BGC Group Q2 2025 Earnings Report

BGC Group EPS Results

• Actual EPS: $0.31
• Consensus EPS: $0.31
• Beat/Miss: Met Expectations
• One Year Ago EPS: N/A

BGC Group Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

BGC Group Announcement Details

• Quarter: Q2 2025
• Date: 7/31/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, July 31, 2025
• Conference Call Time: 10:00AM ET

BGC Group (NASDAQ:BGC) operates as a financial brokerage and technology company in the United States and internationally. The company offers various brokerage products, such as fixed income, such as government bonds, corporate bonds, and other debt instruments, as well as related interest rate derivatives and credit derivatives; equities, energy and commodities, shipping, insurance, and futures and options. It also provides trade execution, connectivity solutions, brokerage services, clearing, trade compression and other post-trade services, information, and other back-office services to an assortment of financial and non-financial institutions. In addition, the company offers electronic and hybrid brokerage, other financial technology solutions, market data and related information services. Further, its integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and processing of transactions, Hybrid, or in various markets, as well as fully electronic brokerage services in connection with transactions executed either OTC or through an exchange. The company primarily serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments, and corporations, as well as investment firms. BGC Group, Inc. was founded in 1945 and is headquartered in New York, New York.

BGC Group Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: BGC delivered record second-quarter revenues of $784 million, up 42% year-over-year (21% excluding OTC), and achieved broad market-share gains across all ECS and financial markets.
• Positive Sentiment: Fenics platforms posted another strong quarter, with FMX UST average daily volume reaching $68 billion (35% market share) and FX ADV of $15.6 billion, while Fenics growth platforms grew 30% led by PortfolioMatch and Lucera.
• Positive Sentiment: The company launched a $25 million annualized cost-reduction program tied to the OTC acquisition, expected to be completed by year-end and to narrow the margin gap and boost long-term profitability.
• Positive Sentiment: For the third quarter, BGC forecasts revenues of $715–765 million (32% growth year-over-year, ~12% organic) and pretax adjusted earnings of $150–165 million (24% growth), with a full-year tax rate of 10–12%.
• Negative Sentiment: Compensation and non-compensation expenses rose sharply (up ~51% and ~30%, respectively) due mainly to the OTC acquisition, reflecting a higher cost base in the near term.

Presentation

[Operator]

It is now my pleasure to introduce your host, Jason Kryczikis, Head of Investor Relations. Thank you. You may be

[Jason Chryssicas, Head - IR at BGC Group]

Thank you, and hello, everyone. This morning, we issued BGC's second quarter two thousand twenty five financial results, which can be found at ir.bgcg.com. Any historical results provided on today's call compare only the 2025 with the prior year period unless otherwise specified. All references on today's call to historic and record results are to BGC's stand alone financial results, excluding Newmark prior to the spin off in November 2018. We'll be referring to our results on a non GAAP basis, which include the terms adjusted earnings and adjusted EBITDA.

[Jason Chryssicas, Head - IR at BGC Group]

Please refer to today's investor materials on our website for additional details on our financial results and for complete and updated definitions of any non GAAP terms. Reconciliations of these items to the corresponding GAAP results and how, when and why management uses them. The outlook discussed today assumes no material acquisitions or dispositions. Our expectations are subject to change based on various macroeconomic, social, political and or other factors. Information on this call contains forward looking statements, including, without limitation, statements about our economic outlook and business.

[Jason Chryssicas, Head - IR at BGC Group]

These statements are subject to risks and uncertainties, which could cause our actual results to differ from expectations. And except as required by law, we undertake no obligation to update any forward looking statements. For information on factors that could cause actual results to differ from forward looking statements and a complete discussion of the risks and other factors that may impact these forward looking statements, see our SEC filings, including, but not limited to, the risk factors and disclosures within these SEC documents. And with that, I'm now happy to turn the call over to Sean Windiat, Co Chief Executive Officer of BGC Group.

