Tradeweb Markets (TW) AI Stock Analysis

• Market Cap: $27.56B
• Dividend Yield: 0.45%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.44
• Revenue Growth: 22.17%
• EPS Growth: 40.13%
• Country: US
• Employees: 1,412
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.87
• Shares Outstanding: 115,657,830
• 10 Day Avg. Volume: 1,595,913
• 30 Day Avg. Volume: 1,548,535
• PEG Ratio: 0.46
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 11.17
• P/FCF Ratio: 20.34
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 11.49
• Enterprise Value/Gross Profit: 15.93
• Enterprise Value/Ebitda: 16.53
• 1Y Price Target: $139.29
• Price Target Upside: 16.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.96
• Revenue Forecast (FY): $2.31B

• Rating: 78 Outperform
• Price Target: $125.00 ▲(4.63% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 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

Strong free cash flow generation

Tradeweb produces sustainably high free cash flow (>$1B in 2025) with FCF closely tracking earnings and strong operating cash coverage versus debt. Durable cash conversion supports buybacks, dividend growth, and tech investment without leaning on external financing, reducing refinancing risk.

Very conservatively levered balance sheet

Exceptionally low leverage and rising equity provide durable financial flexibility. Minimal debt burden lowers interest sensitivity and preserves capacity to fund M&A, repurchases and capital spending, enhancing resilience through market cycles and enabling disciplined capital returns.

Market leadership & product breadth via electronification

Tradeweb’s expanding market share in swaps, record volumes across asset classes, first-to-market electronic product launches, and strong ETF/EM growth underpin a durable competitive moat. Broad product mix and electronification increase client stickiness and recurring fee opportunity over time.

Negative Factors

Revenue growth deceleration

A marked slowdown in reported top-line growth to single-digit/low-single-digit rates signals potential saturation or sensitivity to trading conditions. Persistently slower growth could compress operating leverage over time and limit the company’s ability to expand margins at prior rates.

Fee-per‑million compression and mix shift

Ongoing downward pressure on average fees per million from product mix and pricing changes is structural for transaction-fee models. Sustained fee compression reduces revenue per unit of volume, requiring continual volume growth or cost efficiency to preserve long-term profitability.

Rising operating expenses and FX headwinds

Management expects mid-teens tech/occupancy growth and a notable step-up in adjusted expenses, while material FX losses already pressured G&A. Persistently higher operating costs and currency volatility can constrain incremental margin expansion and reduce the cash available for discretionary returns.

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, credit, money markets, and equities. It offers pre-trade data and analytics, trade execution, and trade processing, as well as post-trade data, analytics, and reporting services. The company provides flexible order and trading systems to institutional investors in 45 markets across 25 currencies. It also offers a range of electronic, voice, and hybrid platforms to approximately 300 dealers and financial institutions on electronic or hybrid markets with Dealerweb platform; and trading solutions for financial advisory firms and traders with Tradeweb Direct platform. The company serves a network of approximately 2,500 clients in the institutional, wholesale, and retail client sectors. Its customers include asset managers, hedge funds, insurance companies, central banks, banks and dealers, proprietary trading firms, retail brokerage and financial advisory firms, and regional dealers. Tradeweb Markets Inc. was founded in 1996 and is headquartered in New York, New York. Tradeweb Markets Inc. is a subsidiary of Refinitiv Parent Limited.

How the Company Makes Money

Tradeweb generates revenue primarily through transaction fees and subscription services. The company charges clients a fee based on the volume of trades executed on its platforms, which constitutes a significant portion of its revenue. Additionally, Tradeweb offers subscription-based access to its trading systems, providing clients with real-time data, analytics, and execution capabilities. Key revenue streams include fees from trading in fixed income products, derivatives, and equities. Partnerships with major financial institutions and investment firms enhance Tradeweb's market presence and contribute to its earnings by expanding its client base and increasing trading volumes on its platforms.

Tradeweb Markets Financial Statement Overview

Summary

Strong overall fundamentals: high and improving profitability (net margin ~39.6% in 2025), exceptionally low leverage (very low debt-to-equity), and standout cash generation (2025 free cash flow ~$1.13B with solid cash conversion). Primary watch item is the noted deceleration in 2025 revenue growth versus prior years.

