Intercontinental Exchange, Inc. Stock Price: Quote, Forecast, Splits & News (ICE)

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Market Cap: $102B
IPO Date: 11/16/05
CEO: Mr. Jeffrey C. Sprecher
Fulltime Employees: 13K
Sector: Financial Services
Industry: Financial - Data & Stock Exchanges
Country: US
Exchange: New York Stock Exchange

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Perplexity Finance

ICE

Intercontinental Exchange, Inc.

ICE

Overview

Financials

Historical Data

$178.30

-$0.78

0.44%

Jun 13, 3:18:40 PM EDT

Change

-$0.78

0.44%

Financial Profile

Prev Close

$179.08

Market Cap

$102.28B

Day Range

$177.46 - $179.95

Open

$178.09

P/E Ratio

37.0

52W Range

$133.97 - $180.89

24H Volume

$274.29M

Dividend Yield

1.04%

EPS

4.82

Key Issues

Earnings

Report Date

May 1, 2025

Reported Revenue

3.2B

Beat +31.25%

Avg 1d Change

3.21%

Report Period

Q1 2025

Reported EPS

1.7

Beat +1.18%

Implied Move 1d

4.09%

Transcript

11m 17s

Throughout this presentation, unless otherwise indicated, references to revenue growth are on a constant currency basis. Please see the explanatory notes on the second page of the earnings supplement for additional details regarding the definition of certain items. With us on the call today are Jeff Strecker, Chair and CEO Warren Gardner, Chief Financial Officer Ben Jackson, president Lynn Martin, president of NYSE and Chris Edmunds, president of fixed income and data services. I'll now turn the call over to Warren. Thanks, Katya. Good morning, everyone, and thank you for joining us today.

11m 54s

I'll begin on Slide four with a summary of our record first quarter results. First quarter earnings per share of $1.72 were up 16% year over year. These strong results were led by an 8% increase in net revenue to a record $2,500,000,000 Importantly, against the backdrop of macroeconomic uncertainty, we saw growth across all three of our operating segments. First quarter adjusted operating expenses totaled $964,000,000 slightly below the low end of our guidance range, driven in part by better than anticipated savings and synergies primarily related to technology spend. As a result of this strong performance, adjusted operating income increased by double digits of 11% versus the prior year and reached a record $1,500,000,000 This strong business performance allowed us to return $519,000,000 of capital to our shareholders during the quarter, including $241,000,000 of share repurchases. And we did this while also investing in our business and reducing leverage which ended the first quarter under 3.2 times EBITDA. Before I move to our segment results, I'll now note a few guidance items. As we look to the second quarter, we expect adjusted operating expenses to be in the range of $980,000,000 to $990,000,000 with the increase versus the first quarter largely driven by a weaker dollar relative to the pound and euro a dynamic that is more than offset by higher revenues.

13m 23s

A full quarter of merit increases, and accrual for awards related to our strong year to date performance. Second quarter non operating expense is expected to be between $175,000,000 and $180,000,000 with slightly lower interest expense from reduced leverage offset by the refinancing of our $1,250,000,000 maturity coming due in May. Now let's move to slide five where I'll provide an overview of the performance of our Exchange segment. First quarter net revenues totaled a record $1,400,000,000 up 12% year over year. Record transaction revenues of nearly $1,000,000,000 were up 16%, driven by an 18% increase in our interest rate business, 21% growth in NYFC cash equities and options revenues, and another quarter of record energy revenues, which grew 23% year over year. In addition, volumes accelerated in April with energy ADV up 39%. Interest rate ADV up nearly 60%, our cash equity ADV up 68% and our equity option ADV up 11%. And importantly, amidst rising volatility, open interest continues to build up 8% year over year including 21% growth in global interest rates, and 7% growth in our energy markets. Shifting to recurring revenues, include our exchange data services and our NYSE listings business, revenues totaled $368,000,000 up 3% year over year.

14m 49s

Underpinning growth in our recurring revenues was our broader exchange data and connectivity services, which grew 5% as once again led by futures data services. In our listings business, the NYSE helped to raise over $4,000,000,000 in new proceeds in the first quarter, including Venture Global, the largest IPO year to date. Worth noting that less than 40% of IPOs met the end line listing standards in the first quarter, and these high standards remain a critical component of our 99% plus retention rate. Additionally, the backlog for new IPOs remained strong, with a variety of companies seeking to raise capital when volatility abates. Turning now to slide six. I'll discuss our Fixed Income and Data Services segment. First quarter revenues totaled a record $596,000,000 including transaction revenues of $125,000,000 On a year over year basis, revenue at ICE bonds increased by 16% driven by 18% growth in our muni business, and 30% growth in corporate bond trading. Within our CDS business, revenues increased year over year with lower members interest offset by clearing revenue, which increased 27% year over year amidst increasing macroeconomic uncertainty. Recurring revenues totaled a record $471,000,000 and grew by 5% year over year. Our fixed income data and analytics business, revenues increased 4% year over year driven by growth in pricing and reference data 14% growth in our index business, which reached a record $684,000,000,000 in ETF AUM as of the end of the first quarter.

16m 25s

Data and network technology which we previously referred to as other data and network services, increased by 7% in the first quarter. An acceleration from 5% growth in 2024. Growth was driven by the return on various data center investments we have recently made in our ICE Global network, as well as continued growth in our consolidated feeds business and strong performance across our desktop solutions. Driven in part by cross sell opportunities sourced from both our energy and NYSE customer bases. Please flip to slide seven, where I will discuss our mortgage technology results. First quarter revenues totaled $510,000,000 Recurring revenue totaled $397,000,000 up both sequentially and year over year. On a year over year basis, improvement was largely driven by our servicing business. And while we benefited from a few million dollars of one time revenue that we do not anticipate will repeat, growth was also driven by new customers implementing on MSP. Transaction revenues totaled $113,000,000 up slightly year over year driven by revenue growth related to Encompass closed loans and applications. An increase in closing solution fees, and higher default management revenues as foreclosure starts within our servicing business have begun to tick higher from historic lows.

