Q4 2025 Marex Group PLC Earnings Call

Speaker #1: Hello everyone, thank you for joining us and welcome to the Marex Q4, 2025 earnings remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Operator: Hello everyone. Thank you for joining us, and welcome to the Marex Q4 2025 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again. I will now hand the call over to Adam Strachan, Head of Investor Relations. Please go ahead.

Speaker #1: To withdraw your question, please press star 1 again. I will now end the call over to Adam Stracken, Head of Investor Relations. Please go ahead.

Speaker #2: Good morning everyone, and thanks for joining us today for Marex's fourth quarter 2025 earnings conference call. Speaking today are Ian Lowett, Group CEO, and Rob Irvin, Group CFO.

Adam Strachan: Good morning, everyone, thanks for joining us today for Marex's Q4 2025 earnings conference call. Speaking today are Ian Lowitt, Group CEO, and Rob Irvin, Group CFO. After Ian and Rob have made their formal remarks, we will open the call to questions, and Paolo Tonucci, our Chief Strategist and CEO of Capital Markets, will join for Q&A as usual. Before we begin, I would like to remind everyone that certain matters discussed in today's conference call are forward-looking statements relating to future events, management's plans and objectives for the business, and the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements, the risk factors that may affect results are referred to in Marex's press release issued today.

Speaker #2: After Ian and Rob have made their formal remarks, we will open the call to questions, and Paola Tinucci, our Chief Strategist and CEO of Capital Markets, will join for Q&A as usual.

Speaker #2: Before we begin, I would like to remind everyone that certain matters discussed in today's conference call are forward-looking statements relating to future events, management's plans, and objectives for the business.

Speaker #2: And the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements.

Speaker #2: And the risk factors that may affect results are referred to in Marex's press release issued today. The forward-looking statements made today are as of the date of this call, and Marex does not undertake any obligation to update their forward-looking statements.

Adam Strachan: The forward-looking statements made today are as of the date of this call, and Marex does not undertake any obligation to update their forward-looking statements. Finally, the speakers may refer to certain adjusted or non-IFRS financial measures on this call. A reconciliation schedule of the non-IFRS financial measures to the most directly comparable IFRS measures is also available in the earnings release issued today. A copy of today's release and investor presentation may be obtained by visiting the investor relations page of the website at marex.com. I will now turn the call over to Ian.

Speaker #2: Finally, the speakers may refer to certain adjusted or non-IFRS financial measures on this call. A reconciliation schedule of the non-IFRS financial measures to the most directly comparable IFRS measures is also available in the earnings release issued today.

Speaker #2: A copy of today's release and investor presentation may be obtained by visiting the investor relations page of marex.com. I will now turn the call over to Ian.

Speaker #3: Good morning, and welcome to our fourth quarter and full-year 2025 earnings call. 2025 was a year of continued growth for Marex. We delivered another year of record financial performance, with revenue of over $2 billion.

Ian Lowitt: Good morning, welcome to our Q4 and full year 2025 Earnings Call. 2025 was a year of continued growth for Marex. We delivered another year of record financial performance with revenue of over $2 billion. Over the past five years, we have increased profitability sevenfold, from $61 million in 2020 to $418 million in 2025. We have done this by broadening our product offering across our four interconnected services, expanding geographically, and combining organic growth with targeted M&A. Acquiring, integrating, and scaling businesses is embedded in the DNA of Marex, enabling us to add clients and deepen relationships across products, asset classes, and geographies. Our platform and organization are difficult to replicate, increasing further the high barriers to entry that we benefit from in our industry.

Speaker #3: Over the past five years, we have increased profitability sevenfold, from $61 million in 2020 to $418 million in 2025. We have done this by broadening our product offering across our four interconnected services, expanding geographically, and combining organic growth with targeted M&A.

Speaker #3: Acquiring integrating and scaling businesses is embedded in the DNA of Marex. Enabling us to add clients and deepen relationships across products, asset classes, and geographies.

Speaker #3: Our platform and organization are difficult to replicate. Increasing further the high barriers to entry that we benefit from in our industry. The results we are reporting today demonstrate that our strategy is effective, and continues to deliver value for our shareholders.

Ian Lowitt: The results we are reporting today demonstrate that our strategy is effective and continues to deliver value for our shareholders. On slide 4, you see that we closed the year with record profitability in Q4. Revenues grew 38% from $416 million to $572 million. Adjusted profit before tax increased 41% to $115 million. We grew EPS by 50% to $1.14 per share. Pleasingly, this performance was not driven by an idiosyncratic market event, but by broad-based strength across the firm. Full year revenue grew 27% from $1.6 billion to just over $2 billion, and adjusted PBT increased 30% to $418 million.

Speaker #3: On slide 4, you see that we closed the year with record profitability in the fourth quarter. Revenues grew 38% from $416 million to $572 million, and adjusted profit before tax increased 41% to $115 million.

Speaker #3: We grew EPS by 50% to $1.14 per share. Pleasingly, this performance was not driven by an idiosyncratic market event, but by broad-based strength across the firm.

Speaker #3: Full-year revenue grew 27%, from $1.6 billion to just over $2 billion, and adjusted PBT increased 30% to $418 million. Profit after tax increased at a faster rate, benefiting from an improved effective tax rate, which declined from 26% to 25%, reflecting our evolving geographic mix.

Ian Lowitt: Profit after tax increased at a faster rate, benefiting from an improved effective tax rate, which declined from 26% to 25%, reflecting our evolving geographic mix. Full year EPS grew 39% to $4.12. We experienced growth across all our segments with continued strength and client balance growth in clearing, strong performance in agency and execution, driven in particular by Prime, which I'll come back to, as well as good momentum in market making, hedging, and investment solutions. In clearing, average customer balances increased over the year by 18% to $14 billion in the Q4, with balances growing steadily quarter by quarter. We continue to execute our M&A strategy, strengthening earnings through disciplined integration and development of recent acquisitions.

Speaker #3: Full year EPS grew 39% to $4.12. We experienced growth across all our segments, with continued strength and client balance growth and clearing, strong performance in agency and execution, driven in particular by Prime, which I'll come back to, as well as good momentum in market making and hedging and investment solutions.

Speaker #3: In clearing, average customer balances increased over the year by 18% to $14 billion in the fourth quarter, with balances growing steadily quarter by quarter.

Speaker #3: We continue to execute our M&A strategy, strengthening earnings through disciplined integration and development of recent acquisitions. We have developed a repeatable model for identifying complementary assets, acquiring them at attractive prices, integrating them efficiently, and enhancing their earnings power as part of the Marex platform.

Ian Lowitt: We have developed a repeatable model for identifying complementary assets, acquiring them at attractive prices, integrating them efficiently, and enhancing their earnings power as part of the Marex platform. That capability continues to be a sustainable competitive advantage for the firm. We are very selective in the opportunities we pursue and maintain high conviction in our ability to meet our return objectives and grow acquisitions once integrated. This is evidenced by the acquisitions we completed during the year, which are delivering in line with or ahead of expectations. Aarna provided an opportunity to establish a clearing presence in the Middle East. The day one synergies we identified, which increased profitability by around 50%, were realized as expected. Hamilton Court provides us with access to a number of UK and EU corporates that we did not serve previously. It expands our client base and creates meaningful cross-sell opportunities.

Speaker #3: That capability continues to be a sustainable competitive advantage for the firm. We are very selective in the opportunities we pursue, and maintain high conviction in our ability to meet our return objectives and grow acquisitions once integrated.

Speaker #3: This is evidenced by the acquisitions we completed during the year, which are delivering in line with or ahead of expectations. Arna provided an opportunity to establish a clearing presence in the Middle East.

Speaker #3: The day-one synergies we identified, which increased profitability by around 50%, were realized as expected. Hamilton Court provides us with access to a number of UK and EU corporates that we did not serve previously.

Speaker #3: It expands our client base and creates meaningful cross-sell opportunities. Winter Flood, which we completed in December, has started strongly, and enhances our UK equity market making franchise while creating cross-sell opportunities with leading UK participants.

Ian Lowitt: Winterflood, which we completed in December, has started strongly. enhances our UK equity market making franchise while creating cross-sell opportunities with leading UK participants. Following the subsequent sale of Winterflood's custody business, which we expect to complete in Q2, we will have acquired Winterflood at a meaningful discount to tangible book value. A transaction that we believe will generate substantial long-term value for our shareholders. Alongside M&A, we continue to execute a number of organic growth initiatives, including digital assets within clearing, expanding our footprint in Asia, the Middle East, and Brazil, and growing our prime brokerage and FX capabilities. A meaningful contributor to the diversification of the firm, and an example of how we scale businesses once integrated into our platform, is Prime Services. We acquired Prime in December 2023 for approximately $25 million of premium.

Speaker #3: Following the subsequent sale of Winterflood's custody business, which we expect to complete in Q2, we will have acquired Winterflood at a meaningful discount.

Speaker #3: Tangible book value, a transaction that we believe will generate substantial long-term value for our shareholders. Alongside M&A, we continue to execute a number of organic growth initiatives, including digital assets within clearing, expanding our footprint in Asia, the Middle East, and Brazil, and growing our Prime brokerage and FX capabilities.

Speaker #3: A meaningful contributor to the diversification of the firm and an example of how we scale businesses once integrated into our platform is Prime Services.

Speaker #3: We acquired Prime in December 2023 for approximately $25 million of premium. In 2025, it generated over $250 million of revenue and now accounts for around a quarter of the group's profitability.

