Cboe Global Markets, Inc. (CBOE) Stock Analysis and Metrics

Cboe Global Markets

CBOE: CBOE

$285.08 ▲ +3.06 (+1.09%)

At close: Jul 23, 2026 · 4:00 PM UTC

Financial Ratios

Market Cap30.13 Bn

P/E24.51

P/S6.29

Div. Yield0.01

Total Debt (Qtr)1.44 Bn

Revenue Growth (1y) (Qtr)6.51

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About

Cboe Global Markets, Inc. operates as a leading global derivatives and securities exchange network. The company provides cutting edge trading clearing and investment solutions across equities derivatives and foreign exchange markets in North America Europe and Asia Pacific. It runs the largest options exchange and the third largest equities exchange operator in the United States. Through subsidiaries such as Cboe Europe Equities Cboe Clear Europe BIDS Holdings Cboe Australia Cboe Clear U. S. and Cboe Canada it supports a broad marketplace for exchange traded products and aims to foster a trusted inclusive environment for sustainable financial futures. The firm emphasizes innovation reliability and broad access to enable participants to manage risk and pursue investment goals worldwide.

The company generates revenue primarily from transaction and clearing fees on its exchanges and alternative trading systems. Additional income comes from licensing of proprietary market data index licensing routing and access services and listing fees for exchange traded products. Revenue also includes market data fees from U. S. tape plans and fees from the Cboe Data Vantage offerings such as real time depth of book quotes analytics and cloud based data distribution. The firm also earns from listing services for ETPs and from access and capacity fees that provide connectivity and trading rights to its venues.

The company operates through the following segments: Options North American Equities Europe and Asia Pacific Futures and Global FX.

• Options: This segment covers index options equity options and exchange traded options on ETFs and ETNs that are multi listed and traded on Cboe Options C2 BZX EDGX and other U. S. national security exchanges. It also earns market data fees from consolidated tape plans licensing of proprietary options market data index licensing routing services and access and capacity services. The segment benefits from the exclusive U. S. rights to list options on the S&P 500 Index S&P 100 Index S&P 500 ESG Index and S&P Select Sector Indices which drive significant trading volume and fee revenue.

• North American Equities: This segment includes U. S. equities and ETP transaction services on BZX BYX EDGX EDGA equities trades on the BIDS Trading platform in the United States and the Cboe BIDS Canada platform and Canadian equities and other transaction services on Cboe Canada order books. It also provides corporate listing services on Cboe Canada ETP listings on BZX the Cboe Global Markets common stock listing and market data fees from consolidated tape plans licensing of proprietary equities market data routing services and access and capacity services. The segment further benefits from the BIDS block trading system that facilitates anonymous large scale executions in NMS stocks.

• Europe and Asia Pacific: This segment comprises pan European derivatives transaction services ETPs such as exchange traded funds exchange traded notes exchange traded commodities and international depository receipts hosted on MTFs operated by Cboe Europe Equities Cboe Europe and Cboe NL equities exchanges and CEDX. It also includes ETP listings business on regulated markets clearing activities of Cboe Clear Europe and equities services of Cboe Australia. Prior to the wind down of CEDX the segment contributed derivatives transaction services and market data revenues while Cboe Clear Europe provided clearing for equity and equity like instruments and for derivative contracts executed on CEDX. The segment further generates revenue from licensing of proprietary market data and access and capacity services for Cboe Europe Cboe NL and Cboe Australia. The platform supports lit and dark books periodic auction books closing cross books and two BIDS order books along with a large in scale trading negotiation facility and a volume weighted average price trajectory crossing facility.

• Futures: This segment consists of transaction services provided by CFE a fully electronic futures exchange that offers VIX futures and other futures products. It also includes licensing of proprietary market data and access and capacity services. As of January 1 2025 the segment incorporates the Digital operating activity comprising Cboe Digital Exchange Cboe Clear U. S. and associated market data and access revenues. The migration of cash settled Bitcoin and Ether futures from Cboe Digital Exchange to CFE was completed in June 2025 and no products remain listed for trading on Cboe Digital Exchange. The segment additionally benefits from the exclusive focus on volatility based products and the integration of digital assets into the futures marketplace.

