Cash flow generation has become increasingly erratic, evidenced by a $186.9 million working capital outflow in 2026Q1 that resulted in a negative $75.6 million free cash flow position.
| 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 | 277.42M | 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 Margin % | - | 45.02% | 47.1% | 44.45% | 40.24% | 40.24% | 58.7% | 52.01% | 51.41% | 42.28% | 21.7% | 39.66% | 41.99% | 38.07% | 41.16% | 36.16% | 43.87% | 37.86% | 29.69% | 31.1% | 20.53% | 21.52% | 26.88% | 29.35% | -2374.14% |
| Operating CF Growth % | -382.02% | -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 | 309.44M | 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 | 85.37M | 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 |
| Stock-Based Compensation | 32.74M | 30.92M | 29.68M | 29.19M | 29.86M | 27.31M | 25.61M | 25.29M | 15.85M | 14.42M | 14.51M | 12.52M | 9.77M | 8.88M | 8.38M | 6.86M | 8.97M | 8.41M | 7.06M | 5.63M | 613K | 613K | 13K | 1.54M | 0 |
| Deferred Taxes | 22.35M | 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 | 7.99M | 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 | -181.22M | -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 |
| Change in Receivables | -8.3M | -125.42M | 316.36M | -188.16M | -62.77M | -141.31M | -200.89M | -2.96M | -5.12M | -2.35M | -10.43M | -6.75M | 827K | -1.71M | 4.61M | -11.66M | -3.13M | -10.52M | 5.79M | -1.28M | -2.44M | -856K | -7.31M | -5.97M | 718.17K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -16M | 0 | -1.22M | -826K | -1.27M | 1.1M | -3.6M | 5.71M | -1.85M | 412K | -2.44M | 2.69M | -165.18M | -142.36M | 0 | -196.41M | -1.76M | -6.41M | -23.1M | 0 |
| Change in Payables | 12.29M | 103.17M | -314.69M | 220.69M | 86.05M | 96.21M | 139.33M | -1.51M | 14.37M | -1.61M | 2.34M | -9K | -950K | 1.18M | -714K | 178K | 1.57M | 2.82M | -3.24M | 2.17M | -605K | -833K | 2.64M | -245.49K | 1.01M |
| Cash from Investing | -99.03M | -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 |
| Capital Expenditures | -18.31M | -58.01M | -9.94M | -9.33M | -51.87M | -50.62M | -15.01M | -34.7M | -47.59M | -25.56M | -18.5M | -15.38M | -14.79M | -23.28M | -10.36M | -7.22M | -7.11M | -6.8M | -4.04M | -6.44M | -9.45M | -6.17M | -10.38M | -4.72M | -1.06M |
| CapEx % of Revenue | 2.09% | 6.83% | 1.22% | 1.24% | 7.22% | 7.22% | 2.18% | 6.79% | 10.93% | 6.43% | 5% | 5.08% | 5.65% | 9.75% | 5.23% | 3.99% | 4.86% | 5.94% | 4.34% | 6.87% | 11.34% | 7.85% | 13.69% | 8.08% | 142.64% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 172.54M | 219.4M | 165.26M | 134.86M | 83.79M | 36.08M | 28.11M | 230.48M | 240.1M | 239.52M | 194.4M | -19.56M | -40.71M | -38.6M | -9.38M | 78.11M | 4.94M | 71M | 34.51M | 107.61M | 101.83M | 123.71M | 15.39M | 15.59M | 14.64M |
| Other Investing | -76.61M | 0 | -76.99M | -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 | -283.97M | -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 |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -399.09M | -437.17M | -75.47M | -24.9M | -110.27M | -63.19M | -16.14M | -16.05M | -30.24M | -40.49M | -21.63M | -21.33M | -35.46M | 0 | -75.13M | -6.93M | -30M | 0 | 30.74M | -34.57M | -2.65M | 2.71M | 59.05M | 80K | 16.8M |
| Dividends Paid | -114.13M | -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 | -381.94M | -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 |
| Other Financing | 1.01M | 0 | -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 | -82.49M | -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 |
| Free Cash Flow | 236.13M | 373.94M | 375.3M | 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 Margin % | 26.97% | 44.03% | 45.88% | 37.46% | 33.03% | 33.02% | 52.07% | 45.22% | 40.48% | 35.85% | 16.7% | 34.58% | 36.34% | 28.31% | 35.93% | 32.17% | 39.01% | 31.92% | 25.34% | 24.22% | 9.19% | 13.67% | 13.19% | 21.28% | -2516.78% |
| FCF Growth % | -34.67% | -0.36% | 33.41% | 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% | - |
| FCF per Share | 6.67 | 10.16 | 9.96 | 7.47 | 6.31 | 6.08 | 9.41 | 6.09 | 4.66 | 3.75 | 1.64 | 2.78 | 2.51 | 1.78 | 1.88 | 1.47 | 1.46 | 0.96 | 0.66 | 0.66 | 0.22 | 0.30 | 0.33 | 3.78 | -5.85 |
| FCF Conversion (FCF/Net Income) | 0.76x | 1.55x | 1.41x | 1.29x | 1.16x | 1.09x | 1.35x | 1.30x | 1.30x | 1.13x | 0.64x | 1.25x | 1.47x | 1.33x | 1.36x | 1.37x | 2.04x | 2.69x | 3.50x | 2.82x | 3.15x | 2.08x | 0.35x | 4.07x | 0.49x |
| Interest Paid | 523K | 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 |
| Taxes Paid | 52.98M | 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 |
Competitive Market Share Erosion
According to recent financial disclosures, MKTX experienced a significant disconnect in 2026Q1, where net income of $77.9 million failed to translate into positive operating cash flow, resulting in a negative OCF/NI ratio of -0.97, which warrants immediate investigation into underlying working capital volatility.
The sharp reversal from historical OCF/NI ratios above 1.0 to a negative figure suggests that reported earnings are currently decoupled from cash generation. Investors should monitor whether this is a temporary timing issue related to clearing house requirements or a more permanent shift in the cash-conversion efficiency of the platform.
As reported in quarterly filings, MKTX's free cash flow trajectory has become increasingly erratic, swinging from a peak of $165.2 million in 2024Q4 to a deficit of $75.6 million in 2026Q1, indicating that the company's ability to self-fund operations is currently under significant pressure.
The inconsistency in FCF margins suggests that the company's cash generation is highly sensitive to episodic working capital swings rather than steady-state operational performance. This volatility complicates the assessment of the company's long-term ability to sustain its dividend and share repurchase programs without relying on balance sheet liquidity.
Based on the provided cash flow statements, working capital movements have become a primary driver of cash flow instability, highlighted by a substantial $186.9 million outflow in 2026Q1 that effectively neutralized the company's ability to generate cash from its core trading operations during the period.
The magnitude of these working capital swings appears to be the primary culprit behind the recent deterioration in cash flow quality. Analysts should investigate whether these fluctuations are linked to specific regulatory clearing mandates or changes in the settlement cycles of the underlying credit products traded on the platform.
As observed in recent financial statements, MKTX has maintained consistent dividend payments despite the recent cash flow volatility, with $28.4 million distributed in 2026Q1, even as operating cash flow turned negative, suggesting a management preference for returning capital despite current operational headwinds.
The commitment to shareholder returns in the face of negative free cash flow may indicate management's confidence in a near-term recovery of cash generation. However, if these outflows persist, the sustainability of such capital allocation policies may come into question, potentially forcing a re-evaluation of the company's dividend policy.
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.