CBOE
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Financials
XBRL · SEC EDGAR2009–2025(17yr)| Metric | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $426.1M | $437.1M | $508.1M | $512.3M | $572.0M | $617.2M | $634.5M | $656.9M | $2.2B | $2.8B | $2.5B | $3.4B | $3.5B | $4.0B | $3.8B | $4.1B | $4.7B | +15.1% |
| Gross Profit | — | — | — | — | — | — | $561.7M | $566.4M | $995.6M | $1.2B | $1.1B | $1.3B | $1.5B | $1.7B | $1.9B | $2.1B | $2.4B | +17.2% |
| Gross Margin | — | — | — | — | — | — | 88.5% | 86.2% | 44.7% | 44.0% | 45.5% | 36.6% | 42.2% | 44.0% | 50.8% | 50.6% | 51.5% | +0.9pp |
| Operating Income | $177.6M | $167.3M | $241.6M | $244.1M | $285.8M | $313.8M | $319.9M | $298.2M | $371.9M | $599.4M | $537.2M | $662.2M | $805.9M | $489.6M | $1.1B | $1.1B | $1.5B | +33.6% |
| Operating Margin | 41.7% | 38.3% | 47.6% | 47.6% | 50.0% | 50.8% | 50.4% | 45.4% | 16.7% | 21.6% | 21.5% | 19.3% | 23.1% | 12.4% | 28.0% | 26.8% | 31.1% | +4.3pp |
| Net Income | $106.5M | $99.4M | $139.4M | $157.4M | $176.0M | $189.7M | $205.0M | $186.8M | $401.7M | $426.5M | $374.9M | $468.2M | $529.0M | $235.0M | $761.4M | $764.9M | $1.1B | +43.8% |
| Net Margin | 25.0% | 22.7% | 27.4% | 30.7% | 30.8% | 30.7% | 32.3% | 28.4% | 18.0% | 15.4% | 15.0% | 13.7% | 15.1% | 5.9% | 20.2% | 18.7% | 23.3% | +4.7pp |
| Free Cash Flow | — | — | — | — | — | — | $206.0M | $185.2M | $336.9M | $498.4M | $597.7M | $1.4B | $545.8M | $591.3M | $1.0B | $1.0B | $1.7B | +61.7% |
| FCF Margin | — | — | — | — | — | — | 32.5% | 28.2% | 15.1% | 18.0% | 23.9% | 41.2% | 15.6% | 14.9% | 27.3% | 25.4% | 35.7% | +10.3pp |
| EPS (Diluted) | $1.17 | $1.03 | $1.52 | $1.78 | $1.99 | $2.21 | $2.46 | $2.27 | $3.69 | $3.76 | $3.34 | $4.27 | $4.92 | $2.19 | $7.13 | $7.21 | $10.42 | +44.5% |
1. THE BIG PICTURE
Cboe is transitioning from a broad exchange operator into a high-margin proprietary product powerhouse, evidenced by record Q4 2025 results and a strategic exit from underperforming businesses like its Japanese equities unit. While it lacks the diversified revenue streams of larger peers, its dominance in volatility (VIX) and S&P 500 options creates a specialized "toll booth" for market hedging that competitors cannot easily replicate.
2. WHERE THE RISKS HIT HARDEST
The "Product Ecosystem" identified as a core strength is directly threatened by the potential loss of exclusive index licenses because 68% of the revenue from the options and futures segments depends on rights to the S&P 500 and VIX methodology (10-K Item 1, RISKS). Furthermore, Cboe’s "Global Reach" is undermined by extreme customer concentration; the top ten global banks and market makers provide 57% of total revenue, making the business highly sensitive to the capital requirements or trading activity of a tiny cohort of participants (RISKS).
3. WHAT THE NUMBERS SAY TOGETHER
While Cboe reported a massive 28% revenue jump in Q4 2025, its trailing twelve-month growth of 15.1% and 2026 guidance for "mid single-digit" growth suggest the recent surge is a cyclical spike rather than a permanent structural shift (8-K, Peer Benchmarking). Despite its positioning as a leading network, Cboe maintains the lowest margins in its peer group, with an FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin of 16.6% that trails significantly behind competitors like ICE (31.9%) and HOOD (114.1%). This margin gap persists even during record-breaking quarters, suggesting that Cboe’s "Titanium" technology and clearing infrastructure carry higher relative operating costs than its peers. Short interest stands at 3.0% of the float, indicating a moderate but present bearish sentiment regarding the sustainability of these volume-driven gains.
