BGC Group Inc (NASDAQ: BGC) Q4 2025 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Jason Chryssicas — Head of Investor Relations
Sean Windeatt — Co-Chief Executive Officer and Chief Operating Officer
John Abularrage — Co-Chief Executive Officer
Jason W. Hauf — Chief Financial Officer
JP Aubin — Co-Chief Executive Officer
Analysts:
Patrick Moley — Analyst
Eli Abboud — Analyst
Presentation:
operator
Welcome to the BGC Group fourth quarter full year 2025 earnings call all participants at this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press Star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jason Krisikis, Head of Investor Relations. Thank you. You may begin.
Jason Chryssicas — Head of Investor Relations
Hello everyone. This morning we issued BGC’s fourth quarter and full year 2025 financial results which can be found at ir.bgcg.com any historical results provided on today’s call. Compare only the fourth quarter of 2025 with a prior year period unless otherwise stated. All references to record and or strongest results are compared to BGC standalone financial results excluding Newmark prior to the Spinoff in November 2018. We will be referring to our results on a non GAAP basis which include the terms Adjusted Earnings and Adjusted ebitda. Please refer to today’s investor materials on our website for additional details on our financial results and for complete and updated definitions of any non GAAP terms, reconciliations of these items to the corresponding GAAP results and how, when and why management uses them, as well as relevant industry and economic statistics.
The outlook discussed today assumes no material acquisitions or dispositions. Our expectations are subject to change based on various macroeconomic, social, political and or other factors. Information on this call contains forward looking statements including without limitation statements about our economic outlook and business. These statements are subject to risks and uncertainties which could cause our actual results to differ from expectations. Except as required by law, we undertake no obligation to update any forward looking statements. For information on factors that could cause actual results to differ from forward looking statements and a complete discussion of risks and other factors that may impact these forward looking statements, see our SEC filings including but not limited to the risk factors and disclosures within these SEC documents.
With that, I am now happy to turn the call over to Shawn Windiak, Co Chief Executive Officer of BGC Group.
Sean Windeatt — Co-Chief Executive Officer and Chief Operating Officer
Thank you Jason Good morning and welcome to our fourth quarter and full year 2025 conference call. With me today are my fellow Co Chief Executive Officers John Aboularaj and JP o’ Bann along with our Chief Financial Officer Jason Hoff. BGC delivered record breaking revenues both fourth quarter and full year 2025 with increases of 32% and 30% respectively. This strong growth extended across all asset classes and geographies driven by double digit organic growth and our acquisition of otc. We achieved the strongest annual result in our history. With revenues approaching $3 billion and EPS growing by 24% under GAAP and 19% for adjusted earnings, we significantly expanded our market share, completed our second largest acquisition and became the world’s largest energy broker.
We completed the first phase of our cost reduction program that will realise $25 million of annualized savings in 2026 with further cost savings targeted throughout the year. FMX produced another record year with our FMX UST business ending 2025 with a 40% market share. Our FMX Futures Exchange continued its rapid growth with SOFRA futures average daily volumes and open interest increasing 82% and 97% respectively from the previous quarter. This strong momentum has continued into 2026 with volumes, open interest and market share all setting new daily highs. Three years ago. On our fourth quarter 2022 earnings call, we declared BGC a growth company once again.
Since then we produced 13% revenue growth in 2023, 12% in 24, 30% in 2025 and have now guided 34% growth for the first quarter of 2026. At the midpoint of guidance, our revenues have increased from $1.8 billion in 2022 to nearly $3 billion this year. Over the same period, our adjusted EPS has risen by 71% to $1.18 per share. We have become the largest ECS broker globally, diversified our customer base and introduced competition to the U.S. interest rate futures market. We believe our company is stronger than ever and perfectly positioned for continued success as we move into 2026 with the year already off to a record breaking start.
With that, I’d like to turn the call over to John to go over the quarterly results of the business in more detail.
John Abularrage — Co-Chief Executive Officer
Thank you Sean. We delivered record fourth quarter revenues of $756.4 million, a 32.2% increase versus last year. Excluding our acquisition of OTC, revenues were $641.9 million up 12.2% which also would have been a fourth quarter record. Our total brokerage revenues grew by 34.6% to $694.6 million driven by growth across all asset classes. Our ECS revenues grew by 92% to $257.5 million driven by OTC and strong organic growth across the broader energy complex and our shipping business excluding OTC. ECS revenues grew by 10% versus last year rates revenues increased 16.4% to $197.4 million reflecting strong double digit growth in G10 interest rate products, Emerging Market and Repo products.
