CMC Markets has lifted its full-year revenue expectations by roughly 10% after reporting stronger-than-anticipated trading and stockbroking activity for the six months ending September.
The London-listed brokerage recorded a solid first-half performance, supported by record results from its Australian stockbroking division and growth across multiple product lines.
According to the firm, net operating income reached £186.2 million, a 5% increase compared with the same period last year.
Profit before tax remained steady at £49.3 million, though the margin narrowed to 26.5% following a £5.2 million remediation charge tied to an Australian margin netting issue.
Forecast Upgraded as Australian Unit Delivers Record Gains
CMC stated that its full-year net operating income is expected to come in approximately 10% above market consensus for FY2026, which internally stands at £353.9 million.
A major factor in the revised outlook was the company’s strong performance in Australia.
The stockbroking unit posted net operating income of A$65.9 million, up 34% from the prior year, marking its best half-year on record.
Assets under administration climbed 14% to around A$91 billion, helping the business overtake its CFD division as the company’s top revenue generator in the country.
Westpac Partnership Expected to Boost Trading Activity
CMC’s results come shortly after it expanded its long-running relationship with Westpac, Australia’s second-largest bank.
Under the new agreement, Westpac and its St.George brand will transition to CMC’s white-label trading platforms after a 12-month integration process.
The company expects the partnership to grow its Australian customer base by about 40% and lift domestic trading volumes by roughly 45%.
“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 deal follows an earlier arrangement with ANZ Bank, signaling the firm’s strategy to expand institutional services without the high marketing costs associated with retail client acquisition.
Tokenized Trading Pilot and European API Expansion
After the end of the reporting period, CMC successfully completed a live blockchain trial through its subsidiary StrikeX.
The pilot used Arbitrum’s Layer 2 network to enable the transfer of digital tokens representing company shares between investors, all within a custodial wallet setup compliant 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, the firm’s global head of capital markets.
Alongside the blockchain trial, CMC secured a BBB- credit rating from Fitch and established a commercial paper program with capacity up to €300 million.
The company said it does not plan to issue the full amount initially and expects borrowing costs to remain low due to improved credit conditions.
CMC also continued expanding its API-based banking partnerships, now operating across more than 30 European countries.
Roughly 70% of new retail accounts were opened in markets where the firm has no physical presence, highlighting the rapid growth of its API distribution model.
Rising Costs Offset by Future Efficiencies
Operating expenses increased 10% to £136.5 million, mainly due to the Australian remediation provision.
Excluding that one-off charge, costs were broadly in line with internal expectations.
CMC said temporary dual-operating expenses are being incurred as the company transitions certain functions to lower-cost jurisdictions through an outsourcing partner.
These costs are expected to unwind over the next 12 to 18 months, improving profit margins.
The board declared an interim dividend of 5.5 pence per share, a 77% increase from last year, in accordance with its policy of distributing half of post-tax profits.
Trading revenue rose 5% to £138.1 million, supported by strong activity in commodities and equity index derivatives.
Interest income fell 15% to £20 million due to higher payments to customers holding Cash ISA products.
CMC Markets, founded in 1989 and headquartered in London, remains a key player in global online trading, serving clients across 12 countries with offerings in CFDs, spread betting, FX, and stockbroking.
