Slides
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NASDAQ: BGC BGC Group, Inc. Q3 2026 Earnings Presentation
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B G C G R O U PB G C G R O U P 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 statements. These include statements about the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, BGC undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward- looking statements, see BGC’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K. NOTE REGARDING FINANCIAL TABLES AND METRICS Excel versions of certain tables in this document are available for download online. The Excel tables may include other useful information that may not be contained herein, including certain of BGC’s financial results and metrics from the current period to as far back as the first quarter of 2024. These Excel tables are accessible at https://ir.bgcg.com/events- presentations/. OTHER ITEMS OF NOTE Unless otherwise stated, all results provided in this document compare the third quarter of 2026 with the year-earlier period. Certain reclassifications/recasts may have been made to previously reported amounts to conform to the current presentation and to show results on a consistent basis across periods. NON-GAAP FINANCIAL MEASURES This presentation should be read in conjunction with BGC’s most recent financial results press releases and filings or reports on Form 10-K, Form 10-Q or Form 8-K. Throughout this presentation, BGC refers to certain non-GAAP financial measures, including Adjusted Earnings before noncontrolling interest in subsidiaries and taxes or Pre-Tax Adjusted Earnings, Post- Tax Adjusted Earnings, Post-Tax Adjusted Earnings per share or Adjusted EPS, Adjusted EBITDA, Liquidity, and Constant Currency. All non-GAAP results discussed herein are comparable to and reconciled with the most directly comparable GAAP figures. For an updated complete description of Adjusted Earnings before noncontrolling interest in subsidiaries and taxes or Pre- Tax Adjusted Earnings, Post-Tax Adjusted Earnings, Post-Tax Adjusted Earnings per share or Adjusted EPS, Adjusted EBITDA, Liquidity, and Constant Currency and how, when, and why management uses these and other non-GAAP measures, as well as reconciliations of these measures to the comparable GAAP measures, and more information regarding GAAP and non- GAAP results, see the “Non-GAAP Definitions and Reconciliation Tables” section of this presentation. Below under “Highlights of Consolidated Results” is a summary of certain GAAP and non-GAAP results for BGC. Results on a GAAP and non-GAAP basis are included towards the end of this presentation, with appropriate reconciliations provided in the “Non-GAAP Definitions and Reconciliation Tables” section noted above and in our most recent financial results press release and/or are available at http://ir.bgcg.com. Note: Certain totals may not add due to rounding. 2
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B G C G R O U PB G C G R O U P $833mm Record Q3 Total Revenues1 Q3 2026 $188mm Record Q3 Pre-Tax Adjusted Earnings1,2 Q3 2026 $250mm Record Q3 Adjusted EBITDA1,2 Q3 2026 $0.34 Record Q3 Adjusted EPS1,2 Q3 2026 Highlights of Consolidated Results (USD millions) Q3 2026 Q3 2025 % Change Revenues $832.6 $736.8 13.0% GAAP income from operations before income taxes 98.1 33.5 192.7% GAAP net income for fully diluted shares 68.7 26.8 156.7% Adjusted Earnings before noncontrolling interest in subsidiaries and taxes2 187.5 155.1 20.9% Post-Tax Adjusted Earnings2 165.9 141.1 17.5% Adjusted EBITDA2 249.5 167.6 48.9% Per Share Results Q3 2026 Q3 2025 % Change GAAP fully diluted earnings per share $0.14 $0.06 133.3% Post-Tax Adjusted Earnings per share2 $0.34 $0.29 17.2% 1. BGC standalone financial results, excluding Newmark prior to the spin-off in November 2018. 2. Adjusted Earnings before noncontrolling interest in subsidiaries and taxes or Pre-Tax Adjusted Earnings, Post-Tax Adjusted Earnings, Post-Tax Adjusted Earnings per share or Adjusted EPS, and Adjusted EBITDA are non-GAAP financial measures. See the “Non-GAAP Definitions and Reconciliation Tables” section in this presentation for reconciliations to their most comparable GAAP financial measures. Financial Highlights Q 3 2 0 2 6 R E S U L T S 3
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B G C G R O U PB G C G R O U P BGC Group Overview A LEADING MARKETPLACE FOR OTC PRODUCTS THAT DON’T TRADE ON AN EXCHANGE, A CRITICAL LIQUIDITY PROVIDER FOR E X C H A N G E- L I S T E D P R O D U C T S , A N D T H E O P E R A T O R O F A F U L L Y R E G U L A T E D U . S . I N T E R E S T R A T E F U T U R E S E X C H A N G E . B U S I N E S S M O D E L R E V E N U E D R I V E R S Intermediary Trade Execution Higher Volumes → Higher Revenues Data, Network & Post- Trade Services Balance Sheet Light Market Volatility Higher Secondary Market Trading Activity Increased Issuance Electronification C O R E A D V A N T A G E S SCALE & LIQUIDITY Access to the deepest pools of liquidity, providing tighter pricing & speed of execution via BGC's global network of the world's largest trading partners. ELECTRONIC TRADING Uniquely positioned in wholesale markets via leading electronic trading offerings, including Fenics & FMX. ANONYMITY BGC's anonymous trading protocols are critical for large and/or sensitive transactions. PRODUCT & GEOGRAPHIC DIVERSITY A product offering more comprehensive than exchanges and electronic trading platforms. REGULATORY COMPLIANCE Manages operational and regulatory risk utilizing BGC's robust compliance and reporting services. 4
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B G C G R O U PB G C G R O U P D I V E R S I F I E D G L O B A L P L A T F O R M Revenue by Asset Class (USD millions) Q3 2026 Q3 2025 % Change ECS $287.1 $241.6 18.8% Rates 219.6 195.3 12.4% Foreign Exchange 121.5 106.7 13.9% Credit 67.4 69.1 (2.5)% Equities 77.3 60.4 28.0% Total Brokerage Revenues $772.8 $673.1 14.8% Data, Network & Post-Trade 36.1 34.3 5.1% Data, Network & Post-Trade (excluding kACE) 36.1 29.8 21.2% Other1 23.6 29.4 (19.7)% Total Revenues $832.6 $736.8 13.0% 34% ECS (“Energy, Commodities and Shipping”) 26% Rates 9% Equities 8% Credit 7% Data, Network & Post- Trade and Other1 15% Foreign Exchange 1. Other includes interest and dividend income, fees from related parties, and other revenues. Revenue by Asset Class Q3 2026 5 $833mm TOTAL REVENUES
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B G C G R O U PB G C G R O U P Revenue by Geography Revenue by Geography (USD millions) Q3 2026 Q3 2025 % Change EMEA $446.5 $385.9 15.7% Americas 294.5 262.4 12.3% Asia Pacific 91.5 88.5 3.4% Total Revenues $832.6 $736.8 13.0% Revenue by Currency (USD millions equivalent)1 Q3 2026 % of Total USD $573.1 69% EUR 137.4 16% GBP 46.7 6% Other 75.4 9% Total Revenues $832.6 100% 54% EMEA 11% ASIA PACIFIC 35% AMERICAS 1. GBP to USD average exchange rate of 1.34 for Q3 2026, and EUR to USD average exchange rate of 1.15 for Q3 2026. R E V E N U E G R O W T H A C R O S S A L L G E O G R A P H I E S Q3 2026 6 $833mm TOTAL REVENUES
