Press Release: Miami International Holdings Reports Second Quarter 2026 Results

Dow Jones
Aug 06
   -- Record Q2 Net revenue of $141 million (+35% YoY) 
 
   -- Q2 GAAP diluted EPS of $0.40; Adjusted diluted EPS of $0.48 
 
   -- Q2 Adjusted EBITDA of $77 million (+57% YoY); Adjusted EBITDA margin of 
      54% (+>700 bps YoY) 
 
   -- Updates full-year 2026 expense guidance 

PRINCETON, N.J. and MIAMI, Aug. 5, 2026 /PRNewswire/ -- Miami International Holdings, Inc. (MIAX or MIH) $(MIAX)$, a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced financial results for the second quarter of 2026.

MIAX achieved strong financial performance in Q2 2026 with record net revenue, adjusted EBITDA, and adjusted earnings. Total net revenue grew 35% year-over-year to $141.1 million, adjusted EBITDA increased 57% to $76.8 million, and adjusted EBITDA margin expanded by more than 700 basis points to 54%. Adjusted diluted earnings per share was $0.48. The company's options business benefited from elevated market volatility during the quarter, which led to a 25% year-over-year increase in average daily volume to 11.0 million contracts.

"We delivered another record quarter, growing net revenue 35% year-over-year and successfully navigating a shifting market backdrop, demonstrating both our ability to execute consistently as well as sustained customer demand," said Thomas P. Gallagher, Chairman and Chief Executive Officer of MIAX. "Our options business remains strong, our model's operating leverage drove record margins, and our Bloomberg$(R)$ index futures suite is now live."

Mr. Gallagher added: "We remain disciplined in how we allocate capital and execute our strategy, and continue to invest in a product pipeline that we expect will contribute meaningfully to continued, long-term growth."

Second Quarter 2026 Highlights

All figures are compared to the second quarter of 2025 unless otherwise stated.

   -- Net revenue, defined as revenues less cost of revenues, grew 35%, or 
      $36.5 million, to a record $141.1 million, compared to $104.7 million in 
      the prior-year period. The increase was primarily driven by strong 
      options business performance, including increased industry volumes and 
      higher non-transaction revenue. 
 
   -- Total operating expenses were $113.3 million, compared to $77.4 million 
      in the prior-year period. The increase was primarily due to a litigation 
      settlement charge as well as planned investments in headcount and 
      technology to support growth initiatives, and increased marketing spend. 
      These were partially offset by lower regulatory costs, lower share-based 
      compensation, and 2025 acquisition-related costs. 
 
   -- Operating income was $27.8 million, compared to $27.3 million in the 
      prior-year period. 
 
   -- Realized an income tax benefit of $15.4 million, primarily driven by a 
      discrete tax benefit of $22.4 million related to share-based 
      compensation. 
 
   -- GAAP net income was $44.2 million, compared to $23.5 million in the 
      prior-year period. 
 
   -- Adjusted earnings increased 41% to $53.3 million, compared to $37.8 
      million in the prior-year period. 
 
   -- Adjusted EBITDA increased 57% to $76.8 million, compared to $49.1 million 
      in the prior-year period, driven primarily by strong growth in net 
      revenues. 
 
   -- Adjusted EBITDA margin expanded to 54% from 47% in the prior-year period. 

Second Quarter 2026 Business Updates

   -- MIAX options exchanges reached average daily volume of 11.0 million 
      contracts in the second quarter of 2026, a 25.3% year-over-year (YoY) 
      increase. 
 
   -- MIAX options exchanges achieved market share of 16.5% in the second 
      quarter of 2026, compared to 16.7% in the prior year period. 
 
   -- Successfully launched Tini$(TM)$ B100 Index Futures, Tini B500 Index 
      Futures and B500 Index Futures during the quarter. 
 
