Q2 FY2026
Filed Aug 12, 2026Marex reported record Q2 2026 revenue of $695.8m and Adjusted Profit Before Tax of $165.9m, with revenue up 39% and Adjusted Profit Before Tax up 56% year-on-year.
All four operating segments grew revenue year-on-year, Adjusted Profit Before Tax Margin expanded by 250 bps to 23.8%, and IFRS Profit After Tax more than doubled to $155.3m, although the reported profit included $35.4m from discontinued operations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $695.8m | an increase of $3.5m from the previous record quarter in Q1 2026 | 39% |
| Net commission incomeGAAP | $252.1m | – | (2)% |
| Net trading incomeGAAP | $394.8m | – | 94% |
| Net interest incomeGAAP | $29.7m | – | (14)% |
| Net physical commodities incomeGAAP | $19.2m | – | 276% |
| Total expensesGAAP | $(538.3)m | – | 35% |
| Compensation and benefitsGAAP | $(404.1)m | – | 32% |
| Depreciation and amortizationGAAP | $(11.4)m | – | 33% |
| Other expensesGAAP | $(122.8)m | – | 47% |
| Net provision for credit lossesGAAP | $(1.8)m | – | 64% |
| Profit before tax from continuing operationsGAAP | $158.2m | – | 53% |
| Profit before tax margin from continuing operationsGAAP | 22.7% | – | 200 bps |
| Profit after tax from continuing operationsGAAP | $119.9m | – | 56% |
| Profit After TaxGAAP | $155.3m | – | 102% |
| Profit After Tax MarginGAAP | 22.3% | – | 700 bps |
| Basic Earnings per ShareGAAP | $2.09 | – | 103% |
| Diluted Earnings per ShareGAAP | $1.99 | – | 103% |
| Return on EquityGAAP | 37.5% | – | 910 bps |
| Adjusted Profit Before Taxnon-GAAP | $165.9m | increased 9% on the very strong first quarter | 56% |
| Adjusted Profit Before Tax Marginnon-GAAP | 23.8% | – | 250 bps |
| Adjusted Profit after Tax Attributable to Common Equitynon-GAAP | $124.0m | – | 61% |
| Adjusted Return on Equitynon-GAAP | 37.8% | – | 640 bps |
| Adjusted Basic Earnings per Sharenon-GAAP | $1.72 | – | 59% |
| Adjusted Diluted Earnings per Sharenon-GAAP | $1.64 | – | 61% |
| Average Common Equityother | $1,310.9m | – | 34% |
| Average FTE headcountother | 3,364 | – | 31% |
| H1 2026 RevenueGAAP | $1,388.1m | – | 43% |
| H1 2026 Profit After TaxGAAP | $267.7m | – | 79% |
| H1 2026 Adjusted Profit Before Taxnon-GAAP | $318.6m | – | 57% |
| H1 2026 Adjusted Profit Before Tax Marginnon-GAAP | 23.0% | – | 200 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ClearingHigher net interest income from record average client balances of $19.1bn, driven by structural growth from existing and new clients, larger-client activity and higher margin requirements. | $161.3m | – | 16% |
| Agency and ExecutionRecord Securities revenue of $282.5m, including strong growth across Prime, FX and Equities, partially offset by lower Energy revenue of $64.6m. | $351.0m | – | 35% |
| Market MakingBroad-based growth across Metals, Agriculture, Energy and Securities, with Securities benefiting from the inclusion of Winterflood. | $118.2m | – | 106% |
| Hedging and Investment SolutionsStrong growth in both Hedging Solutions and Financial Products, supported by client onboarding, regional expansion, structured product activity and prior technology-platform investment. | $71.0m | – | 74% |
| CorporateCorporate manages Group funding and control and support functions. Revenue was affected by surplus liquidity levels. | $(5.7)m | – | (338)% |
Capital returns
- The Board of Directors approved the payment of a dividend of $0.16 per share to be paid on September 9, 2026 to the shareholders on record at the close of business on August 24, 2026.
- Ordinary dividend payments of $22.3m.
- The Group completed a partial redemption of its AT1 instrument of $94.7m.
- Issued $500m of hybrid capital.
- Issued $500m of senior unsecured notes.
What drove it
- Net trading income increased by $191.5m to $394.8m, driven by Agency and Execution, Market Making and Hedging and Investment Solutions.
- Clearing average client balances reached $19.1bn, compared with $12.8bn in Q2 2025.
- Agency and Execution Securities revenue increased to $282.5m, with Prime revenue of $120.0m, FX revenue of $51.5m and Equities revenue of $67.6m.
- Market Making Metals revenue increased to $65.7m and Securities revenue increased to $29.8m, with Winterflood contributing following its December 2025 acquisition.
- Hedging and Investment Solutions structured note balances increased by 29% to $4.9bn.
- The Group completed the acquisition of Levmet and Webb Traders and announced the acquisition of Bright Point.
- The Group completed the sale of the Winterflood custody business, generating a $35.1m gain on disposal.
Concerns
- Net commission income decreased 2% to $252.1m, principally reflecting lower Energy activity in Agency and Execution.
- Net interest income decreased 14% to $29.7m despite higher balances, as increased interest expense associated with two $500m senior debt issuances and increased structured note issuance more than offset increased interest income.
- Agency and Execution Energy revenue decreased 30% to $64.6m as market volumes and client activity normalized.
- Agency and Execution Credit revenue decreased 36% to $11.9m, reflecting lower client activity and transaction volumes in a subdued credit market.