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B G C G R O U PB G C G R O U P Record Productivity Driven by Technology & Automation $1.3mm F R O N T O F F I C E P R O D U C T I V I T Y LTM Q3 2026 Increased use of technology and automation expected to continue to drive productivity higher 24 consecutive quarters of productivity growth (LTM) F R O N T O F F I C E H E A D C O U N T A N D P R O D U C T I V I T Y 1. The figures in the above chart include Brokerage Revenues (excluding Insurance) & revenues from Data, Network & Post-Trade. The average revenues for all producers (“productivity”) are approximate & based on relevant revenues divided by average number of producers for the period. 2,148 1,990 2,036 2,121 2,513 2,464 $791 $847 $935 $1,001 $1,148 $1,318 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 Period-end Front Office Headcount LTM Front Office Productivity (in USD 000s)1 7
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B G C G R O U PB G C G R O U P $188mm Record Q3 Pre-Tax Adjusted Earnings1 $166mm Record Q3 Post-Tax Adjusted Earnings1 $0.34 Record Q3 Adjusted EPS1 Adjusted Earnings & EPS Performance C O N S I S T E N T E A R N I N G S G R O W T H PRE - T A X A D J U S T E D E A R N I N G S2 P O S T- T A X A D J U S T E D E A R N I N G S & A D J U S T E D E P S2 $83 $102 $127 $155 $188 Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 Pre-Tax Adjusted Earnings (USD millions) $78 $94 $127 $141 $166$0.16 $0.19 $0.26 $0.29 $0.34 Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 Post-Tax Adjusted Earnings (USD millions) Adjusted EPS 8 1. BGC standalone financial results, excluding Newmark prior to the spin-off in November 2018. 2. For Q3 2026 and Q3 2025, see the “Non-GAAP Definitions and Reconciliation Tables” section in this presentation for reconciliations of Pre-Tax Adjusted Earnings, Post-Tax Adjusted Earnings, and Adjusted EPS to their most comparable GAAP financial measures. For prior periods, which were similarly reconciled using the same methodology, see the Company’s earnings releases for those respective periods, each of which is available on the Company’s Investor Relations website at http://ir.bgcg.com. +21% yr/yr +18% yr/yr +17% yr/yr
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B G C G R O U PB G C G R O U P ECS – Energy, Commodities and Shipping THE WORLD’S LARGEST ECS BROKER $287mm Record Q3 ECS Revenue Q 3 2026 +19% Q 3 2026 $1.1bn Revenue Growth yr/yr E C S R E V E N U E T R E N D 3 Q 2 6 R E V E N U E B Y P R O D U C T $69 $93 $113 $242 $287 Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 (USD millions) 3 Q 2 6 R E V E N U E B Y G E O G R A P H Y Environmental & Energy Transition Shipping & Freight Crude & Refined Commodities, Metals & Other EMEA AMERICAS ASIA PACIFIC 9 LTM Q 3 2026 BGC ECS Revenues
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B G C G R O U P Fenics Overview BGC’S TECHNOLOGY - D R I V E N B U S I N E S S E S $181mm Record Q3 Fenics Revenues Q 3 2026 +13% Q 3 2026 Q 3 2026 Revenue Growth yr/yr F E N I C S R E V E N U E T R E N D F E N I C S R E V E N U E B Y A S S E T C L A S S (USD millions) F E N I C S R E V E N U E B Y B U S I N E S S 10 1. BGC sold kACE in the fourth quarter of 2025 for up to $119mm. 2. Other includes Equities and Other revenues. $106 $125 $142 $160 $181 Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 46% Rates 16% Credit 21% Data, Network & Post-Trade and Other2 17% Foreign Exchange +17% Revenue Growth excl. kACE1 yr/yr $134 $145 $26 $36 $160 $181 Q3 2025 Q3 2026 Fenics Markets Fenics Growth Platforms yr/yr +40% +12% excl. kACE (+8% reported)
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B G C G R O U P $83bn Record Q3 ADV +40% yr/yr $19bn Record Q3 ADV +43% yr/yr 80k Contracts Record ADV +49% q/q $38bn $53bn $59bn $83bn Q3 2023 Q3 2024 Q3 2025 Q3 2026 $7bn $9bn $13bn $19bn Q3 2023 Q3 2024 Q3 2025 Q3 2026 12k 21k 39k 54k 80k Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 FMX – Strength Across Rates, FX, and Futures F M X T E C H N O L O G Y · F A S T , R E L I A B L E , A N D G L O B A L L Y C O N N E C T E D 11 77% 64% 49% 40% % of Time FMX’s SOFR Futures Bid/Offer prices are equal to or better than CME1 1. Share of time FMX’s displayed price is equal to or better than CME’s; best bid/offer spread in ticks; all expiries; all trading hours. Source: Internal estimates and analysis based on publicly available market data. 82%
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B G C G R O U P 1. SOFR Market share calculated relative to CME’s 3-Month SOFR futures volume across the front 8 quarterly contracts; equivalent to FMX’s current product offering. Sources: FMX, CME and internal estimates. FMX Futures Exchange F M X F U T U R E S V O L U M E A N D M A R K E T S H A R E · S O F R A N D U . S . T R E A S U R Y F U T U R E S 12 S O F R F U T U R E S U . S . T R E A S U R Y F U T U R E S 42k 0.4% 0.8% 1.2% 1.6% 2.0% 20k 40k 60k 80k 100k 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 SOFR MARKET SHARE1 SOFR ADV 17k 38k 62k 0.4% 0.8% 1.2% 1.6% 2.0% 20k 40k 60k 80k 100k Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 U.S. TREASURY FUTURES MARKET SHARE U.S. TREASURY FUTURES ADV ADV Market Share Launched 10-Year, Ultra 10-Year, 30-Year & Ultra 30-Year Contracts (8/3/26)
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B G C G R O U P FMX UST B U S I N E S S H I G H L I G H T S · V O L U M E & M A R K E T S H A R E U . S . T R E A S U R Y M A R K E T V O L U M E C H A N G E2 F M X U S T V O L U M E & M A R K E T S H A R E · + 4 6 0 b p s y r / y r $83bn Record Q3 ADV Q3 2026 +40% ADV Growth yr/yr Q3 2026 42% Market Share1 Q3 2026 1. Central limit order book (“CLOB”) market share. Source: Coalition Greenwich. 2. Source: Bloomberg BI – Primary Dealer Trading Volumes in U.S. Government Securities and Company Filings. $30bn $38bn $53bn $59bn $83bn 18% 25% 29% 37% 42% Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 Average Daily Volume (“ADV”) CLOB Market Share1 40% 15% 18% FMX UST CME BrokerTec Primary Dealer Q3 2026 ADV yr/yr change 13
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B G C G R O U P Data, Network & Post - Trade B U S I N E S S H I G H L I G H T S $36mm Total Revenue Q 3 2026 +21% Q 3 2026 +5% Revenue Growth yr/yr Q 3 2026 Revenue Growth excl. kACE1 yr/yr D A T A , N E T W O R K & P O S T- T R A D E R E V E N U E T R E N D ( E X C L . K A C E & C A P I T A L A B ) 2 $19 $22 $26 $30 $36 Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 (USD millions) K E Y B U S I N E S S E S Fenics Market Data Provider and generator of data across global financial and commodity markets, supported by BGC’s deep wholesale liquidity pools Lucera Infrastructure software that connects financial market participants and trading venues, utilizing BGC’s global network Fenics NDF Match Advanced multilateral NDF matching solution, enabling clients to mitigate risk in the global foreign exchange market 14 1. BGC sold kACE in the fourth quarter of 2025 for up to $119mm. 2. BGC sold Capitalab, one of its Post-trade businesses, in the fourth quarter of 2024. Combined revenue for kACE and Capitalab was nil, $4.6mm, $6.2mm, $5.9mm and $5.0mm for Q3 2026, Q3 2025, Q3 2024, Q3 2023 and Q3 2022, respectively. Including kACE and Capitalab, Data, Network & Post-Trade revenue was $36.1mm, $34.3mm, $32.7mm, $27.8mm and $23.8mm for Q3 2026, Q3 2025, Q3 2024, Q3 2023 and Q3 2022, respectively.
