Slide 1: BGC Group Earnings Presentation Q4 2024
BGC GROUP, INC. NASDAQ: BGC E A R N I N G S P R E S E N TAT I O N Q 4 2 0 2 4
Slide 2: Disclaimer
2 DISCLAIMER DISCUSSION OF FORWARD-LOOKING STATEMENTS ABOUT BGC Statements in this document regarding BGC that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statem
Slide 3: Q4 2024 & FY 2024 Performance
Q4 2024 & FY 2024 PERFORMANCE Highlights of Consolidated Results FY 2024 BUSINESS HIGHLIGHTS Q4 2024 Q4 2023 Change FY 2024 FY 2023 Change (USD millions) Revenues $572.3 $516.8 10.8% $2,262.8 $2,025.4 11.7% $2,262.8mm Record Full Year Revenue GAAP income from operations before income +11.7% yr/yr 27
Slide 4: Revenue by Asset Class
REVENUE BY ASSET CLASS 10% Revenue By Asset Class Data, Network & Post- Q4 2024 Q4 2023 Change FY 2024 FY 2023 Change trade and Other2,3 (USD millions) 10% 30% Rates $169.6 $155.8 8.8% $685.0 $610.5 12.2% Equities Rates $572mm ECS1 134.1 104.7 28.0% 483.2 386.2 25.1% 11% Q4 2024 Credit Foreign Excha
Slide 5: Revenue by Geography
REVENUE BY GEOGRAPHY Revenue By Geography Q4 2024 Q4 2023 100 Change FY 2024 FY 2023 Change (USD millions) Americas $217.2 $185.5 17.1% $820.6 $727.2 12.8% 38% AMERICAS $572mm 49% EMEA EMEA 281.9 264.8 6.5% 1,146.6 1,023.0 12.1% Q4 2024 Asia Pacific 73.3 66.5 10.2% 295.6 275.2 7.4% Total Revenue $57
Slide 6: Growing & Diversifying Business Model
GROWING & DIVERSIFYING BUSINESS MODEL HISTORIC REVENUE BY ASSET CLASS1 $2.3bn Data, Network, Post- 10% trade, and Other2 $1.9bn $2.3bn 10% Equities 7% 13% 13% Credit Record Full Year Revenues 16% 16% Foreign Exchange $1.1bn 19% 6% 10% 21% ECS Strong growth and 20% 15% diversification 21% 5% 30% Rate
Slide 7: Front Office Productivity
FRONT OFFICE PRODUCTIVITY FRONT OFFICE HEADCOUNT AND PRODUCTIVITY Period–end Front Office Headcount >$1 million LTM Front Office Productivity (in USD 000s)1 $1,018 $957 Record Full Year Front Office $861 Productivity $811 $736 $750 Consistent front office productivity growth 2,573 2,297 2,111 2,104
Slide 8: Consistent Earnings Growth
8 CONSISTENT EARNINGS GROWTH PRE-TAX ADJUSTED EARNINGS POST-TAX ADJUSTED EARNINGS & ADJUSTED EPS Pre-tax Adjusted Earnings Post-tax Adjusted Earnings $0.99 Pre-tax Adjusted Earnings Margin Adjusted EPS 22.9% 21.9% $0.82 20.8% $488mm $517mm 18.7% $0.69 $443mm $0.65 $411mm 17.0% $0.57 $377mm $373mm $3
Slide 9: Diverse Global Product Offering
9 DIVERSE GLOBAL PRODUCT OFFERING Rates ECS Foreign Exchange Products Revenue Products Revenue Products Revenue FY 2024 FY 2024 FY 2024 ▪ Government Bonds ▪ Spot FX ▪ Environmental & Energy 30% Transition Products ▪ OTC & Listed Interest ▪ FX Forwards Rate Derivatives ▪ Oil & Refined Products $685mm
Slide 10: Fenics Revenue Overview
Q4 2024 OVERVIEW FY 2024 OVERVIEW FENICS REVENUE BY ASSET CLASS $142mm $571mm Q4 2024 Revenue FY 2024 Revenue 36% 20% Foreign 9% 9% Rates Exchange $571mm Growth yr/yr Growth yr/yr $131mm $142mm $449mm $571mm $25mm $21mm FY 2024 $319mm $261mm $209mm 20% $110mm $117mm 22% CREDIT Data, Network & Post-t
Slide 11: FMX Futures and UST Platform Volumes
Exchange for US Interest Rate World’s Fastest Growing Wholesale State-Of-The-Art Spot FX & NDF Futures – The Most Widely Traded Cash US Treasury Platform Platform Futures Contract In The World $49bn +31% $9bn +38% Launched SOFR futures in Record Volume ADV Growth Record Volume ADV Growth September 2
Slide 12: Business Highlights: FMX UST Volume & Market Share
BUSINESS HIGHLIGHTS FMX UST VOLUME & MARKET SHARE UST TRADING VOLUME $52.3bn 27.9% 29.8% 29.4% 30.3% FMX UST ADV 25.3% 25.7% $53bn $52bn Q4 2024 (Q4 2024) 23.4% (ADV yr/yr change) 21.3% $45bn $47bn 28% 20.0% $41bn +28% $37bn $38bn $34bn $30bn FMX UST ADV Growth (Q4 2024 yr/yr) 11%2 30.3% 4Q22 1Q23 2
Slide 13: Data, Network & Post-Trade
DATA, NETWORK & POST-TRADE BUSINESS HIGHLIGHTS REVENUE GROWTH BUSINESSES $32.6mm Quarterly Provider and generator of data across global Record Q4 Revenue $33mm financial and commodity markets, supported by (Q4 2024 Revenue) $25mm BGC’s deep wholesale liquidity pools $21mm $18mm 10.3% Q4 2018 Q4 2020
