[PART I—FINANCIAL INFORMATION](index=17&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=17&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for BGC Group, Inc. as of March 31, 2025, and for the three months ended March 31, 2025 and 2024, including statements of financial condition, operations, comprehensive income, cash flows, and changes in equity, along with detailed notes [Condensed Consolidated Statements of Financial Condition](index=17&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) The company's total assets increased to $4.88 billion as of March 31, 2025, from $3.59 billion at December 31, 2024, primarily driven by a significant rise in receivables from broker-dealers, while total liabilities also increased to $3.74 billion from $2.51 billion, largely due to higher payables to broker-dealers and increased notes payable, and total equity grew to $1.14 billion from $1.08 billion over the same period Condensed Consolidated Statements of Financial Condition (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | **$4,884,476** | **$3,591,967** | | Cash and cash equivalents | $966,357 | $711,584 | | Receivables from broker-dealers, clearing organizations, etc. | $1,279,425 | $365,490 | | **Total liabilities** | **$3,741,525** | **$2,512,728** | | Payables to broker-dealers, clearing organizations, etc. | $1,113,821 | $225,377 | | Notes payable and other borrowings | $1,688,640 | $1,337,540 | | **Total equity** | **$1,142,951** | **$1,079,239** | [Condensed Consolidated Statements of Operations](index=18&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, total revenues increased to $664.2 million from $578.6 million in the prior-year period, driven by higher commission revenues, while consolidated net income rose to $53.4 million from $49.0 million, and fully diluted earnings per share remained flat at $0.10 year-over-year Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $664,240 | $578,614 | | Commissions | $494,711 | $415,172 | | Total expenses | $586,522 | $548,068 | | Income from operations before income taxes | $79,978 | $71,098 | | Consolidated net income | $53,429 | $49,041 | | Net income available to common stockholders | $55,164 | $49,210 | | Basic earnings per share | $0.11 | $0.10 | | Fully diluted earnings per share | $0.11 | $0.10 | [Condensed Consolidated Statements of Cash Flows](index=20&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2025, net cash provided by operating activities was $0.8 million, a significant decrease from $28.1 million in the prior-year period, net cash used in investing activities was $16.6 million, and net cash provided by financing activities was $266.1 million, primarily due to the issuance of long-term debt, compared to $94.6 million used in the same period last year, resulting in a net increase in cash and cash equivalents of $252.5 million Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $839 | $28,092 | | Net cash provided by (used in) investing activities | $(16,594) | $(19,159) | | Net cash provided by (used in) financing activities | $266,055 | $(94,642) | | Net increase (decrease) in Cash and cash equivalents | $252,493 | $(87,788) | | Cash and cash equivalents at end of period | $985,766 | $585,108 | [Notes to Condensed Consolidated Financial Statements](index=24&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial results, including the July 2023 Corporate Conversion to a **Full C-Corporation** structure and significant management changes in **February 18, 2025**, with Howard W. Lutnick stepping down as CEO and Chairman, and John A. Abularrage, JP Aubin, and Sean A. Windeatt appointed as **Co-Chief Executive Officers**, along with details on acquisitions, divestitures, related-party transactions with Cantor, debt structure, compensation plans, and segment performance - On July 1, 2023, BGC completed its Corporate Conversion from an 'Up-C' to a simplified **Full C-Corporation** structure, with BGC Group, Inc. becoming the new public holding company[50](index=50&type=chunk)[53](index=53&type=chunk) - Following his confirmation as U.S. Secretary of Commerce, Howard W. Lutnick stepped down as Chairman and CEO on **February 18, 2025**. John A. Abularrage, JP Aubin, and Sean A. Windeatt were appointed as **Co-Chief Executive Officers**[57](index=57&type=chunk) - Subsequent to the quarter end, on April 1, 2025, the company closed its acquisition of OTC Global for total consideration of **$325.0 million**. On April 2, 2025, BGC Group issued **$700.0 million of 6.150% Senior Notes**[287](index=287&type=chunk)[288](index=288&type=chunk) Share Repurchase Activity (Q1 2025) | Period | Total Shares Repurchased (thousands) | Weighted-Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 3,171 | $9.36 | | Feb 2025 | — | — | | Mar 2025 | 13 | $9.35 | | **Total** | **3,184** | **$9.36** | - As of March 31, 2025, the company had **$326.9 million** remaining under its **$400.0 million** share repurchase authorization[98](index=98&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=73&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the financial results for Q1 2025, highlighting a 14.8% year-over-year increase in total revenues to $664.2 million, driven by strong performance in brokerage services, with the company's technology-driven Fenics businesses seeing revenues