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Cboe Global Markets Reports Results for Fourth Quarter 2024 and Full Year

Fourth Quarter and Full Year Highlights*
- Diluted EPS for the Quarter of $1.86, Down 6 percent; Diluted EPS for the Full Year of $7.21, Up 1 percent
- Adjusted Diluted EPS¹ for the Quarter of $2.10, Up 2 percent; Adjusted Diluted EPS¹ for the Full Year of $8.61, Up 10 percent
- Net Revenue for the Quarter of $524.5 million, Up 5 percent; Record Net Revenue for the Full Year of $2.1 billion, Up 8 percent
- Establishing 2025 Organic Total Net Revenue Growth Target2 of mid single digits and Cboe Data Vantage3 Organic Net Revenue Growth Target2 of mid to high single digits
- Establishing 2025 Adjusted Operating Expense Guidance2 of $837 to $852 million
CHICAGO, Feb. 7, 2025 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the fourth quarter of 2024 and full year.
“Cboe reported strong fourth quarter results, capping full year 2024 net revenue growth of 8% to a record $2.1 billion, diluted EPS of $7.21, and record adjusted diluted EPS1 of $8.61, up 10% year-over-year,” said Fredric Tomczyk, Cboe Global Markets Chief Executive Officer. “While the robust options volumes were a standout for 2024, the results were notable in that each category – Derivatives Markets, Data Vantage, and Cash and Spot Markets – contributed to the fourth quarter and full year growth. We enter 2025 on solid footing, with a refined strategic focus and the financial flexibility to execute on our vision. We remain well positioned to benefit from the secular market trends to drive durable growth for shareholders.”
“In the fourth quarter, Cboe generated solid net revenues and earnings results to finish a record year,” said Jill Griebenow, Cboe Global Markets Executive Vice President, Chief Financial Officer. “Derivatives Markets net revenue was up 8% in 2024, driven by record volumes in our options business. Data Vantage net revenue grew 7% in 2024, and Cash and Spot Markets net revenue increased an impressive 10% for the full year. Following another record year of revenue generation, we anticipate organic total net revenue growth2 will be in the mid single digit range in 2025. We anticipate Data Vantage organic net revenue growth2 will be in the mid to high single digit range in 2025. Our revenue growth expectations are balanced by our disciplined expense focus, with the introduction of our full year adjusted operating expense guidance2 range of $837 to $852 million. 2025 is off to a strong start, and we look forward to delivering on our objectives for shareholders in the year ahead.”
* |
All comparisons are fourth quarter 2024 or full year compared to the same period in 2023. |
(1) |
A full reconciliation of our non-GAAP results to our GAAP (“Generally Accepted Accounting Principles”) results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables. |
(2) |
Specific quantification of the amounts that would be required to reconcile the company’s organic net revenue growth guidance and adjusted operating expenses guidance are not available. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related revenues and costs that would be required to reconcile to GAAP revenues less cost of revenues, GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company’s organic net revenue growth guidance and adjusted operating expenses would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
(3) |
Cboe Data Vantage refers to the company’s Cboe Data Vantage business (formerly known as Data and Access Solutions). Cboe Data Vantage is subsequently referred to as Data Vantage throughout this press release. |
Consolidated Fourth Quarter Results
The table below presents summary selected unaudited condensed consolidated financial information for the company as reported and on an adjusted basis for the three months ended December 31, 2024 and 2023.
Table 1 |
|||||||||||||||||
Consolidated Fourth Quarter Results ($ in millions except per share) |
4Q24 |
4Q23 |
Change |
4Q24 Adjusted1 |
4Q23 Adjusted1 |
Change |
|||||||||||
Total Revenues Less Cost of Revenues |
$ 524.5 |
$ 499.0 |
5 % |
$ 524.5 |
$ 499.0 |
5 % |
|||||||||||
Total Operating Expenses |
$ 226.0 |
$ 205.0 |
10 % |
$ 204.8 |
$ 191.7 |
7 % |
|||||||||||
Operating Income |
$ 298.5 |
$ 294.0 |
2 % |
$ 319.7 |
$ 307.3 |
4 % |
|||||||||||
Operating Margin % |
56.9 % |
58.9 % |
(2.0)pp |
61.0 % |
61.6 % |
(0.6)pp |
|||||||||||
Net Income Allocated to Common Stockholders |
$ 195.6 |
$ 210.8 |
(7) % |
$ 221.2 |
$ 218.8 |
1 % |
|||||||||||
Diluted Earnings Per Share |
$ 1.86 |
$ 1.98 |
(6) % |
$ 2.10 |
$ 2.06 |
2 % |
|||||||||||
EBITDA1 |
$ 316.6 |
$ 333.8 |
(5) % |
$ 331.6 |
$ 320.7 |
3 % |
|||||||||||
EBITDA Margin %1 |
60.4 % |
66.9 % |
(6.5)pp |
63.2 % |
64.3 % |
(1.1)pp |
- Total revenues less cost of revenues (referred to as “net revenue”2) of $524.5 million increased 5 percent, compared to $499.0 million in the prior-year period, a result of increases in cash and spot markets, Data Vantage, and derivatives markets net revenue2.
- Total operating expenses were $226.0 million versus $205.0 million in the fourth quarter of 2023, an increase of $21.0 million. This increase was primarily due to the change in contingent consideration related to prior acquisitions and higher travel and promotional expenses, technology support services, and professional fees and outside services. Adjusted operating expenses1 of $204.8 million increased 7 percent compared to $191.7 million in the fourth quarter of 2023. This increase was primarily due to higher travel and promotional expenses, technology support services, and professional fees and outside services.
- The effective tax rate for the fourth quarter of 2024 was 29.7 percent as compared with 26.3 percent in the fourth quarter of 2023. The higher effective tax rate in 2024 is primarily due to tax benefits arising in 2023 from changes in contingent consideration and valuation allowance releases. The effective tax rate on adjusted earnings1 was 29.5 percent, up 2.2 percentage points when compared with 27.3 percent in last year’s fourth quarter. The change was primarily due to lower non-deductible compensation in 2023 resulting from executive changes.
- Diluted EPS for the fourth quarter of 2024 decreased 6 percent to $1.86 compared to the fourth quarter of 2023. Adjusted diluted EPS1 of $2.10 increased 2 percent compared to the fourth quarter of 2023.
Business Segment Information
Table 2 |
|||||
Total Revenues Less Cost of Revenues by Business Segment (in millions) |
4Q24 |
4Q23 |
Change |
||
Options |
$ 324.3 |
$ 314.5 |
3 % |
||
North American Equities |
94.9 |
86.3 |
10 % |
||
Europe and Asia Pacific |
56.2 |
48.0 |
17 % |
||
Futures |
30.2 |
32.4 |
(7) % |
||
Global FX |
19.4 |
18.9 |
3 % |
||
Digital |
(0.5) |
(1.1) |
* % |
||
Total |
$ 524.5 |
$ 499.0 |
5 % |
(1) |
A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables. |
(2) |
See the attached tables on page 10 for “Net Revenue by Revenue Caption.” |
* |
Not meaningful |
Discussion of Results by Business Segment1:
Options:
- Record Options net revenue of $324.3 million was up $9.8 million, or 3 percent, from the fourth quarter of 2023. Net transaction and clearing fees2 increased primarily as a result of an 8 percent increase in multi-listed options trading volumes and multi-listed revenue per contract (“RPC”) versus the fourth quarter of 2023. Market data fees increased 13 percent and access and capacity fees were 3 percent higher than the fourth quarter of 2023.
- Net transaction and clearing fees2 increased $2.6 million, or 1 percent, reflecting a 5 percent increase in total options average daily volume (“ADV”), partially offset by a 5 percent decrease in total options RPC compared to the fourth quarter of 2023. The decrease in total options RPC was due to a mix shift, with index options representing a lower percentage of total options volume.
- Cboe’s Options exchanges had total market share of 30.4 percent for the fourth quarter of 2024 compared to 33.5 percent in the fourth quarter of 2023, a result of lower multi-listed market share as compared to the fourth quarter of 2023.
North American (N.A.) Equities:
- N.A. Equities net revenue of $94.9 million increased $8.6 million, or 10 percent, from the fourth quarter of 2023, reflecting higher net transaction and clearing fees2 and access and capacity fees, partially offset by a decline in industry market data fees.
- Net transaction and clearing fees2 increased by $6.4 million, or 28 percent, compared to the fourth quarter of 2023. The increase was driven by stronger industry volumes as well as improved net capture rates for on-exchange U.S. Equities, partially offset by lower market share in on-exchange U.S. Equities and Canadian Equities as compared to the fourth quarter of 2023.
- Cboe’s U.S. Equities exchanges had market share of 10.8 percent for the fourth quarter of 2024 compared to 13.0 percent in the fourth quarter of 2023 given higher industry off-exchange market share. Cboe’s U.S. Equities off-exchange market share was 17.3 percent, down from 18.4 percent in the fourth quarter of 2023. Canadian Equities market share decreased to 14.3 percent as compared to 15.3 percent in the fourth quarter of 2023.
Europe and Asia Pacific (APAC):
- Europe and APAC net revenue of $56.2 million increased by 17 percent compared to the fourth quarter of 2023, reflecting growth in net transaction and clearing fees2 and non-transaction revenues. On a constant currency basis3, net revenues were $56.0 million, up 17 percent compared to the fourth quarter of 2023. European Equities average daily notional value (“ADNV”) traded on Cboe European Equities was €10.4 billion, up 15 percent compared to the fourth quarter of 2023 given a 12 percent increase in industry market volumes. Japanese Equities ADNV was 39 percent higher and Australian Equities ADNV was 9 percent higher than the fourth quarter of 2023.
- For the fourth quarter of 2024, Cboe European Equities had 24.6 percent market share, up from 23.9 percent in the fourth quarter of 2023. Cboe European Equities net capture rate increased 12 percent given a mix shift to higher capture products. Cboe Australia had 20.8 percent market share for the fourth quarter of 2024, up from 20.3 percent in the fourth quarter of 2023. Cboe Japan grew market share to 4.9 percent in the fourth quarter of 2024 from 4.0 percent in the fourth quarter of 2023.
