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BGC Group (BGC) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· May 7, 2026

Source: earnings call transcript

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

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

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%——

BGC operating KPIs by quarter

BGC operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Average daily volume FMX UST
$89.7B FMX UST generated record quarterly ADV of $89.7 billion, 51% higher compared to last year. Source: earnings call transcript
$79.4B FMX UST generated record second quarter ADV of $79.4 billion, 17% higher compared to last year. Source: earnings call transcript
-11.5%
Average daily volume FMX FX
$20.5B 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. Source: earnings call transcript
$18B FMX FX average daily volumes increased by 16% to $18 billion, driven by continued growth across spot FX and NDF volumes, resulting in continued market share gains. Source: earnings call transcript
-12.2%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

OTC Global Holdings Acquisition 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 business Sale of kACE Financial business up 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

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 Comparables Q2 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. Dollar Q1 FY26

contributed to increase in compensation and employee benefits

What to watch in Q2 FY26

Cost Reduction Program Annualized Savings

next quarter
Current $35 million
Target further 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.

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Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.