Miami International Holdings, Inc. (MIAX) Q4 2025 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call presents a mixed outlook. Positive aspects include product expansion, international growth, and a focus on retail engagement. However, management's unclear responses on key issues, such as detailed guidance on new product launches and future strategies, create uncertainty. The lack of focus on crypto and tokenization, along with increased expenses, tempers enthusiasm. Overall, these factors suggest a neutral sentiment for the stock price in the short term.

Key Financial Performance

Total Net Revenue (Q4 2025) $125 million, a 52% year-over-year increase. This growth was attributed to elevated market volatility and increased volume and market share gains across core business lines.

Adjusted EBITDA (Q4 2025) $62 million, more than doubled year-over-year. The adjusted EBITDA margin improved by 1,400 basis points to 50%, driven by operational efficiency and scaling.

Adjusted Diluted EPS (Q4 2025) $0.52, reflecting strong financial performance and operational efficiency.

Total Net Revenue (Full Year 2025) $431 million, a 56% year-over-year increase. This growth was driven by elevated market volatility and strategic initiatives.

Adjusted EBITDA (Full Year 2025) $199 million, more than doubled year-over-year. Adjusted EBITDA margin improved by 1,600 basis points to 46%, reflecting efficient scaling and growth initiatives.

Adjusted Diluted EPS (Full Year 2025) $1.82, showcasing strong financial performance and operational efficiency.

Options Segment Net Revenue (Q4 2025) $107 million, a 46% year-over-year increase. This was driven by a market share increase to 18.2% (up from 15.9%) and a 46% year-over-year increase in average daily volume to 11.1 million contracts.

Equities Segment Net Revenue (Q4 2025) $6 million, up from $2 million in the prior year period. This increase was primarily due to higher net transaction fees from improved pricing.

Futures Segment Net Revenue (Q4 2025) $5 million, compared to $6 million in the prior year period. The decrease was due to lower listings revenues and decreased transaction fees, partially offset by the elimination of expenses related to CME Globex.

International Segment Net Revenue (Q4 2025) $6 million, compared to $1 million in the prior year period. The increase was primarily due to the acquisition of TISE in June 2025.

You have reached the limit. Sign up to access full content

Get started

Operating Highlights

Launch of MIAX Futures Onyx: Introduced a high-performance proprietary trading and clearing platform with state-of-the-art risk management capabilities.

Bloomberg Index Futures products: Plan to launch B100 and B500 Futures in Q2 2026, focusing on retail size contracts to meet retail broker demand.

New Monday and Wednesday short-term options: Listed in 9 actively traded options classes, targeting retail and institutional participants.

Acquisition of TISE: Expanded international footprint and operational synergies with BSX.

Strategic sale of MIAXdx: Sold 90% to Robinhood Markets and Susquehanna International Group, retaining 10% equity stake for access to prediction markets.

Improved rate structure in equities: Achieved breakeven adjusted EBITDA in Q4 2025.

Technology investments: Enhanced MIAX Sapphire Exchange and new platforms for MIAX Futures and BSX.

Focus on regulatory landscape: Exploring opportunities for new products and services.

Collaboration with industry leaders: Strategic alignment with Robinhood and Susquehanna to offer innovative trading products.

You have reached the limit. Sign up to access full content

Get started

Risk or Challenges

Market Volatility: While elevated market volatility has been favorable for MIAX in 2025, it is driven by unpredictable factors such as geopolitics, domestic policy, and AI investment cycles. This creates uncertainty in sustaining such favorable conditions.

Regulatory Landscape: Although the regulatory environment is seen as an opportunity, it also poses risks due to potential changes or challenges in compliance requirements across multiple jurisdictions.

Technology Investments: The company is heavily investing in technology platforms and enhancements, which increases operational costs and risks if these investments do not yield the expected returns or face delays, as seen with the rescheduling of the Bloomberg Index Futures launch.

