TradeWeb (TW) Q3 2025: International Revenue Climbs 25% as Electronification Drives Global Expansion
TradeWeb’s third quarter saw international revenues surge 25%, highlighting the firm’s accelerating global diversification and electronification strategy. Despite subdued volatility and tougher comps, the company delivered double-digit growth across key asset classes and deepened its digital asset footprint. Management signaled ongoing investments in technology and data, while positioning the platform to capture further share as market structure evolves into 2026.
Summary
- Global Reach Accelerates: International business now drives over half of revenue growth, with emerging markets rapidly scaling.
- Electronification Momentum: New protocols and digital asset initiatives expand TradeWeb’s role in voice-to-electronic migration.
- Strategic Investments Persist: Continued spend in AI, data, and infrastructure positions the company for long-term share gains.
Performance Analysis
TradeWeb posted 13% year-over-year revenue growth for the quarter, with international revenues up 25% and now contributing 42% of the total. Organic revenue growth of 17% year-to-date underscores broad-based execution, even as the macro backdrop featured historically low volatility and tighter credit spreads. The rates segment remained the core engine, producing its second-highest revenue quarter on record, fueled by swaps and government bonds, while mortgages set a new revenue high.
Equities and digital assets stood out, with equities revenue up 17% and digital initiatives driving a 52% increase in ‘Other’ revenues. The LSAG market data agreement renewal is set to add incremental, recurring revenue with a 9% annual uplift. Fee per million trends reflected mix shifts, as lower-fee products gained share, but swaps and select equity products benefited from higher fee realization. Adjusted EBITDA margin expanded by 54 basis points, demonstrating operating leverage despite ongoing investment in tech and headcount.
- International Expansion Delivers: Over half of revenue growth now comes from non-U.S. markets, with Asia and EMs gaining share.
- Rates and Swaps Outperform: Swaps revenue jumped over 30% YoY, with core risk share hitting record levels.
- Digital Assets Gain Traction: $5M in year-to-date digital revenue and $56M in Canton coin assets highlight early monetization.
Despite muted U.S. Treasury volatility, TradeWeb maintained positive revenue growth in institutional channels and is rebounding market share, especially as the firm targets complex, voice-driven package trades with new electronic solutions. The company’s broad diversification, both by geography and asset class, continues to buffer it against single-market headwinds.
Executive Commentary
"We have a data-driven Fed that reacts to each new data point, and that in turn is influencing how our clients think about risk and express it through our platform. Across our client base, a clear theme is emerging, what I'd like to call mechanized flow. Put simply, our clients are becoming increasingly systematic and data-driven in how they trade, and that evolution aligns perfectly with how our global platform is built."
Billy Hult, CEO
"The scalability and variable nature of our expense base allow us to continue to invest for growth and grow margins... Technology and communication costs increased 39%, primarily due to our continued investments in data strategy and infrastructure."
Sarah Ferber, CFO
Strategic Positioning
1. Electronification of Voice Markets
TradeWeb’s core strategy is to convert traditionally voice-traded markets—especially in rates and credit—into electronic workflows. Management emphasized that the majority of global rates and swaps still transact by phone, leaving a substantial $500 million annual revenue opportunity. The launch of the first fully electronic swaption package trading protocol and new multi-asset package trade capabilities are designed to capture this migration.
2. International and Emerging Market Penetration
International business is now a primary growth engine, delivering a 25% YoY revenue increase and representing over half of total growth. Asia and emerging markets are pacing at $100 million in annual revenue—triple last year’s level—and TradeWeb’s electronic solutions are driving adoption in regions historically dominated by voice trading. The successful launch of an electronic bond ATS in Saudi Arabia signals further global reach.
3. Digital Asset and Data Strategy
TradeWeb is monetizing digital asset infrastructure, with $5 million in validator revenue and $56 million in Canton coin assets. The recently renewed LSAG market data agreement will deliver a 9% annual uplift, and management expects further upside as proprietary data products are commercialized. Digital rails, tokenization, and 24-7 trading are seen as natural extensions of TradeWeb’s electronification mission.
