Tradeweb Markets Inc.

Good morning, and welcome to TradeWeb's second quarter 2026 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 our CEO, Billy Hult, who will review our business results and key growth initiatives. and our CFO, Sara Furber, who will review our financial results. We intend to use the website as a means of disclosing material, non-public 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, and thank you for joining our second quarter earnings call. We delivered another outstanding quarter, generating the second highest quarterly revenue in our history and building on the record performance We achieved last quarter. Through the first half of the year, we've generated nearly $1.2 billion of revenue, almost matching what we delivered in all of 2022. Just as importantly, our growth accelerated as the quarter progressed, with June revenue increasing more than 20% year over year. Unlike prior periods, this performance wasn't driven by a single episode of elevated market volatility. It reflects something more durable, deeper client engagement, broader adoption of electronic trading across our markets and the benefits of investments we have made over many years in technology, workflows and connectivity to capitalize on structural opportunities. The backdrop of our business remains constructive. Even as the macro environment continues to be debated, clients are navigating a world shaped by changing interest rate expectations, persistent fiscal deficits, geopolitical developments, elections, regulation, and rapid technological innovation. Primary issuance remained healthy across the US, Asia, Australia, the Middle East, and South America, while Europe is showing encouraging signs of renewed activity. At the same time, there remains considerable uncertainty around the path of monetary policy, the global economy, and increasingly, the role that artificial intelligence will play across industries. Markets continue to process these questions, and that ongoing debate is exactly what creates opportunity for our clients to manage risk, reposition portfolios, and access liquidity through our global network. Looking ahead, We believe the future of trade will continue to be defined by evolution rather than disruption. Our leadership positions across multiple asset classes provide a unique foundation to embed greater intelligence across the trade lifecycle. We believe AI automation and data will accelerate the continued electronification of financial markets by helping clients discover liquidity more effectively. Make better decisions and operate with greater efficiency. Data is becoming increasingly valuable, not simply as an input into algorithms, but as the foundation for better insights before, during, and after every trade. We are continuing to invest across analytics, execution, and post-trade workflows while exploring new opportunities at the intersection of traditional finance, emerging technologies, and evolving market structure. Regardless of how markets evolve, our objective remains unchanged. We are focused on helping clients navigate increasingly complex markets with technology that simplifies workflows, enhances decision-making, and delivers better outcomes. Diving into the second quarter, strong client activity and a risk-on environment drove 9% year-over-year revenue growth on a reported basis. Our international revenues continue to scale higher with 14% revenue growth as our strategic initiatives across Europe, APAC, and EM continued to pay off. International really continued to fire on all cylinders for us this quarter, contributing 65% of our overall revenue growth. And importantly, that strength was broad-based as we saw growth across all four asset classes from our international clients. We continue to balance investing for growth and profitability as adjusted EBITDA margins expanded by 24 basis points relative to the second quarter of 2025. Turning to slide five, we produced the second highest quarterly revenues in our history across rates, credit, and equities and market data. Our rates revenues were driven by continued organic growth across swaps, global government bonds, and mortgages. Credit revenues were led by strength across global corporate bonds and credit derivatives. Money markets revenue growth was led by global repos and ICD. Equities were led by growth in global ETFs and equity derivatives. Finally, market data revenues were up over 20% year over year, driven by our LSEG market data contract and proprietary data products. Turning to slide six, I will provide a brief update on a few of our focus areas, US Treasuries and ETFs, and then I will dig deeper into US credit and Global Interest Rate Swaps. Starting with U.S. Treasuries, following the pickup in average intraday volatility in March, market conditions began to moderate in the second quarter, with volatility down 20% from March levels. Even in a more measured trading environment, we continued to outperform. Our second quarter market share increased to 22.5%, up 100 basis points year over year. leading to mid single-digit revenue growth that outpaced overall industry volume growth by roughly 300 basis points. Looking ahead, we remain constructive on the long-term opportunity. Structural tailwinds continue to strengthen from sustained government debt issuance to the steady electronification of trading workflows. As clients increasingly migrate from voice to electronic execution across both our institutional and wholesale channels, we believe TradeWeb is exceptionally well positioned to capture that growth. Institutional U.S. Treasuries were once again a standout performer, with revenues increasing nearly 15% year-over-year, reflecting deeper client engagement and continued adoption of electronic workflows. Our competitive position remains strong. We surpassed 50% share in electronic institutional US Treasuries for the 9th consecutive quarter and further widened our lead during