Income Statement

Revenue has scaled materially from $0.89B (2020) to $2.05B (2025), showing a strong multi-year growth trajectory, although 2025 annual growth slowed to 2.9% versus much stronger growth in prior years. Profitability is a key strength: gross margin is consistently high (~62% to 66%) and net margin expanded meaningfully to ~39.6% in 2025 (vs ~29.1% in 2024). A watch item is some variability in operating profitability presentation (e.g., 2025 EBIT margin data appears inconsistent with EBIT/Revenue), but overall earnings power and margin profile look best-in-class for the group.

Balance Sheet

The balance sheet is very conservatively levered, with debt-to-equity remaining extremely low (roughly 0.5%–2.1% across the period), indicating ample financial flexibility. Equity has grown steadily (about $4.30B in 2020 to $6.51B in 2025), supporting a stronger capital base alongside asset growth. Return on equity improved to ~12.5% in 2025 (from ~3.9% in 2020), a positive efficiency trend; the main limitation is that returns, while improving, are not exceptionally high relative to the company’s strong margin profile.

Cash Flow

Cash generation is a standout: operating cash flow rose from $443M (2020) to $1.17B (2025) and free cash flow reached $1.13B in 2025, with 2025 free-cash-flow growth at ~10.8%. Free cash flow tracks net income closely (about 0.91–0.97x), indicating solid earnings quality and good cash conversion. Cash flow also comfortably supports debt levels, with strong operating cash flow relative to total debt (coverage improved to ~6.9x in 2025), reducing refinancing and liquidity risk.

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

• Technical Analysis Sentiment: Positive
• Last Price: 119.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 119.47 is above the 20-day moving average (MA) of 109.71, above the 50-day MA of 107.46, and below the 200-day MA of 120.68, indicating a neutral trend. The MACD of 3.41 indicates Negative momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 89.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TW.

Tradeweb Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW	78 Outperform	$27.56B	30.94	13.20%	0.45%	22.17%	40.13%
IBKR	78 Outperform	$33.36B	33.74	20.41%	0.46%	11.88%	28.96%
MKTX	70 Outperform	$6.55B	26.52	19.46%	1.66%	3.96%	-20.33%
RJF	70 Outperform	$31.76B	15.78	17.11%	1.26%	6.45%	5.85%
FUTU	70 Outperform	$21.22B	17.15	30.24%	―	81.43%	119.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JEF	59 Neutral	$11.13B	19.02	6.13%	2.52%	-5.41%	25.28%

Tradeweb Markets Corporate Events

Tradeweb Markets Authorizes New $500 Million Share Buyback

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 million still available under the older plan as of that date. The indefinite-term 2026 program, which may be executed via open-market purchases, privately negotiated transactions, accelerated repurchases and other mechanisms, gives Tradeweb broader flexibility to return capital to shareholders in line with market conditions and its financial performance, reinforcing management’s confidence following a year of record revenue, strong earnings growth and expanding trading volumes across its electronic platforms.

The most recent analyst rating on (TW) stock is a Hold with a $162.00 price target. To see the full list of analyst forecasts on Tradeweb Markets stock, see the TW Stock Forecast page.

Tradeweb Markets Amends Long-Term Market Data Agreements

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, revising several data schedules after a prior schedule terminated on October 31, 2024. Under the amended and restated data schedules, Tradeweb will continue to license certain fixed income and derivatives market data, including real-time feeds, to Refinitiv and its affiliates in exchange for a mix of fixed license fees and revenue-based fees, with an initial term running from November 1, 2025, through October 31, 2028, renewable for up to two additional two-year periods and featuring an optional 12‑month transition period to support orderly changes to data distribution arrangements, thereby reinforcing Tradeweb’s long-term data partnership with its controlling shareholder’s affiliates and securing a multi-year revenue framework from its market data business.

The most recent analyst rating on (TW) stock is a Hold with a $119.00 price target. To see the full list of analyst forecasts on Tradeweb Markets stock, see the TW Stock Forecast page.