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].

Core Insights - Interactive Brokers (IBKR) and BGC Group (BGC) are key players in the brokerage and financial services sector, each targeting different market niches while utilizing advanced technology and electronic trading infrastructure [1][2]. Group 1: Business Models and Market Focus - IBKR focuses on low-cost, technology-driven execution, catering to professional traders, hedge funds, and sophisticated retail investors [2]. - BGC specializes in brokerage services for fixed income, rates, credit, and energy markets, along with data, analytics, and software solutions [2][9]. Group 2: Recent Performance and Growth Potential - Both firms have benefited from increased investor participation in volatile markets, but IBKR is noted for its technological superiority and consistent revenue growth [3][4]. - IBKR's total net revenues have shown a compound annual growth rate (CAGR) of 21.8% from 2019 to 2024, with continued growth expected in 2025 [5]. - BGC's revenues have seen a CAGR of 1.5% over the past five years, indicating slower growth compared to IBKR [13]. Group 3: Innovations and Product Offerings - IBKR has introduced several innovative features, including zero-commission trading in Singapore and the Impact Dashboard for sustainable investing [6][7]. - BGC has enhanced its electronic trading capabilities through its Fenics platform and has made strategic acquisitions to strengthen its market position in energy and commodities [9][11]. Group 4: Financial Metrics and Valuation - IBKR's 2025 revenue estimates are projected at $5.80 billion, with earnings expected to grow by 14.8% year-over-year [14][15]. - BGC's 2025 revenue estimates are pegged at $2.92 billion, with a higher year-over-year growth rate of 29% [16][17]. - IBKR's current price-to-book (P/B) ratio is 5.98, while BGC's is lower at 3.97, indicating BGC may be more attractive from a valuation perspective [20]. Group 5: Investment Sentiment and Analyst Ratings - IBKR has gained 55.4% in stock price this year, reflecting strong investor sentiment, while BGC's stock has only increased by 2.3% [19]. - Analysts have a bullish outlook on IBKR, ranking it as a Strong Buy, while BGC holds a Hold rating, suggesting a more cautious approach [28].

Core Insights - The new earnings-reporting season has commenced for major banks, which may lead to a temporary decline in insider buying of stocks [1] Group 1 - Major banks have begun reporting their earnings, indicating the start of a significant financial period [1] - Insider buying of stocks is expected to be muted during this earnings-reporting season [1]

Core Insights - BGC Group, Inc. has made a strategic acquisition of Macro Hive Limited to enhance its agency business with AI-driven technology, particularly in the Rates and FX markets [2][5] - The current stock price of BGC is $8.99, reflecting a decrease of 2.39% with a market capitalization of approximately $4.29 billion [3][4][5] - Lutnick Brandon, a director and 10 percent owner of BGC, purchased 3,946,149 shares of Class B Common Stock, indicating confidence in the company's future [1][5] Company Overview - BGC Group, Inc. is a global brokerage and financial technology company known for its comprehensive services in the financial markets [1] - The company is actively engaging investors, as indicated by a trading volume of 2,536,786 shares on the NASDAQ exchange [4] Market Performance - BGC's stock has experienced volatility over the past year, with a high of $11.79 and a low of $7.24 [3] - The stock price has fluctuated between $8.98 and $9.27 on the day of reporting [3]

Core Insights - BGC Group, Inc. has announced the acquisition of Macro Hive Limited, enhancing its global brokerage and financial technology services with AI-powered data analytics [1][2] Company Overview - BGC Group, Inc. is a leading global marketplace and financial technology services company, offering a wide range of products including fixed income, foreign exchange, energy, commodities, shipping, and equities [4] - The company serves a diverse clientele, including major banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, and investment firms [4] Acquisition Details - The acquisition of Macro Hive will integrate its AI-driven technology into BGC's existing platform, particularly in the Rates and FX markets [2] - Macro Hive's co-founders, CEO Bilal Hafeez and COO Andrew Simon, will join BGC to enhance innovation and strengthen its market position [2][3] Strategic Goals - The integration aims to set a new standard for agency services by providing tech-forward insights and proven expertise [3] - Both companies express a commitment to delivering innovative, AI-driven insights that empower institutional investors and corporates to make informed decisions [3]

Core Viewpoint - BGC Group is currently viewed as a better value opportunity compared to MarketAxess based on various financial metrics and analyst outlooks [1][7]. Valuation Metrics - BGC Group has a forward P/E ratio of 7.85, significantly lower than MarketAxess's forward P/E of 22.84 [5]. - BGC's PEG ratio stands at 0.37, indicating a more favorable valuation relative to its expected EPS growth, while MarketAxess has a PEG ratio of 3.31 [5]. - The P/B ratio for BGC is 3.97, compared to MarketAxess's P/B of 4.62, suggesting BGC is more attractively valued in terms of market value versus book value [6]. Analyst Outlook - BGC Group holds a Zacks Rank of 2 (Buy), indicating stronger earnings estimate revision activity, while MarketAxess has a Zacks Rank of 3 (Hold) [3]. - The improving analyst outlook for BGC suggests a more favorable investment environment compared to MarketAxess [3][7]. Value Grades - BGC Group has achieved a Value grade of A, while MarketAxess has a Value grade of D, reflecting the differences in their valuation metrics [6].

Group 1 - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] - Value investing aims to identify companies undervalued by the market, relying on traditional analysis of key valuation metrics [2] - Zacks has developed a Style Scores system to find stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are considered strong value stocks [3] Group 2 - BGC Group, Inc. (BGC) has a Zacks Rank of 2 (Buy) and an A grade for Value, with a current P/E ratio of 7.47 compared to the industry average of 14.95 [4] - The P/S ratio for BGC is 1.79, which is lower than the industry's average P/S of 2.34, indicating potential undervaluation [5] - BGC's P/CF ratio is 15.32, which is also favorable compared to the industry's average P/CF of 16.52, suggesting a solid cash outlook [6] - Overall, BGC Group, Inc. appears to be undervalued based on these metrics and has a strong earnings outlook, making it one of the market's strongest value stocks [7]