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]

Core Viewpoint - BGC Group is currently viewed as a better value opportunity compared to MarketAxess based on various valuation metrics and earnings outlook [1][7]. Valuation Metrics - BGC has a forward P/E ratio of 8.50, significantly lower than MarketAxess's forward P/E of 24.68 [5]. - The PEG ratio for BGC is 0.40, indicating a more favorable valuation relative to its expected EPS growth, while MarketAxess has a PEG ratio of 3.58 [5]. - BGC's P/B ratio stands at 4.3, compared to MarketAxess's P/B of 4.99, suggesting BGC is relatively undervalued [6]. Earnings Outlook - BGC is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimate revisions [3][7].

Group 1: Company Overview - Robinhood Markets (HOOD) focuses on retail investors with a commission-free trading platform, while BGC Group (BGC) serves institutional clients with brokerage and financial technology solutions [1][2] - Robinhood has evolved into a "financial super-app" offering social networking, AI tools, and futures trading, whereas BGC is recognized for its electronic trading and market data services [2][11] Group 2: Financial Performance - Robinhood is set to join the S&P 500 on September 22, indicating its growth and reliability, and has shown a return to profitability driven by retail trading and higher interest income [4][6] - BGC Group has sharpened its focus on capital markets and fintech operations post its commercial real estate spin-off, enhancing margins and reducing reliance on traditional models [12][14] Group 3: Growth Prospects - Robinhood's sales are projected to grow by 35.8% in 2025 and 19.3% in 2026, with strong results driven by crypto and options trading [7][10] - BGC's sales estimates suggest a growth of 29.4% in 2025 and 11.1% in 2026, bolstered by acquisitions in the energy sector [14][16] Group 4: Earnings Estimates - HOOD's earnings estimates for 2025 and 2026 indicate growth of 42.2% and 20.8%, respectively, reflecting a positive outlook [17][19] - BGC's earnings estimates for the same period suggest a rise of 19.2% and 16.5%, indicating stable growth [20][21] Group 5: Price Performance and Valuation - HOOD shares have increased by 218.1% this year, while BGC shares have risen by only 10.7%, indicating stronger investor optimism for Robinhood [22][25] - HOOD's price-to-book ratio is 13.05X, significantly higher than BGC's 4.30X, suggesting that Robinhood is more expensive relative to its book value [25][27] Group 6: Strategic Positioning - Robinhood is aggressively expanding its retail-focused ecosystem, while BGC is reinforcing its position in institutional markets, particularly in energy and commodities [28][29] - The inclusion of Robinhood in the S&P 500 and its diversification into crypto derivatives and futures highlight its evolving market relevance [29][30]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides key identification details for BGC Group, Inc. as a registrant filing a Quarterly Report on Form 10-Q for the period ended June 30, 2025, including its incorporation state, address, and stock exchange listing - **BGC Group, Inc.** is filing a Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) - As of August 8, 2025, the registrant had **364,862,092 shares** of **Class A common stock** and **109,452,953 shares** of **Class B common stock outstanding**[4](index=4&type=chunk) Condensed Consolidated Statements of Financial Condition (in thousands) | Title of each class | Symbol(s) | Name of each exchange on which registered | | :------------------ | :-------- | :---------------------------------------- | | Class A Common Stock, $0.01 par value | BGC | The Nasdaq Stock Market, LLC | [Table of Contents](index=2&type=section&id=Table%20of%20Contents) [Glossary of Terms, Abbreviations and Acronyms](index=3&type=section&id=GLOSSARY%20OF%20TERMS,%20ABBREVIATIONS%20AND%20ACRONYMS) [Special Note on Forward-Looking Information](index=12&type=section&id=SPECIAL%20NOTE%20ON%20FORWARD-LOOKING%20INFORMATION) [Where You Can Find More Information](index=16&type=section&id=WHERE%20YOU%20CAN%20FIND%20MORE%20INFORMATION) [PART I—FINANCIAL INFORMATION](index=17&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [ITEM 1. Financial Statements (unaudited)](index=17&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements of BGC Group, Inc. for the periods ended June 30, 2025, and December 31, 