grow 15.6%, covering the business environment, recent acquisitions like OTC Global, the FMX venture, results by product line, and liquidity, which stood at $1.15 billion at quarter-end, along with capital deployment priorities including share repurchases and dividends Q1 2025 vs Q1 2024 Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $664.2M | $578.6M | +14.8% | | Brokerage Revenues | $610.8M | $528.0M | +15.7% | | Income from operations before income taxes | $80.0M | $71.1M | +12.5% | | Fenics Revenues | $172.7M | $149.4M | +15.6% | Q1 2025 Brokerage Revenue Growth by Product (YoY) | Product | Revenue Change | Growth Rate | | :--- | :--- | :--- | | ECS | +$31.5M | +26.6% | | Rates | +$25.9M | +14.8% | | FX | +$26.0M | +31.0% | | Credit | -$0.7M | -0.7% | | Equities | +$0.1M | +0.1% | - The company's liquidity position increased by **$248.3 million** during the quarter to **$1.15 billion** as of March 31, 2025, primarily due to a **$350.0 million** draw on its Revolving Credit Agreement[421](index=421&type=chunk) - FMX, the company's U.S. Treasury and futures marketplace, received a **$171.7 million** investment from strategic partners for a **25.75%** stake, valuing the entity at **$666.7 million**[306](index=306&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=96&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company outlines its exposure to various market risks, including credit, principal transaction, market, operational, foreign currency, and interest rate risks, managing credit risk through approval and monitoring, mitigating market risk from unmatched principal transactions with strict limits and short holding periods, and quantifying foreign currency and interest rate risks, noting that a **10%** strengthening of the U.S. dollar would negatively impact net income by approximately **$4.8 million**, and a **1%** rise in interest rates would reduce net earnings by **$0.5 million** - The company's primary foreign currency exposure is the U.S. dollar versus the pound sterling and the euro. A hypothetical **10%** strengthening of the U.S. dollar against both currencies would result in a negative impact on net income of approximately **$4.8 million**[485](index=485&type=chunk) - A hypothetical **1%** increase in interest rates would have caused a decline in consolidated net earnings of approximately **$0.5 million** for the three months ended March 31, 2025[486](index=486&type=chunk) - Principal transaction risk arises from acting as a middleman in matched back-to-back trades. The company manages this by settling through recognized systems and generally avoids free-of-payment settlement[476](index=476&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=98&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the Co-Chief Executive Officers and Chief Financial Officer, evaluated the company's disclosure controls and procedures, concluding that these controls and procedures were **effective** as of March 31, 2025, with **no changes** made to the company's internal control over financial reporting during the quarter - The Co-Chief Executive Officers and the Chief Financial Officer concluded that BGC Group's disclosure controls and procedures were **effective** as of March 31, 2025[487](index=487&type=chunk) - There were **no changes** in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[488](index=488&type=chunk) [PART II—OTHER INFORMATION](index=99&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=99&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section references Note 19 of the financial statements and the MD&A for details on legal proceedings, including a putative class action lawsuit filed by a stockholder against Cantor Fitzgerald, L.P. and Howard W. Lutnick concerning the Corporate Conversion, which was **dismissed in its entirety** by the court in April 2025 - A stockholder class action lawsuit challenging the fairness of the Corporate Conversion was **dismissed in its entirety** by the Delaware Court of Chancery on April 10, 2025[442](index=442&type=chunk) [ITEM 1A. RISK FACTORS](index=99&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company states that there have been **no material changes** to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been **no material changes** to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[492](index=492&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=99&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company details its share repurchase activity for the quarter ended March 31, 2025, where under its authorized program, BGC repurchased a total of 3.184 million shares at a weighted-average price of $9.36 per share, with approximately **$326.9 million** remaining available under the **$400.0 million** repurchase authorization as of the end of the quarter Share Repurchases for Quarter Ended March 31, 2025 | Period | Total Shares Repurchased (thousands) | Weighted-Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 3,171 | $9.36 | | February 2025 | — | — | | March 2025 | 13 | $9.35 | | **Total** | **3,184** | **$9.36** | - As of March 31, 2025, the company had approximately **$326.9 million** remaining under its **$400.0 million** share repurchase authorization, which was re-approved on October 30, 2024[494](index=494&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=99&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities during the period - None[496](index=496&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=99&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - None[497](index=497&type=chunk) [ITEM 5. OTHER INFORMATION](index=100&type=section&id=ITEM%205.