We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BGC's brokerage and Fenics revenues rose y/y, driven by electronic trading volumes and growth platforms.
BGC expects Q3 revenues of $775-$835 million and higher adjusted pre-tax earnings than a year ago.
BGC Group, Inc.’s (BGC - Free Report) second-quarter 2026 adjusted earnings of 35 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line improved 12.9% from the prior-year quarter.
Results were aided by an improvement in revenues to record levels, primarily driven by higher brokerage revenues. An increase in Fenics revenues was another positive. However, higher total expenses hurt the results to some extent. Probably due to this, shares of the company have lost 2.1% following the earnings release on July 30.
Net income available to common shareholders (GAAP basis) was $72.5 million, up 26% year over year.
BGC’s Revenues Improve, Expenses Rise
Quarterly revenues were a record $845.5 million, up 7.8% year over year. The rise was driven by an increase in total brokerage revenues, fees from related parties, data, network and post-trade fees, and interest and dividend income. The top line beat the Zacks Consensus Estimate of $814.9 million.
Fenics revenues increased 14.3% year over year to $186.2 million. Fenics Markets revenues of $152.8 million increased 12.6%, driven by higher electronic trading volumes across Rates, Credit, and Foreign Exchange, and increased Fenics Market Data revenues. Fenics Growth Platforms generated revenues of $33.4 million, a 22.9% increase, primarily driven by FMX, PortfolioMatch and Lucera.
Total expenses increased 8.7% from the prior-year quarter to $773.6 million. Total compensation and employee benefits expenses increased 5%, while total non-compensation expenses grew 17.4%.
Total net other income was $27 million, up significantly from $3 million in the prior-year quarter.
BGC’s Balance Sheet Strong
As of June 30, 2026, total assets were $5.75 billion, up from $4.41 billion as of Dec. 31, 2025. Total stockholders’ equity was $1.11 billion, up from $972.5 million.
As of June 30, 2026, cash and cash equivalents (including cash segregated under regulatory requirements) were $786.6 million compared with $873.7 million as of Dec. 31, 2025.
BGC’s Q3 2026 Outlook
Management expects revenues to be $775-$835 million (whereas it reported $736.8 million in the third quarter of 2025).
Pre-tax adjusted earnings are expected to be $172-$190 million (suggesting a rise from the $155.1 million registered in the prior-year quarter).
Our Take on BGC
BGC Group’s structural electronification and diversified growth underpin scalable margins despite cyclical markets globally. However, an elevated expense base despite planned cost-saving efforts is concerning.
Evercore Inc.’s (EVR - Free Report) second-quarter 2026 adjusted earnings of $2.91 per share missed the Zacks Consensus Estimate of $3.02. The bottom line compared favorably with adjusted earnings of $2.42 in the prior-year quarter.
EVR’s results were hurt by higher expenses. However, an increase in revenues and higher assets under management balance in the Wealth Management business supported the results to an extent.
Tradeweb Markets Inc.’s (TW - Free Report) second-quarter 2026 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line increased 11.5% year over year.
TW’s results were primarily aided by higher revenues, partly offset by a slight increase in expenses.
View the Zacks #1 Rank List
Image: Bigstock
BGC Q2 Earnings Beat on Record Revenues, Stock Falls as Costs Rise Y/Y
Key Takeaways
BGC Group, Inc.’s (BGC - Free Report) second-quarter 2026 adjusted earnings of 35 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line improved 12.9% from the prior-year quarter.
Results were aided by an improvement in revenues to record levels, primarily driven by higher brokerage revenues. An increase in Fenics revenues was another positive. However, higher total expenses hurt the results to some extent. Probably due to this, shares of the company have lost 2.1% following the earnings release on July 30.
Net income available to common shareholders (GAAP basis) was $72.5 million, up 26% year over year.
BGC’s Revenues Improve, Expenses Rise
Quarterly revenues were a record $845.5 million, up 7.8% year over year. The rise was driven by an increase in total brokerage revenues, fees from related parties, data, network and post-trade fees, and interest and dividend income. The top line beat the Zacks Consensus Estimate of $814.9 million.
Fenics revenues increased 14.3% year over year to $186.2 million. Fenics Markets revenues of $152.8 million increased 12.6%, driven by higher electronic trading volumes across Rates, Credit, and Foreign Exchange, and increased Fenics Market Data revenues. Fenics Growth Platforms generated revenues of $33.4 million, a 22.9% increase, primarily driven by FMX, PortfolioMatch and Lucera.
Total expenses increased 8.7% from the prior-year quarter to $773.6 million. Total compensation and employee benefits expenses increased 5%, while total non-compensation expenses grew 17.4%.
Total net other income was $27 million, up significantly from $3 million in the prior-year quarter.
BGC’s Balance Sheet Strong
As of June 30, 2026, total assets were $5.75 billion, up from $4.41 billion as of Dec. 31, 2025. Total stockholders’ equity was $1.11 billion, up from $972.5 million.
As of June 30, 2026, cash and cash equivalents (including cash segregated under regulatory requirements) were $786.6 million compared with $873.7 million as of Dec. 31, 2025.
BGC’s Q3 2026 Outlook
Management expects revenues to be $775-$835 million (whereas it reported $736.8 million in the third quarter of 2025).
Pre-tax adjusted earnings are expected to be $172-$190 million (suggesting a rise from the $155.1 million registered in the prior-year quarter).
Our Take on BGC
BGC Group’s structural electronification and diversified growth underpin scalable margins despite cyclical markets globally. However, an elevated expense base despite planned cost-saving efforts is concerning.
BGC Group, Inc. Price, Consensus and EPS Surprise
BGC Group, Inc. price-consensus-eps-surprise-chart | BGC Group, Inc. Quote
Currently, BGC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of BGC’s Peers
Evercore Inc.’s (EVR - Free Report) second-quarter 2026 adjusted earnings of $2.91 per share missed the Zacks Consensus Estimate of $3.02. The bottom line compared favorably with adjusted earnings of $2.42 in the prior-year quarter.
EVR’s results were hurt by higher expenses. However, an increase in revenues and higher assets under management balance in the Wealth Management business supported the results to an extent.
Tradeweb Markets Inc.’s (TW - Free Report) second-quarter 2026 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line increased 11.5% year over year.
TW’s results were primarily aided by higher revenues, partly offset by a slight increase in expenses.