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    BGC
    Earnings call· Jun 2026(Q2 FY26)

    BGC Group Q2 FY26 earnings call BGC

    Jul 30, 2026 Source

    Executive summary

    BGC Group Q2 FY26 — Record Revenue and FMX Market Share Gains

    BGC Group delivered a strong Q2 FY26, marked by record revenues and significant market share gains in its FMX platform, particularly in US Treasuries. The company's diversified global platform drove broad-based growth across most asset classes, with Fenics showing robust performance. Management is focused on leveraging its electronic platforms and new partnerships, such as with Fanatics, to drive future growth and margin expansion, while also navigating regional revenue declines and geopolitical impacts on certain commodity volumes.

    Highlights

    5

    • Record second quarter revenues of $846 million, up 8% versus last year.

    • First half 2026 revenues up more than 24% to $1.8 billion, the highest ever through the first 2 quarters.

    • FMX UST market share grew to 42%, a new all-time high, up from 35% a year ago.

    • Fenics revenues increased by 14.3% to a second quarter record of $186.2 million.

    • Pretax adjusted earnings grew by 11.1% to $192.9 million.

    Concerns

    4

    • Asia Pacific revenues decreased by 2.9% YoY.

    • Lower oil and refined product volumes partially offset ECS growth due to disruptions caused by the Strait of Hormuz closure.

    • Equities growth partially offset by lower European equity derivative activity.

    • Reduced Iran-driven volatility impacted SOFR ADV earlier in the quarter, though it rebounded strongly in June.

    Guidance & targets

    3
    CategoryTargetConfidence
    Q3 FY26 Revenue
    $775 million and $835 million
    high materiality
    High
    Q3 FY26 Pretax Adjusted Earnings
    $172 million to $190 million
    high materiality
    High
    Full Year 2026 Adjusted Earnings Tax Rate
    between 11% and 14%
    medium materiality
    High

    Segment performance

    14
    SegmentRevenueYoYQoQMargin
    Total Company
    Record second quarter revenues, with broad-based growth across every asset class. Pretax adjusted earnings grew by 11.1% YoY, and post-tax adjusted EPS increased by 12.9% YoY.
    Pretax adjusted earnings: $192.9 millionPretax incremental margin: 31.3%Post-tax adjusted earnings: $171 millionPost-tax adjusted EPS: $0.35Adjusted EBITDA: $228.7 million
    		$845.5 million7.8%——
    EMEA
    Strong revenue growth in the region.
    		—11.2%——
    Americas
    Solid revenue growth in the region.
    		—6.1%——
    Asia Pacific
    Revenue decrease in the region.
    		—-2.9%——
    Total Brokerage
    Driven by growth across all asset classes.
    		$771.4 million7.2%——
    ECS
    Driven by strong growth across shipping, environmental, and commodities businesses, partially offset by lower oil and refined product volumes due to Strait of Hormuz closure.
    		$275.5 million5.3%——
    Rates
    Reflecting higher volumes across all major Rates products.
    		$221.9 million10.6%——
    Foreign Exchange
    Primarily due to strong volume growth in emerging markets and G10 products and precious metals.
    		$118.7 million9.4%——
    Credit
    Driven by PortfolioMatch along with higher European and emerging market credit volumes.
    		$79.3 million5.4%——
    Equities
    Reflecting strong U.S. equity volumes, partially offset by lower European equity derivative activity.
    		$76 million2.8%——
    Data, Network and Post-Trade
    Excluding kACE, which was sold in Q4 2025.
    		$36.7 million18.6%——
    Fenics
    Second quarter record revenue.
    		$186.2 million14.3%——
    Fenics Markets
    Excluding kACE. Growth driven by higher electronic trading volumes across rates, credit, foreign exchange and increased Fenics Market Data revenues.
    		$152.8 million16.5%——
    Fenics Growth Platforms
    Primarily driven by FMX, PortfolioMatch and Lucera.
    		$33.4 million22.9%——

    Operational metrics

    20
    Revenue Growth
    24%YoY
    H1 FY26

    First half 2026 revenues were $1.8 billion, the highest ever through the first 2 quarters of the year.