17m 42s

In summary, we delivered record first quarter results. Included record revenues, operating income and adjusted EPS. Building upon our record 2024. Amidst macroeconomic and geopolitical uncertainty, we are uniquely positioned to invest across our business, meet the needs of our customers, and continue to deliver consistent and compounding growth for our shareholders. I'll be happy to take your questions during Q and A. But for now, I'll hand it to Ben. Thank you, Warren, and thank you all for joining us this morning. Please turn to Slide eight. Amidst the dynamic macroeconomic and geopolitical environment, our customers continue to rely on our leading technology mission critical data, in transparent and accessible markets, to navigate uncertainty while managing risk, Across our global futures markets, total average daily volumes increased 23% to a record 10,000,000 lots in the first quarter. Including records across energy, and interest rates. This strong performance drove record futures and options revenues which grew 18% versus prior year. Building on the momentum of a strong first quarter, ADV into April was up 43% year over year. Led by continued strength in our energy and interest rate franchise up 3959%, respectively. More importantly, open interest continues to trend higher, up 8% year over year.

19m 8s

As we have consistently said, open interest is a helpful guide to gauging the health of our markets and proves to be a leading indicator of volume growth during volatile periods. For over two decades, we've worked closely with our customers to develop a diverse liquid and globally interconnected energy network. Today, as trade dynamics evolve and become increasingly complex, our network provides the critical feedback loop required to address near term supply and demand imbalances. As well as the long term price signals needed to efficiently allocate the capital necessary to meet forward looking demand. This deliberate and long term strategic direction contributed to our eighth consecutive quarter of record energy revenues, which increased 23% year over year and that is on top of 32% growth achieved in last year's first quarter. This strong performance is a testament to customers' continued confidence in ICE as the global energy hedging venue of choice. In our oil markets, through constant innovation, Brent has firmly cemented its itself as the global benchmark for crude oil. Pricing roughly three quarters of the world's internationally traded crude and from which prices are discovered in The U. S. Gulf Coast via ICE's WTI and in The Middle East and in Asia via ICE's Mervin and Dubai markets.

20m 32s

In the first quarter, record volume in our oil complex increased 18% year over year including records across Brent, WTI, Midland TI, Mervyn and Platts Dubai. Collectively, this strong performance drove record oil revenues which grew 17% year over year. In addition, as a leading indicator of ongoing interest in our markets, open interest across the complex set a series of records in April, This growth signals that customers are managing more risk amid heightened volatility. In our natural gas markets, we followed a similar playbook building a platform that offers the broadest range of natural gas benchmarks across The U. S. Canada Europe, and Asia underpinned by our liquid markets in Henry Hub and North American basis TTF and JKM. A thoughtful approach that uniquely positions ICE to continue to benefit from both the near term volatility and long term growth trends occurring across these markets. Reflecting this dynamic, volumes and revenues in our global gas portfolio set records in the first quarter, both increasing 33% year over year. In North America, we began preparing for the evolution of gas markets beyond the Henry Hub benchmark several years ago. Through close collaboration with our customers, we created our exclusive U. S. And Canadian basis markets, a suite of precise risk management tools that reflect commercially relevant supply and demand dynamics of 70 distinct North American gas hubs.

22m 8s

In the first quarter, volumes in our Henry Hub contract grew 26% year over year, while record volumes in our basis markets increased 52%. The first quarter also included nine of our top 10 all time highest volume days. Collectively, the strong performance drove a 30% growth in our North American gas complex including record options volumes. Similarly, the globalization of gas and the rise of LNG are secular trends we began investing in more than a decade ago through our acquisition of Endex. An investment that positions us as a leader in European trading via our TTF contract. In more recent years, geopolitical shifts in a tight LNG market have intensified market globalization and increased the need for risk management. As a result, our TTF benchmark has asserted itself that its position as the brunt of natural gas markets and continues to be relied by an increasing number of market participants. At the same time, our TTF contract delivered another record setting quarter across volume, revenues, open interest, with each growing double digits versus prior year. This record performance underscores TTS' deep liquidity and the critical role it plays in providing daily global natural gas price signals. At the same time, the global transition to less carbon intensive fuels supports demand growth for natural gas, particularly for developing economies which prioritize reliable, affordable fuel.

23m 43s

For example, in Asia, where coal still accounts for roughly half of the region's energy supply, Our JKM contract serves as the price benchmark for Asian gas and continues to reach important milestones, record volumes increasing 28%. As policy discussions regarding sustainability objectives continued to evolve, our leading environmental markets work with our oil, natural gas, coal and power markets to provide the price transparency across the energy spectrum. Transparency that is critical in navigating this multilayered and nonlinear progression. In the first quarter, our North American environmental markets traded again at record levels contributing to a 15% volume growth our environmental portfolio. In summary, as the confluence of increasing energy demand evolving supply chains and the energy transition continues to introduce new complexities, uncertainties and volatility in the energy markets, we believe the markets we operate will prove instrumental as the long tail and complex evolution of global energy unfolds. Turning now to our fixed income and data services business on Slide nine. As fixed income markets automate and passive investing grows, our comprehensive platform continues to generate compounding revenue growth delivering another quarter of record revenues. Which grew 5% year over year. Our decades long position as a leading provider of price and reference data has served as the foundation for ICE, become one of the largest providers of fixed income indices globally.

