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DATE

Thursday, July 30, 2026 at 11:00 a.m. ET

CALL PARTICIPANTS

  • Co-Chief Executive Officer - Sean A. Windeatt
  • Co-Chief Executive Officer - John Joseph Abularrage
  • Co-Chief Executive Officer - Jean-Pierre Aubin
  • Chief Financial Officer - Jason Williams Hauf
  • Head of Investor Relations - Jason Chryssicas

TAKEAWAYS

  • Revenue -- $845.5 million for BGC Group, Inc. (BGC -0.77%), representing a 7.8% increase driven by broad-based growth across all asset classes.
  • Half-Year Revenue -- $1.8 billion, a 24% increase compared to the previous year and exceeding the full-year results reported three years ago.
  • Total Brokerage Revenue -- $771.4 million, up 7.2% due to growth in rates, credit, and foreign exchange products.
  • ECS Revenue -- $275.5 million, up 5.3% as expansion in shipping and commodities was partially offset by lower oil volumes following the Strait of Hormuz closure.
  • Rates Revenue -- $221.9 million, an increase of 10.6% reflecting higher volumes across all major products during the quarter.
  • Foreign Exchange Revenue -- $118.7 million, up 9.4% primarily due to volume growth in emerging market and G10 products.
  • Credit Revenue -- $79.3 million, a 5.4% increase driven by PortfolioMatch and higher European and emerging market volumes.
  • Equities Revenue -- $76 million, up 2.8% as growth in U.S. equity volumes was partially offset by lower European derivative activity.
  • Data, Network, and Post-trade Revenue -- $36.7 million, representing 18.6% growth when excluding the impact of the kACE business sale.
  • Fenics Revenue -- $186.2 million, a record for the second quarter and a 14.3% increase driven by higher electronic trading volumes.
  • Fenics Growth Platform Revenue -- $33.4 million, up 22.9% led by performance in FMX, PortfolioMatch, and Lucera.
  • FMX UST Market Share -- 42%, a new all-time high compared to 35% in the prior year period.
  • FMX UST ADV -- $79.4 billion, a 17% increase versus the second quarter of the previous year.
  • FMX Futures ADV -- 54,000 contracts, representing a 16-fold increase compared to the prior year.
  • SOFR Futures ADV -- 59,000 contracts in June, marking a record month following a rebound in volatility.
  • FMX FX ADV -- $18 billion, up 16% driven by spot foreign exchange and non-deliverable forward volumes.
  • PortfolioMatch ADV -- $431 million, an 82% increase that set a new quarterly record for the platform.
  • Lucera Revenue -- increased 15% as the network business expanded real-time trading infrastructure services.
  • Pretax Adjusted Earnings -- $192.9 million, up 11.1% with a pretax incremental margin of 31.3%.
  • Post-tax Adjusted EPS -- $0.35, representing a 12.9% increase compared to the second quarter of last year.
  • Adjusted EBITDA -- $228.7 million, a 7.2% increase reflecting higher client activity and commissionable revenues.
  • Liquidity -- $861.4 million as of June 30, 2026, compared to $979.1 million at the end of 2025.
  • Adjusted Share Count -- 495.4 million, a 1% decrease year over year.
  • Q3 Revenue Guidance -- $775 million to $835 million, representing approximately 9% growth at the midpoint.
  • Q3 Pretax Adjusted Earnings Guidance -- $172 million to $190 million, which at the midpoint represents 17% growth.

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RISKS

  • Abularrage stated, "lower oil and refined product volumes due to disruptions caused by the Strait of Hormuz closure," noting this as an offset to broader ECS segment growth.

SUMMARY

Management reported that BGC Group, Inc. achieved record second quarter revenue of $845.5 million, with growth distributed across all major asset classes. The company stated that FMX attained a record 42% market share in U.S. Treasuries and continued to expand its futures and foreign exchange platforms. During the quarter, the firm launched BGC compute infrastructure markets and a partnership with Fanatics to develop prediction market data ecosystems. Management provided third quarter revenue guidance between $775 million and $835 million, noting that operational gearing and executed cost savings are expected to drive margin expansion.