Ian Lowitt: In 2025, it generated over $250 million of revenue and now accounts for around a quarter of the group's profitability. Prime also adds diversification to our earnings profile, broadening our revenue drivers beyond traditional exchange volume-linked activity. As the breadth of our platform expands, we're increasingly scaling relationships with larger, more sophisticated clients, something I'll touch on in more detail shortly. On slide 5, you can see the consistent improvement in our key financial metrics, revenue, profitability, earnings per share, and return on equity. Beyond the headline growth, what is particularly encouraging is the quality of that growth. Full-year revenues increased 27% to over $2 billion. Adjusted profit before tax grew faster than revenues, up 30% for the year. EPS increased 39%, reflecting the improved tax rate.

Speaker #3: Prime also adds diversification to our earnings profile, broadening our revenue drivers beyond traditional exchange volume-linked activity. Finally, as the breadth of our platform expands, we're increasingly scaling relationships with larger, more sophisticated clients—something I'll touch on in more detail shortly.

Speaker #3: On slide 5, you can see the consistent improvement in our key financial metrics: revenue, profitability, earnings per share, and return on equity. Beyond the headline growth, what is particularly encouraging is the quality of that growth.

Speaker #3: Full year revenues increased 27% to over $2 billion, adjusted profit before tax grew faster than revenues, up 30% for the year, and EPS increased 39%, reflecting the improved tax rate.

Speaker #3: Reported return on equity improved to 27.6%, underscoring the capital efficiency of the model and pre-tax margins were 21%. Looking now at the operating environment in more detail, on slide 6.

Ian Lowitt: Reported return on equity improved to 27.6%, underscoring the capital efficiency of the model, and pre-tax margins were 21%. Looking now at the operating environment in more detail on Slide 6. As we step back and look at the operating environment during the year, it is clear that on the whole, we have enjoyed a supportive backdrop for our services. The spike in volatility in April was notable at the start of Q2. While April was a strong month, it was not outsized in the context of the full year. We continued to deliver strong growth even as volumes and volatility reduced from April's peak, including through the seasonally quiet Q3 and amid the impact of the short report. We also absorbed the impact of lower interest rates in clearing as we grew our client balances, which Rob will cover in more detail.

Speaker #3: As we step back and look at the operating environment during the year, it is clear that on the whole, we have enjoyed a supportive backdrop for our notable at the start of the second quarter.

Speaker #3: While April was a strong month, it was not outsized in the context of the full year. We continue to deliver strong volatility reduced from April's peak, including through the seasonally quiet third quarter, and amid the impact of the short report.

Speaker #3: We also observed the impact of lower interest rates in clearing, as we grew our client balances, which Rubble will cover in more detail. In increased, up 5% year on year and 8% higher than the third quarter, while volatility also picked up modestly.

Ian Lowitt: In Q4, exchange volumes increased, up 5% year-on-year and 8% higher than Q3, while volatility also picked up modestly. Equity markets being at or around all-time highs in Q4 helped our prime business, which is a function of customer balances and spreads. It also, to some extent, supports solutions where we tend to see higher client activity in structured products when markets are rising. In this context, our Q4 profits were up 41% year-on-year and up 14% compared to Q3, and also above our prior record in Q2. This demonstrates that we are growing faster than underlying market volumes, and that we have set up the firm to deliver growth through a variety of environments. I'll now hand over to Rob, who will take you through the financials in more detail.

Speaker #3: All-time highs in Q4 tend to see higher client activity in structured products when markets are rising. In this context, our fourth quarter profits were up 41% year-on-year. This, to some extent, supports solutions, where we outperformed the third quarter, and also came in above our prior record in Q2.

Speaker #3: This demonstrates that we are growing faster than underlying market volumes, and that we have set up the firm to deliver growth through a variety of environments.

Speaker #3: I'll now hand over to Rob, who will take you through the financials in more detail. Thanks, Ian, and good morning, everyone. I'll take you through our financial performance for the full year and the fourth quarter, following the same structure as usual.

Rob Irvin: Thanks, Ian. Good morning, everyone. I'll take you through our financial performance for the full year and Q4, following the same structure as usual. For the full year, we grew revenue by 27% to $2.02 billion, with growth across all our business segments. Total expenses increased by 24%, reflecting the higher revenues as well as ongoing investment to support growth and acquisitions during the year. Adjusted PBT margin expanded by 60 basis points to 20.7%, delivering a 30% growth in adjusted PBT to $418 million. The affected tax rate for the full year decreased from 26% to 25%, reflecting mainly the geographical mix of our earnings. This is an excellent result for the year, capped off by Q4, which was the strongest quarter in our history.

Speaker #3: For the full year, we grew revenue by 27% to $2.02 billion, with growth across all our business segments. Total expenses increased by 24%, reflecting the higher revenues as well as ongoing investment to support growth and acquisitions during the year.

Speaker #3: Adjusted PBT margin expanded by 60 basis points to 20.7%, delivering a 30% growth in adjusted PBT to $418 million. The affected tax rate for the full year decreased from 26% to 25%, reflecting mainly the geographical mix of our earnings.

Speaker #3: This is an excellent result for the year, capped off by the fourth quarter, which was the strongest quarter in our history. Q4 revenue of $572 million was up 38% versus last year, while total expenses grew 36%, broadly in line with revenues driven by higher compensation costs and ongoing investments to support growth.

Rob Irvin: Q4 revenue of $572 million was up 38% versus last year, while total expenses grew 36%, broadly in line with revenues driven by higher compensation costs and ongoing investments to support growth. Adjusted profit before tax increased 41% to $115 million as margins increased 50 basis points to 20.1%. Our adjusted return on equity remained very strong at 30.8%, and we grew basic EPS to $1.14 per share, up 50% year-on-year. Focusing now on our segmental performance, starting with clearing. In Q4, clearing revenue increased 10% to $137 million. This was driven by growth across all revenue lines, higher volumes, and continued momentum in client onboarding, particularly large institutional client wins during 2025.

Speaker #3: Adjusted profit before tax increased 41% to $115 million, as margins increased 50 basis points to 20.1%. Our adjusted return on equity remained very strong at 30.8%, and we grew basic EPS to $1.14 per share, up 50% year on year.

Speaker #3: Focusing now on our segmental performance, starting with Clearing. In the fourth quarter, Clearing revenue increased 10% to $137 million. This was driven by growth across all revenue lines, higher volumes, and continued momentum in client onboarding, particularly large institutional client wins during 2025.

Speaker #3: Average clearing balances increased to $14 billion, from $11.9 billion in the fourth quarter of last year, reflecting the contribution from ARNA and new client wins.

Rob Irvin: Average clearing balances increased to $14 billion from $11.9 billion in Q4 of last year, reflecting the contribution from Aarna and new client wins. Net commission income increased 6%, reflecting higher client activity, as well as our broadened product offerings across regions. Net interest income was stable at $59 million. The durability of clearing NII, even as rates have declined, shows how well this business is positioned as growth in client balances offset these rate pressures. Adjusted profit before tax for Q4 increased to $67 million with margins at 49%. For the full year, clearing revenue increased 13% to $528 million, with sustained growth in client balances, new client wins, and an expanded product offering.

Speaker #3: Net commission income increased 6%, reflecting higher client activity as well as our broadened product offerings across regions. Net interest income was stable at $59 million, with durability of clearing NII even as rates declined, shows how well this business is positioned as growth in client balances offset these rate pressures.

Speaker #3: Adjusted profit before tax for the quarter increased to $67 million, with margins at 49%. For the full year, clearing revenue increased 13% to $528 million.

Speaker #3: With sustained growth in client balances, new client wins, and an expanded product offering. Adjusted profit before tax increased to $262 million, with margins at 50%, reflecting disciplined investment to support growth.

Rob Irvin: Adjusted profit before tax increased to $262 million, with margins at 50%, reflecting disciplined investment to support growth. Overall, the Q4 capped a year of sustained momentum in clearing, with strong client acquisition, higher balances, and disciplined investment, positioning us well going into 2026. Turning now to agency and execution. This quarter, we're providing a more granular breakdown of performance across the asset classes to reflect the continued expansion and diversification of the platform. The Q4 was another strong period, with revenue increasing 51% to $290 million. This was driven primarily by strong growth in securities, reflecting the continued strategic expansion of Prime, alongside more modest growth in energy. Securities revenues increased to $209 million, reflecting broad-based growth across the platform, with all major asset classes contributing.

Speaker #3: Overall, the fourth quarter capped a year of sustained momentum in clearing, with strong client acquisition, higher balances, and disciplined investment, positioning us well going into 2026.

Speaker #3: Turning now to agency and execution. This quarter, we're providing a more granular breakdown of performance across the asset classes to reflect the continued expansion and diversification of the platform.

Speaker #3: The fourth quarter was another strong period, with revenue increasing 51% to $290 million. This was driven primarily by strong growth in securities, reflecting the continued strategic expansion of Prime, alongside more modest growth in energy.

Speaker #3: Securities revenues increased to $209 million, reflecting broad-based growth across the platform, with all major asset classes contributing. Prime was again a standout performer, with revenue increasing to $87 million, supported by a significant increase in clients on our platform and continued expansion of our securities-based swaps offering.

Rob Irvin: Prime was again a standout performer, with revenue increasing to $87 million, supported by a significant increase in clients on our platform and continued expansion of our security-based swaps offering. FX also performed strongly, benefiting from the integration of Hamilton Corp, which completed in July, and growth across the broader FX platform. In energy, revenue increased to $76 million, driven by higher activity in UK and European gas and power markets and continued capability expansion. Adjusted profit before tax increased to $89 million in the quarter, with margins expanding to 31%, reflecting growth in higher margin activities, particularly Prime. For the full year, agency and execution revenue increased to $1.05 billion, with strong contributions from both securities and energy.

Speaker #3: FX also performed strongly, benefiting from the integration of Hamilton Corp, which completed in July, and growth across the broader FX platform. In energy, revenue increased to $76 million, driven by higher activity in UK and European gas and power markets, and continued capability expansion.