[Sean Windeatt, Co-CEO & COO at BGC Group]

Thank you, Jason. Good morning, and welcome to our second quarter twenty twenty five conference call. With me today are my fellow co chief executive officers, John Aboularaj and JP Obam, along with our chief financial officer, Jason Hoff. We delivered historic results, generating record revenues of $784,000,000, a 42% increase versus last year. Excluding OTC, revenues grew by 21%, surpassing last quarter's record revenues.

[Sean Windeatt, Co-CEO & COO at BGC Group]

We continue to gain market share in the ECS and financial markets with strong growth across all asset classes and geographies. BGC is now the world's largest ECS broker. FMX had its best ever quarter with record volumes and market share across both FMX UST and FX platforms. Total Fenics revenues grew by 19% with Fenics growth platforms increasing by 30% driven by strong double digit growth from FMX, Portfolio Match, and Lucera. Following our most recent acquisition, we launched a cost reduction program, which we expect will be completed by year end and deliver at least $25,000,000 in annualized savings through expense synergies.

[Sean Windeatt, Co-CEO & COO at BGC Group]

These savings will enhance our profitability, drive margins higher, and we expect them to deliver long term shareholder value. These savings will close the gap between OTC's current low teens margin and BGC's current margin. And with that, I'd like to turn the call over to John to go over the quarterly results of the business in more detail. Thank you.

[John Abularrage, Co - CEO at BGC Group]

As Sean mentioned, we registered record quarterly results, reflecting significant growth across every region and all asset classes. ECS revenues grew by a 122.2% to a record $261,600,000, driven by OTC and strong organic growth across the energy complex. Excluding OTC, ECS revenues grew by 27% versus last year. Our rates revenues increased by 20.8% to $200,600,000, reflecting higher volumes across all major interest rate products. Foreign exchange revenues were up 21.9% to a $108,500,000 due to strong growth in FX options and emerging market currencies.

[John Abularrage, Co - CEO at BGC Group]

Credit revenues increased by 8.5% to 75,300,000, driven by higher US and emerging market credit volumes. Our equities revenues grew by 43.8% to $73,900,000, driven by all major equities products, with particular strength across EMEA and Americas due to higher volatility and market share gains. Data network and post trade revenues increased by 15.1% to $35,500,000. This growth was primarily driven by Lucera and Pfenex market data, partly offset by lower post trade revenues due to the sale of our Capitalab business in the fourth quarter. Excluding Capitalabs, revenues grew by more than 20%.

[John Abularrage, Co - CEO at BGC Group]

Now turning to Fenics. In the second quarter, Fenics revenues improved by 18.6% to a $162,900,000. Fenics Markets reported revenues of a $134,100,000, an increase of 16.5%. This growth was primarily driven by higher electronic trading volumes and Fenics Market data. Fenics Growth Platforms generated revenues of $28,700,000, a 29.6% increase, primarily driven by FMX, PortfolioMatch, and Lucera.

[John Abularrage, Co - CEO at BGC Group]

Excluding Capital Lab, Fenics growth platforms grew by approximately 38%. FMX UST generated record average daily volume of $68,000,000,000 in the second quarter, a 45% increase compared to last year. FMX continues to see strong support from its equity partners who have helped drive market share to more than 35% for the second quarter, up from 33% last quarter and 30% a year ago. FMX FX nearly doubled its ADV to a record $15,600,000,000 in the second quarter, driven by support from FMX's equity partners as well as the addition of new products and participants. FMX futures exchange successfully launched US treasury futures in May 2025 and continued to scale its SOFR futures ADV and open interest to record levels during the quarter.

[John Abularrage, Co - CEO at BGC Group]

SOFR average daily open interest increased sequentially by 73% in the second quarter, and July's open interest has more than doubled from those levels. Portfolio match ADV nearly doubled, reflecting market share gains across The US and EMEA credit markets. Portfolio Match's strong growth was driven by new clients, increased distribution, and deepening connectivity with large systematic traders. Lucero revenues grew by more than 40%, driven by new clients and product launches. And with that, I'd now like to turn the call over to Jason.