2024, including statements of financial condition, operations, comprehensive income (loss), cash flows, and changes in equity, along with detailed notes [Condensed Consolidated Statements of Financial Condition](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) The Condensed Consolidated Statements of Financial Condition show a significant increase in total assets and liabilities for BGC Group, Inc. from December 31, 2024, to June 30, 2025, primarily driven by acquisitions and operational changes - **Total assets increased by $1.30 billion** (**36.2%**) from December 31, 2024, to June 30, 2025, **primarily due to the acquisition of OTC Global** and **increases in receivables and cash**[30](index=30&type=chunk)[443](index=443&type=chunk) - **Total liabilities increased by $1.27 billion** (**50.6%**) over the same period, **largely driven by increased notes payable and other borrowings**[30](index=30&type=chunk) Condensed Consolidated Statements of Financial Condition (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :------------------ | | **Assets** | | | | Cash and cash equivalents | $827,844 | $711,584 | | Financial instruments owned, at fair value | $139,470 | $186,197 | | Receivables from broker-dealers, clearing organizations, customers and related broker-dealers | $951,387 | $365,490 | | Accrued commissions and other receivables, net | $526,742 | $324,213 | | Loans, forgivable loans and other receivables from employees and partners, net | $468,259 | $360,060 | | Goodwill | $625,648 | $540,290 | | Other intangible assets, net | $445,771 | $240,910 | | Total assets | $4,892,042 | $3,591,967 | | **Liabilities** | | | | Accrued compensation | $309,565 | $227,869 | | Payables to broker-dealers, clearing organizations, customers and related broker-dealers | $777,209 | $225,377 | | Notes payable and other borrowings | $1,917,835 | $1,337,540 | | Total liabilities | $3,783,359 | $2,512,728 | | **Equity** | | | | Total stockholders' equity | $930,462 | $898,507 | | Total equity | $1,108,683 | $1,079,239 | [Condensed Consolidated Statements of Operations](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) BGC Group, Inc. reported substantial revenue and net income growth for both the three and six months ended June 30, 2025, compared to the prior year periods, driven by increased commissions and principal transactions, partially offset by higher expenses - **Total revenues increased by 42.3%** for the three months and **28.2%** for the six months ended June 30, 2025, compared to the prior year periods[32](index=32&type=chunk)[382](index=382&type=chunk)[385](index=385&type=chunk) - **Consolidated net income increased by 51.2%** for the three months and **27.2%** for the six months ended June 30, 2025, compared to the prior year periods[32](index=32&type=chunk) Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $784,004 | $550,761 | $1,448,244 | $1,129,375 | | Total expenses | $711,686 | $500,155 | $1,298,208 | $1,048,223 | | Consolidated net income (loss) | $56,215 | $37,175 | $109,644 | $86,216 | | Net income (loss) available to common stockholders | $57,545 | $37,828 | $112,709 | $87,038 | | Basic earnings (loss) per share | $0.11 | $0.08 | $0.22 | $0.17 | | Fully diluted earnings (loss) per share | $0.11 | $0.08 | $0.22 | $0.17 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=19&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The Condensed Consolidated Statements of Comprehensive Income (Loss) show an increase in comprehensive income for both the three and six months ended June 30, 2025, primarily driven by consolidated net income and positive foreign currency translation adjustments - **Foreign currency translation adjustments shifted from a loss of $6.7 million** in Q2 2024 to a **gain of $13.0 million** in Q2 2025, **significantly contributing to comprehensive income**[33](index=33&type=chunk) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consolidated net income (loss) | $56,215 | $37,175 | $109,644 | $86,216 | | Foreign currency translation adjustments | $13,009 | $(6,678) | $19,332 | $(11,507) | | Comprehensive income (loss) | $69,224 | $30,497 | $128,976 | $74,709 | | Comprehensive income (loss) attributable to common stockholders | $70,170 | $31,190 | $131,487 | $75,712 | [Condensed Consolidated Statements of Cash Flows](index=20&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows show a significant