- H1 2026 Clearing net trading income was a loss of $7.0m, including the impact of a default from a natural gas client recognized across trading income of $28.2m and credit loss provisions of $5.7m.
- Q2 2026 Profit After Tax included $35.4m from discontinued operations, comprising a $35.1m gain on disposal of the Winterflood custody business and $0.3m of profit after tax generated before completion of the sale.
- Total expenses increased 35% to $(538.3)m, including higher performance-related compensation, technology and infrastructure investment, and acquisition impacts.
What to watch
- Whether record Clearing client balances of $19.1bn remain elevated as market conditions evolve.
- The sustainability of Agency and Execution Securities growth, particularly Prime, FX and Equities, against lower Energy and Credit activity.
- The effect of higher debt securities of $6,853.9m and structured note issuance on net interest income.
- Integration and profitability contributions from Hamilton Court, Winterflood, Levmet, Webb Traders and the announced Bright Point acquisition.
- The Group's response to the natural gas client default and future credit-loss provisions.
- Execution of the July 1, 2026 redomiciliation to Bermuda and the Group's capital and liquidity management under its internal risk appetite framework.
Balance sheet and cash flow
- Cash & Liquid Assets were $9,097.3m at June 30, 2026, compared with $7,035.6m at December 31, 2025.
- Total Assets were $42,126.1m at June 30, 2026, compared with $32,704.0m at December 31, 2025.
- Debt Securities were $6,853.9m at June 30, 2026, compared with $5,721.6m at December 31, 2025.
- Total Equity was $1,868.8m at June 30, 2026, compared with $1,263.6m at December 31, 2025.
- Total available liquid resources were $4,324.5m at June 30, 2026, compared with $2,747.1m at December 31, 2025.
- Liquidity headroom was $1,814.1m at June 30, 2026, compared with $1,045.8m at December 31, 2025.
- Group capital resources were $1,501.4m at June 30, 2026, compared with $927.1m at December 31, 2025.
- Group capital surplus was $978.1m at June 30, 2026, compared with $524.5m at December 31, 2025.
- Group capital ratio was 287% at June 30, 2026, compared with 230% at December 31, 2025.
- No operating cash flow or free cash flow was reported.
Analysis
Marex delivered a record Q2 2026, with IFRS revenue increasing 39% to $695.8m and Adjusted Profit Before Tax increasing 56% to $165.9m. Revenue was $3.5m higher than the previous record quarter in Q1 2026, while Adjusted Profit Before Tax increased by $13.2m from Q1 2026. H1 2026 revenue increased 43% to $1,388.1m and H1 Adjusted Profit Before Tax increased 57% to $318.6m, demonstrating that the first-half result was supported by two record quarters in different market environments.
Growth was broad-based across the four operating segments. Agency and Execution was the largest contributor, with revenue up 35% to $351.0m, led by Securities revenue of $282.5m. Prime revenue reached $120.0m, FX revenue was $51.5m and Equities revenue was $67.6m. Market Making revenue more than doubled to $118.2m, aided by Metals and the Winterflood contribution in Securities. Hedging and Investment Solutions increased revenue 74% to $71.0m, and Clearing rose 16% to $161.3m as average client balances reached $19.1bn.
Profitability improved as higher-margin, infrastructure-intensive businesses increased their contribution. Adjusted Profit Before Tax Margin expanded 250 bps to 23.8%, while IFRS profit before tax margin from continuing operations increased 200 bps to 22.7%. Agency and Execution Adjusted Profit Before Tax Margin increased to 33.3%, Market Making increased to 37.7%, and Hedging and Investment Solutions increased to 35.1%. Clearing remained the highest-margin segment at 49.1%, although its margin declined from 50.8% as front-office costs increased.
Reported IFRS Profit After Tax rose 102% to $155.3m and basic EPS rose 103% to $2.09. However, the result included $35.4m from discontinued operations, principally a $35.1m gain on the disposal of the Winterflood custody business. Costs also rose with scale and investment: total expenses increased 35% to $(538.3)m, compensation and benefits increased 32% to $(404.1)m, and average FTE headcount increased 31% to 3,364. Net interest income declined 14% to $29.7m because higher debt and structured-note interest expense more than offset increased interest income from higher balances.
Capital and liquidity expanded during the period. The Group issued $500m of hybrid capital and $500m of senior unsecured notes, while total equity increased to $1,868.8m and total available liquid resources increased to $4,324.5m. The Board approved a dividend of $0.16 per share payable on September 9, 2026. No forward financial guidance was provided. The principal operating issue disclosed for the first half was a natural gas client default that affected Clearing net trading income and credit-loss provisions, while Q2 Energy and Credit activity in Agency and Execution was lower than the prior-year period.
Management, verbatim
We delivered record first half revenue and profitability, with Adjusted Profit Before Tax 1 for the first six months of 2026 of $318.6m. We had a record second quarter with Adjusted Profit Before Tax 1 of $165.9m, beating our strong performance in the first quarter.
Ian Lowitt, Group Chief Executive Officer
In the second quarter we continued to expand margins, improving our Adjusted Profit Before Tax Margin 1 by 250 basis points to 23.8%, reflecting the increasing contribution from higher-margin, infrastructure-intensive businesses.
Ian Lowitt, Group Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
- Previous-release outlook for comparison
- Gross profit and gross margin
- Operating income and operating margin
- Operating cash flow
- Free cash flow
- Share repurchase amount or authorization
- Q1 2026 reported revenue figure
- Q1 2026 reported Adjusted Profit Before Tax figure
- Prior-quarter comparisons for most reported metrics
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.