Cboe Global Markets (BATS:CBOE) executives highlighted continued volume and revenue momentum across the company’s derivatives, data, and cash markets businesses during a conference presentation hosted by Raymond James Capital Markets Technology Analyst Patrick O’Shaughnessy.
Business overview and recent performance
Chief Executive Officer Craig Donohue opened with a brief history of the company, noting Cboe’s roots in listed options, including the launch of equity options in 1973 and cash index options tied to the S&P 500 roughly a decade later. Donohue said index options have grown into the company’s flagship product, while later innovations included volatility indexes such as the VIX and the development of options, futures, and licensing tied to those products.
On financial performance, Donohue outlined revenue growth across major segments, including:
- Derivatives: $1.3 billion of net revenues, up 22% year-over-year (as described by Donohue).
- Data, analytics, and indices-related businesses: $623 million of net revenue, up 10% year-over-year, with growth “much” of it from new subscriptions.
- Cash and spot markets: $465 million of net revenue, up 15% year-over-year.
Donohue added that net revenue reached $2.4 billion, up 17% year-over-year, and said net revenue has grown at a 12% compounded annual growth rate over the last several years. He also cited a 13% compounded annual growth rate in adjusted operating EBITDA (up 25% year-over-year) and 15% growth in adjusted diluted EPS, attributing the results to platform growth on top of what he characterized as a relatively fixed cost base.
Derivatives, 0DTE, and options activity trends
Head of Derivatives Rob Hocking said 2025 was a strong year “across the portfolio,” with a particularly strong derivatives performance. He described derivatives net revenue at approximately $1.5 billion, up 22% year-over-year, driven by proprietary index products including SPX, VIX, and Mini-SPX. Hocking cited higher volatility, growth in 0DTE, and global demand as contributors.
Hocking said options activity reached “historic extremes” in 2025, including 41 days above 70 million contracts traded and the first-ever 100+ million contract day. He said Cboe views the volume levels as evidence of a structural shift, with investors increasingly using options as a core portfolio tool.
For 2026 year-to-date, Hocking said total index options were on pace for a first-quarter record, averaging about 5.7 million contracts per day, up over 3.5% from what he described as a record fourth quarter. He said SPX was on pace for 4.6 million contracts per day in Q1, up 25% year-over-year and about 6% from Q4, while Mini-SPX average daily volume was up nearly 31% from Q4. Hocking said Cboe expects to grow Mini-SPX further by introducing a more retail-focused “event-based” Mini-SPX contract later in the year.
Within SPX, he said 0DTE average daily volume rose 51% in 2025 to 2.3 million contracts, representing nearly 60% of SPX activity. Hocking described shorter-dated options as enabling more precise intraday and short-horizon risk management than longer-dated options.
Market structure, competition, and product education
During Q&A, Hocking said the use cases for SPX and 0DTE have not changed significantly, but the speed of risk management has increased and retail participation has grown. He said Cboe’s focus remains on providing tools for hedging and defining portfolio outcomes, pointing to the scale of assets benchmarked to the S&P 500.
Asked about competitive dynamics in short-dated risk tools, including growing availability of index and single-name expiries, Hocking said he believes new products are expanding the overall options market rather than displacing SPX. He also discussed educational efforts around structural differences between index options and single-name options, including cash settlement and European-style exercise in SPX versus physical delivery and early exercise risk in American-style single-name options. He noted that many SPX 0DTE trades are spread-based and said early exercise and delivery mechanics in single-name options can create additional considerations for investors.
Hocking also said multi-listed options continued to grow, with 2025 average daily volumes up 24% to a record 13.5 million contracts. He listed several areas of focus to sustain momentum, including extended trading hours, expanding usage of Monday-Wednesday expiries in single-stock options, and continued industry engagement around potential reform of the Options Regulatory Fee (ORF).
Growth initiatives: clearing, securities financing, and event-based products
Hocking highlighted initiatives intended to expand growth beyond core products, including extending Cboe Clear Europe to include securities financing transactions for cash equities and ETFs. He described a model in which the clearinghouse becomes the central counterparty to lenders and borrowers, which he said can reduce bilateral risk, lower risk-weighted asset requirements for banks and clearing firms, improve netting efficiency, and reduce operational complexity.
On event and prediction markets, Hocking said Cboe is pursuing event-based products using a combination of binary options and structured vertical spreads. He described the goal as creating a “yes/no” and “maybe” style user experience tied to event outcomes, leveraging existing liquidity in the S&P 500 complex and potentially providing an educational pathway into more traditional options strategies. Donohue added that the company is focusing on financial instruments and financial and economic events, and said Cboe’s infrastructure, distribution, and reputation with large retail brokers are competitive advantages.
Hocking also discussed continued broker onboarding in EMEA and APAC, citing Korea as an example where Cboe moved from zero onboarded brokers two years ago to seven of 10 targeted brokers offering SPX. He added that Cboe recently announced expanded trading hours with pre-market and post-close sessions for certain products to improve access.
Guidance, expense discipline, and capital allocation
Chief Financial Officer Jill Griebenow said Cboe delivered about 17% net revenue growth in 2025 versus 2024 while growing expenses about 5%, which she said contributed to “very healthy margins.” She said adjusted operating EBITDA margin reached about 68% in 2025 and emphasized that periods of revenue outperformance tend to flow through given the company’s relatively fixed cost base.
For 2026, Griebenow said the company’s full-year guidance targets mid-single-digit net revenue growth and that management would update guidance as results come in. She emphasized disciplined expense management and said the company is focused on balancing investment for future growth with efforts to stabilize margins. She added that depreciation and amortization and capital expenditures were expected to remain broadly in line with prior years, with targeted investments prioritized.
Donohue said the company has largely completed a portfolio rationalization that included exiting efforts to create exchanges in Australia, Japan, and Canada, with the goal of reallocating resources toward core businesses and innovation. He said remaining considerations include evaluating components within the DataVantage business and the company’s indices business, but he did not anticipate major additional changes.
On capital deployment, Griebenow said Cboe has a “extremely healthy” balance sheet with low leverage and strong free cash flow. She noted the company’s history of quarterly dividends and said the dividend payout rate has typically been increased in the third quarter, citing a 14% dividend increase announced in August. She added that Cboe would continue to be opportunistic with share repurchases and said financial flexibility supports organic investment in new growth initiatives.
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.
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