Foreign exchange revenues were up 9.8% to $102.8 million primarily due to strong growth in emerging market currencies and G10FX forward volumes. Credit revenues increased by 3% to $64.3 million, driven by higher emerging market and European credit volumes. Equities grew by 29% to $72.7 million, reflecting global equity volatility and strong market share gains. Data Network and Post Trade revenues grew by 14.2% to $36.7 million, excluding Capital Lab which we sold in the fourth quarter of 2024. This growth was driven by Lucera and Fennex Market data including Capital Lab Data Network and Post Trade revenues grew by 12.5%.
Now turning to Fenix. In the fourth quarter Fennec revenues increased by 15.4% to a fourth quarter record of $163.9 million. Fennec markets generated revenues of 136, about $7 million, an increase of 15.1%. This growth was primarily driven by higher electronic volumes across Race products and increased Fennec market Data revenues. On December 31, 2025 we sold our case business for up to $119 million or 28 times post tax profits. Fenex Growth Platform’s revenues grew $27.2 million, an 18.9% increase excluding capital Lab driven by strong revenue growth in FMX and Lucera. Including Capital Lab which we sold in the fourth quarter last year, Fennec’s growth platform’s revenues increased by 16.5%.
FMX UST generated record fourth quarter average daily volume of $58.7 billion, more than 12% higher compared to last year and outpacing all electronic US treasury platforms. This strong growth drove market share to a record 39% for the fourth quarter, up from 37% last quarter and 30% a year ago. FMX UST market share has increased sequentially in 12 of the last 13 quarters, more than doubling over the same period. FMX Futures Exchange saw record volumes in open interest in the fourth quarter, with ADV and open interest increasing 82% and 97% respectively versus the third quarter. This momentum has carried into 2026 where ADV was approximately 40,000 contracts in January exceeding 1% market share for the first time and open interest ended with approximately 200,000 contracts, an all time record.
We remain ahead of where we were and with our FMX USP platform which today has approximately 40% market share. In our experience, achieving the first 1% market share is the hardest. We are increasingly excited about the progress we are seeing with our FMX Futures Exchange FMX FX adv increased by 40% to a fourth quarter record $15.5 billion driven by strong growth across spot FX and non deliverable forward volumes. The benefits of having 10 world class partners in FMX is demonstrated by ADV more than doubling since the completion of the FMX transaction. Portfolio match adv grew by 68% driven by stronger US and European credit activity, greater adoption of algorithmic trading and larger average trade size.
Our portfolio match business has seen tremendous growth since its launch and today we estimate it represents nearly 20% of the credit sweep market in the United States. Lucera Fennec’s network business providing critical real time trading infrastructure to the capital markets grew its revenues by 24.1%. This strong growth was driven by increased demand for Lucera’s FX and rate solution, continued international expansion and onboarding of new clients. Lucera’s client pipeline continues to expand and we plan to launch additional fixed income products in 2026 and with that I would now like to turn the call over to Jason.
Jason W. Hauf — Chief Financial Officer
Thank you John and hello everyone. BGC generated record fourth quarter revenues of $756.4 million reflecting growth across all of our geographies. EMEA revenue increased by 39.2%, America’s revenues increased by 25.7% and Asia Pacific revenues increased by 24.2%. Turning to expenses, compensation and employee benefits under GAAP and for adjusted earnings increased by 71.8% and 40.1% respectively. The increase in compensation and employee benefits under GAAP was related to charges due to the cost reduction program, the acquisition of otc, higher commissionable revenues, loan forgiveness and the weaker US Dollar. The increase in compensation and employee benefit for adjusted earnings was driven by otc, higher commissionable revenues and the weaker US Dollar.
Charges related to the cost reduction program and loan forgiveness are excluded from adjusted earnings. Non compensation expenses under GAAP and for adjusted Earnings increased by 25.5% and 27.1% respectively, primarily driven by the acquisition of OTC. Excluding OTC, non compensation expenses under GAAP as and for adjusted earnings increased by 13.5 and 14.7% respectively. We completed the first phase of our cost reduction program during the fourth quarter which will realize $25 million of annualized cost savings in 2026. Further cost efficiencies are expected to be realized throughout the year. Moving on to our record fourth quarter adjusted earnings, our pre tax adjusted earnings grew by 24.5% to $161.3 million representing a pre tax margin of 21.3%.
Excluding the impact of OTC, our pre tax margin would have been 23.2%. And excluding both OTC and the weaker US dollar, our pre tax adjusted earnings margin would have been approximately 23.7%. Post tax adjusted earnings increased by 21.1% to $149.6 million, resulting in a post tax adjusted earnings per share of $0.31. Our adjusted EBITDA decreased by 0.8% to $119.6 million due to charges related to the execution of the cost reduction program. GAAP income from operations before income taxes decreased 8% to $25 million. This included $54.8 million of charges from the cost reduction program, the cash impact of which was $28.1 million.