25m 15s

Here, growth continues to be fueled by growing demand for ETFs and their expanded role in markets. With assets under management benchmarked to ICE indices growing to a record of $684,000,000,000 through the end of the first quarter. This strength once again drove double digit revenue growth in our index business, We also signed two additional licensing deals in the quarters, with large global asset managers. One will move existing AUM to our index family and the other will launch a completely new ETF against our index solution. In our data and network technology business, revenues increased 7% year over year, driven by continued demand of our desktop. As well as our ICE global network and feeds offerings. As customers continue to modernize workflows, and as past investments we've made continue to pay dividends. Within our desktop business, revenues grew double digits in the quarter, including robust growth in our ICE chat offering. Here, we continue to innovate to reduce friction across the workflow. A recent example of this innovation is the launch of ICE Voice, a cloud based audio solution integrated directly with ICE Chat providing market participants with real time voice communication capabilities alongside chat functionality. Similarly, growth in our ICE global network reflects ongoing data and technology investments we've made in that business, cementing its position as the gold standard for an ultra secure highly resilient network.

26m 49s

Cross ice bonds, which provide state of the art execution technologies and rounds out a broader fixed income offering providing solutions across the pre trade, trade and post trade workflow. Revenues increased 16% versus prior year. Along with macroeconomic factors, this growth was also driven by past investments we've made to expand the number of participants participants accessing our trading platforms, driving liquidity to our markets. Similarly, in our credit default swap clearing business, broad market volatility drove increased demand for credit protection with CDS notional cleared increasing nearly 40% in the first quarter, versus prior year. As we move forward, we will continue to expand and evolve the products and that are the foundation of our fixed income and data services segment, another all weather part of our business. Shifting now to our mortgage business on Slide 10. For nearly a decade, we've been building a life of loan platform, an end to end network built and operated by a trusted neutral third party in ICE, that spans from customer acquisition all the way through to the secondary capital markets including enhancing transparency for the over $12,000,000,000,000 mortgage backed securities market. Our neutral platform continues to attract the trust of significant customers across the mortgage landscape.

28m 8s

And as evidence to this, 20 new Encompass clients were signed in Q1 alone, and a significant new MSP client was signed in United Wholesale Mortgage. This end to end mortgage journey begins with our industry leading customer engagement suite. Which helps lenders identify new customers, while also reducing customer acquisition costs. Seamlessly integrated within our industry leading loan underwriting platform our comprehensive suite of sales, marketing and borrower engagement solutions leverages data and artificial intelligence to create effective marketing campaigns. These campaigns enable mortgage lenders to target borrowers with the right products at the right time and to educate and inform their customers throughout the origination process reducing the time and cost to originate. The process then moves into our leading loan underwriting platform, which provides significant operational efficiencies. Collecting borrower data in any form such as a portal, mobile phone, email, or scan. And then digitizing and normalizing the raw data. Once these raw data sets have been harnessed, it enables lenders to leverage our AI [indiscernible] To quickly and efficiently verify credit, income and collateral as well as manage critical disclosures and underwriting requirements. Here, we've also integrated our leading property tax flood, closing fee and compliance related information for borrowers and lenders.

29m 37s

Providing customers with a complete and automated underwriting experience. At the same time, our robust and automated quality control and audit capabilities improves both the quality of the loan package and as a result, its value. Once originated, lenders can seamlessly transfer loans to our servicing technology. A functionality that has been enabled by the complete integration of our loans servicing technology with our underwriting system. Our quality control and audit capabilities assist customers the rapid identification and remedy of critical information that may be missing from a loan file for servicing. Reducing costs while continuing to produce a higher quality asset. And as loans mature or interest rates fluctuate, transmit near real time data to the lender that owns the mortgage servicing right enabling them to quickly and efficiently compete for recapture business. Lastly, by combining these rich data sets with ICE's technology and data services expertise, we have developed tools that increase transparency for lenders, servicers and the capital markets. Here, we're improving data quality and centralizing access. With the goal of providing better pricing and prepayment modeling in the MBS market. Central to this vision is a deep and broad footprint in mortgage data to support representative modeling.

31m

Our McDash loan level data, for example, is driven by from roughly two thirds of all mortgage servicing firms. Over time, access to high quality mortgage data should bolster confidence in investment decision making, increasing sector participation, boosting liquidity, and ultimately leading to lower costs for borrowers. In this vein, we're pleased to have signed on a large global asset onto our McDash data offering in the first quarter. And our data is being implemented to drive their risk models. On behalf of our clients, we're assembling, integrating, and expanding a customer engagement suite underwriting tools, pricing systems, closing tools, registration tools, servicing systems, and the resulting data all within single end to end platform. By using ICE's technology, mortgage lenders can lower mortgage origination costs while also relieving pain points across the workflow. All while helping lenders and servicers better recapture and identify new business opportunities. And we are seamlessly connecting our customers and these services so that they can now communicate with one another via a common data standard on a robust network operated by a neutral, trusted third party in ICE. In summary, as ICE continues to enhance our leading technology, we do so with both the client and end consumer in mind.

32m 26s

We are delivering on solutions that help automate workflows throughout each stage of the mortgage life cycle. This results in lower costs to originate and service loans for our clients who can then pass those savings on to the end consumer. With that, I'll hand it over to Jeff. Thank you, Ben. Please turn to Slide 11. In the first quarter, we delivered record revenues. Record adjusted operating income, and record adjusted earnings per share marking the very best quarter ICE's history. Our record results underscore the quality of our all weather business model. And the value of our products leading technology and mission critical data. We've deliberately positioned the company to have a mix of and compounding subscription revenues. To give revenue upside exposure to investors while hedging our downside risk We placed the company at the center of some of the largest markets undergoing analog to digital conversions. We've mixed our footprint between financial markets which react to central bank acts of man, and physical markets, which react to disrupted supply chain acts of God. We've diversified our global footprint. Because at all times, somewhere in the world, there are risks that our customers and our potential customers need to manage.

33m 47s

We believe the combination of these is what makes ICE an all weather name that generates growth on top of growth. Across our futures and options markets, first quarter volume and revenue represent represented the highest quarter in ICE's history. With volume increasing 23% to deliver 18% revenue growth over the prior year. This record performance is strong evidence of the ever growing need for global risk management. As our customers continue to turn to ICE to manage risk, across the thousands of contracts offered on our platform.

