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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-34091

MARKETAXESS HOLDINGS INC.

(Exact name of registrant as specified in its charter)


Delaware		52-2230784
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

55 Hudson Yards, 15th Floor New York, New York		10001
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 813-6000

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol

     Name of each exchange on which registered

     Common Stock, $0.003 par value

     MKTX

     NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of May 4, 2026, the number of shares of the Registrant’s voting common stock outstanding was 35,539,453.

MARKETAXESS HOLDINGS INC.

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026

TABLE OF CONTENTS


		Page
PART I — Financial Information
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition as of March 31, 2026 and December 31, 2025	3
	Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025	4
	Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2026 and 2025	5
	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2026 and 2025	6
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	8
	Notes to Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	48
PART II — Other Information
Item 1.	Legal Proceedings	49
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3.	Defaults Upon Senior Securities	50
Item 4.	Mine Safety Disclosures	50
Item 5.	Other Information	50
Item 6.	Exhibits	51

PART I — Financial Information

Item 1. Financial Statements

MARKETAXESS HOLDINGS INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


	As of
	March 31, 2026			December 31, 2025
	(In thousands, except share and per share amounts)
ASSETS
Cash and cash equivalents	$	377,302		$	519,734
Cash segregated under federal regulations		49,053			48,722
Investments, at fair value		170,808			170,677
Accounts receivable, net of allowance of $752 and $743 as of March 31, 2026 and December 31, 2025, respectively		128,171			100,989
Receivables from broker-dealers, clearing organizations and customers, including $75,072 pledged as collateral as of March 31, 2026		977,049			489,211
Goodwill		283,667			283,667
Intangible assets, net of accumulated amortization		105,281			110,629
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization		111,642			112,431
Operating lease right-of-use assets		50,986			51,854
Prepaid expenses and other assets		47,577			46,972
Total assets	$	2,301,536		$	1,934,886

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accrued employee compensation		34,738			73,879
Payables to broker-dealers, clearing organizations and customers		696,302			325,959
Borrowings		228,250			220,000
Income and other tax liabilities		35,503			49,267
Accounts payable, accrued expenses and other liabilities		39,115			42,584
Operating lease liabilities		63,711			64,938
Total liabilities	$	1,097,619		$	776,627

Commitments and Contingencies (Note 13)

Redeemable noncontrolling interest		13,520			12,592

Stockholders’ equity
Preferred stock, $0.001 par value, 4,855,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively		—			—
Series A Preferred Stock, $0.001 par value, 110,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively		—			—
Common stock voting, $0.003 par value, 110,000,000 shares authorized, 41,241,180 shares and 41,121,305 shares issued and 35,542,208 shares and 35,776,886 shares outstanding as of March 31, 2026 and December 31, 2025, respectively		124			123
Common stock non-voting, $0.003 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively		—			—
Additional paid-in capital		365,428			305,923
Treasury stock – Common stock voting, at cost, 5,698,972 shares and 5,344,419 shares as of March 31, 2026 and December 31, 2025, respectively		(752,333	)		(694,764	)
Retained earnings		1,588,852			1,538,746
Accumulated other comprehensive income/(loss)		(11,674	)		(4,361	)
Total stockholders’ equity		1,190,397			1,145,667
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	$	2,301,536		$	1,934,886

The accompanying notes are an integral part of these consolidated financial statements.

MARKETAXESS HOLDINGS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended March 31,
	2026		2025
	(In thousands, except per share amounts)
Revenues
Commissions	$	203,471	$	181,343
Information services		14,445		12,904
Post-trade services		11,607		11,088
Technology services		3,857		3,241
Total revenues		233,380		208,576

Expenses
Employee compensation and benefits		70,195		61,916
Depreciation and amortization		19,210		18,236
Technology and communications		20,360		18,048
Professional and consulting fees		6,376		6,410
Occupancy		3,819		3,622
Marketing and advertising		2,334		2,061
Clearing costs		4,426		4,185
General and administrative		5,739		5,716
Total expenses		132,459		120,194
Operating income		100,921		88,382
Other income (expense)
Interest income		4,308		7,169
Interest expense		(2,888)		(213)
Equity in earnings of unconsolidated affiliate		—		289
Other, net		1,544		527
Total other income (expense)		2,964		7,772
Income before income taxes		103,885		96,154
Provision for income taxes		25,778		81,089
Net income	$	78,107	$	15,065
Less: income attributable to redeemable noncontrolling interest		(225)		—
Net income available for common stockholders	$	77,882	$	15,065

Net income per common share
Basic	$	2.21	$	0.40
Diluted	$	2.20	$	0.40

Cash dividends declared per common share	$	0.78	$	0.76

Weighted average shares outstanding
Basic		35,301		37,388
Diluted		35,386		37,456

The accompanying notes are an integral part of these consolidated financial statements.

