Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with genuine growth potential can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - CBOE Global (CBOE) is currently highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [4] - CBOE's historical EPS growth rate is 14.2%, with projected EPS growth of 15.6% this year, surpassing the industry average of 12.1% [5] Group 3: Asset Utilization - The asset utilization ratio (sales-to-total-assets ratio) is an important metric for growth stocks, indicating efficiency in generating sales [6] - CBOE has an S/TA ratio of 0.53, significantly higher than the industry average of 0.25, indicating better asset utilization [6] Group 4: Sales Growth - CBOE is also attractive in terms of sales growth, with expected sales growth of 11.3% this year compared to the industry average of 6.5% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - CBOE's current-year earnings estimates have been revised upward, with a 2.9% increase in the Zacks Consensus Estimate over the past month [9] Group 6: Overall Positioning - CBOE has achieved a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [11]

Core Insights - CBOE Global reported a revenue of $605.5 million for the quarter ended September 2025, reflecting a year-over-year increase of 13.8% and surpassing the Zacks Consensus Estimate by 2.14% [1] - The earnings per share (EPS) for the quarter was $2.67, up from $2.22 in the same quarter last year, resulting in an EPS surprise of 5.53% over the consensus estimate of $2.53 [1] Financial Performance Metrics - Average Daily Volume for Index options was 4.86 million, slightly above the analyst estimate of 4.8 million [4] - Average Revenue Per Contract for Futures was $1.75, slightly below the estimate of $1.76 [4] - Average Daily Volume for Options was 18.78 million, exceeding the estimate of 18.12 million [4] - Average Daily Volume for Multi-listed options was 13.91 million, above the estimate of 13.32 million [4] - Total revenues from Access and capacity fees were $103.9 million, surpassing the estimate of $101.69 million [4] - Market data fees totaled $83.7 million, exceeding the average estimate of $81.17 million [4] - Net transaction and clearing fees generated $446.6 million, representing a 14.3% year-over-year increase and exceeding the estimate of $435.53 million [4] - Futures transaction and clearing fees were $23.8 million, below the estimate of $29.67 million, reflecting a year-over-year decline of 24.9% [4] - Global FX transaction and clearing fees were $19.6 million, above the estimate of $18.8 million, marking a year-over-year increase of 12.6% [4] - Total regulatory fees were $11.8 million, significantly below the estimate of $115.14 million [4] - Total transaction and clearing fees reached $919.9 million, exceeding the estimate of $785.52 million [4] - Net transaction and clearing fees for Global FX were $19.1 million, slightly above the estimate of $18.53 million [4] Stock Performance - CBOE shares have returned -1.9% over the past month, while the Zacks S&P 500 composite has increased by 2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Cboe Global Markets, Inc. (CBOE) reported third-quarter 2025 adjusted earnings of $2.67 per share, exceeding the Zacks Consensus Estimate by 5.5% and reflecting a 20% year-over-year increase [1][8] - The company achieved record total adjusted revenues of $605.5 million, a 14% year-over-year increase, driven by strong performance in derivatives markets, Data Vantage, and cash and spot markets [2][8] Operational Details - Options revenues increased by 19% year over year to $380.8 million, attributed to growth in market data, access and capacity fees, and higher net transaction and clearing fees due to increased average daily volume [2] - North American Equities revenues rose 6% year over year to $103.5 million, while Europe and Asia Pacific revenues surged 24% to $69.1 million [3] - Futures net revenues decreased by 22% year over year to $29.6 million, primarily due to lower net transaction and clearing fees [3] - Global FX net revenues increased by 13% year over year to $22.5 million, driven by higher net transaction and clearing fees [4] Financial Update - CBOE exited the third quarter with cash and cash equivalents of $1.5 billion, a 