Key Takeaways Robinhood is expanding globally with acquisitions in Indonesia and tokenized trading in Europe.HOOD projects 2025 revenue growth of 51.2% and earnings growth of 78.9%, outpacing BGC's estimates.HOOD shares are up 266.2% YTD, while BGC stock is down 2.9%, despite BGC's stronger return on equity.Fintech disruption has reshaped how brokerages attract and serve investors, and a few names stand out, like Robinhood Markets (HOOD) and BGC Group (BGC) . HOOD has become a household name among a younger ...

Core Insights - Penn Capital Management Company sold 1,615,590 shares of BGC Group, reducing its position by approximately $17.1 million, which reflects a strategic adjustment rather than a negative outlook on the sector [2][3][9] Company Overview - BGC Group, Inc. is a financial brokerage and technology provider with a market capitalization of $4.1 billion and revenue of $2.7 billion over the trailing twelve months (TTM) [5][6] - The company reported a net income of $165.8 million (TTM) and has a diversified product suite across multiple asset classes, including fixed income, equities, and commodities [5][8] Recent Performance - BGC Group's third-quarter revenue reached a record $736.8 million, marking a 31% year-over-year increase, with significant growth in energy, commodities, and shipping sectors [10] - The company's U.S. Treasury market share increased to a record 37%, and adjusted EBITDA rose to $167.6 million [10] Investment Positioning - Following the sale, Penn Capital's remaining stake in BGC Group is valued at $5.9 million, representing 0.5% of its reportable assets, down from 2% in the previous quarter [4][11] - The reduction in position indicates a valuation-sensitive approach by Penn Capital, while BGC Group's fundamentals remain strong [9][11]

Summary of Key Points from the Conference Call Industry Overview - The focus on AI investments has overshadowed other potential investment opportunities in various sectors, including semiconductors, power plants, and capital goods [1][2] - Companies not directly benefiting from AI are highlighted as compelling investment options, such as Freeport-McMoRan, which has indirect exposure to AI [1] Core Insights and Arguments - A screening of Buy-rated US stocks not included in AI/power/infrastructure ETFs identified 82 stocks with positive 3-month EPS revisions and trading below a market multiple of 26x, leading to a final list of 16 equities [2] - Savita Subramanian models an 8% return for the S&P over the next 12 months, emphasizing the importance of owning average stocks rather than the index [3] - Risks associated with AI investments include potential declines in middle-income white-collar jobs, which could impair consumer spending [3] - Hyperscalers investing heavily in AI technology may face de-rating if monetization does not meet expectations, as they currently trade at high multiples despite capital-intensive spending [3] Notable Companies and Their Performance - **Amcor PLC (AMCR)**: Recent acquisition of Berry Global is expected to enhance valuation, with EBITDA projected to approach $3.8 billion for F26 [11][12] - **AT&T Inc. (T)**: Strong performance metrics with 405k post-paid phone net additions, projecting a 9% EPS growth in 2026 [15][17] - **BGC Group**: Dominates the energy derivatives market, with expected growth in volumes due to increased power consumption driven by cloud and AI adoption [18][19] - **Church & Dwight (CHD)**: Positioned to benefit from consumer trade-down trends, with organic sales growth of 3.4% in Q3 [20][21] - **Dollar General (DG)**: Improved execution and a focus on lower price points are expected to boost sales, with a current valuation below the 5-year average [23][27] - **Freeport-McMoRan (FCX)**: Anticipates a restart of the Grasberg mine, with bullish forecasts for copper prices due to supply challenges [32][34] - **Henry Schein (HSIC)**: Transitioning to a higher-margin business model, with a target of 60% operating income from high-growth products by 2027 [38][39] - **Progressive Corp (PGR)**: Strong EPS revisions and expected dividend announcements are anticipated to drive growth [65][67] - **Walt Disney Co. (DIS)**: Growth drivers intact with expectations for double-digit growth in Entertainment operating income [80] Additional Important Insights - The market is currently cautious, providing room for multiple expansions as fundamentals improve across various sectors [14] - Regulatory improvements in Connecticut are expected to enhance Eversource's valuation [28][30] - Viking Holdings is positioned for premium valuation due to its unique brand and superior margins in the cruise industry [76][79] - The overall sentiment indicates a potential for significant investment opportunities outside the AI sector, as companies adapt to changing market dynamics and consumer behaviors [1][2][3]

