ICE Q2 2025: Exchanges Drive Growth, Mortgage Tech Turns Profitable

Intercontinental Exchange, Inc. (ICE), the parent company of the New York Stock Exchange (NYSE) and a global provider of data and technology, recently released its financial results for the second quarter of 2025. We've reviewed their latest 10-Q filing to break down the numbers and see what they tell us about the company's performance.

For the three months ended June 30, 2025, ICE reported strong growth. Total revenues reached $3,262 million, a 12.6% increase from the same period last year. After accounting for transaction-based expenses, revenues stood at $2,543 million. This top-line growth translated into a substantial boost in profitability, with net income attributable to ICE surging 35% to $851 million, or $1.48 per diluted share.

To visualize how the company's diverse revenue streams and costs flow down to the bottom line, the following chart provides a breakdown of the income statement for the quarter.

Segment Performance Highlights

ICE's strength comes from its diversified business, which is organized into three distinct segments. Each played a crucial role in the quarter's success.

1. Exchanges: The Core Growth Engine

The Exchanges segment, which includes the iconic NYSE as well as futures markets for energy, commodities, and financial products, remains ICE's powerhouse. It generated revenues of $2,134 million, a 17% jump year-over-year. This performance was driven by heightened market activity, with energy futures revenues up 27% and cash equities revenues up 22%. The result was a robust operating income of $1,062 million, a 20% increase from the prior year, underscoring how market volatility can fuel ICE's core trading business.

2. Fixed Income and Data Services: Steady and Stable

This segment provides essential data, analytics, and clearing services for credit and other fixed-income markets. It delivered consistent growth, with revenues rising 6% to $597 million. This led to an 8% increase in operating income to $224 million, demonstrating the value of its reliable, recurring revenue streams that balance the more transactional nature of the exchanges.

3. Mortgage Technology: A Significant Turnaround

The most compelling development this quarter comes from the Mortgage Technology segment. Bolstered by the major acquisition of Black Knight, this division provides a comprehensive suite of software and data solutions for the mortgage industry.

The segment posted a 5% revenue increase to $531 million. However, the real headline is its return to profitability. After posting an operating loss of $32 million in Q2 2024, the segment swung to an operating income of $11 million this quarter. On an adjusted basis, which excludes costs like the amortization of acquisition-related intangibles, operating income jumped 22% to $221 million. This impressive improvement suggests that integration efforts are creating efficiencies and unlocking value.

Disciplined Spending and Shareholder Returns

ICE demonstrated impressive cost control amid its revenue growth. Consolidated operating expenses were nearly flat year-over-year at $1,246 million. This operational discipline helped drive the company's operating margin up significantly, from 46% to 51%.

The company also signaled confidence in its financial strength by returning capital to shareholders. During the first half of 2025, ICE repurchased $496 million of its common stock and paid out $555 million in dividends.

In conclusion, Intercontinental Exchange delivered a powerful second quarter, showcasing the resilience of its diversified model. The core Exchanges segment capitalized on active markets, while the Mortgage Technology division executed a significant operational turnaround. By growing revenue while holding expenses steady, ICE is proving its ability to navigate a complex global financial landscape and successfully integrate its long-term strategic acquisitions.