[Jason Hauf, CFO at BGC Group]

Thank you, John, and hello, everyone. EGC generated second quarter revenues of $784,000,000 reflecting growth across all of our geographies. EMEA revenues increased by 50.3%, Americas revenues increased by 40.3%, and Asia Pacific revenues increased by 17.4%. Turning to expenses.

[Jason Hauf, CFO at BGC Group]

Compensation and employee benefits under GAAP and for adjusted earnings increased by fifty three point one percent and fifty one point four percent, respectively, due to the acquisition of OTC and higher commissionable revenues during the period. Noncompensation expenses under GAAP and adjusted earnings increased by 30.529% respectively, also driven by the acquisition of OTC. Moving on to earnings. Our pretax adjusted earnings grew by 38% to a record $173,600,000. Post tax adjusted earnings increased by 34% to a record $153,700,000.

[Jason Hauf, CFO at BGC Group]

Post tax adjusted earnings per share improved by 34.8% to an all time high of 31¢ per share. And our adjusted EBITDA increased by 31.4% to $213,300,000. Turning to share count. BGC's fully diluted weighted average share count for adjusted earnings was 500,100,000 shares during the period, a 0.3% decrease compared to the 2025 and a 0.7% increase compared to a year ago. During the quarter, we repurchased more than 16,000,000 shares, of which 8,000,000 are reflected in our weighted average share count this quarter.

[Jason Hauf, CFO at BGC Group]

The full impact of these share repurchases will be captured in the third quarter. We expect our share count to be lower in the third quarter and at year end, assuming no extraordinary transactions or events. As of June 30, our liquidity was $965,900,000 compared with $897,800,000 at year end 02/2024. With that, I'd like to turn the call back to Sean to go over our third quarter outlook.

[Sean Windeatt, Co-CEO & COO at BGC Group]

Thank you, Jason. I'm pleased to provide the following guidance for the third quarter two thousand twenty five. We expect to generate total revenues of between 715 and $765,000,000 as compared to $561,100,000 in the 2024, which at the midpoint of our guidance would represent approximately 32% revenue growth. Excluding OTC, we expect third quarter revenues to grow around 12% at the midpoint. We anticipate pretax adjusted earnings to be in the range of 150 to $165,000,000 versus $126,700,000 last year, which at the midpoint of guidance would represent an approximately 24% earnings growth.

[Sean Windeatt, Co-CEO & COO at BGC Group]

And we expect our adjusted earnings tax rate to be between ten percent and twelve percent for the full year 02/2025. Just before I hand over operator for questions, I'd like to pass back over to John for a few comments.

[John Abularrage, Co - CEO at BGC Group]

Thanks, Sean. Before we begin the q and a, we just wanna take a moment to acknowledge the tragic shooting that occurred in Midtown Manhattan on Monday night, just a few blocks from one of our offices. On behalf of my co CEOs and our entire BGC family and as a native New Yorker myself, I wanna express our deepest sympathies to the victims' families and all those affected by the senseless act of violence. We also wanna thank the NYPD, the first responders, and the building security and staff who work hard every day to keep us all safe. Thank you.

[Sean Windeatt, Co-CEO & COO at BGC Group]

Thanks, John. And, operator, with that, we'd like to open the call for questions.

[Operator]

Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in a question queue. You may press 2 to remove yourself from the queue.

[Operator]

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from Patrick Molley with Piper Sandler. Please proceed.

[Patrick Moley, Director & Senior Research Aanalyst at Piper Sandler Companies]

Yes. Good morning. Thanks for taking the question, and congrats on on a strong quarter. So revenue growth, pretty impressive, over 21 year over year organic. You're integrated this acquisition.

[Patrick Moley, Director & Senior Research Aanalyst at Piper Sandler Companies]

Maybe just thinking about the whole business and where things shake out, how do you view the growth algorithm from here? You said that the third quarter revenues are expected to grow 12% organic. You're you're putting in this expense reduction program that's gonna finish up in the back half of the year. How should we think about the growth algorithm of the company and the margin trajectory from here? Thanks.

[Sean Windeatt, Co-CEO & COO at BGC Group]

Yeah. Morning, Patrick. So I think I think the easiest way to describe it is so we so we acquired OTC. We've we've owned it now for for three months at or just over three months now. But we we said that it had margins of in the low teens.

