Cboe Global Markets — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the quarter reached $712.2 million, an 18% increase year-over-year from $605.5 million.
• Diluted earnings per share (EPS) rose 43% to a record $4.08, compared to $2.85 in the prior-year period.
• Adjusted diluted EPS increased 36% to $3.63, up from $2.67 in the third quarter of 2025.
• Operating income was $534.3 million, a 44% increase from $370.3 million, with an operating margin of 75.0% versus 61.2% previously.
• Net income allocated to common stockholders was $426.7 million, up 43% from $299.3 million.
• Operating EBITDA increased 40% to $562.0 million from $401.2 million, with an operating EBITDA margin of 78.9%.
• EBITDA was $571.1 million, up 25% from $458.5 million, with an EBITDA margin of 80.2%.
• Total operating expenses were $249.4 million, up 6% from $235.2 million; adjusted operating expenses were $204.0 million, down 3% from $210.2 million.
• The effective tax rate for the quarter was 22.8%, down from 30.1%, primarily due to a non-taxable gain on the divestiture of Cboe Australia.
• Adjusted operating expenses exclude $59 million in amortization of acquired intangible assets.

Guidance and Future Outlook:

• 2026 organic total net revenue growth target increased to the 'high teens' from 'mid to high teens'.
• 2026 Data Vantage organic net revenue growth target increased to the 'mid teens' from 'low teens'.
• 2026 adjusted operating expense guidance decreased to $830–$845 million from $838–$853 million.
• 2026 depreciation and amortization expense guidance reaffirmed at $54–$58 million, excluding acquired intangible asset amortization.
• 2026 effective tax rate on adjusted earnings guidance reaffirmed at 27.5–29.5%.
• 2026 capital expenditures guidance reaffirmed at $98–$108 million.
• Guidance includes anticipated business-as-usual financial contribution from Cboe Canada, with plans for divestiture announced in October 2025.
• 2026 organic revenue growth guidance excludes the impact of Cboe Australia following its sale completion in the third quarter of 2026.

Business Segments and Product Lines:

• Options: Net revenue of $469.5 million, up 23% year-over-year. Total options average daily volume (ADV) increased 14%, with index options ADV up 24% driven by record 0DTE activity. Total options RPC increased 9%.
• North American Equities: Net revenue of $113.5 million, up 10% year-over-year. Net transaction and clearing fees increased 16% due to improved net capture rates.
• Europe and Asia Pacific: Net revenue of $73.3 million, up 6% year-over-year (up 7% on a constant currency basis). Cboe Clear Europe net settlement volume increased 19%.
• Futures: Net revenue of $28.2 million, down 5% year-over-year, driven by a 7% decrease in ADV.
• Global FX: Net revenue of $27.7 million, up 23% year-over-year. Average daily notional value (ADNV) traded increased 22% to $61.1 billion.
• Data Vantage: Delivered record quarterly net revenue, up 13% from the prior year.
• Product Launches: Received SEC approvals to list and clear company-KPI event contracts in anticipation of a November launch. Advanced Cboe Predicts offering and clearing capabilities.
• Licensing: Extended exclusive S&P license through 2051.

Market and Competitive Landscape:

• Cboe's Options exchanges held a 30.5% market share in Q3 2026, down from 30.9% in Q3 2025.
• Cboe's U.S. Equities exchanges held an 8.9% market share, down from 9.8%, while off-exchange market share increased to 21.3% from 17.9%.
• Cboe European Equities held a 23.0% market share, down from 25.4%.
• European Equities ADNV traded on Cboe was €12.4 billion, up 6% driven by stronger industry market volumes.

Risks and Challenges:

• Total operating expenses included a $14.0 million incremental reserve recorded for notes receivable related to the funding of the Consolidated Audit Trail.
• Strategic realignment costs were incurred, resulting in decreased salaries and wages and travel expenses in the quarter.
• The company faces risks related to the loss of exclusive index rights, regulatory changes, trading volume fluctuations, and competition.

Management Commentary and Tone:

• CEO Craig Donohue stated strong momentum continued, citing the S&P license extension and new product approvals as key steps to advance the growth strategy.
• CFO Jill Griebenow highlighted record EPS, strong revenue growth across all categories, and the strategic realignment driving cost efficiencies.
• Management expressed confidence in the ability to drive growth and create shareholder value through core business strengthening.

Other Key Points:

• Divestitures: Recorded a $71.5 million gain on the divestiture of Cboe Australia, completed in the third quarter of 2026.
• Capital Management: Cash and cash equivalents were $2,662.6 million; adjusted cash was $2,720.5 million. Total debt was $1,444.3 million.
• Dividends: Paid cash dividends of $90.2 million ($0.86 per share) during the quarter.
• Share Repurchases: Repurchased approximately 211,000 shares for $56.1 million at an average price of $266.17.
• Authorization Increase: On October 22, 2026, the Board increased share repurchase authorization by $550 million, bringing total available authorization to approximately $1.0 billion as of October 28, 2026.
• Conference Call: Executives hosted a conference call on October 30, 2026, to review results.