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    MRX
    Earnings call· Jun 2026(Q2 FY26)

    Marex Group Q2 FY26 earnings call MRX

    Aug 12, 2026 Source

    Executive summary

    Marex Group Q2 FY26 — Record Profit Quarter & Strong Structural Growth

    Marex Group delivered a record Q2 FY26, driven by diversified earnings streams and structural growth that outweighed cyclical market headwinds. The firm's strategy of disciplined M&A, client relationship expansion, and investment in market structure innovation is yielding increased profitability and margin expansion. Management expressed confidence in continuing to operate at H1 levels, with a strong M&A pipeline and ongoing momentum.

    Highlights

    5

    • Second quarter revenues increased 39% year-on-year to $696 million.

    • Adjusted profit before tax increased 56% to $166 million, marking a sixth consecutive record quarter.

    • Adjusted profit before tax margin expanded to 24%, reflecting higher-margin businesses.

    • Adjusted return on equity remained very strong at 37.8%.

    • The number of clients generating over $5 million in annual revenue increased to 77, up from 49 in 2025.

    Concerns

    3

    • Volumes on key exchanges reduced meaningfully, down 17% compared with the first quarter, while market volatility also declined.

    • Lower energy revenues were reported following an exceptionally strong prior year comparator.

    • Higher interest expense related to senior debt issuances created a modest near-term headwind to group net interest income.

    Guidance & targets

    4
    CategoryTargetConfidence
    Growth target range
    at least in line with the top end of our 10% to 20% growth target range
    high materiality
    High
    Operating levels
    continuing to operate at the levels we operated in the first half
    high materiality
    High
    Clearing net new balances pipeline
    healthy pipeline for the rest of the year
    medium materiality
    Medium
    Adjusted PBT margin trajectory
    potentially continuing to increase
    medium materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Clearing
    Delivered strong quarter with revenue and adjusted PBT growth. Average client balances significantly increased, driving NII growth despite lower rates. Net commission income remained stable despite reduced contracts cleared. Margins at 49% demonstrate underlying profitability.
    Adjusted profit before tax growth: 12%Average clearing client balances: $19.1B (Q2 average)Clearing net interest income growth: 31%H1 Revenue: $299MH1 Adjusted profit before tax growth: 8%
    		$161M16%—49%
    Agency and Execution
    Outstanding performance with strong revenue and PBT growth. Led by strong growth in prime, FX, and equities. Prime revenue reached a record, driven by client demand. These performances offset lower energy revenues and market-wide exchange volumes.
    Adjusted profit before tax: $117MAdjusted profit before tax growth: 69%Securities revenue: $283MSecurities revenue growth: 68%Prime revenue: $120M
    		$351M35%—33%
    Market Making
    Excellent quarter with broad-based performance, particularly strong in Metals and Securities. Metals benefited from client activity and favorable trading conditions. Securities benefited from Winterflood integration. Energy was up YoY but down from elevated Q1 levels.
    Adjusted profit before tax: $45M
    		$118M106%—38%
    Solutions
    Strong quarter reflecting continued growth across hedging solutions and financial products, supported by favorable market conditions. Benefited from strong client demand in commodities and FX, and investments in technology platform.
    Adjusted profit before tax: $25MAdjusted profit before tax growth: almost fourfold
    		increased 74%74%—35%

    Operational metrics

    24
    Adjusted profit before tax
    $166Mup 56% YoY, up 9% QoQ
    Q2 FY26

    Record profit quarter.

    Adjusted profit before tax
    $319Mequivalent to total annual profit in 2024
    H1 FY26

    First half performance.

    Adjusted profit before tax margin
    24%expanded
    Q2 FY26

    Reflecting increasing contribution from higher-margin businesses.

    Adjusted return on equity
    37.8%remained very strong
    Q2 FY26

    Strong performance.

    Adjusted EPS
    $1.72increased 59%
    Q2 FY26

    Excluding nonoperating items.

    Adjusted EPS
    $3.29
    H1 FY26

    First half performance.

    Reported EPS
    $5.72
    LTM

    Trailing 12-month basis.

    Profit after tax
    $155M
    Q2 FY26

    Included $28 million of nonoperating items, including a $35 million gain on the sale of the Winterflood custody business.

    Total expenses growth
    35%
    Q2 FY26

    Reflecting higher performance-related compensation, continued investment, and impact of acquisitions.

    Net interest income (Group)
    $30Mdown from $35M in 2Q FY25, decreased $11M QoQ
    Q2 FY26

    Higher interest expense more than offset growth in interest income; strategic deployment of excess liquidity into market-related businesses.

    Risk-adjusted capital (RAC) ratio
    ~12%comfortably above 10% level S&P defines as strongly capitalized
    end of June

    Benchmark for capital allocation, supportive of investment-grade credit rating.

    Liquidity funding sources
    $8.1Bup from $6.2B at year-end
    Q2 FY26

    Increased liquidity headroom.

    Liquidity headroom
    $1.8B
    Q2 FY26

    Substantial capacity above internally assessed liquidity required.

    Average daily VAR
    $5.8M
    H1 FY26

    Reflecting increased scale and market environment.

    Profitable trading days
    87%
    H1 FY26

    Every week and month generated positive revenue.

    Organic profit growth
    80%
    Q2 FY26

    Portion of year-on-year profit growth that was organic.

    Quarterly adjusted PBT growth since IPO
    48%average rate YoY
    since Q2 2024

    Demonstrates sustainable growth through various market environments.

    Clients generating >$5M annual revenue
    77up from 49 in 2025 and 36 in 2024
    2026 run-rate

    Reflects deepening relationships with larger and more sophisticated clients.