Speaker #3: Adjusted profit before tax increased to $89 million, in the quarter, with margins expanding to 31%, reflecting growth in higher margin activities, particularly Prime. For the full year, agency and execution revenue increased to $1.05 billion, with strong contributions from both securities and energy.

Speaker #3: Adjusted profit before tax increased to $281 million, reflecting the continued build-out of a more diversified, high-quality platform, with Prime central to that transformation. The structural improvements we made are now clearly visible in the margin profile of the business, which expanded to 27%.

Rob Irvin: Adjusted profit before tax increased to $281 million, reflecting the continued build-out of a more diversified, high-quality platform with Prime central to that transformation. The structural improvements we made are now clearly visible in the margin profile of the business, which expanded to 27%. Turning now to market making. Q4 revenue grew 83% to $81 million, driven by particularly strong performance in metals and securities, partly offset by softer conditions in agriculture and energy. Metals delivered the second-best quarter on record, with revenue increasing to $50 million. While supportive market conditions and high volatility provided a favorable backdrop, performance was driven by increased client activity across both precious and base metals. Securities revenue increased to $20 million, reflecting the inclusion of Winterflood following the completion in December, alongside improved performance from our FX and credit desks.

Speaker #3: Turning now to market making, fourth quarter revenue grew 83% to $81 million. Driven by particularly strong performance in metals and securities, partly offset by softer conditions in agriculture and energy.

Speaker #3: Metals delivered the second-best quarter on record, with revenue increasing to $50 million. While supported market conditions and high volatility provided a favorable backdrop, performance was driven by increased client activity across both precious and base metals.

Speaker #3: Securities revenue increased to $20 million, reflecting the inclusion of Winterflood following the completion in December, alongside improved performance from our FX and credit desks.

Speaker #3: In energy, revenue was lower year on year, as the prior period benefited from elevated volatility, and large client flows, whereas the fourth quarter in 2025 saw more muted hedging activity.

Rob Irvin: In energy, revenue was lower year-over-year as the prior period benefited from elevated volatility and large client flows. The Q4 in 2025 saw more muted hedging activity. Agriculture also moderated year-over-year, reflecting a more challenging macro backdrop and elevated commodity prices. Although performance improved sequentially from the Q3 as conditions stabilized. Adjusted profit before tax increased to $27 million, with margins expanding to 33% as strong revenue growth more than offset higher front office compensation and the additional headcount following the Winterflood acquisition. For the full year, revenue increased to $236 million, driven primarily by strong performance in both metals and securities, which more than offset softer conditions in agriculture.

Speaker #3: Agriculture also moderated year on year, reflecting a more challenging macro backdrop and elevated commodity prices. Although performance improved sequentially from the third quarter, as conditions stabilized.

Speaker #3: Adjusted profit before tax increased to $27 million, with margins expanding to 33%, a strong revenue growth more than offset higher front office compensation and the additional headcount following the winter flood acquisition.

Speaker #3: For the full year, revenue increased to $236 million, driven primarily by strong performance in both metals and securities, which more than offset softer conditions in agriculture.

Speaker #3: Adjusted profit before tax increased to $69 million, with margins at 29%, reflecting investment through the year and the mix of revenues across the platform.

Rob Irvin: Adjusted profit before tax increased to $69 million, with margins at 29%, reflecting investment through the year and the mix of revenues across the platform. Finally, Solutions, which had its strongest quarter on record in Q4. Revenue increased by 57% to $63 million, reflecting growth across both financial products and hedging solutions. Hedging solutions revenue increased to $23 million, supported by institutional client wins and higher activity in energy and FX, more than offsetting softer agricultural markets. Financial products revenue increased to $40 million, reflecting continued strength in structured products. Performance was supported by improved market conditions, expanded exchange access and regional expansion, particularly in Asia. The rollout of our new technology platform also supported higher issuance volumes and broader product accessibility. Adjusted profit before tax increased to $14 million, with margins improving to 23% despite continued investment in technology and headcount.

Speaker #3: Finally, Solutions had its strongest quarter on record in Q4. Revenue increased by 57% to $63 million, reflecting growth across both financial products and hedging solutions.

Speaker #3: Hedging solutions revenue increased to $23 million, supported by institutional client wins and higher activity in energy and FX, more than offsetting softer agricultural markets.

Speaker #3: Financial products revenue increased to $40 million, reflecting continued strength in structured products. Performance was supported by improved market conditions, expanded exchange access, and regional expansion, particularly in Asia.

Speaker #3: The rollout of our new technology platform also supported higher issuance volumes and broader product accessibility. Adjusted profit before tax increased to $14 million, with margins improving to $23% despite continued investment in technology and headcount.

Speaker #3: For the full year, revenue increased to $197 million, reflecting sustained growth across both businesses. Adjusted profit before tax increased to $44 million, with margins at 22%, reflecting our investment to support long-term scalability.

Rob Irvin: For the full year, revenue increased to $197 million, reflecting sustained growth across both businesses. Adjusted profit before tax increased to $44 million with margins at 22%, reflecting our investment to support long-term scalability. Turning now to net interest income at the group level. For the full year, NII was $153 million compared to $227 million in the prior year. Interest income increased 4% year-on-year as $4.8 billion increase in average balance is more than offset 100 basis points decline in rates. However, interest expense increased 21%, reflecting $1.5 billion of additional average structured note balance and senior debt issuance, which more than offset the increase in interest income.

Speaker #3: Turning now to net interest income at the group level. For the full year, NII was $153 million, compared to $227 million in the prior year.

Speaker #3: Interest income increased 4% year on year, as 4.8 billion increase in average balances more than offset 100 basis points decline in rates. However, interest expense increased 21%, reflecting 1.5 billion of additional average structured note balance and senior debt issuance, which more than offset the increase in interest income.

Speaker #3: NII for Q4 was $26 million, down $13 million compared to Q3, 2025, primarily reflecting the further 40 basis points decline in the average Fed funds rate during the quarter.

Rob Irvin: NII for Q4 was $26 million, down $13 million compared to Q3 2025, primarily reflecting the further 40 basis point decline in the average fed funds rate during Q4. Interest income was $181 million as lower rates offset growth in average balances. Interest expense is broadly flat, with the decrease in rates being broadly offset by higher structured notes balance. Throughout Q4, we continued to hold significant liquidity headroom. While this creates a modest near-term headroom to group NII, it is a deliberate choice that strengthens the balance sheet and positions us to support clients and pursue future growth opportunities. Importantly, as we highlighted in the clearing segment, clearing NII remains resilient. Average clearing balances increased to $14 billion in Q4, that growth has continued to broadly offset the impact of lower rates.

Speaker #3: Interest income was $181 million, as lower rates offset growth in average balances. Interest expense has broadly flat, with the decrease in rates being broadly offset by higher structured note balance.

Speaker #3: Throughout the quarter, we continued to hold significant liquidity headroom, while this creates a modest near-term headroom to group NII, it has a deliberate choice at strengthening the balance sheet and positions us to support clients and pursue future growth opportunities.

Speaker #3: Importantly, as we highlighted in the clearing segment, clearing NII remains resilient, average clearing balances increased to $14 billion, in the fourth quarter, and that growth has continued to broadly offset the impact of lower rates.

Speaker #3: I'll briefly touch on expenses as it's important to understand how our cost base evolves as we grow. As I've said before, our cost base is highly flexible, with around 55% of total expenses in Q4 variable in nature, which are linked to the performance of the group.

Rob Irvin: I'll briefly touch on expenses as it's important to understand how our cost base evolves as we grow. As I've said before, our cost base is highly flexible with around 55% of total expenses in Q4 variable in nature, which are linked to the performance of the group. In the front office, variable expenses primarily flex with revenues, while back office variable expenses flex with the overall profitability of the group. Given the strong revenue performance year-over-year, $54 million of the increase in total expenses was driven by higher variable compensation, which included variable compensation for recently completed acquisitions. A further $18 million related to the fixed costs associated with the recently completed acquisitions. These acquisition-related costs are not the one-off transaction expenses, but the continuing operating costs of growing these business, which generate revenue and drive overall profitability.

Speaker #3: In the front office, variable expenses primarily flex with revenues, while back office variable expenses flex with the overall profitability of the group. Given the strong revenue performance year over year, $54 million of the increase in total expenses was driven by higher variable compensation, which included variable compensation for recently completed acquisitions.

Speaker #3: A further $18 million related to the fixed costs associated with the recently completed acquisitions. These acquisition-related costs are not the one-off transaction expenses, but the continuing operating costs of growing these businesses, which generate revenue and drive overall profitability.

Speaker #3: And an additional $50 million to support the future organic growth of the organization and investment in control and support, notably technology. These investment decisions are deliberate choices we have made to support the future growth of the organization.

Rob Irvin: An additional $50 million to support the future organic growth of the organization and investment in control and support, notably technology. These investment decisions are deliberate choices we have made to support the future growth of the organization. Looking now at our balance sheet. As a reminder, approximately 80% of our balance sheet supports client activity and consists of high-quality liquid assets. Total assets increased to $35 million at the end of December, driven by growth in clearing client balances and securities activity, including prime. After netting client assets and liabilities, the remaining residual balance sheet primarily comprises of corporate cash and other assets against group liabilities, including our structured notes portfolio and senior notes issuance. Turning now to capital and liquidity. We continue to manage capital and liquidity prudently, maintaining substantial headroom above regulatory requirements to ensure resilience across market environments.

Speaker #3: Looking now at our balance sheet, as a reminder, approximately 80% of our balance sheet supports client activity and consists of high-quality liquid assets. Total assets increased to $35 million at the end of December, driven by growth in clearing client balances and securities activity, including Prime.

Speaker #3: After netting client assets and liabilities, the remaining residual balance sheet primarily comprises corporate cash and other assets against group liabilities, including our structured notes portfolio and senior note issuance.