MARKETAXESS HOLDINGS INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31,
	2026			2025
	(In thousands)
Net income	$	78,107		$	15,065
Cumulative translation adjustment		(7,053	)		11,010
Net unrealized gain/(loss) on securities available-for- sale, net of tax of $82 and $(73), respectively		(260	)		234
Comprehensive income	$	70,794		$	26,309
Less: comprehensive income attributable to redeemable noncontrolling interest		(164	)		—
Comprehensive income available for common stockholders	$	70,630		$	26,309

The accompanying notes are an integral part of these consolidated financial statements.

MARKETAXESS HOLDINGS INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)


	Common Stock Voting		Additional Paid-In Capital		Treasury Stock - Common Stock Voting		Retained Earnings		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders’ Equity
	(In thousands, except per share amounts)
Balance at January 1, 2026	$	123	$	305,923	$	(694,764)	$	1,538,746	$	(4,361)	$	1,145,667
Net income		—		—		—		77,882		—		77,882
Cumulative translation adjustment		—		—		—		—		(7,053)		(7,053)
Unrealized net gain (loss) on securities available-for-sale, net of tax		—		—		—		—		(260)		(260)
Stock-based compensation		1		9,663		—		—		—		9,664
Withholding tax payments on Full Value Awards vesting and stock option exercises		—		(8,517)		—		—		—		(8,517)
Reissuance of treasury stock		—		(59)		849		—		—		790
Repurchases of common stock		—		58,418		(58,418)		—		—		—
Cash dividend on common stock ($0.78 per share)		—		—		—		(27,776)		—		(27,776)
Balance at March 31, 2026		124		365,428		(752,333)		1,588,852		(11,674)		1,190,397

The accompanying notes are an integral part of these consolidated financial statements.

MARKETAXESS HOLDINGS INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (CONTINUED)

(Unaudited)


	Common Stock Voting		Additional Paid-In Capital		Treasury Stock - Common Stock Voting		Retained Earnings		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders’ Equity
	(In thousands, except per share amounts)
Balance at January 1, 2025	$	123	$	350,701	$	(333,369)	$	1,405,904	$	(34,699)	$	1,388,660
Net income		—		—		—		15,065		—		15,065
Cumulative translation adjustment		—		—		—		—		11,010		11,010
Unrealized net gain (loss) on securities available-for-sale, net of tax		—		—		—		—		234		234
Stock-based compensation		—		7,696		—		—		—		7,696
Withholding tax payments on Full Value Awards vesting and stock option exercises		—		(9,525)		—		—		—		(9,525)
Reissuance of treasury stock		—		(164)		1,104		—		—		940
Repurchases of common stock		—		—		(38,077)		—		—		(38,077)
Cash dividend on common stock ($0.76 per share)		—		—		—		(28,690)		—		(28,690)
Balance at March 31, 2025		123		348,708		(370,342)		1,392,279		(23,455)		1,347,313

The accompanying notes are an integral part of these consolidated financial statements.