increase in net cash provided by operating activities for the six months ended June 30, 2025, compared to the prior year, while investing activities used more cash due to acquisitions, and financing activities provided more cash from debt issuances - **Net cash provided by operating activities improved significantly from a use of $24.9 million** in H1 2024 to a **provision of $72.1 million** in H1 2025[36](index=36&type=chunk) - **Payments for acquisitions, net of cash acquired, totaled $263.4 million** in H1 2025, compared to none in H1 2024, **contributing to increased cash used in investing activities**[38](index=38&type=chunk) - **Issuance of long-term debt, net of deferred issuance costs, significantly increased cash from financing activities to $1.20 billion** in H1 2025, up from **$770.0 million** in H1 2024[38](index=38&type=chunk) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $72,078 | $(24,858) | | Net cash provided by (used in) investing activities | $(293,588) | $(216,437) | | Net cash provided by (used in) financing activities | $323,297 | $158,966 | | Net increase (decrease) in Cash and cash equivalents, and Cash segregated under regulatory requirements | $108,806 | $(86,751) | | Cash and cash equivalents, and Cash segregated under regulatory requirements at end of period | $842,079 | $586,145 | [Condensed Consolidated Statements of Changes in Equity](index=22&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) The Condensed Consolidated Statements of Changes in Equity reflect an increase in total equity for BGC Group, Inc. for the six months ended June 30, 2025, driven by consolidated net income and equity-based compensation, despite significant share repurchases and dividend payments - **Total equity increased by $29.4 million** from January 1, 2025, to June 30, 2025, **reaching $1.11 billion**[41](index=41&type=chunk) - The company **repurchased 18,572,136 shares** of **Class A common stock** for **$171.6 million** during the six months ended June 30, 2025[41](index=41&type=chunk) - **Dividends declared per share of common stock were $0.04** for the six months ended June 30, 2025, up from **$0.03** in the prior year[41](index=41&type=chunk) Condensed Consolidated Statements of Changes in Equity (in thousands, except share amounts) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :----------------------------- | :----------------------------- | | Balance, January 1 | $1,079,239 | $898,156 | | Consolidated net income (loss) | $109,644 | $86,216 | | Equity-based compensation | $86,791 | $85,549 | | Dividends to common stockholders | $(19,564) | $(14,683) | | Repurchase of Class A common stock | $(171,635) | $(148,090) | | Balance, June 30 | $1,108,683 | $1,041,870 | [Notes to Condensed Consolidated Financial Statements](index=26&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the unaudited condensed consolidated financial statements, covering critical accounting policies, acquisitions, related party transactions, debt, equity, and regulatory requirements, offering context to the financial performance and position [Note 1. Organization and Basis of Presentation](index=26&type=section&id=Note%201%20Organization%20and%20Basis%20of%20Presentation) BGC Group, Inc. is a global marketplace, data, and financial technology company specializing in brokerage and trade execution across ECS and financial markets. The company completed a Corporate Conversion on July 1, 2023, simplifying its organizational structure from an Umbrella Partnership C-Corporation to a Full C-Corporation, with BGC Group becoming the public holding company. Recent changes in the Board of Directors and executive officers include the appointment of Co-Chief Executive Officers following Mr. Howard W. Lutnick's departure - **BGC** is a **leading global marketplace, data, and financial technology company** across the ECS and financial markets, specializing in brokerage and trade execution[50](index=50&type=chunk) - On July 1, 2023, **BGC Partners completed a Corporate Conversion to a Full C-Corporation**, **making BGC Group the public holding company** and successor to BGC Partners[53](index=53&type=chunk) - On February 18, 2025, **Mr. Howard W. Lutnick stepped down as Chairman and CEO**, and **John J. Abularrage, JP Aubin, and Sean A. Windeatt were appointed as Co-Chief Executive Officers**[60](index=60&type=chunk) [Note 2. Limited Partnership