Dependence on Strategic Partnerships: The strategic sale of MIAXdx to Robinhood and Susquehanna creates dependency on these partners for the success of prediction markets, which could pose risks if the partnership does not perform as expected.

Operational Costs: Increased headcount and technology costs to support growth initiatives are driving up operational expenses, which could impact profitability if revenue growth does not keep pace.

Market Share Growth: While the company aims to expand its market share, balancing this growth with healthy revenue per contract (RPC) levels remains a challenge.

Futures Segment Performance: The Futures segment experienced a decline in revenue due to lower listings and decreased transaction fees, highlighting a potential area of underperformance.

International Operations: While international operations are growing, maximizing operational and revenue synergies across TISE and BSX remains a challenge.

You have reached the limit. Sign up to access full content

Get started

Guidance & Outlook

2026 Adjusted Operating Expenses: Expected to range between $265 million and $275 million, representing a 13% to 18% increase over full year 2025 or a 6% to 10% increase from annualized Q4 2025.

2026 Share-Based Compensation Expense: Expected to range between $27 million and $30 million, reflecting a decrease due to IPO-related accelerations, partially offset by new 2026 grants.

2026 Capital Expenditures (CapEx): Expected to range between $40 million and $45 million, including capitalization of internally developed software.

2026 Depreciation and Amortization: Expected to range between $33 million and $38 million.

2026 Effective Tax Rate: Expected to range between 27% and 29% on adjusted earnings, following the release of deferred tax valuation allowance during 2026.

Options Market Growth: Anticipated elevated volatility throughout 2026 driven by geopolitics, domestic policy, political dynamics, tariff impacts, and the evolving AI investment cycle. Growth in Monday and Wednesday short-term expirations in single stocks is expected to contribute to volume growth.

New Product Launches: Bloomberg Index Futures products (B100 and B500 Futures) are planned for launch in Q2 2026, with retail size contracts introduced first to meet retail broker demand.

Technology Enhancements: Additional functionality enhancements for the MIAX Sapphire trading floor are planned for the first half of 2026 to support floor broker community needs.

Market Share Expansion: Opportunities to expand market share on the MIAX Sapphire trading floor and through increased activity in short-term weekly options, improving IPO pipeline, and structured products and ETFs.

International Operations: Focus on maximizing operational and revenue synergies across TISE and BSX businesses to optimize international footprint.

You have reached the limit. Sign up to access full content

Get started

Shareholder Return Plan

The selected topic was not discussed during the call.

You have reached the limit. Sign up to access full content

Get started

Key Q&A

Q:Can you provide an update on your outlook for options volumes this year and how MIAX is positioned? Also, can you discuss the market share dynamics and expectations for the rest of the year?

A:Thomas Gallagher and Shelly Brown discussed that market dynamics in Q1 2026 are expected to continue providing volatility due to factors like tariffs, midterms, and global political tensions. Short-dated expirations introduced in January are expected to fuel growth in the U.S. options marketplace, though not at the 30% growth seen in 2025. Regarding market share, October was an outlier, but the last three months have shown consistent performance. They are comfortable with the current market share.

Q:Can you elaborate on the Bloomberg derivative products being rolled out in 2Q, specifically regarding retail size contracts and platform launches?

A:Shelly Brown explained that they are starting with T&E contract sizes for the Bloomberg 100 and 500 Index, focusing on the retail market. They are working with liquidity providers and retail firms to create a competitive model. There is significant interest from retail firms, and the goal is to bring competition to a market traditionally dominated by one competitor.

Q:How do you plan to make the B100 and B500 Index options model work for retail, especially regarding commissions and economics?

A:Thomas Gallagher and Shelly Brown emphasized the importance of retail engagement and reducing execution costs to levels similar to free trading in the options marketplace. They aim to introduce alternative pricing mechanisms to attract retail customers and grow the industry. They believe their competitive product and fee structure will appeal to retail firms.