34m 25s

Our open interest is up 8% year over year, These results illustrate that during recent high levels of market volatility, market participants are managing risk by adding to their positions, and not leaving. As the world's leading energy marketplace, the breadth and the diversity of our global platform platform drives an important network effect, producing capital efficiencies for our customer base. Our record first quarter operating results underscore the significance of our energy offering, marking our eighth consecutive quarter of record energy revenues, which increased 23% versus the prior year. We continue to see strong energy trading volumes to start the second quarter, as market participants look to hedge exposures to geopolitical dynamics. This includes the single highest energy trading day ever experienced on ice, with nearly 10,000,000 energy contracts traded on April 4, yielding records across our total oil business, and our Brent benchmark contract. At the same time, total energy open interest is up 7% year over year. With our oil complex setting a series of records in April. We see strong open interest trends in our Brent benchmark contract highlighting its deep liquidity and diverse global participant base. Which becomes particularly important in times of market stress.

35m 49s

Going forward, the new U. S. Administration has pledged to increase energy production which could further reorder the global energy supply chain. And thereby, the global risk that may need to be managed on our platform. Across ICE's interest rate markets, a mixed inflation picture ongoing political pensions, and shifting trade policies, are driving demand for interest rate risk management. As a result, we captured the highest quarterly volume in our company's which increased 31% versus the prior year. And included records across our Euribor and Sonya markets the most liquid benchmarks for European and UK interest rates respectively. In addition, across our gilts market, which is the benchmark the UK government bond yield curve, Volume increased 8% in the first quarter, including 12% growth in March. Our gilts open interest is up 62% year over year. Collectively, these results highlight the strength of our multi currency interest rate franchise. With overall open interest building to a 21% year over year increase. At the New York Stock Exchange, our cash equity trading volume increased 20% year over year. And our equity options volumes increased 8% year over year. Collectively, this strength provided 21% growth in our equity trading revenues. Importantly and against the backdrop of economic volatility, our state of the art tech technology provided investors with efficient venues to digest global events, make investment decisions and execute trades with unrivaled speed and accuracy.

37m 34s

We saw equity and equity option trades execute more efficiently in this period than during the volatile COVID outbreak. Handling all time high volumes and messaging rates, Our technology systems rose to the occasion, twice processing more than 1,000,000,000,000 messages a single day. With a median processing time of roughly thirty microseconds. The New York Stock Exchange's opening and closing auctions grew more than 20% They handle over $37,000,000,000 in trading activity per day. When combined with our designated market maker model, we provide a differentiated execution experience for our issuers. That reduces volatility provides tighter bid offer spreads, and offers an all in cost of capital that is significantly lower than average. This flexibility, is unique to our model, has fostered great engagement from the market participants and it further solidifies the New York Stock Exchange as the trusted risk management source during times of market volatility. And we're pleased to extend our footprint to the state of Texas, with our newly launched Texas Exchange, has been incredibly well received by our issuer community. As we move through the balance of the year and beyond, we remain focused on continuing to enhance the scale, resiliency and reliability of the ecosystem surrounding our market leading platforms and risk management products I'd like to thank our customers for their business and their for continued trust in this company.

39m 6s

And I wish to thank my colleagues at ICE, for their remarkable efforts in contributing to the very best quarter in our company's history. And importantly, for supporting our customers now more than ever place trust in our people and technology to manage risk across asset classes around the world. I'd like to now turn the call back our moderator, Lydia, and we'll conduct a question and answer session. Which will go until 09:30AM eastern time.

39m 40s

And ensure your devices are muted locally when it's your turn to speak. We kindly ask that you limit yourself to one question. First in queue, we have Ken Worthington with JPMorgan. Please go ahead. Your line is open.

39m 55s

Hi, good morning. Thanks for all the color in your prepared remarks.

39m 58s

I was hoping you could address investor interest in the rocket purchase of Mr. Cooper. Particularly in the context of its acquisition of Flagstar. So given Rocket's prominence in the mortgage market, how do you see Rocket's business strategy comparing to what ICE is putting together in mortgage? And where does ICE compete, and where does Rocket use ICE? And then maybe secondly, if we look at Flagstar and Cooper, how much business is at risk of transitioning away from ICE over time? And to what extent do your recent wins [indiscernible] you know, the potential loss of of Flag and Cooper?

40m 39s

Hi, Ken. It's Ben. A lot in there, and I'll I'll I'll try to hit hit it all and and or may may also Validation. Of our strategy. We have been working now for many years to build out a complete end to end life of loan platform on behalf of our clients. And remember, we're doing this on behalf of 3,000 clients that we have within our ecosystem some utilizing parts of our end to end platform and some utilizing all of it. We also, as I said, have been doing this for a number of years now, and we have approximately 2,500 engineers product experts, and AI experts that have been evolving enhancing and innovating our platform now for many years all within a single front to back ecosystem. And, again, it's on behalf of our clients. And and a key thing to highlight there is that we're a neutral, independent third party. We're also leveraging our AI expertise. Across all of ICE to mine things, as an example, like our servicing data. To help the client that actually owns the MSR to efficiently market a refi opportunity to their client at the right time with the right product.

42m 10s

To help enhance their ability to recapture loans. Another benefit, as I mentioned, is that we're an independent neutral provider of technology, and we put simply, we don't compete with our customers. And evidence to this is to the success that we've we have in growing out this ecosystem. And and attracting new clients to come to it, is all the successes that I've mentioned quarter over quarter that we've had bringing in some marquee name clients onto our ecosystem. We also, as I said in my prepared remarks, we signed 20 new Encompass clients in q one. And we also signed a significant new MSP client in United Wholesale Mortgage. If you saw the press release, that came out yesterday as well as articles that came out around that, you'll see that UWM specifically selected our servicing system and our client portal to help curate homeowner and lender experiences that help improve their recapture rates and referrals and they specifically highlight as well that another reason they came to us is not only the technology expertise, the fact that we're a neutral independent provider. So when I look at you know, attracting a client like that into our ecosystem, one of the largest originators in The United States mortgage business.