Slide 14: ECS (Energy, Commodities & Shipping) Overview
ECS (“ENERGY, COMMODITIES, & SHIPPING”) OVERVIEW BUSINESS HIGHLIGHTS REVENUE BREAKDOWN ECS acquisitions expected to add over $450 million in combined annual revenue and be immediately accretive Commodities $134.1mm & Metals Environmental & Energy Transition Entered an agreement to acquire OTC in Oct
Slide 15: ECS Strategic Acquisitions: Case Study & Pipeline
ECS STRATEGIC ACQUISITIONS: CASE STUDY & PIPELINE SUCCESS OF TRIDENT ACQUISITION ECS ACQUISITION EXPECTED REVENUE IMPACT BGC has a strong track record of successful M&A integration and growth; Sage and OTC is expected to add an additional $450 million of annual ECS revenue Since acquiring Trident in
Slide 16: BGC's ECS Business Outperforming the Market
BGC’S ECS BUSINESS OUTPERFORMING THE MARKET 10-YEAR BGC ECS REVENUE GROWTH $483mm $483.2mm Record FY Revenue $293mm $292mm (FY2024 Revenue) $223mm $229mm $56mm ECS brokerage diversifies the macroeconomic drivers that fuel 2014 2016 2018 2020 2022 2024 trading volumes across BGC’s global platform 10-
Slide 17: Outlook
17 OUTLOOK Q1 2025 OUTLOOK Guidance Actual Yr/Yr % Change Metric (USD million) Q1 2025 Q1 2024 Low Mid High Revenues $610 – $660 $578.6 +5% +10% +14% Pre-tax Adjusted Earnings $145 – $161 $135.4 +7% +13% +19% BGC expects to update its quarterly outlook towards the end of March 2025. 17 17
Slide 18: GAAP Financial Results
GAAP FINANCIAL RESULTS
Slide 19: Balance Sheet
19 BALANCE SHEET BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 Assets Liabilities, Redeemable Partnership Interest, and Equity Cash and cash equivalents $ 711
Slide 20: Income Statement
20 INCOME STATEMENT BGC GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) (UNDER GAAP) Three Months Ended Dec 31, Full Year Ended Dec 31, Three Months Ended Dec 31, Full Year Ended Dec 31, 2024 2023 2024 2023 2024 2023 2024 2023 Revenues: O
Slide 21: Appendix
APPENDIX
Slide 22: Fully Diluted Weighted-Average Share Count Summary
22 BGC’S FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT SUMMARY Fully Diluted Q4 2024 Fully Diluted Weighted-Average Share Count Summary Weighted- Ownership (%) For Adjusted Earnings Average Shares (millions) PUBLIC OWNERSHIP (% OF FULLY-DILUTED SHARE COUNT) PUBLIC 342.1 69% Class A owned by Public 342.
Slide 23: Strongly Capitalized & Investment Grade Credit Profile
23 STRONGLY CAPITALIZED & INVESTMENT GRADE CREDIT PROFILE BGC Group, Inc. (in $’000s) As of 12/31/2024 Cash and cash equivalents $711,548 INVESTMENT GRADE CREDIT RATING Financial instruments owned, at fair value 186,197 Total Liquidity $897,781 ▪ Investment Grade Credit Rated: • Fitch: BBB- (Outlook
Slide 24: Fenics Ecosystem
24 FENICS ECOSYSTEM DATA, NETWORK & RATES CREDIT FOREIGN EXCHANGE EQUITIES POST-TRADE KEY PRODUCTS: KEY PRODUCTS: KEY PRODUCTS: • FX Spot FENICS MARKET DATA • Investment Grade Bonds (IG) • FX Options (Fenics Markets associated Market Data) • Interest Rate Derivatives MARKETS • EGBs • High Yield Bond
Slide 25: Fenics Businesses At-a-Glance
FENICS BUSINESSES AT-A-GLANCE TRADING PLATFORMS DATA, NETWORK AND POST-TRADE Fenics MIDFX Asset Class: Rates Asset Class: Foreign Exchange Asset Class: Data, Network and Post-trade – Market Data Products: U.S. Government Securities (Benchmarks, T-Bills & Off-the-runs) Products: Spot FX and NDFs Dist
Slide 26: LCH Clearing Partnership
LCH CLEARING PARTNERSHIP LCH IS A FULLY APPROVED CFTC DERIVATIVES CLEARING ORGANIZATION (“DCO”) AND THE WORLD'S LARGEST CLEARER OF INTEREST RATE SWAPS CLEARED U.S. DOLLAR INTEREST RATE WORLD’S LARGEST HOLDER OF CROSS-MARGIN CAPITAL SAVINGS SWAP MARKET SHARE INTEREST RATE SWAP COLLATERAL UP TO:2 97.7
Slide 27: FMX: Partnered with the Largest Banks & Liquidity Providers
