Business Context and Reporting Period
Company: Miami International Holdings, Inc. (MIH)
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2026
Business Overview: MIH operates regulated financial marketplaces across options, futures, and cash equities through its MIAX Exchanges (Options, Pearl, Emerald, Sapphire), MIAX Futures, and international listings via the Bermuda Stock Exchange (BSX) and The International Stock Exchange (TISE). The company also operates Dorman Trading, a futures commission merchant.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Total Revenues | $387.6 million | $757.3 million |
| Net Income | $44.2 million | $214.4 million |
| Diluted EPS | $0.40 | $1.95 |
| Operating Income | $27.8 million | $73.8 million |
| Adjusted EBITDA | $76.8 million | $142.8 million |
| Cash and Cash Equivalents | $660.5 million | $660.5 million (Balance Sheet) |
| Total Debt (Current) | $1.5 million | $1.5 million |
| Operating Cash Flow (6mo) | N/A | $183.6 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 18.3% ($59.8 million) for the quarter and 15.6% ($102.5 million) for the six months compared to the prior year periods. Growth was driven by a 26.8% increase in Options market contracts and the inclusion of TISE (acquired June 2025).
- Profitability Surge: Net income for the six months ended June 30, 2026, was $214.4 million, a massive increase from $2.1 million in the prior year. This was significantly influenced by a $50.6 million gain on the sale of MIAXdx and a $85.6 million income tax benefit.
- Operating Expenses: Operating expenses increased 46.5% for the quarter, primarily due to a $30.0 million litigation settlement with Nasdaq and increased marketing spend for new product launches.
- Segment Performance: The Options segment remains the primary profit driver. The Futures segment reported an operating loss of $12.7 million for the quarter, impacted by the sale of MIAXdx and inverted pricing on new financial futures products.
Guidance, Outlook, and Material Events
- MIAXdx Disposition: On January 20, 2026, the company sold 90% of MIAXdx (now Rothera) to a joint venture of Robinhood and SIG, recognizing a $50.6 million gain. MIH retained a 10% equity interest.
- Nasdaq Litigation Settlement: The company settled long-standing litigation with Nasdaq for $30.0 million, resolving all claims and counterclaims. This amount was accrued in Q2 2026.
- Pyth Tokens: In May 2026, 125 million Pyth tokens were unlocked and recognized as digital assets. The company recorded an unrealized loss of $0.5 million on these assets for the quarter. Remaining locked tokens are valued at $3.8 million.
- Debt Repayment: The company repaid its $140 million Senior Secured Term Loan in August 2025 using IPO proceeds. As of June 30, 2026, outstanding debt is limited to $1.5 million in promissory notes.
- Outlook: Management cites heightened market volatility and retail participation as drivers for Options volume. The company is investing in new financial futures products (launched May 2026) which currently operate with inverted pricing to attract liquidity.
Investor Verification Checklist
- Sustainability of Net Income: Verify the extent to which the $214.4 million net income is driven by one-time items (MIAXdx sale gain, tax benefit) versus recurring operational cash flow.
- Litigation Resolution: Confirm the final terms of the Nasdaq settlement and ensure no further contingent liabilities remain regarding intellectual property claims.
- Pyth Token Valuation: Monitor the fair value of the remaining 125 million locked Pyth tokens and the volatility of the unlocked digital assets on the balance sheet.
- Futures Segment Viability: Assess the timeline for the new financial futures products to move from inverted pricing (loss-making) to profitability.
- CAT Funding Risk: Review the status of the Consolidated Audit Trail (CAT) funding model litigation, as the company has significant receivables ($36.5 million net) tied to potential cost recovery.