio Trading, continued to gain traction, with average daily trades in ETFs increasing over 125% year-over-year.Tradeweb Markets Financial Statement Overview
Summary
Tradeweb Markets exhibits strong financial health across all key verticals. Impressive revenue growth, robust profit margins, solid capital structure, and strong cash flow highlight its financial stability and operational efficiency.Income Statement
Tradeweb Markets has demonstrated impressive growth in its revenue, with a notable increase of 11.58% in the TTM (Trailing-Twelve-Months) compared to the previous annual period. The gross profit margin remains strong at 65.63%, reflecting efficient cost management and a robust business model. The net profit margin has also improved to 28.85% in the TTM, highlighting enhanced profitability. EBIT and EBITDA margins are healthy at 38.86% and 49.44% respectively, indicating strong operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Tradeweb Markets is notably strong, with a low debt-to-equity ratio of 0.0053, signifying minimal leverage and financial risk. The return on equity (ROE) is robust at 9.16%, demonstrating effective use of shareholder equity to generate profits. The equity ratio is high at 75.67%, confirming a solid capital structure with minimal reliance on debt financing.90
Very Positive
Cash Flow
Cash flow analysis reveals a substantial growth in free cash flow of 14.54% in the TTM, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio stands at 1.87, and the free cash flow to net income ratio is 1.76, both reflecting strong cash generation capabilities relative to net income.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.93B | 1.73B | 1.34B | 1.19B | 1.08B | 892.66M |
| Gross Profit | 1.28B | 1.13B | 877.91M | 756.36M | 669.19M | 543.00M |
| EBITDA | 1.08B | 978.68M | 733.33M | 616.01M | 542.88M | 428.57M |
| Net Income | 558.29M | 501.51M | 364.87M | 309.34M | 226.83M | 166.30M |
Balance Sheet | ||||||
| Total Assets | 8.06B | 7.27B | 7.06B | 6.26B | 5.99B | 5.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 1.34B | 1.71B | 1.26B | 972.05M | 791.28M |
| Total Debt | 32.32M | 35.75M | 27.46M | 27.94M | 24.33M | 34.46M |
| Total Liabilities | 1.33B | 869.11M | 1.13B | 713.82M | 681.24M | 660.69M |
| Stockholders Equity | 6.10B | 5.80B | 5.37B | 4.95B | 4.65B | 4.30B |
Cash Flow | ||||||
| Free Cash Flow | 981.47M | 856.78M | 684.33M | 572.73M | 526.67M | 400.70M |
| Operating Cash Flow | 1.04B | 897.74M | 746.09M | 632.82M | 578.02M | 443.23M |
| Investing Cash Flow | -891.36M | -969.19M | -132.76M | -60.10M | -259.11M | -62.54M |
| Financing Cash Flow | -249.13M | -290.26M | -168.17M | -276.70M | -136.10M | -52.69M |
Tradeweb Markets Technical Analysis
Positive
140.54
Price Trends
139.42
Positive
139.44
Positive
135.17
Positive
Market Momentum
0.34
Negative
52.87
Neutral
36.25
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 140.54 is above the 20-day moving average (MA) of 137.71, above the 50-day MA of 139.42, and above the 200-day MA of 135.17, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 36.25 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 57 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
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.56B | 9.74 | 28.75% | 2.21% | 25.12% | 122.80% | |
75 Outperform | $33.23B | 54.17 | 9.51% | 0.32% | 27.97% | 28.39% | |
68 Neutral | $7.79B | 36.37 | 16.42% | 1.44% | 7.68% | -14.39% | |
68 Neutral | $11.90B | 21.87 | 5.75% | 2.68% | 1.00% | 46.98% | |
67 Neutral | $17.01B | 11.60 | 9.79% | 3.95% | 10.63% | 1.62% | |
63 Neutral | $4.74B | 16.53 | 16.14% | ― | 53.18% | 24.91% | |
61 Neutral | $19.91B | 8.25 | 11.06% | 5.85% | 8.32% | 100.90% |
* Financial Sector Average
Performance Comparison
TW
Tradeweb Markets
140.54
27.63
24.47%
SNEX
StoneX Group
96.96
45.77
89.41%
JEF
Jefferies
57.69
3.69
6.83%
MKTX
Marketaxess Holdings
207.81
-21.01
-9.18%
NMR
Nomura Holdings
6.78
1.85
37.53%
VIRT
Virtu Financial
42.89
15.61
57.22%
Tradeweb Markets Corporate Events
Executive/Board ChangesShareholder Meetings
Tradeweb Markets Holds Annual Stockholders Meeting
Positive
May 21, 2025
On May 20, 2025, Tradeweb Markets Inc. held its Annual Meeting of Stockholders where key decisions were made. Stockholders elected Class III directors for a three-year term, ratified Deloitte & Touche LLP as the independent public accounting firm, and approved executive compensation, reflecting confidence in the company’s leadership and financial oversight.
The most recent analyst rating on (TW) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on Tradeweb Markets stock, see the TW Stock Forecast page.
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.