BGC Group’s fourth-quarter results were met with a positive market reaction, reflecting investor optimism around the company’s operational momentum and cost discipline. Management attributed the quarter’s performance to strong organic growth across all asset classes and geographies, as well as the successful integration of the OTC acquisition. Co-CEO Sean Windeatt cited BGC’s expansion into the energy and shipping sectors and improved electronic trading capabilities as key contributors. The completion of the first phase of a cost reduction program, which is expected to yield significant savings in 2026, was also highlighted as an important factor supporting profitability.
Is now the time to buy BGC? Find out in our full research report (it’s free for active Edge members).
BGC (BGC) Q4 CY2025 Highlights:
- Revenue: $723.3 million vs analyst estimates of $750.9 million (32% year-on-year growth, 3.7% miss)
- Adjusted EPS: $0.31 vs analyst estimates of $0.29 (6.9% beat)
- Revenue Guidance for Q1 CY2026 is $890 million at the midpoint, above analyst estimates of $831.8 million
- Operating Margin: -7.9%, down from -2.9% in the same quarter last year
- Market Capitalization: $4.55 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From BGC’s Q4 Earnings Call
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Patrick Malcolm Moley (Piper Sandler) asked for details about the drivers behind first quarter guidance and the sustainability of higher organic revenue growth. Co-CEO Sean Windeatt explained that growth is coming from market share gains and new hires in rates and FX, along with momentum across the board.
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Patrick Malcolm Moley (Piper Sandler) followed up on the sale of KACE and the future direction of the Fenics portfolio. Windeatt stated that divestitures focused on lower-growth businesses allow management to prioritize higher-growth assets within Fenics, and further portfolio adjustments will be considered if shareholder value is maximized.
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Elias Noah Abboud (Bank of America) asked about structural versus cyclical growth in the energy segment and the impact of new client additions. Co-CEO John Joseph Abularrage responded that new players are entering the ECS market and that BGC is seeing outperformance in areas where it has invested over recent years.
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Elias Noah Abboud (Bank of America) inquired if the combined market share in ECS exceeds the sum of BGC and OTC’s prior shares. Abularrage confirmed that the benefits of the OTC acquisition have surpassed expectations, especially in oil, gas, and refined products.
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Elias Noah Abboud (Bank of America) asked about the timeline for monetizing FMX futures and the launch of Treasury futures. Abularrage indicated that fee structure changes are coming this summer for early adopters, with a focus on growing SOFR futures before expanding Treasury futures offerings.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be monitoring (1) continued market share gains in FMX futures and electronic U.S. Treasury products, (2) the ramp-up of new fixed income solutions within Lucera and broader Fenics platform adoption, and (3) sustained growth in energy, commodities, and shipping. Additionally, we will watch for further cost efficiencies and the impact of strategic divestitures on profitability.
BGC currently trades at $9.53, up from $8.71 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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