Speaker #3: Turning now to capital and liquidity. We continue to manage capital and liquidity prudently, maintaining substantial headroom above regulatory requirements to ensure resilience across market environments.

Speaker #3: A year-end 2025 regulatory capital was $927 million, against a requirement of $403 million, representing a capital ratio of 230%. This provides a substantial buffer and supports our investment-grade credit ratings.

Rob Irvin: At year-end 2025, regulatory capital was $927 million against a requirement of $403 million, representing a capital ratio of 230%. This provides a substantial buffer and supports our investment-grade credit ratings. Total corporate funding increased to $6.2 billion, up from $3.8 billion at year-end 2024, primarily reflecting structured notes issuance and a senior debt issuance of $500 million during the year. We maintained approximately $1 billion of liquidity headroom at year-end. In line with the growth of the business, we have increased our liquidity stress testing limit and associated buffers to ensure we remain well-positioned to support higher client volumes while maintaining a conservative risk profile.

Speaker #3: Total corporate funding increased to $6.2 billion, up from $3.8 billion at year-end 2024, primarily reflecting structured notes issuance and a senior debt issuance of $500 million during the year.

Speaker #3: We maintained approximately $1 billion of liquidity headroom at year-end. In line with the growth of the business, we have increased our liquidity stress testing limits and associated buffers to ensure we remain well positioned to support higher client volumes while maintaining a conservative risk profile.

Speaker #3: While carrying excess liquidity creates a modest drag on net interest income, maintaining substantial headroom remains a deliberate and conservative choice that strengthens the balance sheet and ensures we're well positioned to support market volatility.

Rob Irvin: While carrying excess liquidity creates a modest drag on net interest income, maintaining substantial headroom remains a deliberate and conservative choice that strengthens the balance sheet and ensures we're well-positioned to support all clients and navigate periods of market volatility. Overall, our capital and liquidity framework remains robust, scalable, and aligned with our growth ambitions. Finally, we announced again a quarterly dividend of $0.15 per share for Q4 2025 to be paid to shareholders on 31 March this year. Finally, we have a proactive and involved risk management approach at Marex. In market making, we're a client flow-driven business and do not take a directional view on prices. However, we do carry a small level of inventory to source client demand and capture the trading spreads.

Speaker #3: Overall, our capital and liquidity framework remains robust, scalable, and aligned with our growth ambitions. Finally, we announced again a quarterly dividend of $0.15 per share for the fourth quarter of 2025, to be paid to shareholders on the 31st of March this year.

Speaker #3: Finally, we have a approach at Marex. In market making, we're a client flow-driven business and do not take a directional view on prices. However, we do carry a small level of inventory to source client demand and capture the trading spreads.

Speaker #3: Average daily VAR was 3.8 million for the full year, and remains at a very low level relative to the growth in the overall business.

Rob Irvin: Average daily bar was $3.8 million for the full year and remains at a very low level relative to the growth in the overall business. In terms of credit risk, we had a realized credit loss of $800,000, representing less than 0.1% of revenues. Now I'll hand you back to Ian.

Speaker #3: In terms of credit risk, we had a realized credit loss of $800,000, representing less than 0.1% of revenues. Now I'll hand you back to Ian.

Speaker #1: Thanks, Rob. Let me spend a moment on clients, because this is the critical component of the Marex growth story. As our platform has expanded, particularly since we went public, we are increasingly having success with larger and more sophisticated clients.

Ian Lowitt: Thanks, Rob. Let me spend a moment on clients, because this is the critical component of the Marex growth story. As our platform has expanded, particularly since we went public, we are increasingly having success with larger and more sophisticated clients. You can see on slide 19 that while active clients, which we now define as those generating over $25,000 in annual revenue, grew 19% year-on-year, revenues grew 32%, and average revenue per client increased 11%. Consistent with my commentary throughout the year, that growth is particularly evident amongst our largest clients. Our $5 million-plus client cohort increased by 36%, and revenue from that segment grew by over 80%, with average revenue per client up 35%.

Speaker #1: You can see on slide 19 that while active clients, which we now define as those generating over 25,000 in annual revenue, grew 19% year on year, revenues grew 32%, and average revenue per client increased 11%.

Speaker #1: Consistent with my commentary throughout the year, that growth is particularly evident amongst our largest clients. Our $5 million-plus client cohort increased by 36%, and revenue from that segment grew by over 80%, with average revenue per client up 35%.

Speaker #1: Today, those top circa 50 clients generate on average $14 million annually, versus $10 million last year, and drove over $300 million of our revenue growth in 2025.

Ian Lowitt: Today, those top circa 50 clients generate on average $14 million annually versus $10 million last year, and drove over $300 million of our revenue growth in 2025. Importantly, this does not mean we are becoming overly concentrated. The top cohort represents around 1/3 of firm revenue, but we remain diversified across more than 3,400 active clients, and no single counterparty represents undue exposure. We included slide 20 at last year's Investor Day and again at the half-year results. We think it is a helpful way to demonstrate the quality and reliability of our earnings. On the left-hand side of the chart, we show the consistent year-on-year growth in our average monthly PBT and the relatively low variability in the distribution, driving an extremely high Sharpe ratio of 6.2 for the full year 2025.

Speaker #1: Importantly, this does not mean we are becoming overly concentrated. The top cohort represents around a third of firm revenue, but we remain diversified across more than 3,400 active clients, and no single counterparty represents undue exposure.

Speaker #1: We included slide 20 at last year's Investor Day, and again at the half-year results. We think it is a helpful way to demonstrate the quality and reliability of our earnings.

Speaker #1: On the left-hand side of the chart, we show the consistent year-on-year growth in our average monthly PBT and the relatively low variability in the distribution, driving an extremely high sharp ratio of 6.2 for the full year 2025.

Speaker #1: This shows that our profitability is not driven by a few exceptional months. It is stable and in a narrow band, demonstrating high-quality earnings. On the right of the chart, we show the distribution of our daily profitability for the full year versus last year.

Ian Lowitt: This shows that our profitability is not driven by a few exceptional months. It is stable and in a narrow band demonstrating high-quality earnings. On the right of the chart, we show the distribution of our daily profitability for the full year versus last year. You can see the distribution has shifted to the right by around $400,000 year-over-year from around $1.3 million to $1.7 million. The left tail remains very small, with only six negative days during the year. In the right tail, you can also see how we have successfully captured market opportunities with more above-average profitability days. This is not just successful market making. We are doing more larger transactions with clients as we become more relevant to sophisticated market participants.

Speaker #1: You can see the distribution has shifted to the right by around 400,000 year over year, from around 1.3 million to 1.7 million. The left tail remains very small, with only six negative days during the year.

Speaker #1: In the right tail, you can also see how we have successfully captured market opportunities with more above-average profitability days, this is not just successful market making, we're doing more larger transactions with clients as we become more relevant to sophisticated market participants.

Speaker #1: So in conclusion, at our Investor Day last April, we described our goal of delivering sustainable profit growth with roughly 10% organic and 5 to 10% from selective inorganic opportunities.

Ian Lowitt: In conclusion, at our Investor Day last April, we described our goal of delivering sustainable profit growth with roughly 10% organic and 5% to 10% from selective inorganic opportunities. 2025 performance reinforces our belief in our competitive position and ability to continue to deliver growth. Structural shifts in bank focus, high barriers to entry, the breadth of our capabilities, and the quality of our service creates opportunities for Marex. Our M&A pipeline remains attractive. The opportunity sets continues to expand as our scale and reputation improve, and we are increasingly seeing inbound opportunities. As a result, we are able to be more selective, executing only those transactions where we have high conviction in our ability to enhance returns through integration and scale.

Speaker #1: 2025 performance reinforces our belief in our competitive position and ability to continue to deliver growth. Structural shifts in bank focus, high barriers to entry, the breadth of our capabilities, and the quality of our service creates opportunities for Marex.

Speaker #1: Our M&A pipeline remains attractive. The opportunity sets continues to expand as our scale and reputation improve, and we are increasingly seeing inbound opportunities. As a result, we are able to be more selective, executing only those transactions where we have high conviction in our ability to enhance returns through integration and scale.

Speaker #1: Our digital assets initiatives continue to progress well, as we are seeing growing engagement from clients, coming to us to solve real-world use cases for them.

Ian Lowitt: Our digital assets initiatives continue to progress well as we are seeing growing engagement from clients coming to us to solve real-world use cases for them. We already have 24/7 trading capability in place for our digital assets offering and solutions and plan to extend this imminently to clearing, where we clear crypto futures for clients primarily on CME. This will also give us the ability to support prediction markets at limited additional cost. Towards the end of 2025, we went live as a day one clearer for SGX derivatives launch of digital asset perpetual futures, meeting institutional demand for transparent access to regulated crypto derivatives. And we are actively involved in the CFTC's pilot program for the acceptance of stablecoin and crypto as collateral for futures, and we expect to go live with this at the end of March.

Speaker #1: We already have 24/7 trading capability in place for our digital assets offering and solutions, and plan to extend this imminently to clearing, where we clear crypto futures for clients primarily on CME.

Speaker #1: This will also give us the ability to support prediction markets at limited additional cost. Towards the end of 2025, we went live as a day-one clearer for SGX derivatives launch of digital asset perpetual futures, meeting institutional demand for transparent access to regulated crypto derivatives.

Speaker #1: And we are actively involved in the CFTC's pilot program for the acceptance of stablecoin and crypto as collateral for futures, and we expect to go live with this at the end of March.

Speaker #1: While still early days, we believe these initiatives position us strongly as market structure continues to evolve, and they represent a meaningful long-term opportunity for the firm.