  • John Joseph Abularrage stated that prediction markets serve as a "gauge of sentiments," which predict future outcomes as opposed to traditional data that reflects past events.
  • FMX will list the remaining tenors across the full yield curve on Aug. 3, 2026, to support further growth in trading volumes and open interest.
  • The company launched BGC compute infrastructure markets to develop a secondary market for compute and memory capacity, targeting an estimated $1 trillion in global capital expenditures.
  • Jean-Pierre Aubin noted that early-stage Supplementary Leverage Ratio reforms at certain banks have contributed to increased activity across various underlyings.
  • Management announced that the FMX Investor Day on Oct. 13, 2026, will feature 2024 Nobel Prize winner Geoffrey Hinton as the keynote speaker.
  • Sean A. Windeatt stated that incremental margins for the third quarter are expected to be "well in excess of 30," driven by operational cost savings and electronic trading model gearing.
  • The partnership with Fanatics provides BGC with access to a database of over 100 million customers, facilitating retail reach for prediction market products.

INDUSTRY GLOSSARY

  • ADV: Average Daily Volume, a measure of the total number of shares or contracts traded during a day.
  • DCM: Designated Contract Market, a board of trade or exchange that trades futures, options, or swaps under CFTC regulation.
  • DCO: Derivatives Clearing Organization, an entity that enables each party to an agreement to substitute the credit of the DCO for the credit of the parties.
  • ECS: Energy, Commodities, and Shipping, a primary brokerage segment for BGC.
  • Fenics: BGC's high-margin electronic brokerage brand and technology platform.
  • FMX: A BGC marketplace encompassing a U.S. interest rate futures exchange, cash treasuries platform, and spot foreign exchange platform.
  • SLR: Supplementary Leverage Ratio, a non-risk-based capital requirement for large banking organizations.
  • SOFR: Secured Overnight Financing Rate, a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.

Full Conference Call Transcript

Operator: Thank you for standing by. Today's presentation will begin momentarily. Greetings, and welcome to the BGC Group Second Quarter 26 Earnings Call. 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 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jason Chryssicas, head of investor relations. Please go ahead.

Jason Chryssicas: Hello, everyone. This morning, we issued BGC's financial results, which will be found at ir.bgcg.com. Any historical results provided on today's call compare only the current period with the prior year period unless otherwise specified. All references on today's call to record or all time high results are to BGC standalone financial results, excluding Newmark prior to the spin off in November 2018. We will be referring to our results on a non GAAP basis, which include the terms adjusted EBITDA and adjusted earnings.

Please refer to today's investor materials on our website for additional details on our financial results relevant economic and industry statistics, for the complete and updated definitions of any non GAAP terms, reconciliations of these items to corresponding GAAP results, and how, when, and why management uses them. 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 the 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 documents. With that, I am now happy to turn the call over to Sean A. Windeatt, co chief executive officer of BGC Group.

Sean A. Windeatt: Thank you, Jason. Good morning, and welcome to our second quarter 26 conference call. With me today are my fellow co chief executive officers, John Joseph Abularrage and Jean-Pierre Aubin. Along with our chief financial officer, Jason Williams Hauf. We produce revenues of $846 million, a second quarter record up 8% versus last year. This growth was broad based across every asset class reflecting the durability diversification, and the strength of our global platform. Our revenues for the first half of 2026 were up more than 24% to $1.8 billion the highest ever through the first 2 quarters of the year. Since 2022 and the return of interest rates, we have grown our revenues double digits every year since.

And our half year revenues in 2026 were greater than our full year revenues of just 3 years ago. FMX once again saw market share gains across its cash, US treasury, and futures businesses. FMXUST market share grew to 42%, a new all time high. And FMX SOFR and US treasury futures also reached new market share highs for the month of June. With that, I would like to turn the call over to John to discuss our exciting new partnership with Fanatics and the quarterly results of the business in more detail.

