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Tradeweb Markets (TW)
NASDAQ:TW
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Tradeweb Markets (TW) AI Stock Analysis

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TW

Tradeweb Markets

(NASDAQ:TW)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
$111.00
â–²(11.19% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong financial performance (high margins, strong free cash flow, and very low leverage) and a constructive earnings update showing growth and margin expansion despite higher investment spending. The main offset is weaker technical positioning with the stock trading below key moving averages, while valuation appears somewhat premium with a low dividend yield.
Positive Factors
High Profitability & Margins
Sustained high margins (TTM net margin ~40%) signal durable operating leverage in Tradeweb’s marketplace model. Strong margins reflect pricing power, low variable costs of an electronic venue, and the ability to fund investments while maintaining attractive profitability over the medium term.
Negative Factors
Elevated Expense Growth
Significant expense growth, notably technology and occupancy, raises the bar for future margin expansion. If revenue growth slows or investments take longer to monetize, sustained higher opex could compress incremental margins and delay payback on strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Sustained high margins (TTM net margin ~40%) signal durable operating leverage in Tradeweb’s marketplace model. Strong margins reflect pricing power, low variable costs of an electronic venue, and the ability to fund investments while maintaining attractive profitability over the medium term.
Read all positive factors

Tradeweb Markets (TW) vs. SPDR S&P 500 ETF (SPY)

Tradeweb Markets Business Overview & Revenue Model

Company Description
Tradeweb Markets Inc. is a global provider that develops and manages sophisticated electronic trading platforms across the Americas, Europe, the Middle East, Africa, and Asia Pacific. These digital venues facilitate transactions in a diverse array...
How the Company Makes Money
Tradeweb primarily makes money by charging transaction-based fees when clients execute trades on its electronic platforms. Fees are generally driven by trading volume and product mix and are assessed based on factors such as instrument type, execu...

Tradeweb Markets Earnings Call Summary

Earnings Call Date:Apr 29, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 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
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
Financial statements indicate high quality: strong profitability (TTM net margin ~40%), solid cash generation (TTM FCF ~$1.11B with strong conversion vs. net income), and very low leverage (TTM debt-to-equity ~0.02). Main watch items are the recent dip in free cash flow growth and the possibility that the latest unusually high TTM revenue growth may be partially non-recurring.
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.21B2.05B1.73B1.34B1.19B1.08B
Gross Profit1.50B1.38B1.13B877.91M756.36M669.19M
EBITDA1.52B1.43B978.68M681.10M617.82M542.88M
Net Income897.23M812.79M501.51M364.87M309.34M226.83M
Balance Sheet
Total Assets8.25B8.19B7.27B7.06B6.26B5.99B
Cash, Cash Equivalents and Short-Term Investments2.06B2.08B1.34B1.71B1.26B973.05M
Total Debt150.34M278.34M35.75M49.08M27.94M24.33M
Total Liabilities912.69M1.00B869.11M1.13B713.82M681.24M
Stockholders Equity6.63B6.51B5.80B5.37B4.95B4.65B
Cash Flow
Free Cash Flow1.05B1.13B856.78M684.33M572.73M526.67M
Operating Cash Flow1.14B1.17B897.74M746.09M632.82M578.02M
Investing Cash Flow-180.88M-126.53M-969.19M-132.76M-60.10M-259.11M
Financing Cash Flow-534.64M-307.48M-290.26M-168.17M-276.70M-136.10M

Tradeweb Markets Technical Analysis

Technical Analysis Sentiment
Negative
Last Price99.83
Price Trends
50DMA
100.14
Positive
100DMA
108.85
Negative
200DMA
108.92
Negative
Market Momentum
MACD
-0.36
Negative
RSI
49.89
Neutral
STOCH
43.99
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 99.83 is below the 20-day moving average (MA) of 100.34, below the 50-day MA of 100.14, and below the 200-day MA of 108.92, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 43.99 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$5.73B19.1224.78%2.64%3.68%42.71%
78
Outperform
$23.08B23.9313.78%0.52%14.04%60.95%
78
Outperform
$33.61B15.0524.51%1.25%7.75%12.12%
72
Outperform
$14.50B11.4426.62%2.62%52.73%52.01%
70
Outperform
$40.31B34.7820.51%0.36%16.12%31.49%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
60
Neutral
$12.70B14.728.51%2.86%29.74%35.56%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TW
Tradeweb Markets
100.50
-39.90
-28.42%
IBKR
Interactive Brokers
87.99
23.39
36.20%
JEF
Jefferies
54.60
-0.35
-0.64%
MKTX
Marketaxess Holdings
162.30
-43.31
-21.07%
RJF
Raymond James Financial
175.98
11.74
7.15%
FUTU
Futu Holdings
105.12
-43.47
-29.26%

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.Date of analysis: Jul 31, 2026