MIAX Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

Net Revenues: Increased 57% year-over-year to $109.5 million, driven by elevated options volumes and market share growth.
Market Share: Achieved a record 17.2% in multi-listed options, up 24% from the previous year.
Adjusted EBITDA: Rose 157% year-over-year to $48 million, with an adjusted EBITDA margin of 44%, up from 27% in the prior year.
Adjusted Earnings: Increased significantly to $40 million from $8 million year-over-year.
Cash Position: Ended the quarter with $401 million in cash after retiring $140 million of debt.
Operating Expenses: Increased to $61.6 million from $51.1 million, primarily due to higher compensation and investments in technology.

2. Strategic Updates and Business Highlights

Technology Focus: MIAX emphasizes its technology-driven approach, highlighting low latency and high throughput as key differentiators.
New Facilities: Launched the MIAX Sapphire trading floor in Miami, aimed at capturing additional volume in multi-listed options.
Product Expansion: Plans to list new futures products, including Bloomberg 500 Index futures in Q1 2026, leveraging new technology platforms.
Acquisitions: The acquisition of the International Stock Exchange (TISE) expanded MIAX's capabilities in global debt issuance and access to European markets.

3. Forward Guidance and Outlook

Market Growth: Anticipates continued elevated volatility due to geopolitical tensions and evolving interest rate policies, which could drive demand for options.
Retail Participation: Expects ongoing growth in retail trading, particularly in options and futures, as retail investors increasingly engage with the market.
Future Product Offerings: Plans to explore new product opportunities, including potential crypto event contracts, while focusing on existing product launches.

4. Bad News, Challenges, or Points of Concern

Futures Segment Performance: Revenue from the Futures segment decreased to $4.8 million, down from $5.3 million, attributed to lower trading volumes and commodity market volatility.
Regulatory Approvals: Future offerings, such as single stock options with daily expirations, depend on regulatory approvals, which could delay product launches.
Expense Growth: While revenue is growing, there are concerns about rising operating expenses, particularly related to compensation and technology investments.

5. Notable Q&A Insights

Market Share Gains: The increase in market share to 19.4% in October was attributed to growth across all options exchanges and increased complex orders.
Retail vs. Institutional Mix: MIAX focuses on enhancing liquidity and market depth to attract both retail and institutional customers, emphasizing customer experience.
Expense Outlook: Management indicated that while expenses may rise due to initial public company costs, they expect a slower growth rate moving forward as major build-outs are completed.
Long-term Strategy: MIAX's leadership reiterated a commitment to leveraging existing licenses and technology to explore new product opportunities while focusing on core business growth.

Overall, MIAX reported strong financial performance in Q3 2025, with significant growth in revenues and market share, while also outlining strategic initiatives and future growth opportunities amidst some challenges in the futures segment and regulatory landscape.

MIAX — MIAMI INTERNATIONAL HOLDINGS, INC.