John Joseph Abularrage: Thank you, Sean. Earlier this week, we announced our partnership with Fanatics, a global sports platform to build a prediction market ecosystem that serves both retail and new institutional participants. Combining BGC's extensive client network and Fanatics database of over 100 million customers. Together, BGC and Fanatics will also deliver unique market data in this innovative and rapidly growing asset class. This partnership brings together BGC's established market data and analytics capabilities to enable the development of new data products. Prediction markets are a gauge of sentiments, which predict outcomes as opposed to our traditional data which reflects past events. Merging these 2 together will allow us to offer new and exciting datasets to our clients.

As part of this agreement, BDC will receive upfront consideration and a performance based earn out as well as a license to the exchange's data. This is entirely separate from FMX's CFTC registered DCM which BGC continues to own and control. Similar to the sale of Case and Capital Labs, this transaction once again underscores the tremendous value of the assets that BGC owns. Assets that we believe are worth significantly more what is currently reflected in the market. Now turning to our second quarter results. We delivered record second quarter revenues of $845.5 million, a 7.8% increase versus last year. Our total brokerage revenues grew by 7.2% to $771.4 million driven by growth across all asset classes.

ECS revenues grew by 5.3% to $275.5 million driven by strong growth across our shipping, environmental, and commodities businesses, partially offset by lower oil and refined product volumes due to disruptions caused by the Strait of Hormuz closure. Additionally, we announced the launch of BGC compute infrastructure markets during the second quarter. A logical extension of our existing power business. This is a new business focused on developing the secondary market for compute and memory capacity. Race revenues increased by 10.6% to $221.9 million, reflecting higher volumes across all major rates products during the quarter. Foreign exchange revenues were up 9.4% to $118.7 million primarily due to strong volume growth in emerging market and G10 products and precious metals.

Credit revenues increased by 5.4% to $79.3 million, driven by portfolio match, along with higher European and emerging market credit volumes. Equities grew by 2.8% to $76 million, reflecting strong US equity volumes partially offset by lower European equity derivative activity. Data, network, and post trade revenues grew by 18.6% to $36.7 million, excluding case, which we sold in the fourth quarter of 25. Now turning to Fenics. Fenics revenues increased by 14.3% to a second-quarter record of $186.2 million. Fenics Markets generated revenues of $152.8 million, an increase of 16.5%, excluding case. This growth was driven by higher electronic trading volumes across rates, credit, foreign exchange, and increased Fenics market data revenues.

Fenics Growth Platform's revenues grew to $33.4 million, a 22.9% increase. Primarily driven by FMX, PortfolioMatch, and Lucera. FMX UST generated record second quarter ADV of $79.4 billion, 17% higher compared to last year. FMXUST continued to grow its market share to 42% in the second quarter, up from 41% last quarter and 35% a year ago. FMX futures exchange delivered another quarter of significant growth. With second quarter ADV of approximately 54 thousand contracts. More than 16 fold higher than a year ago. DELFER ADV rebounded strongly in June following reduced Iran driven volatility, achieving a monthly record of more than 59 thousand contracts.

US treasury futures continued to scale in the second quarter averaging more than 15 thousand contracts per day, and total open interest ended at more than 140 thousand contracts, up from approximately 22 thousand contracts a year ago. As you know, we currently list only the 2- and 5-year US treasury future contracts. But we will 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. 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.

Portfolio match ADV grew 82% to a new quarterly record of $431 million significantly outpacing the broader credit market. Lucera, Fenics network business providing real time trading infrastructure to the capital markets grew its revenues by 15%. And with that, would now like to turn the call over to Jason.

Jason Williams Hauf: Thank you, John. And hello, everyone. BGC generated revenues of $845.5 million during the second quarter. EMEA and Americas grew revenues by 11.2% and 6.1%, respectively. While Asia Pacific revenues decreased by 2.9%. Turning to expenses. Compensation and employee benefits for adjusted earnings increased by 7.7%. The increase was related to higher commissionable revenues during the period. Non compensation expenses for adjusted earnings increased by 5.2%, primarily due to increased selling and promotion, along with commissions and floor brokerage expenses related to higher client activity. Moving on to our record second quarter adjusted earnings. Our pretax adjusted earnings grew by 11.1% to $192.9 million, representing a pretax incremental margin of 31.3%.