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B G C G R O U PB G C G R O U P Outlook F O U R T H Q U A R T E R 2 0 2 6 G U I D A N C E 15 BGC expects to update its quarterly outlook towards the end of December 2026. FY 2026 Outlook Guidance Actual Yr/Yr % Change Metric (USD millions) FY 2026 FY 2025 Low Mid High Revenues $3,439 - $3,499 $2,941.5 17% 18% 19% Pre-Tax Adjusted Earnings $791 - $809 $650.3 22% 23% 24% Q4 2026 Outlook Guidance Actual Yr/Yr % Change Metric (USD millions) Q4 2026 Q4 2025 Low Mid High Revenues $805 - $865 $756.4 6% 10% 14% Pre-Tax Adjusted Earnings $178 - $196 $161.3 10% 16% 21%
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GAAP FINANCIAL RESULTS Q3 2026
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B G C G R O U PB G C G R O U P Balance Sheet 17 B G C G R O U P , I N C . C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F F I N A N C I A L C O N D I T I O N (In thousands, except per share data) (Unaudited) (Under GAAP) September 30, December 31, 2026 2025 Assets Cash and cash equivalents $ 822,058 $ 851,502 Cash segregated under regulatory requirements 22,626 22,171 Financial instruments owned, at fair value 95,288 127,614 Receivables from broker-dealers, clearing organizations, customers and related broker-dealers 1,686,439 468,035 Accrued commissions and other receivables, net 594,419 482,013 Loans, forgivable loans and other receivables from employees and partners, net 505,637 436,082 Fixed assets, net 185,778 182,080 Investments 64,618 37,765 Goodwill 646,713 648,616 Other intangible assets, net 401,008 427,950 Receivables from related parties 2,497 5,006 Other assets 729,312 723,155 Total assets $ 5,756,393 $ 4,411,989 September 30, December 31, 2026 2025 Liabilities and Equity Short-term borrowings from related parties $ — $ 20,000 Accrued compensation 349,431 364,016 Payables to broker-dealers, clearing organizations, customers and related broker-dealers 1,496,689 306,364 Payables to related parties 63,561 28,599 Accounts payable, accrued and other liabilities 815,193 771,963 Notes payable and other borrowings 1,775,223 1,775,705 Total liabilities 4,500,097 3,266,647 Equity Stockholders’ equity: Class A common stock, par value $0.01 per share; 1,500,000,000 shares authorized at both September 30, 2026 and December 31, 2025; 460,429,612 and 444,920,841 shares issued at September 30, 2026 and December 31, 2025, respectively; and 358,335,439 and 363,175,091 shares outstanding at September 30, 2026 and December 31, 2025, respectively 4,605 4,449 Class B common stock, par value $0.01 per share; 300,000,000 shares authorized at both September 30, 2026 and December 31, 2025; 109,452,953 shares issued and outstanding at both September 30, 2026 and December 31, 2025, convertible into Class A common stock 1,095 1,095 Additional paid-in capital 2,684,822 2,532,497 Treasury stock, at cost: 102,094,173 and 81,745,750 shares of Class A common stock at September 30, 2026 and December 31, 2025, respectively (851,867) (614,526) Retained deficit (711,367) (910,391) Accumulated other comprehensive income (loss) (38,850) (40,641) Total stockholders’ equity 1,088,438 972,483 Noncontrolling interest in subsidiaries 167,858 172,859 Total equity 1,256,296 1,145,342 Total liabilities and equity $ 5,756,393 $ 4,411,989
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B G C G R O U PB G C G R O U P Income Statement 18 B G C G R O U P , I N C . C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T S O F O P E R A T I O N S (In thousands, except per share data) (Unaudited) (Under GAAP) Revenues: 2026 2025 2026 2025 Commissions $ 660,634 $ 573,159 $ 2,062,740 $ 1,667,366 Principal transactions 112,210 99,951 377,359 336,432 Total brokerage revenues 772,844 673,110 2,440,099 2,003,798 Fees from related parties 5,193 4,453 14,982 14,116 Data, network and post-trade 36,108 34,349 107,253 102,311 Interest and dividend income 11,819 14,039 49,111 40,936 Other revenues 6,595 10,898 22,140 23,932 Total revenues 832,559 736,849 2,633,585 2,185,093 Expenses: Compensation and employee benefits 455,997 400,262 1,443,282 1,158,373 Equity-based compensation and allocations of net income to limited partnership units 73,182 74,447 232,180 233,696 Total compensation and employee benefits 529,179 474,709 1,675,462 1,392,069 Occupancy and equipment 70,749 47,614 165,752 136,661 Fees to related parties 9,783 9,346 27,577 28,105 Professional and consulting fees 17,748 18,303 51,934 49,768 Communications 35,837 35,628 112,738 100,916 Selling and promotion 33,827 26,461 100,406 74,712 Commissions and floor brokerage 20,311 17,340 62,401 51,522 Interest expense 32,482 33,823 97,733 92,278 Other expenses 33,591 42,384 110,129 77,785 Total non-compensation expenses 254,328 230,899 728,670 611,747 Total expenses 783,507 705,608 2,404,132 2,003,816 Nine Months Ended September 30,Three Months Ended September 30, 2026 2025 2026 2025 Other income (losses), net: Gain on divestiture and sale of investments 34,964 — 54,964 — Gains (losses) on equity method investments 2,457 2,290 12,769 7,027 Other income (loss) 11,578 (35) 15,255 448 Total other income (losses), net 48,999 2,255 82,988 7,475 Income (loss) from operations before income taxes 98,051 33,496 312,441 188,752 Provision (benefit) for income taxes 28,041 7,434 90,130 53,046 Consolidated net income (loss) $ 70,010 $ 26,062 $ 222,311 $ 135,706 Less: Net income (loss) attributable to noncontrolling interest in subsidiaries (1,281) (1,820) (5,615) (4,885) Net income (loss) available to common stockholders $ 71,291 $ 27,882 $ 227,926 $ 140,591 Per share data: Basic earnings (loss) per share Net income (loss) attributable to common stockholders $ 68,711 $ 26,768 $ 218,949 $ 134,699 Basic earnings (loss) per share $ 0.15 $ 0.06 $ 0.46 $ 0.28 Basic weighted-average shares of common stock outstanding 472,709 474,642 474,152 477,965 Fully diluted earnings (loss) per share Net income (loss) for fully diluted shares $ 68,729 $ 26,774 $ 219,016 $ 134,747 Fully diluted earnings (loss) per share $ 0.14 $ 0.06 $ 0.46 $ 0.28 Fully diluted weighted-average shares of common stock outstanding 476,334 478,480 478,162 482,862 Three Months Ended September 30, Nine Months Ended September 30,
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APPENDIX Q3 2026
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B G C G R O U PB G C G R O U P 15% $121mm Products 7% $60mm Products Revenue Q3 2026 Revenue Q3 2026 ▪ Spot FX ▪ FX Forwards ▪ FX NDFs ▪ FX Options ▪ Precious Metals ▪ Market Data & Analytics Products ▪ Network & Connectivity Solutions ▪ FX Risk Mitigation Platform 26% Revenue Q3 2026 $220mm Products ▪ Government Bonds ▪ OTC & Listed Interest Rate Derivatives ▪ Inflation Products ▪ Money Market & Repurchase Agreements Rates 34% $287mm Products Revenue Q3 2026 ▪ Environmental & Energy Transition Products ▪ Crude & Refined Products ▪ Shipping & Freight ▪ Commodities and Metals Foreign Exchange 8% $67mm Products Revenue Q3 2026 ▪ Corporate Bonds ▪ Emerging Market Credit ▪ Credit Default Swaps ▪ Exotic Credit Derivatives & Structured Products Credit 9% $77mm Products Revenue Q3 2026 ▪ OTC & Listed Equity Derivatives ▪ Cash Equities ▪ Delta One Products Equities Data, Network & Post-Trade1 1. Includes interest and dividend income, fees from related parties, and other revenues. ECS BGC Product Offering 20
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B G C G R O U PB G C G R O U P BGC’s Diverse & Global Platform 26% Rates 34% ECS 9% Equities 8% Credit 7% Data, Network & Post-Trade and Other2 15% Foreign Exchange 68% 38% BGC Peer Average International Revenues as a % of Total Revenues BGC is significantly more global than its exchange / trading platform peers1 1. BGC LTM Q3 2026 figures against Exchange / Trading Platform Peers including Tradeweb, MarketAxess and ICE, using most recently available data. 2. Other includes interest and dividend income, fees from related parties, and other revenues. 3. Brokerage and Data, Network & Post-trade revenues by client. BGC provides brokerage execution across all major Financial and ECS products BGC’s client base has become increasingly more diverse Q3 2020 Q3 2026 ~35% ~50% % Non-Bank Clients3 By growing the ECS business, BGC’s revenue drivers have become more diverse B U I L T T O P E R F O R M I N A L L M A R K E T C O N D I T I O N S G E O G R A P H I C A L D I V E R S I F I C A T I O N C L I E N T D I V E R S I F I C A T I O N A S S E T C L A S S D I V E R S I F I C A T I O N B U S I N E S S D R I V E R D I V E R S I F I C A T I O N Q3 2026 21 Financial Product Revenue Drivers Issuance Electronification Energy Demand Government Policy Market Volatility Secondary Market Trading Activity Geopolitical Uncertainty GDP Growth ECS Revenue Drivers
