Electronic bond trading platform MarketAxess (NASDAQ: MKTX) missed Wall Street’s revenue expectations in Q4 CY2025 as sales rose 3.5% year on year to $209.4 million. Its non-GAAP profit of $1.68 per share was 2.4% above analysts’ consensus estimates.
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MarketAxess (MKTX) Q4 CY2025 Highlights:
- Revenue: $209.4 million vs analyst estimates of $211.2 million (3.5% year-on-year growth, 0.9% miss)
- Pre-tax Profit: $79.79 million (38.1% margin)
- Adjusted EPS: $1.68 vs analyst estimates of $1.64 (2.4% beat)
- Market Capitalization: $6.05 billion
Company Overview
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, MarketAxess’s revenue grew at a sluggish 4.2% compounded annual growth rate over the last five years. This fell short of our benchmark for the financials sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. MarketAxess’s annualized revenue growth of 6% over the last two years is above its five-year trend, but we were still disappointed by the results. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, MarketAxess’s revenue grew by 3.5% year on year to $209.4 million, falling short of Wall Street’s estimates.
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Key Takeaways from MarketAxess’s Q4 Results
It was good to see MarketAxess beat analysts’ EPS expectations this quarter. On the other hand, its revenue slightly missed. Overall, this quarter could have been better. The stock remained flat at $162.82 immediately after reporting.
Is MarketAxess an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