the period. Our strategy is straightforward. First, we look to continue to win wallet share from clients trading electronically by demonstrating the value of our workflow, data, and automation capabilities with AIX serving as a key differentiator. We are expanding our electronic addressable markets by bringing historically voice-based trading activity onto our platform. We're particularly encouraged by the momentum we are seeing in basis and multi-leg trades, two large and strategically important workflows that have traditionally remained predominantly voice-driven. Combined, average daily volume across these initiatives grew in excess of 40% year-over-year in the second quarter, and with a strong pipeline of clients and dealers, we believe momentum will continue to compound over time. Our wholesale U.S. Treasuries saw revenues decline 1% as strength across our sweep protocol was more than offset by softness in our wholesale streaming offering. While competition remains intense, wholesale continues to remain a strategic priority for us. We believe our opportunity extends well beyond competing on price alone. By broadening our execution capabilities, introducing new protocols, expanding our liquidity network, and deepening client relationships, we are building a more differentiated platform that we believe positions us well for long-term share gains. Turning to equities, We continue to see clients embrace more automated trading workflows as they seek to improve execution quality, efficiency, and consistency. As ETFs become an increasingly important vehicle for portfolio construction and risk transfer, institutional investors are looking for solutions that can seamlessly combine liquidity, automation, and intelligent execution across a broad range of market conditions. We believe that continues to be a meaningful opportunity for TradeWeb. Against that backdrop, ETFs posted revenue growth in excess of 10% year over year, despite a normalization in market volatility. Client engagement continues to increase, and our AIX automation solution continues to be a key differentiator. AIX average daily trades were up over 45% year over year, with triple digit growth in US ETFs and double digit growth in European ETFs. Our efforts to broaden our equity presence beyond our flagship ETF franchise continue to pay off with record institutional equity derivative revenues of 20% 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 only directly within our equity offering, but also beyond it as ETFs change behavior indirectly across our fixed income business. We believe this differentiated position will become increasingly valuable over time. Turning to global credit on slide seven, the business delivered low single-digit revenue growth during the quarter. That performance reflected continued strength across many of our strategic growth areas, including strong double-digit growth in international credit and U.S. institutional credit. Strength here was offset by weakness across municipal bonds and our retail credit channel, where revenues were down 22% year over year, primarily reflecting better relative yields available in other products. We continue to believe US credit represents one of our most significant long-term growth opportunities. While portfolio trading and sessions remain important differentiators, we see considerable runway to expand our RFQ presence as a larger share of institutional credit trading migrates to electronic execution. As adoption continues to broaden across the market, we think our competitive advantage is increasingly being defined by workflow, data, and automation rather than connectivity alone. Clients today are looking for technology that helps them source liquidity intelligently, minimize information leakage, and achieve better execution outcomes. That is exactly where we continue to invest. During the quarter, we continue to enhance Snap+, which leverages predictive analytics and proprietary trading data to help clients identify the most appropriate liquidity providers for each trade. We also introduced Terra, our AI-powered trading assistant, which combines trade web proprietary data, liquidity insights, and artificial intelligence to help clients quickly transform market information into actionable trading intelligence. This is a step change improvement from navigating multiple screens and manual workflows. Early feedback has been very encouraging and we expect Terra's capabilities to continue expanding as we incorporate client feedback and further embed AI across our platform. Our position within block trading also continued to strengthen, with record overall U.S. credit block share up over 115 basis points year-over-year in the second quarter, with block average daily volume growth of over 30% year-over-year across IG and high yield. Growth was broad-based across portfolio trading, RFQ and sessions, demonstrating the value of our multi-protocol approach. Just as importantly, Our efforts to expand into RFQ are seeing continued signs of success, reaching another quarterly market share record, reinforcing the progress we're making in one of the largest opportunities within electronic credit. Specifically, institutional RFQ average daily volume grew 15% year over year with double digit growth in both IG and high yield. Portfolio trading also delivered another record quarter with average daily volume increasing more than 30% year-over-year with strong double-digit growth across both U.S. and international portfolio trading. Meanwhile, all trade generated the second best quarter in our history with over $225 billion in volume, with average daily volume up over 13% year-over-year. Our all-to-all average daily volume grew over 25% year-over-year, and our DRFQ average daily volume grew nearly 30% year-over-year. We also continue to expand network participation, driving record responder rates and high yield as we broaden liquidity across the platform. Looking