FMX: PARTNERED WITH THE LARGEST BANKS & LIQUIDITY PROVIDERS 10 OF THE MOST IMPORTANT GLOBAL UNMATCHED CAPITAL SAVINGS FOR ALL CLIENTS (INCL. FCM CUSTOMER ACCOUNTS) INVESTMENT BANKS AND MARKET MAKING FIRMS INVESTED $172MM, AT A POST-MONEY EQUITY FMX Partners represent 7 of the 8 largest FCMs & 7 of t
Slide 28: BGC Revenue Correlation & Industry Volumes
28 BGC REVENUE CORRELATION & INDUSTRY VOLUMES BGC’S ASSET CLASS REVENUES ARE GENERALLY CORRELATED TO RELEVANT INDUSTRY SECONDARY MARKET TRADING VOLUMES Q4 2024 VS Q4 2023 Brokerage revenues are driven by secondary market trading volumes in the ASSET CLASS REVENUE TO INDUSTRY VOLUME CORRELATION1 INDU
Slide 29: Shareholder Value Creation
29 SHAREHOLDER VALUE CREATION BGC HAS A STRONG HISTORY OF CREATING VALUE FOR SHAREHOLDERS THROUGH ORGANIC GROWTH, ACQUISITIONS & INVESTMENTS IN TECHNOLOGY 1999 – eSpeed, leading electronic 2023 – Completed UST platform, IPOs conversion to Full C-Corporation5 2004 – Cantor forms BGC Partners, separat
Slide 30: Non-GAAP Definitions and Reconciliation Tables
NON-GAAP DEFINITIONS AND RECONCILIATION TABLES
Slide 31: Reconciliation of GAAP to Adjusted Earnings
31 RECONCILIATION OF GAAP TO ADJUSTED EARNINGS RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES TO ADJUSTED EARNINGS & GAAP FULLY DILUTED EPS TO POST-TAX ADJUSTED EPS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Dec 31, Full Year Ended Dec 31, Three Mo
Slide 32: Reconciliation of GAAP to Adjusted Earnings Footnotes
32 RECONCILIATION OF GAAP TO ADJUSTED EARNINGS FOOTNOTES FOOTNOTES (1) The components of equity-based compensation and allocations of net income to limited partnership units and FPUs are as follows (in thousands): Three Months Ended Dec 31, Full Year Ended Dec 31, 2024 2023 2024 2023 Issuance of com
Slide 33: Other Select Financial Data
33 OTHER SELECT FINANCIAL DATA RECONCILIATION OF GAAP NET INCOME (LOSS) AVAILABLE TO COMMON FULLY DILUTED WEIGHTED-AVERAGE SHARE COUNT STOCKHOLDERS TO ADJUSTED EBITDA (IN THOUSANDS) (UNAUDITED) (IN THOUSANDS) (UNAUDITED) Three Months Ended Dec 31, Full Year Ended Dec 31, Three Months Ended Dec 31, F
Slide 34: Differences Between Non-GAAP and GAAP Consolidated Results
34 DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS NON-GAAP FINANCIAL MEASURES The non-GAAP definitions below include references to certain equity-based compensation instruments, such as restricted stock awards and/or restricted stock units (“RSUs”), that the Company has issued and outsta
Slide 35: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 35 (CONTINUED) The amounts of certain quarterly equity-based compensation charges are based upon the Company’s estimate of such expected charges during the annual period, as described further below under “Methodology for Calculating Adjusted
Slide 36: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 36 (CONTINUED) METHODOLOGY FOR CALCULATING ADJUSTED EARNINGS TAXES Although Adjusted Earnings are calculated on a pre-tax basis, BGC also reports post-tax Adjusted Earnings to fully diluted shareholders. The Company defines post-tax Adjusted
Slide 37: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 37 (CONTINUED) MANAGEMENT RATIONALE FOR USING ADJUSTED EARNINGS BGC’s calculation of Adjusted Earnings excludes the items discussed above because they are either non-cash in nature, because the anticipated benefits from the expenditures are
Slide 38: Differences Between Non-GAAP and GAAP Consolidated Results (Continued)
DIFFERENCES BETWEEN NON-GAAP AND GAAP CONSOLIDATED RESULTS 38 (CONTINUED) TIMING OF OUTLOOK FOR CERTAIN GAAP AND NON-GAAP ITEMS BGC anticipates providing forward-looking guidance for GAAP revenues and for certain non-GAAP measures from time to time. However, the Company does not anticipate providing
Slide 39: Media and Investor Contacts
39 39 Media Contact: Erica Chase +1 212-610-2419 Investor Contact: ir.bgcg.com Jason Chryssicas twitter.com/bgcgroupinc +1 212-610-2426 linkedin.com/company/bgc_group