Share count
481Mpeak FY2020
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BGC, BGC Group Inc.
Capital Markets & Asset Management financial
BGC and leading global investment banks and market making firms have partnered to create FMX, part of the BGC Group of companies, which includes a U.S. interest rate futures exchange, a cash U.S.
We are a leading global marketplace, data, and financial technology company across the ECS and financial markets.
We specialize in the brokerage and trade execution of a broad range of ECS products, including listed derivatives and physical commodities in the oil and refined, and environmental and energy transition, markets, as well as ship chartering.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$2.4B
+34.7% YoY · 8% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $2.7B 5-yr avg $1.8B
Net margin 6.8% 5-yr avg 5.8%
Revenue $955M +43.8% vs yr-ago qtr
Net income $83M yr-ago $53M
Net margin 8.7% yr-ago 8.0%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Trading volume and the data franchise. What decides it: volumes across its markets, which spike when volatility does; the network economics of a deep liquidity pool rivals cannot easily replicate; and the recurring, high-margin market-data and listing fees layered on top. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Operating margin has been modest for a fee business (median 10%). It earns this on little capital, so return on equity has run near 11%, the leverage of a model that needs almost no plant to grow. A high return that does not fade can mark a moat, but whether the volumes and the data franchise hold their pricing is what the 10-K settles, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $1.6B | $1.8B | $1.6B | $1.8B | $1.7B | $1.7B | $1.4B | $1.6B | $1.8B | $2.4B | $2.7B | RevenueRevenue |
| 19.2% | 12.6% | 19.2% | 8.7% | 8.8% | 14.8% | 11.0% | 8.4% | 9.6% | 9.1% | 12.5% | Operating marginOp. mgn |
| 11.9% | 2.9% | 12.6% | 2.5% | 3.0% | 9.2% | 4.2% | 2.4% | 6.8% | 6.3% | 6.8% | Net marginNet mgn |
| $185M | $51M | $202M | $44M | $51M | $153M | $59M | $39M | $123M | $155M | $184M | Net incomeNet inc. |
| 23% | — | 24% | 53% | 29% | 13% | 40% | 33% | 29% | 30% | 28% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| ($124M) | $368M | ($92M) | $194M | $272M | $407M | $214M | $390M | $286M | $373M | $393M | Owner earningsOwner earn. |
| 16% | 8% | 26% | 7% | 7% | 25% | 9% | 4% | 14% | 16% | 17% | Return on equityROE |
| 1% | −23% | −4% | −22% | −1% | 22% | 7% | 2% | 10% | 12% | 13% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $5.0B | $5.4B | $3.4B | $3.9B | $4.0B | $3.3B | $3.1B | $3.2B | $3.6B | $4.4B | $5.9B | Total assetsAssets |
| $536M | $513M | $337M | $415M | $596M | $554M | $485M | $656M | $712M | $852M | $781M | Cash & investmentsCash+inv |
| $1.2B | $634M | $768M | $675M | $754M | $620M | $670M | $885M | $899M | $972M | $1.1B | Shareholders’ equityEquity |
| Per share | |||||||||||
| 433M | 454M | 322M | 472M | 547M | 540M | 499M | 490M | 479M | 481M | 479M | Shares out (diluted)Shares |
| $3.59 | $3.85 | $4.98 | $3.73 | $3.09 | $3.08 | $2.82 | $3.28 | $3.78 | $5.08 | $5.64 | Revenue / shareRev/sh |
| $0.43 | $0.11 | $0.63 | $0.09 | $0.09 | $0.28 | $0.12 | $0.08 | $0.26 | $0.32 | $0.38 | EPS (diluted)EPS |
| $-0.29 | $0.81 | $-0.29 | $0.41 | $0.50 | $0.75 | $0.43 | $0.80 | $0.60 | $0.78 | $0.82 | Owner earnings / shareOE/sh |
| $0.39 | $0.44 | $0.72 | $0.41 | $0.11 | $0.03 | $0.03 | $0.04 | $0.07 | $0.08 | $0.08 | Dividends / shareDiv/sh |
| $2.73 | $1.40 | $2.39 | $1.43 | $1.38 | $1.15 | $1.34 | $1.81 | $1.88 | $2.02 | $2.30 | Book value / shareBVPS |
The diluted share count moved ×1/1.41 into 2018 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×1.47 into 2019 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +3.9%/yr | +10.4%/yr |
| Owner earnings / share | — | +9.3%/yr |
| EPS | −3.1%/yr | +28.2%/yr |
| Dividends / share | −16.1%/yr | −6.0%/yr |
| Capital spending / share | +0.9%/yr | −4.5%/yr |
| Book value / share | −3.3%/yr | +8.0%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$2.4Blow FY2022
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K · source on SEC EDGAR →
Is it a good business?
