CMC Markets H2 Earnings Call Highlights
Key Points
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- CMC Markets reported stronger FY2026 results, with net operating income up 15% to £392.6 million and profit before tax rising 20% to £101.3 million. The board also declared a full-year dividend of £0.138 per share.
- Management is leaning into growth in institutional and B2B channels, saying the company has evolved into a multi-asset platform business with long-term banking and fintech partnerships. Major relationships include ANZ, Westpac, Revolut and ASB Bank, and CMC said these embedded channels are driving more diversified earnings.
- FY2027 guidance points to continued expansion and investment, with net operating income expected at about £460 million to £480 million and expenses rising as the company invests in product development, brand marketing and infrastructure. CMC also highlighted more than £10 million of planned efficiency savings and a retail push through new offerings and a Premier League sponsorship.
CMC Markets (LON:CMCX) said it delivered a stronger financial performance in fiscal 2026 as institutional and business-to-business activity continued to scale, while management outlined plans for further investment in retail growth, product expansion and major banking partnerships.
Founder and CEO Peter Cruddas told investors that CMC has moved beyond its historical identity as a retail contracts-for-difference provider and is now “a platform business built for multi-asset trading and institutional partnerships.” He said revenue is increasingly driven by B2B and wholesale channels, supported by proprietary technology and long-term relationships with banks, brokers, fintech platforms and neobanks.
“CMC today has institutional scale and diversified earnings, with further opportunity in the retail space,” Cruddas said. He added that the profitability and scale of the institutional and B2B business give the company capacity to reinvest in its retail brand and direct client acquisition.
Profit Before Tax Rises 20%
Laurence Booth, Head of Capital Markets, said net operating income for fiscal 2026 rose 15% to £392.6 million from £340 million a year earlier. Profit before tax increased 20% to £101.3 million, while the Profit before tax margin expanded to 25.8%.
Booth said the performance reflected strength across trading, investing, treasury management and institutional partnerships. He also cited a record year for the Australian stockbroking business, supported by client engagement and growth in assets under administration.
In the financial update portion of the presentation, the company said total operating expenses rose 15%, primarily due to higher variable remuneration after performance hurdles were achieved, continued investment in strategic initiatives and technology infrastructure, and costs tied to major partnership integrations. The result also included a previously disclosed £5.2 million remediation provision in Australia related to an industry-wide margin netting matter.
The board declared a full-year dividend of £0.138 per share, consistent with CMC’s stated policy of returning 50% of profit after tax to shareholders.
FY2027 Guidance Points to Further Growth
CMC said it expects fiscal 2027 net operating income of approximately £460 million to £480 million. At the midpoint, Booth said that would represent around 20% growth, driven by continued momentum in institutional and B2B activity, contributions from strategic initiatives already underway and further diversification across the group.
The company expects operating expenses, excluding variable remuneration, to be approximately £280 million in fiscal 2027. Management described the coming year as a deliberate investment phase focused on product expansion, institutional partnerships, operating infrastructure and brand awareness.
CMC said it has identified more than £10 million of savings and efficiency initiatives across vendor rationalization, outsourcing efficiencies, workplace optimization and technology utilization. Those savings are already included in the company’s fiscal 2027 operating expense guidance.
The company also said it is increasing investment in brand and marketing, including a planned Premier League sponsorship intended to improve global brand visibility and support customer acquisition. Management said revenue associated with that investment has not been included in the net operating income guidance.
Partnership Model Remains Central
Cruddas emphasized that CMC’s partnerships are long-term strategic relationships rather than simple supplier arrangements. He said CMC provides technology, infrastructure, execution, risk management and product expertise, while partners bring client relationships, distribution and local market knowledge.
Major partnerships referenced during the presentation included ANZ Bank, Westpac, Revolut and ASB Bank. Management said CMC’s neobank API partnerships continued to grow strongly, providing access to large embedded client bases without requiring the company to acquire customers individually.
Booth said CMC now supports major banks, fintech platforms, neobanks and retail brands globally. He added that the company’s operational resilience was tested during a year of extreme market conditions, including significant precious metals moves, global market volatility and higher platform volumes.
“What mattered most was whether CMC could meet that demand without disruption, and our infrastructure did not miss a beat,” Booth said.
Multi-Asset Platform and Retail Push Advance
Management highlighted progress on CMC’s multi-asset platform, including a U.K. launch that enables clients to trade cash equities, CFDs and over-the-counter options from a single platform and account experience. Booth said the company also launched Spectre for professional clients in November 2025, followed by a retail rollout in May 2026.
CMC also expanded its market offering to include 24/5 U.S. equities, 24/7 crypto and 24/7 bullion trading. Booth said these developments support a broader ambition to move toward “24/7 atomic infrastructure” that is Web3 compatible and can support traditional and digital financial services.
The company also discussed CMC CapX, which provides access to investment opportunities such as secondary share placings, private equity and grey market IPO access.
Booth said CMC is now prioritizing the direct-to-consumer opportunity, supported by investments in its global brand identity, onboarding, client journeys, product capability and multi-asset functionality. He said the global addressable CFD wallet is now in excess of $10 billion.
Australian Broking Business Posts Record Year
Matt Lewis, Head of ANZ, said the Australian broking business delivered a record year, with net operating income up 32% to AUD 140 million. Active traders increased 19% to 279,000, while new accounts rose 36%, increasing by 103,000. Assets under administration grew 15% to AUD 89 billion.
Lewis said CMC continued to develop its platform, including a new desktop platform, a flexible banking solution, AI tools for stock analysis and enhancements to back-end processes and customer support.
Looking ahead, Lewis said the business plans to deliver a broader crypto offering, expand into wealth, introduce CMC CapX in the domestic market and launch listed warrants in Australia.
CMC’s white-label partnerships with Westpac and ASB Bank remain in integration and are on track to launch in 2027. Lewis said Westpac has approximately 500,000 share trading customers and around AUD 39 billion in assets under administration, and the partnership is expected to lift CMC’s domestic turnover by about 45%. ASB, New Zealand’s second-largest bank, has approximately 150,000 share trading customers.
Cruddas closed by saying the company had delivered on its long-term strategy to diversify earnings through technology, infrastructure and partnerships. “The platform is built, the partnerships are in place, the technology is ready,” he said. “Now we scale.”
About CMC Markets (LON:CMCX)
CMC is a leading global provider of online trading and investing, with a comprehensive retail, professional and institutional offering. The business was started in 1989 with a simple ethos: to make financial markets truly accessible for investors. We are proud of our strong heritage and our successful 30-year track record as an innovator at the forefront of enabling digital trading for our clients.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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