Turning to share count, BGC fully diluted weighted average share count for adjusted earnings was 490.4 million shares during the period. A 0.8% decrease compared to the third quarter of 2025 and a 1% decrease compared to a year ago. As of December 31, our liquidity was $979.1 million compared with $897.8 million as of year end 2024. With that, I’d like to turn the call back over to Sean to go over our first quarter outlook.
Sean Windeatt — Co-Chief Executive Officer and Chief Operating Officer
Thank you Jason. I am pleased to provide the following guidance. For the first quarter of 2026, we expect to generate revenues of between 860 and $920 million as compared to $664.2 million in the first quarter of 2025, which at the midpoint of our guidance would represent approximately 34% revenue growth. Excluding OTC. We expect our first quarter revenues to grow around 15%. At the midpoint, we anticipate pre tax adjusted earnings to be in the range of 202 to 222 million dollars versus $160.2 million last year which at the midpoint of guidance would represent over 32% earnings growth.
We expect our adjusted earnings tax rate to be between 11 and 14% for the full year 2026. With that operator, we’d like to open the call for questions.
Questions and Answers:
operator
Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please, while we poll for questions. Our first question comes from the line of Patrick Moley with Piper Sandler. Please proceed with your question.
Patrick Moley
Yes, good morning. Thanks for taking the question. Wanted to ask about the first quarter guide. Came in much better than we were expecting and it appears like the organic revenue growth is stepping up there. So I was hoping you could dissect that a little more for us. How much of the step up in growth is driven by just a strong trading environment year to date versus maybe some more sustainable fundamental growth drivers across the business. Thanks.
Sean Windeatt
Thanks, Patrick. Sean, here, look, I think as I said in the prepared remarks, we’ve grown our core revenue, if you like our Same store revenue, 13%, 12%, 15% each year, and in the implied guidance it’s 15% again. You’ll remember that we said with the introduction of interest rates, the market itself was regrowing again. And you’ve seen that for the past three years and now you’re seeing it in our guidance this time. It’s driven not just in ecs but where we’ve gained market share. And I think we also have the benefit of becoming the number one player within that business.
And then we’ve also had strong growth and strong market share gains due to that various hirings that we’ve done over the past year or so in both rates and in foreign exchange. And you’ve also seen across the board, you’ve seen that in FX and equities as well.
Patrick Moley
Okay, great, thanks for that. And then a follow up, you sold Case. Just wondering how you’re thinking about the portfolio of businesses today within Fennex. What drove the decision to sell that business? Was it just opportunistic or should we maybe expect future divestitures? Thanks.
Sean Windeatt
Look, I think we’ve sold two businesses that were sitting within Fenix now in the last year had revenues of Roundabout $27 million and we sold those for just under $165 million. And our view has always been the same, which is if it’s all about shareholder value and if someone is prepared to pay something that’s an appropriate value for our shareholders, then that’s great. Both of those businesses were lower growth businesses for us. I think they’ll do fantastically well in the hands of their new owners. And what it allows us to do is to focus on those higher growth things that you mentioned within the Fennec’s portfolio.
I mean, you know, you saw, I think in John’s prepared remarks, he said that Lucera grew 24% again this quarter, our portfolio match business growing again at strong double digits. So the answer is we always remain open for if it’s not getting the value within our company, but it’s all about shareholder value.
Patrick Moley
Okay, thanks, Sean.
operator
Thank you. Our next question comes from the line of Eli Abad with Bank of America. Please proceed with your question.
Eli Abboud
Good morning. Thanks for taking the question. I wanted to follow up on Patrick’s energy segment question and still trying to unpack, I guess, what’s structural from what cyclical growth here. And to that end, can you maybe talk about the extent to which you’re seeing new logo growth in the energy space? Are there firms who maybe two years ago didn’t think it was necessary to hedge their energy exposure, but now with all of this volatility, are revisiting that decision and maybe becoming clients of BGC’s ECS segment for the first time?
John Abularrage
Hey, morning, Eli, it’s John. So, yeah, the answer is that in the ECS business there is a proliferation of new players in that asset class, both when you talk about hedging, what is real risk in the market and new players who are entering on the traditional buy side. So we’re definitely seeing the benefit of that. Of course, there is some cyclical growth, but I think if you look at our market share and where I would say we’re outperforming the market, those are based mainly on areas where we chose to invest and to enter into those markets over the last couple of years.
So whilst we are seeing across the board good performance in our ECS business at the moment, you’re seeing really great performance from the biggest asset classes that we’ve invested in. So oil, refined products, power, natural gas, and of course, you know, our shipping business. So, you know, yeah, the market environment is good, but I would say, you know, we continue to expand our client base and continue to gain market share.