Ian Lowitt: While still early days, we believe these initiatives position us strongly as market structure continues to evolve, and they represent a meaningful long-term opportunity for the firm. Artificial intelligence is clearly a major theme in the markets today, and given how topical it is, I would like to address it. We see AI as an accelerant to our competitive advantages and are already deploying it internally to enhance productivity, improve risk management, and deepen client engagement. As a vertically integrated firm with deep expertise and institutional knowledge of market infrastructure and strong client relationships, we believe our competitive moats are reinforced, not threatened by the technological advancement. Looking ahead, we remain confident in our ability to continue to deliver sustainable growth across a range of market environments. For 11 straight years, we have reported to our board and shareholders that Marex has delivered record profitability.

Speaker #1: Artificial intelligence is clearly a major theme in the markets today, and given our topical it is, I would like to address it. We see AI as an accelerant to our competitive advantages, and are already deploying it internally to enhance productivity, improve risk management, and deepen client engagement.

Speaker #1: As a vertically integrated firm with deep expertise, and institutional knowledge of market infrastructure, and strong client relationships, we believe our competitive moats are reinforced, not threatened, by the technological advancement.

Speaker #1: Looking ahead, we remain confident in our ability to continue to deliver sustainable growth across a range of market environments. For 11 straight years, we have reported to our board and shareholders that Marex has delivered record profitability. We are extremely proud of that track record, and we feel confident in our ability to continue that trajectory in 2026 and beyond.

Ian Lowitt: We are extremely proud of that track record, and we feel confident in our ability to continue that trajectory in 2026 and beyond. We remain committed to disciplined capital allocation, excellent client service, and long-term value creation for shareholders. Finally, you may have seen we announced a second Investor Day on 26 March in New York.

Speaker #1: We remain committed to disciplined capital allocation, excellent client service, and long-term value creation. For shareholders. Finally, you may have seen we announced a second Investor Day on March 26th in New York.

Ian Lowitt: We look forward to seeing as many of you as possible there later this month. With that, I'll hand it back to the operator to open the line for questions.

Speaker #1: We look forward to seeing as many of you as possible there, later this month. With that, I'll hand it back to the operator to open the line for questions.

Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Daniel Fannon with Jefferies. Your line is open. Please go ahead.

Speaker #2: We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

Speaker #2: To withdraw your question, please press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device.

Speaker #2: Please stand by while we compile the Q&A roster. Your first question comes from the line of Dan Fannon with Jefferies. Your line is open.

Speaker #2: Please go ahead.

Daniel Fannon: Thanks. Good morning. Ian, I was hoping you could just talk a little bit more about the current environment, given we're in early March and a lot has changed, not only recently here in the last week or so, but just even year-to-date, given volatility. I was hoping to get an update just in terms of, you know, how clients are behaving, maybe balances or any real changes in the environment that you've seen so far.

Speaker #3: Thanks. Good morning. Ian, I was hoping you could just talk a little bit more about the current environment, given we're in early March, and a lot has changed not only recently here in the last week or so, but just even year to date, given volatility.

Speaker #3: So I was hoping to get an update just in terms of how clients are behaving, maybe balances or any real changes in the environment that you've seen so far.

Ian Lowitt: Hi, Dan. Yeah, look, you know, as you say in your question, you know, it's been a very interesting couple of months. Certainly, you know, it feels like, you know, there's a great deal going on, you know, at the moment. I mean, I think that, you know, there are a series of things that I would regard as, you know, sort of tailwinds for our business and then a series of things that, you know, probably sort of feel more like headwinds. You know, the tailwinds, you know, obviously, you know, increased exchange volumes, which are actually quite a bit higher, you know, this year than they were, last year. You know, volatility has been a lot higher, particularly around commodities.

Speaker #4: Hi, Dan. Yeah, look, as you say in your question, it's been a very interesting couple of months, and certainly it feels like there's a great deal going on at the moment.

Speaker #4: I mean, I think that there are a series of things that I would regard as sort of tailwinds for our business, and then a series of things that probably sort of feel more like headwinds.

Speaker #4: The tailwinds obviously increased exchange volumes, which are actually quite a bit higher this year than they were last year. Volatility has been a lot higher particularly around commodities.

Ian Lowitt: I mean, I think as we've spoken, you know, on this call a few times, you know, when we think about volatility, there's sort of a Goldilocks level of volatility, which is sort of, you know, active volatility, but it's not sort of excessive or too high. I think the volatility that, you know, we've seen in January and we're seeing again, you know, in March, you know, doesn't fall into sort of Goldilocks category. It's, you know, it's pretty high and it, you know, makes a big difference and puts a lot of pressure on clients. You know, I think that it's very active. I think there's a lot of uncertainty in the marketplace. I think that, you know, the demand for our services, you know, is high.

Speaker #4: I mean, I think as we've spoken on this call a few times, when we think about volatility, there's sort of a Goldilocks level of volatility which is sort of active volatility, but it's not sort of excessive or too high.

Speaker #4: I think the volatility that we've seen in January and we're seeing again in March doesn't fall into sort of the Goldilocks category. It's pretty high, and it makes a big difference and puts a lot of pressure on clients.

Speaker #4: So I think that it's very active. I think there's a lot of uncertainty. In the marketplace, I think that the demand for our services is high, and I think that consistent with the message that we had in the prepared remarks, we're very confident with regard to our ability over the course of the full year to deliver growth in the sort of corridor that we previously indicated to the market.

Ian Lowitt: I think that consistent with the message that we had in the prepared remarks, we're very confident with regard to our ability over the course of the full year to deliver growth in the sort of corridor that we previously indicated to the market. Exactly how that sort of plays out through the course of the year is obviously impossible to tell. We feel very good about our business, our business model, our competitive position, and the opportunities ahead of us, given how diversified our business is.

Speaker #4: Exactly how that sort of plays out through the course of the year is obviously sort of possible to tell. But we feel very good about our business.

Speaker #4: Our business model, our competitive position, and the opportunities ahead of us given how diversified our business is.

Daniel Fannon: Understood. Just as a follow-up, I was hoping you could expand on the growth and outlook for the hedging and investment solutions business. Obviously, I think you said a record quarter, really strong Q4 results. Just to get a little bit more underneath that in terms of what's driving that and the sustainability of that as we think about 2026.

Speaker #3: Understood. And then just as a follow-up, I was hoping you could expand on the growth and outlook for the hedging and investment solutions business.

Speaker #3: Obviously, I think you said a record quarter—really strong Q4 results. Just to get a little bit more underneath that in terms of what's driving that, and the sustainability of that as we think about 2026.

Ian Lowitt: Yeah, I mean, I think that, as I think about, all of our businesses in 2026, I have, you know, sort of quite a lot of confidence that all can, you know, continue to grow. I mean, the management in each of those businesses is, you know, sort of ambitious. They all sort of see opportunity. You know, we see ourselves as sort of broad-based and, you know, looking to ensure that, you know, all the elements of the firm are growing. Your question is about, you know, solutions specifically. I think that, you know, what we're seeing there is the impact of sort of global expansion as well as sort of the addition of additional products and then additional penetration of clients. I don't see anything that will undermine that over the long term.

Speaker #4: Yeah. I mean, I think that as I think about all of our businesses in 2026, I have sort of quite a lot of confidence that all can continue to grow.

Speaker #4: I mean, the management in each of those businesses is sort of ambitious. They all sort of see opportunity and we see ourselves as sort of broad-based and looking to ensure that all the elements of the firm are growing.

Speaker #4: Your question is about solutions specifically. And I think that what we're seeing there is the impact of sort of global expansion, as well as the addition of additional products, and then additional penetration of clients.

Speaker #4: And I don't see anything that will undermine that over the long term and I think that we should and expect to see sort of solutions continuing to grow consistent with broadly how the overall firm is expecting to grow.

Ian Lowitt: I think that, you know, we should and expect to see sort of solutions continuing to grow consistent with, you know, broadly how the overall firm is expecting to grow.

Daniel Fannon: Great. Thank you.

Speaker #3: Great. Thank you.

Operator: Your next question comes from the line of William Katz with TD Cowen. Your line is open. Please go ahead.

Speaker #2: Your next question comes from the line of Bill Katz with TD Cohen. Your line is open. Please go ahead.

William Katz: Okay. Thank you. I apologize for any background noise, in transit this afternoon. Thank you very much for your commentary. Ian, I was really keyed in on your commentary around just sort of the growth in some of the larger accounts and not a lot of concentration with that. Could you unpack that a little bit, maybe where you're seeing the greatest rates of growth, either by distribution channel, geography, the segment of the business? I'm sort of curious, what some of the underlying drivers are in the process there.

Speaker #3: Okay. Thank you, and I apologize for any background noise, but it's in transit this afternoon. Thank you very much for your commentary. Ian, I was really keyed in on your commentary around just sort of the growth in some of the larger accounts and not a lot of concentration in that.

Speaker #3: Could you unpack that a little bit? Maybe where you're seeing the greatest rates of growth either by the distribution channels, geography, the segment of the business.

Speaker #3: I'm so curious what some of the underlying drivers are in the process there.

Ian Lowitt: Sure. Well, look, I think that anecdotally, what I've been sharing with people is, you know, sort of client wins that, you know, we've been enjoying with, you know, prominent hedge funds and with, some of the largest and most sophisticated players, you know, in our space. You know, we've had, you know, traditional strengths with commodity producers and consumers. You know, as you're aware, as part of our efforts to diversify the firm, we were looking to expand out, you know, the products that we could offer, you know, sort of leading financial players. I think that what we're seeing now is the sort of fruit of that, and it doesn't feel like it's sort of the end. It feels like it's, you know, it's sort of building momentum.

Speaker #4: Sure. Well, look, I think that anecdotally what I've been sharing with people is sort of client wins that we've been enjoying with prominent hedge funds and with some of the largest and most sophisticated players in our space.

Speaker #4: And we've had traditional strengths with commodity producers and consumers and as you're aware, as part of our efforts to diversify the firm, we were looking to expand out the products that we could offer sort of leading financial players.

