Super Investors Be Like
John Armitage·CME GROUP INC
CME

Cme Group — Financial Results

AI Overview

Revenue and Profit Rose Steadily in 2025

Metric20252024Change
Total revenues$6,520.6M$6,130.1M+6%
Net income$4,072.2M$3,525.8M+15%
Diluted EPS$11.16$9.67+15%
Operating margin64.9%64.1%+0.8pp

CME grew revenues by 6% in 2025 while keeping expense growth to just 4%, allowing profit to expand faster than revenue — a hallmark of a well-run exchange business. Net income jumped 15%, and the operating margin (the share of revenue left after expenses) ticked up to 64.9%, meaning nearly two-thirds of every dollar earned flows through to profit.

Trading Volumes Hit Record Levels Driven by Global Uncertainty

Product2025 Avg Daily Volume (000s)2024Change
Metals988736+34%
Equity indexes7,4106,847+8%
Energy2,6952,488+8%
Agricultural1,8531,711+8%
Interest rates14,20313,716+4%

Average daily volume (contracts traded per day) rose 6% overall to 28.1 million contracts, with metals leading the way at +34%, driven by gold and silver as investors sought safe-haven assets. Tariff uncertainty, geopolitical tensions, and Federal Reserve policy debates all pushed customers toward CME's risk-management products — essentially, turbulent markets are good for CME's business.

Market Data Revenue Jumped 13%, Adding a Reliable Income Stream

Market data and information services revenue climbed from $710.2M to $803.1M, a 13% increase. This revenue comes from selling real-time and historical trading data to subscribers — it does not depend on trading volume the same way transaction fees do. The growth came from both price increases and higher usage, making it a steadily growing, relatively predictable complement to CME's volume-driven core business.

A Large One-Time Gain Came from Selling the OSTTRA Joint Venture

In the fourth quarter of 2025, CME sold its stake in OSTTRA (a post-trade services joint venture) and recorded a $306.1 million gain. This was a meaningful one-time boost to non-operating income and contributed to the 81% surge in total non-operating income. Investors should note that this gain will not repeat in 2026.

Cash Generation Was Strong, and CME Declared a Large Variable Dividend

Metric20252024Change
Operating cash flow$4,277.1M$3,690.5M+16%
Cash on hand (year-end)$4.4B$2.9B+52%

CME generated $4.3 billion in cash from operations and ended the year with $4.4 billion in cash. The board declared a regular quarterly dividend of $1.30 per share plus an additional variable annual dividend of $6.15 per share in February 2026 — the variable dividend reflects strong prior-year performance and is not guaranteed to repeat at the same level each year.