62.6% increase from the end of 2024 [6] - Total assets rose 16.4% year over year to $9.1 billion, while total shareholders' equity increased by 14.1% to $4.9 billion [6] Share Repurchase and Dividend Update - In Q3, CBOE paid out cash dividends totaling $75.7 million, or 72 cents per share, and had approximately $614.5 million remaining under its existing share repurchase authorizations [9] Guidance Update - CBOE expects organic total net revenue growth in the low double-digit to mid-teens range for 2025, an increase from previous guidance of high single-digit growth [10] - Adjusted operating expenses are anticipated to be between $827 million and $842 million for 2025, down from earlier guidance [11] - Capital expenditures are projected to be in the range of $73 million to $83 million for 2025, also a reduction from previous estimates [12]

Core Insights - CBOE Global reported quarterly earnings of $2.67 per share, exceeding the Zacks Consensus Estimate of $2.53 per share, and up from $2.22 per share a year ago [1] - The company achieved revenues of $605.5 million for the quarter, surpassing the Zacks Consensus Estimate by 2.14%, compared to $532 million in the same quarter last year [3] Earnings Performance - The earnings surprise for the quarter was +5.53%, with the company having surpassed consensus EPS estimates three times over the last four quarters [2] - CBOE's earnings for the previous quarter were $2.46 per share, against an expectation of $2.42, resulting in a surprise of +1.65% [2] Stock Performance - CBOE shares have increased approximately 21.2% since the beginning of the year, outperforming the S&P 500's gain of 16% [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.35 on revenues of $572.14 million, and for the current fiscal year, it is $9.84 on revenues of $2.3 billion [8] - The Zacks Industry Rank places the Securities and Exchanges sector in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for the industry [9]

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $1,141.7 million, up from $1,055.7 million in the same period of 2024, representing a growth of 8.1%[22] - Net income for the three months ended September 30, 2025, was $300.8 million, compared to $218.5 million for the same period in 2024, reflecting a year-over-year increase of 37.6%[22] - Operating income for the nine months ended September 30, 2025, reached $1,063.3 million, a significant increase from $799.9 million in the same period of 2024, marking a growth of 32.9%[22] - Comprehensive income for the nine months ended September 30, 2025, was $859.5 million, compared to $595.6 million for the same period in 2024, reflecting a year-over-year increase of 44.4%[24] - Net income for the nine months ended September 30, 2025, was $786.5 million, a 38.5% increase from $568.4 million in the same period of 2024[32] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $1,496.7 million, up from $920.3 million at December 31, 2024, indicating a substantial increase of 62.6%[20] - Total assets increased to $9,068.6 million as of September 30, 2025, compared to $7,789.1 million at December 31, 2024, reflecting a growth of 16.4%[20] - The company’s total current assets increased to $3,742.0 million as of September 30, 2025, compared to $2,479.1 million at December 31, 2024, indicating a growth of 50.9%[20] - Total cash, cash equivalents, and restricted cash and cash equivalents at the end of the period was $3,170.0 million, compared to $2,802.2 million at the end of the previous year[32] Liabilities and Equity - Total liabilities as of September 30, 2025, were $4,183.7 million, up from $3,509.5 million at December 31, 2024, representing an increase of 19.2%[20] - As of September 30, 2025, total stockholders' equity increased to $4,884.9 million, up from $4,279.6 million at the end of 2024, reflecting a growth of approximately 14.1%[27] - The company’s retained earnings increased to $3,394.1 million as of September 30, 2025, compared to $2,815.9 million at December 31, 2024, a growth of 20.5%[20] Revenue Streams - Transaction and clearing fees for the three months ended September 30, 2025, amounted to $919.9 million, up from $725.9 million in the prior year, indicating a growth of about 26.7%[55] - Access and capacity fees increased