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BGC Group (BGC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 30, 2026

Source: earnings call transcript

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

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

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%——

BGC operating KPIs by quarter

BGC operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call 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.

Product announcements

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

Deals & partnerships

Fanatics Partnership 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

Lower oil and refined product volumes Q2 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 volatility Q2 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 activity Q2 FY26

partially offset Equities growth

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

Asia Pacific revenue decrease Q2 FY26

-2.9% YoY

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

Geopolitical tensions Q3 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

FMX U.S. Treasury Futures full curve listing impact

Q3 FY26
Current Currently 2- and 5-year contracts listed
Target Increased 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.

Find out whether BGC delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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