BGC(BGC) - 2025 Q1 - Quarterly Results

Financial Highlights & CEO Commentary Highlights of Consolidated Results BGC Group achieved record Q1 2025 revenues of $664.2 million, up 14.8% YoY, with GAAP net income rising 13.8% - The CEO highlighted record quarterly revenues of over $664 million, a 15% increase from the previous year's record first quarter, driven by organic growth across Voice/Hybrid and Fenics businesses[3] - The acquisition of OTC Global Holdings was completed on April 1st, positioning BGC as the world's largest Energy, Commodities, and Shipping (ECS) broker, with the acquisition expected to be immediately accretive[4] Highlights of Consolidated Results (USD millions) | Highlights of Consolidated Results (USD millions) | 1Q25 | 1Q24 | Change | | --- | --- | --- | --- | | Revenues | $664.2 | $578.6 | 14.8% | | GAAP income from operations before income taxes | 80.0 | 71.1 | 12.5% | | GAAP net income for fully diluted shares | 52.8 | 46.4 | 13.8% | | Post-tax Adjusted Earnings | 143.0 | 123.2 | 16.1% | | Adjusted EBITDA | 199.8 | 208.4 | (4.1)% | | Per Share Results | 1Q25 | 1Q24 | Change | | GAAP fully diluted earnings per share | $0.11 | $0.10 | 10.0% | | Post-tax Adjusted Earnings per share | $0.29 | $0.25 | 16.0% | Detailed Financial Performance Consolidated Revenues Q1 2025 total revenues rose 14.8% to $664.2 million, driven by strong brokerage growth and Americas leading regional growth Consolidated Revenues by Segment (USD millions) | Consolidated Revenues (USD millions) | 1Q25 | 1Q24 | Change | | --- | --- | --- | --- | | Rates | $200.9 | $175.1 | 14.8% | | ECS ("Energy, Commodities, and Shipping") | 149.9 | 118.5 | 26.6% | | Foreign Exchange | 110.0 | 84.0 | 31.0% | | Credit | 86.9 | 87.6 | (0.7)% | | Equities | 62.9 | 62.9 | 0.1% | | Total Brokerage Revenues | $610.8 | $528.0 | 15.7% | | Data, Network, and Post-trade | 32.5 | 30.9 | 5.2% | | Interest and dividend income, Fees from related parties and Other revenues | 21.0 | 19.7 | 6.4% | | Total Revenues | $664.2 | $578.6 | 14.8% | - Revenue growth was observed across all geographic regions: Americas (+23.3%), EMEA (+12.2%), and APAC (+2.4%)[9] - Data, Network, and Post-trade revenues increased by 5.2%, and excluding the impact of the Capitalab business sale, revenues in this segment grew by approximately 10% year-over-year[11] - Adjusted EBITDA decreased by 4.1% to $199.8 million, attributed to a $36.6 million mark-to-market gain in the prior-year period, but would have increased by 16.3% excluding this gain[9] Fenics Fenics achieved record revenues of $172.7 million, up 15.6% YoY, driven by strong growth in Fenics Markets and Growth Platforms Fenics Revenues (USD millions) | Fenics Revenues (USD millions) | 1Q25 | 1Q24 | Change | | --- | --- | --- | --- | | Fenics Markets | $145.5 | $127.4 | 14.2% | | Fenics Growth Platforms | 27.1 | 21.9 | 23.7% | | Total Fenics Revenues | $172.7 | $149.3 | 15.6% | - FMX UST achieved record average daily volume (ADV) over $60 billion, a 33% increase YoY, with market share growing to approximately 33%[16] - FMX FX more than doubled its ADV to a record $14.5 billion in the first quarter[16] - PortfolioMatch ADV doubled due to strong growth in U.S. and European credit volumes, while Lucera's revenue increased by more than 15%[21] Consolidated Expenses and Taxes Total GAAP expenses increased 7.0% to $586.5 million, driven by a 17.5% rise in compensation expenses due to higher revenues Consolidated Expenses (USD millions) | Consolidated Expenses (USD millions) | 1Q25 | 1Q24 | Change | | --- | --- | --- | --- | | Compensation and employee benefits under GAAP | $341.6 | $290.8 | 17.5% | | Non-compensation expenses under GAAP | 169.6 | 161.1 | 5.2% | | Total expenses under GAAP | $586.5 | **$548.1 | 7.0% | | Compensation and employee benefits for Adjusted Earnings | $341.6 | $290.8 | 17.5% | | Non-compensation expenses for Adjusted Earnings | 162.9 | 152.9 | 6.6% | | Total expenses for Adjusted Earnings | $504.6 | $443.7 | 13.7% | Taxes (USD millions) | Taxes (USD millions) | 1Q25 | 1Q24 | Change | | --- | --- | --- | --- | | GAAP provision for income taxes | $26.5 | $22.1 | 20.4% | | Provision for income taxes for Adjusted Earnings | 19.0 | 12.3 | 54.3% | Consolidated Share Count Q1 2025 fully diluted weighted-average share count was 485.5 million (GAAP) and 501.5 million (Adjusted Earnings), up 1.6% and 1.3% YoY Consolidated Share Count (millions) | Consolidated Share Count (millions) | 1Q25 | 1Q24 | Change | 4Q24 | Change (QoQ) | | --- | --- | --- | --- | --- | --- | | Fully diluted weighted-average share count under GAAP | 485.5 | 478.0 | 1.6% | 479.1 | 1.3% | | Fully diluted weighted-average share count for Adjusted Earnings | 501.5 | 495.0 | 1.3% | 495.5 | 1.2% | Outlook and Dividends Outlook BGC forecasts Q2 2025 revenues between $715-$765 million and Pre-tax Adjusted Earnings between $156-$171 million Q2 2025 Guidance (USD millions) | Metric (USD millions) | Guidance 2Q 2025 | Actual 2Q 2024 | | --- | --- | --- | | Revenues | $715 - $765 | $550.8 | | Pre-tax Adjusted