Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 1,442,800,000.00 | 1,173,500,000.00 | ||
| Total Revenue | ||||
| Cost of revenue | 711,200,000.00 | 586,200,000.00 | ||
| Total COGS | ||||
| Gross Profit | ||||
| Income tax expense (benefit) | 141,600,000.00 | 99,500,000.00 | ||
| Interest expense | 13,200,000.00 | 12,900,000.00 | ||
| Operating expenses | 255,600,000.00 | 248,200,000.00 | ||
| Other income statement items (derived) | -21,100,000.00 | -10,100,000.00 | ||
| Other nonoperating income (expense), net | -900,000.00 | 1,800,000.00 | ||
| Realized and unrealized gains (losses) on investments, net | -9,900,000.00 | -100,000.00 | ||
| Total Expenses | ||||
| Net Income | ||||
| Net income (loss) available to common stockholders | ||||
| Basic earnings per share |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 570,600,000.00 | 391,400,000.00 |
| Assets held for sale | 261,000,000.00 | 0.00 |
| Cash and cash equivalents | 2,276,200,000.00 | 2,216,500,000.00 |
| Goodwill and intangibles | 4,231,600,000.00 | 4,447,700,000.00 |
| Operating lease right-of-use assets | 101,600,000.00 | 111,000,000.00 |
| Other assets (derived) | 12,700,000.00 | 66,200,000.00 |
| Other current assets | 85,300,000.00 | 91,300,000.00 |
| Other noncurrent assets | 172,000,000.00 | 159,700,000.00 |
| Property, plant and equipment | 136,700,000.00 | 133,100,000.00 |
| Restricted cash and equivalents | 2,647,100,000.00 | 1,652,300,000.00 |
| Short-term investments | 114,500,000.00 | 36,100,000.00 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable | 16,300,000.00 | 16,100,000.00 |
| Accrued compensation | 66,300,000.00 | 109,700,000.00 |
| Debt | 1,443,800,000.00 | 1,442,900,000.00 |
| Deferred revenue | 13,000,000.00 | 6,900,000.00 |
| Deferred tax liabilities | 224,700,000.00 | 185,300,000.00 |
| Liabilities held for sale | 31,700,000.00 | 0.00 |
| Operating lease liabilities, current | 25,000,000.00 | 26,900,000.00 |
| Operating lease liabilities, noncurrent | 111,500,000.00 | 120,900,000.00 |
| Other accrued liabilities | 64,600,000.00 | 56,600,000.00 |
| Other liabilities (derived) | 2,940,100,000.00 | 1,844,600,000.00 |
| Other noncurrent liabilities | 43,200,000.00 | 39,800,000.00 |
| Taxes payable | 3,300,000.00 | 317,300,000.00 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 5,625,800,000.00 | 5,138,300,000.00 |
| Total Equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 738,800,000.00 | 485,700,000.00 |
| Depreciation and amortization | 57,600,000.00 | 60,200,000.00 |
| Stock-based compensation | 28,500,000.00 | 25,700,000.00 |
| Changes in operating assets and liabilities, net | 631,900,000.00 | 675,000,000.00 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -124,600,000.00 | -136,600,000.00 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Financing activities, net | -251,800,000.00 | -218,300,000.00 |
| Net cash from financing activities | - | - |
| Net change in cash | ||
| Cash at beginning of period | 1,765,800,000.00 | |
| Cash at end of period | 2,956,900,000.00 | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Balance at beginning of period | 5,138,300,000.00 | 4,279,600,000.00 |
| Net income | 738,800,000.00 | 485,700,000.00 |
| Other equity movements | -251,300,000.00 | -100,200,000.00 |
| Balance at end of period | 5,625,800,000.00 | 4,665,100,000.00 |
Cboe Global Markets, Inc. is a public reporting company classified under Security & Commodity Brokers, Dealers, Exchanges & Services. The accompanying condensed financial statements have been prepared from the connected books, are unaudited, and the results for the interim period are not necessarily indicative of the results that may be expected for a full year. The condensed financial statements are presented as of and for the period ended June 30, 2026. In the opinion of management, the interim statements include all adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented.
Revenue for the period was $1,442.8 million, compared with $1,173.5 million in the prior period, an increase of 22.9%. Cost of revenue was $711.2 million, compared with $586.2 million in the prior period, and operating expenses were $255.6 million, compared with $248.2 million in the prior period. Net income for the period was $353.1 million. Basic earnings per share was $3.36, based on weighted-average basic shares outstanding of 104,700,000.
