CMC Markets’ HY2026: solid half, fatter dividend, and a guidance upgrade
CMC Markets has posted a steady first half for the six months to 30 September 2025, kept margins broadly intact despite a remediation charge in Australia, and raised full-year revenue guidance. The headline: net operating income is up, earnings are resilient, and the interim dividend has leapt.
Quick refresher: net operating income (NOI) is total revenue after commissions and levies. It is the cleanest top-line number for this business.
Key numbers you need to see
| Metric | HY2026 | HY2025 | Change |
|---|---|---|---|
| Net operating income | £186.2 million | £177.4 million | +5% |
| EBITDA | £57.1 million | £60.3 million | -5% |
| Profit before tax | £49.3 million | £49.6 million | -1% |
| PBT margin | 26.5% | 27.9% | -1.4 ppts |
| Basic EPS | 13.3 p | 12.8 p | +4% |
| Interim dividend | 5.5 p | 3.1 p | +77% |
| Total operating expenses | £136.5 million | £123.9 million | +10% |
Dividend detail: 5.5 p per share, in line with the 50% payout policy, payable on 8 January 2026 to shareholders on the register on 28 November 2025.
What drove the half: trading steady, investing accelerating
- Net trading revenue rose 5% to £138.1 million, helped by bouts of commodity and index volatility and the revised hedging strategy.
- Net investing revenue jumped 32% to £26.3 million, led by Australia’s record half and growing UK traction.
- Interest income fell 15% to £20.0 million, mainly because client interest paid out increased alongside surging Cash ISA balances. On a gross basis, treasury yields were higher year-on-year.
Geographically, NOI came from three engines: UK £42.4 million, Australia £59.0 million, and Other countries £84.7 million. That spread matters when one market slows.
Australia keeps delivering
CMC’s Australian stockbroking had a record half: net operating income of A$65.9 million, up 34% year-on-year, supported by assets under administration of about A$91 billion, up 14%. The business now eclipses Australian CFDs for income, accounts and AuA.
There was a sting in the tail: a further £5.2 million provision tied to an industry-wide margin netting remediation in Australia, taking the total to £9.5 million. Management says the remediation is now concluded. Without it, costs looked well controlled.
UK Invest building foundations
In the UK, Cash ISAs have pulled in over £300 million of assets. Management sees this as a front door into general investment accounts, stocks and shares ISAs and SIPPs, with a Junior ISA to come in H2.
Costs, capital and cash: robust where it counts
- Operating expenses were £136.5 million, up 10%, primarily from the Australian remediation. Net staff costs fell 3% to £57.1 million due to tighter variable pay accruals.
- Unencumbered liquid assets stood at £314.0 million, up from £293.7 million at March. Cash and cash equivalents were £222.4 million.
- CET1 capital after regulatory adjustments was £348.5 million; the Own Funds Requirement ratio was 221% – comfortably above minimums.
Balance sheet takeaway: plenty of liquidity and capital to support growth and regulatory needs, even with dual-running costs as operations transition to lower-cost jurisdictions.
Strategy check: Westpac deal, APIs and the “Super App”
- Westpac partnership agreed – CMC’s largest institutional deal yet. Management expects a material expansion of the Australian customer base and around a 45% lift in domestic trading volumes after launch in about 12 months. This cements CMC as Australia’s second-largest stockbroker.
- API distribution is flying. Hundreds of thousands of new trading accounts were opened over the last year, about 70% from European countries where CMC has no physical presence. One partner’s turnover rose over 1,000% year-on-year via API flows.
- Further partnerships are at advanced stages with a major international bank and UK retailer Currys. Not disclosed beyond that, but it underscores the B2B pipeline.
- A new multi-asset platform goes live in the UK in December, with other regions to follow. Then comes a “Super App” that brings together traditional finance and tokenised products in phases, including payments and banking products in phase three.
The third vertical: Web3 moves from talk to tests
CMC completed a live test of a blockchain-based tokenised share transfer within UK regulations and has set up an up to €300 million Commercial Paper Programme to support funding flexibility as it scales. Fitch assigned investment-grade ratings of BBB- (long-term) and F3 (short-term). Management expects the funding cost impact to be negligible.
Guidance upgrade: why it matters
After a strong start to H2 and rapid growth in the neobank API business, CMC now expects FY2026 net operating income to be approximately 10% ahead of company-compiled consensus of £353.9 million. Operating expenses for FY2026 are guided to be marginally ahead of consensus of £231.4 million, largely due to the Australian remediation. In short: revenue momentum is outpacing cost creep.
For investors, a revenue-led upgrade with margin discipline is the right shape. If dual-running and outsourcing savings begin to land over the next 12 to 18 months, operating leverage should improve into FY2027.
Risks and watchouts
- Legal – an Australian class action related to CFDs and binaries remains ongoing. Potential financial impact is not practicable to estimate at this stage.
- Regulatory and cyber – the firm rates cyber risk as amber despite strengthened controls and DORA implementation. Multi-jurisdiction regulation remains a constant load.
- Interest income mix – client interest outflows tied to Cash ISAs weigh on reported interest income, even as underlying treasury yields improve. Not bad in itself, but it masks the optics.
My take: steady delivery now, optionality building
This is a tidy set of numbers. NOI up 5% to £186.2 million with a 26.5% PBT margin is respectable given the remediation drag. The 77% hike in the interim dividend to 5.5 p says the board is confident in cash generation.
The real story is strategic: the Westpac deal, the API engine, and the upcoming multi-asset platform and Super App. If the Westpac integration delivers the indicated circa 45% domestic volume uplift, Australia’s investing arm could step-change again. Meanwhile, the blockchain and funding moves show intent without betting the farm.
Negatives? Costs are elevated for now, interest income optics are softer, and the Australian class action sits in the background. But liquidity, capital and pipeline strength offset those concerns in my view.
Net-net, this looks like a company entering its seasonally stronger half with multiple growth levers and improving operating leverage on the horizon.
Further reading
An analyst and investor presentation is available from 9.00am on 20 November: CMC Markets – results, reports and presentations.
