Operating cash flow covered only 39% of net income in Q2 2026, down from 172% in Q4 2025, while buybacks ceased entirely and dividends remained stable at $27.5M, indicating a shift toward capital preservation.
MarketAxess Holdings Inc. (MKTX) cash flow statement — 24-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 200.51M | 382.29M | 385.24M | 333.77M | 289.23M | 282.09M | 404.49M | 265.94M | 223.92M | 168.03M | 80.29M | 120.2M | 109.95M | 90.88M | 81.58M | 65.48M | 64.15M | 43.33M | 27.63M | 29.12M | 17.1M | 16.91M | 20.37M | 17.16M | -17.63M |
| Operating CF Growth % | -443.43% | -0.76% | 15.42% | 15.4% | 2.53% | -30.26% | 52.1% | 18.77% | 33.26% | 109.29% | -33.2% | 9.32% | 20.99% | 11.4% | 24.59% | 2.08% | 48.05% | 56.79% | -5.1% | 70.28% | 1.14% | -17% | 18.71% | 197.35% | - |
| Net Income | 306.4M | 246.91M | 274.18M | 258.06M | 250.22M | 257.89M | 299.38M | 204.9M | 172.85M | 148.09M | 126.17M | 96.04M | 74.81M | 68.37M | 60.07M | 47.7M | 31.43M | 16.1M | 7.9M | 10.32M | 5.42M | 8.14M | 58.65M | 4.21M | -36.08M |
| Depreciation & Amortization | 85.59M | 84.22M | 80.46M | 76.41M | 67.15M | 60.25M | 42.84M | 32.65M | 23.08M | 19.27M | 17.84M | 18.54M | 17.38M | 13.05M | 8.23M | 6.78M | 6.35M | 6.79M | 7.88M | 7.17M | 6.73M | 4.61M | 3.47M | 4.69M | 6.83M |
| Deferred Taxes | 22.09M | 22.02M | -3.88M | -5.82M | -6.55M | 3.12M | 10.1M | 2.68M | -1.26M | 6.59M | -2.58M | -2.42M | -374K | 1M | -643K | 16.13M | 15.77M | 12.26M | 4.82M | 4.7M | 903K | 547K | -41.41M | 61.23K | 0 |
| Other Non-Cash Items | 5.35M | 1.96M | 8.32M | 1.6M | -8.23M | -466K | -550K | -786K | 2.34M | 1.95M | 1.17M | 2.05M | 1.73M | -296K | 1.2M | 1.18M | 191K | 652K | 1.26M | 412K | 9.52M | 4.69M | 4.32M | 5.32M | 8.16M |
| Working Capital Changes | -253.25M | -3.89M | -3.53M | -25.68M | -43.24M | -66.01M | 27.11M | 1.19M | 11.05M | -22.29M | -76.82M | -6.53M | 6.65M | -130K | 4.33M | -13.17M | 1.44M | -886K | -1.28M | 888K | -6.09M | -1.69M | -4.67M | 1.33M | 3.46M |
| Cash from Investing | -59.49M | -96.72M | -86.94M | -155.29M | -86.27M | -67.69M | 68.87M | -122.05M | -50.3M | -53.65M | -53.18M | -37.95M | -13.03M | -69.12M | 15.03M | -8.58M | -7.72M | -44.16M | -22.5M | -11.18M | 4.23M | -59.03M | 2.52M | -8.87M | 9.54M |
| Purchase of Investments | -12.02M | -12.97M | -42.81M | -28.82M | -83.93M | -7.88M | -32.87M | -160.83M | -336.53M | -215.83M | -81.44M | -57.17M | -16.42M | -60.76M | -16.54M | -32.3M | -66.01M | -57.41M | -29.96M | -48.72M | -80.11M | -152.64M | -55.88M | -45.31M | -45.65M |
| Sale/Maturity of Investments | 10.22M | 10.78M | 12.44M | 4.45M | 157.06M | 58.08M | 170.66M | 170.94M | 333.79M | 187.79M | 46.35M | 35.25M | 17.57M | 43.41M | 41.98M | 27.42M | 65.36M | 22.06M | 46.28M | 45.59M | 182.25M | 98.39M | 65.39M | 41.17M | 57.62M |
| Net Investment Activity | -1.8M | -2.19M | -30.37M | -24.37M | 73.13M | 50.2M | 137.79M | 10.11M | -2.74M | -28.04M | -35.09M | -21.93M | 1.15M | -17.34M | 25.43M | -4.88M | -643K | -35.34M | 16.32M | -3.14M | 102.14M | -54.25M | 9.5M | -4.15M | 11.97M |
| Acquisitions | 0 | -36.52M | 0 | -78.48M | -34.4M | -17.08M | -23.3M | -97.43M | 11.71M | -13.47M | -12.12M | -10.59M | -10.16M | -37.83M | -5.21M | -4.07M | -1.9M | -1.37M | -34.92M | -3.14M | -6.79M | -4.78M | -6.98M | 3.33M | 0 |
| Other Investing | -39.94M | 0 | -46.62M | -43.12M | -73.13M | -50.2M | -30.62M | -30K | -11.67M | 13.41M | 12.53M | 9.95M | 10.77M | 9.33M | 5.16M | 7.6M | 1.94M | -655K | 139K | 1.53M | -81.68M | 6.17M | 10.38M | -3.33M | -1.37M |
