Cash flow generation remains sensitive to working capital cycles, as evidenced by a $234.0 million outflow in 2026Q1 that caused the operating cash flow to net income ratio to drop to 0.51.
| Cash from Operations | 1.21B | 1.17B | 897.74M | 746.09M | 632.82M | 578.02M | 443.23M | 311M | 277.38M | 224.58M | 171.84M |
| Operating CF Margin % | - | 56.89% | 52.01% | 55.75% | 53.23% | 53.7% | 49.65% | 40.1% | 42.18% | 44.52% | 34.92% |
| Operating CF Growth % | 159.08% | 30.06% | 20.33% | 17.9% | 9.48% | 30.41% | 42.52% | 12.12% | 23.51% | 30.69% | - |
| Net Income | 869.69M | 812.79M | 569.96M | 419.5M | 359.61M | 273.11M | 218.39M | 173.02M | 159.47M | 83.65M | 93.16M |
| Depreciation & Amortization | 248.2M | 250.19M | 220M | 185.35M | 178.88M | 171.31M | 153.79M | 139.33M | 81.83M | 68.61M | 80.86M |
| Stock-Based Compensation | 78.11M | 103.54M | 89.65M | 65.13M | 66.64M | 51.94M | 39.29M | 49.82M | 19.57M | 26.1M | 0 |
| Deferred Taxes | 86.47M | 92.32M | 24.58M | 99.41M | 39.21M | 72.66M | 53.76M | -18.11M | 3.57M | -950K | -6.32M |
| Other Non-Cash Items | -166.19M | -175.41M | 1.11M | 13.12M | 1M | 0 | 0 | 0 | 21.1M | 58.52M | 26.22M |
| Working Capital Changes | 48.59M | 84.22M | -7.57M | -36.43M | -12.52M | 9M | -22M | -33.06M | 11.42M | 14.75M | -22.08M |
| Change in Receivables | -82.56M | -35.34M | -14.9M | -21.08M | -17.23M | -22.37M | -11.62M | -4.28M | -190.62M | 11.19M | -18.3M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.3M | 7.71M | -7.44M |
| Change in Payables | 34.05M | 87.14M | 29.76M | 2.19M | 10.2M | -3.48M | 11.19M | -3.55M | 176.32M | -3.83M | 1.98M |
| Cash from Investing | -189.02M | -126.53M | -969.19M | -132.76M | -60.1M | -259.11M | -62.54M | -44.46M | -42.1M | -45.55M | -50.56M |
| Capital Expenditures | -63.9M | -40.55M | -40.96M | -18.53M | -23.21M | -16.88M | -11.49M | -15.78M | -42.1M | -40.62M | -35.35M |
| CapEx % of Revenue | 2.96% | 1.98% | 2.37% | 1.38% | 1.95% | 1.57% | 1.29% | 2.03% | 6.4% | 8.05% | 7.18% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - |
| Investments | 296.16M | 292M | 25.89M | 9.09M | 20.01M | 3.31M | 111K | 2.52M | 3.24M | 375K | 969K |
| Other Investing | -36.49M | -85.98M | -68.1M | -43.23M | -36.88M | -34.47M | -11.05M | -28.68M | -26.68M | -27.16M | -25.35M |
| Cash from Financing | -396.59M | -307.48M | -290.26M | -168.17M | -276.7M | -136.1M | -52.69M | -218.14M | -175.35M | -153.46M | -130.52M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -155.32M | -104.17M | -59.05M | -35.2M | -99.32M | -75.68M | 626.27M | 1.97B | 0 | 0 | 0 |
| Dividends Paid | -106.54M | -102.34M | -85.23M | -75.91M | -66.01M | -64.57M | -58.09M | -155.94M | -175.35M | -152M | -130M |
| Share Repurchases | -158.3M | -104.17M | -59.05M | -35.2M | -99.32M | -75.68M | 0 | 0 | -175.35M | -152M | -130M |
| Other Financing | -134.73M | -100.96M | -145.98M | -57.06M | -111.37M | 4.15M | -620.87M | -2.03B | 0 | -1.46M | -521K |
| Net Change in Cash | 630.85M | 744.44M | -366.17M | 449.24M | 285.18M | 180.77M | 330.57M | 50.41M | 57.51M | 28.72M | -15.44M |
| Free Cash Flow | 1.15B | 1.13B | 856.78M | 684.33M | 572.73M | 526.67M | 400.7M | 266.54M | 235.29M | 183.96M | 136.5M |
| FCF Margin % | 53.01% | 54.92% | 49.64% | 51.14% | 48.18% | 48.93% | 44.89% | 34.37% | 35.78% | 36.47% | 27.73% |
| FCF Growth % | 35.26% | 31.55% | 25.2% | 19.49% | 8.74% | 31.44% | 50.33% | 13.28% | 27.9% | 34.77% | - |