    FMX UST Market Share
    42%up from 41% last quarter and 35% a year ago
    Q2 FY26

    FMX also saw market share gains across its cash, U.S. treasury and futures businesses.

    FMX UST Average Daily Volume
    $79.4 billion17% higher compared to last year
    Q2 FY26
    FMX Futures Exchange Average Daily Volume
    54,000 contractsmore than 16-fold higher than a year ago
    Q2 FY26
    FMX SOFR Average Daily Volume
    59,000 contracts
    June FY26

    Rebounded strongly in June following reduced Iran-driven volatility.

    U.S. Treasury Futures Average Daily Volume
    15,000 contracts
    Q2 FY26

    Continued to scale in the second quarter.

    U.S. Treasury Futures Open Interest
    140,000 contractsup from approximately 22,000 contracts a year ago
    Q2 FY26 end
    FMX FX Average Daily Volume
    $18 billionincreased by 16%
    Q2 FY26

    Driven by continued growth across spot FX and NDF volumes, resulting in continued market share gains.

    PortfolioMatch Average Daily Volume
    $431 milliongrew 82%
    Q2 FY26

    Significantly outpacing the broader credit market.

    Lucera Revenue Growth
    15%
    Q2 FY26

    Lucera, Fenics' network business, providing real-time trading infrastructure to the capital markets.

    Compensation and Employee Benefits Growth
    7.7%YoY
    Q2 FY26

    Increase was related to higher commissionable revenues during the period.

    Non-Compensation Expenses Growth
    5.2%YoY
    Q2 FY26

    Primarily due to increased selling and promotion, along with commissions and floor brokerage expenses related to higher client activity.

    Pretax Adjusted Earnings Incremental Margin
    31.3%
    Q2 FY26
    Post-tax Adjusted Earnings Growth
    11.2%YoY
    Q2 FY26
    Adjusted EBITDA Growth
    7.2%YoY
    Q2 FY26
    Fully Diluted Weighted Average Share Count
    495.4 million sharesapproximately flat compared to last quarter and a 1% decrease compared to last year
    Q2 FY26
    Liquidity
    $861.4 millioncompared with $979.1 million as of year-end 2025
    as of June 30
    Credit Rating
    BBB+upgraded
    Q2 FY26

    Due to the continued strong performance of our business.

    Credit Rating
    A-upgraded
    Q2 FY26

    Due to the continued strong performance of our business.

    Operating Leverage
    positive gearing
    2027 and beyond

    Electronic platforms and FMX business expected to dwarf existing business margins once up to full speed.

    Product announcements

    2
    ProductTypeDetails
    BGC Compute Infrastructure Marketslaunch
    FMX U.S. Treasury Futures (remaining tenors)expansion

    Deals & partnerships

    1
    FanaticsPartnership to build a prediction market ecosystem that serves both retail and institutional participants.

    Combines BGC's extensive client network and Fanatics' database of over 100 million customers. Aims to deliver unique market data and new data products. Entirely separate from FMX's CFTC-registered DCM.

    Risks & headwinds

    5
    Lower oil and refined product volumesQ2 FY26

    partially offset ECS revenues

    Mitigation: Not explicitly stated, but the company's diversified platform helps mitigate impact. (Context: Due to disruptions caused by the Strait of Hormuz closure.)

    Reduced Iran-driven volatilityQ2 FY26 (earlier part)

    impacted SOFR ADV earlier in Q2

    Mitigation: SOFR ADV rebounded strongly in June. (Context: Following reduced Iran-driven volatility, SOFR ADV rebounded strongly in June.)

    Lower European equity derivative activityQ2 FY26

    partially offset Equities growth

    Mitigation: Strong U.S. equity volumes helped offset.

    Asia Pacific revenue decreaseQ2 FY26

    -2.9% YoY

    Mitigation: Not explicitly stated, but overall company growth remains strong.

    Geopolitical tensionsQ3 FY26

    not quantified, but cited as a factor for guidance range

    Mitigation: Company provides a revenue guidance range to account for such factors.