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B G C G R O U PB G C G R O U P 0 100 200 300 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 0 100 200 300 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 R A T E S1 E C S ( E X C L . O T C )1 D R I V I N G A M E A N I N G F U L S H A R E O F B L O C K A N D C R O S S T R A D E V O L U M E O N M A J O R E X C H A N G E S BGC – The World’s Largest Listed Products Broker BGC Listed Rates Revenue CME Interest Rate Futures & Options ADV Eurex Interest Rate Futures & Options ADV ICE Interest Rate Futures & Options ADV Correlation Matrix Exchange Interest Rate Futures & Options ADV CME Eurex ICE BGC Listed Rates Revenue 0.86 0.89 0.95 BGC Rates Revenue 0.82 0.92 0.94 Correlation Matrix Exchange ECS Futures & Options ADV CME ICE BGC (excl. OTC) Listed ECS Revenue 0.95 0.96 BGC (excl. OTC) ECS Revenue 0.94 0.92 221. Values calculated on a trailing 3 months basis and indexed to 100 as of December 2022. BGC (excl. OTC) Listed ECS Revenue CME ECS Futures & Options ADV ICE ECS Futures & Options ADV Sep-26 Sep-26
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B G C G R O U P RATES CREDIT FOREIGN EXCHANGE DATA, NETWORK & POST-TRADE MARKETS LTM Q3 2026 Revenue: $611mm (+14% yr/yr) KEY PRODUCTS: • Interest Rate Derivatives • EGBs • Gilts • Inflation Products • EM Government Bonds KEY PRODUCTS: • Investment Grade Bonds (IG) • High Yield Bonds (HY) • Sovereign Credit • Financial Credit • Emerging Market Credit • Index & Single Name CDS KEY PRODUCTS: • FX Spot • FX Options • Asian / LatAm NDFs • FX Forwards FENICS PLATFORMS: • Fenics MIDFX • Fenics Direct FENICS MARKET DATA (Fenics Markets associated Market Data) Fenics NDF Match GROWTH PLATFORMS LTM Q3 2026 Revenue: $127mm (+24% yr/yr) FMX UST PRODUCTS: • U.S. Government Securities • U.S. Repos FMX FUTURES PRODUCTS: • SOFR Futures • U.S. Treasury Futures PORTFOLIO MATCH PRODUCTS: • U.S. Credit (IG & HY) • European Credit (IG & HY) • Emerging Market Credit FMX FX PRODUCTS: • FX Spot • Asian NDFs FENICS MARKET DATA (Fenics Growth Platforms associated Market Data) LUCERA PROTOCOLS • CLOB • Matching • (continuous & session-based) • Streaming • Volume Clearing • CLOB • Matching • (continuous & session-based) • Volume Clearing • CLOB • Matching • (continuous & session-based) • Streaming • RFQ Fenics Ecosystem 23 F E N I C S R E V E N U E : $ 7 3 8 M M ( L T M Q 3 2 0 2 6 ) · + 1 6 % Y R / Y R
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B G C G R O U P Asset Class: Foreign Exchange Products: Spot FX and NDFs ❑ FX Electronic Communication Network (“ECN”) that provides deep, configurable liquidity pools to institutional FX traders Asset Class: Rates Products: U.S. Government Securities (Benchmarks, T-Bills & Off-the-runs) ❑ Electronic U.S. Treasuries trading platform , offering trading across multiple protocols and the tightest tick sizes in the market Asset Class: Rates Products: U.S. Interest Rate Futures (SOFR & U.S. Treasury) ❑ Regulated Futures exchange, offering trading in the largest futures market in the world with clearing provided by LCH Asset Class: Data, Network & Post-Trade – Market Data Distributor of market data across global financial and commodity markets, supported by BGC’s deep wholesale liquidity pools Asset Class: Data, Network & Post-Trade – Network Infrastructure software for financial market participants that connects and aggregates information across trading venues, utilizing BGC’s global network Asset Class: Data, Network & Post-Trade – Post-trade Advanced multilateral NDF matching solution, enabling clients to mitigate risk in the global foreign exchange market Asset Class: Foreign Exchange Fenics MIDFX Products: Spot FX and NDFs ❑ Wholesale FX trading platform that enables dealers to hedge FX risk in a market-neutral environment Asset Class: Foreign Exchange Products: FX Options ❑ Electronic Request-For-Quote (“RFQ”) trading platform, providing prices from leading liquidity providers to institutional clients Asset Class: Rates, Foreign Exchange, and Credit Integrated Electronic Business ❑ BGC businesses that provide electronic protocols and are heavily supported by Fenics technology. Asset Class: Credit Products: U.S. and European Corporate Bonds ❑ Session-based Credit trading platform, enabling dealers to manage inventory, balance sheet & the exhaust from portfolio trades 24 Fenics Platforms F E N I C S T R A D I N G P L A T F O R M S D A T A , N E T W O R K & P O S T- T R A D E
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B G C G R O U PB G C G R O U P Q3 2026 Fully Diluted Weighted-Average Share Count For Adjusted Earnings Summary1 Fully Diluted Weighted-Average Shares (millions) Ownership (%) PUBLIC 358.5 73% Class A owned by Public 358.4 73% Class B owned by Public2 0.1 NMF EMPLOYEES 28.4 6% Class A owned by executives, board members and employees3 4.9 1% Class B owned by executives, board members and employees 4.1 1% RSUs & RSAs owned by employees, executives and directors4 15.8 3% Other owned by employees5 3.6 1% CANTOR 105.3 21% Class B owned by Cantor 105.3 21% TOTAL 492.2 100% 1. Fully Diluted Weighted-Average Share Count For Adjusted Earnings is a non-GAAP financial measure. See the “Non-GAAP Definitions and Reconciliation Tables” section in this presentation for reconciliations to its most comparable GAAP financial measure. 2. Class B owned by Public represents Class B shares owned by a Lutnick family member. 3. Class A shares owned by board members or executives and restricted shares owned by other employees of BGC and Newmark. Any Class A share owned by an employee without restriction is included in the “Class A owned by Public”. 4. Calculated using Treasury Stock Method. 5. Other owned by employees primarily represents contingent shares. Fully Diluted Weighted - Average Share Count Summary 25
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B G C G R O U PB G C G R O U P ▪ Investment Grade Credit Rated: • Fitch: BBB- (Outlook: Stable) • S&P: BBB- (Outlook: Stable) • Kroll Bond Rating Agency (KBRA): BBB+ (Outlook: Stable) • Japan Credit Rating Agency (JCRA): A- (Outlook: Stable) ▪ On July 3, 2026, JCRA upgraded BGC from BBB+ to A- ▪ On July 24, 2026, KBRA upgraded BGC from BBB to BBB+ ▪ Strong balance sheet and liquidity provide financial flexibility to manage the business to maintain its Investment Grade rating Strongly Capitalized & Investment Grade Credit Profile 26 I N V E S T M E N T G R A D E R A T I N G B A L A N C E S H E E T S T R E N G T H ▪ Liquidity of $917mm as of September 30, 2026 BGC Group, Inc. (in $’000s) As of 9/30/2026 Cash and cash equivalents $822,058 Financial instruments owned, at fair value 95,288 Total Liquidity $917,346 Unsecured senior revolving credit agreement $234,785 BGC Group, Inc. 8.000% Senior Notes due May 25, 2028 345,963 BGC Partners, Inc. 8.000% Senior Notes due May 25, 2028 2,265 BGC Group, Inc. 6.600% Senior Notes due June 10, 2029 497,299 BGC Group, Inc. 6.150% Senior Notes due April 2, 2030 694,911 Total Notes Payable, Other and Short-Term Borrowings $1,775,223 Net Notes Payable, Other and Short-Term Borrowings (after adjusting for Total Liquidity) $857,877 Total Equity $1,256,296 Credit Ratios (Adjusted EBITDA, Interest Expense and Ratios as of LTM Q3 2026) Adjusted EBITDA1 $922,004 Interest Expense 130,773 Leverage Ratio: Total Notes Payable, Other and Short-Term Borrowings / Adjusted EBITDA 1.9x Net Leverage Ratio: Net Notes Payable, Other and Short-Term Borrowings (after adjusting for Total Liquidity) / Adjusted EBITDA 0.9x Interest Coverage Ratio: Adjusted EBITDA / Interest Expense 7.1x Total Notes Payable, Other and Short-Term Borrowings / Total Equity 1.4x Net Notes Payable, Other and Short-Term Borrowings (after adjusting for Total Liquidity) / Total Equity 0.7x 1. Adjusted EBITDA is a summation of the last 4 quarters. For Q3 2026, see the “Non-GAAP Definitions and Reconciliation Tables” section in this presentation for the reconciliation of Adjusted EBITDA to its most comparable GAAP financial measures. For prior periods, which were similarly reconciled using the same methodology, see the Company’s earnings releases for those respective periods, each of which is available on the Company’s Investor Relations website at http://ir.bgcg.com.
