Cboe Global Markets, Inc.

Cboe reported second-quarter net revenue of $732 million, up 25% year over year, and adjusted diluted EPS of $3.56, up 45%. Adjusted operating EBITDA was $528 million, up 37%, and adjusted operating expenses were $217 million, up 2%, with adjusted operating EBITDA margin expanding 6.4 percentage points to 72.2%. By segment, derivatives net revenue increased 30% to $413 million; cash and spot markets net revenue rose 22%; Data Vantage revenue increased 15%; and futures revenue rose 2%. For 2026, Cboe now expects total organic net revenue growth in the mid-to-high teens, Data Vantage organic net revenue growth in the low teens, adjusted operating expenses of $838 million-$853 million, CapEx of $98 million-$108 million, and an effective tax rate of 27.5%-29.5%. The company also expects $40 million-$50 million of annualized expense savings from strategic realignment, with $20 million-$25 million expected to hit in 2026, and said net interest income net of expense should add $8 million-$9 million in the third quarter.

Craig Donohue struck an upbeat, expansion-focused tone, saying the quarter showed Cboe was delivering on its repositioning strategy and building a stronger foundation for core businesses. He highlighted record derivatives performance, stronger retail engagement in options, and the launch of Cboe Predicts and the filing for company KPI event contracts as early steps toward a new growth chapter. He also emphasized longer-term initiatives like 23x5 cash equities, eventual 24x7 trading, and expanded clearing capabilities as enablers of future product innovation.

Jill Griebenow focused on the strong financial conversion in the quarter: $732 million of net revenue, $3.56 of adjusted EPS, $528 million of adjusted operating EBITDA, and a 72.2% EBITDA margin. She noted adjusted operating expenses of $217 million, with the increase tied mainly to bonus accruals, travel and promotional spending, while also updating 2026 guidance upward for revenue growth and CapEx. She highlighted adjusted cash of $2.3 billion, leverage of 0.7x, $33 million of share repurchases, a $76 million dividend, and the planned repayment of a $650 million debt tranche in early 2027 with cash on hand.

Analysts pressed management on whether Cboe’s options franchise overlaps with perpetual futures and how much retail demand is sophisticated versus simple directional trading. Management said perps are a complementary product, not a substitute, because options offer defined risk, convexity, and use cases like hedging and income generation; Rob Hocking added that more than 95% of 0DTE trades are defined-risk strategies, with 50%-55% spreads. Questions also focused on the newly filed company KPI event contracts: management said the SEC process is progressing smoothly, pricing is still being finalized, and no meaningful 2026 revenue has been included in guidance. On adoption, management said demand is already coming from retail broker platforms and that the intermediated model and clearing build-out should help scale the product.