BGC Q3 2025: Revenue Surges from Acquisitions, But Margin Pressures Mount

BGC Group’s Q3 2025 demonstrated solid double-digit top-line growth, reflecting its strategy of diversifying across asset classes, regions, and revenue streams. Its acquisition of OTC Global materially boosted energy, commodities, and shipping (ECS) revenues, allowing BGC to claim the title of the world’s largest ECS broker. Organic growth was also strong in ECS (~21–22% ex-OTC) and in Fenics’ growth platforms. [0][1][9] The electronic platforms—FMX and Fenics—emerged as core growth engines, as market share in U.S. Treasuries and advanced metrics like SOFR futures volume indicate increasing institutional adoption. [0][2]

However, the growth came with clear cost trade-offs. Compensation and employee benefits rose nearly 50%, far outpacing revenue growth, leading to margin compression. Adjusted EBITDA margin fell significantly q/q, with non-compensation expenses and interest cost also contributing. [0][1][9] BGC’s guidance for Q4 (revenues $720–770 million; pre-tax adjusted earnings $152.5–167.5 million) indicates management expects continued growth, though sustaining margin stability will depend heavily on cost control and further leverage of electronic trading volumes. [2][9]

In context, large investment banks like Morgan Stanley, Goldman Sachs, Bank of America, and Citigroup saw strong performance in their investment banking, trading, and wealth management divisions—investment banking revenues up ~40%, equities trading rising 30–35%, and net incomes surging. [3][4] While BGC is not a direct competitor in dealmaking or banking services, investors may be comparing its performance with these peers in terms of growth vs margins. BGC’s shift toward electronic high-volume trading platforms aligns with industry trends favoring scale, automation, and fee-based or transaction-based revenue. [0][9]

Strategically, several questions arise: Can BGC maintain its electronic trading momentum while managing acquisition integration? Will its margin compression reverse, especially as it implements its cost reduction program? Also, how will macro interest rate dynamics (which influence trading volumes and cost of debt) affect its financial leverages? And how sustainable is earnings per share growth, especially given rising interest costs and dilution or stock repurchases?