BGC Group, Inc. (NASDAQ: BGC) has updated its outlook for the first quarter ending March 31, 2025. The company has reaffirmed its previously stated outlook ranges for revenue and pre-tax adjusted earnings for the first quarter of 2025 as per the financial results press release issued on February 14, 2025.
The company uses non-GAAP financial measures, including "adjusted earnings before noncontrolling interests and taxes" and "post-tax adjusted earnings to fully diluted shareholders," as supplemental measures of operating results. These 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 certain gains and charges that management believes do not best reflect the underlying operating performance of BGC.
In terms of equity-based compensation, 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’s adjusted earnings and adjusted EBITDA measures exclude all GAAP charges related to equity-based compensation, including charges related to amortization of restricted stock units (RSUs), restricted stock awards, and other equity-based awards, as well as charges with respect to grants of exchangeability and charges related to dividend equivalents earned on RSUs and any preferred returns on RSU tax accounts.
The methodology for calculating adjusted earnings taxes involves adjusting pre-tax adjusted earnings by recognizing amounts for which a tax deduction applies under applicable law, such as charges with respect to equity-based compensation, certain charges related to employee loan forgiveness, certain net operating loss carryforwards, and certain charges related to tax goodwill amortization.
BGC’s pre* and post-tax adjusted earnings per share calculations exclude certain shares and share equivalents expected to be issued in future periods but not yet eligible to receive dividends and/or distributions. Each quarter, the dividend payable to BGC’s stockholders is determined by the company’s board of directors.
The company issues RSUs, restricted stock, limited partnership units, and other forms of equity-based compensation to provide liquidity to its employees, align the interests of its employees and management with those of common stockholders, motivate and retain key employees, and encourage a collaborative culture that drives revenue growth.
BGC’s outlook for the first quarter of 2025 remains consistent with its previously stated ranges for revenue and pre-tax adjusted earnings, as per the financial results press release issued on February 14, 2025. As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $9.84. For the full picture, make sure to review BGC's 8-K report.