43m 34s

And them coming on to our platform and then look at the funnel behind that of clients that are engaging subservicers that are on MSP, as well as us directly to move loans to us, we feel great about our our overall position. And then, Ken, just to give you some of the numbers around that, So I think we previously would said Flagstar was around on an annualized basis around 1% of IMT revenues. And then ROCCATCOOPER is a little less than 3% Importantly there, a lot of that's going to be the servicing MSP in particular and they actually just recently signed a multiyear contract. So in the event they even do choose to move off of MSP, I'll just be clear that it's going to take a couple of years and there's no change to this year's guidance. As a result of that. We will start to see some impact from Flagstar as you know towards the end of this year. But in terms of Rocket Cooper, there's no impact on 2025.

44m 32s

Our next question comes from Kyle Voigt with KBW. Please go ahead.

44m 39s

Hi. Good morning, everyone.

44m 41s

Just given the balance sheet deleveraging and now return to capital, or return to buybacks. Just wondering if we get your updated thoughts on m and a. And as we think about areas of focus for ICE, most of your inorganic capital deployment over the past five years has been into the mortgage tech segment I guess, given what you've built there, and the assets that are remaining in the ecosystem, think there's still con a sizable consolidation that's that's left in that set in that segment? Or should investors be thinking about a return towards inorganic or inorganic capital deployment in other segments of the business?

45m 19s

This is Jeff. That's a great question.

45m 22s

We've been, really diligent about delevering after our most recent acquisitions in order to be able to return capital through share buybacks, which you've mentioned, we've now been able to start. And and we've been pretty diligent about delevering to try to hit a target of of at least three times or less and and we're making good headway there, which which would then free up a tremendous amount of cash flow, which we could use for return to shareholders. I think if you listen to our prepared remarks, what you're hearing is all three segments of our business are doing really well. And so we've been know, knock on wood, particularly accretive at at our share buyback policies. They've they've had great returns for our shareholders. And so given how well the company's doing and given how we're starting to free up cash flow, it just feels right to us to lean into those share buybacks at this point. Terms of m and a, we always look for opportunities and know, we we judge those opportunities against the opportunity to own our own company through share buybacks. [indiscernible] and we'll continue to do that. You're you're right in that we've through organic and inorganic, [indiscernible] Really built out an amazing end to end platform.

47m

For mortgage. And and the major pieces are seemingly there. We do get offered all kinds of bolt on things that could fit on that network. But, again, we always run them through that same lens of you know, is it is it a better ROI to just continue to invest in, in our own shares with with a company that is really highly performing right now.

47m 33s

The next question comes from Alex Blostein with Goldman Sachs. Your line is open.

47m 40s

Hey, good morning everybody. Thank you for the question. I I wanted to dig in a little more into dynamics in energy markets today. Obviously, incredibly strong results in April for obvious reasons continues be quite robust as well. As you look a little bit forward and if we are in a more in uncertain macro backdrop and in fact we'll see slower economic growth etcetera, to an extent that weighs on oil prices in a more sustainable way, Can you help us sort of think how that could impact the customers' need to hedge and just sort of the broader activity in your energy markets. How different could that be from sort of prior periods of lower oil prices and subdued volatility? So I'm just kind of trying to better understand the durability of the franchise today versus maybe prior periods. When oil prices settle down at a lower place? Thanks for the question, Alex. It's Ben. As you know and can appreciate, we're in the business of helping clients manage risk exposures to commodities, and and capital. Across our futures franchise. And you look at today's environment, there is more and more risks that people have to have to manage and and new risks that people need to manage.

48m 56s

You know, just rattling off a few, you've got the trade and tariffs situation. You got the potential for recession. You've got concerns around energy supply. You've got concerns around energy supply security. You've got the transition over a long period of time towards cleaner cleaner fuel sources. You've got regional and global interconnectivity of supply chains as well as demand dynamics. That can impact across regions and and more of an interconnected world. Supply chains are continuing to evolve. And that's just naming naming a few. So all this means that there's more and more risks for people to to manage. And we're in a unique position having a truly global platform that provides people the ability to manage these risks across the energy spectrum including environmental. We have thousands of contracts around the world with deep liquid markets that enable clients to do this.

49m 58s

And what we're seeing right now is that more people are coming to our markets to manage risk. So not only are we hitting records and throughout the prepared remarks that all three of us had today, you heard record after record and product after product. But also, across across each of these, it's important to highlight that open interest is growing at the same time. Which means that people aren't leaving the market. They're actually coming to it even more so to manage risk in these times of heightened volatility. And that's what we look at. We have looked at for since since the inception of the company. And and continue to look forward for on a forward basis as being the main barometer for the health of the market and a forward looking indicator. Of volumes to come. So we feel great that on the back of a 30% growth in energy on top of a fantastic year last year, that open interest is up 8% at the same time.

50m 59s

The next question comes from Dan Fannon with Jefferies. Your line is open.

51m 6s

Thanks. Good morning. My question is on fixed income data. You guys highlighted a couple of index wins Could you put some numbers or context around the size of those And also just how you think about that potential opportunity on a longer term basis?

51m 25s

And it's Chris.

51m 27s

I'll let Warren if he wants to talk about the numbers in a second. But I would tell you that that business continues to perform incredibly well. And and it's really on the back of investments we've made around our ability to quickly customize certain indices that are meeting the needs of the clients as they're coming up with new investments strategies along the way. So the more opportunities that we can create for them and and they then take that to their end users or end investors. Really where the conversation's been going over the last year and and really starting to to bear some fruit on that. The the we haven't talked about who those, and index providers are. I'm I'm sorry. ETF issuers are around that. But, one, we [indiscernible] it's about 10,000,000,000 of AUM that'll be coming over, at this time.

