BGC Group, Inc Q1 FY2026 earnings call

BGC delivered record revenues of $955.5 million, a 43.8% increase versus last year. Growth across all asset classes and geographies. ECS revenues more than doubled. FMX posted best-ever quarter with UST ADV growth. Built on $25 million cost reduction program, now expecting $35 million annualized cost savings. Iran conflict drove elevated volatility but record results driven primarily by underlying business. Fenix revenues increased, FMX UST had record quarterly ADV and market share gains. Data, network, and post-trade revenues grew. Sold CASE financial business. Compensation and employee benefits and non-compensation expenses increased but cost reduction plan progressing.

Revenues increased 44% to $955 million, with growth across every asset class and geography. Excluding OTC, revenues grew 23% to $817 million. ECS revenues more than doubled to $330 million. FMX posted its best-ever quarter, with UST ADV growing 51% to a record $90 billion, representing 41% market share. Total brokerage revenues grew by 46.7% to $895.8 million. ECS revenues grew by 120.1% to $330 million. Rates revenues increased 27.5% to $256.2 million. Foreign exchange revenues were up 19.1% to $131 million. Credit revenues increased by 8.2% to $94.1 million. Equities grew by 34.3% to $84.5 million. Data, network, and post-trade revenues grew by 23.2% to $34.5 million. Fenix revenues increased by 19.8% to $206.9 million, with Fenix markets revenues up 20.3% to $176.7 million and Fenix growth platforms revenues up 17.4% to $30.2 million. Compensation and employee benefits under GAAP and for adjusted earnings increased by 57.3% and 51.5% respectively. Non-compensation expenses under GAAP and for adjusted earnings increased by 33.4% and 27.4% respectively. Pre-tax adjusted earnings grew by 44.9% to $232.1 million. Post-tax adjusted earnings increased by 40.6% to $201.1 million. Adjusted EBITDA increased by 26.7% to $253.2 million.

Expects revenues between $785 and $845 million for second quarter 2026, midpoint represents 4% revenue growth and 22% for first half, 13% organically. Anticipates pre-tax adjusted earnings in range of $178 to $196 million, midpoint represents 8% earnings growth for second quarter and 26% for first half. Expect adjusted earnings tax rate between 11% and 14% for full year 2026.

Information contains forward-looking statements subject to risks and uncertainties from macroeconomic, social, political, and other factors. Actual results could differ from expectations due to various factors. See SEC filings for detailed risk factors.

Q: About energy, commodity, and shipping revenues growth structure and ECS revenue run rate post OTC acquisition and geopolitical volatility normalization.

A: Most Q1 growth was normal business, ECS growth to continue with OTC integration complete.

Q: Bridging 31% organic revenue growth in 1Q26 with 4% guide for 2Q26.

A: Considered Iran conflict impact in Q1, comparison to last year's April tariffs, and business changes like CASE sale and logistics closure.

Q: Listed revenues outpacing exchange volumes.

A: BGC acts as exchange with voice, hybrid, electronic options, market share gains from acquisitions and volume.

Q: Decline in FMX futures open interest.

A: Reflects risk-off mentality, volumes starting to recover, market share expected to climb back.

Q: New products in FX and fixed income.

A: Lucera growing in rates and other asset classes with connectivity expansion, expected to drive incremental growth.