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B G C G R O U PB G C G R O U P Brokerage revenues are driven by secondary market trading volumes in the markets in which BGC transacts Historically, industry volumes have been seasonally strongest in the first half of the year and slower in the second half BGC’s revenues, which are driven by secondary market trading volumes, tend to have low correlation in the short/medium term with global bank and broker-dealer sales & trading revenues, which are driven by bid-ask spreads, mark-to-market movements, and industry volumes in the primary & secondary markets 1. Correlations are calculated using quarterly values for BGC asset class revenues and the relevant industry metrics starting Q1 2020. Asset Class Revenue to Industry Volume Correlation Correlation1 Q3 2026 vs Q3 2025 Industry Metric Volume Change BGC Revenue Change ECS ICE Energy & Commodities Futures & Options (Total) 0.86 +16% +19% EEX Global Power Spot & Derivatives (Total) 0.84 +24% RATES Primary Dealer U.S. Government Securities (ADV) 0.96 +18% +12% ICE Interest Rate Futures & Options (Total) 0.96 +49% FX LSEG FX (Total) 0.93 +11% +14% SEF FX Options – Clarus (Total) 0.92 (7)% CREDIT Primary Dealer U.S. Investment Grade & High Yield Corporate Securities (ADV) 0.56 +23% (2)% EQUITIES SIFMA U.S. Cash Equities (Total) 0.65 (4)% +28% BGC Revenue Correlation & Industry Volumes 27 BGC’S ASSET CLASS REVENUES ARE GENERALLY CORRELATED TO RELEVANT INDUSTRY SECONDARY MARKET TRADING V O L U M E S
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B G C G R O U PB G C G R O U P 2017 – Acquired Besso, entering the insurance brokerage business 1. Included $750 million of cash consideration plus an expected earnout of up to $484 million of Nasdaq common stock as of July 1, 2013. For additional information, see press release titled “BGC Announces Close of Sale of its Platform for the Fully Electronic Trading of Benchmark, on-the-Run U.S. Treasuries to NASDAQ OMX” dated July 1, 2013, and the related filing on Form 8-K filed on the same day. 2. See press release “BGC and GFI Complete Sale of Trayport to Intercontinental Exchange” dated December 11, 2015, and the related filing on Form 8-K filed on December 14, 2015, for further information. 3. Value represents total return to BGC stockholders, including dividends, and assumes investors held Newmark’s share since 2018 spin-off until 6/30/2020. Newmark’s share price as of 6/30/2020 was $12.01 and 131,886,409 shares of Newmark Class A common stock and 21,285,537 shares of Newmark Class B common stock were distributed to BGC’s stockholders in the Spin-Off. For further information on the Spin-Off, see section titled “Spin-Off of Newmark” under Note 1—"Organization and Basis of Presentation” in BGC’s 2019 Annual Report on Form 10-K as filed with the Securities and Exchange Commission. 4. BGC received approximately $535 million in gross proceeds, subject to limited post-closing adjustments; for additional information, please see press release titled “BGC Completes Sale of Insurance Brokerage Business to The Ardonagh Group" dated November 1, 2021. 5. For additional information, please see press release titled “BGC Partners Completes Corporate Conversion to Full C-Corporation, Name Change to BGC Group, Inc., and Ticker Symbol Change to “BGC”” dated July 3, 2023. 2018 – Successfully completed tax-free spin-off of Newmark (Nasdaq: NMRK), delivering over $1.9bn3 of value to BGC stockholders 2021 – Sold Insurance Brokerage business to The Ardonagh Group for $535mm in gross proceeds4 2024 – Investment in FMX from 10 global investment banks and market making firms at a post-money equity valuation of $667mm 2024 – Launched FMX Futures Exchange 1999 2026 2011 – Acquired Newmark Knight Frank, entering commercial real estate business 2013 – Sold eSpeed to Nasdaq for $1.2bn1, equivalent to the entire market cap of BGCP 2015/2016 – Acquired GFI 1999 – eSpeed, leading electronic UST platform, IPOs 2004 – Cantor forms BGC Partners, separating its brokerage business from its sales & trading business 2008 – BGC Partners merges with eSpeed to form BGC Partners, Inc. (Nasdaq: BGCP) 2015 – Completed sale of Trayport to ICE for $650mm 2 2023 – Completed conversion to Full C- Corporation5 2025 – Completed OTC Acquisition becoming the world’s largest ECS broker Shareholder Value Creation 28 B G C H A S A S T R O N G H I S T O R Y O F C R E A T I N G V A L U E F O R S H A R E H O L D E R S T H R O U G H O R G A N I C G R O W T H , A C Q U I S I T I O N S & I N V E S T M E N T S I N T E C H N O L O G Y
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NON - GAAP DEFINITIONS AND RECONCILIATION TABLES Q3 2026
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B G C G R O U PB G C G R O U P Reconciliation of GAAP to Adjusted Earnings 30 R E C O N C I L I A T I O N O F G A A P I N C O M E ( L O S S ) F R O M O P E R A T I O N S B E F O R E I N C O M E T A X E S T O A D J U S T E D E A R N I N G S & G A A P F U L L Y D I L U T E D E P S T O P O S T- T A X A D J U S T E D E P S (In thousands, except per share data) (Unaudited) FOOTNOTES (1) The components of equity-based compensation and allocations of net income to limited partnership units are as follows (in thousands): (2) GAAP expenses in the third quarter of 2026 included certain other compensation-related adjustments, including charges incurred as part of the cost reduction program of $9.9 million, as well as certain acquisition-related expenses. (3) Primarily included non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions. (4) The third quarter of 2026 included a non-cash impairment charge of $22.6 million related to certain long-lived assets. (5) GAAP expenses in the third quarter of 2026 and 2025 included September 11th Charity Day contributions of $14.5 million and $11.6 million, respectively, and resolutions of litigation and other matters, including their related professional fees, as well as certain other professional fees, of $2.5 million and $11.8 million, respectively. GAAP expenses in the third quarter of 2025 also included $0.6 million of non-cash charges incurred by the Company for exiting leases. The above-referenced items are consistent with BGC’s normal practice of excluding certain GAAP gains and charges from Adjusted Earnings that management believes do not best reflect the ordinary results of the Company, including with respect to certain non-recurring or unusual gains or losses, as well as resolutions of litigation. (6) The third quarter of 2026 included a gain of $35.0 million associated with the sale of Water Street Labs, LLC and CX Clearinghouse L.P. to Fanatics. (7) The third quarter of 2026 and 2025 included a non-cash gain of $10.1 million and a non-cash loss of $0.1 million, respectively, related to fair value adjustments of investments held by BGC. (8) The third quarter of 2026 and 2025 included non-cash gains of $2.5 million and $2.3 million, respectively, related to BGC’s investments accounted for under the equity method. The third quarter of 2026 and 2025 also included net losses of $0.7 million and $0.4 million, respectively, related to other recoveries and various other GAAP items. (9) BGC’s GAAP provision (benefit) for income taxes is calculated based on an annualized methodology. The Company’s GAAP provision (benefit) for income taxes was $28.0 million and $7.4 million for the third quarter of 2026 and 2025, respectively. The Company includes additional tax-deductible items when calculating the provision for taxes with respect to Adjusted Earnings using an annualized methodology. These include tax-deductions related to equity-based compensation, employee loan amortization, and certain net-operating loss carryforwards. The non-GAAP provision for income taxes was adjusted by $5.1 million and ($8.4) million for the third quarter of 2026 and 2025, respectively. As a result, the provision (benefit) for income taxes with respect to Adjusted Earnings was $22.9 million and $15.8 million for the third quarter of 2026 and 