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01/11 03:42
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with record volumes and significant revenue growth across regions, bolstered by the acquisition of OTC. Despite increased expenses, the company anticipates cost reductions and synergies. The Q&A highlights optimism about FMX growth and FX business expansion. Although some management responses were vague, the overall sentiment is positive, supported by optimistic guidance and strategic growth initiatives. Given the company's market cap of $4 billion, the stock price is likely to see a moderate positive reaction over the next two weeks.
Revenue $784 million, a 42% increase year-over-year. Growth attributed to market share gains in ECS and financial markets, and strong growth across all asset classes and geographies.
ECS Revenues $261.6 million, a 122.2% increase year-over-year. Growth driven by OTC and strong organic growth across the energy complex.
Rates Revenues $200.6 million, a 20.8% increase year-over-year. Growth due to higher volumes across all major interest rate products.
Foreign Exchange Revenues $108.5 million, a 21.9% increase year-over-year. Growth driven by strong growth in FX options and emerging market currencies.
Credit Revenues $75.3 million, an 8.5% increase year-over-year. Growth driven by higher U.S. and emerging market credit volumes.
Equities Revenues $73.9 million, a 43.8% increase year-over-year. Growth driven by all major equities products, with particular strength across EMEA and Americas due to higher volatility and market share gains.
Data Network and Post-Trade Revenues $35.5 million, a 15.1% increase year-over-year. Growth driven by Lucera and Fenics Market Data, partly offset by lower post-trade revenues due to the sale of Capitalab business in Q4 2024. Excluding Capitalab, revenues grew by more than 20%.
Fenics Revenues $162.9 million, an 18.6% increase year-over-year. Growth driven by higher electronic trading volumes and Fenics Market Data.
Fenics Growth Platforms Revenues $28.7 million, a 29.6% increase year-over-year. Growth driven by FMX, portfolio match, and Lucera. Excluding Capitalab, growth was approximately 38%.
FMX UST Average Daily Volume $68 billion, a 45% increase year-over-year. Growth driven by strong support from equity partners.
FMX FX Average Daily Volume $15.6 billion, nearly doubled year-over-year. Growth driven by support from equity partners and addition of new products and participants.
SOFR Average Daily Open Interest Increased sequentially by 73% in Q2 2025. July's open interest more than doubled from Q2 levels.
Portfolio Match Average Daily Volume Nearly doubled year-over-year. Growth driven by market share gains across U.S. and EMEA credit markets, new clients, increased distribution, and deepening connectivity with large systematic traders.
Lucera Revenues Grew by more than 40% year-over-year. Growth driven by new clients and product launches.
EMEA Revenues Increased by 50.3% year-over-year. Growth attributed to strong performance across the region.
Americas Revenues Increased by 40.3% year-over-year. Growth attributed to strong performance across the region.
Asia Pacific Revenues Increased by 17.4% year-over-year. Growth attributed to strong performance across the region.
Compensation and Employee Benefits Expenses Increased by 53.1% under GAAP and 51.4% for adjusted earnings year-over-year. Increase driven by the acquisition of OTC and higher commissionable revenues.
Non-Compensation Expenses Increased by 30.5% under GAAP and 29% for adjusted earnings year-over-year. Increase driven by the acquisition of OTC.
Pretax Adjusted Earnings $173.6 million, a 38% increase year-over-year. Growth attributed to overall revenue growth and operational efficiencies.
Post-Tax Adjusted Earnings $153.7 million, a 34% increase year-over-year. Growth attributed to overall revenue growth and operational efficiencies.
Post-Tax Adjusted Earnings Per Share $0.31 per share, a 34.8% increase year-over-year. Growth attributed to overall revenue growth and operational efficiencies.
Adjusted EBITDA $213.3 million, a 31.4% increase year-over-year. Growth attributed to overall revenue growth and operational efficiencies.
Liquidity $965.9 million as of June 30, 2025, compared to $897.8 million at year-end 2024. Increase attributed to operational performance and cash flow management.
FMX Futures Exchange: Successfully launched U.S. Treasury Futures in May 2025 and scaled SOFR Futures ADV and open interest to record levels during the quarter.
Lucera: Revenues grew by more than 40%, driven by new clients and product launches.
