Tradeweb Earnings: Increasing Market Share Supports Solid Revenue Growth

Wide-moat-rated Tradeweb Markets reported solid second-quarter results roughly in line with our expectations, as increasing market share in interest-rate swaps and U.S. investment-grade bonds was offset by lower trading volume in mortgage and high-yield bonds. Revenue increased 4.5% year over year but declined 5.7% from a strong first quarter, to $310.6 million. Net income increased 24.9% from last year to $101.9 million, as Tradeweb benefited from higher interest rates on its substantial $1.4 billion cash hoard. As we incorporate these results, we do not plan to materially alter our $84 fair value estimate.