Speaker #4: And I think that what we're seeing now is the sort of fruit of that, and it doesn't feel like it's sort of the end.

Speaker #4: It feels like it's sort of building momentum. So who are the people in that $5 million plus sort of category? It's the largest financial players in the world.

Ian Lowitt: You know, who are the people in that $5 million plus sort of category? It's the largest financial players in the world. It's, you know, the largest commodity producers and consumers. I think if there was a geographic focus, it's probably in North America, which again, I think is not surprising, just given the preponderance of, you know, large players, you know, in the US. I think the success we've had sort of growing our US franchise. It's, you know, the growth has been with financial players, you know, sort of banks, hedge funds, large asset managers, more than in any other sort of, you know, product type or client type.

Speaker #4: It's the largest commodity producers and consumers. I think if there was a geographic focus, it's probably in North America, which again I think is not surprising, just given the preponderance of large players.

Speaker #4: In the US, and I think the success we've had sort of growing our US franchise. But it's the growth has been with financial players sort of banks, hedge funds, large asset managers.

Speaker #4: More than in any other sort of product type or, sorry, client type. And those are all clients who are engaging with us across a number of different segments and a number of different desks.

Ian Lowitt: Those are all clients who are engaging with us across, you know, a number of different segments and a number of different desks. You know, part of what's, you know, sort of driving that growth is just sort of the cross-sell so that, you know, those players who are able to engage with us across a lot of products and do so in size are increasingly doing that.

Speaker #4: So part of what's sort of driving that growth is just sort of the cross-sell. So that those players who are able to engage with us across a lot of products and do so in size are increasingly doing that.

William Katz: Great. Thank you. Just as a follow-up, I very intrigued by the digital opportunity, the stablecoin, crypto, what have you. A lot of debate just in terms of the impact of tokenization just on the ecosystem at large. I was wondering if you could maybe break down where you sort of see the opportunities for tokenization at the front. Maybe that's already on sort of expanded trading activity, but maybe post-trade, how we should think about the durability of the business to the extent that tokenization continues to sort of mature and season into the market structure system. Thank you.

Speaker #3: Great. Thank you. Just as a follow-up, I very intrigued by the digital opportunity to stablecoin crypto, what have you. A lot of debate just in terms of the impact of tokenization just on the ecosystem at large.

Speaker #3: I was wondering if you could maybe break down where you sort of see the opportunities for tokenization at the front. Maybe that's already on sort of expanded trading activity.

Speaker #3: But maybe post-trade, how we should think about the durability of the business to the extent that tokenization continues to sort of mature and season into the market structure system.

Speaker #3: Thank you.

Ian Lowitt: Sure. I mean, look, I think that, I mean, what we're focused on is what I think we described last quarter as, you know, a digital prime brokerage offering. You know, what we're very keen to be able to support, you know, for clients is, you know, our ability to take sort of Digital Assets as collateral with all the things that sort of go with that to ensure that that's sort of viable and supported. There's a lot of work that sort of goes into that, and that's really been our focus more than around, you know, what our view is with regard to the long-term sort of prospects of tokenization. I think, you know, my expectation of this is that there will be, you know, sort of weekend trading.

Speaker #4: Sure. I mean, look, I think that—I mean, what we're focused on is what I think we described last quarter as our digital prime brokerage offering.

Speaker #4: What we're very keen to be able to support for clients is our ability to take sort of digital assets as collateral, with all the things that sort of go with that, to ensure that that's sort of viable and supported.

Speaker #4: And there's a lot of work that sort of goes into that, and that's really been our focus, more than around what our view is with regard to the long-term sort of prospects of tokenization.

Speaker #4: I think my expectation of this is that there will be sort of weekend trading. I think it will be done in sort of tokenized form.

Ian Lowitt: I think it will be done in sort of, you know, tokenized form. I think it will just live alongside the exchanges for some period of time, you know, maybe forever. It won't sort of replace it. It'll just sort of exist as, you know, a separate world, you know, meeting very specific requirements of a, of a specific set of, you know, of investors. You know, how tokenization moves, you know, into post-trade, you know, I don't really have a specific perspective, and we're not, you know, sort of currently investing in that. I think that, you know, if that does turn out to be, you know, more relevant, you know, I think we'll be in a position to take advantage of it.

Speaker #4: I think it will just live alongside the exchanges for some period of time. Maybe forever. And it won't sort of replace it. It'll just sort of exist as a separate world, meeting very specific requirements of a specific set of investors.

Speaker #4: How tokenization moves into post-trade? I don't really have a specific perspective and we're not sort of currently investing in that. But I think that if that does turn out to be more relevant, I think we'll be in a position to take advantage of it.

Ian Lowitt: Really the emphasis at the moment is being able to create some products for clients, which are more around being able to take, you know, digital assets as, you know, as collateral. What I would add to the answer though is we've certainly seen, with some of the sort of digital asset products that we've been involved with, the ability to collect margin real time, and in particular over the weekends, is really a very attractive feature in terms of risk mitigation. You know, as I sort of think about, you know, the impact on clearing as a sort of general matter, the ability to get collateral or, you know, sort of get payment, you know, 24/7, I think is actually a really attractive risk mitigant. I don't know if you have anything to add to that, Philip.

Speaker #4: But really, the emphasis at the moment is being able to create some products for clients, which are more around being able to take digital assets as collateral.

Speaker #4: What I would add to the answer, though, is we certainly seen with some of the sort of digital asset products that we've been involved with, the ability to collect margin real-time and in particular over the weekend is really a very attractive feature in terms of risk mitigation.

Speaker #4: And so, as I sort of think about the impact on clearing as a general matter, the ability to get collateral or get payment 24/7 I think is actually a really attractive risk mitigant.

Speaker #4: I don't know if you've had anything to add to that, Charlotte.

Paolo Tonucci: Yeah. I mean, just a couple of points. It's a good question, Bill. I think, you know, just to extend, you know, Ian's point on where we're focusing. You know, the key components of both the clearing and the Prime offering, one is more futures oriented and the other is more securities oriented, is that we can receive the collateral and recognize the collateral, which I think there's been, you know, significant progress, you know, both with the exchanges and on the regulatory side. That we can provide a combined sort of margining on a risk basis, which includes the sort of activities, the risks, and the collateral. That we can provide all of the reporting and the reconciliations. I think that, you know, in each of those dimensions, we've made significant progress.

Speaker #5: Yeah. I mean, just a couple of points. But it's a good question, Phil. I think just to extend Ian's points on where we're focusing, the key components of both the clearing and the prime offering, one is more futures-oriented and the other is more securities-oriented, is that we can receive the collateral and recognize the collateral, which I think there's been significant progress both with the exchanges and on the regulatory side.

Speaker #5: That we can provide a combined sort of margining on a risk basis, which includes the sort of activities, the risks, and the collateral. That we can provide all of the reporting and the reconciliations.

Speaker #5: And I think that in each of those dimensions, we've made significant progress. We have applied for a license which will allow for the conversion of for us to provide the conversion between crypto and fiat currencies and we hope that that will come through in the next few weeks.

Paolo Tonucci: We have applied for a license which will allow for the conversion of for us to provide the conversion between crypto and fiat currencies. You know, we hope that that will come through in the next few weeks. We have got the infrastructure in place, and we've partnered with, you know, very established players to establish the infrastructure both of for execution as well as for clearing. That sort of extends to tokenization, where we're working with some of our most sort of progressive clients to ensure that the sort of all of the rails for tokenization, whether that's for sort of post-trade or whether that's for the sort of 24/7 activities, supporting 24/7 activities.

Speaker #5: We have got the infrastructure in place and we've partnered with various established players to establish the infrastructure both for execution as well as for clearing.

Speaker #5: And that sort of extends to tokenization where we're working with some of our most sort of progressive clients to ensure that the sort of all of the rails for tokenization, whether that's for sort of post-trade or whether that's for the sort of 24/7 activities supporting 24/7 activities.

Paolo Tonucci: I think we've moved a long way, and I think, you know, my sense is relative to where the rest of our competitor group are, we're probably, you know, towards the front, if not at the very sort of front of that queue.

Speaker #5: So I think we've moved a long way and I think my sense is relative to where the rest of our competitor group are, we're probably towards the front, if not at the very sort of front of that queue.

William Katz: Thank you very much.

Speaker #3: Thank you very much.

Ian Lowitt: Thanks, Bill.

Speaker #4: Thanks, Phil.

Operator: Your next question comes from the line of Benjamin Budish with Barclays. Your line is open. Please go ahead.

Speaker #6: Your next question comes from the line of Benjamin Buddish with Barclays. Your line is open. Please go ahead.

Benjamin Budish: Hi, good morning, thank you for taking the question. Maybe first, Ian, I was wondering if you could unpack a little bit more the comment you made earlier in the Q&A around, you know, this sort of not being a Goldilocks volatility kind of environment. Maybe talk about, like, what do you typically see when there are volatility spikes in terms of either exchanges, collateral requirements or how customers respond. I gather, or I think your comments maybe were referring to mid-February, but obviously things have changed a bit more in the last couple of days. Just curious how to think about. You know, we can see your collateral balances daily through your website, but, you know, things have changed more, you know, the last couple of days.

Speaker #7: Hey, good morning, and thank you for taking the question. Maybe first, Ian, I was wondering if you could unpack a little bit more of the comment you made earlier in the Q&A around this sort of not being a 'Goldilocks' volatility kind of environment.

Speaker #7: Maybe talk about what do you typically see when there are volatility spikes in terms of either exchanges, collateral requirements, or how customers respond? And I gather, or I think your comments maybe were referring to mid-February, but obviously things have changed a bit more in the last couple of days.

Speaker #7: So just curious how to think about we can see your collateral balances daily through your website, but things have changed in more the last couple of days.

Benjamin Budish: If you could unpack that a little bit, you know, that would be helpful. Thank you.

