Record Quarterly Revenue
Revenues increased 43.8% year-over-year to $955.5 million (record), with broad-based growth across every asset class and geography.
BGC Group
· BGC
May 7th, 2026
Summary
- Earnings Call Date:
- 2026-05-07
- Change Since:
- +12.24%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call communicated multiple record results: strong revenue and earnings growth, notable market-share gains (FMX UST 41%), robust ECS/Fenics momentum, and an expanded cost-savings program. Offsetting items included sharp compensation and non-comp expense increases (largely acquisition-related), a reduction in liquidity, revenue headwinds from sold/closed businesses (KACE and an OTC logistics unit), and a Q2 guide implying much slower growth as the company laps prior-year events and normalizes post-geopolitical volatility. On balance, the positive operational and financial achievements, plus continued margin initiatives and solid product/platform traction, outweigh the near-term headwinds.
Company Guidance
Management guided Q2 2026 revenues of $785 million to $845 million (vs $784 million in Q2 2025), with the midpoint implying ~4% Q2 revenue growth and 22% revenue growth for the first half of 2026 (or ~13% organic 1H growth); pretax adjusted earnings guidance is $178 million to $196 million (vs $173.6 million last year), with the midpoint implying ~8% Q2 earnings growth and 26% earnings growth for the first half; they forecast a full‑year adjusted earnings tax rate of 11%–14%, noted the outlook assumes no material acquisitions or dispositions, and cautioned results remain subject to macroeconomic and other risks.
Strong Pretax and Net Adjusted Earnings Growth
Pretax adjusted earnings rose 44.9% to $232.1 million (pretax margin 24.3%); post-tax adjusted earnings increased 40.6% to $201.1 million, and adjusted EPS was $0.41, up 41.4%.
ECS Segment Expansion (OTC Integration)
ECS revenues more than doubled (+120.1%) to $330 million, driven by the acquisition of OTC and strong organic growth across energy and shipping.
Fenics and FMX Momentum
Fenics revenues rose 19.8% to $206.9 million; FMX UST ADV grew 51% to ~$89.7B (March ADV $107B) and achieved ~41% UST market share, while FMX FX ADV increased 42% to a record $20.5B.
Portfolio Match and Lucera Growth
Portfolio Match ADV grew 42% to an all-time high with record average trade size; Lucera revenues grew 22.8% driven by FX and expanding fixed income adoption.
Geographic Strength
Revenue growth was balanced across regions: EMEA +56.7%, Americas +29.9%, and Asia Pacific +31.1% year-over-year.
Cost Reduction Upside
Original $25 million cost-savings program expanded; an additional $10 million was realized in Q1, raising expected annualized savings to $35 million with continued initiatives planned.
Adjusted EBITDA Growth
Adjusted EBITDA increased 26.7% to $253.2 million, supporting margin expansion alongside cost savings efforts.
Operator
Greetings, and welcome to the BGC Group, Inc First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Jason Chryssicas, head of investor relations. Thank you. You may begin.
Jason Chryssicas
Hello, everyone. This morning, we issued BGC Group, Inc’s first quarter 2026 financial results, which can be found at ir.bgcg.com. Any historical results provided on today’s call compare only to 2026 with the prior year period unless otherwise specified. All references on today’s call to historic record and strongest results are to BGC Group, Inc stand-alone financial results, excluding Newmark prior to the spin-off in November 2018. We will be referring to our results on a non-GAAP basis, which include the terms adjusted earnings and adjusted EBITDA. Refer to today’s investor materials on our website for additional details on our financial results and for complete and updated definitions of any non-GAAP terms, reconciliations of these items to the corresponding GAAP results and how, when, and why management uses them, as well as relevant industry and economic statistics. The outlook discussed today assumes no material acquisitions or dispositions. Our expectations are subject to change based on various macroeconomic, social, political, and other factors.
Information on this call contains forward-looking statements, including, without limitation, statements about our economic outlook and business. Stat...
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