Earnings | $156 - $171 | $125.8 | Dividend Information The Board declared a quarterly cash dividend of $0.02 per share, doubling the prior year's dividend, payable June 10, 2025 - A quarterly qualified cash dividend of $0.02 per share was declared, payable on June 10, 2025, to stockholders of record as of May 27, 2025[24] - The Q1 2025 dividend of $0.02 per share is double the $0.01 per share dividend declared in Q1 2024[68] Condensed Consolidated Financial Statements Condensed Consolidated Statements of Financial Condition As of March 31, 2025, total assets reached $4.88 billion, with liabilities at $3.74 billion and equity at $1.14 billion Key Balance Sheet Items (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $ 966,357 | $ 711,584 | | Total assets | $ 4,884,476 | $ 3,591,967 | | Total liabilities | $ 3,741,525 | $ 2,512,728 | | Total equity | $ 1,142,951 | $ 1,079,239 | Condensed Consolidated Statements of Operations Q1 2025 total revenues were $664.2 million, with net income of $55.2 million and GAAP fully diluted EPS of $0.11 Key Income Statement Items (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total brokerage revenues | $ 610,789 | $ 528,021 | | Total revenues | $ 664,240 | $ 578,614 | | Total expenses | $ 586,522 | $ 548,068 | | Income from operations before income taxes | $ 79,978 | $ 71,098 | | Net income available to common stockholders | $ 55,164 | $ 49,210 | Per Share Data | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Basic earnings per share | $ 0.11 | $ 0.10 | | Fully diluted earnings per share | $ 0.11 | $ 0.10 | Non-GAAP Financial Measures and Reconciliations Definition of Non-GAAP Measures The company uses non-GAAP measures like Adjusted Earnings and EBITDA for clearer insight into core operating performance - Adjusted Earnings calculations primarily exclude certain non-cash items, such as equity-based compensation and amortization of intangibles, and other expenses that do not involve the outlay of cash or dilute existing stockholders[38][39][44] - Adjusted EBITDA is defined as GAAP net income available to common stockholders, with add-backs for items such as taxes, interest expense, depreciation & amortization, and equity-based compensation, to evaluate operating performance by eliminating the effects of financing and capital spending[57][60] - Constant Currency revenue is a non-GAAP metric used to eliminate the impacts of foreign currency fluctuations between comparative periods, providing a clearer comparison of underlying operating performance[64] Reconciliation of GAAP to Adjusted Earnings Q1 2025 GAAP income of $80.0 million reconciled to $160.2 million pre-tax Adjusted Earnings, with Post-tax Adjusted EPS at $0.29 Reconciliation of GAAP Income to Adjusted Earnings (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP income from operations before income taxes | $ 79,978 | $ 71,098 | | Equity-based compensation adjustment | 75,323 | 96,081 | | Total Non-Compensation adjustments | 6,606 | 8,287 | | Total other income (losses), net adjustments | (1,660) | (40,116) | | Adjusted Earnings before noncontrolling interest and taxes | $ 160,247 | $ 135,350 | Reconciliation of GAAP EPS to Post-Tax Adjusted EPS | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP fully diluted earnings per share | $ 0.11 | $ 0.10 | | Post-tax adjusted earnings per share | $ 0.29 | $ 0.25 | Reconciliation of GAAP Net Income to Adjusted EBITDA Q1 2025 Adjusted EBITDA was $199.8 million, reconciled from GAAP net income of $55.2 million, with a 4.1% YoY decrease Reconciliation to Adjusted EBITDA (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP net income available to common stockholders | $ 55,164 | $ 49,210 | | Add back: Provision for income taxes | 26,549 | 22,057 | | Add back: Interest expense | 24,654 | 20,136 | | Add back: Fixed asset depreciation and intangible asset amortization | 21,870 | 20,689 | | Add back: Equity-based compensation | 75,323 | 96,081 | | Adjusted EBITDA | $ 199,839 | $ 208,423 | Constant Currency Revenue Reconciliation Total revenues grew 16.2% YoY on a constant currency basis, exceeding reported 14.8% growth, indicating negative FX impact Total Revenues Growth (in millions) | | 1Q25 | 1Q24 | Change | Constant Currency Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $664.2 | $578.6 | 14.8% | 16.2% | Fenics Revenues Growth (in millions) | | 1Q25 | 1Q24 | Change | Constant Currency Change | | :--- | :--- | :--- | :--- | :--- | | Fenics Revenues | $172.7 | $149.3 | 15.6% | 16.1% | Company Information About BGC Group, Inc. BGC Group is a global marketplace and financial technology company offering diverse products and services to major financial institutions - BGC Group is a global marketplace and financial technology company for products such as fixed income, foreign exchange, energy, commodities, shipping, and equities[90] - BGC has partnered with global investment banks to create FMX, which includes a U.S. interest rate futures exchange, a spot foreign exchange platform, and a U.S. cash treasuries platform[91]