Overview
- Intercontinental Exchange reported net income of $816 million, or $1.42 per diluted share, with operating income of $1.17 billion on $2.41 billion in revenue net of transaction costs.
- ICE Mortgage Technology generated $528 million in revenue and $22 million in operating income, including $137 million in transaction revenue, up 12% year over year.
- Growth was led by Encompass and MERS, and the company signed 16 new Encompass clients along with two additions to its MSP servicing platform during the quarter.
- Client changes include Flagstar rolling off in the fourth quarter after Mr. Cooper’s purchase and Pennymac’s transition to Vesta reducing recurring revenue starting in 2028 by roughly half a percentage point.
- AI initiatives are cutting the MSP replatforming timeline roughly in half and introducing tools for underwriting, compliance and borrower self-service, while ICE returned $674 million to shareholders and trimmed leverage to about 2.9x EBITDA as shares dipped around 1% by mid-afternoon.