MARKETAXESS HOLDINGS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Three Months Ended March 31,
	2026			2025
	(In thousands)
Cash flows from operating activities
Net income	$	78,107		$	15,065
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		19,210			18,236
Amortization of operating lease right-of-use assets		1,934			1,763
Stock-based compensation expense		9,153			7,333
Deferred taxes		211			(124	)
Foreign currency transaction losses		(1,612	)		1,691
Other		4,523			(4,809	)
Changes in operating assets and liabilities:
(Increase) in accounts receivable		(28,800	)		(16,414	)
(Increase) in receivables from broker-dealers, clearing organizations and customers		(479,333	)		(129,508	)
(Increase)/decrease in prepaid expenses and other assets		(2,629	)		5,570
Decrease in mutual funds held in rabbi trust		740			837
(Decrease) in accrued employee compensation		(34,854	)		(34,310	)
Increase in payables to broker-dealers, clearing organizations and customers		376,039			96,275
(Decrease)/increase in income and other tax liabilities		(13,968	)		77,295
(Decrease) in accounts payable, accrued expenses and other liabilities		(1,749	)		(7,146	)
(Decrease) in operating lease liabilities		(2,301	)		(2,125	)
Net cash (used in)/provided by operating activities		(75,329	)		29,629
Cash flows from investing activities
Available-for-sale investments
Proceeds from maturities and sales		4,274			5,271
Purchases		(6,190	)		(5,458	)
Purchases of furniture, equipment and leasehold improvements		(259	)		(1,930	)
Capitalization of software development costs		(17,089	)		(15,031	)
Net cash (used in) investing activities		(19,264	)		(17,148	)
Cash flows from financing activities
Cash dividends on common stock		(28,398	)		(29,464	)
Withholding tax payments on Full Value Awards vesting and stock option exercises		(8,517	)		(9,525	)
Repurchases of common stock		—			(38,077	)
Proceeds from borrowings		126,250			—
Repayments of borrowings		(118,000	)		—
Net cash (used in) financing activities		(28,665	)		(77,066	)
Effect of exchange rate changes on cash and cash equivalents		(4,357	)		8,580
Cash and cash equivalents including restricted cash
Net increase/(decrease) for the period		(127,615	)		(56,005	)
Beginning of period		675,851			700,459
End of period	$	548,236		$	644,454

The accompanying notes are an integral part of these consolidated financial statements.

MARKETAXESS HOLDINGS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Supplemental cash flow information
Cash paid/(refunded) for income taxes	$	35,308	$	(1,874	)
Cash paid for interest		3,050		198
Non-cash investing and financing activity
Operating lease right-of-use assets obtained in exchange for operating lease liabilities		1,118		92
Furniture, equipment, software and leasehold improvement additions included in accounts payable		513		501
Stock-based and accrued incentive compensation relating to capitalized software development costs		1,985		1,754

The accompanying notes are an integral part of these consolidated financial statements.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Principal Business Activity

MarketAxess Holdings Inc. (the “Company” or “MarketAxess”) was incorporated in the State of Delaware on April 11, 2000. Through its subsidiaries, MarketAxess operates leading electronic trading platforms delivering expanded liquidity opportunities, improved execution quality and significant cost savings across global fixed-income markets. Approximately 2,100 institutional investor and broker-dealer firms use MarketAxess’ patented trading technology to access global liquidity on its platforms in U.S. high-grade bonds, U.S. high-yield bonds, emerging market debt, eurobonds, municipal bonds, U.S. government bonds and other fixed-income securities. MarketAxess offers a diverse set of trading protocols, automated and algorithmic trading solutions, intelligent data products and a range of post-trade and technology services to provide an end-to-end trading solution to its network of platform participants. Through its Open Trading® protocols, MarketAxess executes bond trades between and among institutional investor and broker-dealer clients in the leading all-to-all anonymous trading environment for corporate bonds.

2. Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The consolidated financial information as of December 31, 2025 has been derived from audited financial statements not included herein. These unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) with respect to Form 10-Q and reflect all adjustments that, in the opinion of management, are normal and recurring, and that are necessary for a fair statement of the results for the interim periods presented. In accordance with such rules and regulations, certain disclosures that are normally included in annual financial statements have been omitted. Interim period operating results may not be indicative of the operating results for a full year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less.

Investments

The Company determines the appropriate classification of securities at the time of purchase which are recorded in the Consolidated Statements of Financial Condition on the trade date. Securities are classified as available-for-sale or trading. Available-for-sale investments are carried at fair value with unrealized gains or losses reported in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition and realized gains or losses reported in other, net in the Consolidated Statements of Operations. Trading investments include U.S. Treasuries and are carried at fair value, with realized and unrealized gains or losses included in other, net in the Consolidated Statements of Operations.