Futures:
- Futures net revenue of $30.2 million decreased $2.2 million, or 7 percent, from the fourth quarter of 2023 due to a decrease in net transaction and clearing fees2.
- Net transaction and clearing fees2 decreased $2.2 million, reflecting a 12 percent decline in ADV during the quarter.
Global FX:
- Global FX net revenue of $19.4 million increased 3 percent due to higher net transaction and clearing fees2. Net capture rate per one million dollars traded was $2.72 for the quarter, up 5 percent compared to $2.60 in the fourth quarter of 2023, and ADNV traded on the Cboe FX platform was $45.6 billion for the quarter, down 3 percent compared to last year’s fourth quarter.
- Cboe FX market share was 19.0 percent for the quarter compared to 21.3 percent in last year’s fourth quarter.
(1) |
The Digital segment is not further discussed as results were not material during the fourth quarter of 2024. |
(2) |
See the attached tables on page 10 for “Net Transaction and Clearing Fees by Business Segment.” |
(3) |
A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables. |
Note, the key performance metrics referenced represent the change in the unrounded metrics figures. |
2025 Fiscal Year Financial Guidance
Cboe provided guidance for the 2025 fiscal year as noted below.
- Organic total net revenue growth1 is expected to be in the mid single digit range in 2025.
- Organic net revenue growth1 from Data Vantage is expected to be in the mid to high single digit range in 2025.
- Adjusted operating expenses1 in 2025 are expected to be in the range of $837 to $852 million. The guidance excludes the expected amortization of acquired intangible assets of $70 million; the company adjusts for this amount in its non-GAAP reconciliation.
- Depreciation and amortization expense for 2025 is expected to be in the range of $55 to $59 million, excluding the expected amortization of acquired intangible assets.
- The effective tax rate on adjusted earnings1 for the full year 2025 is expected to be in the range of 28.5 to 30.5 percent. Significant changes in trading volume, expenses, tax laws or rates and other items could materially impact this expectation.
- Capital expenditures for 2025 are expected to be in the range of $75 to $85 million.
(1) |
Specific quantification of the amounts that would be required to reconcile the company’s organic and inorganic growth guidance, adjusted operating expenses guidance, annualized adjusted operating expenses guidance, and the effective tax rate on adjusted earnings guidance are not available. Acquisitions are considered organic after 12 months of closing. The company believes that there is uncertainty and unpredictability with respect to certain of its GAAP measures, primarily related to acquisition-related revenues and costs that would be required to reconcile to GAAP revenues less cost of revenues, GAAP operating expenses and GAAP effective tax rate, which preclude the company from providing accurate guidance on certain forward-looking GAAP to non-GAAP reconciliations. The company believes that providing estimates of the amounts that would be required to reconcile the range of the company’s organic growth, adjusted operating expenses, annualized adjusted operating expenses, and the effective tax rate on adjusted earnings would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above. |
Capital Management
At December 31, 2024, the company had cash and cash equivalents of $920.3 million and adjusted cash2 of $879.5 million. Total debt as of December 31, 2024 was $1,441.0 million.
The company paid cash dividends of $66.4 million, or $0.63 per share, during the fourth quarter of 2024 and there were no share repurchases in the fourth quarter of 2024. As of December 31, 2024, the company had approximately $679.8 million of availability remaining under its existing share repurchase authorizations.
Earnings Conference Call
Executives of Cboe Global Markets will host a conference call to review its fourth quarter financial results today, February 7, 2025, at 8:30 a.m. ET/7:30 a.m. CT. The conference call and any accompanying slides will be publicly available via live webcast from the Investor Relations section of the company’s website at www.cboe.com under Events & Presentations. Participants may also listen via telephone by dialing (800) 715-9871 (toll-free) or (646) 307-1963 (toll) and using the Conference ID 5196331. Telephone participants should place calls 10 minutes prior to the start of the call. The webcast will be archived on the company’s website for replay.
(2) |
A full reconciliation of our non-GAAP results to our GAAP results is included in the attached tables. See “Non-GAAP Information” in the accompanying financial tables. |
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, and FX, across North America, Europe, and Asia Pacific. Above all, Cboe is committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel, increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; risks relating to digital assets, including winding down the Cboe Digital spot market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
The condensed consolidated statements of income and balance sheets are unaudited and subject to revision.
Cboe Media Contacts: |
Analyst Contact: |
|||
Angela Tu |
Tim Cave |
Kenneth Hill, CFA |
||
(646) 856-8734 |
+44 (0) 7593 506 719 |
(312) 786-7559 |
||
atu@cboe.com |
tcave@cboe.com |
khill@cboe.com |
CBOE-F
Trademarks:
Cboe®, Cboe Global Markets®, Cboe Volatility Index®, Cboe Clear®, Cboe Datashop®, BIDS Trading®, BZX®, BYX®, Cboe Clear®, EDGX®, EDGA®, MATCHNow®, and VIX® are registered trademarks and Cboe Data VantageSM is a service mark of Cboe Global Markets, Inc. and its subsidiaries. All other trademarks and service marks are the property of their respective owners.
Cboe Global Markets, Inc.
|
|||||
4Q 2024 |
3Q 2024 |
2Q 2024 |
1Q 2024 |
4Q 2023 |
|
Options |
|||||
Total industry ADV (in thousands) |
51,635 |
48,733 |
46,129 |
47,452 |
44,410 |
Total Company Options ADV (in thousands) |
15,673 |
14,882 |
14,384 |
14,833 |
14,896 |
Multi-listed options |
11,633 |
10,655 |
10,367 |
10,744 |
10,725 |
Index options |
4,040 |
4,227 |
4,017 |
4,089 |
4,172 |
Total Options market share |
30.4 % |
30.5 % |
31.2 % |
31.3 % |
33.5 % |
Multi-listed options |
24.5 % |
24.0 % |
24.6 % |
24.8 % |
26.7 % |
Total Options RPC: |
$ 0.281 |
$ 0.298 |
$ 0.295 |
$ 0.299 |
$ 0.297 |
Multi-listed options |
$ 0.064 |
$ 0.063 |
$ 0.062 |
$ 0.064 |
$ 0.060 |
Index options |
$ 0.905 |
$ 0.892 |
$ 0.898 |
$ 0.915 |
$ 0.908 |
North American Equities |
|||||
U.S. Equities – Exchange: |
|||||
Total industry ADV (shares in billions) |
13.6 |
11.5 |
11.8 |
11.8 |
11.2 |
Market share % |
10.8 % |
10.9 % |
11.4 % |
12.8 % |
13.0 % |
Net capture (per 100 touched shares) |
$ 0.018 |
$ 0.024 |
$ 0.027 |
$ 0.019 |
$ 0.013 |
U.S. Equities – Off-Exchange: |
|||||
ADV (touched shares, in millions) |
80.0 |
79.3 |
74.7 |
82.0 |
76.1 |
Off-Exchange ATS Block Market Share % (reported on a one-month lag) |
17.3 % |
17.6 % |
17.8 % |
17.6 % |
18.4 % |
Net capture (per 100 touched shares) |
$ 0.126 |
$ 0.135 |
$ 0.136 |
$ 0.132 |
$ 0.137 |
Canadian Equities: |
|||||
ADV (matched shares, in millions) |
157.4 |
135.9 |
150.6 |
146.3 |
141.8 |
Total market share % |
14.3 % |
14.6 % |
15.0 % |
15.3 % |
15.3 % |
Net capture (per 10,000 touched shares, in Canadian Dollars) |
$ 4.008 |
$ 4.240 |
$ 4.046 |
$ 3.997 |
$ 3.905 |
Europe and Asia Pacific |
|||||
European Equities: |
|||||
Total industry ADNV (Euros – in billions) |
€ 42.3 |
€ 38.9 |
€ 42.6 |
€ 41.8 |
€ 37.7 |
Market share % |
24.6 % |
23.8 % |
22.5 % |
23.7 % |
23.9 % |
Net capture (per matched notional value (bps), in Euros) |
€ 0.261 |
€ 0.257 |
€ 0.251 |
€ 0.249 |
€ 0.233 |
Cboe Clear Europe: |
|||||
Trades cleared (in thousands) |
328,976.1 |
306,882.5 |
299,019.3 |
294,325.7 |
281,938.1 |
Fee per trade cleared (in Euros) |
€ 0.008 |
€ 0.008 |
€ 0.008 |
€ 0.008 |
€ 0.010 |
Net settlement volume (shares in thousands) |
2,962.6 |
2,947.6 |
2,764.0 |
2,524.6 |
2,511.6 |
Net fee per settlement (in Euros) |
€ 1.002 |
€ 1.026 |
€ 1.038 |
€ 1.072 |
€ 0.899 |
Australian Equities: |
|||||
ADNV (AUD – in billions) |
$ 0.8 |
$ 0.8 |
$ 0.8 |
$ 0.8 |
$ 0.7 |
Market share – Continuous |
20.8 % |
20.8 % |
20.8 % |
20.4 % |
20.3 % |
Net capture (per matched notional value (bps), in Australian Dollars) |
$ 0.154 |
$ 0.156 |
$ 0.155 |
$ 0.156 |
$ 0.157 |
Japanese Equities: |
|||||
ADNV (JPY – in billions) |
¥ 263.8 |
¥ 323.3 |
¥ 315.2 |
¥ 315.9 |
¥ 190.2 |
Market share – Lit Continuous |
4.9 % |
5.4 % |
5.5 % |
5.0 % |
4.0 % |
Net capture (per matched notional value (bps), in Yen) |
¥ 0.233 |
¥ 0.221 |
¥ 0.229 |
¥ 0.227 |
¥ 0.252 |
Futures |
|||||
ADV (in thousands) |
206.4 |
273.7 |
253.6 |
220.0 |
233.4 |
RPC |
$ 1.765 |
$ 1.767 |
$ 1.757 |
$ 1.749 |
$ 1.729 |
Global FX |
|||||
Spot market share % |
19.0 % |
19.1 % |
20.2 % |
20.3 % |
21.3 % |
ADNV ($ – in billions) |
$ 45.6 |
$ 48.3 |
$ 47.7 |
$ 45.3 |
$ 47.0 |
Net capture (per one million dollars traded) |
$ 2.72 |
$ 2.66 |
$ 2.69 |
$ 2.62 |
$ 2.60 |
ADV = average daily volume; ADNV = average daily notional value.