Speaker #7: So if you could unpack that a little bit that would be helpful. Thank you.

Ian Lowitt: Sure, Ben. Now look, I think it's a really good question. Look, at times of very high sort of volatility, you know, a couple of things are sort of happening. One is, you know, either we're increasing margin multipliers or the exchanges are often, you know, increasing their margins, and you certainly saw that in January. You know, people are having to put, you know, sort of more margin up against sort of the existing positions. You know, the other thing that, you know, sort of plays out is, in terms of their own existing risk models, they have limits and, you know, for what kind of positions they can maintain relative to, you know, the risk that, you know, they've been authorized to hold.

Speaker #4: Sure, Ben. I mean, look, I think it's a really good question. So look, at times of very high sort of volatility, a couple of things are sort of happening.

Speaker #4: So one is either we're increasing margin multipliers or the exchanges are often increasing their margins. And you certainly saw that in January. So people are having to put sort of more margin up against sort of the existing positions.

Speaker #4: The other thing that sort of plays out is, in terms of their own existing risk models, they have limits on what kind of positions they can maintain relative to the risk that they've been authorized to hold.

Ian Lowitt: They tend to reduce the positions in order to remain within their risk limits. The other thing that is an obvious consequence of extremely high levels of volatility is it impacts how people choose to hedge and how they think about hedging in the sense that they have to decide what their entry points are. They have to decide how long they're willing to hedge for. Just as we saw in April of last year with Liberation Day, when people are unsure where what's driving pricing and where it's gonna settle, their reaction is often to shorten the duration of their hedges or actually just be unsure about when to begin to hedge. All...

Speaker #4: They tend to reduce the positions in order to remain within sort of their risk limits. I mean, the other thing that is just sort of an obvious consequence of extremely high levels of volatility is it impacts how people choose to hedge and how they think about hedging.

Speaker #4: In the sense that they have to decide what their entry points are. They have to decide how long they're willing to hedge for. And just as we saw in April of last year with Liberation Day, when people are sort of unsure what's driving pricing and where it's going to settle, their reaction is often to shorten the duration of their hedges or actually just be unsure about when to begin to hedge.

Ian Lowitt: You know, they're also sort of, you know, you know, got to, you know, manage their liquidity carefully in addition to, you know, managing, you know, their risk carefully. All of those things, you know, play through where you have, you know, those volatility spikes. Just to put that in perspective, I'm sure you sort of appreciate that, but, you know, some of the moves in some of these commodity contracts were, you know, 1 in 35 year events that were sort of playing through at the, you know, end of January. I don't know, you know, in terms of, you know, over the last few days and where this thing is gonna go, whether we're gonna see volatility of, you know, that, you know, that magnitude.

Speaker #4: So there are also sort of they've got to manage their liquidity, carefully in addition to managing their risk carefully. So all of those things play through where you have those volatility spikes.

Speaker #4: And just to put that in perspective, I'm sure you sort of appreciate that, but some of the moves in some of these commodity contracts were one-in-35-year events that were sort of playing through at the end of January.

Speaker #4: I don't know, in terms of over the last few days and where this thing is going to go, whether we're going to see volatility of that magnitude.

Ian Lowitt: Certainly in, you know, natural gas prices, we're seeing price moves that are not dissimilar to what we saw with the Ukraine invasion. You know, that's really a bit more color in, you know, what's actually involved when you're operating in a world of extremely high volatility.

Speaker #4: But certainly in natural gas prices, we're seeing price moves that are not dissimilar to what we saw with the Ukraine invasion. So that's really a bit more color in what's actually involved when you're operating in a world of extremely high volatility.

Benjamin Budish: All right. Understood. That's very helpful. Maybe just to follow up a separate topic. You know, you mentioned briefly prediction markets in your opening remarks. Just curious, you know, from your seat, how do you see this evolving from an institutional perspective? It seems like from all the data that's trackable, most of this is happening, you know, in sports and in the retail channel. There's a, you know, a big question mark around, you know, how and when this might evolve into something broader. Just curious, you know, what does institutional interest look like? You know, where in prediction markets are you guys, you know, looking to participate? You know, how do you think this plays out over the next year? Thank you.

Speaker #7: All right. Understood. That's very helpful. Maybe just to follow up, a separate topic. You mentioned briefly prediction markets in your opening remarks. And just curious, from your seat, how do you see this evolving from an institutional perspective?

Speaker #7: It seems like, from all the data that's trackable, most of this is happening in sports and in the retail channel, but there's a big question mark.

Speaker #7: Around how and when this might evolve into something broader. So just curious, what does institutional interest look like? Where in prediction markets are you guys looking to participate?

Speaker #7: How do you think this plays out over the next year? Thank you.

Ian Lowitt: Yeah, I mean, you know, the bit that's sort of interesting to us is if this, you know, results in contracts that are really listed, you know, on the sort of principal exchanges. You know, whether, you know, CME or ICE or, you know, Cboe end up, you know, listing a series of contracts which aren't sort of sports related specifically, but are sort of financial instrument related, which I think, you know, is certainly, you know, a direction that people are looking at. We also believe that, you know, there's interest from retail aggregators for this particular product.

Speaker #4: Yeah, I mean, the best sort of interesting to us is if this results in contracts that are really listed on the sort of principal exchanges.

Speaker #4: So, where the CME or ICE or CIBO end up listing a series of contracts which aren't, sort of, sports-related specifically, but are, sort of, financial instrument-related.

Speaker #4: Which I think is certainly a direction that people are looking at. And we also believe that there's interest from retail aggregators for this particular product.

Ian Lowitt: I do believe that, you know, we will see these products, you know, listed on exchanges so that you deal with sort of the credit risk associated with, you know, some of these other venues. You will, I think, see experimentation with financial instruments and sort of strategies expressed as event contracts, you know, in the sort of coming quarters. Maybe it'll take a little longer than that, but I think that's my expectation. I think, you know, there's a variety of people are interested in experimenting with it. You know, at some level, you could imagine these contracts actually being quite intuitive ways for retail investors to express, you know, certain investment theses they have. I can see that, you know, actually taking off.

Speaker #4: So I do believe that we will see these products listed on exchanges, so that you deal with sort of the credit risk associated with some of these other venues.

Speaker #4: And you will, I think, see experimentation with financial instruments and sort of strategies expressed as event contracts in the coming quarters. Maybe it'll take a little longer than that, but I think that's my expectation.

Speaker #4: And I think there's a variety of people who are interested in experimenting with it. And at some level, you could imagine these contracts actually being quite intuitive ways for retail investors to express certain investment theses they have.

Speaker #4: And so I can see that actually taking off. But you don't want to deal with the sort of credit risk associated with some of these sort of venues.

Ian Lowitt: You know, you don't wanna deal with the sort of credit risk associated with some of these, you know, sort of venues. I think that the exchanges will naturally evolve into that space.

Speaker #4: And I think that the exchanges will naturally evolve into that space.

Benjamin Budish: Okay, great. Thank you.

Speaker #7: Okay. Great. Thank you.

Ian Lowitt: Thanks, Ben.

Speaker #4: Thanks, Ben.

Operator: Your next question comes from the line of Patrick Moley with Piper Sandler. Your line is open. You can go ahead.

Speaker #1: Your next question comes from the line of Patrick Mollie with Piper Sandler. Your line is open. Please go ahead.

Patrick Moley: Yes, good morning. Thanks for taking the question. I know the Middle East has been an area of focus for you, and it's a place where you've found success, especially with the Aarna acquisition. Just curious, you know, with all the geopolitical turmoil going on, if we do see an extended conflict in the Middle East, how that impacts Marex's business and just the overall strategy there.

Speaker #8: Yes, good morning. Thanks for taking the question. I know the Middle East has been an area of focus for you, and it's a place where you've found success, especially with the ARNA acquisition.

Speaker #8: So just curious, with all the geopolitical turmoil going on, if we do see an extended conflict in the Middle East, how would that impact Marex's business and just the overall strategy there?

Ian Lowitt: Well, look, I think that you know, the answer clearly depends on, you know, what actually happens with regard to this conflict, whether it, you know, sort of resolves relatively quickly or not. I mean, certainly, you know, we see that opportunity as, you know, attractive, sustained. You know, certainly we're hopeful that there's nothing that sort of undermines it, and there's not knowledge at the moment that it might undermine it. There's obviously a lot that we don't know. I don't know what you'd add, Philip.

Speaker #4: Well, look, I think that we the answer clearly depends on what actually happens with regard to this conflict, whether it's sort of resolves relatively quickly or not.

Speaker #4: I mean, certainly, we see that opportunity as attractive, sustained, and certainly we're hopeful that there's nothing that sort of undermines it, and there's not knowledge at the moment that it might undermine it.

Speaker #4: But there's obviously a lot that we don't know. I don't know what you'd add, Tyler.

Paolo Tonucci: Yeah, I mean, to. It's difficult to, you know, have certainty about, you know, the sort of longer term impacts. So far, you know, we've got a very, you know, broad-based business in both Dubai and Abu Dhabi. You know, volumes of volumes have been sort of consistently increasing. The sort of breadth of product offering has been consistently increasing. It doesn't feel as though, you know, that trend is gonna change, but we may have obviously some disruption in the short term, just as, you know, we all watch what's transpiring.

Speaker #8: Yeah. I mean, it's a difficult to have certainty about the sort of longer-term impacts. But so far, I mean, we've got a very broad-based business in both Dubai and Abu Dhabi.

Speaker #8: Volumes have been sort of consistently increasing; the breadth of product offering has been consistently increasing. It doesn't feel as though that trend is going to change, but we may have, obviously, some disruption in the short term, just as we all watch what's transpiring.

Patrick Moley: Okay. Thanks for that. You mentioned in your prepared remarks the pipeline of opportunities that you're looking at from an M&A perspective. Could you just update us on maybe what's in focus right now in terms of both asset classes and geographies? Any color there would be great. Thank you.

