BGC Group, Inc.BGC
BGC Group, Inc. Fair Value Disclosure
Fair Value of Financial Assets and Liabilities
Fair Value Measurements on a Recurring Basis
The following tables set forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under U.S. GAAP guidance (in thousands):
| Assets at Fair Value at December 31, 2025 | |||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Netting and Collateral | Total | |||||||||||||||||||||||||
| Financial instruments owned, at fair value—Domestic government debt | $ | 97,546 | $ | — | $ | — | $ | — | $ | 97,546 | |||||||||||||||||||
| Financial instruments owned, at fair value—Foreign government debt | — | 29,054 | — | — | 29,054 | ||||||||||||||||||||||||
| Financial instruments owned, at fair value—Equities | 955 | — | — | — | 955 | ||||||||||||||||||||||||
| Financial instruments owned, at fair value—Corporate bonds | — | 59 | — | — | 59 | ||||||||||||||||||||||||
| FX swaps | — | 2,424 | — | (651) | 1,773 | ||||||||||||||||||||||||
| Forwards | — | 929 | — | (274) | 655 | ||||||||||||||||||||||||
| Futures | 44,469 | — | — | (44,469) | — | ||||||||||||||||||||||||
| Total | $ | 142,970 | $ | 32,466 | $ | — | $ | (45,394) | $ | 130,042 | |||||||||||||||||||
| Liabilities at Fair Value at December 31, 2025 | |||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Netting and Collateral | Total | |||||||||||||||||||||||||
| FX swaps | $ | — | $ | 1,673 | $ | — | $ | (651) | $ | 1,022 | |||||||||||||||||||
| Forwards | — | 658 | — | (274) | 384 | ||||||||||||||||||||||||
| Futures | 44,671 | — | — | (44,469) | 202 | ||||||||||||||||||||||||
| Contingent consideration | — | — | 22,662 | — | 22,662 | ||||||||||||||||||||||||
| Total | $ | 44,671 | $ | 2,331 | $ | 22,662 | $ | (45,394) | $ | 24,270 | |||||||||||||||||||
| Assets at Fair Value at December 31, 2024 | |||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Netting and Collateral | Total | |||||||||||||||||||||||||
| Financial instruments owned, at fair value—Domestic government debt | $ | 170,381 | $ | — | $ | — | $ | — | $ | 170,381 | |||||||||||||||||||
| Financial instruments owned, at fair value—Foreign government debt | — | 14,827 | — | — | 14,827 | ||||||||||||||||||||||||
| Financial instruments owned, at fair value—Equities | 989 | — | — | — | 989 | ||||||||||||||||||||||||
| FX swaps | — | 5,993 | — | (1,183) | 4,810 | ||||||||||||||||||||||||
| Forwards | — | 465 | — | (56) | 409 | ||||||||||||||||||||||||
| Futures | 37,083 | — | — | (36,918) | 165 | ||||||||||||||||||||||||
| Interest rate swaps | — | 132 | — | (132) | — | ||||||||||||||||||||||||
| Total | $ | 208,453 | $ | 21,417 | $ | — | $ | (38,289) | $ | 191,581 | |||||||||||||||||||
| Liabilities at Fair Value at December 31, 2024 | |||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Netting and Collateral | Total | |||||||||||||||||||||||||
| FX swaps | $ | — | $ | 4,862 | $ | — | $ | (1,183) | $ | 3,679 | |||||||||||||||||||
| Futures | 36,918 | — | — | (36,918) | — | ||||||||||||||||||||||||
| Forwards | — | 807 | — | (56) | 751 | ||||||||||||||||||||||||
| Interest rate swaps | — | 132 | — | (132) | — | ||||||||||||||||||||||||
| Contingent consideration | — | — | 21,768 | — | 21,768 | ||||||||||||||||||||||||
| Total | $ | 36,918 | $ | 5,801 | $ | 21,768 | $ | (38,289) | $ | 26,198 | |||||||||||||||||||
Level 3 Financial Liabilities
Changes in Level 3 liabilities measured at fair value on a recurring basis for the year ended December 31, 2025 were as follows (in thousands):
Unrealized gains (losses) for the period included in: | ||||||||||||||||||||||||||||||||||||||||||||
| Opening Balance as of January 1, 2025 | Total realized and unrealized (gains) losses included in Net income (loss)1 | Purchases/ Issuances | Sales/ Settlements | Closing Balance at December 31, 2025 | Net income (loss) on Level 3 Assets / Liabilities Outstanding at December 31, 2025 | Other comprehensive income (loss) on Level 3 Assets / Liabilities Outstanding at December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
| Accounts payable, accrued and other liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
| Contingent consideration | $ | 21,768 | $ | 4,977 | $ | — | $ | (4,083) | $ | 22,662 | $ | 4,759 | $ | — | ||||||||||||||||||||||||||||||
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1Realized and unrealized gains (losses) are reported in “,” in the Company’s Consolidated Statements of Operations.