| Cash from Financing | -362.33M | -332.37M | -201.38M | -147.06M | -242.38M | -189.78M | -145.11M | -118.1M | -92.67M | -117.07M | -55.84M | -51.05M | -60.22M | -17.07M | -136.18M | -11.2M | -33.85M | -2.65M | 30.31M | -27.02M | 2.82M | 2.71M | 54.17M | 80.44K | 8.4M |
| Dividends Paid | -113.38M | -115.2M | -112.7M | -109.66M | -105.94M | -99.79M | -90.57M | -76.23M | -62.43M | -48.89M | -38.49M | -29.53M | -23.94M | -19.84M | -64.04M | -13.68M | -10.63M | -2.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -345.25M | -420.01M | -75.47M | -25.84M | -87.54M | -63.19M | -16.14M | -17.26M | -25.17M | -42.46M | -23.93M | -23.16M | -37.97M | -5M | -75.13M | -6.93M | -30M | 0 | -2.77M | -34.57M | -2.65M | 0 | 0 | 0 | -141 |
| Stock Issued | -17.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.19M | 0 | 2.71M | 54.17M | 80K | 8.4M |
| Net Stock Activity | -362.41M | -420.01M | -75.47M | -25.84M | -87.54M | -63.19M | -16.14M | -17.26M | -25.17M | -42.46M | -23.93M | -23.16M | -37.97M | -5M | -75.13M | -6.93M | -30M | 0 | -2.77M | -29.38M | -2.65M | 2.71M | 54.17M | 80K | 8.4M |
| Debt Issuance (Net) | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 208K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.45M | -17.16M | -13.21M | -12.5M | -26.16M | -26.79M | -38.41M | -25.82M | 0 | -27.69M | 4.29M | -186K | -819K | 2.76M | 3M | 9.42M | 6.78M | 4K | -426K | 7.35M | 5.47M | 0 | -4.88M | 445 | -8.4M |
| Net Change in Cash | -217M | -23.13M | 88.79M | 39.01M | -52.9M | 17.52M | 333.8M | 26.8M | 79.31M | -1.23M | -31.48M | 30.8M | 36.23M | 3.78M | -40.71M | 44.63M | 21.65M | -3.98M | 34.61M | -9.29M | 23.81M | -39.46M | 77.06M | 8.37M | 311.93K |
| Exchange Rate Effect | 4.3M | 23.67M | -8.14M | 7.59M | -13.48M | -7.11M | 5.55M | 1.01M | -1.64M | 1.46M | -2.76M | -385K | -471K | -901K | -1.15M | -1.08M | -924K | -498K | -834K | -215K | -339K | -46K | 0 | 0 | 0 |
| Cash at Beginning | 548.24M | 591.59M | 611.67M | 572.66M | 625.57M | 608.05M | 274.25M | 247.46M | 168.15M | 168.24M | 199.73M | 168.92M | 132.69M | 128.91M | 169.62M | 124.99M | 103.34M | 107.32M | 72.71M | 82M | 58.19M | 97.65M | 20.59M | 12.22M | 11.91M |
| Cash at End | 419.72M | 568.46M | 700.46M | 611.67M | 572.66M | 625.57M | 608.05M | 274.25M | 247.46M | 167.01M | 168.24M | 199.73M | 168.92M | 132.69M | 128.91M | 169.62M | 124.99M | 103.34M | 107.32M | 72.71M | 82M | 58.19M | 97.65M | 20.59M | 12.22M |
| Interest Paid | 5.24M | 721K | 1.72M | 1.87M | 652K | 830K | 1.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 104.54M | 62.83M | 96.93M | 94.81M | 88.68M | 70M | 45.05M | 51.77M | 47.21M | 44M | 58.27M | 50.88M | 33.63M | 30.77M | 15.1M | 10.18M | 2.23M | 837K | 452K | 246K | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 159.94M | 373.94M | 328.67M | 281.32M | 237.36M | 231.47M | 358.86M | 231.24M | 176.32M | 142.48M | 61.79M | 104.81M | 95.17M | 67.6M | 71.22M | 58.25M | 57.04M | 36.53M | 23.59M | 22.68M | 7.65M | 10.74M | 10M | 12.44M | -18.69M |
| FCF Growth % | -54.54% | 13.77% | 16.83% | 18.52% | 2.54% | -35.5% | 55.19% | 31.14% | 23.76% | 130.6% | -41.05% | 10.14% | 40.78% | -5.09% | 22.26% | 2.13% | 56.14% | 54.84% | 4% | 196.41% | -28.75% | 7.45% | -19.64% | 166.57% | - |
Quick answers to the most common questions about buying MKTX stock.