• Global FX: This segment provides institutional FX trading services on the Cboe FX fully electronic platform and non deliverable forward FX transactions executed on Cboe SEF. It also offers transaction services for U. S. government securities on the Cboe Fixed Income fully electronic platform. Revenue is derived from licensing of proprietary market data and access and capacity services across these activities. The segment leverages the firm’s expertise in electronic trading and its global connectivity to serve institutional clients seeking efficient foreign exchange execution and hedging solutions.

Cboe holds a leading position as the world's largest options exchange operator and the third largest equities exchange provider in the United States. Its competitive strengths stem from a broad product suite that includes proprietary offerings such as SPX options VIX futures and VIX options a technologically advanced Cboe Titanium platform deep liquidity across multiple asset classes and a global footprint spanning North America Europe and Asia Pacific. The company faces competition from other U. S. options exchanges European multilateral trading facilities Asian exchanges and various alternative trading systems but differentiates itself through proprietary indices innovative fee models and strong relationships with liquidity providers and clearing houses. Continuous investment in technology and product development enables Cboe to maintain speed reliability and scalability while meeting evolving regulatory requirements.

The company serves a diverse clientele that includes financial institutions trading platforms institutional and individual investors professional traders banks futures commission merchants hedge funds asset managers proprietary trading firms commodity trading advisors and corporates. Its clearing members consist of EEA regulated banks and brokerage trading firms while its options and equities users comprise SEC registered broker dealers and their customers as well as Canadian and Australian registered investment dealers. The firm also supports retail investors through accessible trading platforms and provides data and analytics services to a wide range of market participants seeking informed decision making tools.

Investment Thesis

▲ Bull case

The SEC approval for extended trading hours on select single name options creates a new avenue for revenue growth that the market may not fully price in. By offering pre market and post market sessions for high liquidity names such as the Magnificent Seven stocks Cboe can capture trading activity that currently occurs off exchange or in fragmented venues. This initiative aligns with the broader trend toward near 24 hour five day trading in equities and should increase options contract volume especially from Asia Pacific participants. The incremental volume is expected to raise net revenue per contract and improve overall operating leverage.
Management raised its organic net revenue growth outlook for the full year to the low double digit to mid teens range reflecting stronger than expected demand for its data and analytics offerings. The Data Vantage segment has shown consistent year over year growth driven by increased consumption of real time market data feeds and proprietary analytics tools. This upward revision suggests that the market may be underestimating the recurring and high margin nature of the data business which benefits from sticky customer contracts and minimal incremental cost to serve. As a result the contribution of Data Vantage to overall profitability could expand faster than current consensus estimates.
The announced sale of Cboe Canada and Cboe Australia for three hundred million dollars removes lower growth equity exchange businesses from the portfolio and generates proceeds that can be redeployed into higher margin initiatives. Management has indicated plans to invest in emerging areas such as prediction markets tokenization and expanded clearing capabilities in the United States and Europe. By shedding non core assets the company can sharpen its focus on derivatives and data businesses that have demonstrated stronger volume and revenue trends. This reallocation of capital is likely to accelerate earnings growth and improve return on invested capital beyond what analysts currently model.
The introduction of daily expiring options on the Dow Jones Industrial Average index and the forthcoming launch of a prediction market framework based on the Mini S&P 500 Index address growing retail demand for short dated and flexible trading tools. These products are designed to attract increased participation from individual investors who seek defined risk and the ability to express directional views without overnight exposure. Higher retail participation typically drives higher contract frequency and can lift overall options market share for Cboe. The success of these initiatives could provide a durable source of volume growth that is not yet fully reflected in forward looking estimates.
The appointment of Tim Lipscomb chief technology officer at Cboe to the board of the Options Clearing Corporation signals a closer alignment between the exchange and its clearing house which could lead to enhanced operational efficiencies and new revenue sharing arrangements. Lipscomb’s extensive experience in global markets technology positions him to advocate for upgrades that reduce latency and improve customer experience across the Cboe ecosystem. Greater integration with OCC may also support the expansion of clearing services for new product classes such as tokenized assets and prediction markets. These synergies are likely to bolster the clearing revenue stream which remains a high margin component of the overall business.

