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Tradeweb Markets (TW)
NASDAQ:TW
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Tradeweb Markets (TW) AI Stock Analysis

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TW

Tradeweb Markets

(NASDAQ:TW)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
$115.00
â–²(15.20% Upside)
Action:Reiterated
Date:08/03/26
The score is driven primarily by strong financial performance (high profitability, low leverage, and strong cash generation) and a constructive earnings call highlighting ongoing growth and margin strength. These positives are tempered by a mixed technical backdrop (below longer-term moving averages) and a valuation that is fair but not clearly discounted, with only a modest dividend yield.
Positive Factors
Strong cash generation
Sustained FCF north of $1B and a $2.1B cash balance provide durable financial flexibility. High free cash flow funds buybacks, dividends and strategic investments without levering the balance sheet, supporting long‑term capital allocation and resilience through market cycles.
Negative Factors
Fee‑per‑million pressure and product mix
Structural mix shifts toward lower‑fee products and geographic mix dilute realized pricing and could compress revenue per trade over time. If trends persist, volume growth will need to outpace fee declines to sustain revenue growth, pressuring long‑term topline durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained FCF north of $1B and a $2.1B cash balance provide durable financial flexibility. High free cash flow funds buybacks, dividends and strategic investments without levering the balance sheet, supporting long‑term capital allocation and resilience through market cycles.
Read all positive factors

Tradeweb Markets (TW) vs. SPDR S&P 500 ETF (SPY)

Tradeweb Markets Business Overview & Revenue Model

Company Description
Tradeweb Markets Inc. is a global provider that develops and manages sophisticated electronic trading platforms across the Americas, Europe, the Middle East, Africa, and Asia Pacific. These digital venues facilitate transactions in a diverse array...
How the Company Makes Money
Tradeweb primarily makes money by charging transaction-based fees when clients execute trades on its electronic platforms. Fees are generally driven by trading volume and product mix and are assessed based on factors such as instrument type, execu...

Tradeweb Markets Earnings Call Summary

Earnings Call Date:Jul 30, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational momentum: second-highest quarterly revenue ($559M, +9% YoY), accelerated June revenue (+20% YoY), robust international growth (+14% YoY), meaningful gains across swaps, ETFs and credit protocols, healthy margins (adjusted EBITDA margin 54.4%) and strong cash generation (> $1B FCF TTM, $2.1B cash). Management is balancing margin expansion with targeted investments in AI, data infrastructure and frontier markets, and returning capital via dividends and buybacks. Key negatives include fee‑per‑million pressure from product mix shifts, a 22% drop in retail credit, rising operating costs (notably tech and occupancy), and competitive/market‑structure risks (e.g., ICE/MarketAxess transaction). On balance, the positives — diversified revenue growth, market share gains (swaps and U.S. institutional Treasuries), product automation adoption, and strong cash generation — outweigh the lowlights, though management noted areas of vigilance and flexibility on spending and capital allocation.
Positive Updates
Strong Top-Line Performance and Acceleration
Q2 revenue of $559 million, up 9% year-over-year (8.3% constant currency); second-highest quarterly revenue in company history. First half revenue nearly $1.2 billion (approaching full-year 2022 total). June revenue accelerated to +20% year-over-year, and July-to-date average daily revenue growth was up low‑teens vs. July 2025.
Negative Updates
Fee per Million Pressures and Mix Shifts
Average fees per million declined for key products: long‑tenor swaps -10.3% (mix shift within currencies and lower duration) and cash credit -11.4% (mix shift away from higher‑fee munis and retail credit toward lower‑fee European credit and portfolio trading).
Read all updates
Q2-2026 Updates
Negative
Strong Top-Line Performance and Acceleration
Q2 revenue of $559 million, up 9% year-over-year (8.3% constant currency); second-highest quarterly revenue in company history. First half revenue nearly $1.2 billion (approaching full-year 2022 total). June revenue accelerated to +20% year-over-year, and July-to-date average daily revenue growth was up low‑teens vs. July 2025.
Read all positive updates
Company Guidance
Tradeweb reiterated that 2026 adjusted expenses should trend toward the top half of the $1.10–$1.16 billion guidance range (implying ~11–14% full‑year expense growth) while still targeting adjusted EBITDA and operating margin expansion vs. 2025 (with more muted incremental margin improvement); Q2 adjusted EBITDA margin was 54.4% (up 43 bps vs. 2025 full year), Q2 adjusted expenses rose 9.4% (9.9% constant currency) after H1 expense growth of 14.8%, and management said ~45% of expenses are variable so investments in data infrastructure (including a ~$5.2M step‑up), AI/client innovations and frontier markets can be moderated; they closed Q2 with ~$2.1B cash, trailing‑12‑month free cash flow >$1B (+~13% YoY), net interest income ≈$18M, ~1.6B Canton Coins (fair value ≈$230M), declared a $0.14 quarterly dividend (+16.7% YoY), repurchased ~1.9M shares for $189M with $334M authorization remaining, and expect slower expense growth in H2.

