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Ice Posts $851m Profit In Q2 2025, Raises Revenue Guidance

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Intercontinental Exchange (ICE) on Thursday announced net income of $851 million and a return to profitability in its mortgage segment for the second quarter of 2025.

ICE, which operates exchanges including the New York Stock Exchange, posted $2.5 billion in net revenue from April through June, with $1.4 billion from exchanges, $597 million from fixed income and data services, and $531 million from mortgage technology. The latter figure is up 4.1% from Q1 2025 and 4.9% higher than the same period last year.

The company also highlighted robust growth in its mortgage technology and servicing businesses in the second quarter.

ICE Mortgage Technology generated $531 million in revenue for the quarter, up 4% from the previous period, and had operating income of $11 million — its first profit in more than two years. The segment shifted from operating losses of $27 million in Q1 2025 and $32 million in Q2 2024.

On the servicing side, ICE generated $220 million from its MSP servicing platform, $187 million from the Encompass loan origination system, $66 million from data and analytics, and $58 million from closing solutions.

Since completing its acquisition of Black Knight nearly two years ago, ICE has grown its Encompass LOS, which now supports both mortgage originations and servicing. The company secured 23 new Encompass customers in the second quarter, including a large regional bank, it reported during its earnings call.

Exchange revenue reached $1.4 billion in the second quarter, generating $1.1 billion in operating income with a 75% margin, or 76% on an adjusted basis. Operating expenses were $353 million, or $337 million adjusted.

Operating income amounted to $1.3 billion with a 51% margin, or $1.6 billion and 61% on an adjusted basis. Expenses fell to $1.2 billion, or $983 million adjusted.

“Through the first half of 2025, we have generated record revenues and record operating income, underscoring the strength and resiliency of our business model,” said Warren Gardiner, the company’s chief financial officer.

“Our strong and growing cash flows enabled us to reinvest in our business, return over $1 billion of capital to stockholders through the first half, as well as successfully achieve our leverage target related to our 2023 acquisition of Black Knight. As we turn to the second half, we remain focused on extending our track record of growth and creating value for our stockholders.”

Future outlook: Servicing revenue, financial guidance

The company ended the quarter with $1 billion in unrestricted cash and $19.2 billion in debt. Operating cash flow for the first half of 2025 reached $2.5 billion, with $2 billion in adjusted free cash flow. ICE returned $1.05 billion to shareholders through $496 million in stock buybacks and $555 million in dividends.

“We are pleased to report our second quarter results, which were highlighted by another quarter of record revenues and double-digit earnings per share growth,” said Jeffrey C. Sprecher, the company’s chair and CEO.

“Amidst a backdrop of continued volatility and uncertainty, our strong second-quarter performance reflects the ‘all-weather’ nature of our business model and the value of our markets, technology, and data services. As we look to the second half of the year and beyond, ICE’s diverse platform is well-positioned to continue to serve our customers, generate growth and create value for our stockholders.”

The company is also continuing to build momentum following its April agreement to bring United Wholesale Mortgage onto its mortgage servicing platform. UWM moved servicing in-house with ICE after rival Rocket Mortgage acquired Mr. Cooper.

While the Rocket-Mr. Cooper merger is expected to cause some attrition later this year, ICE executives said they expect servicing revenue to remain near second-quarter levels.

ICE said it now expects full-year 2025 recurring revenue growth for its exchange business to come in between 4% and 5%. Third-quarter operating expenses are projected at $1.245 billion to $1.255 billion, or $995 million to $1.005 billion on an adjusted basis.