Part I [Business](index=17&type=section&id=ITEM%201.%20Business) BGC Group is a global financial technology and brokerage firm focused on electronic trading growth, strategic acquisitions, and platform development - As of December 31, 2024, the company employed **2,161** front-office and technology personnel[36](index=36&type=chunk) - BGC completed its conversion to a simplified Full C-Corporation structure on July 1, 2023[45](index=45&type=chunk) - Howard W. Lutnick stepped down as Chairman and CEO on February 18, 2025, with John A. Abularrage, JP Aubin, and Sean A. Windeatt appointed as Co-CEOs[48](index=48&type=chunk) - Major banks invested **$171.7 million** for a **25.75%** minority stake in BGC's FMX platform in April 2024, valuing it at **$666.7 million**[44](index=44&type=chunk) Brokerage Product Categories | Category | Product Type | | :--- | :--- | | **Rates** | Interest Rate Swaps, Interest Rate Options, Listed Rates Products, U.S. Treasuries, European Government Bonds, Other Global Government Bonds, Repurchase Agreements, Money Markets, Agency Fixed Income | | **Credit** | Corporate Bonds, High Yield Bonds, Emerging Market Bonds, Index CDS, Single Name CDS, Exotic Credit Derivatives, Asset-Backed Securities, Loans, Structured Products | | **Foreign Exchange** | Foreign Exchange Options, Spot FX, FX Forward, Non-Deliverable Forwards, Precious Metals | | **ECS** | Environmental/Emission Products, Weather Derivatives, Energy & Petrochemical Consulting, Shipping Brokerage, Power, Liquefied Natural Gas, Natural Gas, Base Metals, Dry Bulk (Coal & Iron Ore), Oil, Soft & Agricultural Products | | **Equities** | OTC Equity Derivatives, Listed Equity Futures & Options, Delta One Product, Convertibles, Cash Equities | - Top ten customers accounted for approximately **27.1%** of total consolidated revenue in 2024, with the largest customer at **4.8%**[66](index=66&type=chunk) - Average revenue per front-office employee increased **6.3%** to a record of approximately **$1.0 million** in 2024[136](index=136&type=chunk) [Risk Factors](index=43&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces diverse risks including market volatility, strategic integration challenges, significant indebtedness, cybersecurity threats, personnel transitions, and extensive regulatory compliance - **Economic & Market Risk:** Business conditions are influenced by global economic factors, central bank interest rate actions, and financial market trading volumes[191](index=191&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) - **Strategic & Transaction Risk:** New initiatives and acquisitions pose integration, cost, and dilution risks, alongside challenges from limited cryptocurrency offerings[200](index=200&type=chunk)[209](index=209&type=chunk) - **Liquidity & Debt Risk:** Indebtedness of **$1.34 billion** as of December 31, 2024, limits capital raising and operational flexibility, exposing the company to interest rate risk and covenant restrictions[212](index=212&type=chunk)[220](index=220&type=chunk) - **Cybersecurity & Technology Risk:** Cyber-attacks and system failures risk data breaches, reputational damage, financial losses, and regulatory penalties, with AI introducing new challenges[242](index=242&type=chunk)[252](index=252&type=chunk) - **Personnel Risk:** Leadership transition and the loss of key employees or inability to retain talent pose significant business risks[255](index=255&type=chunk)[257](index=257&type=chunk) - **Regulatory & Legal Risk:** Extensive financial services regulation leads to high compliance costs, capital requirements, and potential penalties from global authorities[270](index=270&type=chunk)[274](index=274&type=chunk)[295](index=295&type=chunk) - **Corporate Structure & Related Party Risk:** Voting control is concentrated with Cantor, and potential conflicts of interest exist with related party transactions[337](index=337&type=chunk)[357](index=357&type=chunk)[358](index=358&type=chunk) [Unresolved Staff Comments](index=77&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - Not Applicable[383](index=383&type=chunk) [Cybersecurity](index=77&type=section&id=ITEM%201C.%20Cybersecurity) BGC's global cybersecurity program, overseen by the Audit Committee, includes risk management, incident response, and disaster recovery - The cybersecurity program is managed by the CISO and CIO, with Audit Committee oversight on risks and program status[384](index=384&type=chunk)[389](index=389&type=chunk) - Risk management includes vulnerability audits, penetration testing, employee training, and industry group participation[385](index=385&type=chunk) - An incident reporting process classifies risks into four tiers based on impact to guide response and recovery[386](index=386&type=chunk) - Primary data centers in the U.S. and U.K. have replicated technology in redundant centers, with annual disaster recovery testing[390](index=390&type=chunk)[391](index=391&type=chunk) [Properties](index=79&type=section&id=ITEM%202.