Speaker #7: Okay, thanks for that. And then you mentioned in your prepared remarks the pipeline of opportunities that you're looking at from an M&A perspective. Could you just update us on maybe what's in focus right now in terms of both asset classes and geographies?

Speaker #7: Any comment there would be great. Thank you.

Paolo Tonucci: Yeah. Yeah. Absolutely, Patrick. I mean, we have, you know, continued, I think, the sort of pace of acquisitions that, you know, we've seen for the last couple of years. You know, we've had a couple of announced transactions this year. We most recently announced that we will be purchasing Webb Traders, which is an option market-making group. You know, somewhat sort of away from the clearing and execution, or agency and execution areas where we've had, you know, sort of traditionally more focused on acquisitions. You know, Winterfloods also is a market-making business. It sort of shows that there are opportunities across all of the different sort of service lines. I think, you know, we've...

Speaker #4: Yeah, yeah, absolutely, Patrick. I mean, we have continued, I think, the sort of pace of acquisitions that we've seen for the last couple of years.

Speaker #4: And we've had a couple of announced transactions this year. So, we most recently announced that we will be purchasing Web Traders, which is an options market-making group.

Speaker #4: So, somewhat sort of away from the clearing and execution, or agency and execution areas, where we've had traditionally more focus on acquisitions.

Speaker #4: Winter floods also is a market-making business. So it sort of shows that there are opportunities across all of the different sort of service lines.

Speaker #4: I think we've remained of a view that we're buying the capabilities and not just the revenues. And the capabilities include both the, sort of, geographic coverage, as well as, sort of, product capabilities.

Paolo Tonucci: We remain of a view that we're buying the capabilities and not just the revenues. You know, the capabilities and, you know, include both the sort of geographic coverage and as well as the product capabilities. I think that, you know, there are opportunities across each of the service lines, but I think that you will see both clearing and agency and execution businesses being added in the next couple of quarters.

Speaker #4: And I think that there are opportunities across each of the service lines. But I think that you will see both clearing and agency and execution businesses being added in the next couple of quarters.

Paolo Tonucci: From a geographic perspective, I think we, you know, whilst it's really hard to predict exactly when these opportunities will arise, we are still focused on both, extension, in Asia, where we have probably a slightly subscale, a slightly subscale business, certainly on the sort of capital markets side, and in Latin America, where, you know, we've, we bought Agrinvest last year. We're really pleased with how that's going. That's obviously an agricultural-focused business. But we're seeing opportunities on the sort of financial side as well. The geographic focus remains the same. It's just sort of... It's hard to say exactly when those will sort of come to fruition. We are, we're seeing good opportunities there.

Speaker #4: And from a geographic perspective, I think whilst it's really hard to know to predict exactly when these opportunities will arise, we are still focused on both extension in Asia where we have probably a slightly sub-scale some slightly sub-scale business, certainly on the sort of capital market side, and in Latin America where we've bought Agri Invest last year.

Speaker #4: We're really pleased with how that's going. That's obviously an agricultural-focused business, but we're seeing opportunities on the financial side as well. So the geographic focus remains the same.

Speaker #4: It's just sort of—it's hard to say exactly when those will sort of come to fruition. But we're seeing good opportunities there.

Ian Lowitt: I think I... The thing I'd just sort of add to that is, you know, we're always just looking to sort of fill in holes where, you know, within a geography, we don't sort of have the product. If we think we could build that organically, then, you know, that's typically what we would choose to do. In many cases, and particularly as you try to expand geographically, you know, that's just very hard to do organically. Those are the places where we would, you know, typically focus around, you know, acquisitions.

Speaker #8: And I think the thing I'd just sort of add to that is we're always just looking to sort of fill in holes where, within a geography, we don't sort of have the product.

Speaker #8: And if we think we could build that organically, then that's typically what we would choose to do. But in many cases, particularly as you try to expand geographically, that's just very hard to do organically. In those other places, we would typically focus around acquisitions.

Patrick Moley: Very good. Thank you. Look forward to seeing you at the Investor Day. Thanks.

Speaker #7: Very good. Thank you, and I look forward to seeing you at the Investor Day. Thanks.

Ian Lowitt: Thanks, Patrick.

Paolo Tonucci: Thanks, Patrick.

Speaker #4: Thanks, Patrick.

Speaker #8: Thanks, Patrick.

Operator: Your next question comes from the line of Alexander Blostein with Goldman Sachs. Your line is open. Please go ahead.

Speaker #1: Your next question comes from the line of Alexander Blowstein with Goldman Sachs. Your line is open. Please go ahead.

[Analyst] (Goldman Sachs): Hey, this is Anthony on for Alex. I wanted to hit on Prime Services, which, you know, continues to see solid growth. How much of this growth has been a function of maybe existing clients doing more with you versus kind of onboarding new accounts? What does the pipeline of new clients look like today?

Speaker #9: Hey, this is Anthony Allen for Alex. I wanted to hit on Prime Services, which continues to see solid growth. How much of this growth has been a function of maybe existing clients doing more with you versus kind of onboarding new accounts?

Speaker #9: And what does the pipeline of new clients look like today?

Paolo Tonucci: Hi, Anthony. Thank you for the question. You know, I'm gonna sort of split the answer into the sort of longer term trend and into what we saw in the Q4. In terms of our annual accumulation of new clients, we are adding about 30%. We have a growth rate of about 30% a year on a gross basis, and then we lose about 5% of our sort of clients because, you know, they sort of cease to be active or they move into, you know, move into sort of different structures. The long-term trend is around that type of growth rate. You know, in the short term, what...

Speaker #4: Hi, Anthony. Thank you for the thank you for the question. The I'm going to sort of split the answer into this longer-term trend and into what we saw in the fourth quarter.

Speaker #4: So, in terms of our annual accumulation of new clients, we are adding about 30%. We have a growth rate of about 30% a year on a gross basis.

Speaker #4: And then we lose about 5% of our sort of clients because they sort of cease to be active, or they move into, move into sort of different structures.

Speaker #4: So the long-term trend is around that type of growth rate. In the short term, where you see a bit more volatility is with existing clients, which have relationships and are unable to sort of to ramp up.

Paolo Tonucci: where you see a bit more volatility is with existing clients, which, you know, have relationships and are unable to sort of ramp up. I would say in Q4, there was more increase in activity from existing clients or more impact from existing clients increasing activity than there was from new clients. The trend over the longer term, and I think you'll see this over the course of both 2025 and 2026, is that, you know, we're adding clients and we're adding them at about a 30% annualized growth rate.

Speaker #4: And so I would say, sort of in the fourth quarter, there was more increase in activity from existing clients, or more impact from existing clients increasing activity, than there was from new clients.

Speaker #4: But the trend over the longer term, and I think you'll see this over the course of both 25 and 26, is that we're adding clients and we're adding them at about a 30% annualized growth rate.

[Analyst] (Goldman Sachs): Thanks. That's helpful. Maybe just to follow up on kind of the M&A you either completed or announced in 2025, could you talk about the aggregate kind of annual impact on run rate earnings from these transactions, and where you think they might scale to over the next few years as you realize revenue and expense synergies?

Speaker #9: Thanks. That's helpful. And maybe just to follow up on kind of the M&A you either completed or announced in 2025, could you talk about the aggregate kind of annual impact on run rate earnings from these transactions?

Speaker #9: And where do you think they might scale to over the next few years as you realize revenue and expense synergies?

Rob Irvin: Yeah, I mean, I think the majority of the earnings increase in this year was actually, you know, organic now. That did include the impact, as we've talked about very extensively of the Prime business and that comes through, you know, on the organic side, because we've owned that for some time, and it's really been about our investment in the sort of products and capabilities. The platform, it's obviously very important. It's the sort of basis upon which we have been able to develop that business. I expect the split between organic and inorganic will be sort of somewhere in the range that we've had before, 60/40. Yeah. This year, Paolo, the growth was sort of like 75% organic and 25% inorganic.

Speaker #8: Yeah. I mean, I think the majority of the earnings increase in this year was actually organic. But that did include the impact as we've talked about very extensively of the prime business and that comes through on the organic side because we've owned that for some time and it's really been about our investment in the sort of products and capabilities.

Speaker #8: But the platform, it's obviously very important. It's the sort of basis upon which we have been able to develop that business. I expect the split between organic and inorganic will be somewhere in the range that we've had before, the 60/40.

Speaker #4: Yeah, so this year, Paolo, the growth was sort of like 75% organic and 25% inorganic.

Patrick Moley: Thank you. That's helpful.

Speaker #9: Thank you. That's helpful.

Operator: There are no further questions at this time. I will now turn the call back to Ian Lowitt for closing remarks.

Speaker #1: There are no further questions at this time. I will now turn the call back to Ian Lowett for closing remarks.

Rob Irvin: Yeah. Well, thanks everybody for joining us. I mean, obviously, you know, very pleased with sort of the full year, you know, numbers that we were able to deliver. You know, really pleased that, you know, it was another record, really pleased that, you know, we had a record quarter in the Q4. As I've indicated, you know, we really are, you know, quite excited about our sort of prospects over the course of the year and our ability, you know, to continue to grow in 2026 and beyond. Thank you for joining us, and hopefully we'll see as many of you as possible at our investor day.

Speaker #8: Thanks, everybody, for joining us. I mean, obviously, very pleased with sort of the full-year numbers that we were able to deliver. Really pleased that it was another record.

Speaker #8: Really pleased that we had a record quarter in the fourth quarter. And as I've indicated, we're really quite excited about our sort of prospects over the course of the year and our ability to continue to grow in 2026 and beyond.

Speaker #8: So thank you for joining us. And hopefully, we'll see as many of you as possible at our Investor Day.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.