Summary of Selected Unaudited Condensed Consolidated Financial Results 
 ($000, except per share amounts and percentages) 
 
Consolidated Second Quarter          2Q26                 2Q25 
Results                          June 30, 2026        June 30, 2025     Change 
----------------------------  -------------------  -------------------  ------ 
Total revenues less cost of 
 revenues ("Net revenue")           $     141,113   $          104,662    35 % 
Operating income              $            27,797  $            27,291     2 % 
Net income attributable to 
 MIH stockholders             $            44,208  $            23,527    88 % 
Diluted EPS                         $        0.40        $        0.30    33 % 
Adjusted earnings*            $            53,272  $            37,760    41 % 
Adjusted diluted EPS*               $        0.48        $        0.48    -- % 
EBITDA                        $            32,350  $            35,077   (8) % 
Adjusted EBITDA*              $            76,778  $            49,059    57 % 
Adjusted EBITDA margin %*                    54 %                 47 %    16 % 
 
 
* Reconciliation of non-GAAP results is included in the tables below. See 
"Non-GAAP Financial Information" below. 
 
 
 
Segment Results 
 ($000) 
 
Net Revenue by Business               2Q26                2Q25 
Segment                           June 30, 2026       June 30, 2025     Change 
-----------------------------  ------------------  -------------------  ------ 
Options                        $          124,394  $            92,765    34 % 
Equities                                    5,542                4,363    27 % 
Futures                                     5,094                4,990     2 % 
International                               5,744                2,291   151 % 
Corporate/Other                               339                  253    34 % 
                               ------------------  ------------------- 
Total                          $          141,113   $          104,662    35 % 
 

Options

   -- Net revenue grew 34% to $124.4 million, compared to $92.8 million in the 
      prior-year period. Growth was primarily driven by higher net transaction 
      fees tied to increased industry volume, and higher revenue per contract 
      $(RPC)$. Higher non-transaction fees were primarily driven by increased 
      member connections, 2026 fee increases, the expiration of certain MIAX 
      Sapphire related fee waivers, and new market data products. 
 
   -- Operating income increased 10% to $64.9 million, compared to $59.2 
      million in the prior-year period. Growth was primarily due to higher net 
      revenues, partially offset by a $22.5 million litigation settlement 
      charge. 
 
   -- Adjusted EBITDA grew 44% to $96.7 million, compared to $67.0 million in 
      the prior-year period. 

Equities

   -- Net revenue grew 27% to $5.5 million, compared to $4.4 million in the 
      prior-year period. The increase was primarily due to higher net 
      transaction fees from improved pricing. 
 
   -- Operating loss of $2.3 million in the second quarter, compared to an 
      operating loss of $3.1 million in the prior-year period. Growth was 
      primarily due to higher net revenues. 
 
   -- Adjusted EBITDA of ($0.5) million, compared to ($0.9) million in the 
      prior-year period. 

Futures

   -- Net revenue was $5.1 million, compared to $5.0 million in the prior-year 
      period. Net transaction fees were flat as increases in agricultural 
      future revenues were offset by inverted financial futures revenue. 
 
   -- Operating loss was $12.7 million, compared to an operating loss of $12.8 
      million in the prior-year period. 
 
   -- Adjusted EBITDA of ($9.5) million, compared to ($9.0) million in the 
      prior-year period. 

International

   -- Net revenue was $5.7 million, compared to $2.3 million in the prior-year 
      period. The increase was primarily due to revenue generated by The 
      International Stock Exchange Group Limited (TISE), which the company 
      acquired in June 2025. 
 
   -- Operating income was $1.1 million, compared to an operating loss of $1.2 
      million in the prior-year period. The increase was primarily due to the 
      impact of the TISE acquisition. 
 
   -- Adjusted EBITDA of $2.0 million, compared to ($0.6) million in the 
      prior-year period. 

Capital and Liquidity

   -- As of June 30, 2026, MIAX had cash and cash equivalents of $660.5 million 
      and total debt of $1.5 million. 

FY 2026 Guidance

The company is updating full year 2026 expense guidance and now expects:

   -- Adjusted operating expenses, which exclude share-based compensation, 
      depreciation and amortization, and litigation expenses, in a range 
      between $260 million and $270 million, down from previous guidance of 
      between $265 million and $275 million; 
 
   -- Share-based compensation expense in a range between $29 million and $32 
      million, up from previous guidance of between $27 million and $30 
      million; 
 
   -- Capital expenditures, including capitalization of internally developed 
      software, in a range between $40 million and $45 million, unchanged from 
      previous guidance; 
 
   -- Depreciation and amortization expense in a range between $35 million and 
      $39 million, up from previous guidance of between $33 million and $38 
      million; 
 
   -- Adjusted effective tax rate post valuation allowance release in a range 
      between 27% and 29%, unchanged from previous guidance. 