- Operating margin 12.3%Modest fee marginOperating income $299M ÷ revenue $2.4BIndustry peers: median 24%
What this means
The heart of a exchange: how much of each fee dollar survives the cost of running the business. Revenue is a toll on trading volume plus the recurring market-data and listing fees the venue generates, protected by the network economics of a deep liquidity pool that rivals cannot easily replicate. A high margin held for years, through a market it does not control, is the operational mark of a real franchise.
- Net margin 6.3%SolidNet income $155M ÷ revenue $2.4B
What this means
What reaches the owner after tax and interest. For a capital-light fee business this should be a wide share of revenue; when it is thin despite a high operating margin, debt taken on for acquisitions is usually the reason, so read it next to the balance sheet.
- Return on equity 16%StrongNet income $155M ÷ equity $972MIndustry peers: median 14%
What this means
Because the business ties up little capital, a healthy fee stream throws off a high return on the equity behind it. Read it with the buyback record: returning capital lifts this ratio honestly, but heavy debt taken to do so can flatter it.
Does AI threaten the moat?
Moderate contestabilityAI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“We and our competitors may use AI in our businesses, and challenges with properly managing its use could result in competitive harm, regulatory action, legal liability and brand or reputational harm.”
The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Acquisitions & goodwill
from the balance sheet & the 10-year cash-flow recordGoodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.
Goodwill & intangibles$1.1B24% of all assets; the premium carried on the balance sheet for businesses acquired
Against book equity67%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital
Cash spent acquiring$637Mover 10 years buying other businesses, against $232M of capital spent building
None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.
Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2020 | Mr. H. Lutnick | $12.0M | $12.2M | $272M |
| 2021 | Mr. H. Lutnick | $19.8M | $19.9M | $407M |
| 2022 | Mr. H. Lutnick | $13.0M | $13.1M | $214M |
| 2023 | Mr. H. Lutnick | $17.0M | $17.1M | $390M |
| 2024 | Mr. H. Lutnick | $15.0M | $16.9M | $286M |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership<1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
- CEO pay ratio117:1
What the chief earns for every dollar the median employee makes, per the 2025 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
- Stock-based compensation$131M
The slice of the business handed to employees in shares this year, 5% of revenue, equal to 44% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Peers, Capital Markets & Asset Management
The same industry, side by side on fee margins. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Op. margin | Net margin | ROE |
|---|---|---|---|---|
| NDAQNasdaq Inc. | $8.3B | 24.4% | 17.8% | 13% |
| CMECME Group Inc. | $6.5B | 60.9% | 54.9% | 10% |
| CBOECboe Global Markets Inc. | $4.7B | 22.4% | 16.7% | 14% |
| HLIHoulihan Lokey | $2.6B | 20.5% | 16.1% | 18% |
| MORNMorningstar Inc. | $2.4B | 17.4% | 15.2% | 17% |
| BGCBGC Group Inc. | $2.4B | 10.3% | 5.3% | 11% |
| SEICSEI Investments Company | $2.3B | 26.6% | 27.0% | 27% |
| TWTradeweb Markets Inc. | $2.1B | 34.0% | 23.5% | 6% |
| Group median | — | 23.4% | 17.2% | 14% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what BGC Group Inc. has delivered.
$
Through the cycle, BGC Group Inc. earns about $379M on its 15.5% median owner-earnings margin. This year’s 15.3% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25+1%/yr
Owner-earnings growth · ’16→’25+12%/yr
Owner-earnings growth · ’16→’25+12%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings $393M on 474M shares outstanding (a weighted basic average, the only count this filer tags); net debt $996M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "BGC Group Inc. (BGC), the owner's record," https://ownerscorecard.com/c/BGC, data as of 2026-07-09.
Manual order: ← BG its page in the Manual BGDE →
Industry order: ← BEN the Capital Markets & Asset Management chapter BGDE →