Eli Abboud
Got it. And has your ECS market share been yet exceeded, I guess the combined market share of BGC and OTC Global as standalone entities? I know in the past couple of calls you had said there would be situations or maybe one plus one equals three as you go to integrate those businesses. Are there any proof points, any evidence yet of that that you can share with us?
John Abularrage
So I’m not, I don’t think we’re breaking it out. But what I will say is without question, the answer to that is yes. So the benefits of acquiring OTC have become evident in the products that I just mentioned. So, you know, our number one positioning in, you know, oil in Gas in refined products has been, you know, augmented certainly in a greater way than just one plus one. And so we are seeing the benefits of that and we are also seeing strong benefits where we have combined parts of the traditional BGC business with, with the existing OTC business to create, you know, Eli, as you and I have discussed, historically, very, very strong global brands under the BGC umbrella.
Eli Abboud
Got it. And I think to some extent the pushback that we hear from investors is does your over the counter, your block, like bread and butter, does that grow structurally slower than listed energy volumes? So I think maybe it would be helpful like if we kind of take as a given that listed energy volumes grow, let’s just say 15% per year over the next five years, does BGC’s volumes grow more, the same, Less? How should we think about the delta,
JP Aubin
Elijah? So the block business is a growing part, right? And we have a very, as you know, 2025, the markets were very volatile. The beginning of 26 is no different. So one, volatility remains the best friend of BGC business. Second, we are the largest listed broker in the world and the block part, the OTC part of that business is growing and BGC is benefiting largely. I would like to mention something. We are a client of multiple exchange as an example. We are one of the CME’s biggest clients. So we notice exchanges, share price are always up in very volatile days.
We shouldn’t be different. You know, they benefit from that extra business and we are the client of the exchanges. So we feed them in a way every day. So we consider we definitely benefit from volatility and the extra blocking business.
Eli Abboud
Got it. And maybe for my last one here, I know actually we haven’t hit on FMX futures yet. So now that market share is picking up and you guys have some momentum, what’s the timetable for recognizing some revenue related to FMX futures? I think there were some fee holidays maybe in the past couple of quarters. Is there any timeline for those rolling off? And then just a follow up, any update on treasury futures? I think open interest there is and still de minimis and maybe that’s been on the back burner. When is that going to move to the front burner for you guys?
John Abularrage
Yeah, so the changes in the fee. Structure happened two years after the deal was signed. So that’s kind of the beginning of this summer when you’ll see for the early adopters, change the fee structures. I think we’ve said before for the futures businesses and in general comment, we will continue to consider where that stands to make sure that it is more than competitive in the marketplace. That was the first part of your question, and the second part of your question was on treasury futures. And treasury futures will come on the back of success of SOFR, meaning that we are at 1% and we don’t take the 1% lightly, but we’re still on that journey.
And we believe very strongly that focusing on SOFR at the moment is the right thing to do, both for building that marketplace, but also in conjunction with daily conversations with our partners is how we make those decisions. So the launch of treasury futures will follow shortly behind where we get to the end of our journey in onboarding and getting SOFR to where we need it to be.
Eli Abboud
Got it. Thanks, guys. That’s just for me.
John Abularrage
Thanks, Eli.
Sean Windeatt
Thanks, Eli.
operator
Thank you. Our next question comes from the line of Patrick Moldy with Piper Sandler. Please proceed with your questions.
Patrick Moley
Yes, thanks for taking the follow up. I wanted to hit on something you said in your prepared remarks about launching additional fixed income products in 2026 within Lucera. Could you maybe just help us get us a better sense for what those could be and how additive it could be to overall growth within Fennex?
John Abularrage
Yeah, sure. So Lucera has got a dominant position in the FX market, as you would imagine, because that’s where it started. They then rolled into rates and you’re seeing the benefits of Lucera’s fantastic position in that market and the services they provide for clients, both in connectivity and the robustness of what they do on the electronic side. And now they’re moving into credit markets to bring that connectivity into an increasingly electronic world. In credit. So hard to define in terms of a number because it’s nascent, it’s just sort of starting. But one would guess that if they are as successful in credit as they’ve been in the first two asset classes, that over a period of time, hopefully that will represent a third of, you know, a third of their revenue.
Patrick Moley
Okay, great. Thanks again, guys. Thank you.
operator
Thank you. We have reached the end of the question and answer session. I would like to turn the floor back to Mr. Shawn Wendiat for closing remarks.
Sean Windeatt
Thank you very much. And just to say thanks for joining us today on our fourth quarter and full year discussion conference call. Look forward to speaking to you soon. Have a great day.
operator
Thank you. And this concludes today’s conference and you may disconnect your lines at this time. We thank you for your participation.