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    BGC
    Earnings call· Mar 2026(Q1 FY26)

    BGC Group Q1 FY26 earnings call BGC

    May 7, 2026 Source

    Executive summary

    BGC Group Q1 FY26 — Record Revenues and Pretax Earnings

    BGC Group delivered a record first quarter, driven by broad-based growth across asset classes and geographies, with revenues up 44% and pretax adjusted earnings up 44.9%. The company expanded its cost reduction program to $35 million in annualized savings, demonstrating a commitment to efficiency. While Q2 guidance reflects challenging comparisons and a normalization of geopolitical volatility, management remains confident in underlying business strength and continued market share gains, particularly in FMX.

    Highlights

    5

    • Revenues increased 44% to a record $955 million.

    • Pretax adjusted earnings hit an all-time high of $232.1 million, up more than 44.9%.

    • ECS revenues more than doubled, growing 120.1% to $330 million.

    • FMX UST ADV grew 51% to a record $89.7 billion, capturing 41% market share.

    • Cost reduction program expanded to $35 million in annualized savings.

    Concerns

    2

    • Q2 FY26 revenue guidance midpoint implies 4% growth, significantly lower than Q1's 44% growth, due to Q1 geopolitical tailwinds and strong Q2 FY25 comparables.

    • FMX Futures open interest declined quarter-to-date, attributed to a 'risk-off mentality' in the market.

    Guidance & targets

    3
    CategoryTargetConfidence
    Q2 FY26 Revenue
    $785 million to $845 million
    high materiality
    High
    Q2 FY26 Pretax Adjusted Earnings
    $178 million to $196 million
    high materiality
    High
    Full-year 2026 Adjusted Earnings Tax Rate
    11% and 14%
    medium materiality
    High

    Segment performance

    13
    SegmentRevenueYoYQoQMargin
    EMEA
    EMEA revenues increased by 56.7%.
    		—56.7%——
    Americas
    Americas revenues increased by 29.9%.
    		—29.9%——
    Asia Pacific
    Asia Pacific revenues increased by 31.1%.
    		—31.1%——
    Total Brokerage
    Total brokerage revenues grew by 46.7% to $895.8 million, driven by growth across all asset classes.
    		$895.8 million46.7%——
    ECS (Energy, Commodities, Shipping)
    ECS revenues grew by 120.1% to $330 million, driven by the acquisition of OTC and strong organic growth across our broader energy complex and shipping businesses.
    		$330 million120.1%——
    Rates
    Rates revenues increased 27.5% to $256.2 million, reflecting strong growth across listed futures and options, interest rate swaps and government bonds, supported by continued FMX UST market share gains.
    		$256.2 million27.5%——
    Foreign Exchange
    Foreign exchange revenues were up 19.1% to $131 million, primarily due to strong volume growth in emerging markets and G10 products.
    		$131 million19.1%——
    Credit
    Credit revenues increased by 8.2% to $94.1 million, driven by higher emerging market credit, portfolio match and structured credit volumes.
    		$94.1 million8.2%——
    Equities
    Equities grew by 34.3% to $84.5 million, reflecting strong market share gains across all major geographies and global equity volatility.
    		$84.5 million34.3%——
    Data Network and Post-Trade
    Data network and post-trade revenues grew by 23.2% to $34.5 million, excluding kACE, which we sold in the fourth quarter of 2025. Including kACE, data network and post-trade revenues grew by 6.1%.
    Revenue (including kACE): $34.5 millionGrowth (including kACE): 6.1%
    		$34.5 million23.2%——
    Fenics
    Fenics revenues increased by 19.8% to a first quarter record of $206.9 million.
    		$206.9 million19.8%——
    Fenics Markets
    Fenics Markets generated revenues of $176.7 million, an increase of 20.3%. This growth was driven by higher electronic trading volumes across rates, credit, foreign exchange and increased Fenics Market Data revenues. Excluding kACE, Fenics Markets grew by 24.1%.
    Revenue (excluding kACE): $176.7 millionGrowth (excluding kACE): 24.1%
    		$176.7 million20.3%——
    Fenics Growth Platforms
    Fenics Growth Platforms revenues grew to $30.2 million, a 17.4% increase, primarily driven by FMX Portfolio Match and Lucera.
    		$30.2 million17.4%——

    Operational metrics

    17
    Revenues (excluding OTC)
    $817 millionup 23%
    Q1 FY26

    Excluding OTC, revenues grew 23% to $817 million, which was also a record.