Q:What will the initial suite of B100 and B500 products look like, and what is the go-to-market strategy?

A:Shelly Brown stated that futures will launch first in Q2, followed by options based on futures uptake. Short-dated options will be included, and all products will clear at the Options Clearing Corporation. The go-to-market strategy involves collaboration with Bloomberg and retail firms for investor education and leveraging Bloomberg's deterministic algorithmic methodology for index construction.

Q:What are you seeing in terms of activity for Monday and Wednesday options, and how is market share trending?

A:Thomas Gallagher and Shelly Brown noted that the program launched on January 22 and has shown large volumes in the nine stocks with Monday and Wednesday expirations. Their market share in these stocks has been over 20%, outperforming their overall market share of 17.6%. They attribute this to their technology and risk protections.

Q:When might Tuesday and Thursday options be introduced, and what factors will influence this decision?

A:Shelly Brown explained that the focus is on expanding the Monday and Wednesday program to additional stocks rather than adding Tuesday and Thursday options. They aim to avoid saturating the calendar and prioritize investor demand.

Q:What does the adjusted operating expense growth guidance of 13%-18% for 2026 assume for top-line growth, and how sensitive is it to volumes?

A:Lance Emmons stated that top-line revenue is hard to predict due to its dependence on market volumes. There is some flexibility in discretionary investments, but planned investments in futures and new product launches are included in the guidance.

Q:Do you still plan to launch crypto and event-based products later this year?

A:Thomas Gallagher mentioned that they are focused on expanding their options and futures business. While they are open to opportunities in the crypto area, it is not a primary focus for 2026.

Q:Have market makers shifted their market share since participating in the secondary offering in December?

A:Thomas Gallagher stated that there is no evidence of market makers shifting their market share. The technology and risk protections continue to drive their participation.

Q:What are your expectations for access fees and market data revenue in 2026?

A:Lance Emmons and Shelly Brown discussed that access fees saw increases in January, and new market data products launched in Q1 are expected to drive growth. They are also monetizing high-demand historical data and reports.

Q:What is the strategy behind the recent fee increases, and how might they impact market share?

A:Shelly Brown explained that the primary fee change was the expiration of waived non-transaction fees for Sapphire trading floor members. This aligns with their practice of waiving fees for new venues during initial periods.

Q:Does tokenization have any implications for MIAX now or in the future?

A:Thomas Gallagher and Shelly Brown stated that tokenization is not a current focus but is being evaluated for potential opportunities. They noted that tokenization discussions are primarily about post-trade clearing in equities, which is a small part of their business.

Q:Review of Unclear Management Responses

A:Management avoided providing specific details on the number of platforms for the Bloomberg derivative products launch, the full pricing strategy for retail engagement, and the exact timeline for introducing Tuesday and Thursday options. They also did not quantify the expected growth in access fees and market data revenue or provide a clear stance on tokenization's future role in their business.

You have reached the limit. Sign up to access full content

Get started

Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

MIAX Transcript

Miami International Holdings, Inc. (MIAX) Q4 2025 Earnings Call Transcript

Unknown2-28

Miami International Holdings, Inc. (MIAX) Q3 2025 Earnings Call Transcript

Positive11-7

The earnings call reveals strong financial performance, with significant margin improvement, increased adjusted earnings, and revenue growth in key segments. Although there are concerns about unclear timelines for new products, the company's focus on capturing market share and technology-driven growth is promising. The positive sentiment is reinforced by the Q&A insights, indicating potential for further expansion and high incremental margins. Despite some uncertainties, the overall outlook is favorable, suggesting a likely positive stock price movement.

Frequently Asked Questions

Where does this earnings call transcript come from?

All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.

How soon is the transcript available after the earnings call ends?

Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.

Is the transcript edited or altered in any way?

No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.

Why do some answers appear as “Unclear” or “Inaudible”?

When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.

Who creates the AI Summary and Key Q&A highlights shown above the transcript?

They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.