%20OTHER%20INFORMATION) The company reported that **No directors or executive officers** adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025 - **No directors or executive officers** adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[498](index=498&type=chunk) [ITEM 6. EXHIBITS](index=101&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including indentures related to new debt, employment agreements for the new Co-CEOs, and certifications required by the Sarbanes-Oxley Act

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of over $664 million, a 15% increase compared to the previous year's first quarter [5] - Adjusted earnings per share improved by 16% to $0.29 per share [17] - Adjusted EBITDA decreased by 4.1% to $199.8 million, but would have increased by 16.3% excluding a prior period mark to market gain [18] Business Line Data and Key Metrics Changes - Rates revenue increased by 14.8% to a record $200.9 million, driven by higher volumes across major interest rate products [8] - ECS revenue grew by 26.6% to a record $149.9 million, supported by strong growth in environmental and energy transition products [9] - Foreign exchange revenues rose by 31% to a record $110 million, reflecting broad-based growth across all FX products [10] - Credit revenues decreased by 0.7% to $86.9 million due to lower emerging market and European credit volumes [10] - Equities revenues remained flat at $62.9 million, with higher European and US equity volumes offset by lower Asian equity derivative volumes [10] - Fenics revenues improved by 15.6% to $172.7 million, with Fenics Markets reporting revenues of $145.5 million, an increase of 14.2% [11] Market Data and Key Metrics Changes - Americas revenues increased by 23.3%, while Europe, Middle East, and Africa revenues rose by 12.2%, and Asia Pacific revenues increased by 2.4% [16] Company Strategy and Development Direction - The acquisition of OTC Global Holdings is expected to add over $400 million in annualized revenue, nearly doubling the size of the existing ECS business, positioning the company as the world's largest ECS broker [6] - The company anticipates that the acquisition will be immediately accretive and generate meaningful shareholder value [6] - The company is focused on integrating OTC into its global platform and expects to see growth in its businesses as market volatility increases [7] Management's Comments on Operating Environment and Future Outlook - Management noted that global market volatility has led to broad organic growth across businesses, benefiting secondary trading volumes [7] - The company expects total revenues for the second quarter of 2025 to be between $715 million and $765 million, representing approximately 34% revenue growth at the midpoint [21] Other Important Information - The company’s liquidity as of March 31 was $1.146 billion, compared to $897.8 million at the end of 2024 [20] - The company plans to increase share repurchases throughout the remainder of the year [20] Q&A Session Summary Question: What drove the delay in the FMX launch? - Management acknowledged that extreme volatility in April created an unsuitable environment for a successful launch but confirmed the launch is scheduled for May [25][26] Question: Updated expectations on the OTC Global Holdings acquisition? - Management indicated that they are pleased with the integration progress and expect revenue growth from cross-selling opportunities, with margins expected to improve over time [30][31][34] Question: Key milestones after treasury futures? - Management outlined a three-year plan focusing on connectivity in year one, increasing volumes in year two, and full competition with CME in year three [39] Question: Cash burn related to FMX futures? - Management clarified that the cash burn to BGC is zero, as the partners are funding future development [40] Question: Clarity on Howard shares divestment? - Management confirmed compliance with Senate Ethics Committee standards and indicated that public SEC filings will be required upon divestment [43] Question: Tax rate expectations going forward? - Management expects the tax rate to be between 10% and 12% for the full year 2025 [46]

Core Viewpoint - BGC Group reported quarterly earnings of $0.29 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.25 per share a year ago [1] - The company achieved revenues of $664.24 million for the quarter, exceeding the Zacks Consensus Estimate by 4.59% and up from $578.61 million year-over-year [2] Financial Performance - BGC Group's earnings per share (EPS) for the last quarter was $0.29, consistent with expectations, and the company has surpassed consensus EPS estimates only once in the last four quarters [1] - The company has consistently exceeded revenue estimates, achieving this four times in the last four quarters [2] Market Performance - BGC Group shares have increased approximately 4.8% since the beginning of the year, contrasting with a decline of 4.7% in the S&P 500 [3] - The