%20Properties) BGC Group's principal offices are in New York, with major presence in London and global data centers - The company's principal executive offices are located at **499 Park Avenue, New York, NY**[392](index=392&type=chunk) - The largest office outside New York is in London at **Five Churchill Place**[393](index=393&type=chunk) - BGC operates six core data centers across the U.K., New Jersey, Connecticut, Hong Kong, and Singapore[74](index=74&type=chunk)[394](index=394&type=chunk) [Legal Proceedings](index=79&type=section&id=ITEM%203.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from Note 19 and the MD&A section - Details on legal proceedings are provided in Note 19 of the financial statements and Item 7, MD&A[395](index=395&type=chunk) [Mine Safety Disclosures](index=79&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company reports this item is not applicable - Not Applicable[396](index=396&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=80&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) BGC's Class A common stock trades on Nasdaq, supported by an active share repurchase program and quarterly dividends - A **$400.0 million** share repurchase program was re-authorized in October 2024, with approximately **$350.0 million** remaining available at year-end[400](index=400&type=chunk) Share Repurchases for Q4 2024 | Period | Total Number of Shares Repurchased (thousands) | Weighted Average Price Paid per Share | | :--- | :--- | :--- | | Oct 1 - Oct 31, 2024 | 6,369 | $9.45 | | Nov 1 - Nov 30, 2024 | — | — | | Dec 1 - Dec 31, 2024 | — | — | | **Total** | **6,369** | **$9.45** | - BGC repurchased **36.2 million** shares during the full year ended December 31, 2024[402](index=402&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=82&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) BGC's 2024 revenues increased significantly, driven by brokerage growth and Fenics, alongside strategic acquisitions and a strengthened liquidity position Full Year 2024 vs. 2023 Financial Highlights | Metric | FY 2024 (in millions) | FY 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,262.8 | $2,025.4 | +11.7% | | Total Brokerage Revenues | $2,038.2 | $1,832.6 | +11.2% | | Income from Operations Before Taxes | $173.1 | $57.7 | +200.0% | | Consolidated Net Income | $123.2 | $38.8 | +217.5% | FY 2024 Brokerage Revenue Growth by Product | Product Category | Revenue Change (YoY) | | :--- | :--- | | ECS | +25.1% | | Rates | +12.2% | | FX | +14.0% | | Credit | +0.9% | | Equities | -5.3% | - Higher-margin Fenics business revenues grew **9.4%** to **$570.8 million** in 2024, with Fenics Growth Platforms revenue up **26.3%** to **$94.8 million**[443](index=443&type=chunk)[445](index=445&type=chunk) - The company recognized a **$39.0 million** gain from the sale of its Capitalab post-trade business on December 3, 2024[455](index=455&type=chunk)[456](index=456&type=chunk) - Strategic acquisitions in the ECS sector included Sage and a definitive agreement for OTC Global, both expected to be immediately accretive[450](index=450&type=chunk)[451](index=451&type=chunk) - Liquidity increased by **$196.3 million** to **$897.8 million** as of December 31, 2024, driven by FMX Equity Partners, senior notes, and Capitalab sale proceeds[616](index=616&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=128&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) BGC manages market risks including credit, principal transaction, foreign currency, and interest rate exposures through various controls - **Credit Risk:** Managed through credit approval, trading limits, and ongoing monitoring to mitigate counterparty non-performance[706](index=706&type=chunk) - **Market Risk:** Unmatched principal positions are mitigated by strict limits and hedging; **$186.2 million** in financial instruments owned at fair value as of December 31, 2024[711](index=711&type=chunk)[712](index=712&type=chunk) - **Foreign Currency Risk:** A hypothetical **10%** USD strengthening against EUR and GBP would negatively impact 2024 net income by approximately **$0.9 million**[718](index=718&type=chunk) - **Interest Rate Risk:** A hypothetical **1%** interest rate increase would reduce 2024 consolidated net earnings by an estimated **$1.7 million**, mainly due to variable-rate debt[720](index=720&type=chunk) [Financial Statements and Supplementary Data](index=131&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents BGC Group's audited consolidated financial statements for 2022-2024, including an unqualified audit opinion [Consolidated Statements of Financial Condition](index=135&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Consolidated