The Company assesses whether an impairment loss on its available-for-sale debt securities has occurred due to declines in fair value or other market conditions. When the amortized cost basis of an available-for-sale debt security exceeds its fair value, the security is deemed to be impaired. The portion of an impairment related to credit losses is determined by comparing the present value of cash flows expected to be collected from the security with the amortized cost basis of the security and is recorded as a charge in the Consolidated Statements of Operations. The remainder of an impairment is recognized in accumulated other comprehensive loss if the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Fair Value Measurement

Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” A three-tiered hierarchy for determining fair value has been established that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as Level 1 (unadjusted quoted prices for identical assets or liabilities in active markets), Level 2 (inputs that are observable in the marketplace other than those inputs classified in Level 1) and Level 3 (inputs that are unobservable in the marketplace). The Company’s financial assets and liabilities measured at fair value on a recurring basis consist of its money market funds, trading securities, available-for-sale securities and foreign currency forward contracts. All other financial instruments are short-term in nature and the carrying amounts reported on the Consolidated Statements of Financial Condition approximate fair value.

Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers

Receivables from broker-dealers, clearing organizations and customers include amounts receivable for securities not delivered by the Company to the purchaser by the settlement date (“securities failed-to-deliver”) and cash deposits held at clearing organizations and clearing brokers to facilitate the settlement and clearance of matched principal transactions. Payables to broker-dealers, clearing organizations and customers include amounts payable for securities not received by the Company from a seller by the settlement date (“securities failed-to-receive”). Securities failed-to-deliver and securities failed-to-receive for transactions executed on a matched principal basis where the Company serves as a counterparty to both the buyer and the seller are recorded on a settlement date basis within receivables from and payables to broker-dealers, clearing organizations and customers. The difference between the Company’s trade-date receivables and payables for unsettled matched principal transactions reflects commissions earned and is recorded within accounts receivable, net on a trade date basis.

Allowance for Credit Losses

All accounts receivable have contractual maturities of less than one year and are derived from trading-related fees and commissions and revenues from products and services. The Company continually monitors collections and payments from its customers and maintains an allowance for credit losses. The allowance for credit losses is based on the estimated expected credit losses in accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific collection issues that have been identified. Account balances are grouped for evaluation based on various risk characteristics, including billing type, legal entity, and geographic region. Additions to the allowance for credit losses are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations. Balances that are determined to be uncollectible are written off against the allowance for credit losses.

The allowance for credit losses was $0.8 million and $0.7 million as of March 31, 2026 and December 31, 2025, respectively. The provision for credit losses was $0.1 million and $0.2 million for the three months ended March 31, 2026 and March 31, 2025, respectively. There were no write-offs or other charges against the allowance for credit losses for the three months ended March 31, 2026. Write-offs and other charges against the allowance for credit losses were $0.3 million for the three months ended March 31, 2025.

Furniture, Equipment and Leasehold Improvements

Fixed assets are carried at cost less accumulated depreciation. The Company uses the straight-line method of depreciation over three to seven years. The Company amortizes leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the remaining term of the lease.

Software Development Costs

The Company capitalizes certain costs associated with the development of internal use software, including, among other items, employee compensation and related benefits and third-party consulting costs at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. Once the product is ready for its intended use, such costs are amortized on a straight-line basis over three to five years. The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Leases

At lease commencement, a right-of-use asset and a lease liability are recognized for all leases with an initial term in excess of 12 months based on the initial present value of the fixed lease payments over the lease term. The lease right-of-use asset also reflects the present value of any initial direct costs, prepaid lease payments and lease incentives. The Company’s leases do not provide a readily determinable implicit discount rate. Therefore, management estimates the Company’s incremental borrowing rate used to discount the lease payments based on the information available at lease commencement. The Company includes the term covered by an option to extend a lease when the option is reasonably certain to be exercised. Operating lease expense is recognized on a straight-line basis over the lease term and included as a component of occupancy and technology and communications expense in the Consolidated Statements of Operations.

Foreign Currency Translation and Forward Contracts

Assets and liabilities denominated in foreign currencies are translated using exchange rates at the end of the period; revenues and expenses are translated at average monthly rates. Gains and losses on foreign currency translation are a component of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Transaction gains and losses are recorded in other, net in the Consolidated Statements of Operations.

