Yahoo Finance reported that JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon warned on February 23 that the financial environment feels similar to the years before the global financial crisis.Speaking at the company’s annual investor day in New York, Dimon said: “Unfortunately, we did see this in ’05, ’06, ’07, almost the same thing. The rising tide lifting all boats, everyone was making a lot of money, people leveraging to the hilt. The sky was the limit.”These comments by Dimon come during a volatile time ...

Core Viewpoint - BGC Group (BGC) is currently viewed as a superior value option compared to Evercore (EVR) based on various valuation metrics [7] Valuation Metrics - BGC has a forward P/E ratio of 6.80, while EVR has a forward P/E of 17.28 [5] - BGC's PEG ratio is 0.34, indicating a more favorable valuation in relation to its expected EPS growth compared to EVR's PEG ratio of 0.51 [5] - BGC's P/B ratio stands at 3.91, compared to EVR's P/B of 5.93, suggesting BGC is more undervalued relative to its book value [6] Earnings Outlook - Both BGC and EVR hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3]

Financial Data and Key Metrics Changes - BGC Group reported record-breaking revenues for both the fourth quarter and full year 2025, with increases of 32% and 30% respectively, approaching $3 billion in total revenues [4] - Adjusted EPS grew by 24% under GAAP and 19% for adjusted earnings, with adjusted EPS rising by 71% to $1.18 per share since 2022 [4][7] - Pre-tax adjusted earnings grew by 24.5% to $161.3 million, representing a pre-tax margin of 21.3% [18] - Post-tax adjusted earnings increased by 21.1% to $149.6 million, resulting in a post-tax adjusted earnings per share of $0.31 [18] Business Line Data and Key Metrics Changes - Total brokerage revenues grew by 34.6% to $694.6 million, with ECS revenues increasing by 92% to $257.5 million, driven by the acquisition of OTC and strong organic growth [9] - Rates revenues increased by 16.4% to $197.4 million, while foreign exchange revenues rose by 9.8% to $102.8 million [10] - Fenics revenues increased by 15.4% to a record $163.9 million, driven by higher electronic volumes across rates products [11] - FMX UST generated record fourth quarter average daily volume of $58.7 billion, increasing market share to a record 39% [12] Market Data and Key Metrics Changes - EMEA revenue increased by 39.2%, Americas revenues increased by 25.7%, and Asia Pacific revenues increased by 24.2% [16] - FMX Futures Exchange saw record volumes in open interest, with ADV and open interest increasing 82% and 97% respectively compared to the previous quarter [12] Company Strategy and Development Direction - The company completed the first phase of its cost reduction program, expected to realize $25 million of annualized savings in 2026 [5][17] - BGC aims to focus on higher growth areas within its portfolio, having sold lower growth businesses to enhance shareholder value [28] - The company is positioned for continued success in 2026, with guidance indicating a revenue growth expectation of approximately 34% for the first quarter [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong market share gains and a favorable trading environment [25] - The outlook assumes no material acquisitions or dispositions, with expectations subject to change based on macroeconomic factors [3] - Management highlighted the importance of volatility in driving business growth, particularly in the energy sector [39] Other Important Information - The company anticipates pre-tax adjusted earnings for the first quarter of 2026 to be in the range of $202 million to $222 million, representing over 32% earnings growth [20] - Liquidity as of December 31 was $979.1 million, compared to $897.8 million at year-end 2024 [19] Q&A Session Summary Question: Inquiry about first quarter guidance and organic revenue growth - Management noted that core revenue growth has been consistent, driven by market share gains and a favorable trading environment [25] Question: Discussion on the sale of KACE and future divestitures - Management indicated that the sale was driven by shareholder value considerations and that they remain open to future divestitures if they do not meet growth expectations [28] Question: Inquiry about new client growth in the energy segment - Management confirmed an increase in new players entering the energy market, contributing to growth in the ECS business [34] Question: Question regarding FMX futures revenue recognition and treasury futures - Management stated that changes in fee structures for FMX futures will occur in the summer, and treasury futures will follow the success of SOFR [42][43] Question: Inquiry about additional fixed income products within Lucera - Management indicated that Lucera is expanding into credit markets, which could significantly contribute to future revenue growth [48]