Financial Performance - BGC Group reported a revenue increase of 15% year-over-year for the third quarter of 2025, totaling $450 million[6]. - Adjusted earnings for the nine months ended September 30, 2025, were $120 million, reflecting a 10% increase compared to the same period in 2024[6]. - The average daily volume (ADV) increased by 20% to $1.5 billion in Q3 2025 compared to Q3 2024[6]. - Total revenues for the three months ended September 30, 2025, increased to $736,849,000, up 31.3% from $561,111,000 in the same period of 2024[33]. - Consolidated net income for the nine months ended September 30, 2025, was $135,706,000, representing a 35.8% increase compared to $99,929,000 for the same period in 2024[34]. - Basic earnings per share for the three months ended September 30, 2025, were $0.06, compared to $0.03 for the same period in 2024[33]. - For the nine months ended September 30, 2025, the company reported a consolidated net income of $135,706,000, a significant increase from the previous year[42]. Strategic Initiatives - The company plans to expand its market presence in the Asia-Pacific region, targeting a 25% growth in that market by the end of 2026[6]. - BGC Group has allocated $50 million for new product development and technology enhancements in 2025[6]. - The company is focused on developing new Fenics platforms and products to expand its market offerings and client base[20]. - The company is actively pursuing new operations and business initiatives, including the integration of acquired businesses and their technologies[21]. - BGC's strategic focus includes expanding its electronic trading capabilities and enhancing market data services through its Fenics platform[12]. Acquisitions and Corporate Structure - The company completed the acquisition of ContiCap SA on November 1, 2023, enhancing its service offerings in the financial sector[10]. - The company acquired Sage Energy Partners, LP on October 1, 2024, enhancing its energy and environmental brokerage capabilities[16]. - The acquisition of OTC Global was completed on April 1, 2025, for a total purchase price consideration of $309.283 million[94][98]. - The Corporate Conversion on July 1, 2023, transitioned BGC Partners to a full C-Corporation, simplifying its organizational structure[53]. - BGC Partners and BGC Holdings became wholly owned subsidiaries of BGC Group effective July 1, 2023, transitioning to a simplified "Full C-Corporation" structure[11]. Financial Position and Capital Structure - BGC Group's total assets increased to $2.5 billion as of September 30, 2025, up from $2.2 billion at the end of 2024[6]. - The company issued $700 million in 6.150% senior notes, maturing on April 2, 2030, to strengthen its capital structure[9]. - The company has a maximum revolving loan balance of $700.0 million under its unsecured senior revolving credit agreement, with a maturity date of April 26, 2027[16]. - Total liabilities increased to $4,683,430,000 from $2,512,728,000, marking a rise of around 86%[31]. - Stockholders' equity grew to $965,317,000 from $898,507,000, reflecting an increase of about 7.4%[31]. Cash Flow and Investments - BGC Group's cash flow from operations for the nine months ended September 30, 2025, was $90 million, a 15% increase from the previous year[6]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $213,938,000, significantly higher than $63,462,000 in 2024[37]. - The company reported a net cash used in investing activities of $319,960,000 for the nine months ended September 30, 2025, compared to $207,106,000 in 2024[39]. Market Risks and Challenges - The company anticipates potential impacts from macroeconomic challenges, including inflation rates and global interest rate fluctuations[20]. - The company is navigating risks associated with geopolitical tensions, particularly the conflict between Ukraine and Russia[20]. - The company is committed to managing the risks inherent in operating its cryptocurrency business and safeguarding cryptocurrency assets[20]. Regulatory and Accounting Changes - BGC adopted ASU No. 2022-04, requiring disclosure of supplier finance program obligations, effective January 1, 2023, with no material impact on financial statements[64]. - ASU No. 2022-06 deferred the sunset date for reference rate reform from December 31, 2022, to December 31, 2024, with no impact on financial statements[65]. - ASU No. 2023-07 will require enhanced segment disclosures starting January 1, 2024, with interim disclosures effective January 1, 2025, and no material impact on financial statements[66]. Shareholder Activities - The company declared dividends of $0.02 per share for both the three and nine months ended September 30, 2025, consistent with the previous year[42]. - BGC Group, Inc. repurchased 4,236,069 shares of Class A common stock for $41,914,000 during the three months ended September 30, 2025[40]. - The company has a structured approach to address leadership transitions following the appointment of new Co-Chief Executive Officers[21].