Debt outstanding at period end was $1,443.8 million, substantially unchanged from $1,442.0 million at the end of the prior period. Total liabilities were $4,983.5 million at period end. The Company leases certain assets under operating leases, with operating lease right-of-use assets of $101.6 million at period end compared with $122.2 million at the end of the prior period. Current operating lease liabilities were $25.0 million and noncurrent operating lease liabilities were $111.5 million at period end, and noncurrent operating lease liabilities decreased 16.7% from $133.8 million at the end of the prior period, while current operating lease liabilities were unchanged. Interest expense was $13.2 million for the period, compared with $12.9 million in the prior period.
Total stockholders' equity was $5,625.8 million as of June 30, 2026, an increase of 20.6% from $4,665.1 million at the end of the prior period. The increase in stockholders' equity primarily reflects net income of $353.1 million for the period and [COMPLETE: other components of the change in stockholders' equity, including dividends, share repurchases, and stock-based compensation activity, if any].
| Current | Prior | |
|---|---|---|
| Debt | 1,443,800,000.00 | 1,442,900,000.00 |
| Operating lease liabilities, current | 25,000,000.00 | 26,900,000.00 |
| Operating lease liabilities, noncurrent | 111,500,000.00 | 120,900,000.00 |
| Total debt | 1,580,300,000.00 | 1,590,700,000.00 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 136,700,000.00 | 133,100,000.00 |
| Total property and equipment | 136,700,000.00 | 133,100,000.00 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 5,625,800,000.00 | 5,138,300,000.00 |
| Total stockholders' equity | 5,625,800,000.00 | 5,138,300,000.00 |
Revenue for the period increased to $1,442.8 million from $1,173.5 million in the prior-year period, an increase of 22.9%, driven primarily by growth in transaction and services activity across our businesses, which is also reflected in the increase in accounts receivable to $570.6 million from $444.3 million, or 28.4%. Cost of revenue increased 21.3% to $711.2 million from $586.2 million, generally consistent with the growth in revenue, while operating expenses increased 3.0% to $255.6 million from $248.2 million. Interest expense was $13.2 million compared to $12.9 million in the prior-year period, an increase of 2.3%.
Realized and unrealized gains on investments, net contributed income of $9.9 million compared to $0.1 million in the prior-year period, other nonoperating income was $0.9 million compared to expense of $1.8 million in the prior-year period, and other income statement items contributed income of $21.1 million compared to $10.1 million in the prior-year period. Income tax expense was $141.6 million compared to $99.5 million in the prior-year period, an increase of 42.3%. Net income for the period was $353.1 million, or $3.36 per basic share based on weighted-average basic shares outstanding of 104.7 million.
Cash and cash equivalents increased 81.2% to $2,276.2 million from $1,256.3 million, and restricted cash and equivalents increased 55.7% to $2,647.1 million from $1,700.6 million. Short-term investments decreased 44.8% to $114.5 million from $207.6 million, while debt remained substantially unchanged at $1,443.8 million compared to $1,442.0 million. Stockholders' equity increased 20.6% to $5,625.8 million from $4,665.1 million. During the period, we classified $261.0 million of assets and $31.7 million of liabilities as held for sale. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Management believes that our existing cash and cash equivalents, together with our other sources of liquidity, will be sufficient to meet our operating requirements and other capital needs for at least the next twelve months.
Our primary exposure to market risk is interest rate risk on our cash, cash equivalents, and short-term investments. As of June 30, 2026, we held cash and cash equivalents of $2,276.2 million, restricted cash and equivalents of $2,647.1 million, and short-term investments of $114.5 million, compared with $1,256.3 million, $1,700.6 million, and $207.6 million, respectively, in the prior period. Changes in prevailing interest rates affect the amount of interest income we earn on these balances, and a decline in market interest rates would reduce that income. For the period, we recognized net realized and unrealized gains on investments of $9.9 million, compared with net gains of $0.1 million in the prior period. [COMPLETE: sensitivity analysis quantifying the estimated impact of a hypothetical change in interest rates on interest income and investment values.]
We are also exposed to interest rate risk in connection with our outstanding borrowings. As of June 30, 2026, we had debt of $1,443.8 million, compared with $1,442.0 million in the prior period, and we incurred interest expense of $13.2 million for the period, an increase of 2.3% from $12.9 million in the prior period. [COMPLETE: description of the fixed- or floating-rate composition of outstanding debt and any related sensitivity to changes in benchmark interest rates.]
We do not have material foreign currency or commodity price exposure. Although we operate businesses outside the United States, including Cboe Europe, which operates lit and dark books, a periodic auctions book, a closing cross book, and two BIDS order books, and Cboe NL, based in Amsterdam, which operates similar business functionality and provides for trading only in European Economic Area symbols, we do not believe fluctuations in foreign currency exchange rates have a material effect on our financial condition or results of operations. There have been no material changes to our market risk exposures during the period covered by this report.