The Company enters into foreign currency forward contracts to economically hedge its foreign currency transaction gains and losses. Realized and unrealized gains and losses on these forward contracts are included in other, net in the Consolidated Statements of Operations. The Company records the fair value of the forward contract asset in prepaid expenses and other assets or the fair value of the forward contract liability in accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition.

Revenue Recognition

The Company’s classification of revenues in the Consolidated Statements of Operations represents revenues from contracts with customers disaggregated by type of revenue. The Company has four revenue streams as described below.

Commission Revenue – The Company charges its broker-dealer clients variable transaction fees for trades executed on its platforms and, under certain plans, distribution fees or monthly minimum fees to use the platforms for a particular product area. Variable transaction fees are recognized on a trade date basis, are generally calculated as a percentage of the notional dollar volume of bonds traded on the platforms and vary based on the type, size, yield and maturity of the bond traded, as well as individual client incentives. Bonds that are more actively traded or that have shorter maturities generally generate lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. Under the Company’s disclosed trading transaction fee plans, variable transaction fees, distribution fees and unused monthly fee commitments are invoiced and recorded on a monthly basis.

For Open Trading trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns its commission through the difference in price between the two trades. The commission is collected upon settlement of the trade, which typically occurs within one to two trading days after the trade date. For the majority of the Company’s U.S. Treasury matched principal trades, commissions are invoiced and recorded on a monthly basis.

The Company also earns equities and foreign exchange commissions for algorithmic trading services and, following the 2025 RFQ-hub Acquisition (as defined below), derivative and exchange-traded-fund (“ETF”) commissions. These fees incorporate variable transaction fees, which are generally calculated as a percentage of the notional dollar volume traded and are billed on a monthly basis.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

The following table presents commission revenue by fee type:


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Commission revenue by fee type
Variable transaction fees
Disclosed trading	$	104,724	$	95,455
Open Trading – matched principal trading		49,230		43,052
U.S. government bonds - matched principal trading		5,315		4,529
Other		10,697		4,955
Total variable transaction fees		169,966		147,991
Distribution fees and unused minimum fees		33,505		33,352
Total commissions	$	203,471	$	181,343

Information services – Information services includes data licensed to the Company’s broker-dealer clients, institutional investor clients and data-only subscribers; professional and consulting services; technology software licenses; and maintenance and support services. The nature and timing of each performance obligation may vary as these contracts are either subscription-based services transferred over time, and may be net of volume-based discounts, or one-time services that are transferred at a point in time. Revenues for services transferred over time are recognized ratably over the contract period as the Company’s performance obligation is met, whereas revenues for services transferred at a point in time are recognized in the period the services are provided. Customers are generally billed monthly, quarterly, or annually; revenues billed in advance are deferred and recognized ratably over the contract period. The following table presents information services revenue by timing of recognition:


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Information services revenue by timing of recognition
Services transferred over time	$	13,634	$	12,699
Services transferred at a point in time		811		205
Total information services revenues	$	14,445	$	12,904

Post-trade services – Post-trade services revenue is generated from regulatory transaction reporting, trade publication and post-trade matching services. Customers are generally billed monthly in arrears and revenue is recognized in the period transactions are processed. Revenues billed in advance are deferred and recognized ratably over the contract period. The Company also generates one-time implementation fees for onboarding clients, which are invoiced and recognized in the period the implementation is completed. The following table presents post-trade services revenue by timing of recognition:


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Post-trade services revenue by timing of recognition
Services transferred over time	$	11,543	$	11,049
Services transferred at a point in time		64		39
Total post-trade services revenues	$	11,607	$	11,088

Technology services – Technology services revenue primarily includes technology-related license and connectivity fees and revenue generated from telecommunications line charges to broker-dealer clients. Customers may be billed monthly or quarterly in arrears or in advance, and revenue is recognized in the period transactions are processed. Revenues billed in advance are deferred and recognized ratably over the contract period.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

The following table presents technology services revenue by timing of recognition:


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Technology services revenue by timing of recognition
Services transferred over time	$	3,602	$	3,062
Services transferred at a point in time		255		179
Total technology services revenues	$	3,857	$	3,241