Post tax adjusted earnings increased by 11.2% to $171 million, resulting in a post tax adjusted earnings per share of $0.35, 12.9% higher versus last year. Adjusted EBITDA increased by 7.2% to $228.7 million. Turning to share count. BDC's fully diluted weighted average share count for adjusted earnings was 495.4 million shares during the period. Approximately flat compared to last quarter and a 1% decrease compared to last year. As of June 30, our liquidity was $861.4 million, compared with $979.1 million as of year end 2025. We recently received upgraded credit ratings from both Kroll and JCRA to BBB+ and A-, respectively, due to the continued strong performance of our business.

With that, I would like to turn the call back to Sean to go over our third quarter outlook.

Sean A. Windeatt: Thank you, Jason. I am pleased to provide the following guidance for the third quarter of 26. We expect to generate revenues of between $775 million and $835 million compared to $737 million in the third quarter of 25. Which at the midpoint of our guidance would represent just over 9% revenue growth for the third quarter and 19% revenue growth for the first 9 months of the year. Anticipate pretax adjusted earnings to be in the range of $172 million to $190 million versus $155.1 million last year. Which at the midpoint of guidance represent 17% earnings growth for the third quarter and 24% earnings growth for the first 9 months of the year.

We expect our adjusted earnings tax rate to be between 11% and 14% for the full year 2026. Before we open the call for questions, I am excited to announce that we will be hosting our first ever FMX Investor Day on October 13. With further details to follow. I am also excited to share that our keynote speaker will be Geoffrey Hinton, the godfather of AI. Who won the 2024 Nobel Prize and the 2018 Turing Award for his work with artificial and deep neural networks. And with that, operator, we would now like to open the call for questions.

Operator: We will now be conducting a question-and-answer session. 1 moment, while we poll for questions. Our first question is from Patrick Moley with Piper Sandler.

Patrick Moley: Yes. Good morning, gentlemen. I want to start off with a question on the BGC Compute Infrastructure markets. You launched that in June. I know this is being positioned by, you know, yourselves and others in the industry as kind of a you know, compute memory capacity being an emerging commodity market. So I was hoping you could maybe just, like, walk us through the growth opportunity there, and the monetization model. Is this you know, primarily a brokerage of OTC blocks between some of the participants in the AI ecosystem? Is there a--is there a market data or benchmarking opportunity And then, ultimately, I guess, how are you thinking about the maturity curve here?

When should we expect you know, revenues, I guess, from this business to maybe be reflected in the financials? And then I have a follow-up. Thanks.

John Joseph Abularrage: Hey, Patrick. it is John. A bunch of questions. So I will do my best, but remind me if I skip 1. I mean, I the obvious point is CapEx is going to be close to $1 trillion globally. You know, we obviously look at it and think, there has not been an effective market that is 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. So cash settled derivatives to hedge exposure and OTC delivered trades when you know, counterparties want actual physical delivery. So, you know, we are number 1 in ECS.

I think it is a natural extension of our power markets. And where we are going with it is to drive standardization across you know, what is a highly fragmented market needs a broker in it. And so, you know, when we see revenues, I would assume, you know, we will start to trade relatively soon, but I you know, it is early and too nascent a market for us to give, you know, financial guidance at the moment. But I think we have you know, a group of some of our best ECS brokers who are doing this. I think we have connectivity to the hyperscalers, the neos, and, you know, the traditional client base.

So I think we are uniquely positioned to enter the market and help standardize things. And, you know, on the back of that, I think we will you know, we are very excited about potential opportunity. So I hope that answers the question.

Patrick Moley: No. Definitely. Thanks for that. And then just to follow-up on the 3Q guidance and margins, I think pretty impressive revenue guide on the margin side. This quarter, I think it was up 100 basis points year over year pretax adjusted margin. I think that is gonna accelerate this quarter based on the midpoint of the guide to maybe a 150 basis point. step-up year over year. So could you maybe just talk about the longer term realistic multiyear margin destination, how you are thinking about that today, and what is really driving that incremental margin step up year over year? Thanks.