stock's future price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31, with projected revenues of $706.1 million, and for the current fiscal year, the EPS estimate is $1.22 on revenues of $2.72 billion [7] - The estimate revisions trend for BGC Group is favorable, leading to a Zacks Rank of 1 (Strong Buy), indicating expected outperformance in the near future [6] Industry Context - The Financial - Investment Bank industry, to which BGC Group belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance Highlights - BGC Group achieved record Q1 revenue of $664.2 million, a 14.8% increase year-over-year[10] - The company reported record Q1 pre-tax adjusted earnings of $160.2 million, up 18.4% year-over-year[10] - Adjusted EPS reached a record $0.29 in Q1, reflecting a 16.0% increase year-over-year[10] - Adjusted EBITDA decreased by 4.1% to $199.8 million[10] - GAAP fully diluted earnings per share increased by 10.0% to $0.11[10] Revenue Breakdown - Rates revenue increased by 14.8% to $200.9 million[17] - ECS (Energy, Commodities, and Shipping) revenue increased significantly by 26.6% to $149.9 million[17] - Foreign Exchange revenue saw a substantial increase of 31.0% to $110.0 million[17] - Credit revenue slightly decreased by 0.7% to $86.9 million[17] - Equities revenue remained relatively flat at $62.9 million, showing a minor increase of 0.1%[17] - Data, Network & Post-trade revenue increased by 5.2% to $32.5 million[17] Geographic Performance - Revenue from the Americas increased by 23.3% to $246.6 million[29] - EMEA revenue increased by 12.2% to $342.0 million[29] - Asia Pacific revenue saw a modest increase of 2.4% to $75.6 million[29] Strategic Acquisitions and Outlook - The acquisition of OTC Global Holdings was completed on April 1, 2025, for $325 million and is expected to be immediately accretive[41, 46] - Q2 2025 revenue is projected to be between $715 million and $765 million, representing a 30% to 39% increase year-over-year[72]

[Financial Highlights & CEO Commentary](index=1&type=section&id=Financial%20Highlights%20%26%20CEO%20Commentary) [Highlights of Consolidated Results](index=1&type=section&id=Highlights%20of%20Consolidated%20Results) 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](index=3&type=chunk) - 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](index=4&type=chunk) 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](index=2&type=section&id=Detailed%20Financial%20Performance) [Consolidated Revenues](index=2&type=section&id=Consolidated%20Revenues) 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](index=9&type=chunk) - 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](index=11&type=chunk) - 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](index=9&type=chunk) [Fenics](index=3&type=section&id=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](index=16&type=chunk) - FMX FX more than **doubled** its ADV to a record **$14.5 billion** in the first quarter[16](index=16&type=chunk) - PortfolioMatch ADV **doubled** due to strong growth in U.S. and European credit volumes, while Lucera's revenue increased by more than **15%**[21](index=21&type=chunk) [Consolidated Expenses and Taxes](index=4&type=section&id=Consolidated%20Expenses%20and%20Taxes) 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](index=5&type=section&id=Consolidated%20Share%20Count) 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](index=5&type=section&id=Outlook%20and%20Dividends) [Outlook](index=5&type=section&id=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](index=5&type=section&id=Dividend%20Information) 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](index=24&type=chunk) - The Q1 2025 dividend of **$0.02 per share** is **double** the **$0.01 per share** dividend declared in Q1 2024[68](index=68&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Financial Condition](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) 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](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) 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](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Definition of Non-GAAP Measures](index=11&type=section&id=Definition%20of%20Non-GAAP%20Measures) 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](index=38&type=chunk)[39](index=39&type=chunk)[44](index=44&type=chunk) - 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](index=57&type=chunk)[60](index=60&type=chunk) - 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](index=64&type=chunk) [Reconciliation of GAAP to Adjusted Earnings](index=19&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Earnings) 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](index=23&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Adjusted%20EBITDA) 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](index=24&type=section&id=Constant%20Currency%20Revenue%20Reconciliation) 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](index=26&type=section&id=Company%20Information) [About BGC Group, Inc.](index=26&type=section&id=About%20BGC%20Group%2C%20Inc.) 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](index=90&type=chunk) - 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](index=91&type=chunk)

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of ...