ahead, we remain confident in the long-term outlook for global credit. Electronic trading continues to evolve beyond simply digitizing execution. Clients increasingly expect intelligent workflows that seamlessly combine liquidity, data, analytics, and automation. We believe TradeWeb is uniquely positioned to deliver that integrated experience across protocols, products, and regions. We are seeing that opportunity play out across our business. During the quarter, we launched electronic spread trading across European credit, further expanding our workflow offering in a differentiated fashion. We are also seeing strong momentum in EM credit where revenues grew 20% year-over-year in the second quarter. While electronification and EM credit remains in its early stages, we continue to build on our established global network and broad EM product suite to support growing client adoption. Together, we believe these initiatives position us well to capture the increased adoption of electronic trading and credit. Moving to slide eight, Global swaps delivered its second highest quarterly revenues, up 13% year over year. The performance was driven by a combination of strong client engagement across our global suite of currencies. Just as importantly, our core risk market share, which excludes compression activity and is the best indicator of our underlying franchise, reached another record, rising 207 basis points year over year. Total market share moved from 22.5% in the second quarter 25 to 24.1% in the second quarter 26. One of the strengths of swaps is its diversification. While it's often viewed as a monolithic product, it is really a collection of different currencies, instruments, and protocols, each responding to its own macro and client dynamics. This quarter was a case in point. As central banks around the world, including the Federal Reserve, the ECB, and Bank of Japan, turned hawkish and reshaped monetary policy expectations, clients remained highly engaged in managing interest rate risk. Emerging markets extended their momentum, while our developed market franchise also stayed active, contributing to our second highest quarterly revenues overall. Taking a step back, the long-term picture has been one of steady structural growth. Over the past decade, the swaps market has expanded along two important dimensions. First, the amount of risk outstanding as measured by open interest has roughly doubled to our record. Second, that risk changes hands approximately twice as frequently as it did 10 years ago. Together, These two trends have compounded into roughly 14% average annual growth in swap volumes over the past decade. Looking ahead, we believe those structural trends remain firmly in place. As governments and corporations continue to issue debt, the stock of outstanding risk should continue to grow. And with only around 30% of the swaps market trading electronically today, there is substantial room for growth as we look ahead. TradeWeb has steadily gained share in the global swaps market. Over the past 10 years, our swaps revenue has grown by more than 20% annually as we have expanded across emerging market swaps, strengthened our developed market franchise, and continue to innovate across both the cleared and bilateral swaps market. Our RFM protocol continues to gain traction, and we're investing across automation, workflow, and execution tools to help clients trade more intelligently and efficiently. Taken together, we believe Global Swaps remains one of our largest, diversified and most durable long-term growth opportunities across our business. Turning to slide 10, technology is helping to make financial markets more connected, more intelligent and more automated than at any point in their history. If there is a single thread running through our franchise, it is that our clients are increasingly relying on technology to make better decisions and execute with greater speed, We believe that trend is still in its early innings. Our best example of that evolution is AIX, our Intelligent Automation Platform. Since launching AIX in 2012, automated trading activity has grown meaningfully, and today, 45% of all institutional trades executed on TradeWeb flow through AIX. Adoption continues to broaden across regions and products, particularly in markets that historically have been less automated. What's exciting is that we believe automation itself is evolving. Historically, automation has been rules-based. Clients define the parameters. The AIX executes those instructions with consistency and precision. More recently, we've introduced dynamic capabilities that adapt to changing market conditions in real time while remaining within those client-defined guardrails. The next chapter is even more compelling. We see AI moving beyond simply automating workflows to augmenting judgment. Rather than just executing predefined instructions, we believe AI has the potential to help clients answer increasingly complex questions. When is the optimal moment to trade? Which protocol is most likely to achieve the best outcome? How many dealers should participate? How should a portfolio be sequenced across products and markets? These are decisions that have traditionally relied on years of human experience, but increasingly can be informed by data, context, and machine intelligence. This is where TradeWeb's competitive advantage becomes even more powerful. Every day, our network connects thousands of institutional participants across rates, credit, mortgages, ETFs, money markets, and equities around the world, which creates one of the richest and most diverse sets of market intelligence anywhere in global fixed income and electronic trading. As AI becomes more capable, we believe the breadth of our network, the quality of our data, and the trust our clients place in us will become increasingly valuable. And with that, let me turn it over to Sara to discuss our financials in more detail.