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BGC Group, Inc. (BGC)·Q2 2025 Earnings Summary

Executive Summary

  • Record Q2 revenue of $784.0M (+42.3% YoY) and post-tax adjusted EPS of $0.31; revenue beat S&P Global consensus by ~$16.2M (~2.1%), while adjusted EBITDA of $213.3M was ~2.2% below consensus; EPS matched consensus at $0.31 . Revenue Consensus Mean $767.8M*, EBITDA Consensus Mean $218.0M*, Primary EPS Consensus Mean $0.31*.
  • Fenics revenues rose 18.6% to $162.9M; FMX UST ADV hit a record $68B and CLOB market share exceeded 35% (up from 33% last quarter and 30% a year ago), supporting a structural share gain narrative .
  • Guidance: Q3 2025 revenues $715–$765M and pre-tax adjusted earnings $150–$165M; FY25 adjusted earnings tax rate 10–12% maintained; $0.02 dividend declared payable Sept 3, 2025 .
  • Catalysts: ECS expansion (OTC acquisition) drove ECS revenues +122% YoY to $261.6M; management announced a $25M cost-reduction program to close margin gaps, with synergy benefits expected to be visible in 2026 .

Note: Asterisked values are from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • “We delivered historic results, generating record revenues of $784 million, a 42 percent increase versus last year… Fenics Growth Platforms increasing by 30 percent” .
  • FMX traction: UST ADV reached $68B (+45% YoY) with market share >35%; FMX FX ADV nearly doubled to $15.6B; SOFR futures open interest rose 73% sequentially in Q2 (and more than doubled in July) .
  • Broad-based strength: EMEA +50.3%, Americas +40.3%, APAC +17.4%; asset classes rates +20.8%, FX +21.9%, equities +43.8% .

What Went Wrong

  • Adjusted EBITDA ($213.3M) modestly trailed S&P Global consensus ($218.0M*), suggesting higher compensation/non-comp expense due to OTC integration (+51% comp, +29% non-comp for adjusted earnings) .
  • Voice/electronic mix: management noted clients opted for more voice execution amid volatility; while acceptable near term, it tempers the pace of electronic revenue mix expansion .
  • Data/post-trade growth was partly offset by Capitalab sale; despite >20% ex-Capitalab growth, headline growth in that segment was 15.1% .

Financial Results

Core Financials vs Prior Periods and S&P Global Consensus

MetricQ4 2024Q1 2025Q2 2025Q2 2025 Consensus
Revenue ($USD Millions)$572.3 $664.2 $784.0 $767.8*
Post-tax Adjusted EPS ($)$0.25 $0.29 $0.31 $0.31*
GAAP Diluted EPS ($)$0.05 $0.11 $0.11 N/A
Adjusted EBITDA ($USD Millions)$192.0 $199.8 $213.3 $218.0*

Values with asterisk are from S&P Global.

Segment Breakdown (YoY)

Segment ($USD Millions)Q2 2024Q2 2025
ECS (Energy, Commodities & Shipping)$117.7 $261.6
Rates$166.0 $200.6
Foreign Exchange$88.9 $108.5
Credit$69.4 $75.3
Equities$51.4 $73.9
Total Brokerage Revenues$493.5 $719.9
Data, Network & Post-trade$30.8 $35.5
Interest, Dividends & Other$26.4 $28.6
Total Revenues$550.8 $784.0

KPIs

KPIQ2 2024Q1 2025Q2 2025
FMX UST ADV ($USD Billions)~$52 >$60 $68
FMX UST CLOB Market Share (%)~30 ~33 >35
FMX FX ADV ($USD Billions)>$11 $14.5 $15.6
SOFR Futures Open Interest (Seq. change)N/AN/A+73%
Liquidity ($USD Millions)$897.8 (YE24) $1,146.1 (Q1) $965.9 (Q2)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenues ($USD Millions)Q3 2025N/A$715–$765 New
Pre-tax Adjusted Earnings ($USD Millions)Q3 2025N/A$150–$165 New
Adjusted Earnings Tax Rate (%)FY 202510–12% 10–12% Maintained
Dividend per Share ($)Q3 2025 (declared)$0.02 (Q1/Q4) $0.02 (declared July 30; payable Sept 3) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
FMX UST growth & market shareQ4: UST ADV >$52B; ~30% share . Q1: ADV >$60B; ~33% share .UST ADV $68B; >35% share .Accelerating
FMX Futures Exchange & FCM onboardingQ1: UST futures launch scheduled May; onboarding >10 FCMs; partners connected (BofA, Barclays, Citi) .UST futures launched (May); 9 FCMs connected; targeting 12 by YE for vast majority of customer assets .Scaling
FX performance & execution mixQ4: FX +21.3% YoY . Q1: FX +31.0% YoY .FX +21.9% YoY; voice favored during normalization; electronic mix expected to rise over time .Normalizing; electronic mix to rise
ECS expansion via OTC acquisitionQ1: OTC deal closed Apr 1 for $325M; ~>$400M FY24 revenue; immediately accretive .ECS +122.2% YoY; excluding OTC, ECS +27% YoY; $25M annualized cost synergies program initiated .Integration underway; margin uplift expected
Regional revenue growthQ4: Americas +17.1%, APAC +10.2%, EMEA +6.5% . Q1: Americas +23.3%, EMEA +12.2%, APAC +2.4% .EMEA +50.3%, Americas +40.3%, APAC +17.4% .Broad-based acceleration