[Sean Windeatt, Co-CEO & COO at BGC Group]

So if you actually take out if you take out the OTC acquisition, nothing changed. Great gearing, the revenue growth of 21%, and the and pretax AE at 26, 27%. So nothing has changed there. But only three, three and a half months into into the transaction, what we said we would do last quarter, is we said we will we'll shrink that margin. We'll we'll we'll shrink the gap, should I say, between BGC's margin and OTC's margin.

[Sean Windeatt, Co-CEO & COO at BGC Group]

And, we've we've embarked on our cost reduction program, $25,000,000 cost reduction program, which which will have completed by the end of the year. So you'll see that benefit in 02/1926. So that's just nine months after acquisition. And if you think about it, Patrick, you took 6 and a quarter million, one quarter of that 25,000,000, you would bridge the gap in in earnings from the group's earnings to that of OTC from 13 all the way up to 19 and close to 20. Right?

[Sean Windeatt, Co-CEO & COO at BGC Group]

So it is simply the fact that that, you know, we bought the second largest acquisition this company has ever done, and and we're three and a half months into it. We'll integrate it within those in those nine months and generate those synergies.

[Patrick Moley, Director & Senior Research Aanalyst at Piper Sandler Companies]

Alright. Thanks for that color. And then just as a follow-up, you spoke in your prepared remarks about the strength that you're seeing across FMX. Maybe on the futures side of it, in particular, could you just elaborate on how you're feeling about that business, the traction you're seeing there and where you're at in terms of some of the FCM and partner onboards that you're still waiting for? Thanks.

[JP Aubin, Co - CEO at BGC Group]

Hey, Patrick. JP here. We are very, very happy where we are today. As John mentioned earlier, we have record volume on software and increasing open interest ahead with our expectation. Also, along with growing software product, volumes, and and open interest, we work every day with our clients.

[JP Aubin, Co - CEO at BGC Group]

It's remain our main it's it's our main priority. We're now at the end of the connectivity process with our equity partners, which would allow them to engage with the platform in a meaningful way successfully. I would like to come back on two footprints we have on on futures volumes. Our UST market share is now 35% from thirty three and thirty percent two quarters ago. Success number one.

[JP Aubin, Co - CEO at BGC Group]

Our software volume and open interest, I just talk about it, are up. Success number two. So as UST and software volume and open interest continue to scale, we do expect attention to shift to USD futures.

[John Abularrage, Co - CEO at BGC Group]

Hey, Patrick. It's John. Just real quickly on the SCM. So we're at the nine that we had mentioned, before, and I think, you know, I'm pretty comfortable staying By year end, we'll have 12 on, which will give us, you know, the vast majority of customer assets, you know, once that's done.

[John Abularrage, Co - CEO at BGC Group]

It's just a timing issue. You know? And, again, we'll have the 12 by the end the year, which will give us the vast majority of the market. So completely comfortable with where we are with the FCMs as well.

[Patrick Moley, Director & Senior Research Aanalyst at Piper Sandler Companies]

Okay. Thanks for that. That's that's it for me. Congrats on the quarter again.

[John Abularrage, Co - CEO at BGC Group]

Thank you.

[JP Aubin, Co - CEO at BGC Group]

You.

[Operator]

The next question comes from Eli Aboun with Bank of America. Please proceed.

[Eli Abboud, Equity Research Analyst at Bank of America]

Good morning. Thanks for taking the question. So it seems like the ramp of the two and five year treasury futures has been tracking a little bit slower than than the ramp for SOFR back in September. So I was wondering if if there are any additional complexities or or challenges with treasury futures that you did not have to grapple with with SOFR that that are worth highlighting?

[John Abularrage, Co - CEO at BGC Group]

Hey, Eli. It's John. No is the answer. You know, I think SOFR launched first. SOFR got up and running to where, you know, it is now with nearly 40,000 open interest a day.

