Tradeweb Markets (TW)
NASDAQ:TW
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Tradeweb Markets
(NASDAQ:TW)
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Rating:81Outperform
Price Target:
$128.00
▲(8.16% Upside)
Action:Reiterated
Date:05/21/26
Score is driven primarily by excellent financial quality (high margins, strong cash generation, minimal leverage) and a constructive earnings call highlighting record revenue and margin expansion. These positives are tempered by weaker technical momentum, a relatively high P/E with a low dividend yield, and near-term cost/investment pressure that could mute incremental margin gains.
Positive Factors
Conservative balance sheet
Extremely low leverage and a steadily growing equity base provide durable financial flexibility. Minimal debt reduces refinancing and solvency risk, enabling the firm to fund strategic investments, buybacks, and dividends from internal resources over the next several quarters without stressing liquidity.
Negative Factors
Elevated expense growth from investments
Rapidly rising operating costs driven by technology, occupancy and staffing investments will compress near-term margin expansion. While investments aim to grow future revenue, they may mute incremental margins over the next several quarters and increase execution risk if revenue growth slows.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a steadily growing equity base provide durable financial flexibility. Minimal debt reduces refinancing and solvency risk, enabling the firm to fund strategic investments, buybacks, and dividends from internal resources over the next several quarters without stressing liquidity.
Read all positive factors
Tradeweb Markets (TW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.19B
Dividend Yield0.45%
Average Volume (3M)1.45M
Price to Earnings (P/E)30.5
Beta (1Y)0.37
Revenue Growth18.26%
EPS Growth66.10%
CountryUS
Employees1,412
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)4.07
Shares Outstanding116,035,960
10 Day Avg. Volume1,407,201
30 Day Avg. Volume1,447,089
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 Cap0.82
Enterprise Value/Revenue9.59
Enterprise Value/Gross Profit14.11
Enterprise Value/Ebitda13.76
Forecast
1Y Price Target
$133.50Price Target Upside12.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)4.05
Revenue Forecast (FY)$2.35B
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported a record quarter with strong, broad-based revenue growth across swaps, ETFs, rates, credit and money markets, meaningful international momentum, expanded adjusted EBITDA margins, strong cash generation and continued shareholder returns. Key near-term headwinds include elevated expense growth (including FX and occupancy), variability from digital asset mark-to-market items, some retail/wholesale channel softness, and timing-related Market Data revenue effects. Management reiterated investment for growth while guiding expenses toward the top half of the prior range and expecting margin expansion, indicating confidence in durable long-term growth despite near-term variability.Positive Updates
Record Quarterly Revenue
Tradeweb delivered record revenues of $618 million in Q1 2026, up 21.2% year-over-year on a reported basis and 17.5% on a constant currency basis; first time surpassing $600 million in a quarter.
Negative Updates
Expense Growth and FX Headwinds
Adjusted expenses increased 20.2% on a reported basis (15.3% constant currency). Notable cost increases included technology & communications (+37.7%), occupancy (+61.5%), and adjusted G&A (+85.2%) driven by an $8.1 million unfavorable FX movement; headcount rose 11.4% year-over-year.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Tradeweb delivered record revenues of $618 million in Q1 2026, up 21.2% year-over-year on a reported basis and 17.5% on a constant currency basis; first time surpassing $600 million in a quarter.
Read all positive updates
Company Guidance
Tradeweb guided 2026 adjusted expenses to trend toward the top half of its initial $1.10–$1.16 billion range while still expecting adjusted EBITDA and operating margin expansion versus 2025 (though incremental margin improvement may be more muted as it continues to invest in Credit, Rates, international markets, ICD, digital assets and technology); Q1 adjusted EBITDA margin was 55%, up 101 bps versus 2025. The company ended Q1 with approximately $1.9 billion of cash and cash equivalents, trailing‑12‑month free cash flow exceeding $1 billion (up ~31% YoY), holds $1.6 billion of Canton coins (fair value ≈ $243 million), declared a $0.14 quarterly dividend (+17% YoY), repurchased ~483k shares for $51 million and has ~$523 million of repurchase authority remaining, and expects Other revenues in 2026 to be roughly in line with 2025.Tradeweb Markets Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16B | 2.05B | 1.73B | 1.34B | 1.19B | 1.08B |
| Gross Profit | 1.47B | 1.38B | 1.13B | 877.91M | 756.36M | 669.19M |
| EBITDA | 1.51B | 1.43B | 978.68M | 681.10M | 617.82M | 542.88M |
| Net Income | 869.69M | 812.79M | 501.51M | 364.87M | 309.34M | 226.83M |
Balance Sheet | ||||||
| Total Assets | 8.30B | 8.19B | 7.27B | 7.06B | 6.26B | 5.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 2.08B | 1.34B | 1.71B | 1.26B | 973.05M |
| Total Debt | 142.83M | 278.34M | 35.75M | 49.08M | 27.94M | 24.33M |
| Total Liabilities | 986.11M | 1.00B | 869.11M | 1.13B | 713.82M | 681.24M |
| Stockholders Equity | 6.62B | 6.51B | 5.80B | 5.37B | 4.95B | 4.65B |
Cash Flow | ||||||
| Free Cash Flow | 1.15B | 1.13B | 856.78M | 684.33M | 572.73M | 526.67M |
| Operating Cash Flow | 1.21B | 1.17B | 897.74M | 746.09M | 632.82M | 578.02M |
| Investing Cash Flow | -189.02M | -126.53M | -969.19M | -132.76M | -60.10M | -259.11M |
| Financing Cash Flow | -396.59M | -307.48M | -290.26M | -168.17M | -276.70M | -136.10M |
Tradeweb Markets Technical Analysis
Negative
118.34
Price Trends
117.00
Negative
114.42
Negative
113.73
Negative
Market Momentum
-2.40
Positive
34.38
Neutral
32.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW, the sentiment is Negative. The current price of 118.34 is above the 20-day moving average (MA) of 110.85, above the 50-day MA of 117.00, and above the 200-day MA of 113.73, indicating a bearish trend. The MACD of -2.40 indicates Positive momentum. The RSI at 34.38 is Neutral, neither overbought nor oversold. The STOCH value of 32.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $25.19B | 30.48 | 13.64% | 0.45% | 18.26% | 66.10% | |
80 Outperform | $17.49B | 13.13 | 32.39% | ― | 68.18% | 106.47% | |
77 Outperform | $37.33B | 27.97 | 19.89% | 0.46% | 12.92% | 28.20% | |
73 Outperform | $4.90B | 18.69 | 24.27% | 1.66% | 7.85% | 46.95% | |
71 Outperform | $29.64B | 13.05 | 17.21% | 1.26% | 5.83% | 1.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
53 Neutral | $10.55B | 13.64 | 7.08% | 2.52% | 1.91% | 2.34% |
* Financial Sector Average
TW
Tradeweb Markets
105.69
-37.82
-26.35%
IBKR
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83.83
32.41
63.04%
JEF
Jefferies
52.45
4.96
10.45%
MKTX
Marketaxess Holdings
136.25
-76.22
-35.87%
RJF
Raymond James Financial
150.42
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4.07%
FUTU
Futu Holdings
123.86
14.15
12.89%
Tradeweb Markets Corporate Events
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Tradeweb Stockholders Approve Governance and Legal Amendments
Positive
May 20, 2026
At its May 19, 2026 annual meeting, Tradeweb Markets stockholders approved amendments to the company’s certificate of incorporation that expand exculpation protections to certain officers in limited circumstances and introduce a federal foru...
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.