Oct 30, 2026 earnings call — S&P license extension and KPI product launch
Cboe grew net revenue 18% year-over-year to $712 million and signed a 25-year S&P licensing extension.
Revenue $0.7B (est $0.7B) · EPS $3.63 (est $3.43)
Key quotes
"A landmark achievement during the quarter was the signing of a 25-year extension of our exclusive licensing agreement with S&P Dow Jones Indices, which continues our collaboration through 2051."
"Then, in October, we received approvals to offer securities-based KPI contracts on 23 companies, creating a new avenue for innovation in financial markets."
"In SPX 0DTE, retail volume jumped 46% year-over-year, outpacing institutional growth of 20%."
Analyst Q&A 12
SPX royalty pricing plan
Q (Patrick Moley · Piper Sandler): Analyst asked which pricing levers will offset the 2027 royalty step-up, whether customers have been told, and why volumes won't fall.
A: Management said the 2027 impact should be de minimis. They plan to rely on organic volume growth, fee optimization for SPX, and strong execution. They have been communicating price increases to trading participants.
"On the future impact, really, we expect, as we've mentioned, the impact on 2027 net revenue growth to really be de minimis." — Prashant Bhatia
DataVantage revenue drivers
Q (Dan Fannon · Jefferies): Analyst asked why DataVantage keeps beating expectations and whether that growth is sustainable into next year.
A: Management said Q3 was record revenue and growth came from all four DataVantage functions. Access drove the biggest growth, followed by market data, analytics, and indices, with much of the growth from outside the U.S.
"Our growth was driven by access, then market data, followed by analytics and indices." — Prashant Bhatia
Long-term SPX royalty outlook
Q (Alex Kramm · UBS): Analyst asked if royalty increases will continue annually and whether Cboe can keep passing them to customers over the long term.
A: Management said 2027 is the first and largest step-up and that increases moderate starting in 2028. They emphasized commitment to driving long-term net revenue growth and planning investments accordingly.
"What I'll just say is, we're committed to continuously driving long-term net revenue growth." — Jill Griebenow (CFO)
Single-stock KPIs launch timing
Q (Ben Budish · Barclays): Analyst asked about rollout timing, market maker readiness, hedging ability, and implications for institutional adoption.
A: Management said they are targeting a November launch, pending clearing member, broker, and market maker readiness, and that screens should be lit on day one. They expect retail to lead early and institutions to follow as datasets develop; Robinhood and Interactive Brokers will support day-one access.
"We are targeting sometime in November, pending really clearing member broker and market maker readiness." — Rob Hocking
Capital allocation and buybacks
Q (Eli Abboud · BofA): Analyst asked how quickly the $1 billion repurchase will be used, how much cash the business needs, and whether capital plans changed after the SPX renewal.
A: Management declined to give detailed specifics but said capital allocation priorities have not changed. They remain focused on investing in the business, paying the quarterly dividend, opportunistic buybacks, and selective M&A, keeping a strong balance sheet for flexibility.
"What I will just say is that I cannot go into specifics as to your detailed questions there, but really what it comes down to is our capital allocation priorities really have not changed." — Jill Griebenow (CFO)
KPI market ramp and fees
Q (Bill Katz · TD Cowen): Analyst asked how fast KPIs could expand beyond initial products, global opportunity, distributor pipeline, and fee plans.
A: Management said they're building the KPI market slowly and prioritizing adoption over revenue, waiving fees through end of 2026. When fees start, they expect per-contract pricing similar to other options, and they plan to extend products over time based on demand.
"Right now, the priority is adoption, not really revenue." — Rob Hocking
Institutional adoption and clearing
Q (Brian Bedell · Deutsche Bank): Analyst asked how Cboe will market KPIs to institutions, whether institutions can connect directly or via FCM, and about pricing relative to other event contracts.
A: Management said they welcome competition and expect the KPI binary market to become multi-listed over time. They stressed SEC-regulated securities products offer surveillance and investor protections that help institutional adoption and believe their intermediated model and CCUS clearing are advantages.
"Once again, like 0DTE, we anticipate they will be slower to adopt something like this." — Rob Hocking
CCUS supporting perpetuals
Q (Jeff Schmitt · William Blair): Analyst asked if expanded U.S. clearing (CCUS) could support perpetual futures and if cross-margining would be an advantage.
A: Management said they remain committed to OCC and the listed options market while building CCUS as a flexible platform to support nascent markets like tokenization, perpetuals, and prediction products. They would contemplate cross-margin and efficiency gains as markets develop and where working with OCC makes sense.
"CCUS is really designed like a blank canvas in a way that we can start to develop operational, technical, and risk engine, risk model type capabilities that are really designed to address the kind of nascent, evolving market." — Craig Donohue (CEO)
Expense path and steady-state margins
Q (Alex Blostein · Goldman Sachs): Analyst asked how to think about multi-year expense trajectory and what steady-state margins might be.
A: Management said they do not guide to a specific margin; margins are an output of revenue growth and expense management and will fluctuate with investment cycles. They plan measured, balanced investments and will provide 2027 guidance in early February.
"What I'll say is, we don't guide to a specific margin." — Jill Griebenow (CFO)
Mini-SPX and SPX growth drivers
Q (Michael Cyprys · Morgan Stanley): Analyst asked what drove Mini-SPX's >100% growth, role of pattern day trader repeal, and drivers for continued SPX growth.
A: Management said retail platforms drove volume, helped by the pattern day trader repeal, better tools and education, and right-sized products like XSP. They also see growth from international broker onboarding, extended trading hours, and increasing institutional use for short-dated hedges.
"As you mentioned, the pattern day trader repeal removed a real barrier." — Rob Hocking
Retail engagement and AI effects
Q (Dan Welden · Wells Fargo): Analyst asked about rising Options Institute registrations and whether AI tools drive more retail options engagement.
A: Management said Options Institute growth is driven by international curricula and a popular education portal, and they are pleased with uptake. On AI, they currently lack measurement but expect AI may speed trading as investors build systematic strategies that use good data and defined-risk products.
"I would say we don't have good measurement as of yet." — Rob Hocking
Distribution partners competing with Cboe
Q (Simon Clinch · Rothschild & Co Redburn): Analyst asked how Cboe views partners who might launch their own KPI products and the long-term friction over steering volume to platforms.
A: Management said some firms are exploring different regimes today, but Cboe believes KPIs are securities and that the securities regime provides stronger surveillance and investor protections. They favor an open, all-to-all market structure for scalability and plan to build the market 'the right way'.
"One of the reasons why our markets work so well and why we have had extraordinary growth over many, many, many decades is they are all-to-all markets, and they are non-discriminatory open access markets." — Craig Donohue (CEO)