MarketAxess maintains a resilient 72.9% gross margin as of 2026Q1, though revenue growth appears increasingly inconsistent compared to historical double-digit benchmarks.
| 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 |
|---|
| Sales/Revenue | 875.65M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 617.11M | 593.4M | 573.61M | 524.13M | 519.48M | 528.79M | 555.14M | 413.74M | 357.79M | 333.08M | 316.97M | 250.1M | 209.43M | 194.45M | 168.97M | 174.32M | 139.88M | 107.65M | 85.21M | 86.47M | 76.59M | 0 | 0 | 58.46M | 742.49K |
| Gross Margin % | 70.47% | 69.88% | 70.13% | 69.8% | 72.28% | 75.43% | 80.56% | 80.91% | 82.14% | 83.8% | 85.69% | 82.51% | 79.97% | 81.45% | 85.25% | 96.26% | 95.66% | 94.07% | 91.54% | 92.34% | 91.92% | - | - | 100% | 100% |
| Gross Profit Growth % | - | 3.45% | 9.44% | 0.9% | -1.76% | -4.75% | 34.18% | 15.64% | 7.42% | 5.08% | 26.74% | 19.42% | 7.7% | 15.08% | -3.07% | 24.62% | 29.94% | 26.34% | -1.47% | 12.91% | - | - | -100% | 7773.54% | - |
| Operating Expenses | 257.4M | 243.44M | 234.73M | 205.44M | 192.67M | 191.53M | 180.41M | 162.85M | 145.2M | 131.31M | 125.37M | 102.2M | 91.8M | 86.77M | 82.29M | 95.58M | 88.97M | 77.6M | 72.37M | 69.22M | 67.98M | 0 | 0 | 54.06M | 36.82M |
| OpEx % of Revenue | - | 28.67% | 28.7% | 27.36% | 26.81% | 27.32% | 26.18% | 31.85% | 33.34% | 33.04% | 33.89% | 33.72% | 35.05% | 36.35% | 41.52% | 52.78% | 60.84% | 67.81% | 77.75% | 73.92% | 81.6% | - | - | 92.47% | 4958.66% |
| Selling, General & Admin | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 42.16M | 39.46M |
| SG&A % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 72.13% | 5314.75% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 359.71M | 349.96M | 338.88M | 318.69M | 326.81M | 337.26M | 374.73M | 250.88M | 212.58M | 201.77M | 191.6M | 147.9M | 117.64M | 107.68M | 86.69M | 78.73M | 50.91M | 30.05M | 12.83M | 17.25M | 8.6M | 11.51M | 17.32M | 4.4M | -36.08M |
| Operating Margin % | 41.08% | 41.21% | 41.43% | 42.44% | 45.47% | 48.11% | 54.38% | 49.06% | 48.81% | 50.76% | 51.8% | 48.8% | 44.92% | 45.1% | 43.74% | 43.48% | 34.82% | 26.26% | 13.79% | 18.42% | 10.33% | 14.65% | 22.85% | 7.53% | -4858.66% |
| Operating Income Growth % | - | 3.27% | 6.33% | -2.49% | -3.1% | -10% | 49.36% | 18.02% | 5.36% | 5.31% | 29.55% | 25.73% | 9.25% | 24.22% | 10.1% | 54.65% | 69.42% | 134.14% | -25.6% | 100.5% | -25.25% | -33.52% | 293.35% | 112.2% | - |
| EBITDA | 443.14M | 434.18M | 419.34M | 395.1M | 393.97M | 397.51M | 417.57M | 283.53M | 235.66M | 221.04M | 209.44M | 166.44M | 135.01M | 121.8M | 94.92M | 85.51M | 57.26M | 36.84M | 20.71M | 24.42M | 15.33M | 16.12M | 20.78M | 9.09M | -29.42M |
| EBITDA Margin % | 50.61% | 51.13% | 51.27% | 52.62% | 54.82% | 56.7% | 60.59% | 55.45% | 54.11% | 55.61% | 56.62% | 54.91% | 51.56% | 51.02% | 47.89% | 47.22% | 39.16% | 32.19% | 22.25% | 26.08% | 18.4% | 20.52% | 27.42% | 15.55% | -3961.97% |
| EBITDA Growth % | 5.86% | 3.54% | 6.13% | 0.29% | -0.89% | -4.8% | 47.27% | 20.31% | 6.62% | 5.54% | 25.83% | 23.28% | 10.85% | 28.32% | 11% | 49.34% | 55.43% | 77.85% | -15.18% | 59.28% | -4.87% | -22.45% | 128.65% | 130.9% | - |
| D&A (Non-Cash Add-back) | 83.43M | 84.22M | 80.46M | 76.41M | 67.15M | 60.25M | 42.84M | 32.65M | 23.08M | 19.27M | 17.84M | 18.54M | 17.38M | 14.12M | 8.23M | 6.78M | 6.35M | 6.79M | 7.88M | 7.17M | 6.73M | 4.61M | 3.47M | 4.69M | 6.66M |
| EBIT | 378.89M | 368.48M | 362.15M | 334.68M | 338.99M | 334.76M | 375.5M | 257.42M | 218.09M | 201.77M | 191.6M | 147.9M | 118.54M | 107.28M | 86.69M | 78.73M | 50.91M | 30.05M | 12.83M | 17.25M | 8.6M | 11.51M | 17.32M | 4.4M | -36.75M |
| Net Interest Income | 17.37M | 22.91M | 24.45M | 20.44M | 4.34M | -441K | 1.3M | 8.06M | 6.11M | 3.62M | 2.14M | 905K | 543K | 420K | 1.06M | 1.23M | 1.19M | 1.22M | 3.48M | 5.24M | 4.59M | 0 | 0 | 371.13K | 742.49K |