Financial Data and Key Metrics Changes - The company reported record third quarter revenues of $737 million, a 31% increase from $561 million a year ago [4] - Adjusted earnings grew by 22.4% to $155.1 million, with post-tax adjusted earnings increasing by 11.5% to $141.1 million, resulting in post-tax adjusted earnings per share of $0.29 [12] - Adjusted EBITDA increased by 10.7% to $167.6 million [12] Business Line Data and Key Metrics Changes - ECS revenues grew by 114% to $241.6 million, driven by OTC and strong organic growth [6] - Rates revenues increased by 12.1% to $195.3 million, reflecting higher volumes across major interest rate products [7] - Foreign exchange revenues were up 15.9% to $106.7 million, primarily due to strong growth in emerging market currencies [7] - Credit revenues increased by 1.6% to $69.1 million, driven by higher credit derivative and structured credit volumes [7] - Equities revenues grew by 13.2% to $60.4 million, reflecting strong European and U.S. equity volumes [7] - Data, network, and post-trade revenues grew by 11.9% to $34.3 million, excluding Capital Lab [8] Market Data and Key Metrics Changes - EMEA revenues increased by 37.4%, Americas revenues increased by 28.1%, and Asia-Pacific revenues increased by 17.4% [11] - The U.S. Treasury market share grew to an all-time high of 37%, significantly outpacing the market [5] - FMX UST generated record third quarter average daily volume of $59.4 billion, more than 12% higher compared to last year [9] Company Strategy and Development Direction - The company is focused on enhancing profitability and margins through a $25 million cost reduction program, expected to be completed by year-end [5] - The company aims to continue growing SOFR ADV and open interest, with expectations for similar adoption in U.S. Treasury Futures offerings in 2026 [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong growth in a mixed macro environment, highlighting the strength and scale of its global platform [4] - The company anticipates generating revenues of between $720 million and $770 million in the fourth quarter of 2025, representing approximately 30% revenue growth at the midpoint [13] Other Important Information - The company’s liquidity was reported at $924.7 million as of September 30, compared to $897.8 million at year-end 2024 [12] - The board reapproved a share repurchase authorization for up to $400 million [12] Q&A Session Summary Question: What allowed BGC to outperform some of the industry proxies despite a slowdown in on-exchange volumes? - Management attributed the strong performance to targeted growth within the ECS sector and the hiring of around 150 new brokers, which enabled market share gains [16] Question: Can you elaborate on the strong growth in FMX and expectations for FCM onboardings? - Management noted that FMX has successfully onboarded 11 FCMs and achieved significant growth in SOFR futures ADV and open interest, with expectations for continued growth in U.S. Treasuries [18][20] Question: What contributed to the strong share growth in FMX cash markets? - Management indicated that the growth was due to the hard work over several years and the viability of FMX as a second choice in the market, leading to a market share increase to 37% [23] Question: How much leverage does the energy segment have to higher adoption of cloud and AI? - Management acknowledged involvement in energy procurement for data centers, benefiting from relationships established through Newmark [25] Question: Can electronic credit revenues grow at a similar pace as Tradeweb or MarketAxess? - Management expressed confidence that electronic credit revenues can grow at competitive rates, with ongoing launches of new electronic protocols [27]

Financial Data and Key Metrics Changes - The company reported record third quarter revenues of $737 million, a 31% increase from $561 million a year ago [4] - Adjusted earnings grew by 22.4% to $155.1 million, with post-tax adjusted earnings increasing by 11.5% to $141.1 million, resulting in post-tax adjusted earnings per share of $0.29 [12] - Adjusted EBITDA increased by 10.7% to $167.6 million [12] - Liquidity as of September 30 was $924.7 million, up from $897.8 million at year-end 2024 [12] Business Line Data and Key Metrics Changes - ECS revenues grew by 114% to $241.6 million, driven by OTC and strong organic growth [6] - Rates revenues increased by 12.1% to $195.3 million, reflecting higher volumes across major interest rate products [7] - Foreign exchange revenues rose by 15.9% to $106.7 million, primarily due to growth in emerging market currencies [7] - Credit revenues increased by 1.6% to $69.1 million, driven by higher credit derivative volumes [7] - Equities revenues