RPC, average revenue per contract, for options and futures represents total net transaction fees recognized for the period divided by total contracts traded during the period.
Touched volume represents the total number of shares of equity securities and ETFs internally matched on our exchanges or routed to and executed on an external market center.
Matched volume represents the total number of shares of equity securities and ETFs executed on our exchanges.
U.S. Equities – Exchange, “net capture per 100 touched shares” refers to transaction fees less liquidity payments and routing and clearing costs divided by the product of one-hundredth ADV of touched shares on BZX, BYX, EDGX and EDGA and the number of trading days. U.S. Equities – Off-Exchange data reflects BIDS Trading. For U.S. Equities – Off-Exchange, “net capture per 100 touched shares” refers to transaction fees less order and execution management system (OMS/EMS) fees and clearing costs divided by the product of one-hundredth ADV of touched shares on BIDS Trading and the number of trading days for the period.
Canadian Equities, “net capture per 10,000 shares” refers to transaction fees divided by the product of one-ten thousandth ADV of shares for MATCHNow and Cboe Canada and the number of trading days. Total market share represents MATCHNow and Cboe Canada volume divided by the total volume of the Canadian Equities market. As of January 1, 2024, the Cboe Canada and MATCHNow entities have been amalgamated into Cboe Canada Inc.
European Equities, “net capture per matched notional value” refers to transaction fees less liquidity payments in Euros divided by the product of ADNV in Euros of shares matched on Cboe Europe Equities and the number of trading days. “Trades cleared” refers to the total number of non-interoperable trades cleared, “Fee per trade cleared” refers to clearing fees divided by number of non-interoperable trades cleared, “Net settlement volume” refers to the total number of settlements executed after netting, and “Net fee per settlement” refers to settlement fees less direct costs incurred to settle divided by the number of settlements executed after netting.
Asia Pacific data reflects data from Cboe Australia and Cboe Japan. Australian Equities, “net capture per matched notional value” refers to transaction fees less liquidity payments in Australian dollars divided by the product of ADNV in Australian dollars of shares matched on Cboe Australia and the number of Australian Equities trading days. Japanese Equities, “net capture per matched notional value” refers to transaction fees less liquidity payments in Japanese Yen divided by the product of ADNV in Japanese Yen of shares matched on Cboe Japan and the number of Japanese Equities trading days.
Global FX, “net capture per one million dollars traded” refers to transaction fees less liquidity payments, if any, divided by the Spot and SEF products of one-thousandth of ADNV traded on the Cboe FX Markets and the number of trading days, divided by two, which represents the buyer and seller that are both charged on the transaction. Market Share represents Cboe FX volume divided by the total volume of publicly reporting spot FX venues (Cboe FX, EBS, Refinitiv, and Euronext FX).
Average transaction fees per contract can be affected by various factors, including exchange fee rates, volume-based discounts and transaction mix by contract type and product type.
Cboe Global Markets, Inc. and Subsidiaries |
|||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||
(in millions, except per share amounts) |
2024 |
2023 |
2024 |
2023 |
|||
Revenues: |
|||||||
Cash and spot markets |
$ 468.6 |
$ 361.7 |
$ 1,670.0 |
$ 1,445.1 |
|||
Data Vantage |
148.7 |
137.5 |
576.6 |
539.2 |
|||
Derivatives markets |
490.3 |
469.5 |
1,847.9 |
1,789.2 |
|||
Total Revenues |
1,107.6 |
968.7 |
4,094.5 |
3,773.5 |
|||
Cost of Revenues: |
|||||||
Liquidity payments |
365.7 |
352.9 |
1,329.1 |
1,385.8 |
|||
Routing and clearing |
18.3 |
16.5 |
68.3 |
79.1 |
|||
Section 31 fees |
142.1 |
40.2 |
391.4 |
185.7 |
|||
Royalty fees and other cost of revenues |
57.0 |
60.1 |
233.3 |
204.9 |
|||
Total Cost of Revenues |
583.1 |
469.7 |
2,022.1 |
1,855.5 |
|||
Revenues Less Cost of Revenues |
524.5 |
499.0 |
2,072.4 |
1,918.0 |
|||
Operating Expenses: |
|||||||
Compensation and benefits |
111.9 |
112.8 |
462.4 |
425.8 |
|||
Depreciation and amortization |
32.1 |
38.0 |
133.0 |
158.0 |
|||
Technology support services |
28.5 |
24.2 |
102.8 |
99.7 |
|||
Professional fees and outside services |
25.6 |
23.3 |
94.8 |
92.0 |
|||
Travel and promotional expenses |
16.4 |
9.0 |
45.8 |
37.6 |
|||
Facilities costs |
6.1 |
5.7 |
24.6 |
25.7 |
|||
Acquisition-related costs |
0.1 |
(0.5) |
1.3 |
7.4 |
|||
Impairment of intangible assets |
— |
— |
81.0 |
— |
|||
Other expenses |
5.3 |
(7.5) |
28.3 |
13.9 |
|||
Total Operating Expenses |
226.0 |
205.0 |
974.0 |
860.1 |
|||
Operating Income |
298.5 |
294.0 |
1,098.4 |
1,057.9 |
|||
Non-operating (Expenses) Income: |
|||||||
Interest expense |
(12.9) |
(13.2) |
(51.5) |
(62.4) |
|||
Interest income |
7.2 |
3.7 |
27.3 |
12.0 |
|||
Earnings on investments |
(0.2) |
4.6 |
29.0 |
39.5 |
|||
Other (expense) income, net |
(12.9) |
(1.6) |
(19.4) |
0.6 |
|||
Total Non-operating (Expenses) Income |
(18.8) |
(6.5) |
(14.6) |
(10.3) |
|||
Income Before Income Tax Provision |
279.7 |
287.5 |
1,083.8 |
1,047.6 |
|||
Income tax provision |
83.2 |
75.5 |
318.9 |
286.2 |
|||
Net Income |
196.5 |
212.0 |
764.9 |
761.4 |
|||
Net income allocated to participating securities |
(0.9) |
(1.2) |
(3.9) |
(3.9) |
|||
Net Income Allocated to Common Stockholders |
$ 195.6 |
$ 210.8 |
$ 761.0 |
$ 757.5 |
|||
Net Income Per Share Allocated to Common Stockholders: |
|||||||
Basic earnings per share |
$ 1.87 |
$ 1.99 |
$ 7.24 |
$ 7.16 |
|||
Diluted earnings per share |
1.86 |
1.98 |
7.21 |
7.13 |
|||
Weighted average shares used in computing income per share: |
|||||||
Basic |
104.8 |
105.7 |
105.1 |
105.8 |
|||
Diluted |
105.1 |
106.2 |
105.5 |
106.2 |
Cboe Global Markets, Inc. and Subsidiaries
|
||||||||||||||||||||||||
(in millions) |
December 31, |
December 31, |
||||||||||||||||||||||
Assets |
||||||||||||||||||||||||
Current Assets: |
||||||||||||||||||||||||
Cash and cash equivalents |
$ 920.3 |
$ 543.2 |
||||||||||||||||||||||
Financial investments |
110.3 |
57.5 |
||||||||||||||||||||||
Accounts receivable, net |
444.6 |
337.3 |
||||||||||||||||||||||
Margin deposits, clearing funds, and interoperability funds |
845.5 |
848.8 |
||||||||||||||||||||||
Digital assets – safeguarded assets |
— |
51.3 |
||||||||||||||||||||||
Income taxes receivable |
73.8 |
74.5 |
||||||||||||||||||||||
Other current assets |
84.6 |
66.7 |
||||||||||||||||||||||
Total Current Assets |
2,479.1 |
1,979.3 |
||||||||||||||||||||||
Investments |
383.7 |
345.3 |
||||||||||||||||||||||
Property and equipment, net |
118.0 |
109.2 |
||||||||||||||||||||||
Property held for sale |
— |
8.7 |
||||||||||||||||||||||
Operating lease right of use assets |
124.5 |
136.6 |
||||||||||||||||||||||
Goodwill |
3,124.2 |
3,140.6 |
||||||||||||||||||||||
Intangible assets, net |
1,376.9 |
1,561.5 |
||||||||||||||||||||||
Other assets, net |
182.7 |
206.3 |
||||||||||||||||||||||
Total Assets |
$ 7,789.1 |
$ 7,487.5 |
||||||||||||||||||||||
Liabilities and Stockholders’ Equity |
||||||||||||||||||||||||
Current Liabilities: |
||||||||||||||||||||||||
Accounts payable and accrued liabilities |
$ 359.7 |
$ 412.7 |
||||||||||||||||||||||
Section 31 fees payable |
182.0 |
51.9 |
||||||||||||||||||||||
Deferred revenue |
6.4 |
5.9 |
||||||||||||||||||||||
Margin deposits, clearing funds, and interoperability funds |
845.5 |
848.8 |
||||||||||||||||||||||
Digital assets – safeguarded liabilities |
— |
51.3 |
||||||||||||||||||||||
Income taxes payable |
1.6 |
1.0 |
||||||||||||||||||||||
Current portion of contingent consideration liabilities |
— |
11.8 |
||||||||||||||||||||||
Total Current Liabilities |
1,395.2 |
1,383.4 |
||||||||||||||||||||||
Long-term debt |
1,441.0 |
1,439.2 |
||||||||||||||||||||||
Non-current unrecognized tax benefits |
305.0 |
243.8 |
||||||||||||||||||||||
Deferred income taxes |
186.8 |
217.8 |
||||||||||||||||||||||
Non-current operating lease liabilities |
138.4 |
150.8 |
||||||||||||||||||||||
Other non-current liabilities |
43.1 |
67.5 |
||||||||||||||||||||||
Total Liabilities |
3,509.5 |
3,502.5 |
||||||||||||||||||||||
Stockholders’ Equity: |
||||||||||||||||||||||||
Preferred stock |
— |
— |
||||||||||||||||||||||
Common stock |
1.0 |
1.1 |
||||||||||||||||||||||
Treasury stock at cost |
(1.4) |
(10.5) |
||||||||||||||||||||||
Additional paid-in capital |
1,512.5 |
1,478.6 |
||||||||||||||||||||||
Retained earnings |
2,815.9 |
2,525.2 |
||||||||||||||||||||||
Accumulated other comprehensive loss, net |
(48.4) |
(9.4) |
||||||||||||||||||||||
Total Stockholders’ Equity |
4,279.6 |
3,985.0 |
||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity |
$ 7,789.1 |
$ 7,487.5 |
Table 3 |
||||||||||||||||||||||||
Net Transaction and Clearing |
Consolidated |
Options |
N.A. Equities |
Europe and APAC |
Futures |
Global FX |
Digital |
|||||||||||||||||