The SEC approval for extended trading hours on select single name options creates a new avenue for revenue growth that the market may not fully price in. By offering pre market and post market sessions for high liquidity names such as the Magnificent Seven stocks Cboe can capture trading activity that currently occurs off exchange or in fragmented venues. This initiative aligns with the broader trend toward near 24 hour five day trading in equities and should increase options contract volume especially from Asia Pacific participants. The incremental volume is expected to raise net revenue per contract and improve overall operating leverage.
Management raised its organic net revenue growth outlook for the full year to the low double digit to mid teens range reflecting stronger than expected demand for its data and analytics offerings. The Data Vantage segment has shown consistent year over year growth driven by increased consumption of real time market data feeds and proprietary analytics tools. This upward revision suggests that the market may be underestimating the recurring and high margin nature of the data business which benefits from sticky customer contracts and minimal incremental cost to serve. As a result the contribution of Data Vantage to overall profitability could expand faster than current consensus estimates.
The announced sale of Cboe Canada and Cboe Australia for three hundred million dollars removes lower growth equity exchange businesses from the portfolio and generates proceeds that can be redeployed into higher margin initiatives. Management has indicated plans to invest in emerging areas such as prediction markets tokenization and expanded clearing capabilities in the United States and Europe. By shedding non core assets the company can sharpen its focus on derivatives and data businesses that have demonstrated stronger volume and revenue trends. This reallocation of capital is likely to accelerate earnings growth and improve return on invested capital beyond what analysts currently model.
The introduction of daily expiring options on the Dow Jones Industrial Average index and the forthcoming launch of a prediction market framework based on the Mini S&P 500 Index address growing retail demand for short dated and flexible trading tools. These products are designed to attract increased participation from individual investors who seek defined risk and the ability to express directional views without overnight exposure. Higher retail participation typically drives higher contract frequency and can lift overall options market share for Cboe. The success of these initiatives could provide a durable source of volume growth that is not yet fully reflected in forward looking estimates.
The appointment of Tim Lipscomb chief technology officer at Cboe to the board of the Options Clearing Corporation signals a closer alignment between the exchange and its clearing house which could lead to enhanced operational efficiencies and new revenue sharing arrangements. Lipscomb’s extensive experience in global markets technology positions him to advocate for upgrades that reduce latency and improve customer experience across the Cboe ecosystem. Greater integration with OCC may also support the expansion of clearing services for new product classes such as tokenized assets and prediction markets. These synergies are likely to bolster the clearing revenue stream which remains a high margin component of the overall business.

▼ Bear case

While the SEC has approved extended trading hours for a limited set of single name options the broader market structure shift toward near 24 hour five day trading could attract scrutiny from regulators concerned about market fairness and systemic risk. Any delay or modification to the rollout of additional trading sessions would limit the expected volume upside and could result in increased compliance costs. Furthermore the reliance on specific volume thresholds for eligibility may restrict the number of symbols that qualify reducing the addressable market for the new sessions. This regulatory uncertainty represents a risk that the market may be overlooking.
The upward revision to Data Vantage organic net revenue guidance assumes continued strong demand for real time market data and analytics but the business may be dependent on a limited number of large financial institutions that could negotiate lower fees or shift to alternative providers. Intensifying competition from other data vendors and the rise of open source market data platforms could exert downward pressure on pricing and limit upside. If customer concentration leads to churn or renegotiation the segment’s growth trajectory could slow more quickly than management anticipates. This concentration risk is not fully reflected in the current bullish outlook.
The three hundred million dollar sale of Cboe Canada and Cboe Australia provides cash that management intends to allocate to higher growth initiatives but there is no guarantee that these investments will generate the expected returns. Historically reallocation of divestiture proceeds into new ventures such as prediction markets tokenization or clearing expansions has faced execution challenges including cultural integration technology development and slower than anticipated market adoption. If the reinvestment fails to deliver accretive earnings the net benefit of the divestiture could be diminished and the company might end up with a lower growth profile than projected.
The launch of daily expiring DJX options and the upcoming prediction market framework may cannibalize existing volume from standard options contracts rather than generate truly incremental trading activity. Retail adoption of novel products such as prediction markets has historically been uneven and may require substantial education and marketing efforts to achieve meaningful scale. If investors continue to prefer established contracts the new offerings could add complexity without materially boosting revenue and could increase operational costs without commensurate gains. This cannibalization risk could offset some of the anticipated volume upside from product innovation.
Although Cboe benefits from its relationship with the Options Clearing Corporation the clearing industry is becoming more competitive with new entrants offering lower cost clearing solutions and innovative technology platforms. Increased competition could pressure the fees that Cboe can charge for clearing services especially as market participants seek to reduce transaction costs. Any decline in clearing revenue per trade would directly affect a high margin business line and could weigh on overall profitability. The market may be underestimating the intensity of this competitive landscape.