    Pretax Adjusted Earnings
    $232.1 millionup 44.9%
    Q1 FY26

    Our pretax adjusted earnings grew by 44.9% to $232.1 million, representing a pretax margin of 24.3%.

    Post-tax Adjusted Earnings
    $201.1 millionincreased by 40.6%
    Q1 FY26

    Post-tax adjusted earnings increased by 40.6% to $201.1 million.

    Post-tax Adjusted Earnings Per Share
    $0.4141.4% higher versus last year
    Q1 FY26

    resulting in a post-tax adjusted earnings per share of $0.41, 41.4% higher versus last year.

    Adjusted EBITDA
    $253.2 millionincreased by 26.7%
    Q1 FY26

    Our adjusted EBITDA increased by 26.7% to $253.2 million.

    Cost Reduction Program
    $35 millionup from $25 million
    annualized

    We built on last year's $25 million cost reduction program, which is now expected to result in $35 million of annualized cost savings. We will continue to identify and execute cost savings throughout 2026 to drive further margin expansion.

    Fully Diluted Weighted Average Share Count (Adjusted Earnings)
    495.2 million1% increase compared to last quarter and 1.3% decrease compared to last year
    Q1 FY26

    BGC's fully diluted weighted average share count for adjusted earnings was 495.2 million shares during the period, a 1% increase compared to the last quarter and a 1.3% decrease compared to last year.

    Liquidity
    $878.4 millioncompared with $979.1 million as of year-end 2025
    as of March 31

    As of March 31, our liquidity was $878.4 million compared with $979.1 million as of year-end 2025. The change in our liquidity reflects payments for year-end bonuses, tax payments and timing differences between commissions earned in the seasonally busier first quarter and commissions collected from the seasonally slower fourth quarter.

    FMX UST ADV
    $89.7 billion51% higher compared to last year
    Q1 FY26

    FMX UST generated record quarterly ADV of $89.7 billion, 51% higher compared to last year. FMX UST grew its first quarter market share to 41%, up from 39% last quarter and 33% a year ago. In March, ADV reached $107 billion, the single highest month in the platform's history.

    SOFR ADV (FMX Futures Exchange)
    39,000 contractsup from 2,200 contracts a year ago
    Q1 FY26

    SOFR ADV climbed to more than 39,000 contracts in the first quarter of 2026, up from 2,200 contracts a year ago.

    SOFR Open Interest (FMX Futures Exchange)
    143,000 contractscompared to 8,000 in the prior year period
    quarter end

    while quarter end open interest reached approximately 143,000 contracts compared to 8,000 in the prior year period.

    U.S. Treasury Futures Volume (FMX Futures Exchange)
    30,000 contractsnew high
    April 29, 2026

    FMX's U.S. Treasury futures developed momentum in April with volume building throughout the month to a new high of approximately 30,000 contracts on April 29, 2026.

    FMX FX ADV
    $20.5 billionincreased by 42%
    Q1 FY26

    FMX FX average daily volumes increased by 42% to a record $20.5 billion, driven by strong growth across spot FX and NDF volumes, resulting in continued market share gains.

    Lucera Revenue Growth
    22.8%
    Q1 FY26

    Lucera, Fenics network business providing critical real-time trading infrastructure to the capital markets grew revenues by 22.8% in the first quarter. Growth was led by continued momentum in its FX offering and increasing client adoption across fixed income solutions, including U.S. Treasuries and the Futures.

    Revenue Tracking (pre-Iran conflict)
    41%up YoY
    through Feb 27

    Through February 27, before the conflict began, revenues were tracking up 41%.

    Organic Revenue Growth (H1 FY26 midpoint guidance)
    13%
    H1 FY26

    at the midpoint of our guidance would represent a 4% revenue growth increase for the second quarter and 22% revenue growth for the first half of the year or 13% organically.

    Revenue from kACE sale and logistics business closure
    $10 million
    quarterly

    But we did sell the kACE business, and we did also close down the logistics business. Now that's $10 million of quarterly revenue.

    Deals & partnerships

    2
    OTC Global HoldingsAcquisition of energy brokerage firm

    The acquisition of OTC Global Holdings significantly contributed to BGC's record Q1 FY26 performance, particularly in ECS revenues. Integration is nearly complete, and it also drove cost reduction initiatives.

    kACE Financial businessSale of kACE Financial businessup to $119 million

    Completed the sale of kACE Financial business on December 31, 2025, for up to $119 million. This divestiture impacts year-over-year revenue comparisons for Data Network and Post-Trade and is a factor in the Q2 FY26 guidance.

