Parent Company Information

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Parent Company Information

19. Parent Company Information

The following tables present Parent Company-only financial information that should be read in conjunction with the consolidated financial statements of the Company.

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Financial Condition
	As of
	December 31, 2024			December 31, 2023
	(In thousands)
ASSETS
Cash and cash equivalents	$	94,332		$	65,951
Investments, at fair value		60,735			30,225
Accounts receivable		1,397			1,923
Receivable from subsidiaries		22,606			18,010
Intangible assets, net of accumulated amortization		18			21
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization		15,617			17,644
Operating lease right-of-use assets		51,416			55,113
Investments in subsidiaries		1,179,524			1,140,798
Prepaid expenses and other assets		40,903			45,140
Income and other tax receivable		8,253			7,674
Total assets	$	1,474,801		$	1,382,499
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accrued employee compensation		9,707		$	8,589
Income and other tax liabilities		722			3,000
Accounts payable, accrued expenses and other liabilities		10,646			8,212
Operating lease liabilities		65,066			69,735
Total liabilities		86,141			89,536
Stockholders’ equity
Preferred stock		—			—
Series A Preferred Stock		—			—
Common stock voting		123			123
Common stock non-voting		—			—
Additional paid-in capital		350,701			333,292
Treasury stock		(333,369	)		(260,298	)
Retained earnings		1,405,904			1,244,216
Accumulated other comprehensive loss		(34,699	)		(24,370	)
Total stockholders’ equity		1,388,660			1,292,963
Total liabilities and stockholders’ equity	$	1,474,801		$	1,382,499

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Operations
		Year Ended December 31,
		2024				2023				2022
		(In thousands)
Revenues	$		246,600		$		270,700		$		257,200
Expenses
Employee compensation and benefits			12,091				13,938				17,655
Depreciation and amortization			2,186				2,153				2,136
Professional and consulting fees			6,149				5,828				5,528
General and administrative			1,660				2,301				3,081
Total expenses			22,086				24,220				28,400
Operating income			224,514				246,480				228,800
Other income (expense)
Interest income			4,615				3,557				272
Interest expense			(167	)			(155	)			(271	)
Equity in earnings of unconsolidated affiliate			1,395				735				1,126
Other, net			(5,088	)			(369	)			(2,633	)
Total other income (expense)			755				3,768				(1,506	)
Income before income taxes and equity in undistributed earnings of subsidiaries			225,269				250,248				227,294
Benefit from income taxes			(6,550	)			(5,586	)			(7,710	)
Income before equity in undistributed income of subsidiaries			231,819				255,834				235,004
Equity in undistributed income of subsidiaries			42,362				2,221				15,220
Net income			274,181				258,055				250,224
Other comprehensive income (loss), net			(10,329	)			13,327				(24,367	)
Comprehensive income	$		263,852		$		271,382		$		225,857

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
	Year Ended December 31,
	2024			2023			2022
	(In thousands)
Cash flows from operating activities
Net income	$	274,181		$	258,055		$	250,224
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,186			2,153			2,136
Amortization of operating lease right-of-use assets		3,697			3,361			3,347
Stock-based compensation expense		7,130			9,725			12,554
Deferred taxes		397			101			(5,076	)
Equity in undistributed income of subsidiaries		(42,362	)		(2,221	)		(15,220	)
Other		4,304			(4,675	)		441
Changes in operating assets and liabilities:
(Increase)/decrease in accounts receivable		526			(1,154	)		(769	)
Decrease in receivable from subsidiaries		12,694			5,474			7,931
Decrease/(increase) in prepaid expenses and other assets		304			1,296			(1,175	)
(Increase)/decrease in mutual funds held in rabbi trust		(94	)		(189	)		984
(Decrease)/increase in accrued employee compensation		1,118			(1,104	)		(1,372	)
(Increase)/decrease in income and other tax receivables		(579	)		3,800			(9,711	)
Increase/(decrease) increase in income and other tax liabilities		(2,278	)		2,287			62
(Decrease)/increase in accounts payable, accrued expenses and other liabilities		4,809			(861	)		443
(Decrease) in operating lease liabilities		(4,669	)		(3,624	)		(3,689	)
Net cash provided by operating activities		261,364			272,424			241,110
Cash flows from investing activities
Acquisition of business		—			(81,161	)		—
Acquisition of equity method investment		—			—			(34,400	)
Investments in subsidiaries		(30	)		(10,058	)		(8,326	)
Available-for-sale investments
Proceeds from maturities and sales		12,440			4,454			—
Purchases		(42,810	)		(28,818	)		—
Purchases of furniture, equipment and leasehold improvements		(156	)		(239	)		(96	)
Net cash (used in) investing activities		(30,556	)		(115,822	)		(42,822	)
Cash flows from financing activities
Cash dividend on common stock		(112,697	)		(109,658	)		(105,942	)
Exercise of stock options		2,988			940			672
Withholding tax payments on Full Value Awards vesting and stock option exercises		(16,194	)		(25,839	)		(23,404	)
Repurchases of common stock		(75,474	)		—			(87,540	)
Proceeds from short-term borrowings		100,000			100,000			100,000
Repayments of short-term borrowings		(100,000	)		(100,000	)		(100,000	)
Net cash (used in) financing activities		(201,377	)		(134,557	)		(216,214	)
Effect of exchange rate changes on cash and cash equivalents		—			(3	)		15
Cash and cash equivalents including restricted cash
Net increase (decrease) for the period		29,431			22,042			(17,911	)
Beginning of period		65,951			43,909			61,820
End of period	$	95,382		$	65,951		$	43,909

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows (Continued)
	Year Ended December 31,
	2024		2023		2022
	(In thousands)
Supplemental cash flow information:
Cash paid for income taxes	$	53,999	$	55,784	$	65,764
Cash paid for interest		167		35		271
Non-cash investing and financing activity:
Exercise of stock options - cashless	$	1,735	$	—	$	3,845
Right-of-use assets obtained in exchange for operating lease liabilities		—		1,072		—
Treasury stock used for acquisition of business		—		43,841		—