While the SEC has approved extended trading hours for a limited set of single name options the broader market structure shift toward near 24 hour five day trading could attract scrutiny from regulators concerned about market fairness and systemic risk. Any delay or modification to the rollout of additional trading sessions would limit the expected volume upside and could result in increased compliance costs. Furthermore the reliance on specific volume thresholds for eligibility may restrict the number of symbols that qualify reducing the addressable market for the new sessions. This regulatory uncertainty represents a risk that the market may be overlooking.
The upward revision to Data Vantage organic net revenue guidance assumes continued strong demand for real time market data and analytics but the business may be dependent on a limited number of large financial institutions that could negotiate lower fees or shift to alternative providers. Intensifying competition from other data vendors and the rise of open source market data platforms could exert downward pressure on pricing and limit upside. If customer concentration leads to churn or renegotiation the segment’s growth trajectory could slow more quickly than management anticipates. This concentration risk is not fully reflected in the current bullish outlook.
The three hundred million dollar sale of Cboe Canada and Cboe Australia provides cash that management intends to allocate to higher growth initiatives but there is no guarantee that these investments will generate the expected returns. Historically reallocation of divestiture proceeds into new ventures such as prediction markets tokenization or clearing expansions has faced execution challenges including cultural integration technology development and slower than anticipated market adoption. If the reinvestment fails to deliver accretive earnings the net benefit of the divestiture could be diminished and the company might end up with a lower growth profile than projected.
The launch of daily expiring DJX options and the upcoming prediction market framework may cannibalize existing volume from standard options contracts rather than generate truly incremental trading activity. Retail adoption of novel products such as prediction markets has historically been uneven and may require substantial education and marketing efforts to achieve meaningful scale. If investors continue to prefer established contracts the new offerings could add complexity without materially boosting revenue and could increase operational costs without commensurate gains. This cannibalization risk could offset some of the anticipated volume upside from product innovation.
Although Cboe benefits from its relationship with the Options Clearing Corporation the clearing industry is becoming more competitive with new entrants offering lower cost clearing solutions and innovative technology platforms. Increased competition could pressure the fees that Cboe can charge for clearing services especially as market participants seek to reduce transaction costs. Any decline in clearing revenue per trade would directly affect a high margin business line and could weigh on overall profitability. The market may be underestimating the intensity of this competitive landscape.

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

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1	BTOG	BIT ORIGIN Ltd	1,110.84 Bn	-	-	-
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3	CME	Cme Group Inc.	92.16 Bn	21.56	13.61	3.42 Bn
4	MCO	Moodys Corp /De/	84.72 Bn	30.28	10.38	7.52 Bn
5	ICE	Intercontinental Exchange, Inc.	84.12 Bn	21.08	9.26	20.37 Bn
6	NDAQ	Nasdaq, Inc.	53.10 Bn	26.99	6.07	8.76 Bn
7	COIN	Coinbase Global, Inc.	44.25 Bn	55.27	6.75	7.76 Bn
8	MSCI	MSCI Inc.	41.65 Bn	30.67	12.49	6.38 Bn

Research Tools

Developers

About

Investment Thesis

Statement of Income Location, Balance Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Statement of Income Location, Balance Breakdown of Revenue (2025)

Timing of Transfer of Good or Service Breakdown of Revenue (2025)

Peer Comparison

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