Marex Group plc Ordinary Shares (MRX) Earnings

Management highlights

- Overall Financial Performance * Q2 2026 was the sixth consecutive record profit quarter since Marex's IPO in April 2024, with total revenue up 39% year-on-year to $696 million, and adjusted profit before tax up 56% to $166 million. * Adjusted profit before tax margin expanded to 24%, driven by growing contributions from higher-margin infrastructure-intensive businesses. Adjusted EPS was $1.72, and return on equity reached 37.5%. * First half 2026 adjusted profit before totaled $319 million, equal to the full year 2024 total annual profit, demonstrating significant earnings growth. - Diversification and Earnings Resilience * Despite a 17% QoQ decline in key exchange volumes, lower market volatility, and flat interest rates in Q2, adjusted profit before tax still grew 9% sequentially, proving earnings resilience from diversified business lines. * Over the past 5 years, Marex delivered year-over-year adjusted profit growth in 19 of 20 quarters, and has increased profitability sequentially annually for 12 consecutive years. Since IPO, quarterly adjusted PBT has grown an average 48% YoY. - Client Relationship Growth * As of 2026, 77 clients generate over $5 million in annual run-rate revenue, up from 49 in 2025 and 36 in 2024. Revenue from this cohort grew 59% since 2025, driven by existing clients expanding their relationships rather than just new client onboarding. * Average revenue per client is up 34% overall, as clients increasingly use multiple Marex products and capabilities. - M&A Strategy * ~80% of YoY profit growth in Q2 2026 was organic. Disciplined M&A focuses on strategic capability/geographic expansion, not just buying earnings, with value created through post-acquisition integration. * 2025 acquisitions (Arna, Hamilton Court, Winter Flood) now generate an annualized run-rate of $60 million PAT, 3.5x pre-acquisition earnings, already returning the full acquisition premium. The pending Brightpoint acquisition will strengthen the global clearing franchise, expand Asian presence, and is expected to follow the same successful growth pattern, completing in late 2026/early 2027. * M&A pipeline remains strong, allowing Marex to remain selective on opportunities at attractive valuations. - Market Structure Innovation * Marex is the first firm to offer cross-margining for CME-cleared U.S. Treasury futures and FIC/DTC-cleared cash U.S. Treasuries, with 3 live clients and 10 more in the pipeline. * Enabled USDC stablecoin use as initial margin under a CFTC pilot, and executed the first on-chain repo transaction for tokenized U.S. Treasuries on the Canton network, building out a digital asset prime offering. * Expected to launch clearing for Kalshi prediction markets in Q3 2026, with a strong existing client pipeline. - Balance Sheet and Capital Management * Issued $500 million of hybrid capital and $500 million of senior unsecured notes in Q2, both oversubscribed, strengthening the capital base and providing additional balance sheet capacity for growth. Risk-adjusted capital ratio was 12% at quarter end, comfortably above the 10% threshold for an investment-grade credit rating. Liquidity headroom reached $1.8 billion, with $8.1 billion in total funding sources.

Guidance

- Management reaffirmed confidence in hitting the top end of its long-term 10-20% annual adjusted profit growth target, based on current performance and strong pipeline of organic and M&A opportunities. - M&A is expected to continue contributing ~20% of total annual profit growth, consistent with historical levels, with no expected change to this split going forward. - Margins are expected to remain around the current 24% level, with potential for slow, steady further expansion over time rather than dramatic increases. - Third quarter 2026 trading trends through July and early August are a continuation of the strong performance seen in the first half of the year, with the firm operating at similar levels to H1 2026. - Clearing client balance growth is expected to continue, with a healthy pipeline of new client growth for the remainder of 2026 following $1 billion in net new balances added year-to-date through early August.