Balance Sheet Highlights (as of Dec 31) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $711,584 | $655,641 | | Goodwill | $540,290 | $506,344 | | **Total Assets** | **$3,591,967** | **$3,175,937** | | **Liabilities & Equity** | | | | Notes payable and other borrowings | $1,337,540 | $1,183,506 | | **Total Liabilities** | **$2,512,728** | **$2,277,781** | | **Total Stockholders' Equity** | **$898,507** | **$885,083** | | **Total Equity** | **$1,079,239** | **$898,156** | [Consolidated Statements of Operations](index=136&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Income Statement (Year Ended Dec 31) | (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Total revenues** | **$2,262,818** | **$2,025,401** | **$1,795,302** | | Total compensation and employee benefits | $1,492,890 | $1,347,981 | $1,104,236 | | **Total expenses** | **$2,182,263** | **$1,992,830** | **$1,717,115** | | Income from operations before income taxes | $173,143 | $57,709 | $97,451 | | **Consolidated net income (loss)** | **$123,228** | **$38,775** | **$58,867** | | **Net income (loss) available to common stockholders** | **$126,988** | **$36,265** | **$48,712** | Earnings Per Share (Year Ended Dec 31) | Per Share Data | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Basic EPS | $0.26 | $0.08 | $0.13 | | Fully Diluted EPS | $0.25 | $0.07 | $0.13 | [Consolidated Statements of Cash Flows](index=138&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Summary (Year Ended Dec 31) | (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $315,350 | $405,203 | $224,362 | | Net cash used in investing activities | ($96,994) | ($90,707) | ($53,330) | | Net cash used in financing activities | ($149,018) | ($146,880) | ($233,206) | | **Net increase (decrease) in cash** | **$60,377** | **$170,886** | **($64,789)** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=210&type=section&id=ITEM%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes or disagreements with its accountants on financial disclosure - None[1132](index=1132&type=chunk) [Controls and Procedures](index=210&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective as of December 31, 2024 - Management concluded BGC Group's disclosure controls and procedures were effective as of December 31, 2024[1133](index=1133&type=chunk) - Internal controls over financial reporting were effective as of December 31, 2024, excluding the immaterial Sage acquisition[1135](index=1135&type=chunk)[1136](index=1136&type=chunk) - No material changes occurred in internal controls over financial reporting during the year ended December 31, 2024[1139](index=1139&type=chunk) [Other Information](index=210&type=section&id=ITEM%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during Q4 2024 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended December 31, 2024[1140](index=1140&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=212&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 proxy statement - This section incorporates information by reference from the 2025 Proxy Statement[1144](index=1144&type=chunk) [Executive Compensation](index=212&type=section&id=ITEM%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the company's 2025 definitive proxy statement - This section incorporates information by reference from the 2025 Proxy Statement[1145](index=1145&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=212&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and equity compensation plan information is incorporated by reference from the 2025 proxy statement - This section incorporates information by reference from the 2025 Proxy Statement[1146](index=1146&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=212&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related party transactions and director independence information is incorporated by reference from the 2025 proxy statement - This section incorporates information by reference from the 2025 Proxy Statement[1147](index=1147&type=chunk) [Principal Accountant Fees and Services](index=212&type=section&id=ITEM%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the 2025 proxy statement - This section incorporates information by reference from the 2025 Proxy Statement[1148](index=1148&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=213&type=section&id=ITEM%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K - Consolidated financial statements are included in Part II, Item 8 of the report[1151](index=1151&type=chunk) - An Exhibit Index lists all documents filed as part of the report as required by Regulation S-K[1152](index=1152&type=chunk)[1153](index=1153&type=chunk) [Form 10-K Summary](index=218&type=section&id=ITEM%2016.%20Form%2010-K%20Summary) The company reports this item is not applicable - Not Applicable[1161](index=1161&type=chunk)