Contract liabilities consist of deferred revenues that the Company records when cash payments are received or due in advance of services to be performed. Deferred revenues are included in accounts payable, accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. The revenue recognized from contract liabilities and the remaining balance is shown below:


	December 31, 2025			Revenue billed in advance of services to be performed		Revenue recognized for services performed during the period			Foreign Currency Translation			March 31, 2026
		(In thousands)
Information services	$		3,343	$	3,866	$	(4,197	)	$	—		$	3,012
Post-trade services			1,376		6,596		(5,998	)		(24	)		1,950
Technology services			312		2,046		(2,056	)		—			302
Total deferred revenue	$		5,031	$	12,508	$	(12,251	)	$	(24	)	$	5,264

The majority of the Company’s information services and post-trade services contracts are short-term in nature with durations of one year or less. For contracts with original durations extending beyond one year, the aggregate amount of the transaction price allocated to remaining performance obligations was $32.2 million as of March 31, 2026. The Company expects to recognize revenue associated with the remaining performance obligations over the next 31 months.

Stock-Based Compensation

The Company measures and recognizes compensation expense for all share-based payment awards based on their estimated fair values measured as of the grant date. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period, which is typically the vesting period, with an offsetting increase to additional paid-in capital. Forfeitures are recognized as they occur.

Income Taxes

Income taxes are accounted for using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years. Tax benefits for uncertain tax positions are recognized when it is more likely than not that the positions will be sustained upon examination based on their technical merits. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Operations. All tax effects related to share-based payments are recorded in the provision for income taxes in the periods during which the awards are exercised or vest.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Business Combinations, Goodwill and Intangible Assets

Business combinations are accounted for under the purchase method of accounting. The total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, revenue growth rates, customer attrition rates, royalty rates, technological obsolescence, contributory asset charges and asset lives. Intangible assets are valued using various methodologies, including the relief-from-royalty method and multi-period excess earnings method.

The Company operates as a single reporting unit. Following an acquisition, goodwill no longer retains its identification with a particular acquisition, but instead becomes identifiable with the entire reporting unit. As a result, all of the fair value of the Company is available to support the value of goodwill. An impairment review of goodwill is performed on an annual basis, at year-end, or more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized over their estimated useful lives which range from one to 15 years using either a straight-line or accelerated amortization method based on the pattern of economic benefit the Company expects to realize from such assets. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment.

Equity Investments and Consolidation

The Company evaluates equity investments for potential consolidation under the voting-interest or variable-interest models. The Company consolidates investees over which the Company determines it has control under the voting interest model, generally greater than 50% ownership, or for which the Company is the primary beneficiary under the variable-interest model. The Company uses the equity method of accounting when it exercises significant influence over the investee, but does not have operating control, generally between 20% and 50% ownership. Under the equity method of accounting, original investments are recorded at cost in prepaid expenses and other assets on the Consolidated Statements of Financial Condition and adjusted by the Company’s proportionate share of the investees’ undistributed earnings or losses. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable.

Earnings Per Share

Basic earnings per share is computed by dividing the net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock.

Recent Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The ASU primarily will require enhanced disclosures about certain types of expenses. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, and may be applied either on a prospective or retrospective basis. Since this ASU only requires additional disclosures, adoption of this ASU will not have an impact on the Company’s financial condition, results of operations or cash flows.

In September 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. This ASU eliminates the requirement to consider the project stage of an internal-use software under development while capitalizing its development costs. Instead, under the ASU, companies are required to capitalize internal-use software development costs when management authorizes and commits to fund the software development project, and it is probable that the project will be completed and the software will be used as intended. This ASU is effective for fiscal years beginning after December 15, 2027 under a prospective, retrospective or a modified approach. Early adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

3. Regulatory Capital Requirements

One of the Company’s U.S. subsidiaries is registered as a broker-dealer and is subject to the applicable rules and regulations of the SEC, the Financial Industry Regulatory Authority (“FINRA”) and the Commodity Futures Trading Commission (“CFTC”). These rules contain minimum net capital requirements, as defined in the applicable regulations. Certain of the Company’s foreign subsidiaries are regulated by the Financial Conduct Authority (“FCA”) in the U.K. or other foreign regulators and must maintain financial resources, as defined in the applicable regulations, in excess of the applicable financial resources requirement. As of March 31, 2026, each of the Company’s subsidiaries that are subject to these regulations had net capital or financial resources in excess of their minimum requirements. As of March 31, 2026, the Company’s subsidiaries maintained aggregate net capital and financial resources that were $629.7 million in excess of the required levels of $39.8 million.