Changes in Level 3 liabilities measured at fair value on a recurring basis for the year ended December 31, 2024 were as follows (in thousands):
Unrealized gains (losses) for the period included in: | ||||||||||||||||||||||||||||||||||||||||||||
| Opening Balance as of January 1, 2024 | Total realized and unrealized (gains) losses included in Net income (loss)1 | Purchases/ Issuances | Sales/ Settlements | Closing Balance at December 31, 2024 | Net income (loss) on Level 3 Assets / Liabilities Outstanding at December 31, 2024 | Other comprehensive income (loss) on Level 3 Assets / Liabilities Outstanding at December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
| Accounts payable, accrued and other liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
| Contingent consideration | $ | 11,929 | $ | 1,146 | $ | 12,333 | $ | (3,640) | $ | 21,768 | $ | 1,146 | $ | — | ||||||||||||||||||||||||||||||
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1Realized and unrealized gains (losses) are reported in “,” as applicable, in the Company’s Consolidated Statements of Operations.
Quantitative Information About Level 3 Fair Value Measurements on a Recurring Basis
The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurement of Level 3 liabilities measured at fair value on a recurring basis (dollar amounts in thousands):
| Fair Value as of December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Assets | Liabilities | Valuation Technique | Unobservable Inputs | Range | Weighted Average | ||||||||||||||||||||||||||||||
Discount rate1 | 7.5%-9.2% | 7.5% | |||||||||||||||||||||||||||||||||
| Contingent consideration | $ | — | $ | 22,662 | Present value of expected payments | Probability of meeting earnout and contingencies | 50%-100% | 85.0%2 | |||||||||||||||||||||||||||
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1The discount rate is based on the Company’s calculated weighted-average cost of capital.
2The probability of meeting the earnout targets was based on the acquirees’ projected future financial performance, including revenues.
| Fair Value as of December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Assets | Liabilities | Valuation Technique | Unobservable Inputs | Range | Weighted Average | ||||||||||||||||||||||||||||||
Discount rate1 | 9.1%-9.2% | 9.1% | |||||||||||||||||||||||||||||||||
| Contingent consideration | $ | — | $ | 21,768 | Present value of expected payments | Probability of meeting earnout and contingencies | 20%-100% | 81.9%2 | |||||||||||||||||||||||||||
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1The discount rate is based on the Company’s calculated weighted-average cost of capital.
2The probability of meeting the earnout targets was based on the acquirees’ projected future financial performance, including revenues.
Information About Uncertainty of Level 3 Fair Value Measurements
The significant unobservable inputs used in the fair value of the Company’s contingent consideration are the discount rate and forecasted financial information. Significant increases (decreases) in the discount rate would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the forecasted financial information would have resulted in a significantly higher (lower) fair value measurement. As of December 31, 2025 and 2024, the present value of expected payments related to the Company’s contingent consideration was $22.7 million and $21.8 million, respectively. The undiscounted value of the payments, assuming that all contingencies are met, would be $27.1 million and $30.4 million as of December 31, 2025 and 2024, respectively.
Fair Value Measurements on a Non-Recurring Basis
Pursuant to the recognition and measurement guidance for equity investments, equity investments carried under the measurement alternative are remeasured at fair value on a non-recurring basis to reflect observable transactions which occurred during the period. The Company applied the measurement alternative to equity securities with fair values of approximately $164.9 million and $136.1 million, which were included in “Other assets” in the Company’s Consolidated Statements of Financial Condition as of December 31, 2025 and 2024, respectively. These investments are classified within Level 2 in the fair value hierarchy, because their estimated fair value is based on valuation methods using the observable transaction price at the transaction date.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.