to $103.9 million in Q3 2025 from $94.2 million in Q3 2024, reflecting a growth of approximately 10.0%[55] - Market data fees for the three months ended September 30, 2025, totaled $83.7 million, compared to $73.5 million in the same quarter of 2024, marking a year-over-year increase of about 13.5%[55] - For the nine months ended September 30, 2025, transaction and clearing fees totaled $2,620.2 million, compared to $2,142.0 million in the same period of 2024, reflecting an increase of 22.3%[58] Expenses and Costs - The cost of revenues for the three months ended September 30, 2025, was $536.2 million, compared to $523.7 million in the same period of 2024, a slight increase of 2.4%[169] - Depreciation and amortization expenses for the three months ended September 30, 2025, totaled $30.9 million, compared to $31.8 million in the same period of 2024, a decrease of 2.8%[169] - Other segment operating expenses for the three months ended September 30, 2025, were $204.3 million, compared to $192.8 million in the same period of 2024, an increase of 5.7%[169] Shareholder Returns - Cash dividends on common stock increased to $0.72 per share in the third quarter of 2025, up from $0.63 per share in the previous quarter, marking a 14.3% increase[27] - The aggregate cash dividend payout for the nine months ended September 30, 2025, is not specified but follows the trend of increased dividends[210] - The Company expects to continue paying dividends, subject to the discretion of its Board of Directors and various financial considerations[211] Regulatory and Compliance - Cboe Trading and BIDS Trading were required to maintain net capital of at least $0.1 million as of September 30, 2025, under SEC regulations[178] - Cboe Clear Europe must maintain a minimum amount of capital as per EMIR regulations to cover operational and market risks[181] - The company is in compliance with financial covenants, maintaining a minimum consolidated interest coverage ratio of not less than 4.00 to 1.00 as of September 30, 2025[110] Stock and Equity Transactions - The Company repurchased 21,063,700 shares of common stock at an average cost of $80.02 per share, totaling $1.7 billion since the inception of the share repurchase program[206] - The Company purchased 95,036 shares of common stock totaling $20.5 million to satisfy tax obligations upon the vesting of restricted stock during the nine months ended September 30, 2025[196] - The total unrecognized compensation costs related to restricted stock, RSUs, and PSUs as of September 30, 2025, amounted to $77.5 million, expected to be recognized over a weighted average period of 2.0 years[200]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if they have an ad-blocker enabled [1]

Financial Performance - Cboe reported record quarterly net revenue of $605.5 million, a 14% increase year-over-year[3] - Total revenues for Q3 2025 reached $1,141.7 million, a 8.1% increase from $1,055.7 million in Q3 2024[41] - Net income for Q3 2025 was $300.8 million, up 37.8% from $218.5 million in Q3 2024[41] - Operating income increased to $370.3 million in Q3 2025, compared to $307.4 million in Q3 2024, reflecting a 20.5% growth[41] - Basic earnings per share for Q3 2025 were $2.86, a 37.5% increase from $2.08 in Q3 2024[41] - Adjusted diluted earnings per share (EPS) for Q3 2025 was $2.67, compared to $2.22 in Q3 2024, reflecting a 20.3% increase[48] - Adjusted earnings for the nine months ended September 30, 2025, reached $800.7 million, a 16.6% increase compared to $686.8 million in the same period of 2024[48] Revenue Breakdown - Derivatives net revenue rose 15% year-over-year, driven by multiple volume records in the options business[4] - Cash and Spot Markets net revenue grew 14% year-over-year, while Data Vantage net revenue increased by 12%[4] - Global FX net revenue increased 13% to $22.5 million, with an average daily notional value traded of $49.9 billion, up 3% year-over-year[13] - Record Options net revenue reached $380.8 million, an increase of $59.9 million, or 19 percent, from Q3 2024, driven by a 26 percent rise in total options average daily volume (ADV)[14] - N.A. Equities net revenue was $103.5 million, a 6 percent increase from Q3 2024, despite a 3 percent decline in net transaction and clearing