The Company’s U.S. broker-dealer subsidiary is required to segregate funds in a special reserve bank account for the benefit of customers pursuant to Rule 15c3-3 of the Exchange Act. As of March 31, 2026, this U.S. broker-dealer subsidiary had a balance of $49.1 million in its special reserve bank account. The U.S. broker-dealer subsidiary also maintained net capital that was $352.1 million in excess of the required level of $6.5 million.

Each of the Company’s U.S. and foreign regulated subsidiaries are subject to local regulations which generally limit, or require the prior notification to or approval from such regulated entity’s principal regulator before, the repayment of borrowings from the Company or affiliates, paying cash dividends, making loans to the Company or affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources.

4. Fair Value Measurements

The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2:



	Level 1		Level 2		Level 3		Total
	(In thousands)
As of March 31, 2026
Assets
Money market funds	$	17,196	$	—	$	—	$	17,196
Securities available-for-sale
Corporate debt		—		60,063		—		60,063
Trading securities
U.S. Treasuries		—		100,019		—		100,019
Mutual funds held in rabbi trust		—		10,726		—		10,726
Interest rate swaps		—		319		—		319
Total assets	$	17,196	$	171,127	$	—	$	188,323

Liabilities
Foreign currency forward position		—		1,580		—		1,580
Total liabilities	$	—	$	1,580	$	—	$	1,580

As of December 31, 2025
Assets
Money market funds	$	23,355	$	—	$	—	$	23,355
Securities available-for-sale
Corporate debt		—		58,440		—		58,440
Trading securities
U.S. Treasuries		—		100,772		—		100,772
Mutual funds held in rabbi trust		—		11,465		—		11,465
Foreign currency forward position		—		1,847		—		1,847
Total assets	$	23,355	$	172,524	$	—	$	195,879

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Money market funds are included in cash and cash equivalents on the Consolidated Statements of Financial Condition. Securities available-for-sale and trading securities are included in investments, at fair value on the Consolidated Statements of Financial Condition. Securities classified within Level 2 were valued using a market approach utilizing prices and other relevant information generated by market transactions involving comparable assets. The foreign currency forward and interest rate swap contracts are included in either other assets or accounts payable, accrued expenses and other liabilities on the Consolidated Statements of Financial Condition, and are classified within Level 2 as the valuation inputs are based on quoted market prices. The mutual funds held in a rabbi trust represent investments associated with the Company’s deferred cash incentive plan.

During each of the three months ended March 31, 2026 and 2025, there were no transfers of financial assets or liabilities between Level 1, Level 2 and Level 3.

The table below presents the carrying value, fair value and fair value hierarchy category of the Company’s financial assets and liabilities that are not measured at fair value on the Consolidated Statements of Financial Condition. The carrying values of the Company’s financial assets and liabilities not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximate fair value due to the short-term nature of the underlying assets and liabilities.


	Carrying Value		Fair Value		Level 1		Level 2		Level 3		Total
	(In thousands)
As of March 31, 2026
Financial assets not measured at fair value:
Cash	$	360,106	$	360,106	$	360,106	$	—	$	—	$	360,106
Cash segregated under federal regulations		49,053		49,053		49,053		—		—		49,053
Accounts receivable, net of allowance		128,171		128,171		—		128,171		—		128,171
Receivables from broker-dealers, clearing organizations and customers		977,049		977,049		120,471		856,578		—		977,049
Total assets	$	1,514,379	$	1,514,379	$	529,630	$	984,749	$	—	$	1,514,379

Financial liabilities not measured at fair value:
Payables to broker-dealers, clearing organizations and customers	$	696,302	$	696,302	$	—	$	696,302	$	—	$	696,302
Borrowings		228,250		228,250		—		228,250		—		228,250
Total liabilities	$	924,552	$	924,552	$	—	$	924,552	$	—	$	924,552