[John Abularrage, Co - CEO at BGC Group]

We're happy with that. We're happy with how, you know, the interest in UST futures is going. We obviously get the benefit from seeing the work that's going on in the background. There's no additional impediments or speed bumps, And I think, you know, you'll see US treasury futures, you know, follow the success of SOFR, which follow the success of the cash platform. So, you know, very very comfortable with where we are.

[Eli Abboud, Equity Research Analyst at Bank of America]

Got it. And I think you just mentioned that there are nine FCMs connected to FMX today. Can you give us any insight into how many have open interest on the platform? And and for those that are connected but not actively trading, what's the cause of the holdup?

[John Abularrage, Co - CEO at BGC Group]

Right. So I I can't break them out for obvious reasons, but I guess what I would say to that is that you can assume that, you know, all or nearly all, you know, are there and have open interest on the platform, and there is no holdup. It's just a matter of, you know, growing it, you know, as we go forward.

[Eli Abboud, Equity Research Analyst at Bank of America]

Got it. And your FX business has been a a success story from the first half of the year. Obviously, there's been some strong cyclical tailwinds there related to the global trade disputes. I was wondering if you could peel back some of those temporary tailwinds and give us any color on to what degree you're seeing structural growth in that complex?

[Sean Windeatt, Co-CEO & COO at BGC Group]

Yeah. Look. I I think thanks. I I I think, really, it's part it's part of the the market healing. You know, it started with rates and then it goes to FX.

[Sean Windeatt, Co-CEO & COO at BGC Group]

And now for the first time this quarter, you've seen growth in in all of our asset classes. Remember, our our FX business, historically, is an option business, options were lower. You know, the FX option volumes were lower in the, in the early, February. Actually, they've just they've they've now come back to normalized levels, I would say. Yes.

[Sean Windeatt, Co-CEO & COO at BGC Group]

You had a you had a spike in volatility in April, but there's been nothing nothing special about the other months of this year. So it's our it's our strong multi brand platform, starting in Asia, going into the into, into in The UK, and then and then into The US. And maybe in addition in addition, we've obviously seen, you know, volumes in our FMX FX platform grow, and they've grown, you know, four to five times the growth of our peer platforms. We we probably don't call that out enough, but but incredibly happy with both the voice hybrid and the FMX piece of the FX business.

[Eli Abboud, Equity Research Analyst at Bank of America]

Got it. And and then the last one for me, sticking on your FX business, it looks like there's been several quarters here where the voice portion of that business has outperformed your electronic franchise. I know the long term vision for all of your businesses is for them to consist of a higher proportion of electronic revenues over time. So so can you help us make sense of some of those recent trends?

[Sean Windeatt, Co-CEO & COO at BGC Group]

Definitely. So so remember, yeah, outside outside of of equities in ECS, in terms of rates, credit, and foreign exchange, our clients have the choice to trade either voice or electronic. And and we have the platforms that they can do, if they wanted to, virtually all of their business electronically. But the key is is their choice. And I think as I just mentioned, for example, in the options in the options space, as we've been returning to to what I would call normal levels of volatility, their clients have clients have have opted during this significant growth period again back to normality to execute more voice than electronic.

[Sean Windeatt, Co-CEO & COO at BGC Group]

You know, my or our gut feeling is, you know, we're happy for our clients to trade in whichever whichever method they choose. I would expect I would expect that trend to go slightly more electronic again over time now that the market has stabilized.

[Eli Abboud, Equity Research Analyst at Bank of America]

Got it. Thanks for taking the questions.

[Operator]

Thank you. At this time, I would like to turn the call back to mister Windia for closing remarks.

[Sean Windeatt, Co-CEO & COO at BGC Group]

Just have to say thanks, everybody, for taking part in our conference call, and have a a great summer and speak to you all again very soon. Thank you.

[Operator]

This does concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have

Participants

Executives

• Jason Chryssicas, Head - IR
• Sean Windeatt, Co-CEO & COO
• John Abularrage, Co - CEO
• Jason Hauf, CFO
• JP Aubin, Co - CEO

Analysts

• Patrick Moley, Director & Senior Research Aanalyst at Piper Sandler Companies
• Eli Abboud, Equity Research Analyst at Bank of America