• Adjusted Profit Before Tax: $96 million, up 42% year over year.

• Revenue: $467 million, a 28% increase.

• Margin: Increased to 21%, up 200 basis points.

• Return on Equity: 29%, up 6 percentage points year over year.

• Adjusted Diluted EPS: $0.91 per share, up 32% year over year.

• Clearing Revenue: $119 million, an 18% increase.

• Agency and Execution Revenue: $240 million, up 42%.

• Market Making Revenue: $53 million, a 27% increase.

• Solutions Revenue: $45 million, up 9%.

• Net Interest Income: $53.4 million, compared to $35.6 million in Q1 last year.

• Liquidity Surplus: $1.6 billion over regulatory minimum.

• Dividend: Increased to $0.15 per share for Q1 2025.

• Warning! GuruFocus has detected 7 Warning Signs with MRX.

Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Marex Group PLC (NASDAQ:MRX) reported a strong first quarter with adjusted profit before tax of $96 million, marking a 42% increase.

• The company successfully executed a highly oversubscribed equity offering and a well-received debt offering, enhancing its liquidity position.

• Revenues grew by 28% to $467 million, with strong growth across all business segments, particularly in agency execution and energy.

• Marex Group PLC (NASDAQ:MRX) increased its dividend to $0.15 per share, reflecting confidence in its financial performance.

• The company maintained a robust liquidity surplus, further strengthened by a $500 million senior notes issuance, supporting its growth and operational resilience.

Negative Points

• The company faces increased funding costs impacting net interest income due to maintaining high liquidity levels.

• There was a decline in net commission income in the clearing segment, particularly in the agricultural sector, due to lower client activity.

• The market making segment experienced muted growth in metals revenue due to uncertainty around potential global tariffs.

• The company anticipates a potential impact on net interest income from expected rate cuts by the Federal Reserve.

• Despite strong performance, Marex Group PLC (NASDAQ:MRX) remains cautious about macroeconomic uncertainties and geopolitical risks that could affect future results.

Q & A Highlights

Q: Can you provide more details on the recent performance and future expectations for the prime services business? A: Ian Lowitt, CEO: The prime services business is a key part of our strategic plan and has shown significant growth recently. Although it was slower than expected in 2024 due to integration challenges, we've seen a strong pickup in the last two quarters. While the growth rate may slow, we expect it to remain an important growth area. The agency and execution segment has also improved margins due to restructuring and integration efforts.