This article first appeared on GuruFocus .
Release Date: November 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
CMC Markets PLC ( CCMMF ) has transformed from a retail CFD provider into a diversified fintech company, leveraging API technology for growth and distribution.
-
API partnership account openings have increased by more than 2,400% over the past year, demonstrating significant growth with minimal marketing costs.
-
The company has established strong partnerships with major brands like Revolut, ANZ, and Westpac, enhancing its market reach and credibility.
-
The Australian stockbroking business achieved a record performance, with net operating income up 34% to AUD66 million.
-
CMC Markets PLC ( CCMMF ) is developing a Super App to integrate trading, investing, and payments, positioning itself at the forefront of fintech innovation.
Negative Points
-
Total operating expenses rose to GBP136.5 million, partly due to a GBP5.2 million remediation provision in Australia related to an industry-wide issue.
-
Interest, treasury, and other income declined by 17% year on year, impacted by higher client interest payments.
-
Operating expenses, excluding variable remuneration, increased by 16%, reflecting additional provisions and ongoing investment costs.
-
The company faces temporary dual running and transition costs as it moves functions to lower-cost hubs, impacting short-term financials.
-
FY26 operating expenses are expected to be marginally ahead of consensus due to the Australian remediation charge and transition costs.
Q & A Highlights
Q: Can you elaborate on the growth of the API partnerships and their impact on CMC's business model? A: Peter Cruddas, CEO, explained that API partnership account openings have increased by over 2,400% in the past year, significantly expanding CMC's reach without incurring marketing or onboarding costs. This growth is primarily driven by the scalability and efficiency of their technology, allowing them to acquire clients globally, even in markets where they have no physical presence. The API connectivity is now a major growth engine, delivering recurring revenue and global distribution.
Q: What are the financial highlights for the half-year, and how do they position CMC for the future? A: John Cubbin, Interim Head of Finance, reported a net operating income of GBP186.2 million, up 5% year on year, with a profit before tax of GBP49.3 million and a PBT margin of 26.5%. The results reflect strong execution and regional performance, with a declared interim dividend of 5.5p per share. The company expects net operating income to exceed market expectations by approximately 10% for the full year.
Q: How is CMC leveraging technology to enhance its market position? A: Laurence Booth, Head of Capital Markets, emphasized the strategic importance of their API platform, which is gaining momentum and setting CMC apart as a leader in the market. The company is building a unified system that integrates traditional finance with Web3 technologies, including tokenization and atomic settlement, positioning CMC at the forefront of fintech innovation.
Q: What strategic shifts have been implemented to drive growth at CMC? A: Peter Cruddas highlighted the move from a centralized structure to empowering regional offices, allowing for more agile and localized decision-making. This franchise-like model links success directly to profitability and growth, enabling faster responses to competition and capturing opportunities effectively.
Q: Can you provide details on the new partnerships and their significance for CMC? A: Peter Cruddas noted that CMC has attracted major partners like Westpac, Currys, and other blue-chip brands due to their market-leading technology and ability to scale. These partnerships bring distribution, scale, and brand reach, contributing to the growth of account numbers, turnover, and assets with minimal incremental costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
