REVENUEBeat +190.8%
EPSBeat +22.1%
Actuals vs. estimates
| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| RevenueTotal revenues | $376.2M | $129.4M | ▲ Beat +190.8% |
| EPS(non-GAAP adjusted diluted) | $0.45 | $0.37 | ▲ Beat +22.1% |
Highlights & what matters
- Total revenues of $376.2 million beat the $129.4 million estimate, and adjusted diluted EPS of $0.45 beat the $0.37 estimate. The revenue estimate sits near net revenue, which grew 20% to $131.0 million, so most of the revenue gap reflects gross versus net reporting.
- Guidance: full-year 2026 adjusted operating expenses lowered to $254 million to $257 million from $260 million to $270 million; capital expenditures raised to $43 million to $46 million from $40 million to $45 million; adjusted effective tax rate lowered to 26% to 28% from 27% to 29%.
- Operating leverage is the highlight: Adjusted EBITDA rose 47% to $70.8 million and margin expanded to 54% from 44%, as adjusted operating expenses of $60.3 million fell 2%. Options net revenue grew 19% to $112.6 million, with average daily volume up 15.2% to 11.1 million contracts and market share at 17.4%.
- The balance sheet is a cushion: cash and cash equivalents of $698.9 million against total debt of $1.5 million.
- The one thing that matters: This is a volume-and-cost quarter: options volume and fee increases drove 20% net revenue growth while costs fell, and the lowered expense guide says that leverage persists. The weak spot is pricing, with options revenue per contract down 4.9%, and the businesses outside options are still small or loss-making.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Net revenue | $131.0 million | $109.5 million | 20% |
| Adjusted EBITDA | $70.8 million | $48.0 million | 47% |
| Adjusted EBITDA margin | 54% | 44% | +>1,000 bps YoY |
| Adjusted diluted EPS | $0.45 | $0.42 | 7% |
| Options net revenue | $112.6 million | $94.5 million | 19% |
| MIAX options revenue per contract | $0.098 | $0.103 | declined 4.9% |
Guidance changes
| Item | New guidance | Prior guidance |
|---|---|---|
| FY 2026 Adjusted operating expenses | between $254 million and $257 million | between $260 million and $270 million |
| FY 2026 Share-based compensation expense | between $30 million and $32 million | between $29 million and $32 million |
| FY 2026 Capital expenditures, including capitalization of internally developed software | between $43 million and $46 million | between $40 million and $45 million |
| FY 2026 Depreciation and amortization expense | between $36 million and $38 million | between $35 million and $39 million |
| FY 2026 Adjusted effective tax rate post valuation allowance release | between 26% and 28% | between 27% and 29% |
Quality of earnings
- Adjusted and GAAP earnings are close, but for offsetting reasons. GAAP net income of $52.5 million includes a $9.8 million unrealized gain on Pyth tokens; adjusted earnings of $50.1 million exclude it while adding back a $6.3 million provision for CAT costs no longer expected to be recoverable and $7.5 million of share-based compensation.
- Per-share growth lags because of dilution. Adjusted earnings rose 25% but adjusted diluted EPS only 7%, to $0.45 from $0.42, as the adjusted diluted share count rose to 110.8 million from 96.1 million.
- The GAAP swing is mostly the 2025 base. The prior-year net loss of $102.1 million carried a $107.7 million loss on debt extinguishment and $29.1 million of share-based compensation, against $7.5 million this year.
Gotchas & watch items
- Pricing is slipping: options revenue per contract fell 4.9% to $0.098 from $0.103 even as volume rose 15.2%.
- Equities share is shrinking: MIH equities ADV fell 41.0% to 111 million shares and market share to 0.7% from 1.1%, though net revenue rose 53% to $6.7 million on better capture.
- Futures remain loss-making: Futures Adjusted EBITDA was $(8.4) million, and financial futures carry a negative revenue per contract of $(1.428).
- Non-transaction revenue is a quiet strength: access fees rose to $36.9 million from $27.1 million and market data fees to $13.9 million from $10.7 million, helped by 2026 fee increases.