Sean A. Windeatt: Yes. Certainly, Patrick. it is Sean here. I think you have actually you frame it quite correctly. You know, we what you are seeing is the gearing that we have always spoken about. And that is why in the prepared notes, we did not just point out the quarter, but pointed out the 9 month you know, assuming the midpoint. You know, what you are seeing is you are seeing that in that guidance for Q3, you are seeing the flow through know, just under 40 percentage points And that is a mixture of, of course, the incremental business, the incremental growth, and the cost savings that we have identified and executed on during the year.

I think as you quite rightly say, look, we are incredibly excited, you know, going forward because what you have is we have a model where the gearing is in place, you are seeing, yeah, even on the sort of 22 ish percent margin, you are seeing that but on incremental, it is it is well in excess of 30. Of course, leading into 2027 and beyond, you know, we still have our electronic platforms and our FMX business which will, of course, once up to full speed, dwarf the margins of our of our existing business. And so I think our, you know, our runway remains incredibly positive. Alright. Thank you all. that is, that is it for me.

Operator: As a reminder, if you would like to ask a question, please press star 1. Our next question is from Eli Abboud with Bank of America.

Eli Abboud: Good morning, everyone. Thanks for taking the question. I wanted to ask if you were seeing any impacts down from the SLR reforms, which took place or took effect at certain banks earlier this year. I appreciate that your rates revenue is broadly strong here, up 19% in aggregate in the first half. But are you seeing any outsized contribution coming from the bank channel that is worth calling out?

Jean-Pierre Aubin: Hello, Eli, GP here. Yes. it is early stage, but we did notice a strong activity from the banks linked to the SLR So, yes, it is positive. Definitely. You know, a strong market share with sub banks provide us the ability to notice on various underlyings the positive aspect of the SLR reform. Got it.

Eli Abboud: And I have a couple here for you on FMX as well. Can you talk about how the progress is coming in hooking up the buy side clients Can and if I mean, to the extent that you have seen ops obstacles there, can you give us any details into what pushback you guys are getting from that client channel?

John Joseph Abularrage: Sure, Eli. it is John. I would say that the onboarding of the buy side is accelerating. I would say that we are happy with the progress. I would say that the pipeline of buy side participants and new participants that are coming on the exchange is happening at least as fast as we had hoped, and the new participants certainly will drive the number of contracts going forward. So I do not think we have had a problem at all I think it was, as we told you before, kind of going into the progression in Year 3 of FMX, the buy side is taking notice and starting to trade more actively.

So we are pretty happy with where we are.

Eli Abboud: Got it. And just bigger picture on FMX for a second. I know year 3 was kind of always framed as all about market share. that is when the big market share push was going to be. So, I guess, we come across that the 3 year anniversary very shortly here, What should our expectations be? Where do you expect to end year 3 in terms of market share? Can you just, like, like, give us a baseline expectation?

John Joseph Abularrage: Higher would be the answer. So, you know, we have avoided, as you know, giving direct targets you know, because it is a it is a new exchange, and, you know, we are constantly in building mode. So we are not gonna change that now. In terms of giving an exact number, but I am pretty confident that the number going into year 3 and the end of year 3 would be higher than where you see our averages now. Got it.

Eli Abboud: And then just last 1 for me here. Can you walk us through some of the assumptions that you were baking into that 3Q 26 revenue guide? It looks like listed energy futures volumes are up quarter to date versus 2Q. Energy is your largest segment, so I would have anticipated that your revenue would also be headed higher. Sequentially. So is there maybe some conservatism baked into that guide? Or is maybe some softer areas in other asset classes Any detail there would be helpful.

Sean A. Windeatt: Sure. So look, I mean, as you know, Eli, we always guide what we see. Right? And, they would have been fairly consistent that we would have expected sort of the, you know, circa the 10% for this year. Obviously, we have exceeded that. If Q3 is always an interesting 1 to guide for because you have the summer months of July and August and the biggest month of this quarter is of course, September. You know? And that is why that is why we give a range. You are right to say that, the biggest asset class we have is ECS, you know, run about 36%.

