Cboe Global Markets Q4 Earnings Call Highlights

Cboe Global Markets (BATS:CBOE) reported record fourth-quarter and full-year results on its latest earnings call, citing broad-based strength across derivatives, cash and spot markets, and its Data Vantage information services business. Management also outlined a 2026 outlook that includes mid-single-digit organic net revenue growth, disciplined expense increases, and continued capital returns, alongside ongoing strategic realignment actions.

Record quarter and full-year performance

CEO Craig Donohue said Cboe delivered record net revenue and adjusted earnings per share for both the quarter and year, pointing to demand across regions and asset classes.

For the fourth quarter, Cboe grew net revenue 28% year-over-year to a record $671 million, while adjusted diluted EPS increased 46% to a record $3.06. For the full year, net revenue reached a record $2.4 billion, up 17% year-over-year, and adjusted diluted EPS rose 24% to $10.67.

CFO Jill Griebenow added that adjusted operating expenses were $221 million in the quarter, up 8% year-over-year, while adjusted operating EBITDA increased 40% to $465 million. Adjusted operating EBITDA margin expanded 6.1 percentage points to 69.2%, which she attributed to strong revenue and “disciplined expense management.”

Derivatives strength led by SPX and 0DTE growth

Management repeatedly highlighted derivatives as the largest driver of growth. Donohue said the derivatives franchise posted record results, with net revenue up 38% year-over-year in the fourth quarter, and noted that the company had double-digit net revenue growth across every segment.

In multi-listed options, Donohue said net transaction and clearing fees revenue increased 41% amid higher industry volumes and positive pricing trends. He also pointed to innovation in the category, including the launch of Monday and Wednesday expirations for select multi-listed names, while noting Cboe’s focus on investor education around the “unique risks associated with single stock zero DTE trading.”

In proprietary index options, Donohue said net transaction and clearing fees revenue climbed 40% as the SPX options complex set new records, supported by rapid growth in 0DTE trading. He reported:

• SPX 0DTE average daily volume (ADV) up 66% year-over-year
• Overall SPX ADV up 39% to a record 4.3 million contracts
• 0DTE represented more than 61% of SPX volume, up from 51% a year earlier
• Mini-SPX 0DTE ADV up 135% year-over-year, ending the year as “just over half” of Mini-SPX volume

Donohue also said VIX futures and VIX options volume increased 15% in the quarter amid higher market uncertainty, and that VIX options set a new record in 2025 at 862,000 contracts per day. He pointed to a resurgence in small-cap interest as well, saying Russell 2000 Index options volume jumped 20% last quarter to the highest level in almost 10 years, and that Russell 2000 options would be added to the Global Trading Hours (GTH) session.

On the Q&A, executives addressed investor questions about potential cannibalization from single-name 0DTE options. Global Head of Derivatives Rob Hocking said early uptake of Monday/Wednesday single-name options was “largely concentrated” in NVIDIA and Tesla, and that these expirations represented roughly 10% to 30% of options activity across the nine names launched. He argued that single-name 0DTE and SPX 0DTE serve different trading behaviors and risk profiles, citing differences including cash settlement and European-style exercise for SPX versus physical settlement and American-style exercise for single names. He said Cboe believes the new single-name expirations are additive rather than cannibalistic.

Cash and spot markets growth, plus European clearing initiative

Donohue said cash and spot markets net revenue rose 27% year-over-year, with growth across North America, Europe, and global FX. He highlighted European transaction strength and said the Europe and Asia Pacific segment delivered 24% year-over-year net revenue growth, supported by a 33% increase in net transaction and clearing fees and a 15% rise in non-transaction revenues.

In North American equities, Griebenow said net revenue increased 17% year-over-year, with net transaction and clearing fees up 18% and non-transaction growth including market data fees up 12% and access and capacity fees up 10%.

Global FX also contributed, with Donohue reporting a 22% year-over-year increase in fourth-quarter net revenue, and Griebenow attributing the growth to a 17% increase in average daily notional value and an 8% increase in net capture.

Donohue also provided an update on Cboe’s Securities Financing Transactions (SFT) clearing service in Europe, saying it launched in response to client demand and uses Cboe Clear Europe’s footprint to introduce central clearing into a traditionally bilateral securities lending market. He said first trades occurred in March 2025, the service was clearing “hundreds of new contracts” daily across 15 European settlement locations, and notional outstanding loan values exceeded EUR 1 billion in January 2026.

Data Vantage growth driven mainly by new sales

Data Vantage net revenue increased 9% year-over-year in the fourth quarter, and Donohue said roughly 90% of the growth in market data and access came from new unit and new sales rather than pricing. For the full year, Data Vantage net revenues grew 10%, with management saying market data and access, indices, and risk/market analytics all increased year-over-year.

In response to analyst questions, executives said international demand remained an important driver. Management said about 45% of new data sales in the quarter came from overseas clients, up from about 35% a year ago, and noted that three of the top five recurring sales came from Asia-Pacific clients.

The company also highlighted newer offerings including dedicated cores, timestamping services, and one-minute open/close data. Management said an “option-like dataset” launched early in the year was seeing interest in Asia-Pac, and referenced a mid-year launch tied to a “Cboe clock service.”

2026 outlook, strategic realignment, and capital deployment

Griebenow introduced 2026 guidance calling for mid- to high-single-digit organic net revenue growth for Data Vantage and mid-single-digit total organic net revenue growth. Cboe guided to 2026 adjusted operating expenses of $864 million to $879 million, representing 3.3% growth at the low end and 5.1% at the high end. The company also guided to CapEx of $73 million to $83 million, depreciation and amortization of $56 million to $60 million, and an expected adjusted effective tax rate of 27.5% to 29.5%.

Management said its guidance reflects progress on strategic realignment, including the decision to commence sales processes for Cboe Australia and Cboe Canada, the exit from corporate listings operations, efficiency actions across certain listings and smaller analytics businesses, and the decision to close Cboe Europe Derivatives Exchange (CEDEX) in January 2026. Griebenow said the company continues to operate Canada and Australia “business as usual” and includes their revenue and expense contributions in 2026 guidance until any sale-related changes occur.

The company also discussed investment priorities, including expanding the European SFT clearing capability and product development around event prediction markets. Executives said they are targeting a second-quarter launch for initial securities-based offerings in the prediction market space, subject to regulatory approval and partner readiness, and Griebenow said the 2026 revenue outlook includes a “small contribution” from these new products.

On capital returns, Griebenow said Cboe returned $76 million to shareholders in the fourth quarter via a $0.72 per share dividend, and returned $350 million to shareholders in 2025 through dividends and share repurchases. She said the company ended the year with an adjusted cash position of $2.2 billion and leverage of 0.9x, providing flexibility for investment and shareholder returns.

Separately, Donohue highlighted leadership changes, including Heidi Fischer leading cash and spot markets and Scott Johnston as the new COO, while outgoing COO Chris Isaacson will serve as an advisor through 2026.

About Cboe Global Markets (BATS:CBOE)

Cboe Global Markets, Inc, through its subsidiaries, operates as an options exchange worldwide. It operates through six segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and listing services. The Europe and Asia Pacific segment provides pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services.