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
Transaction and clearing fees |
$ 762.6 |
$ 734.5 |
$ 418.0 |
$ 419.0 |
$ 260.6 |
$ 240.0 |
$ 41.4 |
$ 35.3 |
$ 25.9 |
$ 25.4 |
$ 16.6 |
$ 15.8 |
$ 0.1 |
$ (1.0) |
||||||||||
Liquidity payments |
(365.7) |
(352.9) |
(131.7) |
(135.3) |
(222.2) |
(209.5) |
(8.5) |
(8.0) |
(2.7) |
— |
— |
— |
(0.6) |
(0.1) |
||||||||||
Routing and clearing |
(18.3) |
(16.5) |
(4.3) |
(4.3) |
(9.1) |
(7.6) |
(4.5) |
(4.3) |
— |
— |
(0.4) |
(0.3) |
— |
— |
||||||||||
Net transaction and clearing fees |
$ 378.6 |
$ 365.1 |
$ 282.0 |
$ 279.4 |
$ 29.3 |
$ 22.9 |
$ 28.4 |
$ 23.0 |
$ 23.2 |
$ 25.4 |
$ 16.2 |
$ 15.5 |
$ (0.5) |
$ (1.1) |
||||||||||
Table 4 |
||||||||
Net Revenue by Revenue Caption Three Months Ended December 31, 2024 and 2023 (in millions) |
Cash and Spot Markets Three Months Ended December 31, |
Data Vantage Three Months Ended December 31, |
Derivatives Markets Three Months Ended December 31, |
Total Three Months Ended December 31, |
||||
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
|
Transaction and clearing fees |
$ 318.6 |
$ 290.2 |
$ — |
$ — |
$ 444.0 |
$ 444.3 |
$ 762.6 |
$ 734.5 |
Access and capacity fees |
— |
— |
95.0 |
88.7 |
— |
— |
95.0 |
88.7 |
Market data fees |
14.3 |
17.0 |
53.0 |
47.9 |
8.3 |
7.8 |
75.6 |
72.7 |
Regulatory fees |
114.2 |
32.2 |
— |
— |
37.0 |
15.6 |
151.2 |
47.8 |
Other revenue |
21.5 |
22.3 |
0.7 |
0.9 |
1.0 |
1.8 |
23.2 |
25.0 |
Total revenues |
$ 468.6 |
$ 361.7 |
$ 148.7 |
$ 137.5 |
$ 490.3 |
$ 469.5 |
$ 1,107.6 |
$ 968.7 |
Liquidity payments |
$ 229.7 |
$ 217.0 |
$ — |
$ — |
$ 136.0 |
$ 135.9 |
$ 365.7 |
$ 352.9 |
Routing and clearing |
14.1 |
12.2 |
— |
— |
4.2 |
4.3 |
18.3 |
16.5 |
Section 31 fees |
114.1 |
32.0 |
— |
— |
28.0 |
8.2 |
142.1 |
40.2 |
Royalty fees and other cost of revenues |
11.8 |
13.6 |
2.8 |
2.3 |
42.4 |
44.2 |
57.0 |
60.1 |
Total cost of revenues |
$ 369.7 |
$ 274.8 |
$ 2.8 |
$ 2.3 |
$ 210.6 |
$ 192.6 |
$ 583.1 |
$ 469.7 |
Revenues less cost of revenues (net revenue) |
$ 98.9 |
$ 86.9 |
$ 145.9 |
$ 135.2 |
$ 279.7 |
$ 276.9 |
$ 524.5 |
$ 499.0 |
Non-GAAP Information
In addition to disclosing results determined in accordance with GAAP, Cboe Global Markets has disclosed certain non-GAAP measures of operating performance. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. The non-GAAP measures provided in this press release include adjusted revenue less cost of revenue, adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted earnings, adjusted diluted earnings per share, effective tax rate on adjusted earnings, adjusted cash, net revenues in constant currency, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin.
Management believes that the non-GAAP financial measures presented in this press release provide additional and comparative information to assess trends in our core operations and a means to evaluate period-to-period comparisons. Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results.
Amortization expense of acquired intangible assets: We amortize intangible assets acquired in connection with various acquisitions. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. As such, if intangible asset amortization is included in performance measures, it is more difficult to assess the day-to-day operating performance of the businesses, the relative operating performance of the businesses between periods and the earnings power of the company. Therefore, we believe performance measures excluding intangible asset amortization expense provide investors with an additional basis for comparison across accounting periods.
Acquisition-related costs: From time to time, we have pursued acquisitions, which have resulted in expenses which would not otherwise have been incurred in the normal course of the company’s business operations. These expenses include integration costs, as well as legal, due diligence, impairment charges, and other third-party transaction costs. The frequency and the amount of such expenses vary significantly based on the size, timing, and complexity of the transaction. Accordingly, we exclude these costs for purposes of calculating non-GAAP measures which provide an additional analysis of Cboe’s ongoing operating performance or comparisons in Cboe’s performance between periods.
The tables below show the reconciliation of each financial measure from GAAP to non-GAAP. The non-GAAP financial measures exclude the impact of those items detailed below and are referred to as adjusted financial measures.
Reconciliation of GAAP and Non-GAAP Information |
||||||||
Table 5 |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||
(in millions, except per share amounts) |
2024 |
2023 |
2024 |
2023 |
||||
Reconciliation of Net Income Allocated to Common Stockholders to Non- |
||||||||
Net income allocated to common stockholders |
$ 195.6 |
$ 210.8 |
$ 761.0 |
$ 757.5 |
||||
Non-GAAP adjustments |
||||||||
Acquisition-related costs (1) |
0.1 |
(0.5) |
1.3 |
7.4 |
||||
Amortization of acquired intangible assets (2) |
20.6 |
28.2 |
88.7 |
116.6 |
||||
Gain on Cboe Digital non-recourse notes and warrants wind down (3) |
— |
— |
(1.4) |
— |
||||
Cboe Digital syndication wind down (4) |
— |
— |
(1.0) |
— |
||||
Change in contingent consideration (5) |
— |
(14.4) |
2.1 |
(14.4) |
||||
Impairment of intangible assets (6) |
— |
— |
81.0 |
— |
||||
Loss on investments (7) |
14.4 |
1.8 |
31.4 |
1.8 |
||||
Costs related to Cboe Digital wind down (8) |
0.5 |
— |
2.1 |
— |
||||
Gain on sale of property held for sale (9) |
— |
— |
(1.0) |
— |
||||
Income from investment (10) |
— |
— |
— |
(2.1) |
||||
Total Non-GAAP adjustments |
35.6 |
15.1 |
203.2 |
109.3 |
||||
Income tax expense related to the items above |
(7.9) |
(7.4) |
(52.2) |
(30.7) |
||||
Tax reserves (11) |
(2.5) |
1.9 |
(8.1) |
(6.0) |
||||
Deferred tax re-measurements (12) |
— |
1.1 |
— |
1.1 |
||||
Valuation allowances (13) |
0.6 |
(2.7) |
5.0 |
(2.7) |
||||
Net income allocated to participating securities – effect on reconciling items |
(0.2) |
— |
(0.9) |
(0.4) |
||||
Adjusted earnings |
$ 221.2 |
$ 218.8 |
$ 908.0 |
$ 828.1 |
||||
Reconciliation of Diluted EPS to Non-GAAP |
||||||||
Diluted earnings per common share |
$ 1.86 |
$ 1.98 |
$ 7.21 |
$ 7.13 |
||||
Per share impact of non-GAAP adjustments noted above |
0.24 |
0.08 |
1.40 |
0.67 |
||||
Adjusted diluted earnings per common share |
$ 2.10 |
$ 2.06 |
$ 8.61 |
$ 7.80 |
||||
Reconciliation of Operating Margin to Non-GAAP |
||||||||
Revenue less cost of revenue |
$ 524.5 |
$ 499.0 |
$ 2,072.4 |
$ 1,918.0 |
||||
Non-GAAP adjustments noted above |
— |
— |
(1.0) |
— |
||||
Adjusted revenue less cost of revenue |
$ 524.5 |
$ 499.0 |
$ 2,071.4 |
$ 1,918.0 |
||||
Operating expenses (14) |
$ 226.0 |
$ 205.0 |
$ 974.0 |
$ 860.1 |
||||
Non-GAAP adjustments noted above |
21.2 |
13.3 |
175.2 |
109.6 |
||||
Adjusted operating expenses |
$ 204.8 |
$ 191.7 |
$ 798.8 |
$ 750.5 |
||||
Operating income |
$ 298.5 |
$ 294.0 |
$ 1,098.4 |
$ 1,057.9 |
||||
Non-GAAP adjustments noted above |
21.2 |
13.3 |
174.2 |
109.6 |
||||
Adjusted operating income |
$ 319.7 |
$ 307.3 |
$ 1,272.6 |
$ 1,167.5 |
||||
Adjusted operating margin (15) |
61.0 % |
61.6 % |
61.4 % |
60.9 % |
||||
Reconciliation of Income Tax Rate to Non-GAAP |
||||||||
Income before income taxes |
$ 279.7 |
$ 287.5 |
$ 1,083.8 |
$ 1,047.6 |
||||
Non-GAAP adjustments noted above |
35.6 |
15.1 |
203.2 |
109.3 |
||||
Adjusted income before income taxes |
$ 315.3 |
$ 302.6 |
$ 1,287.0 |
$ 1,156.9 |
||||
Income tax expense |
$ 83.2 |
$ 75.5 |
$ 318.9 |
$ 286.2 |
||||
Non-GAAP adjustments noted above |
9.8 |
7.1 |
55.3 |
38.3 |
||||
Adjusted income tax expense |
$ 93.0 |
$ 82.6 |
$ 374.2 |
$ 324.5 |
||||
Adjusted income tax rate |
29.5 % |
27.3 % |
29.1 % |
28.0 % |
(1) |
This amount includes acquisition-related costs primarily from the company’s Cboe Digital, Cboe Canada, and Cboe Asia Pacific acquisitions, which are included in acquisition-related costs on the condensed consolidated statements of income. |
(2) |
This amount represents the amortization of acquired intangible assets related to the company’s acquisitions, which is included in depreciation and amortization on the condensed consolidated statements of income. |
(3) |
This amount represents the revaluation and the gain associated with the wind down of the Cboe Digital non-recourse notes and warrants, which is included in other (expense) income, net on the condensed consolidated statements of income. |
(4) |
This amount represents the contra-revenue that was reversed as a result of the Cboe Digital syndication wind down, which is included in transaction and clearing fees on the condensed consolidated statements of income. |
(5) |
This amount represents the gains and losses related to contingent consideration liabilities achieved related to the acquisitions of Cboe Canada and Cboe Asia Pacific, which is included in other expenses on the condensed consolidated statements of income. |
(6) |
This amount represents the impairment of intangible assets related to the Cboe Digital wind down, which is included in impairment of intangible assets on the condensed consolidated statements of income. |
