MARKETAXESS HOLDINGS INC Earnings Per Share Disclosure
12. Earnings Per Share
The following table sets forth basic and diluted weighted average shares outstanding used to compute earnings per share:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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(In thousands, except per share amounts) |
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Basic weighted average shares outstanding |
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37,056 |
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37,600 |
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37,546 |
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Dilutive effect of stock options and |
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81 |
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72 |
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108 |
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Diluted weighted average shares outstanding |
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37,137 |
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37,672 |
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37,654 |
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Basic earnings per share |
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$ |
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6.66 |
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$ |
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7.29 |
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$ |
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6.87 |
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Diluted earnings per share |
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6.64 |
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7.28 |
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6.85 |
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Stock options and Full Value Awards totaling 183,624 shares, 329,810 shares and 306,678 shares for the years ended December 31, 2025, 2024 and 2023, respectively, were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. The computation of diluted shares can vary among periods due, in part, to the change in the average price of the Company’s common stock.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 25, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.