52m 20s

Our next question comes from Benjamin Boudish with Barclays. Please go ahead.

52m 26s

Hi, good morning and thanks for taking the question.

52m 29s

I was wondering if you could unpack the IMT guide a little bit. I know that the guidance is unchanged versus prior, but definitely some changes in the environment, it sounds like, know, some some of the other companies that have reported, there's things like delays in bank implementations and decision making There's some worries about the consumer even though we've seen rates come down, like, a little bit. So just curious, there any sort of moving parts under the surface? Anything going better, anything going worse, or is it really still kind of everything is the status quo? And then Warren, if you if you don't mind, could you maybe just kind of quantify the, one time revenues? And is that are there typically one time revenues? Or was this a little bit out of the ordinary this quarter? Thank you.

53m 5s

Sure. Let me start with that one first just because it's a quick one. So, yeah, it was just a it was a few million dollars. We don't typically add them on the red some credits. So I just wanted to point that out as you kind of think about taking out call it 2,000,000 or $3,000,000 of the kind of the from the run rate as you kind of move forward. On the servicing side in particular, in terms of the guidance, like, certainly things change around the margin, but nothing significant such that we would be adjusting our guidance that we gave last quarter, which at the high end was expecting sort of mid teens growth in origination volumes and towards the lower end more flattish. And so certainly out of the gates it was a good first quarter. You know, ways to go. We'll see how, you know, origination volumes trend. I mean, obviously, the ten year is actually a little bit lower than where it was when we gave that guidance, not necessarily materially. Obviously, there's been some some movement, of course, in between. But but everything's kinda moving, you know, I think, in the right direction.

53m 58s

On that front and we feel very good about that guidance as we kind of head into the second quarter and the rest of the year. And so ultimately it really enables us to focus on executing on the investments that Ben spoke to. And really stitching together this neutral third party that can really, I think, bring some efficiency to the industry and homeowners over time. So good about our position as we head into the rest of the year Our next question comes from Patrick Molley with Piper Sandler. Your line is open.

54m 31s

Yes, good morning. Thanks for taking the question. I have a one on the launch of New York Stock Exchange Texas in the first quarter know, we've seen an increasing focus on the state Texas Stock Exchange planning to launch next year. Nasdaq said that they're gonna open up a regional headquarters in Dallas. So just wanted to get, you know, your thoughts on, you know, what drove the decision to shift resources into the state of Texas And then, you know, more broadly, how are you thinking about the potential for capital markets to shift into the state in the coming years? Thanks.

55m 8s

Hi. This is Lynn. Thank you so much. For the question. Our move with NYSE Tech is sort of a continuation of a trend that we've always adopted at ICE. Which is we see an opportunity, we stay close to our customers, and we execute on it quickly. It's why we were able to announce and then launch six weeks later. NYSE Texas. When I zoom out though, Texas has always been an incredibly important state to us across ICE. We've had offices in the state of Texas, in Houston in particular, for more than two decades. Given our roots as an energy. Company and an energy exchange. And if I look at the New York Stock Exchange, it is the largest state in terms of issuers with combined market cap of around $4,000,000,000,000. So this is nothing more than us doing the latest in our continuous playbook of staying close to our customers. We were really excited that we were able to announce our first listing alongside opening the exchange, that being Trump Media and Technology Group. And we've had incredibly positive dialogue with our issuers down there. So I would expect to be able to announce some additional listings in the near future.

56m 32s

Additionally, we're in the process of bringing live the functionality around listing of ETPs. Exchange traded products, which we expect will go live in q two. So the way we really think about this is the next evolution in the way that we stay close to our customers in an incredibly important state where we have more than 3,000 customers across our entire ICE ecosystem.

57m 8s

Next question comes from Craig Siegenthaler with Bank of America. Your line is open.

57m 15s

Good morning, everyone. We have a question on mortgage check originations. So we saw transaction based revenues were up 5% over year despite a drop in origination. So can you help us reconcile those results And we're also curious if you started to see the elevated volume of bookings from last year start to hit revenues. If so, what could the revenue ramp on those new implementations look like from here? Thank you. Hey, Craig. I'll I'll start and then then Warren may chime in after [indiscernible] as I've mentioned, we continue to have great sales success with our clients. And as we alluded to on the last call, 2025 is when a lot of those deals that we closed over the last couple of years the number of them are gonna start to go live because it does take twelve to eighteen months to get some of these customers, in particular, large customers to make these types of transitions. So this year is one where we have a number of of large clients that are gonna start to to go live. And and some of the clients that we've mentioned in the past are things like JPMorgan Chase. You've got M and T Bank.

58m 29s

Fifth Third is gonna start going live through some of their some of their channels as well. Citizens Bank, Webster Bank, and then just go on down the list.

58m 38s

So we're as this year plays out, we're going to continue to see a benefit from that.

58m 46s

And then on your transaction fee, question, Craig. So one thing you've heard us talk about last couple of quarters was around customer renewals and minimums and on Encompass and particularly and, you know, with those lower minimums has been coming has been paired with higher transaction fees, price per closed loan. And one thing I think we saw during this quarter is those minimums have come down. We've seen seen loans and and customers go over those minimums. And add up and a higher transaction fee. So we did have pretty good results in terms of closed loans relative what the industry had, but we also got a little bit of help from the higher PCL or the transaction fee, if you will, on the Encompass side. And that was part of what you saw in terms of the outperformance there.

59m 31s

Next, our question is from Alex Kramm with UBS. Please go ahead.

59m 38s

Yes. Hey, good morning.

59m 39s

Just coming back to fixed income and data for a minute here. I think listening to other financial services companies, there's clearly sales cycles are lengthening in in in some parts. So just wondering what you're seeing there.