(7) |
This amount represents the net loss on investments related to the company’s minority investments in Globacap Technology Limited, StratiFi Technologies Inc., Coin Metrics Inc., Eris Innovations Holdings, LLC, and Curve Global Limited, as well as the loss on note receivable related to Cboe Digital, which were recorded in 2024 in other (expense) income, net on the condensed consolidated statements of income, and the net loss on minority investments in American Financial Exchange, LLC and Effective Investing Limited recorded in 2023, which are included in other (expense) income, net on the condensed consolidated statements of income. |
(8) |
This amount represents certain wind down costs related to Cboe Digital, which are included in compensation and benefits on the condensed consolidated statements of income. |
(9) |
This amount represents the net gain on the sale of the company’s former headquarters, which is included in other (expense) income, net on the condensed consolidated statements of income. |
(10) |
This amount represents the dividend from the company’s minority investment in Vest Group Inc., which is included in other (expense) income, net on the condensed consolidated statements of income. In 2024, the company determined the dividend to be a recurring event and therefore has been excluded from the non-GAAP adjustments in 2024 and going forward. |
(11) |
This amount represents the tax impact related to Section 199 matters. |
(12) |
This amount represents remeasurements of deferred tax assets and liabilities at prevailing effective tax rates. |
(13) |
This amount represents valuation allowance releases recorded against gross deferred tax assets for net operating losses. |
(14) |
The company sponsors deferred compensation plans held in a trust. The expenses or income related to the deferred compensation plans are included in compensation and benefits ($1.4 million and $3.2 million in expense for the three months ended December 31, 2024 and 2023, respectively, and $3.6 million and $9.2 million in expense for the twelve months ended December 31, 2024 and 2023, respectively), and are directly offset by deferred compensation income, expenses and dividends included within other (expense) income, net ($1.4 million and $3.2 million in income, expense and dividends in the three months ended December 31, 2024 and 2023, respectively, and $3.6 million and $9.2 million in income, expense and dividends in the twelve months ended December 31, 2024 and 2023, respectively), on the condensed consolidated statements of income. The deferred compensation plans’ expenses are not excluded from adjusted operating expenses and do not have an impact on income before income taxes. |
(15) |
Adjusted operating margin represents adjusted operating income divided by adjusted revenue less cost of revenue. |
EBITDA Reconciliations
EBITDA (earnings before interest, income taxes, depreciation and amortization) and Adjusted EBITDA are widely used non-GAAP financial measures of operating performance. EBITDA margin represents EBITDA divided by revenues less cost of revenues (net revenue). It is presented as supplemental information that the company believes is useful to investors to evaluate its results because it excludes certain items that are not directly related to the company’s core operating performance. EBITDA is calculated by adding back to net income interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is calculated by adding back to EBITDA acquisition-related costs, change in contingent consideration, loss on investments, gain on sale of property held for sale, costs related to the Cboe Digital wind down, gain on Cboe Digital non-recourse notes and warrants wind down, impairment of intangible assets, contra-revenue associated with the Cboe Digital syndication wind down, and income from investment. EBITDA and Adjusted EBITDA should not be considered as substitutes either for net income, as an indicator of the company’s operating performance, or for cash flow, as a measure of the company’s liquidity. In addition, because EBITDA and Adjusted EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA margin represents Adjusted EBITDA divided by net revenue.
Table 6 (in millions, except percentages) |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||
Reconciliation of Net Income Allocated to Common Stockholders to EBITDA and |
2024 |
2023 |
2024 |
2023 |
||||
Net income allocated to common stockholders |
$ 195.6 |
$ 210.8 |
$ 761.0 |
$ 757.5 |
||||
Interest expense, net |
5.7 |
9.5 |
24.2 |
50.4 |
||||
Income tax provision |
83.2 |
75.5 |
318.9 |
286.2 |
||||
Depreciation and amortization |
32.1 |
38.0 |
133.0 |
158.0 |
||||
EBITDA |
$ 316.6 |
$ 333.8 |
$ 1,237.1 |
$ 1,252.1 |
||||
EBITDA Margin |
60.4 % |
66.9 % |
59.7 % |
65.3 % |
||||
Non-GAAP adjustments not included in above line items |
||||||||
Acquisition-related costs |
$ 0.1 |
$ (0.5) |
$ 1.3 |
$ 7.4 |
||||
Change in contingent consideration |
— |
(14.4) |
2.1 |
(14.4) |
||||
Loss on investments |
14.4 |
1.8 |
31.4 |
1.8 |
||||
Income from investment |
— |
— |
— |
(2.1) |
||||
Gain on sale of property held for sale |
— |
— |
(1.0) |
— |
||||
Cboe Digital syndication wind down |
— |
— |
(1.0) |
— |
||||
Gain on Cboe Digital non-recourse notes and warrants wind down |
— |
— |
(1.4) |
— |
||||
Impairment of intangible assets |
— |
— |
81.0 |
— |
||||
Costs related to Cboe Digital wind down |
0.5 |
— |
2.1 |
— |
||||
Adjusted EBITDA |
$ 331.6 |
$ 320.7 |
$ 1,351.6 |
$ 1,244.8 |
||||
Adjusted EBITDA Margin |
63.2 % |
64.3 % |
65.2 % |
64.9 % |
||||
Table 7 (in millions) |
December 31, |
December 31, |
||||||
Reconciliation of Cash and Cash Equivalents to Adjusted Cash |
2024 |
2023 |
||||||
Cash and cash equivalents |
$ 920.3 |
$ 543.2 |
||||||
Financial investments |
110.3 |
57.5 |
||||||
Less deferred compensation plan assets |
(40.3) |
(36.7) |
||||||
Less cash collected for Section 31 Fees |
(110.8) |
(30.5) |
||||||
Adjusted Cash |
$ 879.5 |
$ 533.5 |
Table 8 (in millions) |
|||||||
Reconciliation of GAAP Net Revenues to Net Revenues in Constant Currency – |
|||||||
Three Months Ended |
Twelve Months Ended |
||||||
2024 |
2023 |
2024 |
2023 |
||||
Europe and Asia Pacific net revenues |
$ 56.2 |
$ 48.0 |
$ 220.2 |
$ 190.2 |
|||
Constant currency adjustment |
(0.2) |
(1.9) |
(0.7) |
(0.4) |
|||
Europe and Asia Pacific net revenues in constant currency1 |
$ 56.0 |
$ 46.1 |
$ 219.5 |
$ 189.8 |
(1) |
Net revenues in constant currency is calculated by converting the current period GAAP net revenues in local currency using the foreign currency exchange rates that were in effect during the previous comparable period. |
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Fintech
Fintech Pulse: Your Daily Industry Brief – March 17, 2025 – Finastra, I2C, Fintech Australia, Mastercard, Paymentology, Rapyd, PayU Global Payment Organization

In today’s rapidly evolving fintech landscape, the convergence of innovative technology, strategic partnerships, and regulatory evolution continues to redefine how financial services are delivered around the world. This in-depth briefing examines the latest news shaping the industry—from strategic partnerships that promise to redefine North American payment technology to emerging concerns about a dual-speed fintech ecosystem, and from groundbreaking initiatives in financial inclusion to transformational mergers and acquisitions. As we navigate these developments, our analysis provides an op-ed perspective, blending factual reportage with expert insights to reveal the implications of these shifts on markets, consumers, and the future of finance.
In this comprehensive article, we cover five pivotal stories that are setting the tone for the fintech industry in 2025. Our analysis not only details the news events but also contextualizes them within broader market trends, regulatory shifts, and the digital transformation journey that is reshaping the world of finance. Read on for an engaging and thoughtful exploration of today’s fintech headlines and what they mean for the industry at large.
I. Setting the Stage: A Dynamic Fintech Landscape
The fintech industry has never been more vibrant or transformative. Over the past decade, advances in digital technology have dismantled traditional financial barriers, leading to innovative solutions that democratize access to financial services. Today, fintech is not just about technology; it is about an evolving ecosystem that includes traditional banks, startups, technology giants, and regulatory authorities all playing their part in driving forward an agenda of innovation, inclusion, and efficiency.
The Digital Revolution in Finance
At the heart of this revolution lies the digital transformation of financial services—a movement fueled by the integration of mobile technology, big data analytics, and the ever-expanding reach of cloud computing. These elements are converging to reshape customer expectations and demand more accessible, personalized, and secure financial solutions. The news we cover today highlights several strategic initiatives that further underscore the transformation currently underway.