Webcast and Conference Call

MIAX will host a webcast and conference call to review its second quarter financial results today, August 5, 2026 at 5:00 p.m. ET. Participants can access the call at 866-652-5200 (International dial-in 412-317-6060) or access the webcast on the Investor Relations section of MIAX's website at ir.miaxglobal.com. A webcast recording and corresponding presentation will be archived under Events & Presentations at the above link following the event.

Non-GAAP Financial Information

Adjusted earnings, a non-GAAP financial measure, is defined as net income attributable to MIH adjusted for share-based compensation, investment gain/loss, litigation costs and settlement, acquisition-related costs, change in fair value of puttable warrants issued with debt, change in fair value of puttable common stock, gain on sale of business, unrealized loss on derivative and digital assets, loss on intangible asset, impairment charges, and non-GAAP tax adjustments.

Adjusted EBITDA, a non-GAAP financial measure, is defined as net income attributable to MIH adjusted for interest expense and amortization of debt discount costs, interest income, income tax provision and depreciation and amortization, share-based compensation, investment gain/loss, litigation costs and settlement, acquisition-related costs, change in fair value of puttable warrants issued with debt, change in fair value of puttable common stock, gain on sale of business, unrealized loss on derivative and digital assets, loss on intangible asset, and impairment charges.

Adjusted EBITDA margin, a non-GAAP financial measure, is defined as adjusted EBITDA divided by revenues less cost of revenues.

Adjusted diluted EPS, a non-GAAP financial measure, is defined as adjusted earnings divided by diluted weighted average shares outstanding used for adjusted diluted earnings per share (which includes the impact of anti-dilutive securities on a GAAP basis).

Certain components of the guidance given in this presentation with respect to our financial performance for the full year of 2026 are provided on a non-GAAP basis only without providing the most comparable guidance on a GAAP basis or a quantitative reconciliation to guidance provided on a GAAP basis. Information is presented in this manner because the preparation of such guidance on a GAAP basis and such reconciliation could not be accomplished without unreasonable efforts. The company does not have access to certain information that would be necessary to provide such guidance on a GAAP basis or such reconciliation, including non-recurring items that are not indicative of the company's ongoing operations. The company does not believe that this information is likely to be significant to an assessment of the company's ongoing operations.

For a reconciliation of our non-GAAP results to our GAAP results, see the tables below.

About MIAX

Miami International Holdings, Inc. (NYSE: MIAX) is a technology-driven leader in building and operating regulated financial markets across multiple asset classes and geographies. MIAX(R) operates eight exchanges across options, futures, equities and international markets including MIAX Options(R) , MIAX Pearl(R) , MIAX Emerald(R) , MIAX Sapphire(R) , MIAX Pearl Equities(TM), MIAX Futures(R) , The Bermuda Stock Exchange, and The International Stock Exchange (TISE). MIAX also owns Dorman Trading, a full-service Futures Commission Merchant and Notice Registered Broker-Dealer with the National Futures Association for purposes of facilitating transactions of security futures. To learn more about MIAX please visit www.miaxglobal.com.

Disclaimer and Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expect," "anticipates," "eventually" or "projected." You are cautioned that such statements are based on management's current expectations and are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements. Additional risks and uncertainties that may cause actual results to differ materially include the risks and uncertainties listed in MIAX's public filings with the Securities and Exchange Commission. In providing forward-looking statements, the company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise.

All third-party trademarks (including logos and icons) referenced by the company remain the property of their respective owners. Unless specifically identified as such, the company's use of third-party trademarks does not indicate any relationship, sponsorship, or endorsement between the owners of these trademarks and the company. Any references by the company to third-party trademarks is to identify the corresponding third-party goods and/or services and shall be considered nominative fair use under the trademark law.