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, March 3rd:BGC Group, Inc. (BGC) : This brokerage and financial technology company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.4% over the last 60 days.BGC has a PEG ratio of 0.36 compared with 1.09 for the industry. The company possesses a Growth Score  of B.Dana (DAN) : This company which is a provider of technology driveline, sealing ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the ...

BGC Group (BGC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Sin ...

Investors interested in stocks from the Financial - Investment Bank sector have probably already heard of BGC Group (BGC) and Robinhood Markets, Inc. (HOOD) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies ...

Group 1 - BGC Group's shares have shown an upward trend over the past year due to favorable market conditions in global issuances and volatility [1] - The management of BGC Group has implemented growth drivers to enhance the business both organically and through other means [1] Group 2 - The article reflects an individual investor's focus on undercovered companies, particularly in sectors such as technology, software, electronics, and energy transition [1] - The investor has over 50 companies on their watchlist and has been investing personal capital for more than 7 years [1] - The investor aims to identify asymmetric investment opportunities to achieve market-beating returns [1]

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies like Griffon Corporation (GFF), BGC Group, Inc. (BGC), ChampionX Corporation (CHX), and ChromaDex Corporation (CDXC) demonstrate strong net profit margins, making them attractive to investors [1] Financial Metrics - Net profit margin is calculated as Net Profit/Sales * 100, reflecting the amount retained after all expenses [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value [3] Investment Considerations - A strong net profit margin provides clarity on a company's pricing policy, cost structure, and manufacturing efficiency, making it a preferred metric among investors [4] - However, the net profit margin varies significantly across industries, and its relevance can differ for traditional versus technology companies [4][5] Company Profiles - **Griffon Corporation (GFF)**: A diversified holding company with a Zacks Rank of 2 and a VGM Score of A. The fiscal 2025 earnings estimate has been revised upward to $5.55 per share, with an average surprise of 14.7% over the past four quarters [9][10] - **BGC Group, Inc. (BGC)**: A brokerage and financial technology firm with a Zacks Rank of 2 and a VGM Score of A. The earnings estimate for 2025 has increased to $1.08 per share, with an average surprise of 3.3% [11][12] - **ChampionX Corporation (CHX)**: Provides engineered solutions for oil and gas companies, holding a Zacks Rank of 2 and a VGM Score of B. The earnings estimate for 2025 has been revised to $1.92 per share, with an average surprise of 9.8% [12][13] - **ChromaDex Corporation (CDXC)**: Supplies reference materials for various markets, with a Zacks Rank of 2 and a VGM Score of A. The earnings estimate for 2025 remains at 12 cents per share, with an impressive average surprise of 91.8% [14][15]

Company Leadership Changes - BGC Group, Inc. has appointed Stephen Merkel as the new Chairman of the Board of Directors following Howard W. Lutnick's resignation as CEO and Chairman after being confirmed as the 41st Secretary of Commerce [1][2] - Stephen Merkel has been with BGC since its founding and will continue his roles as Executive Vice President and General Counsel [2][4] - Brandon Lutnick will join the Board of Directors, bringing his experience from Cantor Fitzgerald, where he served as Chairman and was involved in corporate strategy [2][7] Background of Key Individuals - Stephen Merkel has over 30 years of experience with BGC and has held various leadership roles within the Cantor Fitzgerald group of companies [3][4] - Brandon Lutnick has a background in equity sales and trading and has been involved in overseeing projects related to Cantor Fitzgerald and its affiliates [7][8] Company Overview - BGC Group, Inc. is a leading global brokerage and financial technology company, providing services across various financial products including fixed income, foreign exchange, and commodities [9][10] - The company has partnered with major global investment banks to create FMX, a U.S. interest rate futures exchange, and has developed a fast-growing U.S. cash treasuries platform [10]

Core Insights - BGC Group, Inc. has appointed John Abularrage, JP Aubin, and Sean Windeatt as Co-Chief Executive Officers, with Windeatt retaining his role as Chief Operating Officer [1][2] - The leadership transition follows Howard W. Lutnick's confirmation as the 41st Secretary of Commerce, marking a significant change in the company's executive structure [2] - Under the new leadership, BGC aims to continue its strategic initiatives and maintain its record of double-digit revenue growth, having generated over $2.25 billion in revenue in 2024 [2] Leadership Changes - John Abularrage has been appointed as Co-CEO and has previously served as Co-Global Head of Brokerage and CEO of the Americas for BGC [4][5] - JP Aubin, also a Co-CEO, has been with BGC since 2005 and has played a crucial role in the company's expansion in Europe [6][7] - Sean Windeatt, who has been with the company for over 27 years, will co-lead alongside Abularrage and Aubin, focusing on transformative strategies for growth [10][11] Company Performance - BGC has consistently achieved double-digit revenue growth, with record revenues exceeding $2.25 billion in 2024 [2] - The company has a diverse range of products and services, including fixed income, foreign exchange, energy, and commodities, catering to a wide array of clients [12][13]

Core Insights - Howard W. Lutnick has been confirmed as the 41st Secretary of Commerce, stepping down from his roles at BGC Group, Inc. [1] - Under Lutnick's leadership, BGC has become a leading global brokerage and financial technology company, with over 4,000 employees, revenues exceeding $2.25 billion, and a market capitalization of approximately $4.5 billion [2][4]. Company Overview - BGC Group, Inc. is recognized as the world's most valuable wholesale financial services intermediary, pioneering electronic trading solutions, including the automation of the U.S. Treasury market [2][7]. - The company has launched FMX, a premier U.S. Treasury and U.S. interest rate futures trading marketplace, in collaboration with ten leading global investment banks and market-making firms [3][8]. Leadership and Contributions - Lutnick is acknowledged for his visionary leadership and ability to identify market opportunities, positioning BGC ahead of industry trends [3]. - He has a history of philanthropy, having donated over $100 million to various causes, including support for victims of terrorism and natural disasters [4][5]. Recent Developments - Following his appointment, Lutnick will divest his interests in BGC to comply with U.S. government ethics rules [4]. - BGC has announced additional executive and board changes in light of Lutnick's departure [4].