    What to watch in Q3 FY26

    5

    FMX U.S. Treasury Futures full curve listing impact

    Q3 FY26
    CurrentCurrently 2- and 5-year contracts listed
    TargetIncreased trading volumes and open interest across the full curve

    Why it matters

    This expansion is expected to drive significant growth for the FMX platform, a key strategic initiative for BGC.

    As you know🎣, we currently list only the 2- and 5-year U.S. Treasury future contracts, but we'll be listing the remaining tenors across the full curve on August 3, 2026, supporting further growth in trading volumes and open interest on the exchange.

    Q&A highlights

    6

    Seeking details on the growth potential, monetization strategy (brokerage, market data), and expected revenue timeline for the newly launched BGC Compute Infrastructure Markets.

    John Abularrage explained that the market addresses the need to hedge risk in a nearly $1 trillion CapEx industry. The focus will be on OTC cash-settled derivatives and physically delivered trades, leveraging BGC's expertise in ECS and power markets. The goal is to standardize a fragmented market. While revenues are expected relatively soon, it's too nascent for financial guidance.

    “I mean I -- the obvious point is CapEx is going to be close to $1 trillion globally. We obviously look at it and think there hasn't been an effective market that's formed to hedge risk. And so the focus so far has been on cleared futures. But I think for BGC, the real opportunity is going to be on the OTC market.”

    asked by Patrick Moley · answered by John Abularrage

    2 min read6 chapters

    Detailed Narrative

    01

    Record Revenue Performance

    BGC Group achieved record second-quarter revenues of $846 million, an 8% increase year-over-year, driven by broad-based growth across all asset classes. First-half 2026 revenues reached an all-time high of $1.8 billion, representing over 24% growth compared to the prior year, surpassing full-year revenues from just three years ago. This sustained double-digit revenue growth since 2022 highlights the durability and diversification of the company's global platform.

    02

    FMX Platform Momentum

    The FMX platform continued its strong performance, with FMX UST market share reaching a new all-time high of 42%, up from 35% a year ago. FMX SOFR and U.S. Treasury futures also achieved new market share highs in June. FMX UST generated record second-quarter average daily volume (ADV) of $79.4 billion, a 17% increase year-over-year, while FMX Futures Exchange ADV grew more than 16-fold to approximately 54,000 contracts. The company plans to list remaining tenors across the full U.S. Treasury curve on August 3, 2026, to further drive volume and open interest.

    03

    Fanatics Partnership for Prediction Markets

    BGC announced a strategic partnership with Fanatics to build a prediction market ecosystem for both retail and institutional participants. This collaboration leverages BGC's client network and Fanatics' database of over 100 million customers, aiming to deliver unique market data and new data products. BGC will receive upfront consideration, a performance-based earnout, and a license to the exchange's data, underscoring the value of BGC's assets.

    04

    BGC Compute Infrastructure Markets Launch

    BGC launched a new business, BGC Compute Infrastructure Markets, focused on developing a secondary market for compute and memory capacity. Positioned as a natural extension of its power markets business, this initiative aims to standardize a fragmented market for hedging risk and facilitating OTC delivered trades for physical capacity. While nascent, management sees significant long-term potential for revenue generation in this emerging commodity market.

    05

    Fenics Growth and Diversification

    Fenics revenues increased by 14.3% to a record $186.2 million in Q2. Fenics Markets saw a 16.5% increase, driven by higher electronic trading volumes across rates, credit, and foreign exchange, as well as increased Fenics Market Data revenues. Fenics Growth Platforms, including FMX, PortfolioMatch, and Lucera, grew by 22.9%. PortfolioMatch ADV grew 82% to a new quarterly record of $431 million, significantly outpacing the broader credit market.

    06

    Geographic and Expense Trends

    Revenue growth was strong in EMEA (up 11.2%) and the Americas (up 6.1%), though Asia Pacific revenues decreased by 2.9%. Compensation and employee benefits for adjusted earnings increased by 7.7% due to higher commissionable revenues, while non-compensation expenses rose 5.2% from increased selling and promotion and client activity. The company's pretax adjusted earnings grew 11.1% to $192.9 million, demonstrating operating leverage with a 31.3% incremental margin.

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