Management Commentary

  • “BGC is now the world's largest ECS broker. FMX had its best ever quarter… Fenics Growth Platforms increasing by 30 percent… cost reduction program… at least $25 million in annualized savings” — Sean Windeatt .
  • “ECS revenues grew by 122.2%… Rates +20.8%… FX +21.9%… Equities +43.8%… Fenics Growth Platforms +29.6%… FMX UST ADV $68B; market share >35%” — John Abularrage .
  • “Pre-tax adjusted earnings grew 38% to $173.6M… post-tax adjusted EPS $0.31… adjusted EBITDA $213.3M… Liquidity $965.9M” — Jason Hauf .
  • Q3 outlook: revenues $715–$765M; pre-tax adjusted earnings $150–$165M; FY25 adjusted earnings tax rate 10–12% — Sean Windeatt .

Q&A Highlights

  • Margin trajectory and synergies: Management reiterated the $25M expense reduction program to close OTC’s low-teens margin gap; benefits expected by 2026 as integration completes within ~9 months .
  • FMX Futures ramp and FCMs: Nine FCMs are connected; management targets 12 by YE to capture the vast majority of customer assets; UST futures expected to follow SOFR’s success .
  • FX structure vs cyclical tailwinds: FX options volumes returned to normalized levels; structural growth across regions and FMX FX platform noted, with volumes 4–5x peers’ growth .
  • Execution mix: Clients chose more voice during volatility; management expects electronic share to rise as markets stabilize .

Estimates Context

MetricQ2 2025 ActualQ2 2025 S&P Global ConsensusSurprise
Revenue ($USD Millions)$784.0 $767.8*+$16.2 (beat)
Post-tax Adjusted EPS ($)$0.31 $0.31*In-line
Adjusted EBITDA ($USD Millions)$213.3 $218.0*−$4.7 (miss)
Primary EPS — # of EstimatesN/A2*N/A
Revenue — # of EstimatesN/A1*N/A

Values marked with asterisk are from S&P Global.

Key Takeaways for Investors

  • Top-line momentum is robust and diversified: revenue +42.3% YoY; ECS +122.2% (OTC-driven) with organic ECS +27% YoY ex-OTC; broad strength across rates, FX, equities, and regions .
  • Execution and market share gains are tangible: FMX UST ADV at $68B and share >35% underscores competitive positioning; FMX FX ADV nearly doubled; SOFR OI up 73% sequentially in Q2 .
  • Profitability path: near-term integration costs lifted operating expenses; $25M cost-synergy program is in flight to improve margins, with benefits expected to be visible next year .
  • Prints vs consensus: revenue beat (~2.1%), EPS in-line, EBITDA modest miss — watch revisions as integration advances and FMX futures scale; consensus estimate depth (EPS n=2, revenue n=1) suggests limited coverage breadth* .
  • Guidance sets tone: Q3 revenue $715–$765M and pre-tax adjusted earnings $150–$165M; FY25 adjusted earnings tax rate 10–12% maintained .
  • Trading implications: positive revenue breadth and FMX metrics are likely stock-supportive; any updates on FCM onboarding to 12 by YE and UST futures traction could be incremental catalysts .
  • Medium-term thesis: continued electronic penetration, FMX ecosystem expansion (cash treasuries, FX, futures), and OTC integration synergies underpin margin expansion and earnings durability .

Additional Notes on Non-GAAP Adjustments

  • Pre-tax adjustments totaled $98.3M, primarily equity-based compensation ($83.9M), amortization of intangibles ($9.8M), with other adjustments netting out in “other income (losses)” .
  • Post-tax adjusted earnings reached $153.7M and post-tax adjusted EPS $0.31, with provision for taxes on adjusted earnings at $21.2M .

Dividend

  • Quarterly qualified cash dividend of $0.02 per share payable Sept 3, 2025; record date Aug 20, 2025; consistent with prior quarters .

Values marked with asterisk are from S&P Global.