BGC Group, Inc.

What they do

BGC runs an integrated platform for price discovery, trade execution, and post-trade processing across over-the-counter and exchange-traded markets, serving banks, broker-dealers, hedge funds, governments, corporations, and commodity end users. Its technology-driven businesses, grouped as Fenics, include Fenics Markets (fully electronic brokerage, data, network, and post-trade) and Fenics Growth Platforms (FMX UST, FMX FX, FMX Futures Exchange, Lucera, PortfolioMatch). As of June 30, 2026, the company had 2,467 brokers, salespeople, managers, and other front-office personnel across major geographies including New York and London.

Revenue drivers

• ECS (Energy, Commodities, and Shipping) — Largest brokerage line at $275.5 million in 2Q26, up 5.3% year over year, driven by shipping, environmental, and commodities, partly offset by lower oil and refined product volumes after the Strait of Hormuz closure.
• Rates — Second-largest brokerage line at $221.9 million in 2Q26, up 10.6%, on higher volumes across major Rates products; includes the electronic Fenics integrated business.
• Foreign Exchange, Credit, Equities — Combined $274.0 million in 2Q26: FX $118.7 million (+9.4%), Credit $79.3 million (+5.4%), Equities $76.0 million (+2.8%).
• Data, Network, and Post-trade — Smaller but higher-margin at $36.7 million in 2Q26, up 3.4% as reported and up 18.6% excluding kACE; FMX-related data is reported within the related businesses.

Recent performance

BGC reported record second quarter 2026 revenues of $845.5 million, up 7.8% versus 2Q25, with total brokerage revenues of $771.4 million, up 7.2%. GAAP income from operations before income taxes rose 31.4% to $98.9 million, GAAP net income for fully diluted shares rose 26.2% to $69.6 million, and GAAP fully diluted EPS was $0.15 versus $0.11. Post-tax Adjusted Earnings were $171.0 million, or $0.35 per share, up 12.9% per share, and Adjusted EBITDA was $228.7 million, up 7.2%. Management said first-half 2026 revenues rose more than 24% to $1.8 billion, the highest ever through the first two quarters, with EMEA up 11.2% and Americas up 6.1% while APAC fell 2.9%.

Strategy

BGC is investing in FMX, which includes FMX UST, FMX Futures Exchange, and FMX FX, and which management describes as challenging CME's leading position in U.S. interest rate futures, cash U.S. Treasuries, and spot foreign exchange. FMX Equity Partners invested $171.7 million in April 2024 for a 25.75% ownership interest at a $666.7 million post-money valuation, with an additional 10.3% subject to trading volume targets. FMX Futures Exchange launched SOFR futures on September 23, 2024 and U.S. Treasury futures on May 18, 2025, initially 2-year and 5-year, then the remaining tenors across the full curve on August 3, 2026. The company also announced a partnership with Fanatics to build a prediction market ecosystem for retail and institutional participants, and management continues converting markets to fully electronic execution where clients prefer it.

Risks

• Concentration in brokerage volumes — Revenue depends on trading volumes and volatility; 2Q26 ECS growth was partly offset by lower oil and refined product volumes due to the Strait of Hormuz closure.
• FMX execution risk — FMX is described as challenging CME's leading position, and the 10.3% additional equity to FMX Equity Partners is subject to meeting trading volume targets.
• Geographic revenue mix — EMEA and Americas grew in 2Q26 while APAC revenues decreased 2.9%, leaving results exposed to regional conditions.
• Related-party relationships — Cantor Fitzgerald is the parent and affiliates including CF&Co and Newmark share personnel and services with BGC, as shown by Chairman and EVP/General Counsel Stephen M. Merkel's roles at Cantor and Newmark.

Outlook

Management highlighted record second quarter and first-half 2026 revenues, all-time-high FMX UST market share of 42%, and new market share highs in FMX SOFR and U.S. Treasury futures in June 2026. It said the full U.S. Treasury futures curve listed on August 3, 2026 should support further growth in trading volumes and open interest on the exchange. The Fanatics prediction market partnership was cited as expected to create long-term shareholder value. The filings note that BGC will ultimately defer to client preference on execution method.