Segment performance

1. Clearing: Revenue increased 16% year-on-year to $161 million, contributing 23.1% of total Q2 2026 revenue. Adjusted profit before tax increased 12% year-on-year, with a segment margin of 49%. Year-to-date first half 2026 revenue was $299 million, up 16% year-on-year, and adjusted profit before tax increased 8% year-on-year. Average clearing client balances grew to $19.1 billion, driving a 31% increase in clearing net interest income. 2. Agency and Execution: Revenue increased 35% year-on-year to $351 million, contributing 50.4% of total Q2 2026 revenue. Within this segment: Securities revenue rose 68% to $283 million, led by record Prime revenue of $120 million, strong FX growth, and equities derivatives momentum; MarketMaking revenue increased 106% year-on-year to $118 million, with broad-based strength across metals, securities, and energy. Adjusted profit before tax for the full segment increased 69% to $117 million, with a segment margin of 33%. MarketMaking adjusted profit before tax hit $45 million, with a 38% margin. 3. Solutions: Revenue increased 74% year-on-year, contributing 11.4% of total Q2 2026 revenue. Adjusted profit before tax increased almost fourfold to $25 million, with a segment margin of 35%. Growth was driven by broad-based expansion across hedging solutions and financial products, supported by favorable market conditions and technology investments.

Risks & headwinds

- Forward-looking statements are inherently uncertain, and actual results may differ materially from projections due to market cyclicality, changes in volatility, interest rates, exchange activity, and other unforeseen factors. - The elevated right-tail profitability seen in the first half of 2026, driven by exceptional market conditions in Q1, is expected to moderate, with the profit distribution returning to a more typical bell shape (though centered at a higher profitability level than prior periods). - Near-term net interest income is modestly pressured by the firm's decision to hold large liquidity buffers and the interest expense from recent debt issuances, though this is viewed as a deliberate, prudent strategic choice to support future growth. - Market-making profitability is sensitive to extreme volatility, which can create headwinds even as moderate volatility supports performance.

Analyst Q&A

• Q: How much M&A contribution is baked into the 10-20% growth target range, and what is the long-term trajectory for margins? /

  A: Management expects M&A to continue contributing approximately 20% of total profit growth, consistent with the Q2 2026 contribution, with no expected change to this split. The strong M&A pipeline remains robust, and management expects no shift from this historical pattern. Current margins around 24% are supported by ongoing structural drivers like higher-margin business mix, and management expects margins could slowly increase over time, but no dramatic expansion is anticipated.

• Q: What types of clients are driving the strong growth in the $5M+ annual revenue cohort, and what is driving structural prime brokerage growth amid large bank balance sheet constraints? /

  A: Growth in the large client cohort comes from both more clients moving into the $5M+ bucket and existing large clients expanding their activity, with a very broad mix of client segments including commodity producers/consumers, banks, asset managers, hedge funds, and long-only real money funds. Prime brokerage has doubled in size over the past year, driven by broader client adoption as Marex has established credibility as a reliable provider; the business spans outsourced trading, prime of prime, and on-balance sheet prime, and is seeing ongoing share gains with mid-sized hedge funds in the $500M-$2B AUM range that are underserved by large global banks.

• Q: What is driving the strong outperformance of metals market-making, and what factors are behind the structural step-up in solutions growth? /

  A: Metals market-making outperformed exchange volume trends in Q2 because extreme volatility is not optimal for market-making, and Q2's moderately high (but not extreme) volatility created a favorable trading environment, with strong performance also driven by client service and attractive spread levels. Solutions growth reflects a combination of geographic expansion, product investment, successful technology replatforming that created capacity for higher volumes with straight-through processing, and growing market acceptance of the Marex brand, with all drivers expected to continue supporting growth going forward.

• Q: Which of the new market structure initiatives is most likely to scale meaningfully, and what is the early impact of the new cross-margining offering for U.S. Treasuries? /

  A: Cross-margining already is monetizing effectively and has helped win larger shares of client business, with its biggest impact being building credibility with sophisticated institutional clients. Digital asset prime brokerage capabilities are expected to become a solid, highly profitable business serving the growing digital asset ecosystem. Prediction markets have the most potential to become a large, transformative opportunity if they meet real client hedging demand, and Marex expects to be well-positioned as a leading FCM provider for regulated prediction market venues, with strong early client interest.