Contacts:

Investors

John T. Williams

investor.relations@miaxglobal.com

Media

Andy Nybo

media@miaxglobal.com

 
                      Miami International Holdings, Inc. and Subsidiaries 
                  Condensed Consolidated Statements of Operations (Unaudited) 
                       Three and Six Months Ended June 30, 2026 and 2025 
                                  ($000, except share amounts) 
 
                               Three Months Ended June 30,         Six Months Ended June 30, 
                           ------------------------------------  ------------------------------ 
                                 2026               2025               2026            2025 
                           -----------------  -----------------  -----------------  ----------- 
Revenues: 
     Transaction and 
      clearing fees              $   331,884        $   286,139        $   647,294  $   575,443 
     Access fees                      34,941             26,106             68,298       50,189 
     Market data fees                 12,206             10,253             25,161       19,895 
     Other revenue                     8,598              5,286             16,566        9,334 
                           -----------------  -----------------  -----------------  ----------- 
      Total revenues                 387,629            327,784            757,319      654,861 
Cost of revenues: 
     Liquidity payments              206,633            195,651            430,159      389,697 
     Brokerage, clearing, 
      and exchange fees               15,360             14,481             31,637       30,935 
     Section 31 fees                  22,976             11,815             22,976       35,225 
     Other cost of 
      revenues                         1,547              1,175              2,841        2,458 
                           -----------------  -----------------  -----------------  ----------- 
      Total cost of 
       revenues                      246,516            223,122            487,613      458,315 
                           -----------------  -----------------  -----------------  ----------- 
      Revenues less cost 
       of revenues                   141,113            104,662            269,706      196,546 
Operating expenses: 
     Compensation and 
      benefits                        40,966             40,210             85,356       77,981 
     Information 
      technology and 
      communication 
      costs                           10,202              8,851             19,685       16,399 
     Depreciation and 
      amortization                     8,778              6,938             16,866       13,108 
     Occupancy costs                   2,977              3,002              6,220        5,450 
     Professional fees 
      and outside 
      services                        11,448             10,095             22,855       19,352 
     Marketing and 
      business 
      development                      3,176                555              4,160        1,318 
     Acquisition-related 
      costs                               --              2,247                 --        2,901 
     Litigation 
      settlement                      30,000                 --             30,000           -- 
     General, 
      administrative, and 
      other                            5,769              5,473             10,799       10,453 
                           -----------------  -----------------  -----------------  ----------- 
      Total operating 
       expenses                      113,316             77,371            195,941      146,962 
                           -----------------  -----------------  -----------------  ----------- 
Operating income                      27,797             27,291             73,765       49,584 
                           -----------------  -----------------  -----------------  ----------- 
Non-operating (expense) 
income: 
     Change in fair value 
      of puttable common 
      stock                               --            (1,688)                 --      (1,891) 
     Change in fair value 
      of puttable 
      warrants issued 
      with debt                           --            (1,486)                 --        (917) 
     Interest income                   5,254              1,418              9,640        2,713 
     Interest expense and 
      amortization of 
      debt issuance 
      costs                             (44)            (4,902)               (89)      (9,332) 
     Loss on sale of 
      intangible asset                    --            (2,054)                 --      (2,054) 
     Unrealized loss on 
      derivative and 
      digital assets                   (337)            (4,605)            (2,878)     (47,018) 
     Gain on sale of 
      business                            23                 --             50,570           -- 
     Other, net                      (3,911)             10,681            (2,179)       12,360 
                           -----------------  -----------------  -----------------  ----------- 
Income before income tax 
 provision                            28,782             24,655            128,829        3,445 
     Income tax benefit 
      (expense)                       15,426            (1,128)             85,603      (1,338) 
                           -----------------  -----------------  -----------------  ----------- 
Net income attributable 
 to Miami International 
 Holdings, Inc             $          44,208         $   23,527        $   214,432    $   2,107 
                           =================  =================  =================  =========== 
 
Weighted-average shares 
of common stock 
outstanding 
     Basic                        95,305,096         64,942,755         93,559,319   64,249,928 
                           =================  =================  =================  =========== 
     Diluted                     110,713,513         78,458,195        109,943,953   77,952,959 
                           =================  =================  =================  =========== 
Net income per share 
attributable to common 
stock 
     Basic                 $            0.46  $            0.36           $   2.29     $   0.03 
                           =================  =================  =================  =========== 
     Diluted                        $   0.40  $            0.30  $            1.95     $   0.03 
                           =================  =================  =================  =========== 
 
 
 
            Miami International Holdings, Inc. and Subsidiaries 
              Condensed Consolidated Balance Sheets (Unaudited) 
                     June 30, 2026 and December 31, 2025 
                 ($000, except share and per share amounts) 
 