Core Viewpoint - BGC Group Inc. is positioned as a leader in digital transformation within capital markets, with upcoming first-quarter 2025 results expected to reflect strong performance driven by brokerage revenue growth in key sectors [1][2]. Financial Performance - BGC's fourth-quarter 2024 results showed strong brokerage revenue growth in Energy, Commodities and Shipping (ECS), Rates, and Foreign Exchange, contributing to a decent performance overall [2]. - The Zacks Consensus Estimate for BGC's sales is $635.1 million, indicating a year-over-year growth of 9.8%, while earnings are expected to rise by 16% to 29 cents [5][10]. - The total brokerage revenues are estimated at $576.3 million, reflecting a 9.1% increase from the prior year, driven by higher rates and foreign exchange revenues [9][10]. Revenue Estimates - The consensus estimate for rates is $182.3 million (4.1% growth), foreign exchange revenues are projected at $103.3 million (23% growth), and ECS revenues at $153.5 million (29.6% growth) [10][11]. - BGC Group anticipates total revenues between $610 million and $660 million, up from $578.6 million in the prior year [12]. Investment Strategy - BGC Group has focused on enhancing its electronic trading operations through its proprietary Fenics platform, which supports faster transactions and improved market data analytics [23]. - Recent acquisitions, including OTC Global Holdings and Sage Energy Partners, are expected to contribute over $450 million in annual revenues, solidifying BGC's position in the energy sector [24][27]. - The company has prioritized share repurchases, with a recent authorization of a $400 million buyback program, indicating a commitment to returning value to shareholders [29]. Market Position - BGC Group's stock has performed well, rising 3.3% year-to-date, outperforming the industry average of 1.4% and Interactive Brokers' 2.8% increase [15]. - The current price-to-tangible book (P/TB) ratio of 15.05X is below its three-year median of 18.90X, suggesting potential for value despite being at a premium compared to peers [19][22]. Future Outlook - The company is well-positioned to benefit from ongoing trends in energy transition and consistent global demand for oil, with a projected revenue CAGR of 1.5% from 2019 to 2024 [27]. - Despite potential challenges such as tariff uncertainties and regulatory pressures, BGC Group's strategic initiatives and market positioning suggest promising prospects for growth and returns [30][31].

