BGC(US:BGC)2026-02-12 13:17Financial Performance - BGC reported record revenues of $756.4 million for Q4 2025, a 32.2% increase year-over-year, and $2.94 billion for FY 2025, up 30.0% from FY 2024[3]. - Adjusted Earnings before noncontrolling interest increased by 24.5% to $161.3 million in Q4 2025, with a pre-tax margin of 21.3%[9]. - The company achieved a GAAP net income of $13.9 million in Q4 2025, a decrease of 42.6% compared to Q4 2024, while EPS grew by 24.0% to $0.31 for FY 2025[3]. - BGC's total revenues for Q4 2025 were $756.4 million, a 32.2% increase from $572.3 million in Q4 2024[32]. - The company reported a consolidated net income of $10.8 million for Q4 2025, down from $23.3 million in Q4 2024, representing a 53.6% decrease[32]. - BGC's basic earnings per share for FY 2025 were $0.31, compared to $0.26 in FY 2024, indicating a 19.2% increase[35]. - GAAP net income for Q4 2025 was $14.371 million, a decrease of 43.2% from $25.203 million in Q4 2024; FY 2025 net income increased to $154.962 million from $126.988 million in FY 2024[86]. - Adjusted EBITDA for FY 2025 was $771.362 million, up from $714.273 million in FY 2024, reflecting a growth of 8.0%[86]. Revenue Growth - ECS revenues grew by 92.0% to $257.5 million in Q4 2025, driven by the acquisition of OTC and strong organic growth[14]. - Fenics revenues increased by 15.4% to $163.9 million in Q4 2025, with Fenics Markets revenues growing by 15.1%[12]. - Total brokerage revenues increased by 34.6% to $695 million[91]. - The foreign exchange segment saw a revenue increase of 9.8% to $103 million in Q4 2025, compared to $94 million in Q4 2024[91]. - The company anticipates continued growth in its Fenics Growth Platforms, which reported a revenue increase of 16.5% to $27 million in Q4 2025[93]. Expenses and Liabilities - Total expenses under GAAP rose by 38.8% to $813.4 million in Q4 2025, primarily due to increased compensation and employee benefits[16]. - Total liabilities rose to $3.26 billion in 2025, compared to $2.51 billion in 2024, reflecting a 29.9% increase[30]. - Compensation and employee benefits expenses for Q4 2025 were $497.6 million, a 71.8% increase from $289.6 million in Q4 2024[32]. - Interest expense for FY 2025 was $125.318 million, significantly higher than $91.075 million in FY 2024, indicating increased borrowing costs[86]. Future Guidance - For Q1 2026, BGC expects revenues to be between $860 million and $920 million, compared to $664.2 million in Q1 2025[25]. - Pre-tax Adjusted Earnings guidance for Q1 2026 is projected to be between $202 million and $222 million, up from $160.2 million in Q1 2025[25]. Shareholder Returns - The company declared a quarterly cash dividend of $0.02 per share, payable on March 18, 2026[26]. - The company declared dividends of $0.02 per share for both Q4 2025 and Q4 2024, with total dividends declared for FY 2025 at $0.08, up from $0.07 in FY 2024[69]. Market Position and Strategy - The company completed its second-largest acquisition, significantly expanding its market share and becoming the world's largest energy broker[2]. - BGC's U.S. Treasury business ended 2025 with a market share of 40%, and FMX Futures Exchange saw average daily volume and open interest increase by 82% and 97%, respectively, from the previous quarter[3][20]. - BGC Group, Inc. is expanding its market presence through partnerships to enhance its offerings in financial technology services, including the FMX Futures Exchange[96]. Adjusted Earnings and Tax Provisions - Adjusted Earnings calculations exclude non-cash items and expenses that do not involve cash outlay, aiming to reflect the underlying operating performance of BGC[39]. - Adjusted Earnings and Adjusted EBITDA exclude all GAAP charges related to equity-based compensation, including amortization of RSUs and other equity awards[40]. - BGC's non-GAAP provision for income taxes for Q4 2025 was $15.2 million, compared to $7.9 million in Q4 2024, with full-year provisions of $71.2 million for 2025 versus $33.1 million for 2024[78]. - The effective tax rate on pre-tax Adjusted Earnings is influenced by equity-based compensation charges, which are deductible under tax laws[50]. Liquidity - BGC's cash and cash equivalents as of December 31, 2025, were $851.502 million, an increase from $711.584 million at the end of 2024, indicating improved liquidity[84]. - The company reported total liquidity of $1.830 billion as of December 31, 2025, compared to $897.781 million in 2024, reflecting a significant increase in financial flexibility[84].