                                             June 30,         December 31, 
                                                2026               2025 
                                        -------------------  --------------- 
Assets 
Current assets: 
 Cash and cash equivalents                    $     660,462    $     433,648 
 Cash and securities segregated under 
  federal and other regulations                      26,894           27,618 
 Accounts receivable, net                           119,864           98,107 
 Restricted cash                                     13,654            6,005 
 Clearing house performance bonds and 
  guarantee funds                                   103,279           70,078 
 Receivables from broker-dealers, 
  futures commission merchants, and 
  clearing organizations                            138,329          133,533 
 Current portion of derivative assets                 3,819            6,017 
 Other current assets                                36,248           39,232 
 Assets held for sale                                    --           40,976 
                                        -------------------  --------------- 
     Total current assets                         1,102,549          855,214 
 Investments                                         28,850           19,180 
 Fixed assets, net                                   64,149           46,854 
 Internally developed software, net                  36,401           36,333 
 Goodwill                                            61,942           62,211 
 Other intangible assets, net                       169,019          170,774 
 Deferred tax asset, net                             74,404               -- 
 Derivative assets, net of current 
  portion                                                --            5,114 
 Other assets, net                                   63,073           63,745 
                                        -------------------  --------------- 
     Total assets                       $         1,600,387  $     1,259,425 
                                        ===================  =============== 
Liabilities and Stockholders' Equity 
Current liabilities: 
 Accounts payable and other 
  liabilities                                 $     135,917     $     69,780 
 Accrued compensation payable                        27,115           39,412 
 Current portion of long-term debt                    1,514            1,508 
 Deferred transaction revenues                        9,207            9,572 
 Clearing house performance bonds and 
  guarantee funds                                   102,779           69,578 
 Payables to customers                              140,923          144,641 
 Payables to clearing organizations                   5,716               11 
 Liabilities held for sale                               --            2,758 
                                        -------------------  --------------- 
     Total current liabilities                      423,171          337,260 
 Deferred income taxes                               10,863           22,386 
 Other non-current liabilities                       16,052           18,762 
                                        -------------------  --------------- 
     Total liabilities                              450,086          378,408 
 Commitments and contingencies                           --               -- 
Stockholders' equity: 
 Common stock - voting and nonvoting, 
  par value $0.001 (600,000,000 
  authorized (400,000,000 voting, 
  200,000,000 nonvoting); 99,213,601 
  issued and 98,610,560 outstanding 
  common stock at June 30, 2026 and 
  85,890,086 issued and 85,536,287 
  outstanding common stock at 
  December 31, 2025                                      99               86 
 Common stock in treasury, at cost, 
  603,041 shares at June 30, 2026 and 
  353,799 shares at December 31, 2025              (18,296)          (8,232) 
 Additional paid-in capital                       1,588,634        1,522,143 
 Accumulated deficit                              (417,907)        (632,339) 
 Accumulated other comprehensive loss, 
  net                                               (2,229)            (641) 
                                        -------------------  --------------- 
     Total stockholders' equity                   1,150,301          881,017 
                                        -------------------  --------------- 
     Total liabilities and 
      stockholders' equity                  $     1,600,387  $     1,259,425 
                                        ===================  =============== 
 

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

The following table is a reconciliation of net income (loss) allocated to common stockholders to EBITDA and adjusted EBITDA by segment ($000):

 
                                             Three Months Ended June 30, 2026 
                                                                              Corporate / 
                    Options       Equities        Futures     International       Other         Total 
                  ------------  -------------  -------------  -------------  --------------  ------------ 
Net income 
 (loss) 
 allocated to 
 common 
 stockholders     $     65,047  $     (2,336)   $   (15,744)      $     879    $    (3,638)  $     44,208 
Interest expense 
 and 
 amortization of 
 debt issuance 
 costs                      --             --             --             --              44            44 
Interest income          (114)             --          (151)          (186)         (4,803)       (5,254) 
Income tax 
 (benefit) 
 expense                    --             --             --             64        (15,490)      (15,426) 
Depreciation and 
 amortization            4,494          1,306          1,800            551             627         8,778 
                  ------------  -------------  -------------  -------------  --------------  ------------ 
EBITDA                  69,427        (1,030)       (14,095)          1,308        (23,260)        32,350 
Share-based 
 compensation(1)         2,545            540          1,303            338           2,361         7,087 
Investment 
 loss(2)                    --             --          3,279             --             731         4,010 
Litigation costs 
 and 
 settlement(3)          24,763             --             --             --           8,254        33,017 
Unrealized loss 
 on derivative 
 and digital 
 assets(4)                  --             --             --            337              --           337 
Gain on sale of 
 business(5)                --             --             --             --            (23)          (23) 
                  ------------  -------------  -------------  -------------  --------------  ------------ 
Adjusted EBITDA   $     96,735    $     (490)  $     (9,513)    $     1,983  $     (11,937)        76,778 
                  ============  =============  =============  =============  ==============  ============ 
 