| FCF per Share | 5.37 | 5.24 | 3.99 | 3.22 | 2.75 | 2.54 | 2.13 | 1.70 | 1.91 | 0.81 | 0.60 |
| FCF Conversion (FCF/Net Income) | 1.32x | 1.44x | 1.79x | 2.04x | 2.05x | 2.55x | 2.67x | 3.71x | 1.74x | 2.68x | 1.84x |
| Interest Paid | 1.21M | 0 | 2.57M | 1.3M | 1.47M | 0 | 0 | 0 | 0 | 455K | 1.34M |
| Taxes Paid | 109.95M | 0 | 152.01M | 28.64M | 13.2M | 3.88M | 19.11M | 43.84M | 8.16M | 6.31M | 6.74M |
Regulatory clearing mandate shifts
Based on reported financial statements, Tradeweb's operating cash flow to net income ratio fluctuated significantly, reaching a low of 0.51 in 2026Q1, which suggests that reported earnings are currently decoupled from actual cash generation due to substantial working capital movements and non-cash accounting adjustments.
The wide variance in the OCF/NI ratio indicates that net income is not a reliable proxy for immediate cash availability. Investors should monitor whether these periodic cash flow deficits are temporary timing differences or a structural shift in how the company recognizes revenue versus collecting cash.
As reported in quarterly filings, Tradeweb's free cash flow margins have shown extreme volatility, ranging from a low of 5.1% in 2024Q1 to a peak of 78.7% in 2025Q2, highlighting a sensitivity to seasonal working capital cycles that complicates short-term cash flow forecasting.
While the company demonstrates high profitability, the erratic FCF trajectory suggests that cash generation is heavily influenced by the timing of institutional trading settlements. This volatility warrants further investigation into whether the business model requires higher permanent working capital levels than previously assumed.
According to recent SEC filings, Tradeweb experienced a significant working capital outflow of $234.0 million in 2026Q1, a sharp reversal from the positive inflows observed in previous quarters, which suggests that the company's cash position is highly susceptible to the timing of trade-related settlements.
These large, periodic swings in working capital appear to be the primary driver of the divergence between net income and operating cash flow. Analysts should interpret these movements as a reflection of the company's role in the clearing ecosystem rather than a deterioration in core operational efficiency.
Based on the provided data, Tradeweb has consistently utilized cash for dividends and share repurchases, with $53.3 million allocated to buybacks in 2026Q1, yet the accumulation of cash reserves suggests a cautious approach to inorganic growth that may limit long-term return on invested capital.
The company's preference for returning capital to shareholders appears to prioritize stability over aggressive expansion. Investors should monitor whether this conservative deployment strategy persists or if management intends to utilize its cash pile for strategic acquisitions to defend its market position against emerging electronic competitors.
Quick answers to the most common questions about buying TW stock.
Tradeweb Markets Inc. (TW) generated $1.17B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tradeweb Markets Inc. (TW) generated $1.13B 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.
Tradeweb Markets Inc. (TW) spent $40.6M 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, Tradeweb Markets Inc. (TW) returned $102.3M to shareholders via cash dividends and spent $104.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.