2025, respectively. Note: Certain numbers may not add due to rounding. Q3 2026 Q3 2025 GAAP income (loss) from operations before income taxes $ 98,051 $ 33,496 Pre-tax adjustments: Compensation adjustments: Equity-based compensation and allocations of net income to limited partnership units (1) 73,182 74,447 Other Compensation charges (2) 13,836 14,694 Total Compensation adjustments 87,018 89,141 Non-Compensation adjustments: Amortization of intangibles (3) 9,884 10,349 Impairment charges (4) 22,552 65 Other (5) 16,857 23,968 Total Non-Compensation adjustments 49,293 34,382 Other income (losses), net adjustments: Losses (gains) on divestitures (6) (34,964) — Fair value adjustment of investments (7) (10,137) 110 Other net (gains) losses (8) (1,759) (2,027) Total other income (losses), net adjustments (46,860) (1,917) Total pre-tax adjustments 89,451 121,606 Adjusted Earnings before noncontrolling interest in subsidiaries and taxes $ 187,502 $ 155,102 GAAP net income (loss) available to common stockholders $ 71,291 $ 27,882 Total pre-tax adjustments (from above) 89,451 121,606 Income tax adjustment to reflect adjusted earnings taxes (9) 5,130 (8,358) Post-tax adjusted earnings $ 165,872 $ 141,130 Per Share Data GAAP fully diluted earnings (loss) per share $ 0.14 $ 0.06 Total pre-tax adjustments (from above) 0.18 0.25 Income tax adjustment to reflect adjusted earnings taxes 0.02 (0.02) Post-tax adjusted earnings per share $ 0.34 $ 0.29 Fully diluted weighted-average shares of common stock outstanding 492,213 494,248 Dividends declared per share of common stock $ 0.02 $ 0.02 Dividends declared and paid per share of common stock $ 0.02 $ 0.02 Q3 2026 Q3 2025 Issuance of common stock and grants of exchangeability $ 29,139 $ 37,239 Allocations of net income and dividend equivalents 229 588 RSU, RSU Tax Account, and restricted stock amortization 43,814 36,620 Equity-based compensation and allocations of net income to limited partnership units $ 73,182 $ 74,447
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B G C G R O U PB G C G R O U P Other Select Financial Data (1) Primarily consists of contracts to issue shares of BGC common stock. Note: BGC’s fully diluted weighted-average share count under GAAP may differ from the fully diluted weighted-average share count for Adjusted Earnings in order to avoid anti-dilution in certain periods. 31 (1) The third quarter of 2026 included a non-cash impairment charge of $22.6 million related to certain long-lived assets. (2) Represents BGC employees’ pro-rata portion of net income and non-cash and non-dilutive charges relating to equity-based compensation. See Footnote 1 to the table titled “Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted Earnings and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS” for more information. (3) The third quarter of 2026 and 2025 included non-cash gains of $2.5 million and $2.3 million, respectively, related to BGC’s investments accounted for under the equity method. (4) The third quarter of 2025 included $0.6 million of non-cash charges incurred by the Company for exiting leases. R E C O N C I L I A T I O N O F G A A P N E T I N C O M E ( L O S S ) A V A I L A B L E T O C O M M O N S T O C K H O L D E R S T O A D J U S T E D E B I T D A (In thousands) (Unaudited) F U L L Y D I L U T E D W E I G H T E D- A V E R A G E S H A R E C O U N T (In thousands) (Unaudited) L I Q U I D I T Y A N A L Y S I S (In thousands) (Unaudited) Q3 2026 Q3 2025 Common stock outstanding 472,709 474,642 Other (1) 3,625 3,838 Fully diluted weighted-average share count under GAAP 476,334 478,480 Non-GAAP Adjustments: RSUs 15,733 15,630 Restricted Stock 146 138 Fully diluted weighted-average share count for Adjusted Earnings 492,213 494,248 September 30, 2026 December 31, 2025 Cash and cash equivalents $ 822,058 $ 851,502 Financial instruments owned, at fair value 95,288 127,614 Total Liquidity $ 917,346 $ 979,116 Q3 2026 Q3 2025 GAAP net income (loss) available to common stockholders $ 71,291 $ 27,882 Add back: Provision (benefit) for income taxes 28,041 7,434 Net income (loss) attributable to noncontrolling interest in subsidiaries (1,281) (1,820) Interest expense 32,482 33,823 Fixed asset depreciation and intangible asset amortization 25,719 27,441 Impairment of long-lived assets (1) 22,552 65 Equity-based compensation and allocations of net income to limited partnership units (2) 73,182 74,447 (Gains) losses on equity method investments (3) (2,457) (2,290) Other non-cash GAAP expenses (4) — 612 Adjusted EBITDA $ 249,529 $ 167,594
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B G C G R O U PB G C G R O U P Differences between Non - GAAP and GAAP Consolidated Results 32 NON-GAAP FINANCIAL MEASURES This document contains non-GAAP financial measures that differ from the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles in the United States(“GAAP”). Non-GAAP financial measures used by the Company include “Adjusted Earnings before noncontrolling interest in subsidiaries and taxes”, which is used interchangeably with “pre-tax Adjusted Earnings”; “Post-tax Adjusted Earnings to fully diluted shareholders”, which is used interchangeably with “post-tax Adjusted Earnings”; “Adjusted EBITDA”; “Liquidity”; and “Constant Currency”. The definitions of these terms are below. In the first quarter of 2026, the Company clarified certain language in the definitions of certain non-GAAP financial measures that related to equity-based compensation and were administrative in nature. These updates did not impact calculation or comparability. ADJUSTED EARNINGS DEFINED BGC uses non-GAAP financial measures, including “Adjusted Earnings before noncontrolling interest in subsidiaries and taxes” and “Post-tax Adjusted Earnings to fully diluted shareholders”, which are supplemental measures of operating results used by management to evaluate the financial performance of the Company and its consolidated subsidiaries. BGC believes that Adjusted Earnings best reflects the operating earnings generated by the Company on a consolidated basis and is one of the financial metrics that management considers when managing its business. As compared with “Income (loss) from operations before income taxes” and “Net income (loss) for fully diluted shares”, both prepared in accordance with GAAP, Adjusted Earnings calculations primarily exclude certain non-cash items and other expenses that generally do not involve the receipt or outlay of cash by the Company and/or which do not dilute existing stockholders. In addition, Adjusted Earnings calculations exclude certain gains and charges that management believes do not best reflect the underlying operating performance of BGC. Adjusted Earnings is calculated by taking the most comparable GAAP measures and adjusting for certain items with respect to compensation expenses, non-compensation expenses, and other income, as discussed below. CALCULATIONS OF COMPENSATION ADJUSTMENTS FOR ADJUSTED EARNINGS AND ADJUSTED EBITDA Treatment of Equity-Based Compensation Line Item for Adjusted Earnings and Adjusted EBITDA The Company’s Adjusted Earnings and Adjusted EBITDA measures exclude all GAAP charges included in the line item “Equity-based compensation and allocations of net income to limited partnership units” (or “equity-based compensation” for purposes of defining the Company’s non-GAAP results) as recorded on the Company’s GAAP Consolidated Statements of Operations and GAAP Consolidated Statements of Cash Flows. These GAAP equity-based compensation charges reflect the following items: • Charges related to amortization of restricted stock units (“RSUs”) and restricted stock awards; • Charges related to issuance of shares of BGC’s Class A common stock; • Charges with respect to BGC RSU tax accounts and any remaining Newmark Holdings, L.P. (“Newmark Holdings”) preferred units held by BGC employees. RSU tax accounts were granted in connection with the grant of RSUs. Preferred units were granted in connection with the grant of certain limited partnership units that may be granted exchangeability for or redeemed in connection with the grant of shares of Newmark Group, Inc. (“Newmark Group”) Class A common stock. The RSU tax accounts and preferred units were granted at ratios designed to cover any withholding taxes expected to be paid. This is an alternative to the common practice among public companies of issuing the gross amount of shares to employees, subject to cashless withholding of shares, to pay applicable withholding taxes; • Charges related to Newmark Holdings limited partnership interests held by BGC employees that are granted exchangeability into shares of Newmark Group Class A common stock or redeemed in connection with the grant of Newmark Group Class A common stock; • Charges related to any other equity-based awards; • Allocations of the net income of Newmark Holdings to Newmark Holdings limited partnership units held by BGC employees. Such allocations represent the pro-rata portion of Newmark Holdings’ post-tax GAAP earnings available to such unit holders; and • Charges related to dividend equivalents earned on RSUs and any preferred returns on RSU tax accounts. 