4. IS IT WORTH IT AT THIS PRICE?
At 22.7x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Cboe trades at a modest discount to the peer median of 24.3x (Peer Benchmarking). The market is pricing in a long-term growth rate of just 1.9% (CAPM analysis). This appears conservative given the 15.1% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth and the 34% growth in the core Options segment (8-K). However, the discount is justified by Cboe's inferior margin profile—ranking last among peers in every margin category—and the existential risk posed by its reliance on exclusive licenses. If growth slows to the 2026 guided mid-single digits, the current valuation aligns closely with the market-implied "fair value" of 23.0x.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if organic net revenue growth for 2026 falls below the "mid single-digit" guidance, confirming that the Q4 2025 record was a temporary volatility-driven outlier.
- Constructive if the "Portfolio Rationalization" strategy results in a measurable expansion of the 30.0% operating margin toward the peer median of 38–46%.
- Cautious if any regulatory shift or license renewal negotiation threatens the exclusivity of the SPX or VIX product suites.
6. BOTTOM LINE
Structural Advantage: Exclusive proprietary index licenses and a high-performance technology platform that creates a liquidity moat in the volatility and S&P 500 options markets. Bottom Line: Cboe is a high-performing niche player whose valuation is capped by structural margin inferiority and a dangerous level of product concentration.
1. Top 5 Material Risks
- Loss of Exclusive Index Licenses: Cboe Global Markets holds exclusive rights to list S&P 500 and Russell 2000 index options, as well as the proprietary VIX Index methodology. The loss, limited use, or change in commercial terms of these licenses would materially impact the options and futures segments, which generated 68% of total revenues less cost of revenues in 2025.
- Customer Concentration: The business is highly dependent on a limited number of market makers, liquidity providers, and global banks. In 2025, the top ten customers accounted for 57% of revenues. Furthermore, three clearing members accounted for 71% of transaction and other fees collected through the OCC.
- Transaction and Clearing Fee Sensitivity: Approximately 74% of revenues less cost of revenues in 2025 were generated by transaction and clearing-based businesses. This revenue is directly tied to trading volumes, which are susceptible to declines from capital requirement changes, market volatility shifts, or competitive pricing pressures.
- Price Competition: The securities industry is characterized by intense competition, particularly regarding transaction fees. Competitors may engage in aggressive pricing or offer financial incentives to capture market share, which could force Cboe Global Markets to reduce fees or offer "inverted" pricing, thereby compressing profit margins.
- Systems and Cybersecurity Vulnerabilities: As critical infrastructure, Cboe Global Markets faces heightened risks from cyberattacks, including ransomware and data theft. Any failure or degradation of performance in trading and clearing systems—whether due to technical faults, cyber incidents, or supply chain disruptions—could result in financial losses, regulatory sanctions, and reputational damage.
2. Company-Specific Risks
- Clearinghouse Default Risk: Cboe Global Markets operates clearinghouses (Cboe Clear Europe and Cboe Clear U.S.) that are exposed to credit, liquidity, and market risks if clearing members default. While collateral is required, there is no guarantee that these assets will be sufficient to cover losses in a significant default event.
- Order Routing Liability: Through its broker-dealer subsidiary, Cboe Trading, Cboe Global Markets may assume ownership of securities positions if a market center experiences systemic issues. This exposes Cboe Global Markets to potential trading losses when disposing of these positions.
- Open Source Software Exposure: The technology platform incorporates open source software. If Cboe Global Markets is found to have inappropriately used such code, it could be forced to disclose proprietary source code or re-engineer its software at significant cost.
- Strategic Exit and Integration Challenges: Cboe Global Markets is currently winding down its Japan equities business and initiating sale processes for its Australia and Canada equities businesses. Failure to manage these exits or integrate past acquisitions effectively could divert management attention and result in transitional disruptions or loss of key personnel.
3. Regulatory/Legal Risks
- SEC Market Structure Proposals: The implementation of rules such as the Tick Size/Access Fee Cap and potential changes to Rule 611 (Order Protection Rule) may increase compliance costs and negatively impact trading volume and transaction fee revenue.
- Third-Country CCP Recognition: If the UK does not grant permanent recognition to the OCC as a third-country central counterparty by the December 31, 2027 deadline, UK market participants clearing through the OCC could face punitive capital charges, leading to a significant reduction in trading activity.
- Regulatory Immunity Limitations: While SROs generally possess immunity for regulatory functions, there is a risk that courts may not apply this doctrine to all claims, or that legislative developments could reduce this protection, increasing exposure to litigation and legal expenses.
- Tax Law Changes: Cboe Global Markets is subject to various tax jurisdictions and potential financial transaction tax proposals. Additionally, the implementation of Pillar 2 laws in certain jurisdictions to effectuate a 15% minimum tax could increase the effective tax rate and reduce net income.
