8-K: BGC Group Reports Record Q3, FMX Outperforms Market

BGC Group, Inc. announced record third-quarter revenues and adjusted earnings, driven by strong growth across all asset classes and geographies, with its FMX platform significantly outpacing the market.

Summary

• Total revenues for Q3 2025 reached a record $736.8 million, a 31.3% increase compared to $561.1 million in Q3 2024.
• Revenues excluding OTC also hit a record $627.9 million, up 11.9% year-over-year.
• Pre-tax Adjusted Earnings were a record $155.1 million, an increase of 22.4%, while Post-tax Adjusted Earnings rose 11.5% to $141.1 million, resulting in $0.29 Post-tax Adjusted EPS.
• Adjusted EBITDA increased by 10.7% to $167.6 million.
• The FMX platform achieved record third-quarter average daily volume (ADV) of $59.4 billion in U.S. Treasuries, growing market share to an all-time high of 37%.
• FMX Futures Exchange saw SOFR futures ADV and open interest increase more than 3-fold sequentially.
• A $25 million cost reduction program is on track for completion by year-end 2025.
• The Board reapproved a Share Repurchase Authorization for up to $400 million on November 5, 2025.
• BGC anticipates repaying $300 million Senior Notes due December 15, 2025.

Sentiment

Score: 9

Explanation: The filing reports record revenues and adjusted earnings, significant growth across all key business segments, substantial market share gains in critical platforms like FMX, and a positive outlook for the next quarter. The company is also executing a cost reduction program and reapproved a significant share repurchase authorization, indicating strong financial health and a commitment to shareholder value.

Positives

• Record third-quarter total revenues of $736.8 million, up 31.3% year-over-year.
• Record revenues of $627.9 million excluding OTC, demonstrating broad-based growth.
• Record pre-tax Adjusted Earnings of $155.1 million, an increase of 22.4%.
• Record post-tax Adjusted Earnings of $141.1 million, up 11.5%, with post-tax Adjusted EPS of $0.29.
• Adjusted EBITDA increased by 10.7% to $167.6 million.
• Energy, Commodities, and Shipping (ECS) revenues surged by 114.0% to $241.6 million, driven by OTC and strong organic growth.
• Rates revenues increased by 12.1% to $195.3 million, reflecting higher volumes across major interest rate products.
• Foreign Exchange revenues were up 15.9% to $106.7 million due to strong growth in emerging market currencies and FX options.
• Equities revenues grew by 13.2% to $60.4 million, reflecting strong European and U.S. equity volumes and market share gains.
• Fenics revenues improved by 12.7% to $160.0 million, with Fenics Markets up 12.5% and Fenics Growth Platforms up 13.5%.
• FMX UST generated record third-quarter ADV of $59.4 billion, outpacing all electronic U.S. Treasury platforms.
• FMX U.S. Treasury market share reached an all-time high of 37%, significantly outpacing the market.
• FMX Futures Exchange's SOFR futures ADV and open interest increased more than 3-fold sequentially.
• FMX FX ADV increased by 44% to a third-quarter record of $13.1 billion.
• PortfolioMatch ADV more than doubled, gaining market share in the credit market with average trade sizes up nearly 50% year-over-year for U.S. investment grade.
• Lucera registered double-digit revenue growth and is expanding globally.
• A $25 million cost reduction program is expected to enhance profitability and margins upon completion by year-end 2025.
• The Board reapproved a Share Repurchase Authorization for up to $400 million, indicating commitment to shareholder returns.
• Anticipates reducing full-year share count further in Q4 2025 and repaying $300 million Senior Notes due December 15, 2025.

Risks

• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations.
• The actual impact of the company's business, results, financial position, liquidity, and outlook may differ, possibly materially, from what is currently expected.

Future Outlook

BGC Group anticipates strong performance to continue into the fourth quarter of 2025, with projected revenues between $720 million and $770 million and pre-tax Adjusted Earnings between $152.5 million and $167.5 million. The company expects to complete its $25 million cost reduction program by year-end 2025, further reduce its full-year share count, and repay $300 million in Senior Notes. FMX also expects similar adoption in its U.S. Treasury futures offering in 2026.