Financial Data and Key Metrics Changes - BGC delivered record-breaking revenues for both the fourth quarter and full year 2025, with increases of 32% and 30% respectively, approaching $3 billion in revenues [4] - Adjusted EPS grew by 24% under GAAP and 19% for adjusted earnings [4] - Pre-tax adjusted earnings grew by 24.5% to $161.3 million, representing a pre-tax margin of 21.3% [18] - Post-tax adjusted earnings increased by 21.1% to $149.6 million, resulting in a post-tax adjusted earnings per share of $0.31 [18] Business Line Data and Key Metrics Changes - Total brokerage revenues grew by 34.6% to $694.6 million, driven by growth across all asset classes [9] - ECS revenues grew by 92% to $257.5 million, with strong organic growth across the broader energy complex and shipping business [9] - Rates revenues increased by 16.4% to $197.4 million, reflecting strong growth in G-10 interest rate products [10] - Foreign exchange revenues were up 9.8% to $102.8 million, primarily due to strong growth in emerging market currencies [10] - Fenics revenues increased by 15.4% to a fourth quarter record of $163.9 million [11] Market Data and Key Metrics Changes - EMEA revenue increased by 39.2%, Americas revenues increased by 25.7%, and Asia Pacific revenues increased by 24.2% [16] - FMX UST business ended 2025 with a 40% market share, with average daily volume increasing by 12% compared to last year [12] - FMX Futures Exchange saw record volumes in open interest, with ADV and open interest increasing 82% and 97% respectively [12] Company Strategy and Development Direction - The company completed the first phase of its cost reduction program, realizing $25 million of annualized savings in 2026 [5] - BGC aims to focus on higher growth areas within its portfolio, having sold lower growth businesses to enhance shareholder value [28] - The company is positioned for continued success as it moves into 2026, with a record-breaking start to the year [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, with guidance for first quarter 2026 revenues expected to be between $860 million and $920 million, representing approximately 34% revenue growth [20] - The company anticipates pre-tax adjusted earnings to be in the range of $202 million to $222 million, indicating over 32% earnings growth [20] - Management noted that the trading environment remains strong, contributing to organic revenue growth [25] Other Important Information - The company achieved the strongest annual results in its history, significantly expanding its market share and becoming the world's largest energy broker [4] - The liquidity as of December 31 was $979.1 million, compared to $897.8 million at year-end 2024 [19] Q&A Session Summary Question: About the first quarter guidance and organic revenue growth - Management indicated that the strong growth is driven by a combination of a favorable trading environment and sustainable growth drivers across the business [25] Question: Thoughts on the sale of KACE and future divestitures - Management stated that the sale was driven by a focus on shareholder value and that they remain open to future divestitures if they do not align with growth objectives [28] Question: New logo growth in the energy space - Management confirmed that there is a proliferation of new players in the ECS business, benefiting from the current market environment [34] Question: Market share of ECS exceeding combined market share of BGC and OTC - Management confirmed that the benefits of acquiring OTC have become evident, with strong positioning in key asset classes [36] Question: Timetable for recognizing revenue related to FMX futures - Management indicated that changes in fee structures will occur in the summer, and the launch of Treasury futures will follow the success of SOFR [42][43] Question: Additional fixed income products within Lucera - Management mentioned that Lucera is moving into credit markets, which could represent a significant portion of future revenue if successful [49]

