Tradeweb Markets Inc.

Good morning, and welcome to TradeWeb's fourth quarter 2025 earnings conference call. As a reminder, today's call is being recorded and will be available for playback. To begin, I will 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 our CEO, Billy Hult, who will review our business results and key growth initiatives. and our CFO, Sarah Ferber, who 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 with 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 fourth quarter earnings call. I am extremely proud of the TradeWeb team that helped produce the best revenue year and quarter in our history. crossing $2 billion in annual revenue for the first time. Our 2025 performance continues our seventh consecutive year as a public company, producing double-digit revenue growth and the 26th consecutive year of record annual revenues. As I look back at 2025, a few thoughts that come to mind are our clients' focus on data-driven tools for larger and more complex trades, the acceleration of automation, and the growing interconnectedness of global markets. As we look ahead, our ethos stays the same. Continue to put forth rigor and discipline to help drive more innovation across our expanding markets. Our clients are now operating with an increased level of integration and sophistication across our markets. We saw real traction in the extension of electronic trading into areas that had previously been mostly manual, from unclear swaps and swaptions to block trading and global credit. liquidity has become more interconnected across assets, regions, and time zones, essentially breaking down those historical silos that used to dominate our clients' workflows. At the same time, we have made significant strides alongside our key partners in moving digital assets from something built on a whiteboard to real advancement in market infrastructure and how our clients are thinking about trading and settlement. As we sit here at the intersection of TradFi and DeFi, we will continue to partner and invest across the digital asset landscape to deepen our network and drive more workflow efficiency solutions for our clients. Diving into the fourth quarter on slide four, despite tough comparisons, strong client activity, share gains, and a risk-on environment drove 12.5% year-over-year revenue growth on a reported basis. We continue to balance investing for growth and profitability as fourth quarter adjusted EBITDA margins expanded by 39 basis points relative to the fourth quarter of 2024. Turning to slide five, rates produced a record revenue quarter driven by continued organic growth across swaps, global government bonds, and mortgages. Credit growth was led by strength across European credit, munis, CDS, and emerging market credit. Money markets revenue growth was led by record quarterly revenues across global repos. ICD balances continued to recover post the tariff volatility and ICD revenues were up 11% relative to the third quarter 2025. Equity saw growth of almost 10% year over year, led by growth in global ETFs and equity derivatives. Other revenues grew over 90% year over year as our emerging digital asset initiatives continue to scale. Finally, Market data revenues were driven by growth in our recently renewed LSEG market data contract and proprietary data products. Turning to slide six, our record fourth quarter capped off a record revenue year in 2025. Record volumes across all asset classes translated into 19% annual revenue growth on a reported basis. The scale, generated by our strong top-line results, drove 64 basis points of adjusted EBITDA margin expansion, 19% adjusted EPS growth, and 32% free cash flow growth. As our growth initiatives continued to scale, we maintained our tradition of constant and focused investment. Broadly, we enhanced our existing product capabilities, added new clients, and forged new partnerships. On the capability front, we achieved many firsts. We completed the first ever fully electronic bilateral swaptions and U.S. multi-asset package trade across the swaps market. We launched the first electronic platform for Saudi royal bonds and Mexican repos, and we launched portfolio trading in the European government bond market. We expanded our offering to ICD clients, allowing them to buy treasury bills directly through the platform. Additionally, We enhanced our RFQ offering across U.S. credit and ETFs and rolled out our dealer algo solutions within U.S. Treasuries. Beyond our core markets, we've been very focused on the future, especially the digital asset space. We have partnered with numerous startups and thought leaders, and we completed the first ever on-chain U.S. Treasury repo transaction done over a weekend and the first ever on-chain auction for brokered CDs. We believe our investments in our core and frontier markets position us well for the future and will also help to make 2025 another banner year for TradeWeb. Moving to slide seven, 2025 continued the streak of robust revenue growth that we have worked hard to deliver for multiple years now. Specifically, while the majority of our revenues still come from rates, 42% of our annual revenue growth came from our other businesses in 2025. In fact, since the IPO, almost 50% of our revenue growth has come from non-rates businesses, with 45% of that growth from our rapidly expanding international business, which grew at 20% CAGR over the same period. Our European business continues to anchor our international presence, but our Asia-Pacific product suite continues to scale. In 2025, our Asian client revenues grew over 35% and European client revenues grew over 25%. Strong momentum across Europe and Asia comes from connecting a global client base to local international markets. Relentless innovation has been critical to our success. Throughout our history, we have prioritized being first to market, which requires constant investment. In the last five years, we've invested over 600 million in technology to help shape the future of electronic markets, growing these investments at an average of 16% since 2020. As our investments bear fruit, adjusted EBITDA margins have expanded consistently. Turning to slide eight, this quarter saw yet another meaningful decline in intraday volatility from the elevated levels seen in prior periods, specifically, Volatility was down 27% year over year and 15% quarter over quarter. Despite the lowest intraday volatility that we have seen in the last four years, our U.S. Treasury revenues increased modestly by 1% year over year as continued strength in our institutional channel was offset by weaker retail trends. Our quarterly market share increased sequentially, with December market share reaching the highest levels since February of 2025. As we look forward, We are optimistic on a reacceleration in U.S. Treasury business as we penetrate additional parts of the voice market coupled with continued strong government debt issuance and