| Interest Income | 21.54M | 24.4M | 26.05M | 22.43M | 5.04M | 401K | 2.45M | 8.06M | 6.11M | 3.62M | 2.14M | 905K | 543K | 420K | 1.06M | 1.23M | 1.19M | 1.22M | 3.48M | 5.24M | 4.59M | 0 | 0 | 371.13K | 742.49K |
| Interest Expense | 4.16M | 1.49M | 1.6M | 1.98M | 700K | 842K | 1.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 374.73M | 367M | 360.55M | 332.7M | 338.29M | 333.92M | 374.36M | 257.42M | 218.09M | 201.77M | 191.6M | 147.9M | 118.54M | 107.28M | 86.69M | 78.73M | 50.91M | 30.05M | 12.83M | 17.25M | 8.6M | 11.56M | 17.32M | 4.4M | -36.08M |
| Pretax Margin % | 42.79% | 43.22% | 44.08% | 44.31% | 47.07% | 47.63% | 54.32% | 50.34% | 50.07% | 50.76% | 51.8% | 48.8% | 45.26% | 44.94% | 43.74% | 43.48% | 34.82% | 26.26% | 13.79% | 18.42% | 10.33% | 14.72% | 22.85% | 7.53% | -4858.66% |
| Income Tax | 64.77M | 120.08M | 86.36M | 74.64M | 88.06M | 76.03M | 74.98M | 52.52M | 45.23M | 53.68M | 65.43M | 51.86M | 43.73M | 38.72M | 26.62M | 31.03M | 19.48M | 13.95M | 4.93M | 6.93M | 3.18M | 3.42M | -40.27M | 189.5K | 0 |
| Effective Tax Rate % | 17.29% | 32.72% | 23.95% | 22.44% | 26.03% | 22.77% | 20.03% | 20.4% | 20.74% | 26.6% | 34.15% | 35.07% | 36.89% | 36.09% | 30.71% | 39.41% | 38.27% | 46.41% | 38.45% | 40.18% | 36.99% | 29.57% | -232.57% | 4.3% | 0% |
| Net Income | 309.44M | 246.63M | 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 | 57.59M | 4.21M | -36.08M |
| Net Margin % | 35.34% | 29.04% | 33.52% | 34.37% | 34.82% | 36.79% | 43.44% | 40.07% | 39.68% | 37.26% | 34.11% | 31.69% | 28.57% | 28.64% | 30.31% | 26.34% | 21.49% | 14.07% | 8.49% | 11.02% | 6.51% | 10.36% | 75.98% | 7.21% | -4858.66% |
| Net Income Growth % | 42.84% | -10.05% | 6.25% | 3.13% | -2.97% | -13.86% | 46.11% | 18.54% | 16.72% | 17.37% | 31.38% | 28.38% | 9.41% | 13.83% | 25.92% | 51.79% | 95.18% | 103.85% | -23.46% | 90.37% | -33.42% | -85.86% | 1267% | 111.68% | - |
| Net Income (Continuing) | 309.95M | 246.91M | 274.18M | 258.06M | 250.22M | 257.89M | 299.38M | 204.9M | 172.85M | 148.09M | 126.17M | 96.04M | 74.81M | 68.56M | 60.07M | 47.7M | 31.43M | 16.1M | 7.9M | 10.32M | 5.42M | 8.14M | 57.59M | 4.21M | -36.08M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.45M | -1.72M | -1.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 13.52M | 12.59M | 0 | 0 | 0 | 0 | 0 | 0 | -246.32M | -168.21M | -169.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.74 | 6.66 | 7.28 | 6.85 | 6.65 | 6.77 | 7.85 | 5.40 | 4.57 | 3.89 | 3.34 | 2.55 | 1.97 | 2.01 | 1.59 | 1.20 | 0.80 | 0.42 | 0.22 | 0.30 | 0.15 | 0.23 | 1.88 | -2.20 | -1.21 |
| EPS Growth % | 47.13% | -8.52% | 6.28% | 3.01% | -1.77% | -13.76% | 45.37% | 18.16% | 17.48% | 16.47% | 30.98% | 29.44% | -1.99% | 26.42% | 32.5% | 50% | 90.48% | 90.91% | -26.67% | 100% | -34.78% | -87.77% | 185.45% | -81.82% | - |
| EPS (Basic) | - | 6.66 | 7.29 | 6.87 | 6.68 | 6.88 | 8.01 | 5.53 | 4.68 | 4.02 | 3.42 | 2.62 | 2.03 | 2.06 | 1.65 | 1.29 | 0.86 | 0.44 | 0.23 | 0.32 | 0.18 | 0.29 | 6.76 | -2.20 | -10.92 |
| Diluted Shares Outstanding | 35.39M | 36.81M | 37.67M | 37.65M | 37.64M | 38.1M | 38.14M | 37.96M | 37.85M | 38.04M | 37.74M | 37.64M | 37.89M | 37.89M | 37.82M | 39.61M | 39.05M | 38.08M | 35.74M | 34.45M | 35.08M | 35.51M | 30.64M | 3.29M | 3.19M |
| Basic Shares Outstanding | 35.3M | 36.81M | 37.6M | 37.55M | 37.47M | 37.51M | 37.36M | 37.08M | 36.96M | 36.86M | 36.84M | 36.69M | 36.93M | 36.89M | 36.52M | 37.01M | 33.16M | 33.26M | 32.83M | 32.29M | 30.56M | 28.16M | 7.1M | 3.29M | 3.3M |
| Dividend Payout Ratio | - | 46.71% | 41.1% | 42.49% | 42.34% | 38.7% | 30.25% | 37.2% | 36.12% | 33.01% | 30.51% | 30.75% | 32% | 29.01% | 106.61% | 28.68% | 33.82% | 16.46% | - | - | - | - | - | - | - |
Competitive Market Share Erosion