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 Earnings Taxes.” Virtually all of BGC’s key executives and producers have equity stakes in the Company and its subsidiaries and generally receive deferred equity as part of their compensation. A significant percentage of BGC’s fully diluted shares are owned by its executives, partners and employees. The Company issues RSUs, restricted stock and Class A common stock, to provide liquidity to its employees, to align the interests of its employees and management with those of common stockholders, to help motivate and retain key employees, and to encourage a collaborative culture that drives cross-selling and revenue growth. Compensation charges are also adjusted for certain other cash and non-cash items. Certain Other Compensation-Related Adjustments for Adjusted Earnings BGC also excludes various other GAAP items that management views as not reflective of the Company’s underlying performance in a given period from its calculation of Adjusted Earnings. These may include compensation-related items with respect to cost-saving initiatives, such as severance charges incurred in connection with headcount reductions as part of broad restructuring and/or cost savings plans, and certain loan forgiveness as a result of broad-based alterations to the Company’s employee loan arrangements.
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B G C G R O U PB G C G R O U P Differences between Non - GAAP and GAAP Consolidated Results (continued) 33 CALCULATION OF NON-COMPENSATION ADJUSTMENTS FOR ADJUSTED EARNINGS Adjusted Earnings calculations may also exclude items such as: • Non-cash GAAP charges related to the amortization of intangibles with respect to acquisitions; • Acquisition related costs; • Non-cash GAAP asset impairment charges; • Resolutions of litigation, disputes, investigations, or enforcement matters that are generally non-recurring, exceptional, or unusual, or similar items that management believes do not best reflect BGC’s underlying operating performance, including related unaffiliated third-party professional fees and expenses; and • Various other GAAP items that management views as not reflective of the Company’s underlying performance in a given period, including non-compensation-related charges incurred as part of broad restructuring and/or cost savings plans. Such GAAP items may include charges for professional fees and expenses, exiting leases and/or other long-term contracts as part of cost-saving initiatives, as well as non-cash impairment charges related to assets, goodwill and/or intangible assets created from acquisitions. CALCULATION OF ADJUSTMENTS FOR OTHER (INCOME) LOSSES FOR ADJUSTED EARNINGS Adjusted Earnings calculations also exclude gains from litigation resolution and certain other non-cash, non-dilutive, and/or non-economic items, which may, in some periods, include: • Gains or losses on divestitures; • Fair value adjustment of investments; • Certain other GAAP items, including gains or losses related to BGC's investments accounted for under the equity method; and • Any unusual, non-ordinary, or non-recurring gains or losses. 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 Earnings to fully diluted shareholders as pre-tax Adjusted Earnings reduced by the non-GAAP tax provision described below and net income (loss) attributable to noncontrolling interest for Adjusted Earnings. The Company calculates its tax provision for post-tax Adjusted Earnings using an annual estimate similar to how it accounts for its income tax provision under GAAP. To calculate the quarterly tax provision under GAAP, BGC estimates its full fiscal year GAAP income (loss) from operations before income taxes and noncontrolling interest in subsidiaries and the expected inclusions and deductions for income tax purposes, including expected equity-based compensation during the annual period. The resulting annualized tax rate is applied to BGC’s quarterly GAAP income (loss) from operations before income taxes and noncontrolling interest in subsidiaries. At the end of the annual period, the Company updates its estimate to reflect the actual tax amounts owed for the period. To determine the non-GAAP tax provision, BGC first adjusts pre-tax Adjusted Earnings by recognizing any, and only, amounts for which a tax deduction applies under applicable law. The amounts include charges with respect to equity-based compensation; certain charges related to employee loan forgiveness; certain net operating loss carryforwards when taken for statutory purposes; and certain charges related to tax goodwill amortization. These adjustments may also reflect timing and measurement differences, including treatment of employee loans; changes in the value of Newmark Holdings units held by BGC employees between the dates of grants of exchangeability by Newmark Group and the date of actual unit exchange; changes in the value of RSUs and/or restricted stock awards between the date of grant and the date the award vests; variations in the value of certain deferred tax assets; and liabilities and the different timing of permitted deductions for tax under GAAP and statutory tax requirements. After application of these adjustments, the result is the Company’s taxable income for its pre-tax Adjusted Earnings, to which BGC then applies the statutory tax rates to determine its non-GAAP tax provision. BGC views the effective tax rate on pre-tax Adjusted Earnings as equal to the amount of its non-GAAP tax provision divided by the amount of pre-tax Adjusted Earnings. Generally, the most significant factor affecting this non-GAAP tax provision is the amount of charges relating to equity-based compensation. Because the charges relating to equity-based compensation are deductible in accordance with applicable tax laws, increases in such charges have the effect of lowering the Company’s non-GAAP effective tax rate and thereby increasing its post-tax Adjusted Earnings. BGC incurs income tax expenses based on the location, legal structure and jurisdictional taxing authorities of each of its subsidiaries. Certain of the Company’s entities are taxed as U.S. partnerships and are subject to the Unincorporated Business Tax (“UBT”) in New York City. Any U.S. federal and state income tax liability or benefit related to the partnership income or loss, with the exception of UBT, rests with the unit holders rather than with the partnership entity. The Company’s consolidated financial statements include U.S. federal, state, and local income taxes on the Company’s allocable share of the U.S. results of operations. Outside of the U.S., BGC operates principally through subsidiary corporations subject to local income taxes. For these reasons, taxes for Adjusted Earnings are expected to be presented to show the tax provision the consolidated Company would expect to pay if 100% of earnings were taxed at global corporate rates.
