MarketAxess reported second-quarter 2026 revenue of $218.4 million, essentially unchanged from $219 million a year earlier, even as the mix of business shifted sharply toward services and portfolio trading.
Services revenue rose 14% to a record $31.5 million from $27.7 million. Within that total, information services climbed 23% to $16.1 million, post-trade services increased 5% to $11.6 million, and technology services gained 8% to $3.8 million.
Commission revenue fell 3% to $186.9 million from $192.4 million. The company said U.S. credit commission revenue dropped 9%, while emerging markets commission revenue increased 6%. Total credit commission revenue declined 5% to $168.4 million, including $34.1 million in fixed-distribution fees, from $176.6 million a year earlier. Rates commission revenue was flat at $8.1 million, and other commission revenue jumped 46% to $10.3 million from $7.1 million, helped by the inclusion of RFQ-hub.
Trading activity was stronger in several strategic channels. Block trading ADV rose 11% to $5.9 billion, with U.S. credit up 8% and emerging markets up 24%. Portfolio trading ADV increased 33% to a record $2.0 billion, led by record U.S. high-grade ADV up 41%, record U.S. high-yield ADV up 93%, record municipal bonds ADV up 154%, and emerging markets up 44%. Dealer-initiated ADV fell 3% to $1.7 billion, though mid-X ADV increased 151% to record levels.
Expense growth remained modest. Total expenses increased 1% to $128.5 million from $127.0 million. Excluding notable items, expenses were $127.0 million, up 3% from $123.8 million. Operating margin narrowed to 41.1% from 41.9%, while operating margin excluding notable items fell to 41.9% from 43.7%.
Net income declined to $68.3 million from $71.2 million, and diluted EPS edged up to $1.93 from $1.91. Excluding notable items, net income was $68.9 million versus $73.8 million, and diluted EPS was $1.95 versus $2.00.
On a sequential basis, revenue fell 6% from $233 million in the first quarter, while expenses declined 3% from $132 million. Diluted EPS dropped to $1.93 from $2.20, and operating margin narrowed from 43.2% to 41.1%.
For the first half of 2026, revenue rose 6% to $451.8 million from $427.8 million, expenses increased 5% to $260.7 million from $247.7 million, and net income climbed to $146.3 million from $85.9 million. Diluted EPS for the six months rose to $4.13 from $2.31.
Cash, cash equivalents, corporate bond investments and U.S. Treasury investments totaled $404.8 million at June 30, down from $678.9 million at year-end 2025. Borrowings under the credit facility fell to $112.0 million from $220.0 million at year-end, and were down further to $92.0 million as of July 29. The board had $205 million remaining under share repurchase authorization. Headcount was 863, down from 881 a year earlier and up slightly from 859 at March 31. Today the company's shares have moved 29.79% to a price of $163.185. For the full picture, make sure to review MARKETAXESS HOLDINGS INC's 8-K report.