    Revenue growth from >$5M client cohort
    59%
    since 2025

    Reflecting continued expansion of largest client relationships.

    Average revenue per client growth
    34%
    Q2 FY26

    Demonstrates clients making broader use of the Marex platform.

    Acquisition annualized PAT
    $60M3.5x pre-acquisition earnings of $16M
    Q2 FY26

    Demonstrates ability to integrate acquisitions and deliver synergies.

    Acquisition premium paid
    ~$60M
    2025

    Premium paid for the combination of these acquisitions.

    $3M+ profit days
    5825% of trading days
    LTM

    Reflecting breadth of platform and ability to generate significant returns.

    Loss-making days
    114% of trading days
    LTM

    Remained relatively low and consistent historically.

    Industry KPIs

    3
    MetricValueDetails
    Cet1 ratio~12%%
    Pretax margin23.8%%
    Net interest income$30MUSD

    Product announcements

    4
    ProductTypeDetails
    Cross-margining for U.S. Treasury futures and cashlaunch
    USDC stablecoins as initial marginmilestone
    On-chain repo transactionlaunch
    Prediction markets clearinglaunch

    Deals & partnerships

    3
    BrightPointSignificantly strengthens global clearing franchise, adds presence in Asia, enhances access to China, and adds high-quality infrastructure-intensive earnings.attractive low single-digit multiple of premium paid

    Acquisition announced last month, expected to follow similar pattern of successful integration and earnings growth as previous acquisitions.

    LEvMedEnhances market-making capabilities, adds physical commodities and an experienced management team.

    Example of disciplined M&A approach.

    Web TradersAdds capabilities in equity derivatives market-making and allows internalization of hedging activity within structured products business.

    Example of disciplined M&A approach.

    Risks & headwinds

    3
    Reduced exchange volumes and market volatilityQ2 FY26

    Volumes on key exchanges reduced 17% compared with Q1 FY26

    Mitigation: Diversified earnings streams and structural growth outweighed cyclical elements, leading to record profit despite headwinds.

    Lower energy revenuesQ2 FY26

    Lower compared to an exceptionally strong prior year comparator

    Mitigation: Offset by strong growth in prime, FX, and equities within Agency and Execution segment.

    Higher interest expenseQ2 FY26

    More than offset growth in interest income, leading to group NII of $30M vs $35M in 2Q FY25

    Mitigation: Strategic deployment of excess liquidity into market-related businesses, with benefits reflected in strong trading revenues. Viewed as a sensible insurance cost for supporting clients and growth.

    What to watch in Q3 FY26

    5

    Operating levels

    next quarter
    CurrentOperating at H1 FY26 levels
    TargetMaintenance of H1 FY26 operating levels

    Why it matters

    Verifies management's confidence in sustained performance despite market conditions.

    based on what we see at the moment, we see the firm continuing to operate at the levels we operated in the first half.

    Q&A highlights

    6

    What M&A contribution is anticipated for the 10-20% growth target, and what is the long-term outlook for margins given the recent expansion?

    M&A contribution is expected to remain consistent at around 20% of growth, with a robust pipeline. Current margins at 24% are sustainable and could slowly increase over time due to mix shift and investment returns.

    “I think that we're comfortable with where the margins are now. And over time, I could see those potentially continuing to increase. But if it is going to increase from these levels, in all likelihood, it will be slow and steady rather than something that's dramatic.”

    asked by William Katz · answered by Ian Lowitt

    2 min read5 chapters

    Detailed Narrative

    01

    Diversified Business Model and Earnings Resilience

    Marex has built a diversified business across products, lines, and geographies, leading to increased earnings resilience. Despite a 17% QoQ reduction in exchange volumes and declining market volatility🌐 in Q2, adjusted profit before tax still increased 9% QoQ. The company has achieved year-over-year adjusted profit growth in 19 of the past 20 quarters, demonstrating its ability to grow through various market conditions.

    02

    M&A Strategy and Integration Success

    Disciplined M&A is a core growth strategy, focusing on broadening capabilities and geographic reach. Marex's approach emphasizes integration, synergy capture, and leveraging the broader platform for growth, with approximately 80% of Q2 profit growth being organic. Recent acquisitions like Arna, Hamilton Court, and Winterflood, acquired for a premium of ~$60 million, generated an annualized run rate of ~$60 million PAT in Q2, significantly up from $16 million pre-acquisition.

    03

    Client Relationship Expansion

    The firm is deepening relationships with larger and more sophisticated clients. In 2026, 77 clients generated over $5 million in annual revenue on a run-rate basis, up from 49 in 2025 and 36 in 2024. Revenue from this cohort increased 59% since 2025, and average revenue per client is up 34%, indicating broader use of the Marex platform by existing clients.

    04

    Market Structure Innovation and Digital Assets

    Marex is actively involved in financial market infrastructure innovation, positioning itself as a leader in solving operational complexities for clients. Initiatives include cross-margining for U.S. Treasury futures and cash, enabling USDC stablecoins as initial margin under a CFTC pilot, and executing on-chain repo transactions with tokenized U.S. treasuries. These efforts are building blocks for a robust digital asset prime offering and opening doors to new client relationships.

    05

    Capital and Liquidity Management

    The company maintains a disciplined approach to capital and liquidity. It issued $500 million of hybrid capital and $500 million of senior unsecured notes in Q2, strengthening its capital base and extending funding maturity. The risk-adjusted capital (RAC) ratio was approximately 12% at the end of June, comfortably above S&P's 10% target for a strongly capitalized firm, and liquidity headroom increased to $1.8 billion.

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