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B G C G R O U PB G C G R O U P 34 Differences between Non - GAAP and GAAP Consolidated Results (continued) CALCULATIONS OF PRE- AND POST-TAX ADJUSTED EARNINGS PER SHARE BGC’s pre- and post-tax Adjusted Earnings per share is calculated as pre- and post-tax Adjusted Earnings divided by the fully diluted weighted-average number of shares outstanding of BGC Class A common stock and BGC Class B common stock for the applicable period. The fully diluted weighted- average share count includes the effect of potentially dilutive securities determined using the treasury stock method, as well as the weighted-average number of contingent shares. BGC’s pre- and post-tax Adjusted Earnings per share calculations assume that: • The fully diluted share count includes the shares related to any dilutive instruments, but excludes the associated expense, net of tax, when the impact would be dilutive; • The fully diluted share count excludes the shares related to these instruments, but includes the associated expense, net of tax, when the impact would be anti-dilutive; • Any RSU tax accounts and preferred units are not included in the Company’s fully diluted share count because they are not convertible into shares of the Company’s common stock; and • Certain shares and share equivalents expected to be issued in future periods but not yet eligible to receive dividends are excluded from the fully diluted share count. Each quarter, the dividend payable to BGC’s stockholders, if any, is expected to be determined by the Company’s Board of Directors with reference to a number of factors. The declaration, payment, timing, and amount of any future dividends payable by the Company will be at the discretion of its Board of Directors. For more information on any share count adjustments, see the table titled “Fully Diluted Weighted-Average Share Count under GAAP and for Adjusted Earnings” in the Company’s most recent financial results press release. 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 not expected to be fully realized until future periods, or because the Company views results excluding these items as a better reflection of the underlying performance of BGC’s ongoing operations. Management uses Adjusted Earnings and other financial metrics in part to help it evaluate, among other things, the overall performance of the Company’s business and to make decisions with respect to the Company’s operations. The term “Adjusted Earnings” should not be considered in isolation or as an alternative to GAAP net income (loss). The Company views Adjusted Earnings as a metric that is not indicative of liquidity, or the cash available to fund its operations, but rather as a performance measure. Pre- and post-tax Adjusted Earnings, as well as related measures, are not intended to replace the Company’s presentation of its GAAP financial results. However, management believes that these measures help provide investors with a clearer understanding of BGC’s financial performance and offer useful information to both management and investors regarding certain financial and business trends related to the Company’s financial condition and results of operations. Management believes that the GAAP and Adjusted Earnings measures of financial performance should be considered together. For more information regarding Adjusted Earnings, see the sections of this document and/or in the Company’s most recent financial results press release titled “Reconciliation of GAAP Income (Loss) from Operations before Income Taxes to Adjusted Earnings and GAAP Fully Diluted EPS to Post-Tax Adjusted EPS”, including the related footnotes, for details about how BGC’s non-GAAP results are reconciled to those under GAAP. ADJUSTED EBITDA DEFINED BGC also provides an additional non-GAAP financial performance measure, “Adjusted EBITDA”, which it defines as GAAP “Net income (loss) available to common stockholders”, adjusted to add back the following items: • Provision (benefit) for income taxes; • Net income (loss) attributable to noncontrolling interest in subsidiaries; • Interest expense; • Fixed asset depreciation and intangible asset amortization; • Equity-based compensation, dividend equivalents and allocations of net income to limited partnership units; • Impairment of long-lived assets; • (Gains) losses on equity method investments; and • Certain other non-cash GAAP items, such as non-cash charges of amortized rents. The Company’s management believes that its Adjusted EBITDA measure is useful in evaluating BGC’s operating performance, because the calculation of this measure generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions. Such items may vary for different companies for reasons unrelated to overall operating performance. As a result, the Company’s management uses this measure and other financial metrics to evaluate operating performance and for other discretionary purposes. BGC believes that Adjusted EBITDA is useful to investors to assist them in getting a more complete picture of the Company’s financial results and operations. Since BGC’s Adjusted EBITDA is not a recognized measurement under GAAP, investors should use this measure in addition to GAAP measures of net income when analyzing BGC’s operating performance. Because not all companies use identical EBITDA calculations, the Company’s presentation of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Furthermore, Adjusted EBITDA is not intended to be a measure of free cash flow or GAAP cash flow from operations because the Company’s Adjusted EBITDA does not consider certain cash requirements, such as tax and debt service payments. For more information regarding Adjusted EBITDA, see the section of this document and/or in the Company’s most recent financial results press release titled “Reconciliation of GAAP Net Income (Loss) Available to Common Stockholders to Adjusted EBITDA”, including the footnotes to the same, for details about how BGC’s non-GAAP results are reconciled to those under GAAP.
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B G C G R O U PB G C G R O U P 35 Differences between Non - GAAP and GAAP Consolidated Results (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 an outlook for other GAAP results. This is because certain GAAP items, which are excluded from Adjusted Earnings and/or Adjusted EBITDA, are difficult to forecast with precision before the end of each period. The Company therefore believes that it is not possible for it to have the required information necessary to forecast GAAP results or to quantitatively reconcile GAAP forecasts to non-GAAP forecasts with sufficient precision without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The relevant items that are difficult to predict on a quarterly and/or annual basis with precision and may materially impact the Company’s GAAP results include, but are not limited, to the following: • Certain equity-based compensation charges that may be determined at the discretion of management throughout and up to the period-end; • Unusual, non-ordinary, or non-recurring items; • The impact of gains or losses on certain marketable securities, as well as any gains or losses related to associated mark-to- market movements and/or hedging. These items are calculated using period-end closing prices; • Non-cash asset impairment charges, which are calculated and analyzed based on the period-end values of the underlying assets. These amounts may not be known until after period-end; and • Acquisitions, dispositions, and/or resolutions of litigation, disputes, investigations, or enforcement matters, or similar items, which are fluid and unpredictable in nature. LIQUIDITY DEFINED BGC may also use a non-GAAP measure called “liquidity”. The Company considers liquidity to be comprised of the sum of cash and cash equivalents, reverse repurchase agreements (if any), financial instruments owned, at fair value, less securities lent out in securities loaned transactions and repurchase agreements (if any). The Company considers liquidity to be an important metric for determining the amount of cash that is available or that could be readily available to the Company on short notice. For more information regarding Liquidity, see the section of this document and/or in the Company’s most recent financial results press release titled “Liquidity Analysis”, including any footnotes to the same, for details about how BGC’s non-GAAP results are reconciled to those under GAAP. CONSTANT CURRENCY DEFINED BGC generates a significant amount of its revenues in non-U.S. dollar denominated currencies, particularly in the euro and pound sterling. In order to present a better comparison of the Company's revenues during the period, which exhibited highly volatile foreign exchange movements, BGC provides revenues year-over-year comparisons on a “Constant Currency” basis. BGC uses a Constant Currency financial metric to provide a better comparison of the Company's underlying operating performance by eliminating the impacts of foreign currency fluctuations between comparative periods. Since BGC's consolidated financial statements are presented in U.S. dollars, fluctuations in non-U.S. dollar denominated currencies have an impact on the Company's GAAP results. The Company's Constant Currency metric, which is a non-GAAP financial measure, assumes the foreign exchange rates used to determine the Company's comparative prior period revenues, apply to the current period revenues. Constant Currency revenue percentage change is calculated by determining the change in current quarter non-GAAP Constant Currency revenues over prior period revenues. Non-GAAP Constant Currency revenues are total revenues excluding the effect of foreign exchange rate movements and are calculated by remeasuring and/or translating current quarter revenues using prior period exchange rates. BGC presents certain non-GAAP Constant Currency percentage changes in Constant Currency revenues as a supplementary measure because it facilitates the comparison of the Company's core operating results. This information should be considered in addition to, and not as a substitute for, results reported in accordance with GAAP.
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B G C G R O U PB G C G R O U P ir.bgcg.com x.com/bgcgroupinc linkedin.com/company/bgc_group Investor Contact: Jason Chryssicas +1 212-610-2426 Media Contact: Danielle Popper +1 212-610-2419