In the North American payment technology space, for instance, partnerships are emerging that leverage the combined strengths of industry leaders to deliver cutting-edge payment solutions. Meanwhile, regulators and industry observers alike have noted the need for a balanced approach that addresses the risks and opportunities of a bifurcated fintech ecosystem, where innovation must be balanced with stability. Amid this backdrop, global initiatives aimed at enhancing financial inclusion are making headlines, promising to expand access to banking and digital services for underserved populations.
Navigating the Complexity
Navigating this complex terrain requires not just technological know-how but also a keen understanding of the regulatory, economic, and social forces at play. As fintech firms continue to disrupt traditional financial models, they are also grappling with challenges such as cybersecurity, data privacy, and compliance. Each news story we examine today is a reflection of these broader dynamics—a testament to the multifaceted and often unpredictable nature of the fintech ecosystem.
II. Finastra and I2C Partner on North American Payment Technology
One of the most significant announcements in today’s briefing comes from the strategic collaboration between Finastra and I2C. This partnership is poised to reshape the North American payment landscape by harnessing innovative technology and deep market expertise.
The Strategic Alliance
The Finastra-I2C collaboration signals a bold step forward in the evolution of payment technology. Finastra, known for its robust suite of financial software solutions, and I2C, a leading provider of payment and financial transaction solutions, are joining forces to enhance the payment experience for consumers and businesses alike. This union is expected to create a more integrated, seamless, and secure payment infrastructure that meets the growing demand for digital transactions in a post-pandemic economy.
Source: Fintech Magazine
Key Drivers of the Partnership
Several factors underpin this strategic alliance:
- Innovation and Integration: By combining Finastra’s comprehensive financial software with I2C’s agile payment processing capabilities, the partnership is designed to streamline payment processes and reduce friction in digital transactions.
- Market Expansion: The collaboration is strategically positioned to capture new market segments within North America, leveraging each company’s strengths to create products that are both scalable and adaptive to changing consumer behaviors.
- Enhanced Security: With cyber threats evolving at an unprecedented rate, the integration of advanced security protocols is a critical priority. The partnership aims to build a secure payment ecosystem that can thwart cyber attacks and protect sensitive financial data.
- Regulatory Compliance: Navigating the complex regulatory landscape is essential for sustained growth. Both companies are committed to ensuring that their integrated solutions meet rigorous compliance standards, thereby fostering trust among consumers and regulators alike.
Commentary and Analysis
From an op-ed perspective, the Finastra-I2C partnership is emblematic of a broader trend within fintech: the strategic merging of traditional financial expertise with agile, technology-driven innovation. In a market where customer expectations are constantly rising, collaborations such as this are not just beneficial—they are necessary. The strategic alignment promises to not only enhance operational efficiency but also offer a competitive edge in an increasingly crowded marketplace.
Critics might argue that such alliances could lead to market consolidation, potentially stifling competition. However, the counterargument is equally compelling: by pooling resources and expertise, these partnerships can drive innovation, lower operational costs, and ultimately provide consumers with better, more secure services. In this context, the Finastra-I2C collaboration stands as a beacon of progress, demonstrating how strategic alliances can serve as catalysts for industry-wide transformation.
III. Fintech Australia’s Pre-Budget Submission: A Warning of a Two-Speed Ecosystem
In another significant development, Fintech Australia has issued a stark warning regarding the future of the fintech ecosystem. According to their pre-budget submission, the current trajectory could lead to a “two-speed” fintech landscape, where well-resourced entities accelerate ahead, leaving smaller players and innovators struggling to keep pace.
Understanding the Two-Speed Phenomenon
The notion of a two-speed fintech ecosystem reflects the reality that not all players in the market are equipped with the same resources, technological capabilities, or regulatory support. On one side of the spectrum, established financial institutions and large fintech companies are benefiting from significant investments and advanced infrastructure. On the other, smaller firms and startups may face challenges such as limited capital, regulatory hurdles, and competitive pressures that could marginalize their contributions.
Source: FFNews
Implications for the Industry
This dichotomy raises several important questions:
- Innovation vs. Consolidation: While large companies may drive rapid innovation, there is a risk that smaller innovators could be pushed out of the market, reducing overall diversity and creativity.
- Regulatory Considerations: A one-size-fits-all regulatory approach may inadvertently favor larger players who have the resources to comply with complex requirements. Tailored policies that acknowledge the unique challenges faced by smaller firms might be necessary.
- Economic Impact: A bifurcated ecosystem could have far-reaching implications for economic growth and employment. Startups and smaller firms are often key drivers of innovation and job creation, and their marginalization could have negative ripple effects on the broader economy.
Analysis and Commentary
From a critical standpoint, Fintech Australia’s warning is both timely and essential. The concerns about a two-speed ecosystem resonate with a broader discussion about economic inequality in the digital age. As technology continues to disrupt traditional industries, it is imperative that policymakers strike a balance between fostering innovation and ensuring equitable growth.
The call to address this issue in the pre-budget submission underscores the need for forward-thinking regulatory frameworks that not only support large players but also nurture the growth of startups and smaller firms. In the long run, a more balanced ecosystem could lead to more sustainable innovation, ensuring that the benefits of technological advancements are widely shared across society.
Moreover, this warning serves as a wake-up call for investors and industry leaders. The potential risks associated with a bifurcated fintech landscape are not merely theoretical; they have real-world implications for market stability, consumer choice, and the overall health of the financial ecosystem. It is incumbent upon stakeholders to heed this cautionary note and work collaboratively towards building a more inclusive and resilient industry.
IV. Mastercard and Paymentology: A Bold Push for Financial Inclusion in South Africa
In a region marked by both rapid technological adoption and significant socio-economic challenges, Mastercard’s recent announcement of an enhanced collaboration with Paymentology is a beacon of hope. This initiative is geared toward driving financial inclusion in South Africa by leveraging innovative payment solutions to extend financial services to underserved populations.
A Partnership for Progress
Mastercard, a global leader in payment technology, is deepening its collaboration with Paymentology to design and implement solutions that can make a tangible impact on financial inclusion. The initiative aims to address critical issues such as access to banking services, affordability of digital payments, and the development of sustainable financial products that cater to diverse needs.
Source: Mastercard
Strategic Objectives
Several strategic objectives underscore this initiative:
- Bridging the Gap: One of the primary goals is to bridge the digital divide by ensuring that even those in remote or underserved communities have access to reliable and affordable financial services.
- Technological Innovation: The collaboration seeks to integrate cutting-edge payment technology with localized solutions tailored to the unique challenges of the South African market.
- Empowering Consumers: By improving access to financial services, the initiative aims to empower consumers to make informed financial decisions, thereby contributing to overall economic stability and growth.
- Sustainability and Scalability: A key focus is on building scalable solutions that can be adapted to other emerging markets facing similar challenges, thereby amplifying the impact of the initiative beyond South Africa.
Critical Insights and Commentary
The Mastercard-Paymentology collaboration is emblematic of a broader trend in fintech—using technology as a lever for social change. Financial inclusion remains one of the most pressing challenges in many parts of the world, and initiatives like this are critical for reducing inequality and promoting sustainable economic development.
In our view, this partnership is a step in the right direction. It not only highlights the role of technology in driving financial inclusion but also demonstrates how large multinational corporations can use their expertise and resources to address deep-seated socio-economic issues. However, success in this arena will depend on the ability to balance technological innovation with local insights. The challenges in South Africa are complex, and any solution must be adaptable, context-sensitive, and resilient in the face of evolving economic conditions.
Critics might point to the risks of over-reliance on technology, especially in regions where digital literacy and infrastructure can vary widely. Yet, the strategic focus on localizing solutions and ensuring scalability suggests that this initiative is well aware of these challenges and is taking measured steps to mitigate them. In the long run, such collaborations could serve as models for similar efforts in other emerging markets, demonstrating how targeted investments in technology can drive social and economic progress.
V. The State of Fintech in 2024: Reflecting on the Journey and Charting the Future
A comprehensive view of the fintech landscape cannot ignore the broader context of industry trends, market shifts, and evolving consumer behaviors. An in-depth article from Entrepreneur titled “The State of Fintech in 2024” provides a panoramic overview of these dynamics, offering valuable insights into where the industry stands and where it might be headed.
Key Trends and Developments
Entrepreneur’s article outlines several key trends that have defined the fintech sector over the past year:
- Digital Transformation: The accelerated shift toward digital banking and mobile payments has redefined how consumers interact with financial services.
- Rise of Neobanks: The emergence of digital-only banks, or neobanks, is disrupting traditional banking models by offering streamlined, user-friendly services.
- Increased Regulatory Scrutiny: As fintech solutions become more integrated into everyday financial activities, regulatory bodies are stepping in to ensure consumer protection and system integrity.
- Investment in Innovation: Despite economic uncertainties, investment in fintech startups and technology continues to surge, reflecting a strong belief in the transformative potential of digital finance.
Source: Entrepreneur
Analysis and Reflection
The insights provided by Entrepreneur’s piece serve as a crucial barometer for the fintech industry. The journey of fintech over the past year has been marked by remarkable progress in technological innovation and a growing emphasis on customer-centricity. However, these achievements have not come without challenges. Regulatory hurdles, cybersecurity concerns, and the constant need to adapt to rapidly changing market conditions have all contributed to a complex operating environment.
From an analytical perspective, the state of fintech in 2024 underscores a critical transition point. On one hand, the industry has demonstrated its capacity for rapid innovation and disruption. On the other, it faces the daunting task of integrating these innovations within a framework that is secure, compliant, and accessible to all. The op-ed stance here is clear: the future of fintech hinges on its ability to navigate this delicate balance.
For investors, entrepreneurs, and industry stakeholders, the lessons of 2024 are both inspiring and cautionary. The successes of digital banking and mobile payments offer a blueprint for further innovation. Yet, the challenges highlight the need for more robust risk management, clearer regulatory frameworks, and a more inclusive approach to growth. As the fintech ecosystem continues to mature, the narrative will increasingly be about collaboration, adaptation, and a shared commitment to building a sustainable financial future.