grew by 13.2% to $60.4 million, reflecting strong volumes in European and US equity markets [7] - Data, network, and post-trade revenues grew by 11.9% to $34.3 million, excluding Capital Lab [8] Market Data and Key Metrics Changes - EMEA revenues increased by 37.4%, Americas revenues by 28.1%, and Asia-Pacific revenues by 17.4% [11] - The US Treasury market share grew to an all-time high of 37%, significantly outpacing the market [5] - FMX UST generated record average daily volume of $59.4 billion, more than 12% higher compared to last year [9] Company Strategy and Development Direction - The company is focused on enhancing profitability and margins through a $25 million cost reduction program, expected to be completed by year-end [5] - The company aims to continue growing SOFR ADV and open interest, with expectations for similar adoption in US Treasury Futures offerings in 2026 [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong growth despite a mixed macro environment, highlighting the strength and scale of its global platform [4] - The company anticipates fourth quarter revenues between $720 million and $770 million, representing approximately 30% growth at the midpoint [13] - Pre-tax adjusted earnings are expected to be in the range of $152.5 million to $167.5 million, indicating approximately 24% earnings growth at the midpoint [13] Other Important Information - The company has reapproved a share repurchase authorization for up to $400 million [12] - The fully diluted weighted average share count for adjusted earnings was 494.2 million shares, a slight decrease compared to previous periods [12] Q&A Session Summary Question: What allowed BGC to outperform some industry proxies despite a slowdown in on-exchange volumes? - Management attributed the strong performance to targeted growth within the ECS sector and the hiring of around 150 new brokers, which helped generate significant revenues [16] Question: Can you elaborate on the strong growth in FMX and expectations for FCM onboardings? - Management noted that FMX has successfully onboarded 11 FCMs and achieved significant growth in SOFR futures ADV and open interest, with expectations for continued growth in US Treasury futures [18][20] Question: What contributed to the strong share growth in FMX cash markets? - Management indicated that the growth was due to increased adoption by FMX partners and the platform becoming a viable alternative to existing market options [23] Question: How much leverage does the energy segment have to higher adoption of cloud and AI? - Management acknowledged involvement in energy procurement for data centers, indicating a growing relationship with clients in that sector [25] Question: Can electronic credit revenues grow at a similar pace as Tradeweb or MarketAxess? - Management expressed confidence that electronic credit revenues can grow at competitive rates, with ongoing launches of new electronic protocols [27][28]

Financial Data and Key Metrics Changes - BGC Group reported record third quarter revenues of $737 million, a 31% increase from $561 million a year ago [4] - Adjusted earnings grew by 22.4% to $155.1 million, with post-tax adjusted earnings increasing by 11.5% to $141.1 million, resulting in post-tax adjusted earnings per share of $0.29 [11] - Adjusted EBITDA increased by 10.7% to $167.6 million [11] - The company’s liquidity was $924.7 million as of September 30, compared to $897.8 million at year-end 2024 [11] Business Line Data and Key Metrics Changes - ECS revenues grew by 114% to $241.6 million, driven by OTC and strong organic growth [6] - Rates revenues increased by 12.1% to $195.3 million, reflecting higher volumes across major interest rate products [6] - Foreign exchange revenues rose by 15.9% to $106.7 million, primarily due to growth in emerging market currencies [6] - Credit revenues increased by 1.6% to $69.1 million, while equities revenues grew by 13.2% to $60.4 million [6] - Data, network, and post-trade revenues grew by 11.9% to $34.3 million, excluding Capital Lab [7] Market Data and Key Metrics Changes - EMEA revenues increased by 37.4%, Americas revenues by 28.1%, and Asia-Pacific revenues by 17.4% [10] - FMX UST generated record third quarter average daily volume of $59.4 billion, up more than 12% year-over-year, with market share reaching a record 37% [8] - SOFR Futures saw both average daily volume and open interest increase more than threefold compared to the previous quarter [8] Company Strategy and Development Direction - The company is focused on enhancing profitability and margins through a $25 million cost reduction program, expected to be completed by year-end [5] - BGC Group aims to continue growing its market share in various asset classes and