Core Viewpoint - The U.S. stock market is experiencing volatility, with the S&P 500 declining 0.8% in April, marking its third consecutive monthly drop, while GDP shrank 0.3%, the first decline since early 2022. However, strong consumer spending and a stable job market indicate underlying confidence in the economy [1]. Group 1: Investment Strategy - In uncertain market conditions, a relative price strength strategy can help investors identify stocks that outperform their peers, thus staying aligned with market momentum [2]. - Stocks that show better performance than their industry or benchmark should be included in investment portfolios, as they are more likely to yield significant returns [4]. - It is essential to assess whether a stock has upside potential, particularly those that have outperformed the S&P 500 over the past 1 to 3 months and possess solid fundamentals [5]. Group 2: Screening Parameters - The screening criteria for identifying potential stocks include positive relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [7]. - Stocks must have a Zacks Rank of 1 (Strong Buy), a current price of at least $5, and an average 20-day trading volume of at least 50,000 to ensure adequate liquidity [8]. Group 3: Featured Stocks - **Kaiser Aluminum Corporation (KALU)**: Expected earnings growth of 66.1% for 2025, with a market cap of $1.1 billion. The Zacks Consensus Estimate for 2025 earnings has increased by 35.4% over the past 30 days, although shares have decreased by 29.3% in the past year [10][11]. - **Sprouts Farmers Market, Inc. (SFM)**: Anticipated earnings growth of 30.7% for 2025, with shares rising 131.9% in the past year. The company has consistently beaten earnings estimates, with a trailing four-quarter earnings surprise of approximately 16.5% [12][13]. - **BGC Group, Inc. (BGC)**: Projected EPS growth rate of 23.2% year-over-year for 2025, with a favorable expected growth rate of 24.7% over the next three to five years compared to the industry average of 13.8%. Shares have gained 7% in the past year [14][15]. - **ODDITY Tech Ltd. (ODD)**: Expected earnings growth of 3.1% for 2025, with shares increasing by 95.8% in the past year. The company has a trailing four-quarter earnings surprise of about 32.8% [16][17].

Core Viewpoint - In times of market volatility, value investing becomes a preferred strategy as investors seek to buy undervalued stocks when others are selling at lower prices [1][2]. Value Investing Strategy - Value investors capitalize on market uncertainty by purchasing stocks at discounted prices when other investors sell [1]. - The strategy can lead to "value traps" if not understood properly, where stocks underperform due to persistent issues rather than temporary problems [3]. Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, as a low PEG ratio indicates better value [5]. - Unlike P/E alone, the PEG ratio helps identify a stock's intrinsic value, although it has limitations regarding changing growth rates [5]. Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of A or B combined with a Zacks Rank of 1, 2, or 3 [6]. Selected Stocks - **Barrick Gold (GOLD)**: A leading gold mining company with 3.9 million ounces of gold and 195,000 tons of copper produced in 2024, holding 89 million ounces of proven and probable gold reserves. It has a Zacks Rank 2 and a Value Score of A, with a five-year expected growth rate of 33.5% [8][9]. - **StoneCo (STNE)**: A financial technology company in Brazil providing various financial services. It has a Zacks Rank 1 and a Value Score of B, with a long-term expected growth rate of 26.3% [9][10]. - **Synovus Financial (SNV)**: A diverse financial services company with a Zacks Rank 2 and a Value Score of A, boasting a five-year expected growth rate of 10.2% [11][12]. - **BGC Group, Inc. (BGC)**: A financial brokerage and technology company with a long-term expected earnings growth rate of 24.7%, holding a Value Score of B and a Zacks Rank of 1 [12][13].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - BGC Group is highlighted as a recommended growth stock based on the Zacks Growth Style Score system, which evaluates real growth prospects beyond traditional metrics [2] - The company currently holds a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - BGC Group has a historical EPS growth rate of 11.6%, but the projected EPS growth for this year is significantly higher at 22.7%, surpassing the industry average of 9% [4] Group 3: Asset Utilization - The asset utilization ratio for BGC Group is 0.54, indicating that the company generates $0.54 in sales for every dollar in assets, which is substantially higher than the industry average of 0.09 [5] Group 4: Sales Growth - The company's sales are expected to grow by 20.4% this year, compared to the industry average of 5.4%, showcasing strong sales growth potential [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for BGC Group have been revised upward, with the Zacks Consensus Estimate increasing by 5.2% over the past month, indicating positive momentum [8] Group 6: Investment Conclusion - BGC Group's combination of a Zacks Rank 1 and a Growth Score of B suggests it is a potential outperformer and a solid choice for growth investors [10]