    Risks & headwinds

    3
    Geopolitical Volatility (Iran conflict)Q1 FY26

    approximately $20 million of incremental revenue in Q1 FY26.

    Mitigation: Record results primarily driven by underlying business, conflict serving only as an incremental contributor. Management noted recovery in FMX Futures open interest post-conflict.

    Challenging Q2 FY26 Revenue ComparablesQ2 FY26

    Q2 FY25 included ~$20 million from 'Liberation Day' tariffs; Q1 FY26 had ~$20 million from Iran conflict; $10 million quarterly revenue impact from kACE sale and logistics business closure.

    Mitigation: Management provided guidance reflecting these factors, emphasizing 13% organic growth for H1 FY26 at midpoint.

    Weaker U.S. DollarQ1 FY26

    contributed to increase in compensation and employee benefits

    What to watch in Q2 FY26

    3

    Cost Reduction Program Annualized Savings

    next quarter
    Current$35 million
    Targetfurther margin expansion beyond $35 million

    Why it matters

    Demonstrates management's ability to drive operational efficiency and expand margins beyond current targets.

    Will we expect to get more than the $35 million-- of course, that's why we said it in our prepared remarks. But I think having just done that incremental 40%, we'll perhaps update you on what we think and an updated thing in the next quarter.

    Q&A highlights

    4

    How much of ECS growth is structural vs cyclical, and what's the run rate post-OTC acquisition? Also, details on the expanded cost reduction program and future margin expansion.

    Management clarified that only about $20 million of Q1 revenue was attributable to geopolitical conflict, with the rest being structural. The OTC integration is nearly complete, and future ECS growth will be reported holistically. The cost reduction program increased by $10 million to $35 million annualized, mainly from compensation and closing a non-profit business. They expect further savings beyond $35 million.

    “our opinion is that around about, call it, $20 million of incremental revenue, one could ascribe to the conflict, but the balance of that -- but most of the growth in Q1 was part of our normal business.”

    asked by Patrick Moley · answered by Sean Windeatt

    2 min read5 chapters

    Detailed Narrative

    01

    Record Q1 Performance and Growth Drivers

    BGC Group achieved record revenues of $955.5 million, a 43.8% increase year-over-year, with growth across all asset classes and geographies. Excluding OTC, revenues grew 23% to $817 million. Pretax adjusted earnings also reached an all-time high of $232.1 million, up 44.9%, representing a pretax margin of 24.3%. This strong performance was driven by the acquisition of OTC Global Holdings, significant organic growth in energy, and market share gains in FMX.

    02

    FMX Market Share Expansion

    FMX continued its strong momentum, setting ADV records in U.S. Treasuries, FX, and Futures. FMX UST average daily volume (ADV) grew 51% to a record $89.7 billion, capturing 41% market share, up from 33% a year ago. FMX FX ADV increased 42% to a record $20.5 billion, driven by strong growth in spot FX and NDF volumes. The company highlighted its role as a second player in the market, reinforcing its position during periods of volatility.

    03

    Cost Reduction Initiatives

    Building on previous efforts, BGC expanded its cost reduction program, now expecting $35 million in annualized savings, up from the initial $25 million. This was primarily driven by efficiencies within compensation lines and the closure of non-profit-making businesses acquired with OTC. Management remains committed to identifying further cost savings throughout 2026 to drive margin expansion.

    04

    Q2 Guidance and Macro Factors

    The company provided Q2 FY26 revenue guidance of $785 million to $845 million, implying 4% growth at the midpoint, and pretax adjusted earnings guidance of $178 million to $196 million, implying 8% growth. Management explained the lower growth rate compared to Q1 was due to approximately $20 million of incremental revenue in Q1 from geopolitical volatility🌐 (Iran conflict), strong Q2 FY25 comparables (Liberation Day tariffs), and the sale of the kACE business and closure of the logistics business, which together accounted for $10 million in quarterly revenue.

    05

    Strategic Importance of Lucera

    Lucera, BGC's network business providing real-time trading infrastructure, grew revenues by 22.8% in Q1. Management emphasized Lucera's role as a "gem" within the portfolio, expanding its connectivity and product offerings across FX and fixed income, and contributing to overall growth through increased client adoption and new product pipelines.

    AI-generated summary of the company’s earnings call. Not investment advice.