You know, we have we have others. there is nothing that we are seeing to cause any concern whatsoever. But look, you know, I think with the sustained geopolitical tensions that, that exist I think that is why we have given the range but no certainly no challenges. I think a mid guide of you know, mid guide at sort of just under 10% and a higher end of 13.5%, you know, seems pretty good to us. Got it. Thanks, everyone.

Operator: Thank you. Thank you. Our next question is from Patrick Moley with Piper Sandler.

Patrick Moley: Yes. Thanks for taking the follow-up. Maybe just a broad 1 on the Fanatics partnership. Could you maybe just elaborate on how that came together maybe just some of some of the, you know, nuances of the partnership in terms of, you know, the revenue share, what you are getting out of that? And then why do you think Fanatics was the right partner for you? I know that they are you know, I think more of a sports oriented platform. I would think your customers are maybe more focused on, you know, economic indicators and you know, maybe interest rate prediction markets and things like that.

So how do you kind of marry that and, yeah, any kind of color you can just give on that on how that came together? Thanks.

John Joseph Abularrage: Sure. I think the genesis of it was that we had a DCO, and the DCO was kind of active by a few trades a year. So we knew we had that asset And when these things started trading in the market, we looked at how we would best capitalize So I think we have shown from our prior acquisitions and disposal that our focus is on maximizing shareholder value. So the conversation happened internally about what to do with the DCO. Then our general counsel introduced me to a gentleman who is an expert in the field, and we talked about what to do with it.

And we thought the real value was in applying for a DCM and putting the 2 of them together, so we did that. Started that process. And then I fortuitously got introduced to a great partner named Michael Ruben who runs the Fanatics Sports and Exchange business. And from the beginning of that, I think we thought this was a perfect marriage. So to your last question, yes, current Fanatics is a sports related business, but their reach in terms of consumers and retail is over a 100 million customers in their database. That is something that, you know, since I have come into this industry has been a relative criticism where we have no reach into retail.

So we have solved that problem by partnering with Fanatics. I think that all you need to do in terms of realizing that the right this is the right partner to get our shareholders long term great shareholder value is attend Fanatics Fest, which is mind boggling in terms of its reach and the people that are there. And I think we are incredibly excited about this partnership. And, of course, you know, Fanatics does more at the moment than sports. In terms of their current listing, but we will be helping bring the institutional market that BGC is known for to that retail market.

And combining those 2 things, on contracts that you quite rightly point out our client base will be more interested in will take prediction markets where it needs to go. On the back of that, you will see predictive data. So as we said in the opening remarks, the vast majority the data that we currently sell is backward looking. And now you get predictive data, and you will get all new client interest in new datasets. And so for us, partnering with Michael, Michael Ruben, Glenn Schiffman and the team over at Fanatics is an absolute grand slam for us.

And we are, you know, we are incredibly happy about it, and we will do our very best to deliver shareholder value as we always do.

Patrick Moley: Okay. And then I apologize if I missed it. We have been juggling a few calls this morning, so it might be in the deck. But anything you have disclosed or willing to disclose on the economics of that partnership Not yet.

John Joseph Abularrage: I mean, I think, you know, what we said was that there is a upfront consideration, again, we are always focused on delivering shareholder value. There is an earn out associated with the exchange volume. And finally, there is a true partnership on the data side. So, you know, that where, you know, we are. So there is a gentleman called Arran Rowsell on our side. he is running the project for us. And, you know, we will you know, endeavor to you know, again, to the right shareholder value through that.

Patrick Moley: Alright. Great, John. Thanks for that color. And, I look forward to your October FMX Analyst Day. It is a day after my wedding anniversary, but I am gonna try to make it work. So I will see you guys soon.

John Joseph Abularrage: We can extend an extra invitation to your wife. Yeah. Have a good 1, guys.

Operator: Thanks. Thank you. There are no further questions at this time. Would like to hand the floor back over to Mr. Windeatt for any closing remarks. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.