59m 56s

Think if I look at your ASV number, it may have been the biggest quarter over quarter addition. So it seems like the 1Q was still pretty good, but any updated thoughts on that? And maybe also why the fixed income data line was actually down quarter over quarter. We don't see that too often on a dollar basis. So maybe just a little bit more color what's going on there? Thanks.

1h 18s

Yeah. Alex, this is Chris. I'll start with on the sales cycle thing. I I think the way I would would let you think about that is if you're looking at an individual product I don't see any lengthening in the sales cycle itself. They take about the same amount of time. I think if you have things that are more complex where you're putting multiple items together, that that can take a little bit longer because the implementation side of that on the client side when they decide to have a multifactor implementation, it takes more time for that to schedule. So you can see that impact being a little bit longer when it comes comes to pass there. But generally speaking on a one off product that is off the shelf, if you want to think about it that way, I I don't see a anything in that sell cycle at the moment. And I'll turn it over to Juan for the other question you had. So, Alex, in terms of just the sequential, decline in those revenues, that was three things, really. There was there was one fewer day, in the quarter, which will have an impact on how we accrue for revenue.

1h 1m 23s

There was also fewer one times in the quarter. And then or really what I'm sorry to call them one times we always have them. They're kind of big, bulky dataset sales. But so we had that a little bit relative the fourth quarter. And then the equity markets were of course down a little bit. And we do have some equity exposure in our index business. It's probably about a quarter of it. But that also put a little bit of sequential pressure on the results. So it was those things that drove it. In terms of the ASV, I think it's important too to note that this was actually one of the better quarters in a while for net new business for us. You know, we saw improving sales on a year over year basis as well as improved retention. And so I think those two things were an important part of why you saw some better results on that. That front relative to what you saw in the fourth quarter maybe on AST front?

1h 2m 17s

Thank you. Our next question comes from Ashish Sabadra with RBC Capital Markets. Please go ahead.

1h 2m 26s

Thanks for taking my question. Was wondering if it's possible to parse what percentage of the energy OI growth over the last several years is driven by commercial customers versus financials? And then just maybe a quick follow-up on that earlier question on energy. Would be how would a change in geopolitical environment such as, like, a Ukraine Russia piece influence the volume going forward? Thanks.

1h 2m 50s

Hi. This is this is Ben. I think the way to think about our OI growth is that since the inception of the company, we built this business very heavily focused on the commercial user in mind. And you know, in in fact, in a in a lot of these markets, many of them are are physically settled products where people actually have to have the capability to make or take delivery of the end product. And as we even create new innovations, I'll give you an example in our Midland WTI product, HOU, that we've launched, that's been growing very nicely for us grew 200% on year over year basis. Pricing Midland TI that that's, you know, basis Houston hits the water. And is now going into the Brent Complex. That contract physically delivered and we're seeing two times the amount of actual physical deliveries on that contract. Than our peer does on their corp WTI contract. So that just gives you a sense that the people that are in there trading our products and the the people that we focus on really growing the health of ROI across all of our energy energy products. That it's heavily based on the the commercial end user.

1h 4m 10s

And on your question around if if if geo geopolitical situation is solved, which we all hope it it is. At at some point here soon. Is that gonna change anything? We don't see it changing anything because of all the other risk factors that I mentioned in term that I mentioned in the answer to Alex's question earlier. That there are so many other risks around the world that that people are faced with, you know, more than probably any time in history and especially some newer risks. And at the same time, you've got energy demand growing. For growing to support new innovations around the world like AI. That's a that's a topic that consumes a a ton of power.

1h 4m 55s

So we see the other factors that are out there continuing to drive demand for our markets and the fact that supply chains have reset where US is a major oil and LNG gas exporter. In particular to Europe on the LNG side. As the supply chains reset like that, and also a focus on energy security and the supply of that and the security of that supply that's coming into Europe. That those things changing would take a long time, if ever.

1h 5m 33s

Our next question comes from Simon Klintch with Redburn Atlantic. Please go ahead.

1h 5m 40s

Hi, thanks for taking my question. Was wondering if I could just take a step back on the mortgage business and just go back to the $14 TAM that you originally sort of set out for this business. I was wondering if you could update us on your thinking around that, particularly after your recent ICE twenty twenty five experience? Just if there's any sort of evolution of that TAM, if you if it's perhaps bigger than you expected or, you know, how to think about any sort of changes on that going forward? Thanks.

1h 6m 16s

So our our thinking has not changed on on the the opportunity around the TAM that we announced and that expanded TAM that we announced when we did the that we did the the Black Knight deal. And what you know, we've been focusing on is is really executing against the revenue synergies in addition to the expense synergies that we talked about last time and last quarter.

1h 6m 37s

Is executing against delivering on those revenue synergies. And a lot of them have to do with the fact that we have a front to back complete ecosystem that enables lenders from the point of customer all the way through to the capital markets executing on that vision. And our ability to be in a great position because we provide services to about everybody in the mortgage space. In some way, shape, or form on that front to back ecosystem. And to cross sell. And whether it's the success we've had that we've mentioned on many of these calls of cross selling encompass MSP clients, or the reverse selling MSP to clients that are within the IMT ecosystem and a great example that I brought up of United Wholesale Mortgage they're already in our ecosystem. And it was a cross sell to bring them on to the MSP platform. And then last but not least is that that third area that I've talked about around heart the investments we've made in our consumer acquisition suite of CRM and lead management solutions. To cross selling data that proprietary data that we've put now onto the Encompass network that we've been able to sell to our clients.

1h 7m 47s

So we had 100 cross sells of that. To our client base.

1h 7m 52s

Last quarter.

1h 7m 54s

Last quarter alone and then continued investments that we're making also on the capital markets side. To take some of these rich datasets and introduce some for the first time to our fixed income and data services segment to cross sell those rich datasets in there. And we're having some great success there that I alluded to as well in my prepared remarks.

1h 8m 16s

Thank you.

1h 8m 18s

We're now out of time for further questions. So I'll hand you back over to Geoff Sprackers for any closing comments.

