CME Group’s third quarter performance received a positive market response, reflecting resilience despite a year-over-year revenue decrease. Management pointed to record open interest in key asset classes and robust growth in cryptocurrency and market data revenues as key factors. CEO Terrence Duffy highlighted, “Our crypto complex traded a record 340,000 contracts per day in the third quarter…up over 225% relative to a year ago,” while also noting strength in new product launches and international customer engagement. The quarter’s results were also supported by ongoing cost discipline and operational efficiency.
Is now the time to buy CME? Find out in our full research report (it’s free for active Edge members).
CME Group (CME) Q3 CY2025 Highlights:
- Revenue: $1.54 billion vs analyst estimates of $1.54 billion (3% year-on-year decline, in line)
- Adjusted EPS: $2.68 vs analyst estimates of $2.63 (2% beat)
- Adjusted EBITDA: $1.08 billion vs analyst estimates of $1.07 billion (70.1% margin, 1.1% beat)
- Operating Margin: 63.3%, down from 64.6% in the same quarter last year
- Market Capitalization: $96.04 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CME Group’s Q3 Earnings Call
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Daniel Fannon (Jefferies): asked about CME’s long-term retail strategy and the potential for M&A. CEO Terrence Duffy responded that while the retail business is a major growth focus, expansion is likely to remain organic, leveraging new partnerships like FanDuel.
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Patrick Moley (Piper Sandler): inquired if CME plans to list sports-related event contracts. Duffy clarified that any decision hinges on regulatory approval and FanDuel’s readiness, emphasizing a cautious approach to new types of prediction markets.
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Benjamin Budish (Barclays): questioned whether event-based contracts would impact CME’s cost structure or require more frequent product listings. Management indicated their operational scale supports frequent launches without significant incremental costs, relying on existing retail partners for distribution.
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Christopher Allen (Citi): asked about the use of proceeds from the OSTTRA sale and capital allocation plans. CFO Lynne Fitzpatrick noted recommendations are forthcoming to the board, with options including returning capital to shareholders.
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Michael Cyprys (Morgan Stanley): sought details on 24/7 trading and the role of tokenization. Duffy explained that crypto markets will be first to receive 24/7 access, with technology advancements from the Google partnership supporting this initiative and possible future asset classes.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will closely watch (1) the adoption and trading volumes of new products like event-based contracts and 24/7 crypto futures, (2) the impact of global market data pricing changes and international subscriber growth, and (3) progress on integration and client uptake of FX Spot+ and BrokerTec Chicago. Outcomes in these areas will signal whether CME’s product and retail strategies are translating into sustainable growth.
CME Group currently trades at $267.21, in line with $268.61 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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