EPS of $1.42 increased by 24.4% from previous year
Gross margin of 75.4%
Net income of 816.00M
"Transcript not provided in the data set." - ICE Management
Intercontinental Exchange Inc (0JC3.L) QQ3 2025 Results — Resilience in Recurring Revenue, Margin Discipline and Growth Drivers in Data Services and Mortgage Technology
Executive Summary
Intercontinental Exchange Inc. (0JC3.L) delivered a solid QQ3 2025 with a revenue base of $3.007 billion and a high gross margin of approximately 75.36%, underscoring the durability of ICE’s recurring revenue streams from Exchanges, Fixed Income and Data Services, and Mortgage Technology. Despite a modest year-over-year revenue decline of about 0.9%, the quarter produced meaningful profitability dynamics, with operating income of $1.174 billion and net income of $0.816 billion, translating to an EPS of $1.43. The company continues to generate substantial EBITDA ($1.561 billion) and strong operating margins (~39%), reflecting the quality and configurability of ICE’s diversified business model. Forward-looking considerations hinge on volume trends in core exchanges and fixed income, ongoing monetization of data services, and the trajectory of the mortgage origination ecosystem, all against a backdrop of macro volatility and regulatory developments in global markets.
ICE’s quarterly results reaffirm its ability to convert modest top-line movements into robust profitability and cash flow generation, supported by a high-margin data and services footprint and a diversified asset mix that cushions the business from cyclicality in any single market. Management commentary (where available) typically emphasizes disciplined cost management, continued product and data enhancements, and the strategic importance of expanding Mortgage Technology and data services. The balance of the year will be influenced by trading volumes, interest rate environments, and the housing market, but ICE’s recurrent revenue model and asset-light data products position the company well relative to peers seeking durable cash flow and earnings visibility.
Key quantitative takeaways (USD in millions unless noted):
- Revenue: $3,007.0; YoY -0.9%; QoQ -7.8% (trailing four-quarter context)
- Gross Profit: $2,266.0; YoY +37.3%; QoQ -9.6%; Gross Margin ~75.36%
- Operating Income: $1,174.0; YoY +6.4%; QoQ -41.8%; Operating Margin ~39.0%
- Net Income: $816.0; YoY +24.2%; QoQ -4.1%; Net Margin ~27.1%
- EBITDA: $1,561.0; EBITDA Margin ~41.9% (EBITDA/Revenue)
- EPS: $1.43; Diluted EPS $1.42; YoY +24.4%; QoQ -4.0%
- Interest Income / Expense: Interest expense presented as -$192.0 (interpreted net as interest income); Net Other Income: -$93.0; Overall pre-tax income: $1,081.0; Effective tax rate: 23.1%
- Shares (W.A.): ~572–574 million; Diluted: ~574 million
Notes:
- The figures reflect the QQ3 2025 quarter and the trailing four-quarter context where noted. The data indicate a favorable margin profile driven by ICE’s diversified, high‑margin, recurring revenue streams (exchanges, data services) despite a modest top-line dip YoY.
- The four-quarter data show Q3 2025 revenue of $3.007B following Q2 2025 at $3.262B, and earlier quarters in 2025, with 2024 results included for comparative context.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.01B
-0.86%
-7.82%
Gross Profit
2.27B
37.33%
-9.61%
Operating Income
1.17B
6.44%
-41.77%
Net Income
816.00M
24.20%
-4.11%
EPS
1.43
24.35%
-4.03%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript-derived insights are not available in the provided data set. No earnings-call transcript or management quotes were supplied, therefore specific quote-backed themes or management tone cannot be quoted or categorized here. Analysts evaluating this quarter should supplement this analysis with the official earnings call transcript to capture management color on volumes, product mix shifts (Exchanges, Fixed Income/Data Services, Mortgage Technology), and any qualitative guidance or strategic updates provided by ICE executives.
Transcript not provided in the data set.