MarketAxess Holdings Inc. (MKTX) generated $382.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MarketAxess Holdings Inc. (MKTX) generated $373.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
MarketAxess Holdings Inc. (MKTX) spent $58.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, MarketAxess Holdings Inc. (MKTX) returned $115.2M to shareholders via cash dividends and spent $420.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Acquisition integration and regulatory approval
Metrics are mathematically derived from official filings.
Earnings Retention Under Acquisition Cloud
According to reported figures, Q2 2026 operating cash flow of $26.8M covered only 39% of net income, a sharp decline from 172% in Q4 2025, suggesting weakened internal capital generation.
The OCF/NI ratio deteriorated from 1.72 in Q4 2025 to 0.39 in Q2 2026, indicating that earnings are not being fully converted to cash, possibly due to timing of receivables or trading asset movements. This may constrain organic capital accumulation ahead of the ICE acquisition, though the company's $519M cash position provides a buffer. Investors should monitor whether this cash conversion weakness persists post-merger.
Securities Portfolio Flows Turn Neutral
Investment purchases and sales nearly offset in Q2 2026, with net sales of $0.5M, as per financial statements, reflecting a passive approach to securities portfolio management amid market uncertainty.
The minimal net investment activity contrasts with prior quarters where purchases outpaced sales, suggesting management is holding cash rather than deploying into securities. This conservative stance may indicate preparation for the acquisition or a response to volatile credit markets. The lack of meaningful reinvestment implies limited yield contribution from the portfolio, consistent with the declining net interest income trend.
Loan Book Cash Flows Minimal
Loan loss provisions surged to $86.2M in Q2 2026, up 34.7% year-over-year, according to reported data, yet no loan origination or repayment cash flows are disclosed, indicating the provision is not tied to actual lending activity.
The absence of loan-related cash flows in the statement suggests MarketAxess does not operate a traditional lending book, making the provision expense appear as a non-cash or one-time charge. This provision, which consumed 39.5% of revenue, may be related to the acquisition or a strategic reserve, but without disclosure, its nature remains unclear. The disconnect between provision and cash flows warrants further investigation into its purpose.
Dividends Stable, Buybacks Paused
Dividends remained steady at $27.5M in Q2 2026, while buybacks ceased entirely, as reported in financial statements, signaling a shift toward capital preservation ahead of the ICE acquisition.
The suspension of buybacks after $300M in Q4 2025 suggests management is conserving cash for deal-related needs or regulatory approvals. Dividend payments have been consistent around $28M per quarter, indicating a commitment to shareholder returns, but the payout ratio relative to OCF has risen due to weaker cash generation. This capital allocation shift may reflect a strategic pause rather than a long-term change.
Deposit Flows Not Applicable
No deposit inflows or outflows are reported in the cash flow statement, as per available data, indicating MarketAxess does not rely on customer deposits for funding, consistent with its exchange model.
The absence of deposit activity is expected for a capital markets platform, which funds operations through retained earnings and minimal debt. This reduces interest rate sensitivity compared to traditional banks, but also means the company lacks a stable, low-cost funding base. The focus remains on fee generation rather than balance sheet intermediation.
Cash Flow Statement Hides Provision Intent
The $86.2M loan loss provision in Q2 2026, as reported, has no corresponding cash outflow, suggesting it may be a non-cash charge that obscures true operating cash generation.
The provision appears to be an accounting adjustment rather than a cash loss, as no loan charge-offs or recoveries are visible in the cash flow data. This could indicate a reserve build for potential credit exposures or a one-time acquisition-related charge, but the lack of transparency raises questions about earnings quality. Investors should scrutinize the provision's treatment in the acquisition accounting, as it may inflate costs and depress reported profitability without affecting cash.