Executive Summary
Intercontinental Exchange (ICE) posted a solid QQ2 2025 performance, underscoring the strength of its diversified, multiāasset platform. Revenue reached $3.262 billion, up 12.6% year over year and 1.02% quarter over quarter, driven by sustained activity across Exchanges, Fixed Income/Data Services, and Mortgage Technology. Gross profit of $2.507 billion produced a robust gross margin of 76.9%, while operating income of $2.016 billion generated a high operating margin of 61.8%. Net income was $851 million and diluted earnings per share (EPS) stood at $1.48ā$1.49, reflecting a meaningful but non-operational headwind from other non-operating items that weighed on pretax profitability.
Cash generation remained a standout, with operating cash flow of $1.506 billion and free cash flow of $1.446 billion. The company bolstered its balance sheet with a substantial cash position (cash and cash equivalents of $1.003 billion and short-term investments of $1.633 billion, plus total cash and ST investments of $2.636 billion) and a net debt of approximately $18.66 billion. ICEās aggregate liquidity supports continued strategic investments, capital returns, and potential boltāons within its three segments: Exchanges, Fixed Income/Data Services, and Mortgage Technology.
Management commentary, as reflected in the results, emphasizes ICEās ecosystem resilience, crossāsegment monetization opportunities, and ongoing investment in data and analytics capabilities. While explicit forward guidance was not included in the provided materials, the quarter reinforces ICEās ability to translate market data demand, multiāasset turnover, and mortgage workflow solutions into durable profitability. Investors should monitor (i) sustainability of exchange and dataāservices volumes, (ii) mortgage origination cycles and related technology adoption, and (iii) regulatory and macro factors that could influence competitive dynamics and growth trajectories.
Key Performance Indicators
Key Insights
Revenue: $3.262 billion, up 12.6% YoY and 1.02% QoQ. Gross profit: $2.507 billion with a gross margin of 76.85%. EBITDA: $1.728 billion and EBITDA margin of 52.97%. Operating income: $2.016 billion with an operating margin of 61.80%. Net income: $0.851 billion with a net margin of 26.09%. Diluted EPS: $1.48; basic EPS: $1.49. Cash flow: operating cash flow $1.506 billion; free cash flow $1.446 billion; capex $60 million; Free Cash Flow per Share $2.52; Operating Cash Flow per Share $2.63. Balanc...
Financial Highlights
Revenue: $3.262 billion, up 12.6% YoY and 1.02% QoQ. Gross profit: $2.507 billion with a gross margin of 76.85%. EBITDA: $1.728 billion and EBITDA margin of 52.97%. Operating income: $2.016 billion with an operating margin of 61.80%. Net income: $0.851 billion with a net margin of 26.09%. Diluted EPS: $1.48; basic EPS: $1.49. Cash flow: operating cash flow $1.506 billion; free cash flow $1.446 billion; capex $60 million; Free Cash Flow per Share $2.52; Operating Cash Flow per Share $2.63. Balance sheet: total assets $144.175 billion; cash and cash equivalents $1.003 billion; short-term investments $1.633 billion; total current assets $93.969 billion; total current liabilities $93.443 billion; total debt $19.666 billion; net debt $18.663 billion; total stockholdersā equity $28.444 billion. Liquidity ratios: current ratio 1.006; quick ratio 1.006; cash ratio 0.0107. Valuation: P/E 30.88x; P/B 3.70x; EV/EBITDA 71.64x; Price/Sales 32.23x; dividend yield ~0.263%. Growth indicators: revenue YoY 12.6%, gross profit YoY ~53.8%, operating income YoY ~89.1%, net income YoY ~34.7%, EPS YoY ~35.5%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.26B |
12.60% |
1.02% |
| Gross Profit |
2.51B |
53.80% |
40.92% |
| Operating Income |
2.02B |
89.12% |
65.11% |
| Net Income |
851.00M |
34.65% |
6.78% |
| EPS |
1.49 |
35.45% |
7.19% |
Key Financial Ratios
operatingProfitMargin
61.8%
operatingCashFlowPerShare
$2.63
freeCashFlowPerShare
$2.52
dividendPayoutRatio
32.5%
Management Commentary
Transcript data not provided in the input. The narrative below reflects management commentary inferred from the reported results rather than verbatim earnings call quotes.
- Strategy and growth mix: ICEās diversified platform continues to generate durable revenue across Exchanges, Fixed Income/Data Services, and Mortgage Technology, with cross-sell opportunities and data monetization potential highlighted by the magnitude of the gross margin and the scale of the data assets. The result is a resilient top line and high operating leverage, contributing to a compelling margin profile.
- Operational execution: The substantial operating margin (61.8%) and EBITDA margin (~53%) indicate disciplined cost management and scale effects, even as non-operating items pressured pretax results by contributing to a negative total other income/expenses net of $884 million.
- Cash generation and balance sheet: The strong OCF of $1.506 billion and FCF of $1.446 billion, coupled with a large cash balance (end period cash of $87.674 billion) and net debt of $18.663 billion, underscore ICEās financial flexibility to fund ongoing investments, potential accretive acquisitions, and shareholder returns while maintaining a conservative leverage posture.
Forward Guidance
No explicit forward guidance was included in the provided data. Given ICEās diversified revenue base, catalysts include further monetization of data services, growth in fixed income analytics, and expansion of mortgage technology platforms. Investors should monitor: (i) volumes and pricing across Exchanges and data services, (ii) mortgage origination activity and adoption of ICEās mortgage technology stack, (iii) regulatory developments affecting market infrastructure and data monetization, and (iv) debt management and capital allocation policies (buybacks vs. acquisitions vs. capex). Based on current trajectory, the outlook supports continued earnings visibility and robust free cash flow generation, albeit with sensitivity to macro cycles in mortgage markets and interest rates.