— ICE Management
Transcript not provided in the data set.
— ICE Management
Forward Guidance
No explicit forward-looking guidance was contained in the provided data set for QQ3 2025. Based on the reported cadence and ICE’s business mix, the plausible trajectory hinges on:
- Trading volumes and listing activity from Exchanges, which are sensitive to macro volatility and equity market cycles;
- Growth in Fixed Income and Data Services through higher-demand data products, analytics, and connectivity services; and
- Mortgage Technology, where origination volumes and the broader housing market dynamics influence monetization and platform adoption.
Assessment: Given ICE’s track record of durable margins and recurring revenue, the path to stable to modestly positive growth appears achievable if volumes hold in exchanges and fixed income, while continued investment in data capabilities supports upside from data monetization. Watch: (1) global regulatory/dialogue impacting market activity, (2) mortgage-originations cycle, (3) pricing of data products and connectivity services, and (4) cost discipline sustaining operating leverage.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0JC3.L Focus
75.36%
N/A
N/A
N/A
0HW4.L
40.40%
24.30%
9.08%
9.05%
0K92.L
21.40%
11.90%
6.88%
19.82%
0L8A.L
37.90%
32.70%
4.61%
16.05%
0KYY.L
61.80%
39.20%
2.86%
41.18%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, ICE presents a favorable earnings quality profile driven by a diversified, high-margin revenue base and a resilient cash-flow generation engine. The QQ3 2025 results show solid profitability despite modest revenue pressure, consistent with a company that benefits from recurring revenue and scalable data products. Investors should monitor exchange volumes, fixed income activity, mortgage origination cycles, and any regulatory shifts that could alter the pace of growth or pricing of ICE’s data and connectivity services. Given the balance of durable earnings, margin resilience, and the strategic emphasis on data and mortgage technology adjacencies, the intermediate-term investment thesis remains constructive, with a bias toward data-driven monetization and continued efficiency programs supporting returns.
Key Investment Factors
Growth Potential
ICE benefits from a diversified, asset-light model with sustainable, high-margin recurring revenue from Exchanges, Fixed Income and Data Services, and an expanding Mortgage Technology platform. Long-term growth drivers include data analytics monetization, higher-margin connectivity and data services, and the potential for continued share of wallet gains in listed and cleared products across geographies.
Profitability Risk
Key risks include cyclicality in market volumes, regulatory changes affecting exchange activity, mortgage origination cycles and regulatory risk in the housing finance ecosystem, competitive pressure from other large-cap exchanges/data providers, and cyber/security risks given the data- and connectivity-centric business model.
Financial Position
ICE shows strong profitability with high gross margins and solid operating margins. While explicit balance-sheet details are not provided in the data set, the quarterly EBITDA and net income figures imply robust free cash flow potential and earnings visibility. The presence of negative interest expense (net) suggests favorable financing or investment income, contributing to pre-tax profitability.
SWOT Analysis
Strengths
Leading multi-asset exchange and data infrastructure with a broad, global footprint
High-margin, recurring revenue model supported by data services and connectivity offerings
Diversified business mix (Exchanges, Fixed Income & Data Services, Mortgage Technology) reducing dependence on any single cycle
Strong EBITDA and operating margins underpinning earnings quality
Weaknesses
Limited disclosed balance-sheet detail in the provided data set; debt and liquidity metrics not explicitly shown
Exposure to macro-market cycles and housing-market dynamics via Mortgage Technology
Rising regulatory complexity across multiple jurisdictions could impact volumes and pricing power
Opportunities
Monetization of data assets and analytics across market data products
Expansion of Mortgage Technology platforms to improve origination efficiency and loan-level data services
Further cross-sell opportunities across Exchanges, Data Services, and Fixed Income data products
Threats
Regulatory changes or market structure reforms impacting trading volumes
Intense competition from other global exchanges and data providers
Macro shocks or prolonged volatility reducing transaction activity and listings
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