Tradeweb Markets Inc.TW
Tradeweb Markets Inc. Segments Disclosure
Business Segment and Geographic Information
Operating segments are defined as components of an entity for which separate discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer.
The Company operates electronic marketplaces for the trading of products across the rates, credit, equities and money markets asset classes and provides related pre-trade and post-trade services. The access to the Company’s electronic marketplaces includes market data, continuous pricing data refreshes and the processing and reporting of trades thereon, which are highly interrelated services. Through its electronic marketplaces, the Company facilitates trading by clients across the institutional, wholesale, retail and corporates client sectors and builds comprehensive market data sets that it is able to separately sell to clients, primarily LSEG, as incremental market data revenue. The Company’s client sectors continue to become more interwoven and the Company benefits from these cross-marketplace network effects. For example, many of the Company’s asset manager, hedge fund, insurance, central bank/sovereign entity and regional dealer clients actively trade multiple products on its platform. In addition, many of the global commercial banks and dealers providing liquidity for institutional trades are also active traders on the Company’s wholesale offering and provide odd-lot inventory for the Company’s retail client sector. Because of the highly integrated nature of these marketplaces and services and the global financial markets in which the Company competes, the CODM reviews financial information on a global consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined it operates as one operating segment and one reportable segment.
The CODM uses Adjusted EBITDA and consolidated net income to set budgets, evaluate margins, review actual results and in deciding whether to reinvest profits into the business, pursue acquisitions, pay dividends and/or engage in other capital management transactions. Consolidated net income is the measure of segment profit most consistent with U.S. GAAP that is regularly reviewed by the CODM to allocate resources and assess performance.
Significant expense categories included in consolidated net income that are regularly provided to the CODM include employee compensation and benefits, technology and communications, general and administrative, professional fees and occupancy, each as presented on the accompanying consolidated statements of income.
Information regarding revenue from external clients by client sector, significant segment expenses and consolidated net income is as follows:
| Year Ended | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Revenues | ||||||||||||||||||||
| Institutional | $ | 1,275,547 | $ | 1,035,775 | $ | 797,038 | ||||||||||||||
| Wholesale | 400,753 | 385,673 | 312,586 | |||||||||||||||||
| Retail | 146,510 | 143,247 | 134,521 | |||||||||||||||||
| Corporates | 95,895 | 43,234 | — | |||||||||||||||||
| Market Data | 133,724 | 118,020 | 94,074 | |||||||||||||||||
| Total revenue | 2,052,429 | 1,725,949 | 1,338,219 | |||||||||||||||||
| Less: | ||||||||||||||||||||
| Employee compensation and benefits | 670,831 | 592,690 | 460,305 | |||||||||||||||||
| Technology and communications | 128,327 | 98,568 | 77,506 | |||||||||||||||||
| General and administrative | 88,402 | 56,317 | 51,495 | |||||||||||||||||
| Professional fees | 53,391 | 60,132 | 42,364 | |||||||||||||||||
| Occupancy | 25,951 | 20,215 | 15,930 | |||||||||||||||||
Other segment items (1) | 164,027 | 328,064 | 271,116 | |||||||||||||||||
| Net income | $ | 921,500 | $ | 569,963 | $ | 419,503 | ||||||||||||||
(1)Other segment items include depreciation and amortization, the tax receivable agreement liability adjustment (as applicable), interest income, interest expense, other (income) loss, net and provision for income taxes, each as presented on the accompanying consolidated statements of income.
The Company operates in the U.S. and internationally, primarily in the Europe, Asia and Australia regions. Variable revenues are generally attributed to geographic area based on the jurisdiction where the underlying transactions take place. The attribution of fixed revenues may vary by revenue and contract type. Given the global nature of the financial markets in which we operate and our clients’ worldwide businesses and contracts, the results by geographic region and allocation of revenues to individual countries are not necessarily meaningful in understanding the Company’s business.
The measure of segment assets is reported on the accompanying consolidated statements of financial condition as total consolidated assets. Total expenditures for additions to long-lived assets are as reported on the accompanying consolidated statements of cash flows. Long-lived assets are attributed to the geographic area based on the location of the particular subsidiary.
The following table provides revenue by geographic area:
| Year Ended | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Revenues | ||||||||||||||||||||
| U.S. | $ | 1,194,062 | $ | 1,060,697 | $ | 850,338 | ||||||||||||||
| International | 858,367 | 665,252 | 487,881 | |||||||||||||||||
| Total revenue | $ | 2,052,429 | $ | 1,725,949 | $ | 1,338,219 | ||||||||||||||
The following table provides information on the attribution of long-lived assets by geographic area:
| December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Long-lived assets | ||||||||||||||||||||
| U.S. | $ | 4,737,934 | $ | 4,777,770 | $ | 3,990,070 | ||||||||||||||
| International | 31,746 | 29,478 | 20,348 | |||||||||||||||||
| Total | $ | 4,769,680 | $ | 4,807,248 | $ | 4,010,418 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 21, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.