CMC Markets Reports FY25 Financials

CMC Markets (CMC) has announced its financial year 2025 results, detailing a 2% rise in net operating income to £340 million and the strategic introduction of a third business vertical focused on Decentralised Finance (DeFi) and Web3 capabilities. This new arm will operate alongside its established Direct to Consumer (D2C) and Platform Technology as a Service (B2B) verticals.

The company reported a profit before tax of £84.5 million for the full year, with the board proposing a full-year dividend per share of 11.4p, an increase of 37% from the prior year's 8.3p, consistent with its policy to return 50% of post-tax profits. Operating expenses were reported as down 2% year-on-year to £250 million, reflecting cost control measures, though IT costs increased by 17% due to investment in automation, platform resilience, and infrastructure.

Peter Cruddus, CEO, described the new DeFi and Web3 vertical as "a natural evolution of everything we already do," rather than a pivot. He stated, "This third vertical builds on everything we have already achieved. It's underpinned by the same robust infrastructure, disciplined investment, and client-first thinking, and it ensures we remain relevant and competitive as the markets continue to evolve."

The move into DeFi and Web3 aims to build financial infrastructure that is "faster, more accessible, and more scalable," leveraging blockchain technologies to enhance traditional finance. CMC highlighted initiatives already underway, including the 2025 launch of weekend crypto trading and the acquisition of StrikeX, which provides native blockchain talent and capabilities in tokenization and wallet infrastructure. The company has also expanded its payments infrastructure to allow clients to deposit and withdraw in digital currencies.

In providing the financial update, David Fineberg noted that the net operating income was driven by the PTAS (B2B) segment growth, a strong performance from Invest Australia, and the Treasury Management and Capital Markets division. He also mentioned a one-off charge of £4.3 million in FY25 related to a customer remediation in Australia, part of an industry-wide regulatory review, expected to be fully utilised in FY26.

Strategic Implications

CMC's strategy now encompasses three verticals: D2C, B2B (Platform Technology as a Service), and the new DeFi/Web3 arm. The company stated this position puts it "at the centre of a major industry shift, one that brings together traditional and decentralised execution, clearing, and finance." The acquisition of a majority stake in StrikeX is noted as a key milestone, enhancing capabilities in tokenisation and digital asset execution, positioning CMC to "capture meaningful share in what is a multi-trillion dollar digital asset opportunity," according to Lawrence Booth, Head of Capital Markets. Peter Cruddus commented on future reporting, suggesting that the growth of tokenization might necessitate separate reporting for this business segment: "we think that, quite frankly, we'll have no choice but to report our businesses separately going forward because we think that, you know, tokenization could well and truly swamp the world's financial markets." He also described Web3 as "more of an infrastructure upgrade rather than a separate revenue run."

Spotlight On: Tokenization and Multi-Asset Wallet

Tokenization is presented as a core component of the third vertical, offering a way to create digital representations of real-world shares that can be traded more efficiently and globally, enabling fractional ownership. Lawrence Booth explained, "For investors, this means more flexibility. For CMC, it means broader participation and deeper liquidity." A CMC multi-asset wallet is under development, designed as a unified platform for clients to hold and trade both traditional and tokenised assets. "It's a true convergence of TradFi and DeFi, delivering seamless access to multiple asset classes through a single interface," Booth said, adding it will be "underpinned by CMC's existing regulatory infrastructure and institutional grade security and tech."

Risk Radar

A one-off charge of £4.3 million was recorded in FY2025 for a customer remediation in Australia. This was disclosed as part of an industry-wide regulatory review concerning a technical interpretation of product intervention rules. The company expects this provision to be fully utilised in FY2026. Operating expenses are anticipated to "remain broadly stable or rise moderately" over the next two years due to reinvestment in strategic growth initiatives, including the Web3 and DeFi vertical.

Innovation Watch

CMC is focusing on integrating Web3 technologies to enhance its offerings. This includes enabling instant on and off-ramps for digital currencies, integrated payments, and automated settlement via smart contracts. The company also highlighted its 24/7 crypto trading capability, launched in 2025, adding 104 trading days a year. The expansion to 24/7 trading for other major asset classes, including major indices, G10 currencies, and key equities, is planned. Lawrence Booth noted, "retail is now dictating the direction of travel here. We're very, very well positioned from an infrastructure tech and a regs perspective." Peter Cruddus elaborated on the potential for tokenization to redefine financial products, stating, "Clients will have their own clearing systems through their own personal wallets, and they will just train products much more sort of easily losing using blockchain."

Key Metrics (FY25)

• Net Operating Income: £340 million (up 2%)

• Profit Before Tax: £84.5 million

• PBT Margin: ~25%

• Dividend Per Share: 11.4p (up 37%)

• Operating Expenses (Total): £250 million (down 2%)

• Investing Net Revenue: Up 31%

• Active D2C Trading Clients (Leveraged): >52,000

• Active D2C Invest Clients: 238,000

• International trading (Australian Invest business): Accounts for 37% of investing net revenue; clients trading international shares up 61% to >50,000.

• Crypto trading (Australian Invest business): Triple-digit YoY growth in turnover, holdings, and active investors.

• Cash ISAs (UK Invest platform): AUM > £170 million since recent launch.

Industry Perspectives

Peter Cruddus commented on the evolving financial landscape: "The financial world is changing, and it is changing quickly... The shift to Web three isn't optional. It's inevitable." He also remarked on the growth of retail trading: "retail is is booming. It's absolutely booming... I think it's gonna completely dominate financial markets." Lawrence Booth highlighted the scale of retail involvement: "retail now accounts for 20% of US equity loans on a daily basis. Zero dates of expiry options are the most actively traded options product globally, and more than 50% of that is retail."

On the Horizon

CMC plans to develop tokenised private equity products and fractional fund access. The multi-asset wallet remains a key development project. For its D2C Invest Australia platform, new features like fractional shares, regular investing, and US options are set to be introduced. The ASB Bank partnership in New Zealand is progressing, with first revenues anticipated in May or June of the next calendar year. The company intends to expand its 24/7 trading capabilities across more asset classes. Regarding costs, David Fineberg stated, "Over the next two years, we expect total operating expenses to remain broadly stable or rise moderately as we reinvest in strategic growth initiatives."

Client Focus

The introduction of the DeFi and Web3 vertical aims to provide clients with "faster, more accessible, and more scalable" financial infrastructure, including "instant on and off ramps for digital currencies, integrated payments, and automated settlement through smart contracts." Tokenization is expected to offer "more flexibility" and "broader participation," while self-custody is intended to give "clients full, secure control over their assets." Enhancements to the D2C platform include streamlined client onboarding, an updated user interface, and tools like TipRanks, alongside a partnership with TradingView. The Bermuda office opening aims to serve investors in over 150 countries, particularly in emerging markets.

Regulatory Update

The FY2025 results include a £4.3 million provision for a customer remediation in Australia, stemming from an "industry wide regulatory review" related to "a technical interpretation of the product intervention piece that was encountered several years ago," according to Matt Lewis, Head of ANZ.

The B2B segment, CMC Connect, was reported as performing well, securing partnerships with Revolut and ASB Bank, and having a healthy pipeline. Matt Lewis detailed growth in the D2C business, including a 61% increase in clients trading international shares within the Australian Invest business and triple-digit growth in crypto trading metrics.