BGC Group, Inc Q3 FY2025 earnings call

• Delivered record third quarter revenues of $737 million, up 31% year-over-year, with revenues excluding OTC at $628 million, up 12%.
• FMX continued to outperform, with SOFR Futures ADV and open interest increasing over threefold, U.S. Treasury market share at 37%.
• $25 million cost reduction program to be completed by year-end, enhancing profitability and margins.
• ECS revenues grew 114% driven by OTC and organic growth; rates, foreign exchange, equities, and other segments also saw growth.

BGC Group delivered record third quarter revenues of $737 million, up 31% from the prior year. ECS revenues grew 114% to $241.6 million, driven by OTC and organic growth. Rates revenues increased 12.1% to $195.3 million. Foreign exchange revenues up 15.9% to $106.7 million. Credit revenues rose 1.6% to $69.1 million. Equities revenues grew 13.2% to $60.4 million. Data Network and Post-Trade revenues grew 11.9% to $34.3 million excluding Capitalab, 5.2% including. Fenics revenues increased 12.7% to $160 million, with Fenics Markets at $134.1 million (+12.5%) and Fenics Growth Platforms at $25.9 million (+24.2% excluding Capitalab, 13.5% including). FMX UST had record average daily volume of $59.4 billion, market share 37%. FMX Futures Exchange saw SOFR ADV and open interest increase over threefold. FMX FX ADV up 44% to $13.1 billion. PortfolioMatch ADV more than doubled. Lucera had double-digit revenue growth.

• Expect fourth quarter 2025 revenues between $720 million and $770 million, representing ~30% growth; excluding OTC, ~11% growth.
• Pretax adjusted earnings expected in range of $152.5 million to $167.5 million, ~24% growth year-over-year.
• Adjusted earnings tax rate expected to be between 10% and 12% for full year 2025.

• Expectations are subject to various macroeconomic, social, political and other factors.
• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from expectations.

Q: In the third quarter, exchange volumes in some asset classes slowed but BGC's results were strong. What allowed BGC to outperform?

A: Growth in ECS sector, hiring of ~150 new brokers driving revenue per head, targeted growth in geographies and asset classes.

Q: Could you elaborate on FMX FCM onboardings and UST Futures growth in 2026?

A: Year 1 of FMX saw launch, record open interest, 11 FCM onboardings; SOFR Futures ADV and open interest up over threefold; for 2026, focus is on shifting attention to U.S. Treasuries after building SOFR momentum.

Q: Walk through strong share growth in FMX cash markets and treasury platform protocols?

A: FMX cash markets saw growth due to hard work over years, further adoption by partners; treasury platform growth from new participant onboarding, with no single protocol being an outsized contributor.

Q: Leverage of Energy segment to cloud and AI, data centers as client channel?

A: Involved in energy procurement through past combination with Newmark, benefiting from Newmark's data center and hyperscaler contacts, affecting energy revenues through procurement.

Q: Electronic credit revenues flat, growth potential?

A: Can grow at similar rates as Tradeweb/MarketAxess, launching new electronic protocols, gaining market share, with electronic offering increasing proportion of credit business leading to faster growth.