 
(1)  Share-based compensation represents expenses associated with stock 
     options of $2.8 million, restricted stock awards of $2.4 million, 
     restricted stock units of $1.8 million, and warrants of less than $0.1 
     million that have been granted to employees, directors and service 
     providers. The 2026 expense of $7.1 million is made up of $5.2 million to 
     employees within compensation and benefits, $0.2 million to service 
     providers within professional fees and outside services, and $1.6 million 
     to directors within general, administrative, and other. 
(2)  Investment loss of $4.0 million represents an unrealized loss on 
     marketable equity securities. 
(3)  Litigation costs and settlement are associated with litigation related to 
     the Nasdaq matter. 
(4)  Reflects the aggregate unrealized loss resulting from the mark-to-market 
     valuation of digital assets related to unlocked Pyth tokens and 
     derivative assets related to the 125 million Pyth tokens that remain 
     locked by the Pyth Network as of June 30, 2026. 
(5)  Represents an adjustment to the gain on the sale of MIAXdx in January 
     2026. 
 
 
 
                                                 Three Months Ended June 30, 2025 
                                                                                   Corporate / 
                        Options       Equities        Futures      International      Other         Total 
                      ------------  -------------  --------------  -------------  -------------  ------------ 
Net income (loss) 
 allocated to common 
 stockholders         $     59,529  $     (3,105)  $     (12,023)  $     (7,928)   $   (12,946)   $    23,527 
Interest expense and 
 amortization of 
 debt issuance 
 costs                          --             --              35             --          4,867         4,902 
Interest income              (336)             --           (196)           (20)          (866)       (1,418) 
Income tax expense              --             --              --             77          1,051         1,128 
Depreciation and 
 amortization                3,405          1,553             984            446            550         6,938 
                      ------------  -------------  --------------  -------------  -------------  ------------ 
EBITDA                      62,598        (1,552)        (11,200)        (7,425)        (7,344)        35,077 
Share-based 
 compensation(1)             3,781            642           2,703            150          2,148         9,424 
Investment gain(2)              --             --           (454)             --        (8,650)       (9,104) 
Litigation costs(3)            632             --              --             --            211           843 
Acquisition-related 
 costs(4)                       --             --              --             --          2,247         2,247 
Change in fair value 
 of puttable 
 warrants issued 
 with debt(5)                   --             --              --             --          1,486         1,486 
Change in fair value 
 of puttable common 
 stock(6)                       --             --              --             --          1,688         1,688 
Loss on intangible 
 asset(7)                       --             --              --          2,054             --         2,054 
Impairment 
 charges(8)                     --             --              --             --            739           739 
Unrealized loss on 
 derivative and 
 digital assets(9)              --             --              --          4,605             --         4,605 
                      ------------  -------------  --------------  -------------  -------------  ------------ 
Adjusted EBITDA       $     67,011    $     (910)   $     (8,951)  $       (616)  $     (7,475)  $     49,059 
                      ============  =============  ==============  =============  =============  ============ 
 