Tradeweb Markets Financial Statement Overview

Summary
Excellent fundamentals: very strong profitability (high margins), conservative leverage (very low debt-to-equity), and strong operating/free cash flow. Key watch items are the recent dip in free cash flow growth and whether the unusually elevated TTM revenue growth rate is sustainable.
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.21B2.05B1.73B1.34B1.19B1.08B
Gross Profit1.50B1.38B1.13B877.91M756.36M669.19M
EBITDA1.52B1.43B978.68M681.10M617.82M542.88M
Net Income897.23M812.79M501.51M364.87M309.34M226.83M
Balance Sheet
Total Assets8.25B8.19B7.27B7.06B6.26B5.99B
Cash, Cash Equivalents and Short-Term Investments2.06B2.08B1.34B1.71B1.26B973.05M
Total Debt150.34M278.34M35.75M49.08M27.94M24.33M
Total Liabilities912.69M1.00B869.11M1.13B713.82M681.24M
Stockholders Equity6.63B6.51B5.80B5.37B4.95B4.65B
Cash Flow
Free Cash Flow1.05B1.13B856.78M684.33M572.73M526.67M
Operating Cash Flow1.14B1.17B897.74M746.09M632.82M578.02M
Investing Cash Flow-180.88M-126.53M-969.19M-132.76M-60.10M-259.11M
Financing Cash Flow-534.64M-307.48M-290.26M-168.17M-276.70M-136.10M

Tradeweb Markets Technical Analysis

Technical Analysis Sentiment
Positive
Last Price99.83
Price Trends
50DMA
99.91
Positive
100DMA
107.75
Negative
200DMA
108.79
Negative
Market Momentum
MACD
0.57
Negative
RSI
53.01
Neutral
STOCH
58.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW, the sentiment is Positive. The current price of 99.83 is below the 20-day moving average (MA) of 100.96, below the 50-day MA of 99.91, and below the 200-day MA of 108.79, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 58.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TW.

Tradeweb Markets Risk Analysis

Tradeweb Markets disclosed 56 risk factors in its most recent earnings report. Tradeweb Markets reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Tradeweb Markets Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$23.52B23.9313.78%0.52%14.04%60.95%
78
Outperform
$33.81B15.0518.32%1.25%7.75%12.12%
77
Outperform
$5.71B19.1224.74%2.64%3.68%42.71%
73
Outperform
$39.20B34.7820.51%0.36%16.12%31.49%
72
Outperform
$14.74B11.4426.62%2.62%52.73%52.01%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
60
Neutral
$12.59B14.728.51%2.86%29.74%35.56%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TW
Tradeweb Markets
102.62
-31.61
-23.55%
IBKR
Interactive Brokers
87.83
21.95
33.32%
JEF
Jefferies
56.62
-0.58
-1.02%
MKTX
Marketaxess Holdings
162.53
-23.29
-12.53%
RJF
Raymond James Financial
176.56
13.86
8.52%
FUTU
Futu Holdings
109.02
-48.01
-30.57%

Tradeweb Markets Corporate Events

Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Tradeweb Stockholders Approve Governance and Legal Amendments
Positive
May 20, 2026
At its May 19, 2026 annual meeting, Tradeweb Markets stockholders approved amendments to the company’s certificate of incorporation that expand exculpation protections to certain officers in limited circumstances and introduce a federal foru...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 03, 2026