Cboe Global Markets (BATS:CBOE) reported record second-quarter net revenue of $732 million, up 25% from the prior-year period, as growth across derivatives, cash and spot markets and data services helped adjusted diluted earnings per share rise 45% to $3.56.
Chief Executive Officer Craig Donohue said every major revenue category posted double-digit growth, while all five company segments recorded year-over-year revenue gains. Adjusted operating EBITDA increased 37% to $528 million, and the adjusted operating EBITDA margin expanded 6.4 percentage points to 72.2%.
Index options drive derivatives growth
Donohue said the company recorded several product-specific volume records, including 5.1 million average daily SPX options contracts and 3.1 million SPX zero-days-to-expiration, or 0DTE, contracts. Mini-SPX average daily volume reached 195,000 contracts, while Global Trading Hours volume averaged 189,000 contracts.
The company attributed the gains partly to economic uncertainty, changing investor positioning and increased retail activity. Donohue said that following the repeal of the pattern day trader rule in June, SPX 0DTE average daily volume increased 11% from May, while the estimated retail share of volume rose to 57%, compared with 53% in April and May.
Global Head of Derivatives Rob Hocking said more than 95% of 0DTE trading involves defined-risk strategies, with spreads representing 50% to 55% of that activity. Management argued that options serve different purposes than perpetual futures because options can provide defined risk and convex exposure.
Event-contract initiatives expand
Cboe launched Cboe Predicts in June, offering binary options tied to the Mini-S&P 500 Index. The company said three market makers are currently providing liquidity in the product and that spreads have narrowed as liquidity has grown.
Management also discussed a July filing with the Securities and Exchange Commission to list company-specific key performance indicator event contracts initially tied to 23 actively traded U.S. companies. Cboe is targeting a late-September or early-October launch, subject to regulatory approval.
Hocking said the proposed contracts could allow investors to trade expectations around metrics that influence company valuations, citing Nvidia data-center revenue and Microsoft cloud-based revenue as examples. Management said it expects initial usage to be weighted toward retail customers, with institutional participation potentially increasing as data sets and analytical tools develop.
The company did not include meaningful revenue from the new event-contract products in its 2026 guidance. Executives said the products would be structured as securities and would operate under SEC oversight, which Cboe views as a differentiator from competing offerings.
Cboe is also investing in clearing capabilities to support product development. Donohue said the company applied for temporary SEC registration as a covered clearing agency, with full registration targeted after an 18-month period, subject to approval. The company also became subject to enhanced CFTC standards under Subpart C regulations in June. Management said its clearing efforts are intended to complement, rather than replace, its existing relationship with the Options Clearing Corp. for equity options.
Cash markets and DataVantage post broad gains
Cash and spot markets net revenue increased 22% year over year. North American equities net revenue rose 17%, supported by a 37% gain in transaction and clearing fees amid stronger industry trading volumes and improved net capture rates.
Europe and Asia-Pacific net revenue increased 20%, or 18% on a constant-currency basis. Transaction and clearing fees in the segment rose 31%, while Global FX net revenue increased 17%, helped by an 8% rise in average daily notional value and a 6% increase in net capture.
Donohue said Cboe plans to expand cash-equities trading to a 23-hours-per-day, five-days-per-week schedule in December, pending industry readiness, with an eventual goal of 24/7 trading.
Cboe DataVantage revenue increased 15% to approximately $178 million. Chief Financial Officer Jill Griebenow said roughly two-thirds of the growth came from access-related revenue, particularly connectivity demand for options exchanges, while the remaining growth came from market-data demand. New subscriptions and unit sales accounted for about 84% of DataVantage growth, and customers outside the U.S. represented 50% of quarterly sales.
Company raises 2026 revenue outlook
Cboe raised its outlook for total organic net revenue growth in 2026 to the mid-to-high teens, up from prior guidance for low-double-digit to mid-teens growth. It also increased its outlook for DataVantage organic net revenue growth to the low teens from low-double-digit growth.
The company is accounting for an expected third-quarter closing of its sale of Cboe Australia. Cboe Canada will remain included in guidance until management has more clarity on the timing of that transaction’s close. Cboe said Australia contributed about $20 million in net revenue through July, including approximately $17 million in DataVantage revenue.
Adjusted operating expense guidance remained $838 million to $853 million for 2026. The company raised capital-expenditure guidance to $98 million to $108 million from $73 million to $83 million, citing investments in clearing infrastructure and accelerated hardware purchases. Depreciation and amortization guidance was reduced to $54 million to $58 million.
During the quarter, Cboe repurchased $33 million of its shares and paid $76 million in dividends, or $0.72 per share, returning a combined $108 million to shareholders. Griebenow said the company held $2.3 billion in adjusted cash and had a leverage ratio of 0.7 times. Cboe expects to repay a $650 million debt tranche due in the first quarter of 2027 with cash on hand.
About Cboe Global Markets (BATS:CBOE)
Cboe Global Markets, Inc, through its subsidiaries, operates as an options exchange worldwide. It operates through six segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and listing services. The Europe and Asia Pacific segment provides pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services.