1h 8m 24s

Well, thank you, Lydia. Thank you all for joining us. As we celebrate our twenty fifth anniversary of our founding. Hopefully, you can see from our results that we continue to build innovative solutions, and we're working hard to advance markets and are delivering compounding growth to our shareholders. So with that, I hope you have a great May Day. And we'll talk to you next quarter.

1h 8m 50s

Concludes today's call. Thank you very much for joining. You may now disconnect your line.

Key Insights

ICE reported record first quarter results, with earnings per share of $1.72 (up 16% YoY), net revenue of $2.5 billion (up 8% YoY), and adjusted operating income up 11% to $1.5 billion; all three operating segments saw growth.
The Exchange segment delivered record net revenues of $1.4 billion (up 12% YoY), driven by strong transaction revenues (up 16%), including 23% growth in energy, 18% in interest rates, and 21% in NYSE cash equities and options; open interest and trading volumes reached new highs.
Fixed Income and Data Services achieved record revenues of $596 million (up 5% YoY), with notable growth in ICE bonds (up 16%), CDS clearing (up 27%), and index business (AUM benchmarked to ICE indices reached $684 billion); data and network technology revenues rose 7%.
Mortgage Technology revenues were $510 million, with recurring revenue up both sequentially and YoY, driven by servicing business and new customer implementations; transaction revenues increased slightly, and several large clients are set to go live in 2025.
Guidance for Q2 includes adjusted operating expenses of $980–990 million and non-operating expense of $175–180 million; management reiterated unchanged guidance for IMT, expects continued strong performance across all segments, and is prioritizing share buybacks while remaining open to selective M&A.

Recent Transcripts

ICE delivered record Q1 results with 16% EPS growth and strong performance across all segments.

ICE delivered record 2024 results with double-digit growth, strong cash flow, and deleveraging.

Market Cap: $102B
IPO Date: 11/16/05
CEO: Mr. Jeffrey C. Sprecher
Fulltime Employees: 13K
Sector: Financial Services
Industry: Financial - Data & Stock Exchanges
Country: US
Exchange: New York Stock Exchange

Peers

$0.00

Watchlist

$0.00

Intercontinental Exchange, Inc. Stock Price: Quote, Forecast, Splits & News (ICE)

Earnings

Report Date

May 1, 2025

Reported Revenue

3.2B

Beat +31.25%

Avg 1d Change

3.21%

Report Period

Q1 2025

Reported EPS

1.7

Beat +1.18%

Implied Move 1d

4.09%

Transcript

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39m 55s

Hi, good morning. Thanks for all the color in your prepared remarks.

39m 58s

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42m 10s

43m 34s

44m 32s

Our next question comes from Kyle Voigt with KBW. Please go ahead.

44m 39s

Hi. Good morning, everyone.

44m 41s

45m 19s

This is Jeff. That's a great question.

45m 22s

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47m 33s

The next question comes from Alex Blostein with Goldman Sachs. Your line is open.

47m 40s

48m 56s

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50m 59s

The next question comes from Dan Fannon with Jefferies. Your line is open.

51m 6s

51m 25s

And it's Chris.

51m 27s

52m 20s

Our next question comes from Benjamin Boudish with Barclays. Please go ahead.

52m 26s

Hi, good morning and thanks for taking the question.

52m 29s

53m 5s

53m 58s

54m 31s

55m 8s

56m 32s

57m 8s

Next question comes from Craig Siegenthaler with Bank of America. Your line is open.

57m 15s

58m 29s

Fifth Third is gonna start going live through some of their some of their channels as well. Citizens Bank, Webster Bank, and then just go on down the list.

58m 38s

So we're as this year plays out, we're going to continue to see a benefit from that.

58m 46s

59m 31s

Next, our question is from Alex Kramm with UBS. Please go ahead.

59m 38s

Yes. Hey, good morning.

59m 39s

59m 56s

1h 18s

1h 1m 23s

1h 2m 17s

Thank you. Our next question comes from Ashish Sabadra with RBC Capital Markets. Please go ahead.

1h 2m 26s

1h 2m 50s

1h 4m 10s

1h 4m 55s

1h 5m 33s

Our next question comes from Simon Klintch with Redburn Atlantic. Please go ahead.

1h 5m 40s

1h 6m 16s

1h 6m 37s

1h 7m 47s

So we had 100 cross sells of that. To our client base.

1h 7m 52s

Last quarter.

1h 7m 54s

1h 8m 16s

Thank you.

1h 8m 18s

We're now out of time for further questions. So I'll hand you back over to Geoff Sprackers for any closing comments.

1h 8m 24s

1h 8m 50s

Concludes today's call. Thank you very much for joining. You may now disconnect your line.

Key Insights

ICE reported record first quarter results, with earnings per share of $1.72 (up 16% YoY), net revenue of $2.5 billion (up 8% YoY), and adjusted operating income up 11% to $1.5 billion; all three operating segments saw growth.
The Exchange segment delivered record net revenues of $1.4 billion (up 12% YoY), driven by strong transaction revenues (up 16%), including 23% growth in energy, 18% in interest rates, and 21% in NYSE cash equities and options; open interest and trading volumes reached new highs.
Fixed Income and Data Services achieved record revenues of $596 million (up 5% YoY), with notable growth in ICE bonds (up 16%), CDS clearing (up 27%), and index business (AUM benchmarked to ICE indices reached $684 billion); data and network technology revenues rose 7%.
Mortgage Technology revenues were $510 million, with recurring revenue up both sequentially and YoY, driven by servicing business and new customer implementations; transaction revenues increased slightly, and several large clients are set to go live in 2025.
Guidance for Q2 includes adjusted operating expenses of $980–990 million and non-operating expense of $175–180 million; management reiterated unchanged guidance for IMT, expects continued strong performance across all segments, and is prioritizing share buybacks while remaining open to selective M&A.