BGC

Core Business Growth & Market Position

• Broad-based revenue growth across all asset classes, with Q2 2026 revenue a new record and first half 2026 revenue the highest H1 total in company history
• BGC has delivered double-digit annual revenue growth every year since 2022, following the return of positive interest rates
• FMX (Fenics Markets Exchange) achieved new all-time market share highs: U.S. Treasury (UST) spot market share reached 42% in Q2 2026, up from 41% last quarter and 35% YoY, with record UST ADV of $79.4 billion (+17% YoY)
• FMX futures volumes grew more than 16-fold YoY, U.S. Treasury futures open interest increased to over 140,000 contracts from ~22,000 a year prior, and FMX FX ADV grew 16% YoY to $18 billion with continued market share gains
• PortfolioMatch credit ADV grew 82% YoY to a new quarterly record of $431 million, outpacing broader credit market growth

Strategic New Initiatives & Partnerships

• Announced a new partnership with global sports platform Fanatics to build a joint prediction market ecosystem serving retail and institutional participants
  • Combines BGC's institutional client network and market data capabilities with Fanatics' database of over 100 million retail customers to create new predictive data products (complementing BGC's existing backward-looking data offerings)
  • BGC receives upfront consideration, performance-based earnouts, and a license to exchange data; the partnership is separate from BGC's wholly owned, CFTC-registered FMX DCM
• Launched BGC Compute Infrastructure Markets, a new business focused on developing a secondary market for compute and memory capacity, as a logical extension of BGC's existing power commodity brokerage business
• Lucera, Fenics' real-time trading infrastructure business, grew revenue 15% YoY
• Full tenors of U.S. Treasury futures contracts will be listed on FMX starting August 3, 2026, to support further volume and open interest growth

Capital & Operational Updates

• BGC's fully diluted weighted average share count was flat quarter-over-quarter and down 1% YoY, at 495.4 million shares
• As of Q2 end 2026, liquidity totaled $861.4 million, down from $979.1 million at year-end 2025
• BGC received credit rating upgrades from Kroll (to BBB+) and JCRA (to A-) in recognition of sustained strong business performance

• Full year 2026 adjusted earnings tax rate is expected to be between 11% and 14%
• Q3 2026 revenue guidance is set at $775 million to $835 million, which represents ~9% YoY growth at the midpoint (compared to $737 million in Q3 2025)
• Q3 2026 pretax adjusted earnings guidance is $172 million to $190 million, representing 17% YoY growth at the midpoint (compared to $155.1 million in Q3 2025)
• At the midpoint of guidance, 2026 first nine month revenue growth is projected at 19% YoY, and first nine month pretax adjusted earnings growth is projected at 24% YoY
• No formal revenue guidance has been provided for the newly launched compute infrastructure market, as it remains in an early, nascent stage

Total company revenue for Q2 2026 was $845.5 million, +7.8% year-over-year (YoY), with first half 2026 revenue hitting $1.8 billion, +24% YoY. Brokerage revenues totaled $771.4 million, +7.2% YoY:

• Energy, Commodities & Shipping (ECS): $275.5 million, +5.3% YoY (32.6% of total brokerage revenue)
• Rates: $221.9 million, +10.6% YoY (28.8% of total brokerage revenue)
• Foreign Exchange: $118.7 million, +9.4% YoY (15.4% of total brokerage revenue)
• Credit: $79.3 million, +5.4% YoY (10.3% of total brokerage revenue)
• Equities: $76.0 million, +2.8% YoY (9.9% of total brokerage revenue)
• Data, Network, and Post-Trade: $36.7 million, +18.6% YoY (4.8% of total brokerage revenue, ex divested Case business)

Fenics segment total revenue: $186.2 million, +14.3% YoY:

• Fenics Markets: $152.8 million, +16.5% YoY (ex Case)
• Fenics Growth Platforms: $33.4 million, +22.9% YoY

Geographic performance:

• EMEA: +11.2% YoY revenue growth
• Americas: +6.1% YoY revenue growth
• Asia Pacific: -2.9% YoY revenue decline

Profitability:

• Pretax adjusted earnings: $192.9 million, +11.1% YoY, pretax incremental margin 31.3%
• Post-tax adjusted earnings: $171.0 million, +11.2% YoY
• Adjusted EPS: $0.35, +12.9% YoY
• Adjusted EBITDA: $228.7 million, +7.2% YoY

• Lower oil and refined product volumes in the ECS segment during Q2 2026 due to market disruptions linked to the Strait of Hormuz closure
• Geopolitical tensions are factored into the wide Q3 2026 guidance range, with September (the final month of the quarter) still upcoming at the time of the call
• All forward-looking statements and guidance are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including macroeconomic, social, and political factors; detailed risk factors are outlined in BGC's SEC filings
• The prediction market partnership with Fanatics and new compute infrastructure market are unproven new ventures, with no guarantee of future revenue or growth

Q: Patrick Moley (Piper Sandler) asked for details on the newly launched BGC Compute Infrastructure Markets, including its growth opportunity, monetization model, and when revenues will start to be reflected in financial results.

A: Management explained that the global AI compute market will see ~$1 trillion in CapEx, and no effective market currently exists to hedge related risk. BGC is initially focused on cleared futures, but the biggest opportunity is in OTC markets: cash-settled derivatives for hedging and OTC trades for physical capacity delivery. This is a natural extension of BGC's leading ECS and power brokerage business, with existing top brokers assigned to the initiative and connectivity to major market participants. It is too early to provide revenue guidance, but trading activity will begin relatively soon.

Q: Patrick Moley followed up asking about BGC's multiyear margin outlook, and what is driving the steady year-over-year incremental margin increase.

A: Management confirmed that the accelerating incremental margin expansion reflects the operational gearing BGC has long highlighted, with ~31.3% incremental pretax margin in Q2 and nearly 40% incremental flow-through projected in Q3 2026. This comes from a mix of incremental revenue growth and completed cost savings. Longer term, the high-margin electronic FMX business, once fully scaled, will meaningfully increase overall company margins above current levels, creating a long positive growth runway.

Q: Eli Abboud (Bank of America) asked about the impact of SLR bank reforms on BGC's business, and whether the bank channel is seeing outsized growth.

A: Management noted it is still early, but has already observed stronger activity from banks directly tied to SLR reforms. BGC's strong existing market share with regional and sub-sized banks has allowed it to capture this positive impact across multiple asset classes.

Q: Eli Abboud asked for an update on buy-side client onboarding to FMX, and any obstacles or pushback from this client segment, as well as year-end 3 market share expectations for the exchange.

A: Management reported that buy-side onboarding is accelerating, progressing at least as fast as originally projected, with no major obstacles to adoption. While BGC will not provide a specific numerical target for end-of-year 3 market share, management confirmed market share will be higher than current levels, in line with the original plan for aggressive market share expansion in FMX's third year.

Q: Patrick Moley asked for more details on the Fanatics partnership, including how it came together, strategic rationale, and disclosed economic terms.

A: Management explained that BGC owned an underutilized DCO license that was well-suited for prediction markets, and after evaluating options to maximize shareholder value, was introduced to Fanatics. The partnership is a strategic fit: Fanatics brings over 100 million retail customers (addressing BGC's historic lack of retail reach) while BGC brings its institutional client base and data expertise. The deal includes upfront consideration to BGC, a performance-based earnout tied to exchange volume, and a joint data partnership to develop new predictive datasets, which complement BGC's existing backward-looking data products.