Business Context and Reporting Period
Company: Miami International Holdings, Inc. (MIAX)
Reporting Period: Fiscal Year Ended December 31, 2025
Overview: MIAX is a technology-driven operator of regulated financial marketplaces across options, equities, futures, and international listings. The company operates four U.S. options exchanges (MIAX Options, Pearl, Emerald, Sapphire), one U.S. equities exchange (MIAX Pearl Equities), a futures exchange and clearing house (MIAX Futures), and international listing venues (Bermuda Stock Exchange and The International Stock Exchange). The company completed its Initial Public Offering (IPO) in August 2025 and a secondary offering in December 2025.
Key Financial Metrics
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenues | $1,364.1 million | $1,140.1 million | +19.6% |
| Revenues Less Cost of Revenues | $430.5 million | $275.6 million | +56.2% |
| Operating Income | $92.0 million | ($2.8 million) | Turnaround |
| Net Income (Loss) | ($70.0 million) | $102.0 million | ($172.0 million) |
| Adjusted EBITDA | $199.1 million | $82.1 million | +142.6% |
| Cash and Cash Equivalents | $433.6 million | $150.3 million | N/A |
| Long-Term Debt | $0 | $32.3 million | Repaid |
Note: Net loss in 2025 was primarily driven by a $107.7 million loss on debt extinguishment and a $54.9 million unrealized loss on derivative assets (Pyth tokens), offset by strong operating performance.
Material Changes vs. Prior Period
- Options Segment Growth: U.S. options volume increased 41.1% to 2.4 billion contracts, driving a 30.5% increase in transaction and clearing fees. Market share rose to 17.1%.
- Equities Segment Decline: U.S. equities volume decreased 8.2% to 45.8 billion shares, with market share dropping to 1.0%. However, net transaction fees improved due to pricing adjustments.
- Debt Repayment: The company used IPO proceeds to fully repay its $140 million Senior Secured Term Loan in August 2025, resulting in a $107.7 million loss on extinguishment.
- Acquisitions: Completed the acquisition of The International Stock Exchange Group (TISE) in June 2025 for approximately $69.7 million, expanding international listing capabilities.
- Dispositions: Classified MIAXdx (now Rothera) as held for sale; the sale of 90% of the subsidiary closed in January 2026, resulting in a $50 million gain recognized post-period.
- Pyth Token Volatility: The company recorded a $54.9 million unrealized loss on locked Pyth tokens in 2025, compared to an $83.8 million unrealized gain in 2024.
Guidance, Outlook, and Risks
- Product Launches: Plans to launch proprietary Bloomberg index futures and options products in Q2 2026. Also launching Monday and Wednesday weekly expirations for select securities.
- Technology Expansion: Continued investment in the MIAX Futures Onyx platform and the MIAX Sapphire trading floor to capture additional volume.
- Regulatory Risks: Significant uncertainty regarding the funding model for the Consolidated Audit Trail (CAT), which was vacated by the 11th Circuit Court of Appeals in July 2025. The company may face unreimbursed costs if a new model is not approved.
- Competition: Intense competition in options and equities markets, with potential new entrants expected in 2026.
- Cybersecurity: Ongoing risks related to cybersecurity threats and the need for continuous investment in security infrastructure.
Investor Verification Checklist
- CAT Funding Status: Verify the outcome of the SEC proceedings regarding the new CAT funding model and potential impact on future expenses.
- Bloomberg Product Adoption: Monitor the launch and initial trading volumes of the Bloomberg index products scheduled for Q2 2026.
- Equities Pricing Strategy: Assess the sustainability of the improved but still negative pricing capture in the Equities segment.
- Pyth Token Valuation: Review the fair value assumptions for the remaining 250 million locked Pyth tokens and their impact on future earnings volatility.
- MIAXdx Sale Proceeds: Confirm the final accounting treatment and cash impact of the MIAXdx sale completed in January 2026.