Interests in BGC Holdings and Newmark Holdings](index=30&type=section&id=Note%202%20Limited%20Partnership%20Interests%20in%20BGC%20Holdings%20and%20Newmark%20Holdings) This note details the historical structure of limited partnership interests in BGC Holdings and Newmark Holdings, including Founding/Working Partner Units (FPUs), Limited Partnership Units (LPUs), and Cantor Units. The Corporate Conversion on July 1, 2023, terminated BGC Holdings LPUs, converting them into BGC Group equity awards, while Newmark Holdings LPUs held by BGC employees remain unaffected - **Prior to the Corporate Conversion**, BGC Partners operated through BGC Holdings, which had various **limited partnership interests** (FPUs, LPUs, Cantor Units)[75](index=75&type=chunk) - The **Corporate Conversion on July 1, 2023, resulted in the termination of BGC Holdings limited partnership agreement**, **converting all BGC Holdings units into BGC Group equity awards**[59](index=59&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - **Newmark Holdings LPUs held by BGC employees were not impacted by the Corporate Conversion** and continue to receive quarterly allocations of net income as compensation expense[79](index=79&type=chunk)[80](index=80&type=chunk) [Note 3. Summary of Significant Accounting Policies](index=33&type=section&id=Note%203%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the Company's significant accounting policies, with no major changes during the six months ended June 30, 2025, except for updates to Commissions revenue recognition due to the OTC Global acquisition, particularly for shipping brokerage fees which are recognized upon delivery - **No significant changes were made to the Company's accounting policies** during the six months ended June 30, 2025[86](index=86&type=chunk) - **Commissions revenues from securities and commodities are recognized at a point in time on the trade-date basis**[87](index=87&type=chunk) - **Shipping brokerage commissions are considered variable consideration** and recognized upon delivery of the underlying commodity[88](index=88&type=chunk) [Note 4. Acquisitions](index=34&type=section&id=Note%204%20Acquisitions) BGC Group completed one acquisition during the six months ended June 30, 2025: OTC Global, an energy and commodities brokerage firm, for $325.0 million. This acquisition significantly expanded the company's ECS business and is expected to generate synergies, with preliminary goodwill recorded at $88.7 million - On April 1, 2025, **BGC Group acquired OTC Global**, an energy and commodities brokerage firm, for **$325.0 million**[91](index=91&type=chunk) - The **acquisition was funded by cash on hand, borrowings from the Revolving Credit Agreement, and debt issuances**, **aiming to expand and diversify the global ECS business**[92](index=92&type=chunk) OTC Global Acquisition Financial Impact (in thousands) | Metric | Amount | | :------------------------------------------------ | :------- | | Total purchase price consideration transferred | $309,283 | | Goodwill recognized | $88,675 | | Finite-lived intangible assets acquired | $219,400 | | Revenues included (April 1 - June 30, 2025) | $118,301 | | Consolidated net income included (April 1 - June 30, 2025) | $11,967 | [Note 5. Divestitures](index=36&type=section&id=Note%205%20Divestitures) BGC Group reported no divestitures or sales of investments during both the three and six months ended June 30, 2025, and 2024 - The Company had **no divestitures or sale of investments** during both the six months ended June 30, 2025 and 2024[105](index=105&type=chunk) [Note 6. Earnings Per Share](index=37&type=section&id=Note%206%20Earnings%20Per%20Share) BGC Group, Inc. reported basic and fully diluted earnings per share of $0.11 for the three months and $0.22 for the six months ended June 30, 2025, showing an increase from the prior year periods. Potentially dilutive securities, primarily RSUs and restricted stock awards, were excluded if their effect was anti-dilutive - Approximately **15.5 million** and **15.9 million potentially dilutive securities were excluded from fully diluted EPS** for the three and six months ended June 30, 2025, respectively, **due to their anti-dilutive effect**[108](index=108&type=chunk) - **Contingent shares and non-participating equity awards totaling 54.2 million** as of June 30, 2025, **were excluded from diluted EPS** as issuance