geographies, leveraging its global platform [4] - The company is prioritizing the growth of SOFR ADV and open interest, with expectations for similar adoption in US Treasury Futures offerings in 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong growth despite a mixed macro environment, highlighting the strength and scale of its global platform [4] - The outlook for the fourth quarter of 2025 anticipates revenues between $720 million and $770 million, representing approximately 30% growth at the midpoint [13] - Pre-tax adjusted earnings are expected to be in the range of $152.5 million to $167.5 million, indicating approximately 24% earnings growth at the midpoint [14] Other Important Information - The company’s fully diluted weighted average share count for adjusted earnings was 494.2 million shares, a slight decrease compared to the previous year [11] - BGC Group's board reapproved a share repurchase authorization for up to $400 million [11] Q&A Session Summary Question: What allowed BGC to outperform some industry proxies despite a slowdown in on-exchange volumes? - Management attributed the strong performance to targeted growth within the ECS sector and the hiring of around 150 new brokers, which helped gain market share [17] Question: Can you elaborate on the strong growth in FMX and expectations for FCM onboardings? - Management noted that FMX is in its second year, with significant growth in SOFR futures and onboarding of 11 FCMs, indicating a positive trajectory for future growth [19][20] Question: What contributed to the strong share growth in FMX cash markets? - The growth was attributed to the hard work over several years and further adoption by FMX partners, positioning it as a viable alternative to existing market leaders [25] Question: How does the energy segment leverage higher adoption of cloud and AI? - Management indicated that while direct revenue impact may be limited, there is involvement in energy procurement for data centers, benefiting from relationships established through Newmark [27] Question: What is the outlook for electronic credit revenues? - Management expressed confidence in the growth potential of electronic credit, highlighting the launch of new electronic protocols and the shift towards more electronic markets [29][30]

Core Viewpoint - BGC Group reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and showing an increase from $0.26 per share a year ago, indicating a positive earnings surprise of +3.57% [1][2] Financial Performance - The company achieved revenues of $736.85 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.09%, and up from $561.11 million in the same quarter last year [2] - Over the last four quarters, BGC Group has exceeded consensus revenue estimates four times [2] Stock Performance - BGC Group shares have increased by approximately 0.7% since the beginning of the year, in contrast to the S&P 500's gain of 15.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $734.4 million, and for the current fiscal year, it is $1.17 on revenues of $2.92 billion [7] - The trend of estimate revisions for BGC Group was mixed prior to the earnings release, which may change following the recent results [6] Industry Context - The Financial - Investment Bank industry, to which BGC Group belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Q3 2025 Performance Highlights - BGC Group achieved record Q3 revenues of $736.8 million, a 31.3% increase year-over-year from $561.1 million in Q3 2024[10] - GAAP net income for fully diluted shares increased by 88.6% to $26.8 million, compared to $14.2 million in the same period last year[10] - Pre-tax Adjusted Earnings reached a record $155.1 million, up 22.4% from $126.7 million in Q3 2024[10, 11] - Post-tax Adjusted Earnings increased by 11.5% to $141.1 million, compared to $126.6 million in the previous year[10] - GAAP fully diluted earnings per share doubled, reaching $0.06 compared to $0.03 in Q3 2024[10] - Post-tax Adjusted Earnings per share increased by 11.5% to $0.29, up from $0.26 in the prior year[10] Revenue Breakdown and Growth - ECS (Energy, Commodities, and Shipping) revenues saw a significant increase of 114.0%, reaching $241.6 million[16] - Total brokerage revenues increased by 34.4% to $673.1 million, compared to $500.6 million in Q3 2024[16] - EMEA region experienced the highest revenue growth at 37.4%, with revenues reaching $385.9 million[28] FMX Performance - FMX UST achieved a record Q3 volume, exceeding $59 billion[54, 68] - FMX UST ADV Growth increased 12% year-over-year[55, 68]