Management, with the participation of the Company's Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report and concluded that the disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2026, for Cboe Global Markets, Inc. These conclusions are supported by the certifications of the Principal Executive Officer and Principal Financial Officer, which attest that the report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act and that the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company. Consistent with prior filings, the certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350 are filed or furnished as Exhibits 31.1, 31.2, 32.1, and 32.2 to this report.
Management also assessed whether there were any changes in the Company's internal control over financial reporting during the quarter ended June 30, 2026, and determined that no changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
This draft presents management's conclusion language for review; the conclusions stated above must be reviewed and formally adopted by management before this report is filed. Any modifications resulting from that review should be incorporated into the final filing, and the accompanying officer certifications should be executed and dated as of the filing date.
Cboe Global Markets, Inc. is, from time to time, involved in various legal proceedings arising in the ordinary course of its business. The Company evaluates the status of such matters on an ongoing basis, including developments in pending proceedings and the potential for loss.
Management does not currently believe that any pending legal proceeding is material to the Company's financial statements. While the outcome of litigation and other legal matters is inherently uncertain, the Company does not expect the ultimate resolution of currently pending matters, individually or in the aggregate, to have a material adverse effect on its business, financial condition, results of operations, or cash flows.
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K, other than as described below. On May 1, 2026, we announced additional actions related to our strategic realignment by optimizing resource allocation across the organization, which we expect to be substantially completed by the end of 2026. These actions follow a comprehensive strategic review of our global business operations that occurred in the fourth quarter of 2025 and are part of a broader effort to sharpen strategic focus and allocate resources more effectively. There can be no assurance that these initiatives will achieve their intended benefits on the anticipated timeline, and the realignment may result in unanticipated costs, disruption to our operations, or difficulty retaining key personnel.
Our pending and completed divestitures also present risks. On April 22, 2026, we announced a definitive agreement to sell our Cboe Australia and Cboe Canada businesses to TMX, a leading market operator, for approximately $300 million. The transaction is subject to customary closing conditions, including applicable regulatory approvals; the sales are expected to close separately, each after required approvals have been obtained, with the sale of Cboe Australia expected to close in the third quarter of 2026. If required approvals are delayed or not obtained, or if closing conditions are not satisfied, the transactions may not be completed on the expected timeline or at all. Upon closing, we will provide transition services support for a limited time, which may divert management attention and resources. As of June 30, 2026, we carried $261.0 million of assets held for sale and $31.7 million of liabilities held for sale, and adverse developments in the pending transactions could affect the realizable value of these balances. In addition, Cboe NL announced plans to wind down its CEDX exchange service, which was decommissioned effective February 23, 2026, and any residual obligations from this wind-down could result in additional costs.
We are also subject to risks related to new product initiatives and leadership transitions. On June 23, 2026, we announced the launch of the first products in our new prediction markets suite, Cboe Predicts, which includes binary option contracts based on the Mini-S&P 500 Index (XSP), listed under the symbols XSPBW and XSPBX. New product offerings may not achieve anticipated levels of market acceptance and may expose us to additional regulatory, operational, and reputational risks. On January 26, 2026, we announced the appointments of Scott Johnston as Executive Vice President, Chief Operating Officer, and Heidi Fischer as Executive Vice President, Global Head of Equities and Spot Markets, with Mr. Johnston taking over Chief Operating Officer duties from Chris Isaacson, who retired from his role effective March 6, 2026. Effective June 1, 2026, Ms. Fischer assumed oversight of our global cash equities and spot markets, and Mr. Isaacson will continue to serve as an advisor to the Company through the end of 2026. Any difficulties in executing these transitions could disrupt our operations or the execution of our strategy.
Our financial results remain subject to market and interest rate risk. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. As of June 30, 2026, we held $2,276.2 million of cash and cash equivalents, $2,647.1 million of restricted cash and equivalents, and $114.5 million of short-term investments, and changes in interest rates could adversely affect the income we earn on these balances. We recognized net losses of $9.9 million on realized and unrealized investments during the period, compared to net losses of $0.1 million in the prior period, and continued volatility in the value of our investments could adversely affect our results of operations. While we generated revenue of $1,442.8 million and net income of $353.1 million for the period ended June 30, 2026, the risks described above, individually or in combination, could materially and adversely affect our business, financial condition, and results of operations in future periods.
During the quarter ended June 30, 2026, the following information is provided pursuant to Item 408(a) of Regulation S-K regarding the adoption or termination of Rule 10b5-1 trading arrangements by directors and officers of Cboe Global Markets, Inc.: [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]