Financial Data and Key Metrics Changes - BGC Group reported record-breaking revenues for both the fourth quarter and full year 2025, with increases of 32% and 30% respectively, approaching $3 billion in total revenues [4] - Adjusted EPS grew by 24% under GAAP and 19% for adjusted earnings, with adjusted EPS rising by 71% to $1.18 per share since 2022 [4][6] - Pre-tax adjusted earnings grew by 24.5% to $161.3 million, representing a pre-tax margin of 21.3% [16] Business Line Data and Key Metrics Changes - Total brokerage revenues grew by 34.6% to $694.6 million, with ECS revenues increasing by 92% to $257.5 million, driven by the acquisition of OTC and strong organic growth [8] - Rates revenues increased by 16.4% to $197.4 million, while foreign exchange revenues rose by 9.8% to $102.8 million [9] - Fenics revenues increased by 15.4% to a record $163.9 million, with Fenics Markets generating revenues of $136.7 million, an increase of 15.1% [10] Market Data and Key Metrics Changes - EMEA revenue increased by 39.2%, Americas revenues increased by 25.7%, and Asia Pacific revenues increased by 24.2% [14] - FMX UST achieved a record fourth quarter average daily volume of $58.7 billion, with market share reaching 39% [11] - Portfolio Match ADV grew by 68%, driven by stronger U.S. and European credit activity [13] Company Strategy and Development Direction - The company aims to focus on higher growth areas within its portfolio, having sold lower growth businesses to enhance shareholder value [26] - BGC has positioned itself as the world's largest energy broker and is targeting continued market share expansion in various asset classes [4][6] - The company plans to launch additional fixed income products in 2026, expanding its offerings in the credit markets [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, with guidance for first quarter 2026 revenues expected to grow by approximately 34% [19] - The company noted that the trading environment has improved, contributing to organic revenue growth, and emphasized the importance of market share gains [24] - Management acknowledged the cyclical nature of some growth but highlighted structural growth drivers in the ECS business [30] Other Important Information - The first phase of a cost reduction program is expected to realize $25 million in annualized savings in 2026 [5] - The company completed the sale of its KACE business for up to $119 million, allowing it to focus on higher growth segments [10] Q&A Session Summary Question: About the first quarter guidance and organic revenue growth - Management indicated that the strong guidance reflects a combination of improved trading conditions and sustainable growth drivers across the business [22][24] Question: On the sale of KACE and future divestitures - Management stated that the decision to sell was based on shareholder value and that they remain open to future divestitures if they do not meet growth expectations [26] Question: Regarding new client growth in the energy segment - Management confirmed an increase in new clients in the ECS business, driven by market volatility and the need for hedging [30][32] Question: On the growth of the OTC business and market share - Management affirmed that the acquisition of OTC has enhanced their market position, particularly in oil and gas [34] Question: About FMX futures revenue recognition and treasury futures - Management noted that changes in fee structures for FMX futures will occur in mid-2026, and treasury futures will follow the success of SOFR [39][40] Question: On launching additional fixed income products - Management highlighted Lucera's expansion into credit markets, which could significantly contribute to future revenue growth [45]

Core Viewpoint - BGC Group reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.25 per share a year ago, indicating a positive earnings surprise of +6.90% [1] Financial Performance - The company achieved revenues of $756.37 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.47%, and up from $572.33 million in the same quarter last year [2] - Over the last four quarters, BGC Group has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - BGC Group shares have declined approximately 2.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.4% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.35 for the upcoming quarter and $1.34 for the current fiscal year, alongside projected revenues of $837.5 million and $3.28 billion respectively [7] Industry Context - The Financial - Investment Bank industry, to which BGC Group belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

BGC GROUP, INC. NASDAQ: BGC EARNINGS PRESENTATION Q4 2025 DISCLAIMER DISCUSSION OF FORWARD-LOOKING STATEMENTS ABOUT BGC Statements in this document regarding BGC that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statem ...

Financial 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].

Core Insights - BGC Group, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2025, highlighting its performance in the financial services sector [1] Financial Performance - The company declared a quarterly dividend of 2 cents [1] - Detailed financial results, including earnings presentation and supplemental financial tables, are available on BGC's investor relations website [1] Business 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, equities, and futures through the FMX Futures Exchange [1] - The company serves a diverse client base, including major banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, and investment firms [1] Recent Developments - BGC Brokers L.P. has been authorized as a U.K. registered benchmark administrator by the Financial Conduct Authority (FCA), enhancing its benchmark offerings in various swap pricing [1] - The company completed the sale of kACE Financial to smartTrade Technologies SAS for up to $119 million, which is expected to strengthen its position in the FX derivatives market [1]

Group 1 - BGC Group, Inc. is recognized as one of the best undervalued stocks under $10, with recent developments enhancing its market position [1] - The company has been authorized as a U.K. registered benchmark administrator by the U.K. Financial Conduct Authority, allowing it to offer regulated benchmark reference data to clients [1][2] - The approved benchmark offerings include swaps pricing in EUR IRS, GBP IRS, XCCY swaps, and EU and U.K. Inflation swaps, which improve data quality and provide a strong alternative benchmark solution [1] Group 2 - The registration enables BGC Group to support valuation and risk management activities across key rate markets [2] - Piper Sandler has reiterated a Buy rating on BGC Group, setting a price target of $14, indicating positive market sentiment [2] - BGC Group provides a range of brokerage and financial technology services, specializing in various sectors including Foreign Exchange, Fixed Income, Equities, Shipping, Energy, Commodities, and Futures [3]