CMC Markets raised its full-year revenue guidance by roughly 10% after the London-listed brokerage (LSE: CMCX) recorded stronger-than-expected trading and stockbroking activity in the six months through September.
CMC Markets Lifts Revenue Outlook 10% After Record Australian Performance
The fintech firm reported net operating income of £186.2 million for the first half, up 5% from the prior-year period. Profit before tax held steady at £49.3 million, though the margin narrowed slightly to 26.5% from 27.9% a year earlier. The company attributed the compression to a £5.2 million remediation charge tied to an industry-wide margin netting issue in Australia.
"Net operating income to be approximately 10% ahead of current market expectations for FY2026," the company said, referring to consensus estimates of £353.9 million compiled internally.
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CMC's Australian stockbroking unit delivered a record half-year performance, with net operating income climbing 34% to A$65.9 million. Assets under administration in the region increased 14% to approximately A$91 billion.
The company now ranks as Australia's second-largest stockbroker by revenue, surpassing its contracts-for-difference operations in that market.
Half-Year Performance Metrics
Metric (£ millions) | HY2026 | HY2025 | Change |
Net operating income | 186.2 | 177.4 | +5% |
EBITDA | 57.1 | 60.3 | -5% |
Profit before tax | 49.3 | 49.6 | -1% |
Profit before tax margin | 26.5% | 27.9% | -1.4ppts |
Basic EPS (pence) | 13.3 | 12.8 | +4% |
Dividend per share (pence) | 5.5 | 3.1 | +77% |
Westpac Deal Expected to Lift Trading Volumes 45%
The results follow CMC's late September announcement of an extended partnership with Westpac Banking Corporation, Australia's second-largest bank. Under the arrangement, Westpac and its St.George subsidiary will adopt CMC's white-label trading platforms after a 12-month integration period.
CMC expects the agreement to expand its Australian customer base by approximately 40% and increase domestic trading volumes by roughly 45%. The partnership gives CMC access to Westpac's retail base of some 13 million clients, though the company did not specify how many would actively use the platforms.
"This is a significant and exciting opportunity for CMC Markets and continues our strong record in Australia in winning major technology partnerships with major banks," said Lord Peter Cruddas, the company's chief executive.
The Westpac arrangement mirrors an earlier deal CMC struck with ANZ Bank. Both partnerships position the firm to expand its institutional footprint without the direct client acquisition costs typically associated with retail brokerage.
Revenue Breakdown by Business Line
Revenue Source (£ millions) | HY2026 | HY2025 | Change |
Net trading revenue | 138.1 | 131.3 | +5% |
Net investing revenue | 26.3 | 19.9 | +32% |
Interest income | 20.0 | 23.4 | -15% |
Other revenue | 1.8 | 2.8 | -36% |
Total net operating income | 186.2 | 177.4 | +5% |
Blockchain Trial and European API Push
Post-period, CMC completed a live blockchain-based tokenized share trade through its subsidiary StrikeX, using Arbitrum's Layer 2 network. The October trial involved transferring digital tokens representing company shares between investors using a custodial digital wallet, which the firm said complied with UK regulations.
"With StrikeX, we are embarking on a plan to tokenise securities and derivatives markets, so that investors can trade 24/7," said Laurence Booth, CMC's global head of capital markets.
The company also announced an investment-grade rating of BBB- from Fitch Ratings and established a commercial paper program with capacity of up to €300 million. CMC said it does not anticipate issuing the full amount initially and expects the overall cost to be minimal given the improved credit terms.
Separately, CMC's API-based neobank partnership continued to grow, with the firm now live in more than 30 European countries, many where it has no physical presence. The API platform has opened hundreds of thousands of retail trading accounts over the past year, with roughly 70% coming from countries where CMC lacks offices.
Costs Rise on Remediation and Dual Operations
Operating expenses increased 10% to £136.5 million, largely due to the Australian remediation provision. Stripping out that charge, costs remained in line with internal forecasts, the company said.
CMC noted it is incurring temporary dual-running costs as it shifts operational functions to lower-cost jurisdictions through a partnership with an outsourcing provider. The firm expects those expenses to unwind over the next 12 to 18 months, leading to improved profit margins.
The board declared an interim dividend of 5.5 pence per share, up 77% from 3.1 pence a year earlier, in line with its policy of distributing half of after-tax profits. Basic earnings per share rose 4% to 13.3 pence.
CMC's trading revenue, which accounts for roughly 74% of total income, grew 5% to £138.1 million, supported by volatility in commodities and equity index products. The revised hedging strategy introduced in the prior fiscal year contributed to improved efficiency, the company said.
Interest income declined 15% to £20 million, reflecting higher payments to clients holding Cash ISA products. Assets in CMC's Cash ISA offering peaked above £300 million during the period.
CMC Markets, founded in 1989 and headquartered in London, is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The company provides online trading in contracts for difference, spread betting, foreign exchange, and stockbroking services across 12 countries.