 
(1)  Share-based compensation represents expenses associated with stock 
     options of $3.0 million, restricted stock awards of $6.2 million and 
     warrants of $0.3 million that have been granted to employees, directors 
     and service providers. The 2025 expense of $9.4 million is made up of 
     $8.3 million to employees within compensation and benefits, $0.6 million 
     to service providers within professional fees and outside services, and 
     $0.5 million to directors within general, administrative, and other. 
(2)  Investment gain of $9.1 million represents an unrealized gain of $8.6 
     million from the TISE acquisition, and $0.5 million of unrealized gain on 
     available for sale marketable securities. 
(3)  Litigation costs are associated with litigation related to the Nasdaq 
     matter. 
(4)  Relates to the TISE acquisition. 
(5)  The change in fair value of warrants issued with debt represents the 
     change in fair value of outstanding puttable warrants issued in 
     connection with the issuance of the 2029 Senior Secured Term Loan. The 
     right to put warrants terminated upon completion of the IPO in August 
     2025. 
(6)  The change in fair value of puttable common stock represents the change 
     in fair value of outstanding puttable common stock issued in connection 
     with the company's ERPs I and II that had an associated put right which 
     required the company to repurchase a certain percentage of the fair 
     market value of the award upon exercise. The right to put shares 
     terminated upon completion of the IPO in August 2025. 
(7)  Represents the realized loss on the second tranche of the 125 
     million Pyth tokens that were unlocked in the second quarter of 2025 by 
     the Pyth Network and sold by BSX during the second quarter of 2025. 
(8)  Impairment charges of $0.7 million related to owned land and building 
     impairments. 
(9)  Reflects the unrealized loss resulting from the mark-to-market valuation 
     of the 250 million Pyth tokens that remain locked by the Pyth Network as 
     of June 30, 2025. 
 

Segment Operating Results

The following sets forth our results of operations by segment ($000):

 
                                                   Three Months Ended June 30, 2026 
                                                                                    Corporate / 
                         Options       Equities        Futures      International      Other          Total 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
Revenues: 
     Transaction and 
      clearing fees    $    276,641   $     34,957    $     20,221       $     65       $     --  $     331,884 
     Access fees             30,756          3,797             406             39           (57)         34,941 
     Market data fees         8,996          1,825           1,312             80            (7)         12,206 
     Other revenue              101             --           2,623          5,560            314          8,598 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
      Total revenues        316,494         40,579          24,562          5,744            250        387,629 
Cost of revenues: 
     Liquidity 
      payments              174,153         28,336           4,144             --             --        206,633 
     Brokerage, 
      clearing, and 
      exchange fees           1,454            218          13,688             --             --         15,360 
     Section 31 fees         16,493          6,483              --             --             --         22,976 
     Other cost of 
      revenues(1)                --             --           1,636             --           (89)          1,547 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
      Total cost of 
       revenues             192,100         35,037          19,468             --           (89)        246,516 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
      Revenues less 
       cost of 
       revenues             124,394          5,542           5,094          5,744            339        141,113 
Operating expenses: 
     Compensation and 
      benefits               18,945          3,915           9,701          2,297          6,108         40,966 
     Information 
      technology and 
      communication 
      costs                   4,597          1,656           3,041            620            288         10,202 
     Depreciation and 
      amortization            4,494          1,306           1,800            551            627          8,778 
     Occupancy costs          1,514            199             463            285            516          2,977 
     Professional 
      fees and 
      outside 
      services                4,860            327             256            308          5,697         11,448 
     Marketing and 
      business 
      development               622            117           1,636            136            665          3,176 
     Litigation 
      settlement             22,500             --              --             --          7,500         30,000 
     General, 
      administrative, 
      and other               1,928            358             887            453          2,143          5,769 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
      Total operating 
       expenses              59,460          7,878          17,784          4,650         23,544        113,316 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
Operating income / 
 (loss)                      64,934        (2,336)        (12,690)          1,094       (23,205)         27,797 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
Non-operating 
(expense) income: 
     Interest income            114             --             151            186          4,803          5,254 
     Interest expense 
      and 
      amortization of 
      debt issuance 
      costs                      --             --              --             --           (44)           (44) 
     Unrealized loss 
      on derivative 
      and digital 
      assets                     --             --              --          (337)             --          (337) 
     Gain on sale of 
      business                   --             --              --             --             23             23 
     Other, net                 (1)             --         (3,205)             --          (705)        (3,911) 
                       ------------  -------------  --------------  -------------  -------------  ------------- 
Income (loss) before 
 income tax 
 provision                   65,047        (2,336)        (15,744)            943       (19,128)         28,782 
     Income tax 
      benefit 
      (expense)                  --             --              --           (64)         15,490         15,426 
                       ------------  -------------  --------------  -------------  -------------  ------------- 

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