Can management provide an update on Q3 trends, particularly regarding the shift towards a more bell-shaped profitability distribution mentioned in prepared remarks?

July and early August trends show a continuation of the first half's operating levels. The firm expects to maintain these levels, with the profitability distribution normalizing from the exceptional Q1 volatility but with a higher center. “I mean, essentially, what we're seeing in July and into the short portion of August is just a continuation of what we saw in the first half. So it's just a maintenance of exactly what we've experienced.”

Provide more granularity on the sources of growth for clients generating over $5 million in annual revenue, including client types and categories.

Growth is driven by more clients entering this cohort and existing clients expanding their business with Marex. The client base is diverse, including commodity producers/consumers, banks, asset managers, and hedge funds, all deepening relationships due to expanded products, capabilities, and credibility. “So there's actually a very broad range of clients that are all seeing essentially the same thing, which is an opportunity to engage with the firm to a greater extent as we expand out into more products, more geographies, and we deepen the relationship.”

To what extent is prime brokerage growth driven by capacity constraints at larger banks, and what is the composition of PB revenues, particularly from the levered ETF community?

Prime brokerage is seeing substantial growth, doubling YoY, driven by broadening client participation and increased balances. Marex is gaining share with funds and hedge funds in the $500M-$2B range, offering specific capabilities and high-quality service. The business is diversified across outsourced trading, prime, and on-balance sheet prime, with tailwinds expected to continue. “I don't really see anything in the short or medium term that's going to cause us to not be able to continue to grow this in a sensible and prudent way. So I think that there are tailwinds rather than headwinds with regard to this particular business.”

MRX

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

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 12, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Growth target range	at least in line with the top end of our 10% to 20% growth target range high materiality	Future	High
Operating levels	continuing to operate at the levels we operated in the first half high materiality	Q3 · 2026	High
Clearing net new balances pipeline	healthy pipeline for the rest of the year medium materiality	H2 FY26 · 2026	Medium
Adjusted PBT margin trajectory	potentially continuing to increase medium materiality	Long-term	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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%	$161M	16%	—	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	$351M	35%	—	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	$118M	106%	—	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%

Product announcements

Product	Type	Timeline
Cross-margining for U.S. Treasury futures and cash	launch	—
USDC stablecoins as initial margin	milestone	Q2 FY26
On-chain repo transaction	launch	Q2 FY26
Prediction markets clearing	launch	Q3 FY26

Deals & partnerships

BrightPoint Significantly 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.

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

Example of disciplined M&A approach.

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

Example of disciplined M&A approach.

Risks & headwinds

Reduced exchange volumes and market volatility Q2 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 revenues Q2 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 expense Q2 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

Operating levels

next quarter

Current Operating at H1 FY26 levels

Target Maintenance 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.

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

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

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