conditions had not been met[109](index=109&type=chunk) Basic and Fully Diluted EPS (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic earnings (loss) per share | $0.11 | $0.08 | $0.22 | $0.17 | | Fully diluted earnings (loss) per share | $0.11 | $0.08 | $0.22 | $0.17 | | Basic weighted-average shares outstanding | 480,138 | 475,272 | 479,655 | 472,895 | | Fully diluted weighted-average shares outstanding | 484,636 | 480,861 | 485,090 | 479,417 | [Note 7. Stock Transactions and Unit Redemptions](index=38&type=section&id=Note%207%20Stock%20Transactions%20and%20Unit%20Redemptions) BGC Group's Class A common stock outstanding decreased due to significant treasury stock repurchases, including a large sale from Mr. Howard W. Lutnick, partially offset by issuances for equity awards and acquisitions. The company's share repurchase authorization remains at $400.0 million, with $178.4 million remaining as of June 30, 2025 - The Company **repurchased 17.2 million shares** of **Class A common stock** for **$158.6 million** in Q2 2025, including **16.1 million shares** from Mr. Howard W. Lutnick[117](index=117&type=chunk) - As of June 30, 2025, **$178.4 million remained under the $400.0 million Share Repurchase Authorization**[116](index=116&type=chunk) Changes in Class A Common Stock Outstanding (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :------------------------------------------ | :------------------------------- | :----------------------------- | | Shares outstanding at beginning of period | 378,134 | 374,297 | | Total Share issuances | 5,375 | 12,677 | | Restricted stock forfeitures | (102) | (373) | | Treasury stock repurchases | (17,224) | (20,408) | | Shares outstanding at end of period | 366,193 | 366,193 | [Note 8. Financial Instruments Owned, at Fair Value](index=40&type=section&id=Note%208%20Financial%20Instruments%20Owned,%20at%20Fair%20Value) Financial instruments owned by BGC Group, primarily U.S. Treasury bills for liquidity, decreased to $139.5 million as of June 30, 2025, from $186.2 million at December 31, 2024. The company recognized minimal unrealized net gains from mark-to-market adjustments on these instruments - **Financial instruments owned, at fair value**, primarily U.S. Treasury bills, **decreased to $139.5 million** as of June 30, 2025, from **$186.2 million** at December 31, 2024[120](index=120&type=chunk) - The Company recognized **unrealized net gains of $0.1 million** for the six months ended June 30, 2025, from mark-to-market adjustments on these instruments[120](index=120&type=chunk) [Note 9. Collateralized Transactions](index=40&type=section&id=Note%209%20Collateralized%20Transactions) BGC Group had no Repurchase Agreements or Reverse Repurchase Agreements outstanding as of both June 30, 2025, and December 31, 2024 - The Company had **no Repurchase Agreements outstanding** as of June 30, 2025, and December 31, 2024[121](index=121&type=chunk) - The Company had **no Reverse Repurchase Agreements outstanding** as of June 30, 2025, and December 31, 2024[123](index=123&type=chunk) [Note 10. Receivables from and Payables to Broker-Dealers, Clearing Organizations, Customers and Related Broker-Dealers](index=41&type=section&id=Note%2010%20Receivables%20from%20and%20Payables%20to%20Broker-Dealers,%20Clearing%20Organizations,%20Customers%20and%20Related%20Broker-Dealers) Receivables from broker-dealers, clearing organizations, customers, and related broker-dealers significantly increased to $951.4 million as of June 30, 2025, from $365.5 million at December 31, 2024, primarily due to higher contract values of fails to deliver. Payables also increased substantially to $777.2 million from $225.4 million over the same period - **Receivables from broker-dealers, clearing organizations, customers and related broker-dealers increased by 160.3%** from December 31, 2024, to June 30, 2025[125](index=125&type=chunk) - **Payables to broker-dealers, clearing organizations, customers and related broker-dealers increased by 244.7%** over the same period[125](index=125&type=chunk) Receivables and Payables (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :------------------ | | Receivables from broker-dealers, clearing organizations, customers and related broker-dealers | $951,387 | $365,490 | | Contract values of fails to deliver | $775,393 | $213,409 | | Payables to broker-dealers, clearing organizations, customers and