VI. Rapyd Acquires PayU Global Payment Organization: A Strategic Move in Fintech as a Service
The final story in our briefing centers on a major deal that has significant implications for the fintech as a service (FaaS) sector. Rapyd, a leading FaaS platform, has acquired PayU Global Payment Organization (GPO), marking a bold move to consolidate its market position and expand its global reach.
Details of the Acquisition
This acquisition represents a strategic effort by Rapyd to enhance its portfolio and broaden its service offerings. By integrating PayU’s global payment capabilities, Rapyd is not only expanding its operational footprint but also reinforcing its commitment to offering comprehensive, end-to-end financial solutions. The transaction is expected to drive synergies in areas such as cross-border payments, fraud prevention, and regulatory compliance.
Source: Crowdfund Insider
Strategic Implications
The implications of this acquisition are manifold:
- Market Consolidation: The deal is indicative of the broader trend toward consolidation in the fintech space. As competition intensifies, companies are increasingly looking to acquire complementary capabilities to strengthen their market position.
- Enhanced Service Offerings: By bringing together Rapyd’s innovative fintech-as-a-service model with PayU’s established payment infrastructure, the combined entity is well positioned to offer a more robust suite of services to a global clientele.
- Accelerated Innovation: The integration of these two platforms is expected to spur innovation, particularly in the areas of digital payments and cross-border transaction technology.
- Global Reach: With PayU’s extensive network and expertise, Rapyd can further expand its influence in emerging markets and reinforce its commitment to driving financial inclusion on a global scale.
Critical Analysis and Opinion
In an op-ed view, this acquisition is a clear signal that the fintech industry is evolving from a landscape characterized by isolated innovations to one defined by strategic integration and consolidation. The move by Rapyd to acquire PayU GPO is not merely about expanding market share—it is about creating a unified platform that can address the multifaceted needs of modern financial ecosystems.
Critically, the deal also raises questions about the pace of consolidation in fintech. While some industry observers express concern that such mergers may reduce competition, others argue that the complexity of today’s financial challenges demands larger, more integrated solutions. From our perspective, the latter view holds significant merit. As the boundaries between traditional finance and digital innovation continue to blur, strategic acquisitions such as this are essential to maintaining momentum and ensuring that the industry remains responsive to consumer needs.
Moreover, this acquisition underscores the increasing importance of financial services platforms that can operate seamlessly across borders, offering secure, efficient, and scalable solutions. In a world where digital transactions are becoming the norm, the ability to integrate multiple payment modalities and adhere to diverse regulatory frameworks is a competitive advantage that few can afford to ignore.
VII. Synthesizing the Headlines: Implications for the Future of Fintech
With these five stories in perspective, it becomes clear that the fintech industry is undergoing a period of profound transformation. Each headline—from strategic alliances to regulatory warnings, from initiatives aimed at financial inclusion to major acquisitions—offers a glimpse into the multifaceted forces driving the sector.
Innovation as the Driving Force
At its core, the evolution of fintech is about innovation. The Finastra-I2C partnership, for example, demonstrates how collaborative innovation can lead to more integrated and secure payment solutions. Such initiatives are crucial as the industry grapples with challenges like cybersecurity and regulatory compliance. In a market where consumer expectations are constantly rising, innovation is not a luxury but a necessity.
The Role of Strategic Partnerships
Strategic partnerships have emerged as a key strategy for navigating the complexities of today’s financial landscape. Whether it’s Finastra joining forces with I2C or Mastercard collaborating with Paymentology, these alliances are designed to leverage complementary strengths and drive collective progress. By pooling resources, expertise, and technology, these partnerships are better equipped to address the challenges of a dynamic market.
Regulatory and Market Dynamics
The cautionary note from Fintech Australia regarding a two-speed ecosystem is a reminder that innovation must be tempered with inclusivity and sustainability. As the industry continues to evolve, regulatory frameworks will need to adapt to ensure that all players—regardless of size—can contribute to and benefit from the digital revolution. A balanced approach will be critical in fostering an environment where both established giants and nimble startups can thrive.
Consolidation and the Future of Fintech as a Service
The acquisition of PayU GPO by Rapyd highlights the consolidation trend within fintech, particularly in the fintech-as-a-service sector. Such moves are indicative of an industry that is maturing and becoming increasingly integrated. While consolidation carries the risk of reduced competition, it also paves the way for more comprehensive, efficient, and innovative financial solutions that can serve a global market.
Broader Economic and Social Impact
The implications of these developments extend beyond the confines of the fintech industry. Enhanced payment systems, improved financial inclusion, and strategic industry partnerships can have a transformative impact on broader economic trends. For instance, improved access to digital financial services can spur economic growth, increase consumer confidence, and drive overall societal progress. As these trends continue to unfold, stakeholders across the board—governments, businesses, and consumers—will need to adapt to a rapidly changing financial landscape.
Looking Ahead
The fintech industry is at a crossroads. The advancements we see today are not isolated incidents; they are part of a broader movement that is reshaping the future of finance. While challenges remain, the progress in digital payments, regulatory innovation, and strategic collaboration offers a promising outlook. It is clear that the road ahead will be marked by continued innovation, strategic partnerships, and a relentless pursuit of efficiency and inclusion.
From an op-ed perspective, the stories covered in today’s briefing should be seen as both a celebration of technological progress and a call to action. They remind us that while the fintech revolution has made tremendous strides, there is still much work to be done in ensuring that the benefits of these innovations are widely shared and that the industry remains resilient in the face of evolving challenges.
VIII. In-Depth Opinion: What These Developments Mean for Stakeholders
For Industry Leaders
The evolving fintech landscape presents both opportunities and challenges for industry leaders. The strategic alliances and acquisitions highlighted in today’s news illustrate that market consolidation is becoming a norm. This trend, while offering the benefits of streamlined operations and enhanced innovation, also calls for a renewed focus on agility and adaptability. Leaders in the fintech space must be willing to embrace change and foster a culture of continuous innovation to remain competitive in a dynamic environment.
Furthermore, the warning from Fintech Australia regarding a two-speed ecosystem underscores the importance of equitable growth. Industry giants must take proactive steps to support smaller innovators, ensuring that the market remains diverse and vibrant. Collaborative initiatives, mentorship programs, and tailored regulatory support can help bridge the gap between large and small players, fostering a more inclusive ecosystem.
For Investors and Entrepreneurs
Investors and entrepreneurs are uniquely positioned to capitalize on these developments. The increasing consolidation in the market signals opportunities for strategic investments in companies that are well-positioned to leverage emerging trends. However, it also calls for careful due diligence. Investors must look beyond short-term gains and focus on long-term sustainability, considering how strategic partnerships and acquisitions might affect market dynamics.
For entrepreneurs, the challenges outlined by Fintech Australia serve as a reminder of the importance of innovation and adaptability. Startups must be prepared to navigate a competitive landscape by leveraging technology, forming strategic alliances, and continuously refining their business models to meet the evolving needs of the market.
For Regulators and Policy Makers
Regulators and policymakers play a crucial role in shaping the future of fintech. The pre-budget submission by Fintech Australia is a clarion call for regulatory frameworks that are responsive to the complexities of a modern fintech ecosystem. It is imperative that policies are designed not only to protect consumers and ensure system integrity but also to foster an environment where innovation can flourish without creating undue disparities between market players.
A balanced approach to regulation will require ongoing dialogue between industry stakeholders, regulatory authorities, and consumer advocates. By collaborating closely, these groups can develop policies that support technological innovation while safeguarding the interests of all participants in the financial ecosystem.
For Consumers
Ultimately, the impact of these developments is most keenly felt by consumers. Enhanced payment technologies, improved financial inclusion initiatives, and more secure digital transactions directly translate into better, more accessible financial services. Consumers stand to benefit from innovations that make banking more convenient, transparent, and secure, even as they navigate the challenges of a rapidly evolving financial landscape.
However, with these benefits come responsibilities. Consumers must remain vigilant about data privacy and cybersecurity, advocating for transparency and accountability from the financial institutions that serve them. In an industry characterized by rapid change, consumer awareness and engagement are critical to ensuring that technological advancements translate into tangible improvements in everyday financial life.
IX. Strategic Recommendations for a Thriving Fintech Future
Based on today’s coverage and analysis, several strategic recommendations emerge for stakeholders across the fintech spectrum:
-
Embrace Collaborative Innovation:
Industry leaders should continue to explore strategic partnerships, as demonstrated by the Finastra-I2C alliance, to drive innovation and create integrated solutions that benefit the entire ecosystem. -
Promote Inclusive Growth:
Regulators and policymakers must work together with industry stakeholders to develop tailored frameworks that ensure small innovators are not left behind in the digital revolution. -
Invest in Secure and Scalable Technologies:
As digital transactions become increasingly prevalent, a strong focus on cybersecurity and scalable payment infrastructures is essential for maintaining consumer trust and driving market expansion. -
Foster Consumer Education and Engagement:
Enhancing financial literacy and digital awareness among consumers is crucial. Stakeholders should invest in initiatives that empower consumers to make informed financial decisions. -
Leverage Cross-Border Collaboration:
With the acquisition of PayU GPO by Rapyd, it is evident that global partnerships can unlock new markets and drive financial inclusion. Expanding these collaborations will be key to addressing the diverse needs of a global audience. -
Monitor and Adapt to Regulatory Changes:
The dynamic nature of fintech requires continuous monitoring of regulatory developments. Proactive engagement with regulatory bodies can help shape policies that balance innovation with consumer protection. -
Prioritize Sustainability and Long-Term Impact:
Short-term gains should never come at the expense of long-term industry stability. Stakeholders must prioritize investments and strategies that contribute to sustainable growth and equitable development across the fintech ecosystem.
X. Conclusion: Charting the Path Forward
The fintech landscape in 2025 is a study in contrasts—a realm where rapid technological innovation meets complex regulatory challenges, where market consolidation offers both opportunities and risks, and where the promise of financial inclusion remains a driving force for change. Today’s headlines, from strategic partnerships like the Finastra-I2C collaboration to the thought-provoking warning from Fintech Australia, paint a picture of an industry in the midst of transformation.