fees[14] - Europe and APAC net revenue increased by $13.5 million, or 24 percent, to $69.1 million from Q3 2024, with European Equities average daily notional value (ADNV) traded at €11.7 billion, up 26 percent[14] Guidance and Projections - The company is increasing its 2025 organic total net revenue growth guidance to 'low double-digit to mid-teens' from 'high single-digit'[5] - Organic total net revenue growth is projected to be in the 'low double-digit to mid-teens' range for 2025, an increase from previous guidance of 'high single-digit'[20] - Adjusted operating expenses are expected to be between $827 million and $842 million in 2025, down from prior guidance of $832 million to $847 million[20] Expenses and Liabilities - Total operating expenses for Q3 2025 were $235.2 million, a 5% increase from Q3 2024[10] - The annualized run-rate impact of business review decisions is estimated to result in a 3% reduction in net revenue and an 8-10% reduction in adjusted operating expenses[8] - The company’s total liabilities increased to $4,183.7 million as of September 30, 2025, compared to $3,509.5 million at December 31, 2024, a 19.2% increase[42] Cash and Dividends - As of September 30, 2025, the company had cash and cash equivalents of $1,496.7 million and total debt of $1,442.4 million[17] - The company paid cash dividends of $75.7 million, or $0.72 per share, with approximately $614.5 million remaining under its share repurchase authorizations[17] - Cash and cash equivalents rose to $1,496.7 million as of September 30, 2025, compared to $920.3 million at December 31, 2024, marking a 62.5% increase[42] Market Share and Volume - Cboe's Options exchanges achieved a total market share of 30.9 percent in Q3 2025, up from 30.5 percent in Q3 2024[14] - Total industry average daily volume (ADV) for options reached 60,798 thousand in Q3 2025, up from 57,203 thousand in Q2 2025, representing a 4.0% increase[31] - The company's total options ADV was 18,775 thousand in Q3 2025, compared to 17,301 thousand in Q2 2025, reflecting an 8.5% growth[31] - The market share for total options increased to 30.9% in Q3 2025 from 30.2% in Q2 2025[31] - U.S. equities exchange market share decreased to 9.8% in Q3 2025 from 10.5% in Q2 2025[31] Tax and Adjustments - The effective tax rate on adjusted earnings for the full year 2025 is expected to be in the range of 28.5 to 30.5 percent[20] - Income tax expense for Q3 2025 was $129.3 million, an increase from $90.5 million in Q3 2024[48] - The company reported an adjusted income tax rate of 30.4% for Q3 2025, compared to 29.2% in Q3 2024[48] Other Financial Metrics - Adjusted operating margin for Q3 2025 was 65.3%, up from 61.7% in Q3 2024[48] - The Operating EBITDA margin improved to 67.5% in Q3 2025, compared to 63.7% in Q3 2024[53] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,181.4 million, compared to $1,020.0 million in the same period of 2024, indicating a 15.8% rise[53] - The EBITDA margin for the nine months ended September 30, 2025, was 68.7%, up from 59.5% in the same period of 2024[53]

Core Insights - Cboe Global Markets reported record financial results for Q3 2025, with net revenue of $605.5 million, diluted EPS of $2.85, and adjusted diluted EPS of $2.67, reflecting year-over-year growth of 14% and 20% respectively [2][13] - The company is undergoing a strategic realignment to focus on core strengths and growth opportunities, including the initiation of a sales process for Cboe Australia and Cboe Canada, and exiting U.S. and European Corporate Listings [3][8] Financial Performance - Total net revenue for Q3 2025 increased by 14% compared to Q3 2024, driven by strong performance in derivatives, cash and spot markets, and Data Vantage [2][19] - Adjusted operating expenses for Q3 2025 were $210.2 million, up from $204.0 million in Q3 2024, primarily due to increased compensation and benefits [16] - The effective tax rate for Q3 2025 was 30.1%, up from 29.3% in Q3 2024, influenced by the recognition of uncertain tax positions [17] Business Segment Performance - Options segment achieved record net revenue of $380.8 million, a 19% increase from Q3 2024, supported by a 26% rise in total options average daily volume [21] - North American Equities net revenue rose by 6% to $103.5 million, while European and Asia Pacific segment revenue increased by 24% to $69.1 million [19][32] - Futures segment revenue decreased by 22% to $29.6 million, attributed to a decline in net transaction and clearing fees [32] Strategic Initiatives - The company is increasing its 2025 organic total net revenue growth guidance to 'low double-digit to mid-teens' from 'high single-digit' [8][33] - Cboe is also lowering its full-year adjusted operating expense guidance to a range of $827 million to $842 million [8][33] - The strategic realignment aims to enhance the company's position in the derivatives market and capitalize on emerging opportunities [3][8] Market Position - Cboe's options exchanges held a market share of 30.9% in Q3 2025, up from 30.5% in the same period last year [21] - The company’s U.S. Equities exchanges experienced a decline in market share to 9.8% from 10.9% in Q3 2024, reflecting increased off-exchange trading [21][32] - Cboe's European Equities market share improved to 25.4% from 23.8% year-over-year [32]

Core Insights - Cboe Global Markets has appointed JJ Kinahan as Senior Vice President, Head of Retail Expansion and Alternative Investment Products, to lead a new business vertical focused on alternative investment products for retail customers [2]. Group 1: Leadership and Strategy - JJ Kinahan will oversee product strategy, regulatory alignment, and market execution for innovative offerings such as event-based trading, prediction markets, crypto derivatives, and tokenized instruments [2]. - Rob Hocking, Global Head of Derivatives at Cboe, emphasized the significant opportunity for growth in areas where Cboe can lead and differentiate, highlighting Kinahan's exceptional track record and commitment to investor education [2]. - Craig Donohue, CEO of Cboe, noted that the company has strengthened its leadership team with strategic hires, positioning Cboe to capitalize on emerging opportunities in retail-oriented digital, crypto, and event markets [2]. Group 2: Background of JJ Kinahan - Prior to joining Cboe, Kinahan was the CEO of IG US Holdings, overseeing multiple trading platforms, and has held significant roles at TD Ameritrade and Charles Schwab [2]. - Kinahan's experience includes being a market maker at the Chicago Board Options Exchange and positions at ING Bank and Van Der Moolen, showcasing his extensive background in the financial industry [2]. Group 3: Cboe's Market Position - Cboe Global Markets is recognized as a leading derivatives and securities exchange network, providing trading solutions across multiple asset classes globally [3]. - The company is committed to building a trusted and inclusive global marketplace, enabling individuals to pursue sustainable financial futures [3].

Core Insights - Cboe Global Markets, Inc. (CBOE) is anticipated to show improvements in both revenue and earnings for the third quarter of 2025, with results expected to be reported on October 31 [1][2] Revenue Expectations - The Zacks Consensus Estimate for CBOE's third-quarter revenues is $579.03 million, reflecting an 8.8% increase from the previous year [1] - Market data revenues are estimated at $79.5 million, while access and capacity fees are projected to be $100.1 million [8] Earnings Projections - The consensus estimate for earnings is $2.46 per share, indicating a year-over-year increase of 10.8% [2] - The Earnings ESP for CBOE stands at +3.11%, with the Most Accurate Estimate at $2.53 per share [4] Factors Influencing Performance - Growth in index options, higher transaction and clearing fees, and increased market data and regulatory fees are expected to positively impact CBOE's performance [5][10] - Strong new subscriptions and unit sales in Cboe Data Vantage, along with pricing changes and brand investments, are likely to contribute to revenue growth [7] Market Dynamics - Increased trading volumes in Cboe options, U.S. equities, and European equities are anticipated to drive higher revenues in cash and spot markets [6] - The derivatives business is expected to benefit from rising transaction and clearing fees, alongside a growth in index options ADV [11][12] Additional Insights - Continued share buybacks are projected to support the bottom line for CBOE in the upcoming quarter [12]