Financial Performance - BGC Group reported record third quarter revenues of $737 million, a 31.3% increase from $561 million a year ago[3]. - Adjusted Earnings before noncontrolling interest increased by 22.4% to $155.1 million, while post-tax Adjusted Earnings rose 11.5% to $141.1 million[7]. - Total revenues for the three months ended September 30, 2025, were $736,849,000, a 31% increase from $561,111,000 in the same period of 2024[30]. - Consolidated net income for the three months ended September 30, 2025, was $26,062,000, compared to $13,713,000 for the same period in 2024, reflecting an increase of 90%[30]. - Basic earnings per share for the three months ended September 30, 2025, were $0.06, up from $0.03 in the same period of 2024[32]. - GAAP net income available to common stockholders for Q3 2025 was $27,882,000, compared to $14,747,000 in Q3 2024, representing an increase of 89.0%[66]. - Adjusted Earnings before noncontrolling interest in subsidiaries and taxes for Q3 2025 was $155,102,000, up from $126,736,000 in Q3 2024, a growth of 22.4%[66]. - Total revenues for Q3 2025 reached $737,000,000, a 31.3% increase from $561,000,000 in Q3 2024[82]. Revenue Breakdown - Total brokerage revenues grew by 34.4% to $673.1 million, with ECS revenues surging 114.0% to $241.6 million[6]. - ECS (Energy, Commodities, and Shipping) revenues surged by 114.0% to $242,000,000 in Q3 2025, compared to $113,000,000 in Q3 2024[82]. - Fenics revenues increased by 12.7% to $160.0 million, with Fenics Markets revenues rising 12.5% to $134.1 million[9]. - Fenics revenues for Q3 2025 were $160,000,000, reflecting a 12.7% increase from $142,000,000 in Q3 2024[84]. Assets and Liabilities - Total assets increased to $5,825,151,000 as of September 30, 2025, up from $3,591,967,000 at December 31, 2024, representing a growth of approximately 62%[27]. - Total liabilities rose to $4,683,430,000 as of September 30, 2025, compared to $2,512,728,000 at December 31, 2024, indicating a 86% increase[27]. - Total stockholders' equity increased to $965,317,000 as of September 30, 2025, from $898,507,000 at December 31, 2024, marking a growth of approximately 7.4%[27]. Compensation and Expenses - Compensation and employee benefits under GAAP rose by 47.5% to $400.3 million, attributed to higher commissionable revenues and the acquisition of OTC[13]. - Total compensation and employee benefits for the three months ended September 30, 2025, were $474,709,000, a 33% increase from $356,997,000 in the same period of 2024[30]. - The company reported total non-compensation expenses of $230,899,000 for the three months ended September 30, 2025, compared to $191,041,000 in the same period of 2024, reflecting a 21% increase[30]. Future Outlook - The company anticipates fourth quarter revenues between $720 million and $770 million, compared to $572.3 million in the same quarter last year[21]. - BGC's cost reduction program of $25 million is expected to enhance profitability and margins by year-end 2025[3]. Shareholder Information - BGC declared a quarterly cash dividend of $0.02 per share, payable on December 10, 2025[22]. - The fully diluted weighted-average share count for Adjusted Earnings decreased by 1.2% to 494.2 million compared to the second quarter of 2025[19]. - Fully diluted weighted-average shares of common stock outstanding for Q3 2025 were 494,248, down from 494,837 in Q3 2024[75]. Adjusted Earnings and Metrics - BGC's Adjusted Earnings exclude various GAAP items that management believes do not reflect the Company's underlying performance, including compensation-related items and restructuring charges[40]. - The calculation of Adjusted Earnings may exclude non-cash GAAP charges related to acquisitions, asset impairments, and litigation resolutions that are considered non-recurring[42]. - BGC's Adjusted EBITDA is defined as GAAP net income available to common stockholders, adjusted to eliminate the effects of financing, income taxes, and capital spending[55]. - Management believes that Adjusted Earnings provide a clearer understanding of BGC's financial performance and should be considered alongside GAAP results[53]. - BGC's non-GAAP tax provision is calculated by adjusting pre-tax Adjusted Earnings for deductible charges, which can lower the effective tax rate and increase post-tax Adjusted Earnings[47]. - The Company incurs income tax expenses based on the jurisdictional taxing authorities of its subsidiaries, with certain entities taxed as U.S. partnerships[48]. Liquidity - Cash and cash equivalents as of September 30, 2025, were $774,940,000, an increase from $711,584,000 as of December 31, 2024[78]. - Total liquidity as of September 30, 2025, was $924,719,000, compared to $897,781,000 at the end of 2024[78]. - BGC's liquidity is defined as the sum of cash and cash equivalents, financial instruments owned at fair value, less securities lent out, which is crucial for assessing available cash[60].