Management Comments

• "We delivered another outstanding quarter, with record third quarter revenues of $737 million, up 31 percent from $561 million a year ago."
• "Revenues of $628 million, excluding OTC, was also a record, driven by growth across every asset class and geography."
• "Our ability to deliver strong growth in a mixed macro environment demonstrates the strength and scale of our global platform."
• "FMX continues to outperform, setting new records in SOFR futures and U.S. Treasuries."
• "SOFR futures saw both ADV and open interest increase more than 3-fold versus the previous quarter. This momentum has continued into October, where we set multiple new daily volume and open interest records."
• "Our U.S. Treasury market share grew to an all-time high of 37 percent, significantly outpacing the market."
• "Our $25 million cost reduction program will be completed by year-end. This program will enhance our profitability and margins, as we continue to focus on delivering long-term shareholder value."

Industry Context

BGC Group's strong third-quarter performance, marked by record revenues and significant growth across all asset classes, indicates robust operational execution in a 'mixed macro environment.' The FMX platform's outperformance in U.S. Treasuries and SOFR futures, coupled with market share gains in credit markets via PortfolioMatch, suggests BGC is not only resilient but also gaining competitive ground against broader industry trends and competitors. The double-digit growth in Lucera also highlights the increasing demand for real-time trading infrastructure in capital markets.

Comparison to Industry Standards

• FMX UST generated record third-quarter average daily volume (ADV) of $59.4 billion, which is more than 12% higher compared to last year, 'outpacing all electronic U.S. Treasury platforms.'
• FMX's U.S. Treasury market share grew to an all-time high of 37% for the third quarter, up from 29% a year ago, 'significantly outpacing the market.'
• PortfolioMatch 'continues to gain market share in this fast-growing segment of the credit market' and has rapidly expanded its non-U.S. volumes and client base, driven by greater adoption of algorithmic trading and larger average trade sizes.

Corporate Governance

Legal Proceedings

• GAAP expenses in Q3 2025 and Q3 2024 included resolutions of litigation and other matters, including related professional fees, of $11.8 million and $8.6 million, respectively, which are excluded from Adjusted Earnings as non-recurring or unusual items.

Related Party Transactions

• Fees from related parties contributed $4.453 million to total revenues in Q3 2025.
• Payables to related parties amounted to $1.741 million as of September 30, 2025.

Stakeholder Impact

• Shareholders: Positive impact due to record financial performance, increased dividend, reapproved share repurchase program, and focus on long-term shareholder value.
• Employees: Compensation and employee benefits increased due to higher commissionable revenues and the acquisition of OTC, suggesting positive impact for employees tied to performance.
• Customers: Enhanced trading platforms (FMX, PortfolioMatch, Lucera) with increased volumes and market share gains indicate improved service offerings and client engagement.
• Creditors: Anticipated repayment of $300 million Senior Notes by December 15, 2025, demonstrates strong liquidity and commitment to debt obligations.

Next Steps

• Completion of the $25 million cost reduction program by year-end 2025.
• Provide further updates related to the cost reduction program on the fourth-quarter earnings call.
• Anticipate reducing full-year share count further in the fourth quarter of 2025.
• Repay $300 million Senior Notes due December 15, 2025.
• FMX expects to see similar adoption in its U.S. Treasury futures offering in 2026.

Key Dates

Recommendation

BGC Group delivered an exceptional quarter with record revenues and adjusted earnings, significantly outperforming prior periods and market expectations. The FMX platform's strong growth and market share gains in key areas like U.S. Treasuries and SOFR futures highlight its competitive advantage and strategic success. The company's commitment to shareholder value is evident through the reapproved $400 million share repurchase authorization and the consistent dividend. With a positive outlook for Q4 2025 and ongoing cost reduction initiatives, BGC Group demonstrates robust operational execution and strong potential for continued growth and profitability, making it a compelling investment.

Keywords

Financial Results, BGC Group, FMX, Brokerage, Trading, SOFR Futures, U.S. Treasuries, Market Share, Adjusted Earnings, EBITDA, Revenues, Cost Reduction, Share Repurchase, Fixed Income, Foreign Exchange, Energy, Commodities, Equities, Financial Technology