4. Financial Impact Map
Loss of Exclusive Index Licenses → Revenues less cost of revenues → 68% of this line item is generated by the options and futures segments, which rely on these licenses. Customer Concentration → Total Revenues → 57% of total revenues are derived from the top ten customers. Transaction and Clearing Fee Sensitivity → Revenues less cost of revenues → 74% of this line item is generated by transaction and clearing-based businesses. Price Competition → Transaction fees / Profit margin → Pricing pressures and "inverted" pricing specials directly impact the average rate per contract and overall profitability. Clearinghouse Default Risk → Cash and cash equivalents / Collateral assets → A default could lead to substantial losses if margin and default fund deposits are insufficient to cover obligations.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Base Carbon reports 2025 net earnings of $0.2M, total assets $108.9M
- ▸2025 net earnings $0.2M, including $13.1M in total realized and unrealized gains
- ▸Total assets $108.9M, including $79.2M in carbon credit project investments
- ▸Operating expenses $10.2M, including $3.9M inventory write-down
- ▸Repurchased 7.2 million shares in 2025 at average price of C$0.56
- ▸Achieved first carbon credit issuances under VM0050 methodology in Rwanda
Cboe and CNBC Announce Multi-Year Partnership for Daily Live Market Coverage from Chicago Floor
- ▸CNBC to broadcast daily from Cboe trading floor starting April 6
- ▸Multi-year collaboration focuses on real-time options market analysis
- ▸2025 U.S. options volume reached 15.2 billion contracts, +26% YoY
- ▸Cboe floor hosts over 300 brokers and market makers
- ▸Partnership aims to increase options market education and transparency
Cboe files for near-24x5 U.S. equity trading and new prediction markets framework
- ▸Filed with SEC to introduce near-24x5 U.S. equity trading on EDGX Exchange
- ▸Announced new prediction markets framework including planned Mini S&P 500 contract
- ▸Projects $2.8B revenue and $1.3B earnings by 2029
- ▸Current fair value estimate calculated at $287.92 per share
- ▸Long-term S&P index licensing partnership remains key watchpoint for investors
Roundhill MSFW ETF sheds 34% of value since July 2025 launch amid payout volatility
- ▸ETF value declined 34% since July 2025 inception
- ▸Weekly dividend payouts show high volatility, ranging from $0.97 to $0.097
- ▸Fund strategy targets 120% exposure to Microsoft (MSFT) stock
- ▸NAV performance significantly trails marketing focus on weekly income generation
VERSES AI raises C$355,125 in second tranche of private placement offering
- ▸Second tranche raised C$355,125 via 473,500 units at C$0.75 per unit
- ▸Aggregate gross proceeds from two tranches total C$1,100,930
- ▸C$132,300 in company liabilities extinguished through the offering
- ▸Each unit includes one share and one-half share purchase warrant
- ▸Warrants exercisable at C$1.00 per share for 24 months
Cboe to launch Mini S&P 500 prediction market contracts in Q2 2026
- ▸New prediction market framework features $0, partial, or $100 payout structure
- ▸Mini S&P 500 Index prediction contract launch scheduled for Q2 2026
- ▸Cboe IBIT Volatility Index (BITVX) launch set for March 23, 2026
- ▸Contracts utilize traditional options wrapper and central clearing via OCC
- ▸Fair value estimate adjusted slightly to $287.92 per share
Abaxx futures now available for trading on TMX Trayport’s Joule platform
- ▸Abaxx futures integrated into TMX Trayport’s Joule trading platform
- ▸Joule platform serves over 9,800 traders globally across energy and commodity markets
- ▸Integration enables cross-market trading and hedging for Abaxx futures
- ▸TMX Trayport facilitates over 620 million trades annually across global energy markets
- ▸Partnership expands distribution for Abaxx commodity exchange and clearinghouse
Abaxx Exchange Joins Singapore Bullion Market Association to Expand Gold Market Infrastructure
- ▸Abaxx Singapore joins Singapore Bullion Market Association as Local Associate Member
- ▸Membership supports growth of Abaxx Exchange kilobar futures contract in Asia
- ▸Abaxx demonstrates T+0 physical gold collateral mobilization for trade finance
- ▸Targets inefficiencies in $47 billion gold trade finance segment
- ▸Integration aims to strengthen hedging efficiency in Asian time zone
Cboe Proposes SEC Approval for Near 24x5 U.S. Equities Trading on EDGX Exchange
- ▸Proposed SEC filing to extend EDGX trading to near 24x5 schedule
- ▸Trading access would span from Sunday night through Friday evening
- ▸Current share price $292.89 with 18.05% YTD return
- ▸Fair value estimate calculated at $286.08, suggesting 2.4% overvaluation
- ▸Growth driven by derivatives, data, and global spot market volume
Cboe unveils BITVX bitcoin volatility index and new Mini S&P 500 prediction contracts
- ▸Launched BITVX index applying VIX methodology to iShares Bitcoin Trust ETF options
- ▸Introduced three-tiered payout Mini S&P 500 prediction market contracts
- ▸Strategy aims to extend volatility franchise into digital assets and event trading
- ▸Projects $2.6B revenue and $1.1B earnings by 2028
- ▸Focuses on differentiating exchange-listed, centrally cleared products from rival prediction platforms