BGC Group (BGCP) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of $550.8 million, up 11.7% year-over-year, with broad-based growth across all geographies and business lines, and double-digit growth in core businesses.

• Adjusted Earnings grew over 19%, with Adjusted EBITDA up 20.2% to $162.4 million, and post-tax Adjusted Earnings up 14.7% to $114.7 million, reflecting strong operating leverage and margin expansion.

• GAAP net income for fully diluted shares was $36.1 million, reversing a loss of $19.7 million in Q2 2023.

• FMX and Fenics businesses delivered improved profitability and margin expansion, with FMX UST volumes up 37% and FMX FX up 30% year-over-year; FMX to launch SOFR futures in September 2024.

• Completed corporate conversion to a full C-Corporation, reducing fully diluted share count and simplifying the organizational structure.

Financial highlights

• Q2 2024 revenues: $550.8 million (+11.7% YoY); brokerage revenues: $493.5 million (+11.3% YoY); Adjusted EBITDA: $162.4 million (+20.2% YoY); post-tax Adjusted EPS: $0.23 (+15% YoY).

• GAAP net income: $36.1 million (vs. -$19.7 million YoY); GAAP EPS: $0.08 (vs. -$0.05 YoY).

• Pre-tax Adjusted Earnings: $125.8 million (+19.2% YoY, margin 22.8%).

• Liquidity at June 30, 2024: $759.1 million, up from $701.4 million at year-end 2023.

• Compensation and employee benefits: $272.0 million (+11.8% YoY); total expenses: $500.2 million (-4.9% YoY).

Outlook and guidance

• Q3 2024 revenue guidance: $505 million–$555 million (vs. $482.7 million in Q3 2023); pre-tax Adjusted Earnings guidance: $110 million–$127 million (vs. $101.9 million YoY).

• Management expects continued benefit from electronic trading, market data demand, and high-margin technology-driven businesses.

• Fully diluted weighted-average share count expected to remain flat for full year 2024, barring extraordinary transactions.