ECS and financial markets: Gained market share with strong growth across all asset classes and geographies. BGC is now the world's largest ECS broker.
FMX UST and FX platforms: Achieved record volumes and market share, with FMX FX nearly doubling its ADV to a record $15.6 billion in the second quarter.
Cost reduction program: Expected to deliver at least $25 million in annualized savings through expense synergies, enhancing profitability and driving margins higher.
Acquisition of OTC: Contributed to significant revenue growth and higher commissionable revenues, impacting compensation and non-compensation expenses.
Macroeconomic and Political Factors: The company's outlook assumes no material acquisitions or dispositions, but it is subject to change based on various macroeconomic, social, political, and other factors. This introduces uncertainty in forecasting and planning.
Cost Management: The company launched a cost reduction program to achieve $25 million in annualized savings. However, the success of this program is critical to enhancing profitability and closing the margin gap between OTC and BGC's current margin.
Integration of Acquisitions: The acquisition of OTC has led to increased compensation and non-compensation expenses. Effective integration and realization of synergies are essential to avoid financial strain.
Regulatory and Compliance Risks: Forward-looking statements are subject to risks and uncertainties, including regulatory hurdles that could impact actual results.
Market Volatility: Higher volatility in equities and other markets has driven revenue growth, but it also introduces risks related to market stability and predictability.
Dependence on Equity Partners: FMX's growth and market share gains are partly driven by equity partners. Over-reliance on these partners could pose risks if their support diminishes.
Geopolitical Risks: The company operates across multiple geographies, including EMEA, Americas, and Asia Pacific, exposing it to geopolitical risks that could impact operations and revenues.
Third Quarter 2025 Revenue Guidance: BGC expects total revenues to be between $715 million and $765 million, representing approximately 32% revenue growth at the midpoint compared to the third quarter of 2024. Excluding OTC, third quarter revenues are expected to grow around 12% at the midpoint.
Third Quarter 2025 Pretax Adjusted Earnings Guidance: Pretax adjusted earnings are anticipated to range between $150 million and $165 million, representing approximately 24% growth at the midpoint compared to the prior year.
Full Year 2025 Adjusted Earnings Tax Rate: The adjusted earnings tax rate is expected to be between 10% and 12% for the full year 2025.
Share Repurchase: During the quarter, BGC repurchased more than 16 million shares, of which $8 million are reflected in the weighted average share count this quarter. The full impact of these share repurchases will be captured in the third quarter. The company expects its share count to be lower in the third quarter and at year-end, assuming no extraordinary transactions or events.
The earnings call reveals strong financial performance, with significant revenue growth across various sectors and regions. The company exceeded its revenue guidance and achieved strong performance in ECS and other segments. Shareholder returns are boosted by a $400 million share repurchase plan. Despite increased expenses, the company's liquidity remains robust. The Q&A highlighted strategic growth in ECS, FMX, and electronic credit, with management addressing analyst concerns positively. The market cap indicates a moderate reaction, suggesting a positive stock price movement of 2% to 8% over the next two weeks.
The earnings call reveals strong financial performance with record volumes and significant revenue growth across regions, bolstered by the acquisition of OTC. Despite increased expenses, the company anticipates cost reductions and synergies. The Q&A highlights optimism about FMX growth and FX business expansion. Although some management responses were vague, the overall sentiment is positive, supported by optimistic guidance and strategic growth initiatives. Given the company's market cap of $4 billion, the stock price is likely to see a moderate positive reaction over the next two weeks.
The earnings call highlights strong financial performance with a 15% revenue increase and a 16% EPS growth. Positive guidance with expected 30% earnings growth and a significant share repurchase program further bolster sentiment. While there are risks like market volatility and competitive pressures, the company’s strategic acquisitions and robust growth in key revenue segments provide a positive outlook. The market cap suggests moderate sensitivity to these factors, leading to a forecasted positive stock price movement.
The earnings call presented strong financial results with significant revenue and earnings growth. Despite some competitive and regulatory risks, the guidance was optimistic with revenue and earnings growth projections. The Q&A revealed positive sentiment from analysts on margin expansion and acquisition contributions. Although there was no shareholder return plan, the strong financial performance, optimistic guidance, and positive analyst sentiment suggest a positive stock price movement over the next two weeks.
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