As we have explored throughout this briefing, the challenges facing the fintech sector are as significant as the opportunities. The evolving nature of payment technology, the push for greater financial inclusion, and the ongoing consolidation in the fintech-as-a-service market are all indicative of an industry that is not only growing but also maturing. This maturation requires stakeholders to adopt a holistic approach—one that values collaboration, embraces innovation, and prioritizes long-term sustainability over short-term wins.
For industry leaders, investors, policymakers, and consumers alike, the path forward is clear: the future of fintech lies in a balanced ecosystem that supports technological progress while ensuring that the benefits of innovation are shared equitably. By fostering collaborative partnerships, investing in secure and scalable solutions, and engaging in proactive regulatory dialogue, the fintech community can build a more resilient, inclusive, and dynamic financial landscape.
In our view, the developments discussed today are more than just isolated news items; they are signposts pointing toward a future where finance is more connected, secure, and accessible to all. The journey may be fraught with challenges, but the destination—a more innovative and inclusive financial ecosystem—is well worth the effort.
As you reflect on today’s insights, consider the broader implications of these trends for your business, investments, or personal financial journey. The dynamic interplay of technology, regulation, and market forces will continue to shape the fintech narrative, and staying informed is key to navigating this rapidly changing environment.
Thank you for joining us on this deep dive into the latest fintech news and analysis. We look forward to bringing you more comprehensive updates as the fintech landscape continues to evolve.
Appendix: Detailed Analysis of Key News Items
A. Finastra and I2C: A Case Study in Strategic Collaboration
The Finastra-I2C partnership offers a rich case study on how combining complementary strengths can yield significant benefits. Finastra’s deep expertise in financial software and I2C’s agile payment processing solutions create a symbiotic relationship that enhances product offerings and market reach. This strategic move reflects a broader trend of consolidation in the fintech space, where integration and innovation go hand in hand.
Key takeaways include:
- Enhanced Operational Efficiency: By merging their respective technologies, Finastra and I2C are poised to streamline payment processes, reduce operational friction, and ultimately improve the user experience.
- Market Penetration: The partnership is expected to facilitate deeper market penetration in North America, particularly as consumer demand for digital payment solutions continues to surge.
- Future Innovation: The combined entity is well-positioned to invest in further research and development, ensuring that their integrated solutions remain at the forefront of technological advancements.
B. Fintech Australia’s Warning: Balancing Growth and Inclusivity
Fintech Australia’s pre-budget submission is a clarion call for a more balanced approach to growth. The warning of a two-speed ecosystem underscores the potential risks of allowing resource-rich entities to dominate the market at the expense of smaller innovators.
- Economic Implications: The division of the market could lead to significant disparities in innovation and consumer choice, ultimately affecting economic growth.
- Regulatory Response: Tailored regulatory policies that address the unique challenges of smaller fintech players will be essential to prevent market monopolization and to promote equitable growth.
C. Mastercard and Paymentology in South Africa: A Model for Financial Inclusion
The enhanced collaboration between Mastercard and Paymentology exemplifies how technology can be harnessed to drive meaningful social change.
- Bridging the Digital Divide: The initiative aims to extend the reach of financial services to underserved communities, thereby promoting economic empowerment.
- Innovative Solutions: By integrating state-of-the-art payment technology with localized solutions, the collaboration is poised to set new benchmarks in financial inclusion.
- Scalability and Global Impact: The success of this initiative in South Africa could serve as a model for similar programs in other emerging markets, highlighting the potential for technology-driven social progress.
D. Reflecting on the State of Fintech in 2024
The broader analysis provided by Entrepreneur on the state of fintech in 2024 serves as a critical reminder of the rapid pace of change in the industry.
- Digital Transformation: The accelerated shift toward digital banking and mobile payments continues to redefine customer experiences.
- Regulatory and Investment Trends: Despite economic uncertainties, continued investments in fintech signal strong confidence in the sector’s long-term growth prospects.
E. Rapyd’s Strategic Acquisition of PayU GPO
Rapyd’s acquisition of PayU Global Payment Organization marks a pivotal moment in the evolution of fintech as a service.
- Market Consolidation: This move highlights the trend toward consolidation in the fintech space, where larger players acquire complementary technologies to offer more integrated solutions.
- Future Growth: The integration of PayU’s capabilities is expected to accelerate innovation, particularly in cross-border payment solutions and digital transaction security.
XI. Final Thoughts: Embracing a Future Defined by Collaboration and Innovation
In closing, the fintech stories we’ve explored today underscore a singular truth: the future of finance is inherently collaborative and transformative. Each strategic move—from Finastra and I2C’s alliance to Rapyd’s acquisition—illustrates the power of partnerships in driving industry evolution. As fintech continues to advance at a breakneck pace, stakeholders must remain vigilant, adaptive, and forward-thinking to harness the full potential of these innovations.
The themes of inclusivity, security, and sustainable growth run deep through these narratives. By addressing the challenges of a two-speed ecosystem and investing in scalable, secure technologies, the fintech community is laying the groundwork for a more resilient and inclusive financial future. In this dynamic landscape, every news item is not merely a headline but a building block in the grand edifice of financial innovation.
Looking ahead, the insights derived from today’s stories will serve as a valuable guide for navigating the complexities of the fintech ecosystem. As the industry continues to evolve, our commitment to delivering thoughtful analysis and actionable insights remains unwavering. We invite our readers to join us in this journey as we chart a course toward a future where technology, collaboration, and innovation converge to create a truly transformative financial landscape.
Thank you for taking the time to engage with our comprehensive briefing. Stay tuned for more updates and in-depth analysis as we continue to monitor the developments that are shaping the future of fintech.
The post Fintech Pulse: Your Daily Industry Brief – March 17, 2025 – Finastra, I2C, Fintech Australia, Mastercard, Paymentology, Rapyd, PayU Global Payment Organization appeared first on News, Events, Advertising Options.
Fintech PR
Invitation to EQT’s Capital Markets Event in London on 22 May 2025 – Value creation through the lens of EQT’s portfolio companies

STOCKHOLM, March 17, 2025 /PRNewswire/ — On 22 May in London, EQT will host a Capital Markets Event focused on EQT’s ownership model and approach to value creation. The afternoon will feature insights from the EQT funds’ portfolio company CEOs, Chairpersons, Industrial Advisors, and EQT’s leadership team.
The event will explore EQT’s thematic investment focus, its repeatable value creation toolbox and its governance model through the lens of several of its portfolio companies – IFS, Reworld, Nord Anglia, IVC Evidensia, WS Audiology, and Credila Financial Services. In parallel, the portfolio company executives will be available for one-on-one meetings with institutional investors.
The day will be hosted by EQT’s newly appointed CEO, Per Franzén, Conni Jonsson, Founder and Chairperson, the Heads of the Private Capital and Infrastructure business lines, and EQT’s Shareholder Relations team.
Hosted in person at Sky Garden in the City of London, the event will begin with registration and lunch at 12:00 pm BST, followed by an afternoon of presentations and discussions.
Attendance is primarily intended for institutional shareholders, analysts, financial advisors, and media. Please register here to attend.
We look forward to welcoming you!
Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
PR – Invitation to EQT’s Capital Markets Event in London |
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https://news.cision.com/eqt/i/london-capital-markets-event,c3387673 |
London Capital Markets Event |
View original content:https://www.prnewswire.co.uk/news-releases/invitation-to-eqts-capital-markets-event-in-london-on-22-may-2025—value-creation-through-the-lens-of-eqts-portfolio-companies-302403565.html
Fintech PR
Repurchases of shares by EQT AB during week 11, 2025

STOCKHOLM, March 17, 2025 /PRNewswire/ — Between 12 March 2025 and 14 March 2025 EQT AB (LEI code 213800U7P9GOIRKCTB34) (“EQT”) has repurchased in total 345,000 own ordinary shares (ISIN: SE0012853455).
The repurchases form part of the repurchase program of a maximum of 4,931,018 own ordinary shares for a total maximum amount of SEK 2,500,000,000 that EQT announced on 11 March 2025. The repurchase program, which runs between 12 March 2025 and 16 May 2025, is being carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 and the Commission Delegated Regulation (EU) No 2016/1052.
EQT ordinary shares have been repurchased as follows:
Date: |
Aggregated volume |
Weighted average |
Aggregated |
12 March 2025 |
115,000 |
307.2624 |
35,335,176.00 |
13 March 2025 |
115,000 |
308.4788 |
35,475,062.00 |
14 March 2025 |
115,000 |
310.7410 |
35,735,215.00 |
Total accumulated |
345,000 |
308.8274 |
106,545,453.00 |
Total accumulated |
345,000 |
308.8274 |
106,545,453.00 |
All acquisitions have been carried out on Nasdaq Stockholm by Skandinaviska Enskilda Banken AB on behalf of EQT.
Following the above acquisitions and as of 14 March 2025, the number of shares in EQT, including EQT’s holding of own shares is set out in the table below.
Ordinary shares |
Class C shares1 |
Total |
|
Number of issued shares2 |
1,241,510,911 |
496,056 |
1,242,006,967 |
Number of shares owned by EQT AB3 |
60,269,191 |
– |
60,269,191 |
Number of outstanding shares |
1,181,241,720 |
496,056 |
1,181,737,776 |
1) Carry one tenth (1/10) of a vote 2) Total number of shares in EQT AB, i.e. including the number of shares owned by EQT AB 3) EQT AB shares owned by EQT AB are not entitled to dividends or carry votes at shareholders’ meetings
|
A full breakdown of the transactions is attached to this announcement.
Contact
Olof Svensson, Head of Shareholder Relations, +46 72 989 09 15
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/eqt/r/repurchases-of-shares-by-eqt-ab-during-week-11–2025,c4120031
The following files are available for download:
EQT Transactions 20250312 to 20250314 |
|
EQT AB Group |
View original content:https://www.prnewswire.co.uk/news-releases/repurchases-of-shares-by-eqt-ab-during-week-11-2025-302403410.html
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