Tradeweb Markets Inc.

Good morning, and welcome to TradeWeb's second quarter 2025 earnings conference call. As a reminder, today's call is being recorded and will be available for playback. To begin, I'll turn the call over to Head of Treasury, FP&A, and Investor Relations, Ashley Sorrell. Please go ahead.

Thank you, and good morning. Joining me today for the call are CEO Billy Hult, who will review our business results and key growth initiatives, And our CFO, Sarah Ferber, will review our financial results. We intend to use the website as a means of disclosing material, nonpublic information, and complying with our disclosure obligations under Regulation FD. I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations, and as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements related to, among other things, our guidance are forward-looking statements. Actual results may differ materially from these forward-looking statements. Information concerning factors that could cause actual results to differ from forward-looking statements is contained in our earnings release, earnings presentation, and periodic reports filed at the SEC. In addition, on today's call, we will reference certain non-GAAP measures, as well as certain market and industry data. Information regarding these non-GAAP measures, including reconciliations to GAAP measures, is in our earnings release and earnings presentation. Information regarding market and industry data, including sources, is in our earnings presentation. Now let me turn the call over to Billy.

Thanks, Ashley. Good morning, everyone, and thank you for joining our second quarter earnings call. We set a new high watermark for quarterly revenues once again, surpassing the record we set in the first quarter of 2025. This strong momentum propelled revenues to exceed $1 billion in the first half of the year, and we expect 2025 to shape up to produce another year of double-digit revenue growth. From tariff wars to detente, a rapidly evolving rates and equity market backdrop, a slowing housing market, and stubbornly high inflation, global debate and strong client engagement was on display across our platform. We believe the movement from the phone to the keyboard is a one-way train. As we have seen in the past, extreme volatility creates temporary moments, as we saw in April, where our clients still can go back to the phone. Despite these moments, our electronic journey continued, and we achieved record volumes in many of our asset classes this quarter, which bodes well for future market share growth. Our clients are becoming increasingly sophisticated around the search for liquidity, and our dealer and non-bank liquidity providers continue to invest to provide two-way markets, even in the most volatile conditions. While bid-ask spreads widened, the liquidity crunch we experienced this quarter was only a fraction of what we witnessed in March 2020. Encouragingly, unlike previous volatility periods, our clients leaned into newer innovations like AIX and portfolio trading. Momentum builds momentum, and we continue to be laser focused on the areas we can control, putting our clients first, investing in new solutions for paper and voice markets, and strategically planting more flags across early stage ventures. Diving into the second quarter, strong client activity and risk on environment drove 26.7% year-over-year revenue growth on a reported basis. our international business continues to set new records with 41% revenue growth as our strategic initiatives in EM and APAC continue to pay off. We continue to balance investing for growth and profitability as adjusted EBITDA margins expanded by 70 basis points relative to the second quarter of 2024. Turning to slide five, Our rates business produced a record revenue quarter driven by continued organic growth across swaps, global government bonds, and mortgages. Record credit revenues were led by the strength across global corporate bonds, munis, and credit derivatives. Money markets revenue growth was led by the addition of ICD and aided by record quarterly revenues across global repos. While the ICD business has continued to see strong new client growth in the first half of the year, the business was negatively impacted by the recent market volatility as some large clients drew down their money market fund balances during the quarter to tactically buy back shares in the market and increase spend ahead of the potentially higher global tariffs. equities posted record results up 50% year over year, led by growth in our global ETF and equity derivatives business. Finally, market data revenues were driven by growth in our proprietary data products. Turning to slide six, I will provide a brief update on two of our focus areas, U.S. Treasuries and ETFs, and then I will dig deeper into U.S. credit and global interest rate swaps. Starting with U.S. Treasuries, The quarter started out with the U.S. Treasury markets experiencing one of the most significant periods of volatility in years. Ten-year U.S. Treasury yields moved nearly 50 basis points between April 4th and April 11th, the fourth largest five-day move in yields since the financial crisis. All in, revenues were up 11% year over year, with our institutional business climbing to new highs. Stepping back, We saw a tale of two cities unfold. Automation remained resilient, while voice activity increased temporarily. Specifically, institutional US Treasury AIX average daily trades were stable year over year. On the other hand, our second quarter market share of 22% declined year over year, driven by an industry-wide mixed shift towards mainly voice-centric basis and swap spread trades. These are two areas of the market where we continue to invest, and while behavior change takes time, we believe we are well positioned to build solutions to these complex workflows, particularly now with our connection to the futures market through rate fence. On a relative basis, we continue to exceed 50% market share in institutional US treasuries versus our main electronic competitor in rates for the fifth consecutive quarter. Turning to our U.S. Treasury wholesale business, we delivered another record revenue quarter. This was driven by record adoption of our streaming protocol and growing adoption of our sessions and rate fin solutions. Wholesale continues to be a strategic priority as we focus on expanding our network of liquidity providers and strengthening our liquidity pools in alignment with our