As indicated by the most recent quarterly data, MarketAxess reported revenue of $233.4 million, reflecting a period of inconsistent top-line performance that suggests the company is struggling to maintain the double-digit growth rates historically associated with its core U.S. Investment Grade credit trading platform dominance.
The revenue trajectory appears to be oscillating, which may imply that the firm is reaching a saturation point in its primary market. Investors should monitor whether the recent volume fluctuations are a result of broader credit market volatility or a structural shift toward competitor-led portfolio trading protocols.
Based on reported financial statements, the company maintained a gross margin of 72.9% in 2026Q1, demonstrating that despite intensified competition in the electronic fixed-income space, the underlying platform remains highly efficient at converting transaction volume into gross profit without significant incremental cost increases per trade.
The stability of these margins suggests that the company retains significant pricing power within its niche, though this may be tested if fee-per-million compression continues. The ability to sustain these levels indicates that the network effect remains a potent barrier to entry for smaller, less liquid venues.
According to the provided income statement data, MarketAxess achieved an operating margin of 43.2% in 2026Q1, highlighting the firm's ability to scale its technology-heavy infrastructure while keeping overhead costs relatively contained as it attempts to capture new volume in emerging markets and Treasury trading segments.
The high operating margin confirms that the business model benefits from significant fixed-cost absorption, where incremental revenue flows efficiently to the bottom line. However, management must balance this efficiency against the need for continued investment in engineering talent to defend against evolving competitor protocols.
As reported in recent filings, the company consistently records stock-based compensation expenses, such as the $9.2 million observed in 2026Q1, which warrants careful scrutiny as these non-cash charges can mask the true economic cost of talent retention and dilute the quality of reported net income.
While the company remains consistently profitable, the reliance on equity-based incentives suggests that investors should focus on free cash flow generation rather than headline EPS alone. The variability in net income margins, ranging from 7.3% to 44.5% over the last ten quarters, further underscores the need to adjust for non-operating items.
Based on the provided data, the stagnation in revenue growth relative to historical norms suggests that the market may be overestimating the durability of the company's competitive moat, particularly as portfolio trading gains traction and potentially undermines the unique value proposition of the all-to-all liquidity model.
Short-term observers might focus on the potential for margin compression if the company is forced to lower fees to compete with multi-dealer platforms. The risk remains that the firm's reliance on high-fee credit products leaves it vulnerable to a permanent shift in how institutional clients execute trades.
Quick answers to the most common questions about buying MKTX stock.
MarketAxess Holdings Inc. (MKTX) is profitable, generating $246.6M in net income for the fiscal year ending 2025 with a net profit margin of 29.0%.
MarketAxess Holdings Inc. (MKTX) reported an operating income of $350.0M, resulting in an operating profit margin of 41.2%. This margin reflects the operational efficiency of the business before interest and taxes.
MarketAxess Holdings Inc. (MKTX) generated $593.4M in gross profit for the year, representing a gross profit margin of 69.9%. This demonstrates the company's core pricing power and production efficiency.