As of December 31, 2025
Financial assets not measured at fair value:
Cash	$	496,379	$	496,379	$	496,379	$	—	$	—	$	496,379
Cash segregated under federal regulations		48,722		48,722		48,722		—		—		48,722
Accounts receivable, net of allowance		100,989		100,989		—		100,989		—		100,989
Receivables from broker-dealers, clearing organizations and customers		489,211		489,211		107,223		381,988		—		489,211
Total assets	$	1,135,301	$	1,135,301	$	652,324	$	482,977	$	—	$	1,135,301

Financial liabilities not measured at fair value:
Payables to broker-dealers, clearing organizations and customers	$	325,959	$	325,959	$	—	$	325,959	$	—	$	325,959
Borrowings		220,000		220,000		—		220,000		—		220,000
Total liabilities	$	545,959	$	545,959	$	—	$	545,959	$	—	$	545,959

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

The Company enters into foreign currency forward contracts as an economic hedge against certain foreign currency transaction gains and losses in the Consolidated Statements of Operations. These forward contracts are for three-month periods and are used to limit exposure to foreign currency exchange rate fluctuations. The Company also enters into interest rate swap agreements to manage its exposure to the effect of interest rate changes on its unrealized gains and losses on U.S. Treasury investments. For both foreign currency forward contracts and interest rate swaps, the Company records the fair values of the asset in prepaid expenses and other assets or the fair value of the liability in accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. The following table summarizes the Company’s foreign currency forward positions and interest rate swaps:


	As of
	March 31, 2026			December 31, 2025
	(In thousands)
Foreign currency forwards
Notional value	$	96,317		$	94,197
Fair value of notional		94,737			96,044
Fair value of the (liability)/asset	$	(1,580	)	$	1,847

Interest rate swaps
Notional value	$	100,000		$	—
Fair value of notional		100,319			—
Fair value of the asset/(liability)	$	319		$	—

Realized and unrealized gains and losses on foreign currency forward contracts and interest rate swaps are included in other, net in the Consolidated Statements of Operations. The following table summarizes the realized and unrealized gains and losses on foreign currency forward contracts and interest rate swaps:



	Three Months Ended March 31,
	2026			2025
	(In thousands)
Foreign currency forwards
Unrealized gain/(loss)	$	(3,426	)	$	3,556
Realized gain/(loss)		2,051			(1,693	)
Total gain/(loss)	$	(1,375	)	$	1,863

Interest rate swaps
Unrealized gain/(loss)	$	319		$	—
Realized gain/(loss)		3			—
Total gain/(loss)	$	322		$	—

The Company records restricted cash collateral deposits with its counterparty bank in prepaid expenses and other assets on the Consolidated Statements of Financial Condition. As of March 31, 2026, the Company maintained a cash collateral deposit of $1.2 million with its counterparty bank.

MARKETAXESS HOLDINGS INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

The following table summarizes the Company’s investments:


	Amortized cost			Gross unrealized gains		Gross unrealized losses			Fair value
		(In thousands)
As of March 31, 2026
Securities available-for-sale
Corporate debt	$		60,076	$	115	$	(128	)	$	60,063
Trading securities
U.S. Treasuries			100,447		—		(428	)		100,019
Mutual funds held in rabbi trust			10,070		701		(45	)		10,726
Total investments	$		170,593	$	816	$	(601	)	$	170,808


As of December 31, 2025
Securities available-for-sale
Corporate debt	$		58,110	$	333	$	(3	)	$	58,440
Trading securities
U.S. Treasuries			100,487		329		(44	)		100,772
Mutual funds held in rabbi trust			10,563		926		(24	)		11,465
Total investments	$		169,160	$	1,588	$	(71	)	$	170,677

Purchases of investments during the three months ended March 31, 2026 and 2025 were $6.2 million and $5.5 million, respectively. Proceeds from the sales and maturities of investments during the three months ended March 31, 2026 and 2025 were $4.3 million and $5.3 million, respectively.

The following table summarizes the Company’s unrealized and realized gains and losses on investments:


	Three Months Ended March 31,
	2026	2025
	(In thousands)
Unrealized gains/(losses)
Securities available-for-sale
Corporate debt	$

MARKETAXESS HOLDINGS INC 10-Q