BGC Group, Inc Q4 FY2025 earnings call

• BGC delivered record-breaking revenues in both fourth quarter and full year 2025, with increases of 32% and 30% respectively, driven by double-digit organic growth and acquisition of OTC.
• Achieved strongest annual results in history, revenues approaching $3,000,000,000, EPS grew 24% under GAAP and 19% for adjusted earnings.
• Completed first phase of cost reduction program realizing $25,000,000 of annualized savings in 2026.
• FMX UST had 40% market share, FMX futures exchange saw rapid growth with SOFR futures average daily volumes and open interest increasing.
• Revenues increased from $1,800,000,000 in 2022 to nearly $3,000,000,000 in 2025, adjusted EPS rose by 71%.

BGC delivered record fourth quarter revenues of $756,400,000, a 32.2% increase versus the prior year. Excluding the acquisition of OTC, revenues were $641,900,000, up 12.2%. Total brokerage revenues grew by 34.6% to $694,600,000, driven by growth across all asset classes. ECS revenues grew by 92% to $257,500,000 (excluding OTC, up 10%). Rates revenues increased 16.4% to $197,400,000. Foreign exchange revenues were up 9.8% to $102,800,000. Credit revenues increased by 3% to $64,300,000. Equities grew by 29% to $72,700,000. Data, network and post-trade revenues grew by 14.2% excluding Capitalab. Fenics revenues in the fourth quarter increased by 15.4% to $163,900,000. FMX UST ended 2025 with a 40% market share. FMX futures exchange saw record volumes and open interest. FMX FX ADV increased by 40%. Portfolio Match ADV grew by 68%. Lucera's revenues grew by 24.1%.

• Expect to generate revenues between $860,000,000 and $920,000,000 in 2026, midpoint representing ~34% revenue growth.
• Excluding OTC, expect first quarter 2026 revenues to grow around 15% at midpoint.
• Anticipate pretax adjusted earnings to be in range of $202,000,000 to $222,000,000 in 2026, midpoint representing over 32% earnings growth.
• Expect adjusted earnings tax rate to be between 11% and 14% for full year 2026.

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

Q: Wanted to ask about the first quarter guide and organic revenue growth. How much of the step-up in growth is driven by strong trading environment year-to-date versus sustainable fundamental growth drivers?

A: As said, core revenue grown 13%, 12%, 15% each year. Driven by market regrowth, gaining market share, and hirings in rates and foreign exchange.

Q: Just wondering how you are thinking about the portfolio of businesses today within Fenics. What drove the decision to sell KACE?

A: Sold lower-growth businesses for shareholder value. Both businesses had revenues around $27,000,000 and sold for ~$165,000,000. Allows focus on higher-growth parts of Fenics portfolio like Lucera and Portfolio Match.

Q: About ECS market share and growth. Extent of new logo growth in energy space?

A: Seeing new logo growth, benefit of new players entering buy side. Market environment good, continuing to expand client base and gain market share.

Q: About FMX futures revenue timetable and Treasury futures update. Timetable for recognizing revenue related to FMX futures? Update on Treasury futures?

A: Changes in fee structure beginning of summer. Treasury futures will follow success of SOFR, focusing on SOFR currently.

Q: About launching additional fixed income products in 2026 within Lucera. What those could be and how additive to growth?

A: Lucera moving into credit markets. Hard to define number, but potential to be third of revenue if successful in credit as in FX and rates.