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Introduction & Market Context
Marex (NASDAQ:MAREX) reported strong first-quarter results on May 15, 2025, demonstrating significant growth across all business segments despite varying market conditions. The company capitalized on increased exchange volumes in its addressable markets, which grew 15% year-over-year in Q1 2025, continuing the 10% CAGR trend observed since 2021.
Market volatility indicators showed mixed signals during the period, with the CBOE Market Volatility Index (VIX) averaging 22 year-to-date, up from 16 in 2024, while the Bloomberg Commodities Index Volatility remained relatively stable at 0.13 compared to 0.12 in 2024. This operating environment provided favorable conditions for Marex’s diversified business model.
As shown in the following chart of growth trends driving exchange volumes:
Quarterly Performance Highlights
Marex delivered exceptional financial results for Q1 2025, with adjusted profit before tax increasing 42% year-over-year to $96 million. Revenue rose 28% to $467 million, with strong growth across all business segments. The Agency and Execution segment was particularly strong, with revenue increasing 42% to $240 million.
The company’s adjusted profit before tax margin expanded 200 basis points to 21%, while reported return on equity increased from 23% to 29%. Adjusted return on equity improved to 30%, up 100 basis points from the previous year.
The following image highlights these key performance metrics:
Operational efficiency also improved significantly, with revenue per front office FTE increasing from $1.2 million to $1.5 million on an annualized basis. Adjusted profit after tax attributable to common equity per FTE rose from $87,000 to $111,000 annualized.
The company announced a quarterly dividend of $0.15 per share, reflecting its strong financial position and commitment to shareholder returns.
Detailed Financial Analysis
Breaking down performance by business segment reveals broad-based growth across Marex’s operations. The Agency and Execution segment showed the most dramatic improvement, with adjusted profit before tax more than doubling from $23 million to $57 million, and margin expanding from 13% to 24%.
The following chart illustrates the strong performance across all business segments:
Clearing revenue increased 18% to $119 million, with adjusted profit before tax rising to $57 million. Market Making revenue grew 27% to $53 million, with margin expanding from 26% to 32%. The Hedging and Investment Solutions segment saw more modest growth of 9% to $45 million in revenue, with a slight decrease in margin from 29% to 24%.
Client activity drove significant increases in trading volumes across Marex’s platform. In the Clearing segment, volumes increased 17% year-over-year, outpacing the overall market growth of 15%. The Agency and Execution segments for both Energy and Securities also showed strong volume growth.
The detailed breakdown of client activity and market share gains is illustrated here:
The company’s balance sheet remained strong, with approximately 80% of total assets supporting client activity. Average balances increased to $17.1 billion in Q1 2025 from $11.3 billion in Q1 2024, while the average Fed funds rate decreased from 5.3% to 4.3% during the same period.
The following chart shows the relationship between average balances and the Fed funds rate:
Strategic Initiatives
Marex continued to execute its growth strategy during the quarter, completing the acquisition of Aarna Capital to expand its clearing presence in the Middle East. This acquisition aligns with the company’s goal of geographic expansion and service diversification.
The company also strengthened its capital position by issuing $500 million in 3-year senior unsecured notes, diversifying its funding sources. Regulatory capital increased from $536 million in Q1 2024 to $752 million in Q1 2025, while the total capital ratio improved from 228% to 243%.
The capital and liquidity position is illustrated in the following chart:
Marex successfully completed a secondary equity placement, with existing shareholders placing 11.8 million shares with institutional investors. This increased the public float to approximately 70%, enhancing trading liquidity. Since its IPO in April 2024, Marex has seen its share price increase from $19.00 to $35.50 at the most recent follow-on offering.
The following chart shows the progression of the company’s public float and share price:
Forward-Looking Statements
Looking ahead, Marex management expressed confidence in the company’s ability to continue executing its growth strategy despite potential market volatility. The company noted that while April began with elevated trading volumes, activity had since returned to more normalized levels, demonstrating the operational resilience of its business model.
The company’s balance sheet remains well-positioned to support future growth, with approximately 80% of assets dedicated to client activity and strong liquidity headroom of $1.2 billion as of March 2025.
As shown in the following breakdown of the balance sheet:
With its diversified business model, strong capital position, and strategic growth initiatives, Marex appears well-positioned to continue its growth trajectory through 2025, despite potential fluctuations in market conditions and volatility.
Full presentation:
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