related broker-dealers | $777,209 | $225,377 | | Contract values of fails to receive | $747,651 | $201,301 | [Note 11. Derivatives](index=41&type=section&id=Note%2011%20Derivatives) BGC Group engages in derivative contracts, primarily FX swaps, forwards, interest rate swaps, and futures, to facilitate client transactions and hedge positions. The notional amounts of these contracts significantly increased from December 31, 2024, to June 30, 2025, reflecting higher derivative activity, with net gains reported in principal transactions - **Total notional amounts of derivative contracts increased from $10.11 billion** at December 31, 2024, to **$62.64 billion** at June 30, 2025, **primarily driven by interest rate swaps**[127](index=127&type=chunk) Derivative Contracts Fair Value and Notional Amounts (in thousands) | Derivative Contract | June 30, 2025 Assets | June 30, 2025 Liabilities | June 30, 2025 Notional Amounts | December 31, 2024 Assets | December 31, 2024 Liabilities | December 31, 2024 Notional Amounts | | :------------------ | :------------------- | :---------------------- | :----------------------------- | :----------------------- | :------------------------ | :----------------------------- | | FX swaps | $901 | $1,217 | $1,332,685 | $4,810 | $3,679 | $635,790 | | Forwards | $397 | $216 | $1,280,782 | $409 | $751 | $185,821 | | Interest rate swaps | $18 | $— | $52,266,392 | $— | $— | $534,085 | | Futures | $— | $826 | $7,758,139 | $165 | $— | $8,758,848 | | Total | $1,316 | $2,259 | $62,637,998 | $5,384 | $4,430 | $10,114,544 | Gains on Derivative Contracts (in thousands) | Derivative Contract | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Futures | $5,354 | $2,833 | $9,931 | $6,639 | | Interest rate swaps | $2,994 | $1,832 | $5,376 | $3,928 | | FX swaps | $1,208 | $558 | $2,029 | $1,056 | | FX/commodities options | $141 | $57 | $235 | $104 | | Gains, net | $9,697 | $5,280 | $17,571 | $11,727 | [Note 12. Fair Value of Financial Assets and Liabilities](index

Financial Performance - BGC Group reported record GAAP revenue of $784.0 million for Q2 2025, exceeding analyst estimates of $768.7 million, representing a year-over-year increase of 42.3% from $550.8 million in Q2 2024 [1][2] - Non-GAAP earnings per share (EPS) matched expectations at $0.31, a significant increase of 34.8% from $0.23 in the prior year [2] - Adjusted EBITDA rose to $213.3 million, up 31.4% from $162.4 million in Q2 2024 [2] - GAAP net income for fully diluted shares increased by 52.9% to $55.1 million compared to $36.1 million in the same quarter last year [2] Business Segments and Growth Drivers - The Energy, Commodities, and Shipping (ECS) segment revenue surged by 122.2% to $261.6 million, significantly aided by the acquisition of OTC Global Holdings, with organic ECS revenue still climbing 27% [5] - The Fenics division, focusing on electronic trading platforms, saw revenues grow by 18.6% year over year to $162.9 million, with Fenics Growth Platforms increasing by 29.6% [6] - The Equities segment experienced a 43.8% rise to $73.9 million, driven by strong market share gains in EMEA and the Americas [7] - Rates and Foreign Exchange segments also reported over 20% growth, while Data, Network, and Post-trade services increased by 15.1% [7] Expense and Debt Management - Compensation and employee benefits under GAAP rose by 53.1% year over year, while non-compensation expenses increased by 30.5%, reflecting integration costs from the OTC acquisition [8] - Total debt rose to $1.92 billion as of June 30, 2025, up from $1.34 billion at the end of 2024, indicating funding for acquisitions and growth initiatives [8] - Liquidity increased to $965.9 million, showcasing a strong cash position [8] Regulatory Compliance and Dividend Policy - The company reported no major compliance issues during the period, continuing to invest in meeting regulatory requirements [9] - The quarterly dividend remained consistent at $0.02 per share, reflecting a stable dividend policy [10] Future Guidance and Strategic Focus - Management provided revenue guidance of $715–$765 million for Q2 2025, indicating around 30.0% growth at the midpoint compared to the previous year [11] - Key areas for future focus include the ramp-up of new products like treasury futures, integration of OTC Global Holdings, and achieving targeted annualized cost synergies of $25 million by year-end 2025 [12]