4. Automation and AI Integration
Automated trading protocols such as AIX are driving significant volume increases, particularly in ETFs and global credit. AI-driven pricing and workflow enhancements are deepening client integration and supporting the transition to more systematic, data-driven trading across asset classes.
5. Disciplined Capital Allocation and M&A
With $1.9 billion in cash, TradeWeb remains focused on organic investment in technology, data, and emerging markets, while evaluating inorganic opportunities in adjacent asset classes like institutional crypto and private credit. Share repurchases are under active consideration given recent share price weakness, but management maintains a high bar for capital deployment.
Key Considerations
This quarter reinforced TradeWeb’s ability to deliver growth in both volatile and calm market conditions, leveraging its global platform and diversified product suite. Investors should weigh the following:
Key Considerations:
- Voice-to-Electronic Migration Pace: The speed of electronification in rates, swaps, and credit remains a central long-term lever for revenue expansion.
- International Revenue Mix: Sustained double-digit growth outside the U.S. reduces dependency on any single market and supports margin stability.
- Digital Asset Monetization: Early revenue and asset accumulation in digital initiatives provide optionality, but regulatory and adoption risks remain.
- Expense Discipline vs. Growth Investment: Margin expansion is balanced by ongoing technology, data, and headcount investments, with management signaling continued double-digit expense growth in key areas.
- Market Data and Recurring Revenue: The LSAG agreement renewal and proprietary data product pipeline could become a more material profit driver in coming periods.
Risks
Persistent low volatility, especially in U.S. Treasuries, could continue to dampen short-term trading activity and fee per million realization. Regulatory shifts, particularly in digital assets and global market structure, may impact TradeWeb’s ability to scale new protocols. Execution risk exists as the company pursues aggressive global and digital expansion, and competitive pressure from both legacy voice and new electronic entrants remains acute.
Forward Outlook
For Q4 2025, TradeWeb guided to:
- Adjusted expenses of $1.0–1.025 billion for the full year, with continued double-digit growth in technology and communications through 2026.
- Sequential increases in occupancy and G&A, reflecting new HQ costs and FX losses.
For full-year 2025, management maintained a positive margin outlook:
- Adjusted EBITDA margin expected to exceed 2024, though expansion will moderate as growth investments persist.
Management highlighted:
- Ongoing investments in AI, data infrastructure, and digital assets as margin-accretive long-term bets.
- Revenue growth trending about 9% higher year-over-year in October, with international growth near 20%.
Takeaways
TradeWeb’s Q3 performance illustrates the resilience of its global, multi-asset platform in a subdued volatility environment.
- International and digital expansion are now core profit drivers, reducing reliance on U.S. rates and positioning the firm for secular share gains.
- Management’s disciplined capital allocation and focus on technology investment support both near-term margin stability and long-term revenue runway.
- Investors should monitor the pace of electronification, especially in swaps and credit, as well as the monetization trajectory of digital asset and data initiatives into 2026.
Conclusion
TradeWeb continues to execute on its strategy of global expansion and electronification, capitalizing on secular trends in market structure and digital asset adoption. The firm’s diversified growth engines and disciplined investment approach position it well for the evolving fixed income and ETF landscape.
Industry Read-Through
TradeWeb’s results confirm the accelerating shift toward electronic trading and data-driven workflows across global fixed income and ETF markets. Legacy voice markets remain vulnerable as new protocols and automation gain traction, while digital asset rails and tokenization are moving from concept to monetization. Peers in electronic trading, market data, and digital infrastructure should note the growing importance of international and emerging markets revenue, as well as the need for persistent investment in AI and data to maintain competitive edge. Traditional brokers and exchanges face sustained pressure to modernize or risk share loss as clients demand more efficient, systematic execution across asset classes and geographies.