# Tradeweb Markets Inc. (TW) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/TW/thesis · /stocks/TW/memo

## Financial Snapshot

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source: coverage-next-full | ticker: TW | step: "04" | created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Income Statement Summary (FY2021–FY2024)

| Metric | FY2021 | FY2022 | FY2023 | FY2024E |
|---|---|---|---|---|
| **Revenue** | $982M | $1,270M | $1,373M | ~$1,585M |
| YoY Growth | +23% | +29% | +8% | ~+15% |
| Cost of Revenue | ~$190M | ~$235M | ~$250M | ~$285M |
| **Gross Profit** | ~$792M | ~$1,035M | ~$1,123M | ~$1,300M |
| Gross Margin | ~81% | ~82% | ~82% | ~82% |
| Operating Expenses (S&M, R&D, G&A) | ~$390M | ~$490M | ~$510M | ~$570M |
| **GAAP Operating Income** | ~$400M | ~$545M | ~$613M | ~$730M |
| GAAP Operating Margin | ~41% | ~43% | ~45% | ~46% |
| Interest / Other Income (net) | ~$15M | ~$40M | ~$70M | ~$75M |
| **GAAP Pre-Tax Income** | ~$415M | ~$585M | ~$683M | ~$805M |
| Income Tax (eff. rate ~21%) | ~$87M | ~$123M | ~$143M | ~$169M |
| **GAAP Net Income** | ~$328M | ~$462M | ~$540M | ~$636M |
| GAAP EPS (diluted) | ~$1.67 | ~$2.37 | ~$2.75 | ~$3.20 |

#### Adjusted (Non-GAAP) Metrics

| Metric | FY2021 | FY2022 | FY2023 | FY2024E |
|---|---|---|---|---|
| **Adjusted EBITDA** | ~$480M | ~$640M | ~$720M | ~$870M |
| Adj. EBITDA Margin | ~49% | ~50% | ~52% | ~55% |
| **Adjusted Net Income** | ~$380M | ~$510M | ~$600M | ~$720M |
| **Adjusted EPS** | ~$1.94 | ~$2.63 | ~$3.08 | ~$3.60 |
| YoY Adj. EPS Growth | +27% | +35% | +17% | ~+17% |

*Adjusted metrics add back: stock-based compensation (~$80–100M/yr), amortization of acquired intangibles (~$40M/yr), and deal-related transaction costs.*

#### Margin Analysis

| Margin | FY2021 | FY2022 | FY2023 | FY2024E | Trend |
|---|---|---|---|---|---|
| Gross Margin | ~81% | ~82% | ~82% | ~82% | Stable/improving |
| GAAP Operating Margin | ~41% | ~43% | ~45% | ~46% | Expanding |
| Adj. EBITDA Margin | ~49% | ~50% | ~52% | ~55% | Expanding |
| Net Income Margin (GAAP) | ~33% | ~36% | ~39% | ~40% | Expanding |

**Gross margin note:** TW's 81–82% gross margin reflects the near-zero marginal cost of incremental electronic trade. The primary cost of revenue is connectivity infrastructure and exchange/regulatory costs — both largely fixed, creating strong operating leverage.

**EBITDA margin trajectory:** Consistent 100–200bps/year margin expansion driven by revenue scale outpacing headcount growth. TW employs ~1,200 people; revenue per employee is ~$1.3M and rising.

#### Balance Sheet Snapshot (FY2024E)

| Item | Value |
|---|---|
| Cash & Equivalents | ~$1.0–1.1B |
| Short-term Investments | ~$200M |
| Total Current Assets | ~$1.6B |
| Goodwill & Intangibles | ~$1.8B (from NFI, Yieldbroker acquisitions) |
| Total Assets | ~$5.0B |
| Accounts Payable / Accrued Liabilities | ~$300M |
| Long-term Debt | ~$500M (2.0% Senior Notes due 2031) |
| Total Liabilities | ~$1.1B |
| **Stockholders' Equity** | ~$3.9B |

**Balance sheet quality:** Near-net-cash position when netting $1.2B cash/investments against $500M debt. Minimal leverage. Strong free cash flow generation funds dividends, buybacks, and bolt-on M&A without leverage.

#### Cash Flow Summary

| Item | FY2021 | FY2022 | FY2023 | FY2024E |
|---|---|---|---|---|
| Operating Cash Flow | ~$350M | ~$490M | ~$580M | ~$680M |
| Capex (net) | ~($50M) | ~($60M) | ~($65M) | ~($70M) |
| **Free Cash Flow** | ~$300M | ~$430M | ~$515M | ~$610M |
| FCF Margin | ~31% | ~34% | ~37% | ~38% |
| FCF Conversion (vs. Adj. NI) | ~79% | ~84% | ~86% | ~85% |

**FCF quality:** Consistently high FCF conversion. Working capital is minimal (transaction fees collected T+1). Capex is primarily technology infrastructure, modest relative to revenue. No significant maintenance capex burden.

#### Key Financial Ratios (Based on ~$27B Market Cap, FY2024E)

| Ratio | Value |
|---|---|
| P/E (GAAP) | ~42x |
| P/E (Adjusted) | ~37x |
| EV/EBITDA (Adj.) | ~30x |
| Price/FCF | ~44x |
| P/Sales | ~17x |
| EV/Revenue | ~16x |
| FCF Yield | ~2.3% |
| Dividend Yield | ~0.6% |

**Multiple context:** TW trades at a meaningful premium to market multiples, reflecting its infrastructure moat, secular growth, and consistent earnings compounding. Comparable to Visa/Mastercard payment network multiples rather than traditional financial sector.

#### Five-Year Revenue & EPS CAGR

| Metric | FY2019–FY2024E CAGR | FY2022–FY2024E CAGR |
|---|---|---|
| Revenue | ~22% | ~12% |
| Adj. EPS | ~25% | ~17% |
| Adj. EBITDA | ~24% | ~16% |

**Note on FY2022 spike:** FY2022 saw exceptional revenue growth driven by record rate volatility (Fed hiking cycle), which generated outsized US Treasury ADV. FY2023 was a "digestion" year at +8% after the exceptional base. FY2024 re-accelerated as credit electronification resumed and portfolio trading volumes grew.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/TW/fundamental

## Navigation

- Overview: /stocks/TW
- Financials (this page): /stocks/TW/financials
- Thesis: /stocks/TW/thesis
- Investment Memo: /stocks/TW/memo
- Coverage universe: /stocks