normalization in rate volatility. Our competitive position remains strong on a relative basis. We exceeded 50% for the seventh consecutive quarter in electronic institutional U.S. Treasuries versus our main electronic competitor. Turning to wholesale U.S. Treasuries, revenues were flat, mainly driven by lower volumes across our wholesale streaming protocol, partially offset by growth across our sessions protocol. Wholesale remains a strategic priority as we focus on onboarding additional liquidity providers and strengthening our liquidity pools in support of our multi-protocol holistic platform strategy. In equities, ETFs posted strong double-digit revenue growth as we continue to deepen integration with our clients. During the quarter, we continue to leverage client workflow connectivity by delivering a more automated ETF trading solution in partnership with ION. Our AIX automation solution has been a key differentiator with our ETF clients, with average daily trades increasing over 70% year over year. While AIX is deeply penetrated across European ETFs, we continue to see strong adoption across U.S. ETFs with AIX average daily trades up 28% quarter over quarter. Our efforts to broaden our equity presence beyond our flagship ETF franchise continue to pay off with record institutional equity derivative revenues up 18% year over year. Looking ahead, the pipeline remains strong as the benefits of our electronic solutions continue to resonate with our clients. We believe we are well positioned to capitalize on the long-term secular ETF growth story, not just in equities, but across our fixed income business. Turning to slide nine for a closer look at credit, low single-digit revenue growth for the quarter was driven by strong double-digit revenue growth across European credit, municipal bonds, credit derivatives, China bonds, and EM credit, which more than offset weakness in U.S. credit, where revenues fell year over year mainly due to retail corporate credit revenues that were down nearly 30% year over year, primarily reflecting the better relative yields our clients were getting across money markets and . U.S. credit remains a key growth initiative. We are focused on maintaining our leadership position and are pioneering portfolio and session trading protocols and increasing our block market share. Perhaps most importantly, we continue to increase our RFQ share, which we expect to be the number one driver of revenue growth in U.S. credit going forward. Our deepening liquidity pool and continuously improving client experience is resonating as we attract more clients and experienced talent across the board. Our efforts to expand into RFQ are seeing early signs of success with our RFQ share of overall trace achieving a new quarterly record. Institutional RFQ average daily volume grew over 10% year over year with growth across both IG and high yield. We also saw continued block share growth in fully electronic U.S. investment grade and U.S. high yield of over 130 basis points and 65 basis points respectively. This growth was broad-based, driven by continued adoption of our portfolio trading, RFQ, and sessions protocols. More broadly, we saw active user growth of 18% year-over-year during the quarter as we continue to strengthen our U.S. credit client network. Portfolio trading average daily volume also increased 10% year-over-year, with over 20% growth across international PTs. 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 over 14% year over year. our all-to-all average daily volume grew over 45% year-over-year, while our sessions average daily volume rose by nearly 10% year-over-year. The team remains focused on expanding our network and increasing the number of responders on the All Trade platform. In the fourth quarter, we saw the fourth highest level of ETF market maker participation ever across our institutional credit business. 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 25% year-over-year in the fourth quarter, signaling strong momentum. Moving to slide 10, 2025 represents the 20th anniversary of our electronic interest rate swaps platform. Back in 2005, electronic swaps trading was still an emerging idea. Two decades later, it has become an ecosystem defined by transparency, efficiency, and ongoing innovation. Our leading position in the swaps market has been built upon two decades of helping to shape global regulations, maintaining a regulated global footprint, cultivating a deep client ecosystem and expanding a broad suite of adjacent global rates products. Global swaps delivered record quarterly revenues up over 25% year over year, driven by a combination of strong client engagement across our global suite of currencies that drove strong risk trading growth and a 7% increase in weighted average duration. Our quarterly core risk market share, which drives revenues, and exclude compression trading was a record, rising over 70 basis points year over year. Total market share increased from 20.8% in the fourth quarter of 2024 to 23.3% in the fourth quarter of 2025 due to a combination of strong risk and compression volume growth. During the quarter, we achieved the highest share in our history across Euro, other G11, and EM-denominated currencies. The fourth quarter performance was driven by record revenues across Europe, APAC, and emerging market swaps, while we produced double-digit revenue growth across dollar swaps. We continue to make progress across emerging market swaps and our rapidly growing RFM protocol. In EMIRS, structural challenges like geographic dispersion, pricing opacity, and operational inefficiencies have historically made voice trading than norm. We're helping to drive more discreet, transparent, and efficient execution, especially through innovations like RFM and AIX. Our fourth 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. Our RFM protocol, which is seeing strong adoption across currencies, also saw average daily volume grow more than 90% year-over-year, with further adoption picking up. Looking ahead, we continue to believe the long-term growth potential for swaps remains significant. On a DV01 basis, electronification has continued to increase, with 2025 DV01-based electronification up more than 90 basis points year-over-year and growing at an average rate of over 150 basis points annually since 2020, as dealers and clients move a greater share of their workflows electronically. That progress is evident in the performance of our swaps business, which has continued to deliver strong revenue growth in the fourth quarter. On a notional basis, the cleared swaps market remains approximately 30% electronic, and we see significant opportunity to continue digitizing workflows alongside our clients. In collaboration with them, we expect to drive further workflow innovation in 2026 across both cleared and bilateral swaps markets. And with that, let me turn it over to Sarah to discuss our financials in more detail.