multi-protocol platform strategy. In equities, Our ETF business generated record revenues as market volatility drove frequent rebalancing and risk management and as we continue to deepen integration with our clients. Our efforts to broaden our equity presence beyond our flagship ETF franchise continue to pay off with record institutional equity derivatives revenue of 30% year over year. Looking ahead, we're continuing to make inroads by onboarding new clients and the pipeline remains strong as the benefits of our electronic solutions continue to resonate with a key differentiator being our AIX solution. Despite the extreme volatility experienced during the quarter, our clients strongly relied on AIX across ETFs, with average daily trades increasing over 125% year over year. Turning to slide seven for a closer look at credit, Double digit revenue growth for the quarter was driven by strong double digit revenue growth in both credit derivatives and municipal bonds. Global corporate credit delivered mid single digit revenue growth due to product and volume mix as retail corporate credit revenues were down 17% year over year, primarily reflecting the better relative yields our clients are getting across money markets and munis. Overall, Automation continues to resonate with Global Credit AIX average daily trades, increasing over 15% year over year. We achieved a record block share in fully electronic U.S. investment grade and U.S. high yield at 9% and 5% respectively. This growth was driven by continued adoption of our portfolio trading, RFQ, and sessions protocols. Our institutional U.S. credit business continued to scale with revenues up 15% year-over-year as clients leveraged our diverse suite of trading solutions. Institutional RFQ average daily volume grew over 35% year-over-year, with strong double-digit growth in both IG and high yield. Our efforts to expand into RFQ are seeing early signs of success. with our RFQ share of overall trace achieving a new quarterly record. Portfolio trading average daily volume also increased 15% year-over-year with record volumes across high yield and our second highest across IG. Portfolio trading has become a widely used, reliable method for executing trades and managing risk, particularly during periods of market volatility. As the market continues to evolve, we expect adoption to expand as it further embeds itself as an essential part of credit traders' toolkits. All trade had a strong quarter with over $200 billion in volume, with average daily volume up almost 10% year-over-year. Our all-to-all average daily volume grew over 50% year-over-year, while our dealer RFQ average daily volume rose by nearly 20% year-over-year. The team remains focused on expanding our network and increasing the number of responders on the All Trade platform. In the second quarter, we achieved record ETF market maker participation across our institutional credit business. Looking ahead, U.S. credit remains a key area of focus. We believe there's still a long runway for growth with plenty of opportunity to innovate alongside both buy side and dealer clients. Despite the success to date, we believe we can continue to deepen our penetration across RFQ and further enhance our portfolio trading and session offerings. Core to our strategy is attacking more parts of the block market through our differentiated liquidity, proprietary data, and unique liquidity pools, coupled with continued expansion of our product and sales teams. Beyond U.S. credit, we're continuing to prioritize our emerging markets credit expansion efforts. We continue to broaden out our liquidity provider set across key markets, work with our OMS partners on key integrations, and expand the functionality around key differentiators, such as asset swaps. While still early in the journey, EM credit revenues grew nearly 40% year over year in the second quarter, signaling strong momentum. Moving to slide eight, Global swaps delivered record revenues driven by a combination of strong client engagement in response to a dynamic macro backdrop, a favorable mixed shift towards risk trading, and a 4% increase in weighted average duration. Altogether, global swaps revenues grew over 45% year over year. Our core risk market share, which excludes compression trading, was a record, rising 240 basis points year over year. Total market share declined from 23.6% in the second quarter of 24 to 22.6% in the second quarter of 25, largely due to a significant reduction in US and European client-related compression volumes, which carry much lower fee rates. During the quarter, we achieved the highest share in our history across other G11 and our second highest share across EM-denominated currencies. The second quarter highlighted the continued global expansion of our swaps business in terms of both geographic reach and broader client engagement. International swaps achieved record revenues growing over 55% year over year with record EM and APAC revenues. Our strong performance was supported by a 13% year over year increase in global active users. As our global footprint continues to expand, We're not just adding new clients, but enhancing the value of the platform for the broader client base, with the average number of currencies traded per client almost doubling over the past five years. Finally, we continue to make progress across emerging market swaps and our rapidly growing RFM protocol. Our second quarter EM swaps revenue produced another strong growth quarter, and we believe there's still significant room to grow given the low levels of electronification. This quarter, we launched Malaysian swaps and executed the first click to trade in Brazilian swaps as we continue to broaden our offering. Our RFM protocol also saw average daily volume more than double year over year with adoption picking up. Looking ahead, We continue to believe the long-term growth potential for swaps remains significant. Recent market volatility and macro uncertainty have only reinforced the value of electronic trading and the strength of our network globally. With just 30% of the cleared swaps market currently electronified, there is substantial runway to digitize workflows alongside our clients. As the global swaps landscape grows, we are focused on continuing to lead with innovation across the cleared market and making inroads into the uncleared swaps market in partnership with our clients. And with that, let me turn it over to Sarah to discuss our financials in more detail.